§ 538.5 — Tender when holder absent from state

Iowa § 538.5

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 538: TENDER OF PAYMENT AND PERFORMANCE

Text

1. When an instrument for the payment of money is due and the holder is absent from
the state or the holder’s identity or whereabouts are unknown and the instrument does not
provide for a place of payment, the maker may tender payment at the last known residence
or place of business of the last known holder, and if there be no person there authorized to

receive payment and give proper credit therefor, the maker shall be deemed to have tendered
payment and interest shall cease on the date of deposit if:
a. The maker deposits the amount due with the clerk of the district court in the county
where the maker resided at the time of the making of the instrument, if the maker was then
a resident of the state of Iowa, or if the maker was a nonresident of the state of Iowa at the
time of making, with the clerk of the district court of Polk county, and
b. (1) The maker files an affidavit with the clerk of the court that the identity or address
of the holder is unknown and that the maker has made diligent inquiry to ascertain it, or
(2) Themakerwithinthreedaysgivesnoticeofsuchdepositbyordinarymailtotheholder,
if the holder’s identity and address are known.
2. Upon presentment of the instrument by the holder to the clerk, the clerk shall pay the
holder of such instrument the funds in the clerk’s hands. If such deposit is in full payment of
the instrument the clerk shall deliver the instrument to the maker. If such deposit is a partial
payment thereof the clerk shall endorse such payment thereon and return the instrument to
the holder.

Legislative History

[C51, §958; R60, §1805; C73, §2103; C97, §3060; C24, 27, 31, 35, 39, §9447; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §538.5]