2009 Iowa Code
Title 13 - Commerce
Subtitle 5 - Regulation of Commercial Enterprises
CHAPTER 554 - UNIFORM COMMERCIAL CODE
554.2401 - PASSING OF TITLE -- RESERVATION FOR SECURITY -- LIMITED APPLICATION OF THIS SECTION.

        554.2401  PASSING OF TITLE -- RESERVATION FOR SECURITY
      -- LIMITED APPLICATION OF THIS SECTION.
         Each provision of this Article with regard to the rights,
      obligations and remedies of the seller, the buyer, purchasers or
      other third parties applies irrespective of title to the goods except
      where the provision refers to such title.  Insofar as situations are
      not covered by the other provisions of this Article and matters
      concerning title become material the following rules apply:
         1.  Title to goods cannot pass under a contract for sale prior to
      their identification to the contract (section 554.2501), and unless
      otherwise explicitly agreed the buyer acquires by their
      identification a special property as limited by this chapter.  Any
      retention or reservation by the seller of the title (property) in
      goods shipped or delivered to the buyer is limited in effect to a
      reservation of a security interest.  Subject to these provisions and
      to the provisions of the Article on Secured Transactions (Article 9),
      title to goods passes from the seller to the buyer in any manner and
      on any conditions explicitly agreed on by the parties.
         2.  Unless otherwise explicitly agreed title passes to the buyer
      at the time and place at which the seller completes the seller's
      performance with reference to the physical delivery of the goods,
      despite any reservation of a security interest and even though a
      document of title is to be delivered at a different time or place;
      and in particular and despite any reservation of a security interest
      by the bill of lading
         a.  if the contract requires or authorizes the seller to send
      the goods to the buyer but does not require the seller to deliver
      them at destination, title passes to the buyer at the time and place
      of shipment; but
         b.  if the contract requires delivery at destination, title
      passes on tender there.
         3.  Unless otherwise explicitly agreed where delivery is to be
      made without moving the goods,
         a.  if the seller is to deliver a tangible document of title,
      title passes at the time when and the place where the seller delivers
      such documents and if the seller is to deliver an electronic document
      of title, title passes when the seller delivers the document; or
         b.  if the goods are at the time of contracting already
      identified and no documents of title are to be delivered, title
      passes at the time and place of contracting.
         4.  A rejection or other refusal by the buyer to receive or retain
      the goods, whether or not justified, or a justified revocation of
      acceptance revests title to the goods in the seller.  Such revesting
      occurs by operation of law and is not a "sale".  

         Section History: Early Form

         [C24, 27, 31, 35, 39, § 9946--9949; C46, 50, 54, 58, 62, §
      554.18--554.21; C66, 71, 73, 75, 77, 79, 81, § 554.2401] 

         Section History: Recent Form

         2007 Acts, ch 30, §45, 46, 52
         Referred to in § 554.1201, 554.2106, 554.9102, 554.9109, 554.9110,
      554.9309