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Iowa Code § 554.9622

Effect of acceptance of collateral

Known as the Uniform Commercial Code

The act spans §§ 554–554 (631 sections).

2000 Acts, ch 1149, §120, 187

1. Effect of acceptance. A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures:

a. discharges the obligation to the extent consented to by the debtor;

b. transfers to the secured party all of a debtor’s rights in the collateral;

c. discharges the security interest or agricultural lien that is the subject of the debtor’s consent and any subordinate security interest or other subordinate lien; and

d. terminates any other subordinate interest.

2. Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this Article.

Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.