§ 554.2506 — Rights of financing agency

Iowa § 554.2506

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

Text

1. Afinancingagencybypayingorpurchasingforvalueadraftwhichrelatestoashipment
of goods acquires to the extent of the payment or purchase and in addition to its own rights
under the draft and any document of title securing it any rights of the shipper in the goods
including the right to stop delivery and the shipper’s right to have the draft honored by the
buyer.
2. The right to reimbursement of a financing agency which has in good faith honored
or purchased the draft under commitment to or authority from the buyer is not impaired
by subsequent discovery of defects with reference to any relevant document which was
apparently regular.

Legislative History

[S13, §3138-b36; C24, 27, 31, 35, 39, §8281; C46, 50, 54, 58, 62, §487.37; C66, 71, 73, 75, 77, 79, 81, §554.2506]