Iowa Code § 554.9611

Current through bills signed by governor as of 5/17/2024

Section 554.9611 - [Effective 7/1/2024] Notification before disposition of collateral

1.Notification date. In this section, "notification date" means the earlier of the dates on which:

a. a secured party sends to the debtor and any secondary obligor a signed notification of disposition; or

b. the debtor and any secondary obligor waive the right to notification.

2.Notification of disposition required. Except as otherwise provided in subsection 4, a secured party that disposes of collateral under section 554.9610 shall send to the persons specified in subsection 3 a reasonable signed notification of disposition.

3.Persons to be notified. To comply with subsection 2, the secured party shall send a signed notification of disposition to:

a. the debtor;

b. any secondary obligor; and

c. if the collateral is other than consumer goods:

(1) any other person from which the secured party has received, before the notification date, a signed notification of a claim of an interest in the collateral;

(2) any other secured party or lienholder that, ten days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:

(a) identified the collateral;

(b) was indexed under the debtor's name as of that date; and

(c) was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and

(3) any other secured party that, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in section 554.9311, subsection 1.

4.Subsection 2 inapplicable - perishable collateral - recognized market. Subsection 2 does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.

5.Compliance with subsection 3, paragraph "c", subparagraph (2). A secured party complies with the requirement for notification prescribed by subsection 3, paragraph "c", subparagraph (2), if:

a. not later than twenty days or earlier than thirty days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection 3, paragraph "c", subparagraph (2); and

b. before the notification date, the secured party:

(1) did not receive a response to the request for information; or

(2) received a response to the request for information and sent a signed notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.

Iowa Code § 554.9611

Amended by 2024 Iowa SF 2389,s 89, eff. 7/1/2024.

Amended by 2024 Iowa SF 2389,s 88, eff. 7/1/2024.

Amended by 2024 Iowa SF 2389,s 87, eff. 7/1/2024.

2000 Acts, ch 1149, §109, 187

Referred to in §554.9602, 554.9624

This section is set out more than once due to postponed, multiple, or conflicting amendments.