The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.
Iowa Code § 554.9402
Secured party not obligated on contract of debtor or in tort
Known as the Uniform Commercial Code
The act spans §§ 554–554 (631 sections).
Applied in 1 court decision — leading case United States v. Lincoln Savings Bank (In Re Commercial Millwright Service Corp.) (2000)
Most recently applied in United States v. Lincoln Savings Bank (In Re Commercial Millwright Service Corp.) (February 2000)
2000 Acts, ch 1149, §64, 185, 187
Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.