Iowa Code § 554.9605
Unknown debtor or secondary obligor
Redline — January 1, 2023 → current.View current text →
Current — January 1, 2026
As of January 1, 2023
1. Duties to unknown persons — general rule. Except as provided in subsection 2, a secured party does not owe a duty based on its status as secured party:
1. In general: no duty owed by a secured party. Except as provided in subsection 2, a secured party does not owe a duty based on its status as secured party:
a. to a person that is a debtor or obligor, unless the secured party knows:
a. to a person that is a debtor or obligor, unless the secured party knows:
(1) that the person is a debtor or obligor;
(1) that the person is a debtor or obligor;
(2) the identity of the person; and
(2) the identity of the person; and
(3) how to communicate with the person; or
(3) how to communicate with the person; or
b. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
b. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(1) that the person is a debtor; and
(1) that the person is a debtor; and
(2) the identity of the person.
(2) the identity of the person.
2. When secured party owes duty to debtor notwithstanding subsection 1. A secured party owes a duty based on its status as a secured party to a person that is a debtor if, at the time the secured party obtains control of a controllable account, controllable electronic record, or controllable payment intangible, the secured party has knowledge that the nature of the collateral or a system in which the collateral is recorded would prevent the secured party from acquiring the knowledge specified in subsection 1, paragraph “a”, subparagraph (1), (2), or (3).
2. Exception: secured party owes a duty to debtor or obligor. A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible, or at the time the security interest attaches to the collateral, whichever is later:
Liability limitations; see §554.9628
Section amended
a. the person is a debtor or obligor; and
b. the secured party knows that the information in subsection 1, paragraph “a”, subparagraph (1), (2), or (3) relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.
Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.