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(tm) "Termination statement" means an amendment of a financing statement
15which:
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1. Identifies, by its file number, the initial financing statement to which it
17relates; and
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2. Indicates either that it is a termination statement or that the identified
19financing statement is no longer effective.
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(ts) "Transmitting utility" means a person primarily engaged in the business
21of:
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1. Operating a railroad, subway, street railway, or trolley bus;
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2. Transmitting communications electrically, electromagnetically, or by light;
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3. Transmitting goods by pipeline or sewer; or
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4. Transmitting or producing and transmitting electricity, steam, gas, or water.
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1(2) Definitions in other chapters. The following definitions in other chapters
2apply to this chapter:
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(b) "Broker" — s. 408.102.
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(bm) "Certificated security" — s. 408.102.
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(c) "Check" — s. 403.104.
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(cm) "Clearing corporation" — s. 408.102.
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(d) "Contract for sale" — s. 402.106.
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(dm) "Customer" — s. 404.104.
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(e) "Entitlement holder" — s. 408.102.
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(em) "Financial asset" — s. 408.102.
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(f) "Holder in due course" — s. 403.302.
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(g) "Issuer" (with respect to a security) — s. 408.201.
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(gm) "Lease" — s. 411.103.
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(h) "Lease agreement" — s. 411.103.
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(hm) "Lease contract" — s. 411.103.
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(i) "Leasehold interest" — s. 411.103.
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(im) "Lessee" — s. 411.103.
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(j) "Lessee in ordinary course of business" — s. 411.103.
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(jm) "Lessor" — s. 411.103.
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(k) "Lessor's residual interest" — s. 411.103.
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(L) "Merchant" — s. 402.104.
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(Lm) "Negotiable instrument" — s. 403.104.
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(mm) "Note" — s. 403.104.
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(nm) "Prove" — s. 403.103.
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(o) "Sale" — s. 402.106.
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1(om) "Securities account" — s. 408.501.
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(p) "Securities intermediary" — s. 408.102.
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(pm) "Security" — s. 408.102.
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(q) "Security certificate" — s. 408.102.
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(qm) "Security entitlement" — s. 408.102.
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(r) "Uncertificated security" — s. 408.102.
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7(3) Chapter 401 definitions and principles. Chapter 401 contains general
8definitions and principles of construction and interpretation applicable throughout
9this chapter.
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10409.103 Purchase-money security interest; application of payments;
11burden of establishing. (1) Definitions. In this section:
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(a) "Purchase-money collateral" means goods or software that secures a
13purchase-money obligation incurred with respect to that collateral.
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(b) "Purchase-money obligation" means an obligation of an obligor incurred as
15all or part of the price of the collateral or for value given to enable the debtor to
16acquire rights in or the use of the collateral if the value is in fact so used.
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17(2) Purchase-money security interest in goods. A security interest in goods
18is a purchase-money security interest:
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(a) To the extent that the goods are purchase-money collateral with respect to
20that security interest;
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(b) If the security interest is in inventory that is or was purchase-money
22collateral, also to the extent that the security interest secures a purchase-money
23obligation incurred with respect to other inventory in which the secured party holds
24or held a purchase-money security interest; and
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1(c) Also to the extent that the security interest secures a purchase-money
2obligation incurred with respect to software in which the secured party holds or held
3a purchase-money security interest.
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4(3) Purchase-money security interest in software. A security interest in
5software is a purchase-money security interest to the extent that the security
6interest also secures a purchase-money obligation incurred with respect to goods in
7which the secured party holds or held a purchase-money security interest if:
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(a) The debtor acquired its interest in the software in an integrated transaction
9in which it acquired an interest in the goods; and
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(b) The debtor acquired its interest in the software for the principal purpose
11of using the software in the goods.
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12(4) Consignor's inventory purchase-money security interest. The security
13interest of a consignor in goods that are the subject of a consignment is a
14purchase-money security interest in inventory.
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15(5) Application of payment in nonconsumer-goods transaction. In a
16transaction other than a consumer-goods transaction, if the extent to which a
17security interest is a purchase-money security interest depends on the application
18of a payment to a particular obligation, the payment must be applied:
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(a) In accordance with any reasonable method of application to which the
20parties agree;
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(b) In the absence of the parties' agreement to a reasonable method, in
22accordance with any intention of the obligor manifested at or before the time of
23payment; or
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(c) In the absence of an agreement to a reasonable method and a timely
25manifestation of the obligor's intention, in the following order:
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11. To obligations that are not secured; and
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2. If more than one obligation is secured, to obligations secured by
3purchase-money security interests in the order in which those obligations were
4incurred.
