Iowa Code

Iowa Code § 539.1 (2026)

Assignment of nonnegotiable instruments

✓ current as of July 2026
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Bonds, due bills, and all instruments by which the maker promises to pay another, without words of negotiability, a sum of money, or by which the maker promises to pay a sum of money in property or labor, or to pay or deliver any property or labor, or acknowledges any money, labor, or property to be due, are assignable by endorsement on the instrument, or by other writing. The assignee, including a person who takes assignment for collection in the regular course of business, has a right of action on them in the assignee’s own name, subject to any defense or counterclaim which the maker or debtor had against an assignor of the instrument before notice of the assignment. In case of conflict between this section and section 554.5112, 554.5113, 554.5114, 554.9404, or 554.9405, section 554.5112, 554.5113, 554.5114, 554.9404, or 554.9405 controls. [C51, §949; R60, §1796; C73, §2084; C97, §3044; C24, 27, 31, 35, 39, §9451; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §539.1; 82 Acts, ch 1235, §1] 94 Acts, ch 1167, §4; 96 Acts, ch 1026, §17; 2000 Acts, ch 1149, §172, 187 Related provision, R.C.P. 1.205

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Notes of Decisions
Cited in 9 cases, 1951–2019 · leading case: Iowa Supreme Court Comm'n on Unauthorized Practice of Law v. A-1 Assocs., Ltd., 623 N.W.2d 803 (Iowa 2001).
Iowa Supreme Court Comm'n on Unauthorized Practice of Law v. A-1 Assocs., Ltd., 623 N.W.2d 803 (Iowa 2001). · cites it 24× “1235 (1982) (now codified at Iowa Code §§ 539.1 , 539.3, and 631.14). Section 539.”
Conrad Bros. v. John Deere Ins. Co., 640 N.W.2d 231 (Iowa 2001). · cites it 4× “See Iowa Code § 539.1 (1997) (assignment of nonnegqtiable instruments).”
Red Giant Oil Co. v. Lawlor, 528 N.W.2d 524 (Iowa 1995). · cites it 2× “2d 758, 762 (Iowa 1985); Iowa Code § 539.1 . Choses in action whether for breach of contract or for tort are assignable in this state.”
Briley v. Madrid Improvement Co., 122 N.W.2d 824 (Iowa 1963). · cites it 4× “As to intangible property such as choses in action or debts not represented by negotiable instruments, no pronouncements seem to have been made, and except for the right to assign such indebtedness or obligation under' section 539.”
Kintzel v. Wheatland Mut. Ins. Ass'n, 203 N.W.2d 799 (Iowa 1973). · cites it 2× “860, 862 (1912) is particularly relevant: "The statutory provisions (Code, §§ 3044, 3046) [now §§ 539.1, 539.2, The Code], declaring that all instruments by which the maker promises to pay another, without words of negotiability, a sum of money, are assignable by indorsement…”
First Acceptance Corp. v. Kennedy, 95 F. Supp. 861 (N.D. Iowa 1951). · cites it 4× “” Section 539.1 of Code of Iowa, 1950,1.C.A.”
Dahl v. Zabriskie, 88 N.W.2d 66 (Iowa 1958). “912; sections 539.1 and 539.2, Code, 1954. I. Appellants contend that the option by its terms was personal to Sinclair and not assignable, although it is conceded in argument that immediately after the exercise thereof by Sinclair an assignment of the rights thus acquired would…”
33 Carpenters Constr., Inc. v. The Cincinnati Ins. Co. (Iowa Ct. App. 2019). · cites it 2× “” Iowa Code § 539.1 . If valid, as assignee, 33 Carpenters steps into Whigham’s shoes and all of Whigham’s rights to the insurance proceeds resulting from the March storm vest in 33 Carpenters.”
Avnet, Inc. v. Catalyst Resource Grp., LLC, 791 F.3d 899 (8th Cir. 2015). “Iowa Code § 539.1 . This statute appears to govern the circumstances involved in this case, but its applicability was not addressed by the parties in the district court or on appeal.”
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