SB9-SSA1,175,16 14(7) No partial satisfaction in consumer transaction. In a consumer
15transaction, a secured party may not accept collateral in partial satisfaction of the
16obligation it secures.
SB9-SSA1,175,19 17409.621 Notification of proposal to accept collateral. (1) Persons to
18which proposal to be sent.
A secured party that desires to accept collateral in full
19or partial satisfaction of the obligation it secures shall send its proposal to:
SB9-SSA1,175,2220 (a) Any person from which the secured party has received, before the debtor
21consented to the acceptance, an authenticated notification of a claim of an interest
22in the collateral;
SB9-SSA1,175,2523 (b) Any other secured party or lienholder that, 10 days before the debtor
24consented to the acceptance, held a security interest in or other lien on the collateral
25perfected by the filing of a financing statement that:
SB9-SSA1,176,1
11. Identified the collateral;
SB9-SSA1,176,22 2. Was indexed under the debtor's name as of that date; and
SB9-SSA1,176,43 3. Was filed in the office or offices in which to file a financing statement against
4the debtor covering the collateral as of that date; and
SB9-SSA1,176,75 (c) Any other secured party that, 10 days before the debtor consented to the
6acceptance, held a security interest in the collateral perfected by compliance with a
7statute, regulation, or treaty described in s. 409.311 (1).
SB9-SSA1,176,11 8(2) Proposal to be sent to secondary obligor in partial satisfaction. A
9secured party that desires to accept collateral in partial satisfaction of the obligation
10it secures shall send its proposal to any secondary obligor in addition to the persons
11described in sub. (1).
SB9-SSA1,176,14 12409.622 Effect of acceptance of collateral. (1) Effect of acceptance. A
13secured party's acceptance of collateral in full or partial satisfaction of the obligation
14it secures:
SB9-SSA1,176,1515 (a) Discharges the obligation to the extent consented to by the debtor;
SB9-SSA1,176,1616 (b) Transfers to the secured party all of a debtor's rights in the collateral;
SB9-SSA1,176,1817 (c) Discharges the security interest or agricultural lien that is the subject of the
18debtor's consent and any subordinate security interest or other subordinate lien; and
SB9-SSA1,176,1919 (d) Terminates any other subordinate interest.
SB9-SSA1,176,22 20(2) Discharge of subordinate interest notwithstanding noncompliance. A
21subordinate interest is discharged or terminated under sub. (1), even if the secured
22party fails to comply with this chapter.
SB9-SSA1,176,25 23409.623 Right to redeem collateral. (1) Persons that may redeem. A
24debtor, any secondary obligor, or any other secured party or lienholder may redeem
25collateral.
SB9-SSA1,177,1
1(2) Requirements for redemption. To redeem collateral, a person shall tender:
SB9-SSA1,177,22 (a) Fulfillment of all obligations secured by the collateral; and
SB9-SSA1,177,33 (b) The reasonable expenses and attorney fees described in s. 409.615 (1) (a).
SB9-SSA1,177,5 4(3) When redemption may occur. A redemption may occur at any time before
5a secured party:
SB9-SSA1,177,66 (a) Has collected collateral under s. 409.607;
SB9-SSA1,177,87 (b) Has disposed of collateral or entered into a contract for its disposition under
8s. 409.610; or
SB9-SSA1,177,109 (c) Has accepted collateral in full or partial satisfaction of the obligation it
10secures under s. 409.622.
SB9-SSA1,177,14 11409.624 Waiver. (1) Waiver of disposition notification. A debtor or
12secondary obligor may waive the right to notification of disposition of collateral
13under s. 409.611 only by an agreement to that effect entered into and authenticated
14after default.
SB9-SSA1,177,17 15(2) Waiver of mandatory disposition. A debtor may waive the right to require
16disposition of collateral under s. 409.620 (5) only by an agreement to that effect
17entered into and authenticated after default.
SB9-SSA1,177,20 18(3) Waiver of redemption right. Except in a consumer-goods transaction, a
19debtor or secondary obligor may waive the right to redeem collateral under s. 409.623
20only by an agreement to that effect entered into and authenticated after default.
SB9-SSA1,177,25 21409.625 Remedies for secured party's failure to comply with chapter.
22(1)
Judicial orders concerning noncompliance. If it is established that a secured
23party is not proceeding in accordance with this chapter, a court may order or restrain
24collection, enforcement, or disposition of collateral on appropriate terms and
25conditions.
SB9-SSA1,178,4
1(2) Damages for noncompliance. Subject to subs. (3) and (4), a person is liable
2for damages in the amount of any loss caused by a failure to comply with this chapter.
