§ 554.2501 — Insurable interest in goods — manner of identification of goods

Iowa § 554.2501

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

Text

1. Thebuyerobtainsaspecialpropertyandaninsurableinterestingoodsbyidentification
of existing goods as goods to which the contract refers even though the goods so identified
are nonconforming and the buyer has an option to return or reject them. Such identification
can be made at any time and in any manner explicitly agreed to by the parties. In the absence
of explicit agreement identification occurs
a. when the contract is made if it is for the sale of goods already existing and identified;
b. if the contract is for the sale of future goods other than those described in paragraph
“c”, when goods are shipped, marked or otherwise designated by the seller as goods to which
the contract refers;
c. when the crops are planted or otherwise become growing crops or the young are
conceived if the contract is for the sale of unborn young to be born within twelve months
after contracting or for the sale of crops to be harvested within twelve months or the next
normal harvest season after contracting whichever is longer.
2. Thesellerretainsaninsurableinterestingoodssolongastitletooranysecurityinterest
in the goods remains in the seller and where the identification is by the seller alone the seller
may until default or insolvency or notification to the buyer that the identification is final
substitute other goods for those identified.
3. Nothing in this section impairs any insurable interest recognized under any other
statute or rule of law.

Legislative History

[C24, 27, 31, 35, 39, §9946, 9948; C46, 50, 54, 58, 62, §554.18, 554.20; C66, 71, 73, 75, 77, 79, 81, §554.2501]