§ 554.4210 — Security interest of collecting bank in items, accompanying documents and proceeds

Iowa § 554.4210

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

Text

proceeds.
1. A collecting bank has a security interest in an item and any accompanying documents
or the proceeds of either:
a. in case of an item deposited in an account, to the extent to which credit given for the
item has been withdrawn or applied;
b. in case of an item for which it has given credit available for withdrawal as of right, to
the extent of the credit given, whether or not the credit is drawn upon or there is a right of
charge-back; or
c. if it makes an advance on or against the item.
2. If credit given for several items received at one time or pursuant to a single agreement

is withdrawn or applied in part, the security interest remains upon all the items, any
accompanying documents or the proceeds of either. For the purpose of this section, credits
first given are first withdrawn.
3. Receipt by a collecting bank of a final settlement for an item is a realization on its
security interest in the item, accompanying documents, and proceeds. So long as the bank
does not receive final settlement for the item or give up possession of the item or possession
or control of the accompanying documents for purposes other than collection, the security
interest continues to that extent and is subject to Article 9, but:
a. no security agreement is necessary to make the security interest enforceable (section
554.9203, subsection 2, paragraph “c”, subparagraph (1));
b. no filing is required to perfect the security interest; and
c. thesecurityinteresthaspriorityoverconflictingperfectedsecurityinterestsintheitem,
accompanying documents, or proceeds.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.4208]