SB358: Bill Text

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB358, s. 1 Section 1. 401.201 (20) of the statutes is amended to read:

SB358,6,8 401.201 (20) "Holder", with respect to a negotiable instrument, means a the person who is in possession of a document of title or an instrument or a certificated investment security drawn, issued or endorsed to him or her or to his or her order or to bearer or in blank if the instrument is payable to bearer or, in the case of an instrument payable to an identified person, if the identified person is in possession. "Holder", with respect to a document of title, means the person in possession if the goods are deliverable to bearer or to the order of the person in possession.

SB358, s. 2 Section 2. 401.201 (24) of the statutes is amended to read:

SB358,6,13 401.201 (24) "Money" means a medium of exchange authorized or adopted by a domestic or foreign government as a part of its currency and includes a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more nations.

SB358, s. 3 Section 3. 401.201 (43) of the statutes is amended to read:

SB358,6,16 401.201 (43) "Unauthorized" signature or indorsement means one made without actual, implied or apparent authority and includes a forgery.

SB358, s. 4 Section 4. 401.201 (44) (intro.) of the statutes is amended to read:

SB358,7,3 401.201 (44) (intro.) "Value". Except as otherwise provided with respect to negotiable instruments and bank collections (ss. 403.303, 404.208 and 404.209 404.210 and 404.211) a person gives "value" for rights if the person acquires them:

SB358, s. 5 Section 5. 401.207 of the statutes is renumbered 401.207 (1) and amended to read:

SB358,7,9 401.207 (1) A party who, with explicit reservation of rights, performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as "without prejudice", "under protest" or the like are sufficient.

SB358, s. 6 Section 6. 401.207 (2) of the statutes is created to read:

SB358,7,11 401.207 (2) Subsection (1) does not apply to an accord and satisfaction.

SB358, s. 7 Section 7. 402.103 (3) (e) of the statutes is amended to read:

SB358,7,13 402.103 (3) (e) "Dishonor" — s. 403.507 403.502.

SB358, s. 8 Section 8. 402.511 (3) of the statutes is amended to read:

SB358,7,17 402.511 (3) Subject to s. 403.802 403.310 on the effect of an instrument on an obligation, payment by check is conditional and is defeated as between the parties by dishonor of the check on due presentment.

SB358, s. 9 Section 9. Chapter 403 of the statutes is repealed and recreated to read:

SB358,7,21 Chapter 403 UNIFORM COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS

SB358,7,24 SUBCHAPTER I GENERAL PROVISIONS AND DEFINITIONS

SB358,8,3 403.102 Subject matter. (1) This chapter applies to negotiable instruments. It does not apply to money, to payment orders governed by ch. 410 or to securities governed by ch. 408.

SB358,8,5 (2) If there is a conflict between this chapter and ch. 404 or 409, chs. 404 and 409 govern.

SB358,8,8 (3) Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.

SB358,8,9 403.103 Definitions. (1) In this chapter:

SB358,8,10 (a) "Acceptor" means a drawee who has accepted a draft.

SB358,8,11 (b) "Drawee" means a person ordered in a draft to make payment.

SB358,8,13 (c) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.

SB358,8,15 (d) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

SB358,8,17 (e) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.

SB358,8,22 (f) "Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.

SB358,9,5 (g) "Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this chapter or ch. 404.

SB358,9,6 (h) "Party" means a party to an instrument.

SB358,9,9 (i) "Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.

SB358,9,11 (j) "Prove" with respect to a fact means to meet the burden of establishing a fact, as defined in s. 401.201 (8).

SB358,9,13 (k) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.

SB358,9,15 (2) Other definitions applying to this chapter and the sections in which they appear are:

SB358,9,16 (ae) "Acceptance" — s. 403.409 (1).

SB358,9,17 (am) "Accommodated party" — s. 403.419 (1).

SB358,9,18 (as) "Accommodation party" — s. 403.419 (1).

