Iowa § 556D.4 Consignment — trust arrangement

Iowa Statutes

§ 556D.4 — Consignment — trust arrangement

Iowa § 556D.4

Title XIVPROPERTY

Ch. 556DCONSIGNMENTS BETWEEN ARTISTS AND ART DEALERS

This text of Iowa § 556D.4 (Consignment — trust arrangement) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 556D.4 (2026).

Text

A consignment remains trust property, even if purchased by the art dealer, until the price
is paid in full to the artist. If the work is resold to a bona fide purchaser before the artist has
been paid in full, the proceeds of the resale received by the art dealer constitute funds held
in trust for the benefit of the artist to the extent necessary to pay any balance still due to the
artist and the trusteeship continues until the fiduciary obligation of the art dealer with respect
to the transaction is discharged in full.

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A consignment remains trust property, even if purchased by the art dealer, until the price
is paid in full to the artist. If the work is resold to a bona fide purchaser before the artist has
been paid in full, the proceeds of the resale received by the art dealer constitute funds held
in trust for the benefit of the artist to the extent necessary to pay any balance still due to the
artist and the trusteeship continues until the fiduciary obligation of the art dealer with respect
to the transaction is discharged in full.