Iowa Code

Iowa Code § 654.12A (2026)

Priority of advances under mortgages

✓ current as of July 2026

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1. Subject to section 572.18, if a prior recorded mortgage contains the notice prescribed in this section and identifies the maximum credit available to the borrower, then loans and advances made under the mortgage, up to the maximum amount of credit together with interest thereon, are senior to indebtedness to other creditors under subsequently recorded mortgages and other subsequently recorded or filed liens even though the holder of the prior recorded mortgage has actual notice of indebtedness under a subsequently recorded mortgage or other subsequently recorded or filed lien. So long as credit is available to the borrower, payment of the outstanding mortgage balance to zero shall not extinguish the prior recorded mortgage if it contains the notice prescribed by this section. The notice prescribed by this section for the prior recorded mortgage is as follows: NOTICE: This mortgage secures credit in the amount of ......................... Loans and advances up to this amount, together with interest, are senior to indebtedness to other creditors under subsequently recorded or filed mortgages and liens.

2. However, the priority of a prior recorded mortgage under this section does not apply to loans or advances made after receipt of notice of foreclosure or action to enforce a subsequently recorded mortgage or other subsequently recorded or filed lien. 84 Acts, ch 1272, §2; 90 Acts, ch 1001, §1; 2013 Acts, ch 30, §194 Referred to in §535.10 \n

Notes of Decisions

Cited in 6 cases, 1989–2020 · leading case: First State Bank, Belmond v. Kalkwarf, 495 N.W.2d 708 (Iowa 1993).

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First State Bank, Belmond v. Kalkwarf, 495 N.W.2d 708 (Iowa 1993). · cites it 12× “Notice Iowa Code section 654.12A generally provides loans and advances made under a prior recorded mortgage will have priority over subsequently recorded or filed liens.”

Bill Grunder's Sons Constr., Inc. v. Ganzer, 686 N.W.2d 193 (Iowa 2004). · cites it 4× “12A provides, in pertinent part: [I]f a prior recorded mortgage contains the notice prescribed by this section and identifies the maximum credit available to the borrower, then loans and advances made under the mortgage, up to the maximum amount of credit together with interest…”

Nat'l Bank of Waterloo v. Moeller, 434 N.W.2d 887 (Iowa 1989). · cites it 2× “Thus the question is whether the equities favor application or rejection of the common-law rule in a trans *891 action, like the present one, predating the enactment of section 654.12A. The new law, passed in 1984, clearly favors senior mortgagees.”

Blue Grass Sav. Bank v. Cmty. Bank & Trust Co. (Iowa 2020). · cites it 52× “The bank’s mortgage contained specific-dollar-amount language, as required by Iowa Code section 654.12A: NOTICE: THIS MORTGAGE SECURES CREDIT IN THE AMOUNT OF $148,000.”

Norwest Credit, Inc. v. City of Davenport, 626 N.W.2d 153 (Iowa 2001). “§ 654.12A. However, section 403.6 is not listed among those that override the standard recording pecking order.”

Third Fed. Sav. & Loan Ass'n of Cleveland Successor by Merger to Deepgreen Bank v. Randy L. Beltramea, L.L.C., & Randy L. Beltramea A/K/A Randy Lee Beltramea, Karen Spence State of Iowa-Dep't of Revenue & Fin. United States of Am.-Internal Revenue Serv. Carol S. Beltramea, N/K/A Carol S. Dick James L. Cook June E. Cook Est. of James Ray Fisher Joanne Fisher Clarence Dowell Coburn Dorothy Jarman Coburn Discover Bank Alan Fisher Laura Fisher Alan Mahrer Nancy Mahrer James Turbett Shelly A. Beltramea, & Parties in Possession (Iowa Ct. App. 2017). · cites it 2× “The district court held that Third Federal met its 8 The mortgage in question contains the requisite section 654.12A notice. It states: “NOTICE: THIS MORTGAGE SECURES CREDIT IN THE AMOUNT OF $80,000.”

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