§ 654.2A — Agricultural land — notice, right to cure default

Iowa § 654.2A

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 654: FORECLOSURE OF REAL ESTATE MORTGAGES

Text

1. A creditor shall not initiate an action pursuant to this chapter to foreclose on a deed
of trust or mortgage on agricultural land, as defined in section 9H.1, until the creditor has
complied with this section.
2. A creditor who believes in good faith that a borrower on a deed of trust or mortgage
on agricultural land is in default may give the borrower notice of the alleged default, and,
if the borrower has a right to cure the default, shall give the borrower the notice of right to
cure provided in section 654.2B. The notice is deemed received if sent by certified mail to the
borrower.
3. The borrower has a right to cure the default unless the creditor has given the borrower
a proper notice of right to cure with respect to two prior defaults on the obligation secured by
the deed of trust or mortgage, or the borrower has voluntarily surrendered possession of the
agricultural land and the creditor has accepted it in full satisfaction of any debt owing on the
obligation in default. The borrower does not have a right to cure the default if the creditor
has given the borrower a proper notice of right to cure with respect to a prior default within
twelve months prior to the alleged default.
4. If the borrower has a right to cure a default:
a. A creditor shall not accelerate the maturity of the unpaid balance of the obligation,
demand or otherwise take possession of the land, other than by accepting a voluntary
surrender of it, or otherwise attempt to enforce the obligation until forty-five days after a
proper notice of right to cure is given. The time period for a request for mediation pursuant
to chapter 654A shall run concurrently with the period for the notice to cure under this
section.
b. Until the expiration of forty-five days after notice is given, the borrower may cure the
default by tendering either the amount of all unpaid installments due at the time of tender,
without acceleration, plus a delinquency charge of the scheduled annual interest rate plus
five percent per annum for the period between the giving of the notice of right to cure and the
tender, or the amount stated in the notice of right to cure, whichever is less, or by tendering
any performance necessary to cure a default other than nonpayment of amounts due, which
is described in the notice of right to cure.
5. The act of curing a default restores to the borrower the borrower’s rights under the
obligation and the deed of trust or mortgage, except as provided in subsection 3.
6. This section does not prohibit a borrower from voluntarily surrendering possession of
the agricultural land, and does not prohibit the creditor from enforcing the creditor’s interest
in the land at any time after compliance with this section.