§ 554.9203

554.9203 Attachment and enforceability of security interest — proceeds — supporting obligations — formal requisites. 1. Attachment. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postponesthe time of attachment. 2. Enforceability. Except as otherwise provided in subsections 3 through 10, a security interest is enforceable against the debtor and third parties with respect to the collateral onlyif: a. value has been given;b. the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and c. one of the following conditions is met:(1) the debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the landconcerned; (2) the collateral is not a certificated security and is in the possession of the secured party under section 554.9313 pursuant to the debtor’s security agreement; (3) the collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under section 554.8301

rsuant to the debtor’s security agreement; (3) the collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under section 554.8301 pursuant to the debtor’s securityagreement; or (4) the collateral is controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic chattel paper, electronic documents,electronic money, investment property, or letter-of-credit rights, and the secured party hascontrol under section 554.7106, 554.9104, 554.9105, 554.9105A, 554.9106, 554.9107, or554.9107A pursuant to the debtor’s security agreement. 3. Other UCC provisions. Subsection 2 is subject to section 554.4210 on the security interest of a collecting bank, section 554.5118 on the security interest of a letter-of-creditissuer or nominated person, section 554.9110 on a security interest arising under Article 2 or13, and section 554.9206 on security interests in investment property. 4. When person becomes bound by another person’s security agreement. A person becomes bound as debtor by a security agreement entered into by another person if, byoperation of law other than this

ty. 4. When person becomes bound by another person’s security agreement. A person becomes bound as debtor by a security agreement entered into by another person if, byoperation of law other than this Article or by contract: a. the security agreement becomes effective to create a security interest in the person’s property; or b. the person becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds toall or substantially all of the assets of the other person. 5. Effect of new debtor becoming bound. If a new debtor becomes bound as debtor by a security agreement entered into by another person: a. the agreement satisfies subsection 2, paragraph 'c', with respect to existing or after-acquired property of the new debtor to the extent the property is described in theagreement; and b. another agreement is not necessary to make a security interest in the property enforceable. 6. Proceeds and supporting obligations. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by section 554.9315 and isalso attachment of a security interest in a

pporting obligations. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by section 554.9315 and isalso attachment of a security interest in a supporting obligation for the collateral. 7. Lien securing right to payment. The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or realproperty is also attachment of a security interest in the security interest, mortgage, or otherlien. 8. Security entitlement carried in securities account. The attachment of a security interest in a securities account is also attachment of a security interest in the securityentitlements carried in the securities account. 9. Commodity contracts carried in commodity account. The attachment of a security Sat Dec 23 02:02:00 2023 Iowa Code 2024, Section 554.9203 (28, 0) §554.9203, UNIFORM COMMERCIAL CODE 2 interest in a commodity account is also attachment of a security interest in the commoditycontracts carried in the commodity account. 10. Controllable account or controllable payment intangible.

DE 2 interest in a commodity account is also attachment of a security interest in the commoditycontracts carried in the commodity account. 10. Controllable account or controllable payment intangible. The attachment of a security interest in a controllable electronic record that evidences a controllable account orcontrollable payment intangible is also attachment of a security interest in the controllableaccount or controllable payment intangible. 2000 Acts, ch 1149, §13, 185, 187; 2007 Acts, ch 30, §45, 46, 66; 2022 Acts, ch 1117, §18, 19Referred to in §554.4210, 554.5118, 554.9102, 554.9109, 554.9110, 554.9306A, 554.9316, 554.9317, 554.9508Sufficiency of description, see §554.9108Effectiveness of financing statement if new debtor bound, see §554.9508 Sat Dec 23 02:02:00 2023 Iowa Code 2024, Section 554.9203 (28, 0)