554.9313 When possession by or delivery to secured party perfects security interest without filing. 1. Perfection by possession or delivery. Except as otherwise provided in subsection 2, a secured party may perfect a security interest in tangible negotiable documents, goods,instruments, tangible money, or tangible chattel paper by taking possession of the collateral.A secured party may perfect a security interest in certificated securities by taking delivery ofthe certificated securities under section 554.8301. 2. Goods covered by certificate of title. With respect to goods covered by a certificate of title issued by this state, a secured party may perfect a security interest in the goods by takingpossession of the goods only in the circumstances described in section 554.9316, subsection4. 3. Collateral in possession of person other than debtor. With respect to collateral other than certificated securities and goods covered by a document, a secured party takespossession of collateral in the possession of a person other than the debtor, the securedparty, or a lessee of the collateral from the debtor in the ordinary course of the debtor’sbusiness, when: a. spossession of collateral in the possession of a person other than the debtor, the securedparty, or a lessee of the collateral from the debtor in the ordinary course of the debtor’sbusiness, when: a. the person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured party’s benefit; or b. the person takes possession of the collateral after having authenticated a record acknowledging that it will hold possession of collateral for the secured party’s benefit. 4. Time of perfection by possession — continuation of perfection. If perfection of a security interest depends upon possession of the collateral by a secured party, perfectionoccurs no earlier than the time the secured party takes possession and continues only whilethe secured party retains possession. 5. Time of perfection by delivery — continuation of perfection. A security interest in a certificated security in registered form is perfected by delivery when delivery of thecertificated security occurs under section 554.8301 and remains perfected by delivery untilthe debtor obtains possession of the security certificate. 6. Acknowledgment not required. en delivery of thecertificated security occurs under section 554.8301 and remains perfected by delivery untilthe debtor obtains possession of the security certificate. 6. Acknowledgment not required. A person in possession of collateral is not required to acknowledge that it holds possession for a secured party’s benefit. 7. Effectiveness of acknowledgment — no duties or confirmation. If a person acknowledges that it holds possession for the secured party’s benefit: a. the acknowledgment is effective under subsection 3 or section 554.8301, subsection 1, even if the acknowledgment violates the rights of a debtor; and b. unless the person otherwise agrees or law other than this Article otherwise provides, the person does not owe any duty to the secured party and is not required to confirm theacknowledgment to another person. 8. Secured party’s delivery to person other than debtor. A secured party having possession of collateral does not relinquish possession by delivering the collateral to a personother than the debtor or a lessee of the collateral from the debtor in the ordinary courseof the debtor’s business if the person was instructed before the delivery or is ing the collateral to a personother than the debtor or a lessee of the collateral from the debtor in the ordinary courseof the debtor’s business if the person was instructed before the delivery or is instructedcontemporaneously with the delivery: a. to hold possession of the collateral for the secured party’s benefit; orb. to redeliver the collateral to the secured party.9. Effect of delivery under subsection 8 — no duties or confirmation. A secured party does not relinquish possession, even if a delivery under subsection 8 violates the rights of a debtor.A person to which collateral is delivered under subsection 8 does not owe any duty to thesecured party and is not required to confirm the delivery to another person unless the personotherwise agrees or law other than this Article otherwise provides. 2000 Acts, ch 1149, §33, 185, 187; 2007 Acts, ch 30, §45, 46, 72; 2022 Acts, ch 1117, §28Referred to in §554.9203, 554.9308, 554.9310, 554.9311, 554.9312, 554.9316, 554.9320, 554.9328Rights and duties of secured party having possession or control of collateral, §554.9207, 554.9208 Sat Dec 23 11:01:50 2023 Iowa Code 2024, Section 554.9313 (26, 0)
Iowa Legal Code