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Can you summarize IACO 554.9330?
UNIFORM COMMERCIAL CODE > Priority of purchaser of chattel paper or instrument.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, establishes the priority of purchasers of chattel paper or instruments. It outlines the conditions under which a purchaser of chattel paper has priority over a security interest claimed as proceeds of inventory or claimed as other security interests. The document specifies that the purchaser must give new value, take possession of the chattel paper, obtain control of the chattel paper, and act in good faith and in the ordinary course of business. It also addresses the priority of purchasers in the proceeds of chattel paper and instruments. The document further states that a purchaser of an instrument has priority over a security interest if they give value, take possession of the instrument, and act in good faith. Additionally, it mentions that a holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory. Overall, this document provides guidelines for determining the priority of purchasers in relation to chattel paper and instruments.
Whom does it apply to?
Purchasers of chattel paper or instruments
What does it govern?
Priority of purchaser of chattel paper or instrument
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa