Iowa Code 554.9209 – Duties of secured party if account debtor has been notified of assignment
Current as of: 2023 | Check for updates
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1.
Applicability of section.
Except as otherwise provided in subsection 3, this section applies if:
a. there is no outstanding secured obligation; and
b. the secured party is not committed to make advances, incur obligations, or otherwise give value.
Terms Used In Iowa Code 554.9209
- 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
- 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.
- Payment intangible: means the same as defined in section 554. See Iowa Code 554E.1
- Record: means the same as defined in section 554D. See Iowa Code 554E.1
- Sale: means any sale, offer for sale, or attempt to sell or lease any land, to the public in this state, for cash or on credit. See Iowa Code 543C.1
2.
Duties of secured party after receiving demand from debtor.
Within ten days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under section 554.9406, subsection 1, an authenticated record that releases the account debtor from any further obligation to the secured party.
3.
Inapplicability to sales.
This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.