§ 554.9316 — Effect of change in governing law

Iowa § 554.9316

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

Text

1. General rule — effect on perfection of change in governing law. A security interest
perfected pursuant to the law of the jurisdiction designated in section 554.9301, subsection
1, section 554.9305, subsection 3, section 554.9306A, subsection 4, or section 554.9306B,
subsection 2, remains perfected until the earliest of:
a. the time perfection would have ceased under the law of that jurisdiction;
b. the expiration of four months after a change of the debtor’s location to another
jurisdiction; or
c. the expiration of one year after a transfer of collateral to a person that thereby becomes
a debtor and is located in another jurisdiction.
2. Security interest perfected or unperfected under law of new jurisdiction. If a security
interest described in subsection 1 becomes perfected under the law of the other jurisdiction
before the earliest time or event described in that subsection, it remains perfected thereafter.
If the security interest does not become perfected under the law of the other jurisdiction
before the earliest time or event, it becomes unperfected and is deemed never to have been
perfected as against a purchaser of the collateral for value.
3. Possessory security interest in collateral moved to new jurisdiction. A possessory
security interest in collateral, other than goods covered by a certificate of title and
as-extracted collateral consisting of goods, remains continuously perfected if:
a. the collateral is located in one jurisdiction and subject to a security interest perfected
under the law of that jurisdiction;
b. thereafter the collateral is brought into another jurisdiction; and
c. upon entry into the other jurisdiction, the security interest is perfected under the law
of the other jurisdiction.
4. Goods covered by certificate of title from this state. Except as otherwise provided in
subsection 5, a security interest in goods covered by a certificate of title which is perfected
by any method under the law of another jurisdiction when the goods become covered by
a certificate of title from this state remains perfected until the security interest would have
become unperfected under the law of the other jurisdiction had the goods not become so
covered.
5. When subsection 4 security interest becomes unperfected against purchasers. A
security interest described in subsection 4 becomes unperfected as against a purchaser of
the goods for value and is deemed never to have been perfected as against a purchaser of
the goods for value if the applicable requirements for perfection under section 554.9311,
subsection 2, or section 554.9313 are not satisfied before the earlier of:
a. thetimethesecurityinterestwouldhavebecomeunperfectedunderthelawoftheother
jurisdiction had the goods not become covered by a certificate of title from this state; or
b. the expiration of four months after the goods had become so covered.
6. Change in jurisdiction of chattel paper, controllable electronic record, bank, issuer,
nominated person, securities intermediary, or commodity intermediary. A security interest

in chattel paper, controllable accounts, controllable electronic records, controllable payment
intangibles, deposit accounts, letter-of-credit rights, or investment property which is
perfected under the law of the chattel paper’s jurisdiction, the controllable electronic
record’s jurisdiction, the bank’s jurisdiction, the issuer’s jurisdiction, a nominated person’s
jurisdiction, the securities intermediary’s jurisdiction, or the commodity intermediary’s
jurisdiction, as applicable, remains perfected until the earlier of:
a. the time the security interest would have become unperfected under the law of that
jurisdiction; or
b. the expiration of four months after a change of the applicable jurisdiction to another
jurisdiction.
7. Subsection6securityinterestperfectedorunperfectedunderlawofnewjurisdiction. If
a security interest described in subsection 6 becomes perfected under the law of the other
jurisdiction before the earlier of the time or the end of the period described in that subsection,
it remains perfected thereafter. If the security interest does not become perfected under
the law of the other jurisdiction before the earlier of that time or the end of that period, it
becomes unperfected and is deemed never to have been perfected as against a purchaser of
the collateral for value.
8. Effect on filed financing statement of change in governing law. The following rules
apply to collateral to which a security interest attaches within four months after the debtor
changes its location to another jurisdiction:
a. A financing statement filed before the change pursuant to the law of the jurisdiction
designated in section 554.9301, subsection 1, or section 554.9305, subsection 3, is effective to
perfectasecurityinterestinthecollateralifthefinancingstatementwouldhavebeeneffective
to perfect a security interest in the collateral had the debtor not changed its location.
b. If a security interest perfected by a financing statement that is effective under
paragraph “a” becomes perfected under the law of the other jurisdiction before the earlier
of the time the financing statement would have become ineffective under the law of the
jurisdiction designated in section 554.9301, subsection 1, or section 554.9305, subsection 3,
or the expiration of the four-month period, it remains perfected thereafter. If the security
interest does not become perfected under the law of the other jurisdiction before the earlier
time or event, it becomes unperfected and is deemed never to have been perfected as against
a purchaser of the collateral for value.
9. Effect of change in governing law on financing statement filed against original
debtor. If a financing statement naming an original debtor is filed pursuant to the law of
the jurisdiction designated in section 554.9301, subsection 1, or section 554.9305, subsection
3, and the new debtor is located in another jurisdiction, the following rules apply:
a. The financing statement is effective to perfect a security interest in collateral acquired
bythenewdebtorbefore, andwithinfourmonthsafter, thenewdebtorbecomesboundunder
section554.9203, subsection4, ifthefinancingstatementwouldhavebeeneffectivetoperfect
a security interest in the collateral had the collateral been acquired by the original debtor.
b. A security interest perfected by the financing statement and which becomes perfected
under the law of the other jurisdiction before the earlier of the time the financing statement
would have become ineffective under the law of the jurisdiction designated in section
554.9301, subsection 1, or section 554.9305, subsection 3, or the expiration of the four-month
period remains perfected thereafter. A security interest that is perfected by the financing
statement but which does not become perfected under the law of the other jurisdiction
before the earlier time or event becomes unperfected and is deemed never to have been
perfected as against a purchaser of the collateral for value.