1. A security interest in chattel paper or negotiable documents may be perfected by filing. A security interest in the rights to proceeds of a written letter of credit can be perfected only by the secured party's taking possession of the letter of credit. A security interest in money or instruments (other than instruments which constitute part of chattel paper) can be perfected only by the secured party's taking possession, except as provided in subsections 4 and 5 of this section and section 554.9306, subsections 2 and 3, on proceeds.
2. During the period that goods are in the possession of the issuer of a negotiable document therefor, a security interest in the goods is perfected by perfecting a security interest in the document, and any security interest in the goods otherwise perfected during such period is subject thereto.
3. A security interest in goods in the possession of a bailee other than one who has issued a negotiable document therefor is perfected by issuance of a document in the name of the secured party or by the bailee's receipt of notification of the secured party's interest or by filing as to the goods.
4. A security interest in instruments, certificated securities, or negotiable documents is perfected without filing or the taking of possession for a period of twenty-one days from the time it attaches to the extent that it arises for new value given under a written security agreement.
5. A security interest remains perfected for a period of twenty-one days without filing where a secured party having a perfected security interest in an instrument, a certificated security, a negotiable document, or goods in possession of a bailee other than one who has issued a negotiable document therefor
a. makes available to the debtor the goods or documents representing the goods for the purpose of ultimate sale or exchange or for the purpose of loading, unloading, storing, shipping, transshipping, manufacturing, processing or otherwise dealing with them in a manner preliminary to their sale or exchange, but priority between conflicting security interests in the goods is subject to section 554.9312, subsection 3; or
b. delivers the instrument or certificated security to the debtor for the purpose of ultimate sale or exchange or of presentation, collection, renewal, or registration of transfer.
6. After the twenty-one day period in subsections 4 and 5 perfection depends upon compliance with applicable provisions of this Article.
[C24, 27, 31, 35, 39, § 10023; C46, 50, 54, 58, 62, § 556.12; C66, 71, 73, 75, 77, 79, 81, § 554.9304]
89 Acts, ch 113, § 50; 96 Acts, ch 1026, § 26, 28; 96 Acts, ch 1138, § 71, 84
Referred to in § 15E.91, 16.26, 16A.9, 554.9302, 554.9303, 554.9308, 554.9312
1996 amendments to subsections 1, 4, and 5 by 96 Acts, ch 1138, § 71 take effect July 1, 1997; 96 Acts, ch 1138, § 84; for provisions governing the continued perfection of security interests that are perfected as of July 1, 1997, see 96 Acts, ch 1138, § 80, 84; for law prior to July 1, 1997, see Code 1995
1996 amendment by 96 Acts, ch 1026, § 26 applies to letters of credit issued on or after July 1, 1996; see 96 Acts, ch 1026, § 28; for law applicable to letters of credit issued prior to July 1, 1996, see Code 1995
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