§ 554.9320 — Buyer of goods

Iowa § 554.9320

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

Text

1. Buyer in ordinary course of business. Except as otherwise provided in subsection 5, a
buyerinordinarycourseofbusiness, otherthanapersonbuyingfarmproductsfromaperson
engaged in farming operations, takes free of a security interest created by the buyer’s seller,
even if the security interest is perfected and the buyer knows of its existence.
2. Buyer of consumer goods. Except as otherwise provided in subsection 5, a buyer of
goods from a person who used or bought the goods for use primarily for personal, family, or
household purposes takes free of a security interest, even if perfected, if the buyer buys:
a. without knowledge of the security interest;
b. for value;
c. primarily for the buyer’s personal, family, or household purposes; and
d. before the filing of a financing statement covering the goods.
3. Effectiveness of filing for subsection 2. To the extent that it affects the priority of a
security interest over a buyer of goods under subsection 2, the period of effectiveness of a
filing made in the jurisdiction in which the seller is located is governed by section 554.9316,
subsections 1 and 2.
4. Buyer in ordinary course of business at wellhead or minehead. A buyer in ordinary
course of business buying oil, gas, or other minerals at the wellhead or minehead or after
extraction takes free of an interest arising out of an encumbrance.
5. Possessory security interest not affected. Subsections 1 and 2 do not affect a security
interest in goods in the possession of the secured party under section 554.9313.