2009 Iowa Code
Title 13 - Commerce
Subtitle 5 - Regulation of Commercial Enterprises
CHAPTER 554 - UNIFORM COMMERCIAL CODE
554.9203 - ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST -- PROCEEDS -- SUPPORTING OBLIGATIONS -- FORMAL REQUISITES.

        554.9203  ATTACHMENT AND ENFORCEABILITY OF SECURITY
      INTEREST -- PROCEEDS -- SUPPORTING OBLIGATIONS -- FORMAL
      REQUISITES.
         1.  Attachment.  A security interest attaches to collateral
      when it becomes enforceable against the debtor with respect to the
      collateral, unless an agreement expressly postpones the time of
      attachment.
         2.  Enforceability.  Except as otherwise provided in
      subsections 3 through 9, a security interest is enforceable against
      the debtor and third parties with respect to the collateral only if:
         a.  value has been given;
         b.  the debtor has rights in the collateral or the power to
      transfer rights in the collateral to a secured party; and
         c.  one of the following conditions is met:
         (1)  the debtor has authenticated a security agreement that
      provides a description of the collateral and, if the security
      interest covers timber to be cut, a description of the land
      concerned;
         (2)  the collateral is not a certificated security and is in the
      possession of the secured party under section 554.9313 pursuant to
      the debtor's security agreement;
         (3)  the collateral is a certificated security in registered form
      and the security certificate has been delivered to the secured party
      under section 554.8301 pursuant to the debtor's security agreement;
      or
         (4)  the collateral is deposit accounts, electronic chattel paper,
      investment property, letter-of-credit rights, or electronic
      documents, and the secured party has control under section 554.7106,
      554.9104, 554.9105, 554.9106, or 554.9107 pursuant to the debtor's
      security agreement.
         3.  Other UCC provisions.  Subsection 2 is subject to section
      554.4210 on the security interest of a collecting bank, section
      554.5118 on the security interest of a letter-of-credit issuer or
      nominated person, section 554.9110 on a security interest arising
      under Article 2 or 13, and section 554.9206 on security interests in
      investment property.
         4.  When person becomes bound by another person's security
      agreement.  A person becomes bound as debtor by a security
      agreement entered into by another person if, by operation of law
      other than this Article or by contract:
         a.  the security agreement becomes effective to create a
      security interest in the person's property; or
         b.  the person becomes generally obligated for the obligations
      of the other person, including the obligation secured under the
      security agreement, and acquires or succeeds to all or substantially
      all of the assets of the other person.
         5.  Effect of new debtor becoming bound.  If a new debtor
      becomes bound as debtor by a security agreement entered into by
      another person:
         a.  the agreement satisfies subsection 2, paragraph "c",
      with respect to existing or after-acquired property of the new debtor
      to the extent the property is described in the agreement; and
         b.  another agreement is not necessary to make a security
      interest in the property enforceable.
         6.  Proceeds and supporting obligations.  The attachment of a
      security interest in collateral gives the secured party the rights to
      proceeds provided by section 554.9315 and is also attachment of a
      security interest in a supporting obligation for the collateral.
         7.  Lien securing right to payment.  The attachment of a
      security interest in a right to payment or performance secured by a
      security interest or other lien on personal or real property is also
      attachment of a security interest in the security interest, mortgage,
      or other lien.
         8.  Security entitlement carried in securities account.  The
      attachment of a security interest in a securities account is also
      attachment of a security interest in the security entitlements
      carried in the securities account.
         9.  Commodity contracts carried in commodity account.  The
      attachment of a security interest in a commodity account is also
      attachment of a security interest in the commodity contracts carried
      in the commodity account.  

         Section History: Recent Form

         2000 Acts, ch 1149, §13, 185, 187; 2007 Acts, ch 30, §45, 46, 66
         Referred to in § 554.4210, 554.5118, 554.9102, 554.9109, 554.9110,
      554.9317, 554.9508, 554.9703, 554.9704, 554.9709
         Sufficiency of description, see §554.9108
         Effectiveness of financing statement if new debtor bound, see
      §554.9508 

         Footnotes

         Former section repealed effective July 1, 2001; 2000 Acts, ch
      1149, §185, 187; for law prior to July 1, 2001, see Code 2001