3Loss caused by a failure to comply may include loss resulting from the debtor's
4inability to obtain, or increased costs of, alternative financing.
SB9-SSA1,178,6 5(3) Persons entitled to recover damages; statutory damages in
6consumer-goods transaction.
Except as otherwise provided in s. 409.628:
SB9-SSA1,178,97 (a) A person that, at the time of the failure, was a debtor, was an obligor, or held
8a security interest in or other lien on the collateral may recover damages under sub.
9(2) for its loss; and
SB9-SSA1,178,1410 (b) If the collateral is consumer goods, a person that was a debtor or a secondary
11obligor at the time a secured party failed to comply with this subchapter may recover
12for that failure in any event an amount not less than the credit service charge plus
1310% of the principal amount of the obligation or the time-price differential plus 10%
14of the cash price.
SB9-SSA1,178,20 15(4) Recovery when deficiency eliminated or reduced. A debtor whose
16deficiency is eliminated under s. 409.626 may recover damages for the loss of any
17surplus. However, a debtor or secondary obligor whose deficiency is eliminated or
18reduced under s. 409.626 may not otherwise recover under sub. (2) for noncompliance
19with the provisions of this subchapter relating to collection, enforcement,
20disposition, or acceptance.
SB9-SSA1,178,25 21(7) Limitation of security interest: noncompliance with s. 409.210. If a secured
22party fails to comply with a request regarding a list of collateral or a statement of
23account under s. 409.210, the secured party may claim a security interest only as
24shown in the list or statement included in the request as against a person that is
25reasonably misled by the failure.
SB9-SSA1,179,4
1409.626 Action in which deficiency or surplus is in issue. (1) Applicable
2rules if amount of deficiency or surplus in issue.
In an action arising from a
3transaction, other than a consumer transaction, in which the amount of a deficiency
4or surplus is in issue, the following rules apply:
SB9-SSA1,179,75 (a) A secured party need not prove compliance with the provisions of this
6subchapter relating to collection, enforcement, disposition, or acceptance unless the
7debtor or a secondary obligor places the secured party's compliance in issue.
SB9-SSA1,179,108 (b) If the secured party's compliance is placed in issue, the secured party has
9the burden of establishing that the collection, enforcement, disposition, or
10acceptance was conducted in accordance with this subchapter.
SB9-SSA1,179,1611 (c) Except as otherwise provided in s. 409.628, if a secured party fails to prove
12that the collection, enforcement, disposition, or acceptance was conducted in
13accordance with the provisions of this subchapter relating to collection, enforcement,
14disposition, or acceptance, the liability of a debtor or a secondary obligor for a
15deficiency is limited to an amount by which the sum of the secured obligation,
16expenses, and attorney fees exceeds the greater of:
SB9-SSA1,179,1717 1. The proceeds of the collection, enforcement, disposition, or acceptance; or
SB9-SSA1,179,2018 2. The amount of proceeds that would have been realized had the noncomplying
19secured party proceeded in accordance with the provisions of this subchapter
20relating to collection, enforcement, disposition, or acceptance.
SB9-SSA1,179,2321 (d) For purposes of par. (c) 2., the amount of proceeds that would have been
22realized is equal to the sum of the secured obligation, expenses, and attorney fees
23unless the secured party proves that the amount is less than that sum.
SB9-SSA1,180,324 (e) If a deficiency or surplus is calculated under s. 409.615 (6), the debtor or
25obligor has the burden of establishing that the amount of proceeds of the disposition

1is significantly below the range of prices that a complying disposition to a person
2other than the secured party, a person related to the secured party, or a secondary
3obligor would have brought.
SB9-SSA1,180,8 4(2) Nonconsumer transactions; no inference. The limitation of the rules in
5sub. (1) to transactions other than consumer transactions is intended to leave to the
6court the determination of the proper rules in consumer transactions. The court may
7not infer from that limitation the nature of the proper rule in consumer transactions
8and may continue to apply established approaches.
SB9-SSA1,180,16 9409.627 Determination of whether conduct was commercially
10reasonable. (1)
Greater amount obtainable under other circumstances; no
11preclusion of commercial reasonableness.
The fact that a greater amount could
12have been obtained by a collection, enforcement, disposition, or acceptance at a
13different time or in a different method from that selected by the secured party is not
14of itself sufficient to preclude the secured party from establishing that the collection,
15enforcement, disposition, or acceptance was made in a commercially reasonable
16manner.
SB9-SSA1,180,18 17(2) Dispositions that are commercially reasonable. A disposition of collateral
18is made in a commercially reasonable manner if the disposition is made:
SB9-SSA1,180,1919 (a) In the usual manner on any recognized market;
SB9-SSA1,180,2120 (b) At the price current in any recognized market at the time of the disposition;
21or
SB9-SSA1,180,2322 (c) Otherwise in conformity with reasonable commercial practices among
23dealers in the type of property that was the subject of the disposition.
