Iowa Code 554.9208 – Additional duties of secured party having control of collateral
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Terms Used In Iowa Code 554.9208
- Contract: A legal written agreement that becomes binding when signed.
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
554.9208 Additional duties of secured party having control of collateral.
1. Applicability of section. This section applies to cases in which there is no outstanding
secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
2. Duties of secured party after receiving demand from debtor. Within ten days after receiving an authenticated demand by the debtor:
a. a secured party having control of a deposit account under § 554.9104, subsection
1, paragraph “”b””, shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
b. a secured party having control of a deposit account under § 554.9104, subsection
1, paragraph “”c””, shall:
(1) pay the debtor the balance on deposit in the deposit account; or
(2) transfer the balance on deposit into a deposit account in the debtor’s name;
c. a secured party, other than a buyer, having control of electronic chattel paper under § 554.9105 shall:
(1) communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;
(2) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(3) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
d. a secured party having control of investment property under section 554.8106, subsection 4, paragraph “”b””, or § 554.9106, subsection 2, shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
e. a secured party having control of a letter-of-credit right under § 554.9107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;
f. a secured party having control of an electronic document shall:
(1) give control of the electronic document to the debtor or its designated custodian;
(2) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(3) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
g. a secured party having control under § 554.9105A of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and
h. a secured party having control under § 554.14105 of a controllable electronic record shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.
2000 Acts, ch 1149, §18, 185, 187; 2007 Acts, ch 30, §45, 46, 68; 2022 Acts, ch 1117, §21, 22;
2023 Acts, ch 64, §93
Referred to in §554.9625
Subsection 2, paragraph f, subparagraph (3) amended
1. Applicability of section. This section applies to cases in which there is no outstanding
secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
2. Duties of secured party after receiving demand from debtor. Within ten days after receiving an authenticated demand by the debtor:
a. a secured party having control of a deposit account under § 554.9104, subsection
1, paragraph “”b””, shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
b. a secured party having control of a deposit account under § 554.9104, subsection
1, paragraph “”c””, shall:
(1) pay the debtor the balance on deposit in the deposit account; or
(2) transfer the balance on deposit into a deposit account in the debtor’s name;
c. a secured party, other than a buyer, having control of electronic chattel paper under § 554.9105 shall:
(1) communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;
(2) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(3) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
d. a secured party having control of investment property under section 554.8106, subsection 4, paragraph “”b””, or § 554.9106, subsection 2, shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
e. a secured party having control of a letter-of-credit right under § 554.9107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;
f. a secured party having control of an electronic document shall:
(1) give control of the electronic document to the debtor or its designated custodian;
(2) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(3) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
g. a secured party having control under § 554.9105A of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and
h. a secured party having control under § 554.14105 of a controllable electronic record shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.
2000 Acts, ch 1149, §18, 185, 187; 2007 Acts, ch 30, §45, 46, 68; 2022 Acts, ch 1117, §21, 22;
2023 Acts, ch 64, §93
Referred to in §554.9625
Subsection 2, paragraph f, subparagraph (3) amended