{"data":{"id":"us-ia/iowa-code-554.9620","jurisdiction":"us-ia","citation":"Iowa Code § 554.9620","heading":"Acceptance of collateral in full or partial satisfaction of obligation — compulsory disposition of collateral.","body":"1. Except as otherwise provided in subsection 7, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\na. the debtor consents to the acceptance under subsection 3;\nb. the secured party does not receive, within the time set forth in subsection 4, a notification of objection to the proposal signed by:\n(1) a person to which the secured party was required to send a proposal under section 554.9621; or\n(2) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;\nc. if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and\nd. subsection 5 does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to section 554.9624.\n2. A purported or apparent acceptance of collateral under this section is ineffective unless:\na. the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\nb. the conditions of subsection 1 are met.\n3. For purposes of this section:\na. a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and\nb. a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:\n(1) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;\n(2) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(3) does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.\n4. To be effective under subsection 1, paragraph “b”, a notification of objection must be received by the secured party:\na. in the case of a person to which the proposal was sent pursuant to section 554.9621, within twenty days after notification was sent to that person; and\nb. in other cases:\n(1) within twenty days after the last notification was sent pursuant to section 554.9621; or\n(2) if a notification was not sent, before the debtor consents to the acceptance under subsection 3.\n5. A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 554.9610 within the time specified in subsection 6 if:\na. sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\nb. sixty percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.\n6. To comply with subsection 5, the secured party shall dispose of the collateral:\na. within ninety days after taking possession; or\nb. within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n7. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Title XIII - COMMERCE (Ch. 505 - 554I)","Chapter 554 - UNIFORM COMMERCIAL CODE","Article 9 - SECURED TRANSACTIONS","Part 6 - DEFAULT","Subpart A - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST"],"source_url":"https://www.legis.iowa.gov/docs/code/2026/554.9620.pdf","current_through":"Iowa Code 2026 edition","vintage":"","retrieved_at":"2026-09-14T19:40:15Z","sha256":"149918c28dd0ca97c6500db1600e3028e585568f03066a5b7cc2ef0fe2fd5216","source_id":"us-ia","stale":false,"prev":"us-ia/iowa-code-554.9619","next":"us-ia/iowa-code-554.9621"},"notice":"GroundRules: Original legal text. Not legal advice."}