SB9-SSA1,180,25 24(3) Approval by court or on behalf of creditors. A collection, enforcement,
25disposition, or acceptance is commercially reasonable if it has been approved:
SB9-SSA1,181,1
1(a) In a judicial proceeding;
SB9-SSA1,181,22 (b) By a bona fide creditors' committee;
SB9-SSA1,181,33 (c) By a representative of creditors; or
SB9-SSA1,181,44 (d) By an assignee for the benefit of creditors.
SB9-SSA1,181,8 5(4) Approval under sub. (3) not necessary; absence of approval has no effect.
6Approval under sub. (3) need not be obtained, and lack of approval does not mean
7that the collection, enforcement, disposition, or acceptance is not commercially
8reasonable.
SB9-SSA1,181,13 9409.628 Nonliability and limitation on liability of secured party;
10liability of secondary obligor. (1)
Limitation of liability of secured party for
11noncompliance with chapter.
Unless a secured party knows that a person is a debtor
12or obligor, knows the identity of the person, and knows how to communicate with the
13person:
SB9-SSA1,181,1614 (a) The secured party is not liable to the person, or to a secured party or
15lienholder that has filed a financing statement against the person, for failure to
16comply with this chapter; and
SB9-SSA1,181,1817 (b) The secured party's failure to comply with this chapter does not affect the
18liability of the person for a deficiency.
SB9-SSA1,181,20 19(2) Limitation of liability based on status as secured party. A secured party
20is not liable because of its status as secured party:
SB9-SSA1,181,2121 (a) To a person that is a debtor or obligor, unless the secured party knows:
SB9-SSA1,181,2222 1. That the person is a debtor or obligor;
SB9-SSA1,181,2323 2. The identity of the person; and
SB9-SSA1,181,2424 3. How to communicate with the person; or
SB9-SSA1,182,2
1(b) To a secured party or lienholder that has filed a financing statement against
2a person, unless the secured party knows:
SB9-SSA1,182,33 1. That the person is a debtor; and
SB9-SSA1,182,44 2. The identity of the person.
SB9-SSA1,182,11 5(3) Limitation of liability if reasonable belief that transaction not a
6consumer-goods transaction or consumer transaction.
A secured party is not
7liable to any person, and a person's liability for a deficiency is not affected, because
8of any act or omission arising out of the secured party's reasonable belief that a
9transaction is not a consumer-goods transaction or a consumer transaction or that
10goods are not consumer goods, if the secured party's belief is based on its reasonable
11reliance on:
SB9-SSA1,182,1312 (a) A debtor's representation concerning the purpose for which collateral was
13to be used, acquired, or held; or
SB9-SSA1,182,1514 (b) An obligor's representation concerning the purpose for which a secured
15obligation was incurred.
SB9-SSA1,182,17 16(4) Limitation of liability for statutory damages. A secured party is not liable
17to any person under s. 409.625 (3) (b) for its failure to comply with s. 409.616.
SB9-SSA1,182,20 18(5) Limitation of multiple liability for statutory damages. A secured party
19is not liable under s. 409.625 (3) (b) more than once with respect to any one secured
20obligation.
SB9-SSA1,182,2221 subchapter VII
22TRANSITION
SB9-SSA1,183,2 23409.702 Savings clause. (1) Preeffective-date transactions or liens.
24Except as otherwise provided in this subchapter, 2001 Wisconsin Act .... (this act)
25applies to a transaction or lien within its scope, even if the transaction or lien was

1entered into or created before the effective date of this subsection .... [revisor inserts
2date].
SB9-SSA1,183,4 3(2) Continuing validity. Except as otherwise provided in sub. (3) and ss.
4409.703 to 409.709:
SB9-SSA1,183,115 (a) Transactions and liens that were not governed by ch. 409, 1999 stats., were
6validly entered into or created before the effective date of this paragraph .... [revisor
7inserts date], and would be subject to 2001 Wisconsin Act .... (this act) if they had
8been entered into or created on or after the effective date of this paragraph .... [revisor
9inserts date], and the rights, duties, and interests flowing from those transactions
10and liens remain valid on and after the effective date of this paragraph .... [revisor
11inserts date]; and
SB9-SSA1,183,1412 (b) The transactions and liens may be terminated, completed, consummated,
13and enforced as required or permitted by 2001 Wisconsin Act .... (this act) or by the
14law that otherwise would apply if this paragraph had not taken effect.
