Iowa Code 554.9610 – Disposition of collateral after default
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Terms Used In Iowa Code 554.9610
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- property: includes personal and real property. See Iowa Code 4.1
554.9610 Disposition of collateral after default.
1. Disposition after default. After default, a secured party may sell, lease, license, or
otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
2. Commercially reasonable disposition. Every aspect of a disposition of collateral,
including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
3. Purchase by secured party. A secured party may purchase collateral:
a. at a public disposition; or
b. at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
4. Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
5. Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection 4:
a. in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
b. by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
6. Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection 5 if it indicates “”There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition”” or uses words of similar import.
2000 Acts, ch 1149, §108, 187
Referred to in §554.9406, 554.9408, 554.9602, 554.9609, 554.9611, 554.9615, 554.9616, 554.9618, 554.9620, 554.9623
1. Disposition after default. After default, a secured party may sell, lease, license, or
otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
2. Commercially reasonable disposition. Every aspect of a disposition of collateral,
including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
3. Purchase by secured party. A secured party may purchase collateral:
a. at a public disposition; or
b. at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
4. Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
5. Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection 4:
a. in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
b. by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
6. Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection 5 if it indicates “”There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition”” or uses words of similar import.
2000 Acts, ch 1149, §108, 187
Referred to in §554.9406, 554.9408, 554.9602, 554.9609, 554.9611, 554.9615, 554.9616, 554.9618, 554.9620, 554.9623