Under each of the following circumstances only, the department shall issue a certificate of title for a transferred vehicle without requiring registration of the vehicle:
Whenever application therefor accompanied by the required fee is made by a finance company licensed under s. 138.09
, a bank organized under the laws of this state, or a national bank located in this state, and the vehicle in question is a used vehicle for which the department had issued a certificate of title to the previous owner or a vehicle previously registered in another jurisdiction or is a mobile home.
Whenever application therefor accompanied by the required fee is made by any other person and the vehicle in question is a vehicle for which the department had issued a certificate of title to the previous owner or is a vehicle previously registered in another jurisdiction or is a mobile home and the department is satisfied that the present owner has not operated or consented to the operation of the vehicle since it was transferred to that owner and that he or she understands that the certificate of title merely is evidence of ownership of the vehicle and does not authorize operation of the vehicle on the highways of this state.
Whenever application therefor accompanied by the required fee is made by a dealer or wholesaler to comply with the requirements of s. 342.16 (1) (d)
Perfection of security interests. 342.19(1)
Unless excepted by s. 342.02
, a security interest in a vehicle of a type for which a certificate of title is required is not valid against creditors of the owner or subsequent transferees or secured parties of the vehicle unless perfected as provided in this chapter.
Except as provided in sub. (2m)
, a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. It is perfected as of the time of its creation if such delivery is completed within 10 days thereafter, and without regard to the limitations expressed in s. 409.301 (2)
; otherwise, as of the time of such delivery.
If a secured party whose name and address is contained on the certificate of title for a vehicle acquires a new or additional security interest in the vehicle, such security interest is perfected at the time of its attachment under s. 409.203
An unperfected security interest is subordinate to the rights of persons described in s. 409.301
The rules of priority stated in s. 409.312
, and the other sections therein referred to, shall, to the extent appropriate, apply to conflicting security interests in a vehicle of a type for which a certificate of title is required, or in a "previously certificated vehicle" as defined in s. 342.281
. A security interest perfected under this section or under ss. 342.284
is a security interest perfected otherwise than by filing for purposes of s. 409.312
The rules stated in ss. 409.501
governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a vehicle by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in vehicles perfected under this chapter.
If a vehicle is subject to a security interest when brought into this state, s. 409.103 (1)
state the rules which apply to determine the validity and perfection of the security interest in this state.
Ch. 342, not ch. 409, governs perfection of security interest in motor vehicles, but creation of interest is governed by ch. 409. Milwaukee Mack Sales v. First Wis. Nat. Bank, 93 W (2d) 589, 287 NW (2d) 708 (1980).
Notification of person who has perfected security interest.
Upon request of a person who has perfected a security interest under s. 342.19
, as shown by the records of the department, in a vehicle titled in this state, whenever the department receives information from another state that the vehicle is being titled in the other state and the information does not show that the security interest has been satisfied, the department shall notify the person. The person shall pay the department a $2 fee for each notification.
History: 1983 a. 155
; 1985 a. 202
Duties on creation of security interest.
If an owner creates a security interest in a vehicle, unless the name and address of the secured party already is contained on the certificate of title for the vehicle:
The owner shall immediately execute, in the space provided therefor on the certificate of title or on a separate form prescribed by the department, an application to name the secured party on the certificate, showing the name and address of the secured party, and cause the certificate, application and the required fee to be delivered to the secured party.
The secured party shall immediately cause the certificate, application and the required fee to be mailed or delivered to the department.
Upon receipt of the certificate of title, application and the required fee, the department shall issue to the owner a new certificate containing the name and address of the new secured party. The department shall deliver to such new secured party and to the register of deeds of the county of the owner's residence, memoranda, in such form as the department prescribes, evidencing the notation of the security interest upon the certificate; and thereafter, upon any assignment, termination or release of the security interest, additional memoranda evidencing such action.
The registers of deeds may record, and maintain a file of, all memoranda received from the department under sub. (3)
. Such recording, however, is not required for perfection, release or assignment of security interests, which shall be effective upon compliance with ss. 342.19 (2)
and 342.22 (1)
Assignment of security interest. 342.21(1)
A secured party may assign, absolutely or otherwise, the party's security interest in the vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as a secured party until the assignee is named as secured party on the certificate.
