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554.9203 Attachment and enforceability of security interest---proceeds, formal requisites.

1. Subject to the provisions of section 554.4210 on the security interest of a collecting bank, section 554.8321 on security interests in securities and section 554.9113 on a security interest arising under the Article on Sales, a security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless:

a. the collateral is in the possession of the secured party pursuant to agreement, or the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops growing or to be grown or timber to be cut, a description of the land concerned;

b. value has been given; and

c. the debtor has rights in the collateral.

2. A security interest attaches when it becomes enforceable against the debtor with respect to the collateral. Attachment occurs as soon as all of the events specified in subsection 1 have taken place unless explicit agreement postpones the time of attaching.

3. Unless otherwise agreed a security agreement gives the secured party the rights to proceeds provided by section 554.9306.

4. A transaction, although subject to this Article, is also subject to chapters 322, 534, 535, 536, 536A, and the Iowa consumer credit code, where applicable, and in the case of conflict between the provisions of this Article and those statutes, the provisions of those statutes control. Failure to comply with any applicable statute has only the effect which is specified therein.

Section History: Early form

[C66, 71, 73, § 554.9203, 554.9204 (1, 2); C75, 77, 79, 81, § 554.9203]

Section History: Recent form

89 Acts, ch 113, § 48; 89 Acts, ch 257, § 31

Internal References

Referred to in § 15E.91, 16.26, 16A.9, 554.1206, 554.4208, 554.4210, 554.9105

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