"Issuer" means a bank or other person that issues a letter of credit, but does not include an individual who makes an engagement for personal, family, or household purposes.
"Letter of credit" means a definite undertaking that satisfies the requirements of s. 405.104
by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value.
An assignee for benefit of creditors from the time of assignment;
A trustee in bankruptcy from the date of the filing of the petition; or
"Manufactured-home transaction" means a secured transaction:
In which a manufactured home, other than a manufactured home held as inventory, is the primary collateral.
"Mortgage" means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.
"New debtor" means a person that becomes bound as a debtor under s. 409.203 (4)
by a security agreement previously entered into by another person.
Any other relative, by blood or marriage, of the individual or the individual's spouse who shares the same home with the individual.
"Person related to", with respect to an organization, means:
An officer or director of, or a person performing similar functions with respect to, the organization;
An officer or director of, or a person performing similar functions with respect to, a person described in subd. 1.
Whatever is collected on, or distributed on account of, collateral;
To the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or
"Production-money obligation" means an obligation of an obligor incurred for new value given to enable the debtor to produce crops if the value is in fact used for the production of the crops.
"Proposal" means a record authenticated by a secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to ss. 409.620
, and 409.622
"Public-finance transaction" means a secured transaction in connection with which:
The debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.
"Public organic record" means a record that is available to the public for inspection and is:
An organic record of a business trust consisting of the record initially filed with a state and any record filed with the state which amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or
"Pursuant to commitment", with respect to an advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.
"Secondary obligor" means an obligor to the extent that:
A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
A trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or
"Security agreement" means an agreement that creates or provides for a security interest.
To cause the record or notification to be received within the time that it would have been received if properly sent under subd. 1.
"Termination statement" means an amendment of a financing statement which:
Identifies, by its file number, the initial financing statement to which it relates; and
Indicates either that it is a termination statement or that the identified financing statement is no longer effective.
Transmitting communications electrically, electromagnetically, or by light;
A security interest in all of a trucking company's "equipment" reasonably identified trucks as collateral. Milwaukee Mack Sales v. First Wis. Nat. Bank, 93 Wis. 2d 589
, 287 N.W.2d 708
The above annotated materials cite to the pre-2001 Wis. Act 10
version of ch. 409.
There is a real difference between a claim from which proceeds arise and the proceeds themselves. Public policy does not prohibit the assignment of potential proceeds in a malpractice claim as a payment intangible. Concluding otherwise would contravene the clear meaning of provisions of ch. 409 and could be seen as favoring lawyers against whom legal malpractice claims are filed. Attorney's Title Guaranty Fund, Inc. v. Town Bank, 2014 WI 63
, ___ Wis. 2d ___, ___ N.W.2d ___, 11-2774
Purchase-money security interest; application of payments; burden of establishing. 409.103(1)(b)
"Purchase-money obligation" means an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.
(2) Purchase-money security interest in goods.
A security interest in goods is a purchase-money security interest:
Also to the extent that the security interest secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.
The debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and
(4) Consignor's inventory purchase-money security interest.
The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.
In the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or
In the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:
The purchase-money collateral also secures an obligation that is not a purchase-money obligation;
Collateral that is not purchase-money collateral also secures the purchase-money obligation; or
The purchase-money obligation has been renewed, refinanced, consolidated, or restructured.
(7) Burden of proof in nonconsumer-goods transaction.
In a transaction other than a consumer-goods transaction, a secured party claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest.
History: 2001 a. 10
A security interest in crops is a production-money security interest to the extent that the crops are production-money crops.
If the extent to which a security interest is a production-money security interest depends on the application of a payment to a particular obligation, the payment must be applied in the following order until fully applied:
Second, to all obligations secured by conflicting security interests in the production-money crops referred to in par. (a)
, in the order in which those obligations were incurred; and
Third, to all unsecured obligations of the debtor making the payment, in the order in which those obligations were incurred.
A production-money security interest does not lose its status as such, even if:
The production-money crops also secure an obligation that is not a production-money obligation;
The production-money obligation has been renewed, refinanced, or restructured.
Control of deposit account. 409.104(1)
Requirements for control.
A secured party has control of a deposit account if:
The secured party is the bank with which the deposit account is maintained;
The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor; or
(2) Debtor's right to direct disposition.
A secured party that has satisfied sub. (1)
has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
Control of electronic chattel paper. 409.105(2m)(a)
A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in pars. (d)
Control of investment property. 409.106(1)
Control under s. 408.106.
A person has control of a certificated security, uncertificated security, or security entitlement as provided in s. 408.106