554.13303 Alienability of party’s interest under lease contract or of lessor’s residual interest in goods — delegation of performance — transfer of rights. 1. As used in this section, 'creation of a security interest' includes the sale of a lease contract that is subject to Article 9, Secured Transactions, by reason of section 554.9109,subsection 1, paragraph 'c'. 2. Except as provided in subsection 3 and section 554.9407, a provision in a lease agreement which prohibits the voluntary or involuntary transfer, including a transfer bysale, sublease, creation or enforcement of a security interest, or attachment, levy, or otherjudicial process, of an interest of a party under the lease contract or of the lessor’s residualinterest in the goods, or makes such a transfer an event of default, gives rise to the rightsand remedies provided in subsection 4, but a transfer that is prohibited or is an event ofdefault under the lease agreement is otherwise effective. 3. A provision in a lease agreement which prohibits a transfer of a right to damages for default with respect to the whole lease contract or of a right to payment arising out of thetransferor’s due performance of the transferor’s ement which prohibits a transfer of a right to damages for default with respect to the whole lease contract or of a right to payment arising out of thetransferor’s due performance of the transferor’s entire obligation, or makes such a transferan event of default, is not enforceable, and such a transfer is not a transfer that materiallyimpairs the prospect of obtaining return performance by, materially changes the duty of, ormaterially increases the burden or risk imposed on, the other party to the lease contract withinthe purview of subsection 4. 4. Subject to subsection 3 and section 554.9407:a. if a transfer is made which is made an event of default under a lease agreement, the party to the lease contract not making the transfer, unless that party waives the default orotherwise agrees, has the rights and remedies described in section 554.13501, subsection 2; b. if paragraph 'a' is not applicable and if a transfer is made that is prohibited under a lease agreement or materially impairs the prospect of obtaining return performance by,materially changes the duty of, or materially increases the burden or risk imposed on, theother party to the lease contract, unless the party not pairs the prospect of obtaining return performance by,materially changes the duty of, or materially increases the burden or risk imposed on, theother party to the lease contract, unless the party not making the transfer agrees at any timeto the transfer in the lease contract or otherwise, then, except as limited by contract, thetransferor is liable to the party not making the transfer for damages caused by the transferto the extent that the damages could not reasonably be prevented by the party not makingthe transfer and a court having jurisdiction may grant other appropriate relief, includingcancellation of the lease contract or an injunction against the transfer. 5. A transfer of 'the lease' or of 'all my rights under the lease', or a transfer in similar general terms, is a transfer of rights and, unless the language or the circumstances, as ina transfer for security, indicate the contrary, the transfer is a delegation of duties by thetransferor to the transferee. Acceptance by the transferee constitutes a promise by thetransferee to perform those duties. The promise is enforceable by either the transferor orthe other party to the lease contract. 6. ransferee. Acceptance by the transferee constitutes a promise by thetransferee to perform those duties. The promise is enforceable by either the transferor orthe other party to the lease contract. 6. Unless otherwise agreed by the lessor and the lessee, a delegation of performance does not relieve the transferor as against the other party of any duty to perform or of any liabilityfor default. 7. In a consumer lease, to prohibit the transfer of an interest of a party under the lease contract or to make a transfer an event of default, the language must be specific, by a writing,and conspicuous. 94 Acts, ch 1052, §37; 2000 Acts, ch 1149, §157, 187; 2013 Acts, ch 30, §261Referred to in §554.9406, 554.9407, 554.13304, 554.13305 Sat Dec 23 11:03:16 2023 Iowa Code 2024, Section 554.13303 (25, 0)
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