§ 554.9607 — Collection and enforcement by secured party

Iowa § 554.9607

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

Text

1. Collection and enforcement generally. If so agreed, and in any event after default, a
secured party:
a. may notify an account debtor or other person obligated on collateral to make payment
or otherwise render performance to or for the benefit of the secured party;
b. may take any proceeds to which the secured party is entitled under section 554.9315;

c. mayenforcetheobligationsofanaccountdebtororotherpersonobligatedoncollateral
and exercise the rights of the debtor with respect to the obligation of the account debtor or
otherpersonobligatedoncollateraltomakepaymentorotherwiserenderperformancetothe
debtor, and with respect to any property that secures the obligations of the account debtor or
other person obligated on the collateral;
d. if it holds a security interest in a deposit account perfected by control under section
554.9104, subsection 1, paragraph “a”, may apply the balance of the deposit account to the
obligation secured by the deposit account; and
e. if it holds a security interest in a deposit account perfected by control under section
554.9104, subsection 1, paragraph “b” or “c”, may instruct the bank to pay the balance of the
deposit account to or for the benefit of the secured party.
2. Nonjudicial enforcement of mortgage. If necessary to enable a secured party to
exercise under subsection 1, paragraph “c”, the right of a debtor to enforce a mortgage
nonjudicially, the secured party may record in the office in which a record of the mortgage
is recorded:
a. a copy of the security agreement that creates or provides for a security interest in the
obligation secured by the mortgage; and
b. the secured party’s sworn affidavit in recordable form stating that:
(1) a default has occurred with respect to the obligation secured by the mortgage; and
(2) the secured party is entitled to enforce the mortgage nonjudicially.
3. Commercially reasonable collection and enforcement. A secured party shall proceed
in a commercially reasonable manner if the secured party:
a. undertakestocollectfromorenforceanobligationofanaccountdebtororotherperson
obligated on collateral; and
b. is entitled to charge back uncollected collateral or otherwise to full or limited recourse
against the debtor or a secondary obligor.
4. Expenses of collection and enforcement. A secured party may deduct from
the collections made pursuant to subsection 3 reasonable expenses of collection and
enforcement, including reasonable attorney’s fees and legal expenses incurred by the
secured party.
5. Duties to secured party not affected. This section does not determine whether an
account debtor, bank, or other person obligated on collateral owes a duty to a secured party.