Iowa Code 554.9207 – Rights and duties of secured party having possession or control of collateral
Except as otherwise provided in subsection 4, a secured party shall use reasonable care in the custody and preservation of collateral in the secured party’s possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
Terms Used In Iowa Code 554.9207
- Account: means the same as defined in section 554. See Iowa Code 554E.1
- Chattel paper: means the same as defined in section 554. See Iowa Code 554E.1
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Money: means the same as defined in section 554. See Iowa Code 554E.1
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
Except as otherwise provided in subsection 4, if a secured party has possession of collateral:
Except as otherwise provided in subsection 4, a secured party having possession of collateral or control of collateral under section 554.7106, 554.9104, 554.9105, 554.9105A, 554.9106, 554.9107, or 554.9107A:
If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor: