537.3303 Debt secured by cross-collateral. 1. If debts arising from two or more consumer credit sales, other than sales pursuant to open-end credit, are secured by cross-collateral or consolidated into one debt payableon a single schedule of payments, and the debt is secured by security interests taken withrespect to one or more of the sales, payments received by the seller after the taking of thecross-collateral or the consolidation are deemed, for the purpose of determining the amountof the debt secured by the various security interests, to have been first applied to the paymentof the debts arising from the sales first made. To the extent debts are paid according to thissection, security interests in items of property terminate as the debt originally incurred withrespect to each item is paid. 2. Payments received by the seller upon an open-end credit account are deemed, for the purpose of determining the amount of the debt secured by the various security interests, tohave been applied first to the payment of finance charges in the order of their entry to theaccount and then to the payment of debts in the order in which the entries to the accountshowing the debts were made. 3. lied first to the payment of finance charges in the order of their entry to theaccount and then to the payment of debts in the order in which the entries to the accountshowing the debts were made. 3. If the debts consolidated arose from two or more sales made on the same day, payments received by the seller are deemed, for the purpose of determining the amount of the debtsecured by the various security interests, to have been applied first to the payment of thesmallest debt. [C75, 77, 79, 81, §537.3303]2018 Acts, ch 1041, §127 Sat Dec 23 01:40:22 2023 Iowa Code 2024, Section 537.3303 (20, 0)
Iowa Legal Code