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Can you summarize IACO 554.9508?
UNIFORM COMMERCIAL CODE > Effectiveness of financing statement if new debtor becomes bound by security agreement.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, addresses the effectiveness of a financing statement when a new debtor becomes bound by a security agreement. It states that a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights, to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral. However, if the difference between the name of the original debtor and the new debtor causes the financing statement to be seriously misleading, it is only effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under section 554.9203, subsection 4. After four months, an initial financing statement providing the name of the new debtor must be filed for the financing statement to remain effective. This section does not apply to collateral for which a filed financing statement remains effective against the new debtor under section 554.9507, subsection 1.
Whom does it apply to?
Creditors and debtors involved in security agreements and financing statements
What does it govern?
Effectiveness of financing statement if new debtor becomes bound by security agreement
What are exemptions?
This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under section 554.9507, subsection 1.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Iowa