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Can you summarize IACO 554.3305?
UNIFORM COMMERCIAL CODE > Defenses and claims in recoupment.
Short Summary
This legal document, found in the Iowa Code under the Commerce section and the Uniform Commercial Code, discusses the defenses and claims in recoupment related to the enforcement of obligations for instruments. It outlines the rights and defenses available to obligors, including defenses based on infancy, duress, lack of legal capacity, illegality of the transaction, fraud, and discharge in insolvency proceedings. The document also allows for claims in recoupment by the obligor against the original payee of the instrument, but limits the assertion of such claims against transferees. Additionally, it addresses the rights of holders in due course and the limitations on defenses and claims in recoupment against persons other than the holder. The document further explains that an obligor may not assert certain defenses, claims in recoupment, or claims to the instrument of another person, unless that person is joined in the action and personally asserts the claim. However, an obligor is not obliged to pay the instrument if the person seeking enforcement does not have the rights of a holder in due course and the obligor proves that the instrument is lost or stolen. Finally, the document specifies the defenses and claims in recoupment that an accommodation party may assert against the person entitled to enforce the instrument, with certain exceptions. Overall, this document provides guidance on the rights and limitations related to defenses and claims in recoupment in the context of enforcing obligations for instruments.
Whom does it apply to?
Parties involved in the enforcement of obligations related to instruments
What does it govern?
Defenses and claims in recoupment
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Iowa