(4) An unperfected security interest is subordinate to the rights of persons described in s. 409.301.
(5) 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 mobile home of a type for which a certificate of title is required, or in a previously certificated mobile home, as defined in s. 101.9222 (1). A security interest perfected under this section or under s. 101.9222 (4) or (5) is a security interest perfected otherwise than by filing for purposes of s. 409.312.
(6) The rules stated in ss. 409.501 to 409.507 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a mobile home 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 mobile homes perfected under ss. 101.9202 to 101.9218.
(7) If a mobile home is subject to a security interest when brought into this state, s. 409.103 (1), (2) and (3) states the rules which apply to determine the validity and perfection of the security interest in this state.
(8) Upon request of a person who has perfected a security interest under this section, as shown by the records of the department, in a mobile home titled in this state, whenever the department receives information from another state that the mobile home 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.
9,1998Lx
Section 1998Lx. 101.9214 of the statutes is created to read:
101.9214 Duties on creation of security interest. If an owner creates a security interest in a mobile home, unless the name and address of the secured party already is contained on the certificate of title for the mobile home:
(1) The owner shall immediately execute, in the space provided therefor on the certificate of title or on a separate form or in an automated format 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.
(2) The secured party shall immediately cause the certificate, the application and the required fee to be mailed or delivered to the department.
(3) Upon receipt of the certificate of title, the 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 the 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.
(4) The register 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. 101.9213 (2), 101.9215 and 101.9216 (1) and (2).
9,1998pc
Section 1998pc. 101.9215 of the statutes is created to read:
101.9215 Assignment of security interest. (1) A secured party may assign, absolutely or otherwise, the party's security interest in the mobile home 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.
(2) 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 that the department prescribes.
9,1998pg
Section 1998pg. 101.9216 of the statutes is created to read:
101.9216 Release of security interest.
(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 mobile home 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.
(2) The owner, other than a mobile home dealer holding the mobile home 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.
(3) The department may remove information pertaining to a security interest perfected under s. 101.9213 from its records when 20 years after the original perfection has elapsed unless the security interest is renewed in the same manner as provided in s. 101.9213 (2) for perfection of a security interest.
(4) 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 mobile home and the holder of security interest in the mobile home.
9,1998pL
Section 1998pL. 101.9217 of the statutes is created to read:
101.9217 Secured party's and owner's duties. (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.
(2) (a) 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 mobile home 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. Any owner who fails to deliver the certificate of title to a secured party requesting it under this paragraph 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.
(b) 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.
(3) Any secured party who fails to disclose information under sub. (1) shall be liable for any loss caused to owner thereby.
9,1998pp
Section 1998pp. 101.9218 of the statutes is created to read:
101.9218 Method of perfecting exclusive. The method provided in ss. 101.921 to 101.9218 of perfecting and giving notice of security interests subject to ss. 101.921 to 101.9218 is exclusive. Security interests subject to ss. 101.921 to 101.9218 are hereby exempted from the provisions of law which otherwise require or relate to the filing of instruments creating or evidencing security interests.
9,1998pt
Section 1998pt. 101.9219 of the statutes is created to read:
101.9219 Withholding certificate of title; bond. (1) The department may not issue a certificate of title until the outstanding evidence of ownership is surrendered to the department.
(2) If the department is not satisfied as to the ownership of the mobile home or that there are no undisclosed security interests in it, the department, subject to sub. (3), shall either:
(a) Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the mobile home and that there are no undisclosed security interests in it; or
(b) Issue a distinctive certificate of title pursuant to s. 101.9206 (3) or 101.9222 (3).
(3) Notwithstanding sub. (2), the department may issue a nondistinctive certificate of title if the applicant fulfills either of the following requirements:
(a) The applicant is a mobile home dealer licensed under s. 101.951 and is financially responsible as substantiated by the last financial statement on file with the department, a finance company licensed under s. 138.09 or 218.01, a bank organized under the laws of this state, or a national bank located in this state.
(b) The applicant has filed with the department a bond in the form prescribed by the department and executed by the applicant, and either accompanied by the deposit of cash with the department or also executed by a person authorized to conduct a surety business in this state. The bond shall be in an amount equal to 1.5 times the value of the mobile home as determined by the department and conditioned to indemnify any prior owner and secured party and any subsequent purchaser of the mobile home or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title of the mobile home or on account of any defect in or undisclosed security interest upon the right, title and interest of the applicant in and to the mobile home. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of 5 years or prior thereto if, apart from this section, a nondistinctive certificate of title could then be issued for the mobile home, or if the currently valid certificate of title for the mobile home is surrendered to the department, unless the department has been notified of the pendency of an action to recover on the bond.
9,1998px
Section 1998px. 101.922 of the statutes is created to read:
101.922 Suspension or revocation of certificate. (1) The department shall suspend or revoke a certificate of title if it finds any of the following:
(a) That the certificate of title was fraudulently procured, erroneously issued or prohibited by law.
(b) That the mobile home has been scrapped, dismantled or destroyed.
(c) That a transfer of title is set aside by a court of record by order or judgment.
(2) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
(3) 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.
(4) The department may seize and impound any certificate of title which has been suspended or revoked.
9,1998tc
Section 1998tc. 101.9221 of the statutes is created to read:
101.9221 Grounds for refusing issuance of certificate of title. The department shall refuse issuance of a certificate of title if any required fee has not been paid or for any of the following reasons:
(1) The department has reasonable grounds to believe that:
(a) The person alleged to be the owner of the mobile is not the owner.
