554.2501 Insurable interest in goods — manner of identification of goods. 1. The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identifiedare nonconforming and the buyer has an option to return or reject them. Such identificationcan be made at any time and in any manner explicitly agreed to by the parties. In the absenceof explicit agreement identification occurs a. when the contract is made if it is for the sale of goods already existing and identified;b. if the contract is for the sale of future goods other than those described in paragraph 'c', when goods are shipped, marked or otherwise designated by the seller as goods to whichthe contract refers; c. when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within twelve monthsafter contracting or for the sale of crops to be harvested within twelve months or the nextnormal harvest season after contracting whichever is longer. 2. unborn young to be born within twelve monthsafter contracting or for the sale of crops to be harvested within twelve months or the nextnormal harvest season after contracting whichever is longer. 2. The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in the seller and where the identification is by the seller alone theseller may until default or insolvency or notification to the buyer that the identification isfinal substitute other goods for those identified. 3. Nothing in this section impairs any insurable interest recognized under any other statute or rule of law. [C24, 27, 31, 35, 39, §9946, 9948; C46, 50, 54, 58, 62, §554.18, 554.20; C66, 71, 73, 75, 77, 79, 81, §554.2501] Referred to in §554.2103, 554.2401, 554.2502 Sat Dec 23 01:50:01 2023 Iowa Code 2024, Section 554.2501 (24, 0)
Iowa Legal Code