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Can you summarize IACO 554.4210?
UNIFORM COMMERCIAL CODE > Security interest of collecting bank in items, accompanying documents and proceeds.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, establishes the security interest of a collecting bank in items, accompanying documents, and proceeds. A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either in various scenarios, such as when credit given for the item has been withdrawn or applied, when credit has been given for an item available for withdrawal, or when an advance is made on or against the item. The security interest remains even if credit given for several items is withdrawn or applied in part. Receipt of a final settlement for an item is considered a realization on the bank’s security interest. The security interest is enforceable without a security agreement, does not require filing for perfection, and has priority over conflicting perfected security interests. This document is referenced in other sections of the Iowa Code related to commerce and the Uniform Commercial Code.
Whom does it apply to?
Collecting banks
What does it govern?
Security interest of collecting bank in items, accompanying documents, and proceeds
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa