1. In an action to foreclose a real estate mortgage, if a receiver is appointed to take charge of the real estate, preference shall be given to the owner or person in actual possession, subject to approval of the court, in leasing the mortgaged premises. If the real estate is agricultural land used for farming, as defined in section 9H.1, the owner or person in actual possession shall be appointed as receiver without bond, provided that all parties agree to the appointment. The rents, profits, avails, and income derived from the real estate shall be applied as follows: a. To the cost of receivership. b. To the payment of taxes due or becoming due during said receivership. c. To pay the insurance on buildings on the premises or such other benefits to the real estate, or both, as may be ordered by the court.
d. The balance shall be paid and distributed as determined by the court.
2. If the owner or person in actual possession of agricultural land as defined in section 9H.1 is not afforded a right of first refusal in leasing the mortgaged premises by the receiver, the owner or person in actual possession has a cause of action against the receiver to recover either actual damages or a one thousand dollar penalty, and costs, including reasonable attorney fees. The receiver shall deliver notice of an offer made to the receiver to the owner or person in actual possession or the attorney of the owner or person in actual possession, which contains the terms of the offer and the name and address of the person making the offer. The delivery shall be made personally with receipt returned or by certified or registered mail, with the proper postage on the envelope, addressed to the owner or person in actual possession or the attorney of the owner or person in actual possession. An offer shall be deemed to have been refused if the owner or person in actual possession or the attorney of the owner or person in actual possession does not respond within ten days following the date that the notice is mailed. [C35, §12383-e2; C39, §12383.2; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §654.14] 86 Acts, ch 1214, §13; 87 Acts, ch 142, §3; 2013 Acts, ch 90, §181; 2015 Acts, ch 30, §189 \n
Notes of Decisions
Fed. Land Bank of Omaha v. Heeren, 398 N.W.2d 839 (Iowa 1987).
· cites it 38× “Defendants Harold and Mary Heeren appeal from district court approval of a receiver’s lease of their foreclosed real property to third parties when Heerens were not given the opportunity to lease the land under the same arrangement pursuant to Iowa Code section 654.14 (1985).…”
Farmers Sav. Bank, Joice v. Gerhart, 372 N.W.2d 238 (Iowa 1985).
· cites it 6× “Although the foreclosure action did not address the rights to insurance proceeds, a receiver was appointed to collect the “insurance from premises” and apply that amount “as per section 654.14 of the Code.” 1 At the time the foreclosure judgment and decree was entered, the…”
Fed. Land Bank of Omaha v. Bollin, 408 N.W.2d 56 (Iowa 1987).
· cites it 5× “See Iowa Code § 654.14 . The district court never ruled on the Bollins’ application to set aside the farm lease.”
Fed. Land Bank of Omaha v. Haworth, 414 N.W.2d 650 (Iowa Ct. App. 1987).
· cites it 4× “2d 839 (Iowa 1987), the Iowa Supreme Court was presented the question of whether a receiver had substantially complied with the provision of Iowa Code section 654.14 (1985), requiring a lease preference to the debtor.”
Am. Nat'l Ins. v. Smith, 197 F. Supp. 479 (N.D. Iowa 1961).
· cites it 34× “*484 The controversy between the defendants, United States of America and The Waterloo Savings Bank, is centered around the provisions of what now appears as Section 654.14 of Chapter 654, Code of Iowa 1958, I.”
Cmty. State Bank, Paton v. Cottington, 444 N.W.2d 484 (Iowa 1989).
· cites it 2× “See Iowa Code § 654.14 . We find it neither unreasonable nor arbitrary for the court to have implied from these provisions a relinquishment by the Cottingtons of any further possessory interest in the property.”
In Re Offerman Farms, Inc., 67 B.R. 279 (Bankr. D. Iowa 1986).
· cites it 2× “If Land Bank were to foreclose on the Debtor’s mortgage, and the state district court were to appoint a receiver to take possession of the property, Iowa Code § 654.14 would govern the income derived from the property.”
Presidential Realty Corp. v. Bridgewood Realty Investors, 498 N.W.2d 694 (Iowa 1993).
· cites it 2× “Iowa Code section 654.14 provides, in part, that a receiver appointed to take charge of real estate in an action to foreclose a real estate mortgage shall apply the rents and profits derived from the real estate to “the payment of taxes due or *697 becoming due during said…”
Firstar Bank Ames v. Poston, 551 N.W.2d 340 (Iowa Ct. App. 1996).
· cites it 2× “See Iowa Code § 654.14 (4) (1993). The subsequent satisfaction of the judgment against the mortgagors by the sale of the motel does not eliminate their property interest in the rents and profits collected by the receiver.”
Primebank Inc. v. TeGrootenhuis (Iowa Ct. App. 2022).
· cites it 2× “Then, if there is a deficiency, the court can require the receiver to account for his activities, including Iowa Code section 654.14(1), and payment of rents, profits, and other proceeds of collateral securing the note.”
Holliday v. Debruce Grain, Inc., 650 F. Supp. 2d 877 (S.D. Iowa 2009).
“Indeed, Iowa courts have narrowly construed similar mortgage provisions, holding that where a mortgage provides for the appointment of a receiver to apply rents and profits to the mortgage debt, a receiver will be appointed only in the event of a deficiency, and, ordinarily, the…”
— Iowa Code § 654.14(1) — 1 case
Primebank Inc. v. TeGrootenhuis (Iowa Ct. App. 2022).
“Then, if there is a deficiency, the court can require the receiver to account for his activities, including Iowa Code section 654.14(1), and payment of rents, profits, and other proceeds of collateral securing the note.”
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