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Can you summarize IACO 554.9208?
UNIFORM COMMERCIAL CODE > Additional duties of secured party having control of collateral.
Short Summary
This section of the Iowa Code, specifically under the Uniform Commercial Code, outlines the additional duties of a secured party who has control of collateral. It applies to secured parties who have control of collateral and are not committed to any outstanding secured obligation or providing further value. The section specifies various actions that the secured party must take upon receiving a demand from the debtor. These actions include releasing the bank from any further obligation to comply with instructions related to a deposit account, paying the debtor the balance on deposit or transferring it to a deposit account in the debtor’s name, communicating the authoritative copy of electronic chattel paper to the debtor or its designated custodian, releasing the designated custodian from any further obligation to comply with instructions, and enabling the debtor or its custodian to make copies or revisions to the authoritative copy. The section also covers the release of securities intermediaries or commodity intermediaries from further obligation, the release of obligations related to letter-of-credit rights, and the transfer of control of electronic documents, electronic money, and controllable electronic records to the debtor or a designated person. No specific penalties are mentioned in this section.
Whom does it apply to?
Secured parties who have control of collateral
What does it govern?
Additional duties of secured party having control of collateral
What are exemptions?
This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa