The following rules govern priority among conflicting security interests in the same investment property:
1. A security interest held by a secured party having control of investment property under section 554.9106 has priority over a security interest held by a secured party that does not have control of the investment property.
2. Except as otherwise provided in subsections 3 and 4, conflicting security interests held by secured parties each of which has control under section 554.9106 rank according to priority in time of:
a. if the collateral is a security, obtaining control;
b. if the collateral is a security entitlement carried in a securities account and:
(1) if the secured party obtained control under section 554.8106, subsection 4, paragraph "a", the secured party's becoming the person for which the securities account is maintained;
(2) if the secured party obtained control under section 554.8106, subsection 4, paragraph "b", the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
(3) if the secured party obtained control through another person under section 554.8106, subsection 4, paragraph "c", the time on which priority would be based under this subsection if the other person were the secured party; or
c. if the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in section 554.9106, subsection 2, paragraph "b", with respect to commodity contracts carried or to be carried with the commodity intermediary.
3. A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
4. A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
5. A security interest in a certificated security in registered form which is perfected by taking delivery under section 554.9313, subsection 1, and not by control under section 554.9314 has priority over a conflicting security interest perfected by a method other than control.
6. Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under section 554.9106 rank equally.
7. In all other cases, priority among conflicting security interests in investment property is governed by sections 554.9322 and 554.9323.
2000 Acts, ch 1149, §48, 187
Referred to in § 554.9322
Effective July 1, 2001; 2000 Acts, ch 1149, §187; for law prior to July 1, 2001, see Code 2001
Previous Section 554.9327
Next Section 554.9329
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 24 10:51:05 CST 2002
URL: /DOCS/IACODE/2001SUPPLEMENT/554/9328.html
jhf