§ 554.13310

554.13310 Lessor’s and lessee’s rights when goods become accessions. 1. Goods are 'accessions' when they are installed in or affixed to other goods.2. The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to all interests in the whole except as stated in subsection 4. 3. The interest of a lessor or a lessee under a lease contract entered into at the time or after the goods became accessions is superior to all subsequently acquired interests in thewhole except as stated in subsection 4 but is subordinate to interests in the whole existing atthe time the lease contract was made unless the holders of such interests in the whole havein writing consented to the lease or disclaimed an interest in the goods as part of the whole. 4. The interest of a lessor or a lessee under a lease contract described in subsection 2 or 3 is subordinate to the interest of a. a buyer in the ordinary course of business or a lessee in the ordinary course of business of any interest in the whole acquired after the goods became accessions; or b. a creditor with a security interest in the whole perfected before the lease contract was made to the

course of business of any interest in the whole acquired after the goods became accessions; or b. a creditor with a security interest in the whole perfected before the lease contract was made to the extent that the creditor makes subsequent advances without knowledge of thelease contract. 5. When under subsections 2 or 3 and 4 a lessor or a lessee of accessions holds an interest that is superior to all interests in the whole, the lessor or the lessee may on default,expiration, termination, or cancellation of the lease contract by the other party but subject tothe provisions of the lease contract and this Article, or if necessary to enforce the lessor’s orlessee’s other rights and remedies under this Article, remove the goods from the whole, freeand clear of all interests in the whole, but the lessor or lessee must reimburse any holder ofan interest in the whole who is not the lessee and who has not otherwise agreed for the costof repair of any physical injury but not for any diminution in value of the whole caused bythe absence of the goods removed or by any necessity for replacing them.

as not otherwise agreed for the costof repair of any physical injury but not for any diminution in value of the whole caused bythe absence of the goods removed or by any necessity for replacing them. A person entitledto reimbursement may refuse permission to remove until the party seeking removal givesadequate security for the performance of this obligation. 94 Acts, ch 1052, §44; 2013 Acts, ch 30, §261Referred to in §554.13103 Sat Dec 23 11:03:19 2023 Iowa Code 2024, Section 554.13310 (27, 0)