SB358,9,19 (b) "Alteration" — s. 403.407 (1).

SB358,9,20 (c) "Anomalous endorsement" — s. 403.205 (4).

SB358,9,21 (d) "Blank endorsement" — s. 403.205 (2).

SB358,9,22 (e) "Cashier's check" — s. 403.104 (7).

SB358,9,23 (fg) "Certificate of deposit" — s. 403.104 (10).

SB358,9,24 (fr) "Certified check" — s. 403.409 (4).

SB358,9,25 (g) "Check" — s. 403.104 (6).

SB358,10,1 (h) "Consideration" — s. 403.303 (2).

SB358,10,2 (i) "Draft" — s. 403.104 (5).

SB358,10,3 (jg) "Endorsement" — s. 403.204 (1).

SB358,10,4 (jr) "Endorser" — s. 403.204 (2).

SB358,10,5 (k) "Holder in due course" — s. 403.302 (1).

SB358,10,6 (L) "Incomplete instrument" — s. 403.115 (1).

SB358,10,7 (m) "Instrument" — s. 403.104 (2).

SB358,10,8 (ng) "Issue" — s. 403.105 (1).

SB358,10,9 (nr) "Issuer" — s. 403.105 (3).

SB358,10,10 (og) "Negotiable instrument" — s. 403.104 (1).

SB358,10,11 (or) "Negotiation" — s. 403.201 (1).

SB358,10,12 (p) "Note" — s. 403.104 (5).

SB358,10,13 (qd) "Payable at a definite time" — s. 403.108 (2).

SB358,10,14 (qh) "Payable on demand" — s. 403.108 (1).

SB358,10,15 (qp) "Payable to bearer" — s. 403.109 (1).

SB358,10,16 (qt) "Payable to order" — s. 403.109 (2).

SB358,10,17 (r) "Payment" — s. 403.602 (1).

SB358,10,18 (s) "Person entitled to enforce" — s. 403.301.

SB358,10,19 (t) "Presentment" — s. 403.501 (1).

SB358,10,20 (u) "Reacquisition" — s. 403.207.

SB358,10,21 (v) "Special endorsement" — s. 403.205 (1).

SB358,10,22 (w) "Teller's check" — s. 403.104 (8).

SB358,10,23 (xg) "Transfer of instrument" — s. 403.203 (1).

SB358,10,24 (xr) "Traveler's check" — s. 403.104 (9).

SB358,10,25 (y) "Value" — s. 403.303 (1).

SB358,11,1 (3) The following definitions in other chapters apply to this chapter:

SB358,11,2 (a) "Bank" — s. 404.105 (1).

SB358,11,3 (b) "Banking day" — s. 404.104 (1) (c).

SB358,11,4 (c) "Clearinghouse" — s. 404.104 (1) (d).

SB358,11,5 (d) "Collecting bank" — s. 404.105 (2).

SB358,11,6 (e) "Depositary bank" — s. 404.105 (3).

SB358,11,7 (f) "Documentary draft" — s. 404.104 (1) (f).

SB358,11,8 (g) "Intermediary bank" — s. 404.105 (4).

SB358,11,9 (h) "Item" — s. 404.104 (1) (i).

SB358,11,10 (i) "Payer bank" — s. 404.105 (5).

SB358,11,11 (j) "Suspends payments" — s. 404.104 (1) (L).

SB358,11,13 (4) In addition, ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

SB358,11,17 403.104 Negotiable instrument. (1) Except as provided in subs. (3) and (4), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if all of the following apply:

SB358,11,19 (a) It is payable to bearer or to order at the time that it is issued or first comes into possession of a holder.

SB358,11,20 (b) It is payable on demand or at a definite time.

SB358,11,23 (c) It does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain any of the following:

SB358,11,25 1. An undertaking or power to give, maintain or protect collateral to secure payment.

SB358,12,2 2. An authorization or power to the holder to confess judgment or realize on or dispose of collateral.