Ask Reggi Your Question Now
Can you summarize IACO 554.9320?
UNIFORM COMMERCIAL CODE > Buyer of goods.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the rights and obligations of buyers of goods. It specifies that a buyer in ordinary course of business, except for a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer’s seller, even if the security interest is perfected and the buyer knows of its existence. Similarly, a buyer of consumer goods, who buys without knowledge of a security interest, for value, primarily for personal, family, or household purposes, and before the filing of a financing statement covering the goods, also takes free of the security interest. However, these provisions do not affect a possessory security interest in goods in the possession of the secured party. Additionally, a buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance. The document also refers to the effectiveness of filing for subsection 2, which is governed by section 554.9316, subsections 1 and 2. No specific penalties are mentioned in this document.
Whom does it apply to?
Buyers in ordinary course of business, buyers of consumer goods, buyers in ordinary course of business at wellhead or minehead
What does it govern?
Buyer of goods
What are exemptions?
Person buying farm products from a person engaged in farming operations, possessory security interest in goods in the possession of the secured party
What are the Penalties?
No penalties mentioned.
Jurisdiction
Iowa