§ 554.2401

554.2401 Passing of title — reservation for security — limited application of this section. Each provision of this Article with regard to the rights, obligations and remedies of the seller, the buyer, purchasers or other third parties applies irrespective of title to the goodsexcept where the provision refers to such title. Insofar as situations are not covered by theother provisions of this Article and matters concerning title become material the followingrules apply: 1. Title to goods cannot pass under a contract for sale prior to their identification to the contract (section 554.2501), and unless otherwise explicitly agreed the buyer acquires by theiridentification a special property as limited by this chapter. Any retention or reservation bythe seller of the title (property) in goods shipped or delivered to the buyer is limited in effectto a reservation of a security interest. Subject to these provisions and to the provisions of theArticle on Secured Transactions (Article 9), title to goods passes from the seller to the buyerin any manner and on any conditions explicitly agreed on by the parties. 2.

and to the provisions of theArticle on Secured Transactions (Article 9), title to goods passes from the seller to the buyerin any manner and on any conditions explicitly agreed on by the parties. 2. Unless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes the seller’s performance with reference to the physical delivery ofthe goods, despite any reservation of a security interest and even though a document of titleis to be delivered at a different time or place; and in particular and despite any reservation ofa security interest by the bill of lading a. if the contract requires or authorizes the seller to send the goods to the buyer but does not require the seller to deliver them at destination, title passes to the buyer at the time andplace of shipment; but b. if the contract requires delivery at destination, title passes on tender there.3. Unless otherwise explicitly agreed where delivery is to be made without moving the goods, a. if the seller is to deliver a tangible document of title, title passes at the time when and the place where the seller delivers such documents and if the seller is to deliver an electronicdocument

a. if the seller is to deliver a tangible document of title, title passes at the time when and the place where the seller delivers such documents and if the seller is to deliver an electronicdocument of title, title passes when the seller delivers the document; or b. if the goods are at the time of contracting already identified and no documents of title are to be delivered, title passes at the time and place of contracting. 4. A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller. Suchrevesting occurs by operation of law and is not a 'sale'. [C24, 27, 31, 35, 39, §9946 – 9949; C46, 50, 54, 58, 62, §554.18 – 554.21; C66, 71, 73, 75, 77, 79, 81, §554.2401] 2007 Acts, ch 30, §45, 46, 52Referred to in §554.1201, 554.2106, 554.9102, 554.9109, 554.9110, 554.9309 Sat Dec 23 01:49:57 2023 Iowa Code 2024, Section 554.2401 (24, 0)