§ 554.12502

554.12502 Creditor process served on receiving bank — setoff by beneficiary’s bank. 1. As used in this section, 'creditor process' means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimantwith respect to an account. 2. This subsection applies to the creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. Forthe purpose of determining the rights of the parties with respect to the creditor process, if thereceiving bank accepts the payment order, the balance in the authorized account is deemedto be reduced by the amount of the payment order to the extent the bank did not otherwisereceive payment of the order, unless the creditor process is served at a time and in a manneraffording the bank a reasonable opportunity to act on it before the bank accepts the paymentorder. 3. If a beneficiary’s bank has received a payment order for payment to the beneficiary’s account in the bank, the following rules apply: a. The beneficiary’s bank may credit the beneficiary’s account.

. If a beneficiary’s bank has received a payment order for payment to the beneficiary’s account in the bank, the following rules apply: a. The beneficiary’s bank may credit the beneficiary’s account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied tosatisfy a creditor process served on the bank with respect to the account. b. The beneficiary’s bank may credit the beneficiary’s account and allow withdrawal of the amount credited unless a creditor process with respect to the account is served at a timeand in a manner affording the beneficiary’s bank a reasonable opportunity to act to preventwithdrawal. c. If a creditor process with respect to the beneficiary’s account has been served and the beneficiary’s bank has had a reasonable opportunity to act on it, the beneficiary’s bank maynot reject the payment order except for a reason unrelated to the service of process. 4. Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary’s bank with respect to the debtowed by that bank to the beneficiary.

with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary’s bank with respect to the debtowed by that bank to the beneficiary. Any other bank served with the creditor process is notrequired to act with respect to the process. 92 Acts, ch 1146, §33 Sat Dec 23 11:03:00 2023 Iowa Code 2024, Section 554.12502 (24, 0)