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5(6) No loss of status of purchase-money security interest in
6nonconsumer-goods transaction. In a transaction other than a consumer-goods
7transaction, a purchase-money security interest does not lose its status as such, even
8if:
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(a) The purchase-money collateral also secures an obligation that is not a
10purchase-money obligation;
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(b) Collateral that is not purchase-money collateral also secures the
12purchase-money obligation; or
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(c) The purchase-money obligation has been renewed, refinanced,
14consolidated, or restructured.
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15(7) Burden of proof in nonconsumer-goods transaction. In a transaction
16other than a consumer-goods transaction, a secured party claiming a
17purchase-money security interest has the burden of establishing the extent to which
18the security interest is a purchase-money security interest.
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19(8) Nonconsumer-goods transactions; no inference. The limitation of the
20rules in subs. (5) to (7) to transactions other than consumer-goods transactions is
21intended to leave to the court the determination of the proper rules in
22consumer-goods transactions. The court may not infer from that limitation the
23nature of the proper rule in consumer-goods transactions and may continue to apply
24established approaches.
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1409.1035 Production-money crops; production-money obligation;
2production-money security interest; burden of establishing. (1) A security
3interest in crops is a production-money security interest to the extent that the crops
4are production-money crops.
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5(2) If the extent to which a security interest is a production-money security
6interest depends on the application of a payment to a particular obligation, the
7payment must be applied in the following order until fully applied:
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(a) First, to all production-money obligations secured by production-money
9crops, in the order in which those obligations were incurred;
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(b) Second, to all obligations secured by conflicting security interests in the
11production-money crops referred to in par. (a), in the order in which those obligations
12were incurred; and
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(c) Third, to all unsecured obligations of the debtor making the payment, in the
14order in which those obligations were incurred.
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15(3) A production-money security interest does not lose its status as such, even
16if:
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(a) The production-money crops also secure an obligation that is not a
18production-money obligation;
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(b) Collateral that is not production-money crops also secures the
20production-money obligation; or
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(c) The production-money obligation has been renewed, refinanced, or
22restructured.
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23(4) A secured party claiming a production-money security interest has the
24burden of establishing the extent to which the security interest is a
25production-money security interest.
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1(5) This section does not affect any right to proceeds under s. 409.315.
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2(6) A person may not claim a purchase-money security interest in crops grown,
3growing, or to be grown.
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4409.104 Control of deposit account. (1) Requirements for control. A
5secured party has control of a deposit account if:
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(a) The secured party is the bank with which the deposit account is maintained;
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(b) The debtor, secured party, and bank have agreed in an authenticated record
8that the bank will comply with instructions originated by the secured party directing
9disposition of the funds in the deposit account without further consent by the debtor;
10or
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(c) The secured party becomes the bank's customer with respect to the deposit
12account.
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13(2) Debtor's right to direct disposition. A secured party that has satisfied
14sub. (1) has control, even if the debtor retains the right to direct the disposition of
15funds from the deposit account.
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16409.105 Control of electronic chattel paper. A secured party has control
17of electronic chattel paper if the record or records comprising the chattel paper are
18created, stored, and assigned in such a manner that:
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19(1) A single authoritative copy of the record or records exists which is unique,
20identifiable and, except as otherwise provided in subs. (4) to (6), unalterable;
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21(2) The authoritative copy identifies the secured party as the assignee of the
22record or records;
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23(3) The authoritative copy is communicated to and maintained by the secured
24party or its designated custodian;
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1(4) Copies or revisions that add or change an identified assignee of the
2authoritative copy can be made only with the participation of the secured party;
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3(5) Each copy of the authoritative copy and any copy of a copy is readily
4identifiable as a copy that is not the authoritative copy; and
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5(6) Any revision of the authoritative copy is readily identifiable as an
6authorized or unauthorized revision.
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7409.106 Control of investment property. (1) Control under s. 408.106. A
8person has control of a certificated security, uncertificated security, or security
9entitlement as provided in s. 408.106.
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10(2) Control of commodity contract. A secured party has control of a
11commodity contract if:
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(a) The secured party is the commodity intermediary with which the
13commodity contract is carried; or