§ 554.3106

554.3106 Unconditional promise or order. 1. Except as provided in this section, for the purposes of section 554.3104, subsection 1, a promise or order is unconditional unless it states an express condition to payment, that thepromise or order is subject to or governed by another writing, or that rights or obligationswith respect to the promise or order are stated in another writing. A reference to anotherwriting does not of itself make the promise or order conditional. 2. A promise or order is not made conditional by a reference to another writing for a statement of rights with respect to collateral, prepayment, or acceleration, or becausepayment is limited to resort to a particular fund or source. 3. If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make thepromise or order conditional for the purposes of section 554.3104, subsection 1. If the personwhose specimen signature appears on an instrument fails to countersign the instrument, thefailure to countersign is a defense to the obligation of the issuer, but the failure does notprevent a transferee of the

men signature appears on an instrument fails to countersign the instrument, thefailure to countersign is a defense to the obligation of the issuer, but the failure does notprevent a transferee of the instrument from becoming a holder of the instrument. 4. If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect thatthe rights of a holder or transferee are subject to claims or defenses that the issuer couldassert against the original payee, the promise or order is not thereby made conditional forthe purposes of section 554.3104, subsection 1; but if the promise or order is an instrument,there cannot be a holder in due course of the instrument. 94 Acts, ch 1167, §15, 121, 122; 2013 Acts, ch 30, §261Referred to in §554.3302 Sat Dec 23 01:55:02 2023 Iowa Code 2024, Section 554.3106 (26, 0)