§ 654-2a

654.2A Agricultural land — notice, right to cure default. 1. A creditor shall not initiate an action pursuant to this chapter to foreclose on a deed of trust or mortgage on agricultural land, as defined in section 9H.1, until the creditor hascomplied with this section. 2. A creditor who believes in good faith that a borrower on a deed of trust or mortgage on agricultural land is in default may give the borrower notice of the alleged default, and,if the borrower has a right to cure the default, shall give the borrower the notice of right tocure provided in section 654.2B. The notice is deemed received if sent by certified mail to theborrower. 3. The borrower has a right to cure the default unless the creditor has given the borrower a proper notice of right to cure with respect to two prior defaults on the obligation secured bythe deed of trust or mortgage, or the borrower has voluntarily surrendered possession of theagricultural land and the creditor has accepted it in full satisfaction of any debt owing on theobligation in default. The borrower does not have a right to cure the default if the creditorhas given the borrower a proper notice of right to cure with respect to a prior

on of any debt owing on theobligation in default. The borrower does not have a right to cure the default if the creditorhas given the borrower a proper notice of right to cure with respect to a prior default withintwelve months prior to the alleged default. 4. If the borrower has a right to cure a default:a. A creditor shall not accelerate the maturity of the unpaid balance of the obligation, demand or otherwise take possession of the land, other than by accepting a voluntarysurrender of it, or otherwise attempt to enforce the obligation until forty-five days after aproper notice of right to cure is given. The time period for a request for mediation pursuantto chapter 654A shall run concurrently with the period for the notice to cure under thissection. b. Until the expiration of forty-five days after notice is given, the borrower may cure the default by tendering either the amount of all unpaid installments due at the time of tender,without acceleration, plus a delinquency charge of the scheduled annual interest rate plusfive percent per annum for the period between the giving of the notice of right to cure and thetender, or the amount stated in the notice of right to cure,

e of the scheduled annual interest rate plusfive percent per annum for the period between the giving of the notice of right to cure and thetender, or the amount stated in the notice of right to cure, whichever is less, or by tenderingany performance necessary to cure a default other than nonpayment of amounts due, whichis described in the notice of right to cure. 5. The act of curing a default restores to the borrower the borrower’s rights under the obligation and the deed of trust or mortgage, except as provided in subsection 3. 6. This section does not prohibit a borrower from voluntarily surrendering possession of the agricultural land, and does not prohibit the creditor from enforcing the creditor’s interestin the land at any time after compliance with this section. 86 Acts, ch 1214, §10Referred to in §654.2D, 654.4B, 654A.6Legislative findings; 86 Acts, ch 1214, §1 Sat Dec 23 12:21:49 2023 Iowa Code 2024, Section 654.2A (20, 0)