554.9501  Default--procedure when security agreement covers both real and personal property.

1.  When a debtor is in default under a security agreement, a secured party has the rights and remedies provided in this Part and except as limited by subsection 3 those provided in the security agreement. The secured party may reduce the secured party's claim to judgment, foreclose or otherwise enforce the security interest by any available judicial procedure. If the collateral is documents the secured party may proceed either as to the documents or as to the goods covered thereby. A secured party in possession has the rights, remedies and duties provided in section 554.9207. The rights and remedies referred to in this subsection are cumulative.

2.  After default, the debtor has the rights and remedies provided in this Part, those provided in the security agreement and those provided in section 554.9207.

3.  To the extent that they give rights to the debtor and impose duties on the secured party, the rules stated in the subsections referred to below may not be waived or varied except as provided with respect to compulsory disposition of collateral (section 554.9504, subsection 3 and section 554.9505) and with respect to redemption of collateral (section 554.9506) but the parties may by agreement determine the standards by which the fulfillment of these rights and duties is to be measured if such standards are not manifestly unreasonable:

a.  subsection 2 of section 554.9502 and subsection 2 of section 554.9504 insofar as they require accounting for surplus proceeds of collateral;

b.  subsection 3 of section 554.9504 and subsection 1 of section 554.9505 which deal with disposition of collateral;

c.  subsection 2 of section 554.9505 which deals with acceptance of collateral as discharge of obligation;

d.  section 554.9506 which deals with redemption of collateral; and

e.  subsection 1 of section 554.9507 which deals with the secured party's liability for failure to comply with this Part.

4.  If the security agreement covers both real and personal property, the secured party may proceed under this Part as to the personal property or may proceed as to both the real and the personal property in accordance with the secured party's rights and remedies in respect of the real property in which case the provisions of this Part do not apply.

5.  When a secured party has reduced the secured party's claim to judgment the lien of any levy which may be made upon the secured party's collateral by virtue of any execution based upon the judgment shall relate back to the date of the perfection of the security interest in such collateral. A judicial sale, pursuant to such execution, is a foreclosure of the security interest by judicial procedure within the meaning of this section, and the secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this Article.

6.  A creditor, as defined in section 654A.1, shall not initiate a proceeding under this chapter against a borrower subject to section 654A.4 to enforce a secured interest in agricultural property, as defined in section 654A.1, which is subject to chapter 654A and which is subject to a secured debt of twenty thousand dollars or more unless the person receives a mediation release under section 654A.11, or unless the court determines after notice and hearing that the time delay required for the mediation would cause the person to suffer irreparable harm.

Section History: Early form

  [C51, § 2071; R60, § 3649; C73, § 3307; C97, § 4273, 4285; C24, 27, 31, 35, 39, § 12352, 12364, 12365; C46, 50, 54, 58, 62, § 652.1, 653.1, 653.2; C66, 71, 73, 75, 77, 79, 81, § 554.9501]

Section History: Recent form

  86 Acts, ch 1214, § 7

Internal References

  Referred to in § 15E.91, 16.26, 16A.9, 537.5103

Footnotes

  Legislative findings, 86 Acts, ch 1214, §1


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