(b) The application contains a false or fraudulent statement.
(2) The applicant has failed to furnish any of the following:
(a) If applicable, the power of attorney required under
15 USC 1988 or rules of the department.
(b) Any other information or documents required by law or by the department pursuant to authority of law.
(3) The applicant is a mobile home dealer and is prohibited from applying for a certificate of title under s. 101.921 (1) (a) or (b).
(4) Except as provided in ss. 101.9203 (3) and 101.921 (1) (a) for a certificate of title and registration for a mobile home owned by a nonresident, the applicant is a nonresident and the issuance of a certificate of title has not otherwise been authorized by rule of the department.
9,1998tg
Section 1998tg. 101.9222 of the statutes is created to read:
101.9222 Previously certificated mobile homes. (1) In this section, "previously certificated mobile home" means a mobile home for which a certificate of title has been issued by the department of transportation prior to July 1, 2000.
(2) Sections 101.9213 to 101.9218 do not apply to a previously certificated mobile home until one of the following occurs:
(a) There is a transfer of ownership of the mobile home.
(b) The department of commerce issues a certificate of title of the mobile home under this chapter.
(3) If the department is not satisfied that there are no undisclosed security interests, created before July 1, 2000, in a previously certificated mobile home, the department shall, unless the applicant fulfills the requirements of s. 101.9219 (3), issue a distinctive certificate of title of the mobile home containing the legend "This mobile home may be subject to an undisclosed security interest" and any other information that the department prescribes.
(4) After July 1, 2000, a security interest in a previously certificated vehicle may be created and perfected only by compliance with ss. 101.9213 and 101.9218.
(5) (a) If a security interest in a previously certificated mobile home is perfected under any other applicable law of this state on July 1, 2000, the security interest continues perfected:
1. Until its perfection lapses under the law under which it was perfected, or until its perfection would lapse in the absence of a further filing or renewal of filing, whichever occurs sooner.
2. If, before the security interest lapses as described in subd. 1., there is delivered to the department the existing certificate of title together with the application and fee required by s. 101.9214 (1). In such case the department shall issue a new certificate pursuant to s. 101.9214 (3).
(b) If a security interest in a previously certificated mobile home was created, but was unperfected, under any other applicable law of this state on July 1, 2000, it may be perfected under par. (a), but such perfection dates only from the date of the department's receipt of the certificate.
9,1998tp
Section 1998tp. 101.94 (8) (a) of the statutes is amended to read:
101.94 (8) (a) A Except as provided in par. (c), a person who violates this subchapter or, a rule promulgated under this subchapter or an order issued under this subchapter shall forfeit not more than $1,000 for each violation. Each violation of this subchapter constitutes a separate violation with respect to each manufactured home or mobile home or with respect to each failure or refusal to allow or perform an act required by this subchapter, except the maximum forfeiture under this subsection may not exceed $1,000,000 for a related series of violations occurring within one year of the first violation.
9,1998tt
Section 1998tt. 101.94 (8) (c) of the statutes is created to read:
101.94 (8) (c) A person who violates s. 101.935, a rule promulgated under s. 101.935 or an order issued under s. 101.935 may be required to forfeit not less than $10 nor more than $250 for each violation. Each day of continued violation constitutes a separate violation.
9,1998tx
Section 1998tx. 101.951 of the statutes is created to read:
101.951 Mobile home dealers regulated.
(1) No person may engage in the business of selling mobile homes to a consumer or to the retail market in this state unless first licensed to do so by the department as provided in this section.
(2) (a) Application for a license or a renewal license shall be made to the department on forms prescribed and furnished by the department, accompanied by the license fee required under par. (c) or (d).
(b) 1. The department shall, by rule, establish the license period under this section.
2. The department may promulgate rules establishing a uniform expiration date for all licenses issued under this section.
(c) Except as provided in par. (d), the fee for a license issued under this section equals $50 multiplied by the number of years in the license period. The fee shall be prorated if the license period is not evenly divisible into years.
(d) If the department issues a license under this section during the license period, the fee for the license shall equal $50 multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this paragraph may not exceed the license fee for the entire license period under par. (c).
(3) The department shall issue a license only to a person whose character, fitness and financial ability, in the opinion of the department, are such as to justify the belief that the person can and will deal with and serve the buying public fairly and honestly, will maintain a permanent office and place of business in this state during the license year and will abide by all of the provisions of law and lawful orders of the department.
(5) A licensee shall conduct the licensed business continuously during the license year.
(6) The department may deny, suspend or revoke a license on any of the following grounds:
(a) Proof of unfitness.
(b) A material misstatement in the application for the license.
(c) Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.
(d) Wilful failure to comply with any provision of this section or any rule promulgated by the department under this section.
(e) Wilfully defrauding any retail buyer to the buyer's damage.
(f) Wilful failure to perform any written agreement with any retail buyer.
(g) Failure or refusal to furnish and keep in force any bond required.
(h) Having made a fraudulent sale, transaction or repossession.
(i) Fraudulent misrepresentation, circumvention or concealment, through any subterfuge or device, of any of the material particulars or the nature thereof required hereunder to be stated or furnished to the retail buyer.
(j) Use of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail instalment contracts and the redemption and resale of such goods.
(k) Having indulged in any unconscionable practice relating to said business.
(m) Having sold a retail instalment contract to a sales finance company, as defined in s. 218.01 (1) (v), that is not licensed under s. 218.01.