The assignee may but need not, to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as secured party, upon delivering to the department the certificate and an assignment by the secured party named in the certificate in the form the department prescribes.
Release of security interest. 342.22(1)
Within one month or within 10 days following written demand by the debtor after there is no outstanding obligation and no commitment to make advances, incur obligations or otherwise give value, secured by the security interest in a vehicle under any security agreement between the owner and the secured party, the secured party shall execute and deliver to the owner, as the department prescribes, a release of the security interest in the form and manner prescribed by the department and a notice to the owner stating in no less than 10-point boldface type the owner's obligation under sub. (2)
. If the secured party fails to execute and deliver the release and notice of the owner's obligation as required by this subsection, the secured party is liable to the owner for $25 and for any loss caused to the owner by the failure.
The owner, other than a dealer holding the vehicle for resale, upon receipt of the release and notice of obligation shall promptly cause the certificate and release to be mailed or delivered to the department, which shall release the secured party's rights on the certificate and issue a new certificate.
The department may remove information pertaining to a security interest perfected under s. 342.19
from its computerized records when the following applicable period of time after the original perfection has elapsed unless the security interest is renewed in the same manner as provided in s. 342.19 (2)
for perfection of a security interest:
Removal of information pertaining to a security interest from the records of the department under sub. (3)
does not affect any security agreement between the owner of a vehicle and the holder of security interest in the vehicle.
Secured party's and owner's duties. 342.23(1)
A secured party named in a certificate of title shall, upon written request of the owner or of another secured party named on the certificate, disclose any pertinent information as to the party's security agreement and the indebtedness secured by it.
An owner shall promptly deliver the owner's certificate of title to any secured party who is named on it or who has a security interest in the vehicle described in it under any other applicable prior law of this state, upon receipt of a notice from such secured party that the security interest is to be assigned, extended or perfected.
No secured party may take possession of any certificate of title except as provided in par. (a)
. Any person who violates this paragraph may be required to forfeit not more than $1,000.
Any secured party who fails to disclose information pursuant to sub. (1)
shall be liable for any loss caused to owner thereby.
Any owner who fails to deliver the certificate of title to a secured party requesting it pursuant to sub. (2) (a)
shall be liable to such secured party for any loss caused to the secured party thereby and may be required to forfeit not more than $200.
Method of perfecting exclusive.
The method provided in this chapter of perfecting and giving notice of security interests subject to this chapter is exclusive. Security interests subject to this chapter are hereby exempted from the provisions of law which otherwise require or relate to the filing of instruments creating or evidencing security interests.
The motor vehicle law provisions relating to security do not apply to a mobile home once it has become a fixture. George v. Commercial Credit Corp. 440 F (2d) 551.
Suspension or revocation of certificate. 342.25(1)(1)
The department shall suspend or revoke a certificate of title if it finds any of the following:
The certificate of title was fraudulently procured, erroneously issued or prohibited by law.
The vehicle has been scrapped, dismantled or destroyed.
A transfer of title is set aside by a court of record by order or judgment.
The vehicle's odometer has been subjected to tampering and return of the certificate of title to the department is considered necessary to make a notation of that information on the certificate.
Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
When the department suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the department.
The department may seize and impound any certificate of title which has been suspended or revoked.
Cancellation of title or registration.
The department shall cancel a title or registration whenever:
A transfer of title is set aside by the court by order or judgment; or
Fraud on the department is discovered by the department; or
It is subsequently discovered that the issuance or possession of a title or registration is prohibited by law or that the odometer of a vehicle for which a certificate of title has been issued by the department has been subjected to tampering and return of the certificate of title to the department is considered necessary to make a notation of that information on the certificate.
Hearings and appeal.
Any person aggrieved by an act or omission of the department under this chapter is entitled, upon request, to a hearing and judicial review thereof in accordance with ch. 227
. Contested cases shall be heard and decided by the division of hearings and appeals.
Previously certificated vehicle.
A previously certificated vehicle is a vehicle for which a certificate of title has been issued by the department prior to June 1, 1966.
