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Can you summarize IACO 554.9620?
UNIFORM COMMERCIAL CODE > Acceptance of collateral in full or partial satisfaction of obligation compulsory disposition of collateral.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the acceptance of collateral in full or partial satisfaction of an obligation. It outlines the conditions under which a secured party may accept collateral, including obtaining the debtor’s consent and not receiving any objections from other interested parties. The document also specifies that if the collateral is consumer goods, it should not be in the possession of the debtor at the time of acceptance. Additionally, it establishes the mandatory disposition of consumer goods by the secured party within a specified time frame. The document further clarifies the requirements for debtor’s consent and the effectiveness of acceptance. It concludes by stating that in consumer transactions, a secured party cannot accept collateral in partial satisfaction of the obligation it secures.
Whom does it apply to?
Secured parties and debtors involved in commercial transactions
What does it govern?
Acceptance of collateral in full or partial satisfaction of obligation compulsory disposition of collateral
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Iowa