Iowa Code § 554.5118 (2026)

1. An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.

2. So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection 1, the security interest continues and is subject to Article 9, but:

a. a security agreement is not necessary to make the security interest enforceable under section 554.9203, subsection 2, paragraph “c”;

b. if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and

c. if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument, or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document. 2000 Acts, ch 1149, §147, 187 Referred to in §554.9102, 554.9109, 554.9203, 554.9309, 554.9322\n\nTue Dec 09 22:02:41 2025 Iowa Code 2026, Chapter 554 (108, 4) 107 UNIFORM COMMERCIAL CODE, §554.7102\n\n ARTICLE 6 BULK TRANSFERS\n\n ARTICLE 7 DOCUMENTS OF TITLE Referred to in §203C.19, 427B.1, 554.2403, 554.5110, 554.9331, 554D.118, 578A.2, 809A.16 \n 2007 amendments to this Article apply to a document of title issued or a bailment that arises on or after July 1, 2007; for law governing a document of title issued, a bailment that arose, or a cause of action that accrued prior to July 1, 2007, see Code 2007; 2007 Acts, ch 30, §45, 46\n\n PART 1 GENERAL \n