SB9-SSA1,183,17 15(3) Preeffective-date proceedings. 2001 Wisconsin Act .... (this act) does not
16affect an action, case, or proceeding commenced before the effective date of this
17subsection .... [revisor inserts date].
SB9-SSA1,183,25 18409.703 Security interest perfected before effective date. (1)
19Continuing priority over lien creditor: perfection requirements satisfied.
A
20security interest that is enforceable immediately before the effective date of this
21subsection .... [revisor inserts date], and would have priority over the rights of a
22person that becomes a lien creditor at that time is a perfected security interest under
232001 Wisconsin Act .... (this act) if, on the effective date of this subsection .... [revisor
24inserts date], the applicable requirements for enforceability and perfection under
252001 Wisconsin Act .... (this act) are satisfied without further action.
SB9-SSA1,184,7
1(2) Continuing priority over lien creditor: perfection requirements not
2satisfied.
Except as otherwise provided in s. 409.705, if, immediately before the
3effective date of this subsection .... [revisor inserts date], a security interest is
4enforceable and would have priority over the rights of a person that becomes a lien
5creditor at that time, but the applicable requirements for enforceability or perfection
6under 2001 Wisconsin Act .... (this act) are not satisfied as of the effective date of this
7subsection .... [revisor inserts date], the security interest:
SB9-SSA1,184,98 (a) Is a perfected security interest until one year after the effective date of this
9paragraph .... [revisor inserts date];
SB9-SSA1,184,1310 (b) Remains enforceable on and after one year after the effective date of this
11paragraph .... [revisor inserts date], only if the security interest becomes enforceable
12under s. 409.203 before one year after the effective date of this paragraph .... [revisor
13inserts date]; and
SB9-SSA1,184,1714 (c) Remains perfected on and after one year after the effective date of this
15paragraph .... [revisor inserts date], only if the applicable requirements for perfection
16under 2001 Wisconsin Act .... (this act) are satisfied before one year after the effective
17date of this paragraph .... [revisor inserts date].
SB9-SSA1,184,21 18409.704 Security interest unperfected before effective date. A security
19interest that is enforceable immediately before the effective date of this section ....
20[revisor inserts date], but which would be subordinate to the rights of a person that
21becomes a lien creditor at that time:
SB9-SSA1,184,23 22(1) Remains an enforceable security interest for one year after the effective
23date of this subsection .... [revisor inserts date];
SB9-SSA1,185,2 24(2) Remains enforceable on and after one year after the effective date of this
25subsection .... [revisor inserts date], if the security interest becomes enforceable

1under s. 409.203 on the effective date of this subsection .... [revisor inserts date], or
2within one year thereafter; and
SB9-SSA1,185,3 3(3) Becomes perfected:
SB9-SSA1,185,64 1. Without further action, on the effective date of this subdivision .... [revisor
5inserts date], if the applicable requirements for perfection under 2001 Wisconsin Act
6.... (this act) are satisfied before or at that time; or
SB9-SSA1,185,87 2. When the applicable requirements for perfection are satisfied if the
8requirements are satisfied after that time.
SB9-SSA1,185,21 9409.705 Effectiveness of action taken before effective date. (1)
10Preeffective-date action; one-year perfection period unless reperfected. If
11action, other than the filing of a financing statement, is taken before the effective
12date of this subsection .... [revisor inserts date], and the action would have resulted
13in priority of a security interest over the rights of a person that becomes a lien
14creditor had the security interest become enforceable before the effective date of this
15subsection .... [revisor inserts date], the action is effective to perfect a security
16interest that attaches under 2001 Wisconsin Act .... (this act) before the effective date
17of this subsection .... [revisor inserts date]. An attached security interest becomes
18unperfected one year after the effective date of this subsection .... [revisor inserts
19date], unless the security interest becomes a perfected security interest under 2001
20Wisconsin Act .... (this act) before one year after the effective date of this subsection
21.... [revisor inserts date].
SB9-SSA1,185,25 22(2) Preeffective-date filing. The filing of a financing statement before the
23effective date of this subsection .... [revisor inserts date], is effective to perfect a
24security interest to the extent that the filing would satisfy the applicable
25requirements for perfection under 2001 Wisconsin Act .... (this act).
SB9-SSA1,186,7
1(3) Preeffective-date filing in jurisdiction formerly governing perfection.
22001 Wisconsin Act .... (this act) does not render ineffective an effective financing
3statement that, before the effective date of this subsection .... [revisor inserts date],
4is filed and satisfies the applicable requirements for perfection under the law of the
5jurisdiction governing perfection as provided in s. 409.103, 1999 stats. However,
6except as otherwise provided in subs. (4) and (5) and s. 409.706, the financing
7statement ceases to be effective at the earlier of:
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