Iowa Code 554.9304 – Law governing perfection and priority of security interests in deposit accounts
Current as of: 2023 | Check for updates
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1.
Law of bank’s jurisdiction governs.
The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank.
Terms Used In Iowa Code 554.9304
- Account: means the same as defined in section 554. See Iowa Code 554E.1
- Deposit account: means the same as defined in section 554. See Iowa Code 554E.1
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- 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.
2.
Bank’s jurisdiction.
The following rules determine a bank’s jurisdiction for purposes of this part:
a. If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank’s jurisdiction for purposes of this part, this Article, or this chapter, that jurisdiction is the bank’s jurisdiction.
b. If paragraph “a” does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
c. If neither paragraph “a” nor paragraph “b” applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
d. If none of the preceding paragraphs applies, the bank’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer’s account is located.
e. If none of the preceding paragraphs applies, the bank’s jurisdiction is the jurisdiction in which the chief executive office of the bank is located.