§ 554.9604 — Procedure if security agreement covers real property or fixtures

Iowa § 554.9604

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

Text

1. Enforcement — personal and real property. If a security agreement covers both
personal and real property, a secured party may proceed:
a. under this part as to the personal property without prejudicing any rights with respect
to the real property; or

b. as to both the personal property and the real property in accordance with the rights
with respect to the real property, in which case the other provisions of this part do not apply.
2. Enforcement — fixtures. Subject to subsection 3, if a security agreement covers goods
that are or become fixtures, a secured party may proceed:
a. under this part; or
b. in accordance with the rights with respect to real property, in which case the other
provisions of this part do not apply.
3. Removal of fixtures. Subject to the other provisions of this part, if a secured party
holding a security interest in fixtures has priority over all owners and encumbrancers of
the real property, the secured party, after default, may remove the collateral from the real
property.
4. Injury caused by removal. A secured party that removes collateral shall promptly
reimburse any encumbrancer or owner of the real property, other than the debtor, for the
cost of repair of any physical injury caused by the removal. The secured party need not
reimburse the encumbrancer or owner for any diminution in value of the real property
caused by the absence of the goods removed or by any necessity of replacing them. A person
entitled to reimbursement may refuse permission to remove until the secured party gives
adequate assurance for the performance of the obligation to reimburse.