§ 554.2402 — Rights of seller’s creditors against sold goods

Iowa § 554.2402

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Except as provided in subsections 2 and 3, rights of unsecured creditors of the seller
with respect to goods which have been identified to a contract for sale are subject to the
buyer’s rights to recover the goods under this Article (sections 554.2502 and 554.2716).
2. A creditor of the seller may treat a sale or an identification of goods to a contract for
saleasvoidifasagainstthecreditoraretentionofpossessionbythesellerisfraudulentunder
any rule of law of the state where the goods are situated, except that retention of possession
in good faith and current course of trade by a merchant-seller for a commercially reasonable
time after a sale or identification is not fraudulent.
3. Nothing in this Article shall be deemed to impair the rights of creditors of the seller
a. under the provisions of the Article on Secured Transactions (Article 9); or
b. where identification to the contract or delivery is made not in current course of trade
but in satisfaction of or as security for a preexisting claim for money, security or the like
and is made under circumstances which under any rule of law of the state where the goods
are situated would apart from this Article constitute the transaction a fraudulent transfer or
voidable preference.

Legislative History

[C24,27,31,35,39,§9955; C46,50,54,58,62,§554.27; C66,71,73,75,77,79,81,§554.2402]