History: 1977 c. 29
s. 1654 (7) (a)
Deferred application to previously certificated vehicle. Sections 342.19
shall not apply to a previously certificated vehicle until:
There is a transfer of ownership of the vehicle; or
The department issues a certificate of title of the vehicle under this chapter.
History: 1977 c. 29
s. 1654 (7) (a)
If the department is not satisfied that there are no undisclosed security interests, created before June 1, 1966, in a previously certificated vehicle, it shall, unless the applicant fulfills the requirements of s. 342.12 (3)
, issue a distinctive certificate of title of the vehicle containing the legend "This vehicle may be subject to an undisclosed security interest" and any other information the department prescribes.
History: 1977 c. 29
s. 1654 (7) (a)
New security interest in a previously certificated vehicle.
After June 1, 1966, a security interest in a previously certificated vehicle may be created and perfected only by compliance with ss. 342.19
Unsatisfied security interest in previously certificated vehicle. 342.285(1)
If a security interest in a previously certificated vehicle is perfected under any other applicable law of this state at the time this section takes effect (June 1, 1966), the security interest continues perfected until its perfection lapses under the law under which it was perfected (or would lapse in the absence of a further filing or renewal of filing) and thereafter, if, before such lapse, there is delivered to the department the existing certificate of title together with the application and fee required by s. 342.20 (1)
. In such case the department shall issue a new certificate pursuant to s. 342.20 (3)
If a security interest in a previously certificated vehicle was created, but was unperfected, under any other applicable law of this state at the time this section takes effect (June 1, 1966), it may be perfected under sub. (1)
, but such perfection dates only from the date of the division's receipt of the certificate.
History: 1977 c. 29
s. 1654 (7) (a)
ANTI-THEFT AND ANTI-FRAUD PROVISIONS
Identification numbers. 342.30(1)
No person may remove, alter or obliterate or intentionally make it impossible to read, as required under sub. (2)
, an identification number. This subsection does not apply to the obliteration of an identification number which occurs in the process of crushing a vehicle or vehicle part for scrap.
When the department is satisfied as to the ownership of a vehicle subject to registration which has not been numbered by the manufacturer or on which the original number has been removed, obliterated or altered or on which the original casting has been replaced or on which a new identification number is required under s. 342.06 (1) (f)
, the department shall assign a new identification number for each such vehicle.
An identification number assigned by the department to a mobile home, trailer or semitrailer shall be stamped upon the frame in a readily visible location. An identification number assigned to a motor vehicle manufactured prior to January 1, 1969, shall be permanently affixed to the left front pillar. The vehicle identification number for motor vehicles manufactured after January 1, 1969, shall be permanently affixed upon either a part of the vehicle that is not designed to be removed except for repair, or a separate plate which is permanently affixed to such part. The vehicle identification number shall be located inside the passenger compartment and shall be readable, without moving any part of the vehicle, through the vehicle glazing under daylight lighting conditions by an observer having 20/20 vision (Snellen) whose eyepoint is located outside the vehicle adjacent to the left windshield pillar. Identification numbers assigned for cycles shall be stamped on the left side, near the top of the engine casting just below the cylinder barrel. Such stamping or affixing shall be done under the supervision of a dealer, distributor or manufacturer registered under s. 341.51
or under the supervision of a peace officer. The person supervising the stamping or affixing shall make a report thereof to the department.
A traffic officer or person authorized to enforce nonmoving traffic violations may use reasonable means to gain access to a vehicle if that vehicle's identification number cannot be read as required under sub. (2)
Any person acting under par. (a)
is immune from civil and criminal liability for good faith actions taken within the scope of that person's official duties.
Any person who violates sub. (1)
may be fined not more than $5,000 or imprisoned for not more than 5 years or both.
Any owner of a vehicle for which the department has issued a new identification number who fails to have such number attached or stamped as required by sub. (2)
may be required to forfeit not more than $200.
Any owner of a vehicle for which the department has issued a new identification number who with intent to defraud fails to have such number attached or stamped as required by sub. (2)
may be required to forfeit not more than $1,000.