LRBs0082/1
PJD:kmg:ch
2001 - 2002 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2001 SENATE BILL 9
May 3, 2001 - Offered by Committee onJudiciary, Consumer Affairs, and
Campaign Finance Reform.
SB9-SSA1,2,14
1An Act to repeal 402.326 (3), 411.303 (3), 411.307 (2) (b) and (c) and 411.307 (4);
2to renumber 402.210 (3), 402.210 (4), 402.210 (5), 402.502 (2) and 411.303 (6),
3(7) and (8);
to renumber and amend 402.502 (1), 408.110 (5) (b), 408.110 (5)
4(c), 408.110 (5) (d), 408.301 (1) (c), 408.510 (3), 411.303 (4) and 411.303 (5);
to
5consolidate, renumber and amend 411.307 (2) (intro.) and (a);
to amend
630.57 (3), 30.57 (5), 30.57 (6), 30.57 (7), 30.57 (8), 30.573 (1), 30.573 (2), 30.576
7(1), 50.05 (15) (f), 51.42 (3) (d) 12. f., 59.43 (1) (L), 59.43 (1) (m), 59.43 (1) (n),
859.43 (1) (o), 59.43 (2) (ag) 2., 59.43 (2) (d), 100.201 (2) (d), 100.201 (2) (e) 1.,
9101.9213 (2), 101.9213 (4), 101.9213 (5), 101.9213 (6), 101.9213 (7), 101.9215
10(1), 101.9215 (2), 101.9218 (1), 101.9222 (5) (b), 109.09 (2) (b) 2., 138.09 (7) (i)
112., 340.01 (56m), 340.01 (56n), 342.19 (2), 342.19 (3), 342.19 (4), 342.19 (5),
12342.19 (6), 342.21 (1), 342.21 (2), 342.24, 344.185 (3) (intro.), 401.201 (9),
13401.201 (32), 401.201 (37) (a), 402.103 (3) (d), 402.326 (title), 402.326 (2),
1402.502 (title), 402.716 (3), 406.102 (1), 406.102 (2), 407.503 (1) (a), 408.103 (6),
2408.106 (4) (a) and (b), 408.106 (6), 408.110 (5) (a), 408.302 (1), 408.510 (1),
3411.103 (3) (a), 411.103 (3) (d), 411.103 (3) (e), 411.103 (3) (f), 411.103 (3) (h),
4411.103 (3) (j), 411.103 (3) (L), 411.103 (3) (m), 411.303 (1) and (2), 411.309 (1)
5(c), 421.301 (21), 422.413 (2r) (intro.), 422.413 (2r) (f), 425.105 (4), 425.203 (3)
6(intro.), 425.204 (2), 425.207 (2), 425.208 (6), 779.48 (2), 779.89, 779.91 (2),
7779.97 (4) (a) 1., 779.97 (4) (b) 1., 779.97 (4) (b) 2., 779.97 (4) (b) 3., 779.97 (4)
8(b) 4., 779.97 (4) (d), 779.97 (4) (e), 815.18 (2) (i), 815.18 (2) (j), 818.02 (4), 893.36
9(3) (b), 893.36 (3) (c), 893.36 (3) (e) and 893.36 (3) (f);
to repeal and recreate
10401.105 (2) (e), chapter 409 and 411.307 (3); and
to create 402.210 (3), 402.502
11(1) (a), 402.502 (2), 405.118, 408.106 (4) (c), 408.110 (5) (b), 408.301 (1) (c) 1. and
122. and 408.510 (3) (a) to (c) of the statutes;
relating to: revising the Uniform
13Commercial Code — Secured Transactions and related statutes, granting
14rule-making authority, and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB9-SSA1, s. 1
15Section
1. 30.57 (3) of the statutes is amended to read:
SB9-SSA1,2,2216
30.57
(3) Except as provided in sub. (4), a security interest is perfected by the
17delivery to the department of the existing certificate of title, if any, an application for
18a certificate of title containing the name and address of the secured party, and the
19required fee. The security interest is perfected as of the
later of the time of its
20creation if delivery to the department is completed within 10 days after its creation
21and without regard to the limitations expressed in s. 409.301 (2); otherwise, as of the
22time of delivery
or the time of the attachment of the security interest.
SB9-SSA1, s. 2
23Section
2. 30.57 (5) of the statutes is amended to read:
SB9-SSA1,3,2
130.57
(5) An unperfected security interest is subordinate to the rights of
2persons described in s.
409.301 409.317.
SB9-SSA1, s. 3
3Section
3. 30.57 (6) of the statutes is amended to read:
SB9-SSA1,3,74
30.57
(6) The rules of priority stated in s.
409.312, and 409.322, the other
5sections referred to in that section,
and subch. III of ch. 409 shall, to the extent
6appropriate, apply to conflicting security interests in a boat of a type for which a
7certificate of title is required.
SB9-SSA1, s. 4
8Section
4. 30.57 (7) of the statutes is amended to read:
SB9-SSA1,3,139
30.57
(7) The rules stated in
ss. 409.501 to 409.507 subch. VI of ch. 409 10governing the rights and duties of secured parties and debtors and the requirements
11for, and effect of, disposition of a boat by a secured party, upon default shall, to the
12extent appropriate, govern the rights of secured parties and owners with respect to
13security interests in boats perfected under this section and ss. 30.572 and 30.573.
SB9-SSA1, s. 5
14Section
5. 30.57 (8) of the statutes is amended to read:
SB9-SSA1,3,1715
30.57
(8) If a boat is subject to a security interest when brought into this state,
16s.
409.103 (1), (2) and (3) state 409.316 states the rules which determine the validity
17and perfection of the security interest in this state.
SB9-SSA1, s. 6
18Section
6. 30.573 (1) of the statutes is amended to read:
SB9-SSA1,3,2519
30.573
(1) A Except as otherwise provided in s. 409.308 (5), a secured party
20may assign, absolutely or otherwise, the secured party's security interest in a boat
21to a person other than the owner without affecting the interest of the owner or the
22validity of the security interest, but any person without notice of the assignment is
23protected in dealing with the secured party as the holder of the security interest and
24the secured party remains liable for any obligations as a secured party until the
25assignee is named as secured party on the certificate of title.
SB9-SSA1, s. 7
1Section
7. 30.573 (2) of the statutes is amended to read:
SB9-SSA1,4,62
30.573
(2) To Subject to s. 409.308 (5), to perfect an assignment, the assignee
3may deliver to the department the certificate of title, the fee required under s. 30.537
4(4) (f) and an assignment by the secured party named in the certificate in the form
5the department prescribes. Upon receipt, the department shall name the assignee
6as a secured party on the certificate and issue a new certificate.
SB9-SSA1, s. 8
7Section
8. 30.576 (1) of the statutes is amended to read:
SB9-SSA1,4,128
30.576
(1) Except as provided in sub. (2)
and subject to s. 409.311 (4), the
9method provided in ss. 30.57 to 30.575 of perfecting and giving notice of security
10interests subject to those sections is exclusive. Security interests subject to ss. 30.57
11to 30.575 are exempt from the provisions of law that otherwise require or relate to
12the filing of instruments creating or evidencing security interests.
SB9-SSA1, s. 9
13Section
9. 50.05 (15) (f) of the statutes is amended to read:
SB9-SSA1,5,614
50.05
(15) (f) The receiver shall, within 60 days after termination of the
15receivership, file a notice of any lien created under this subsection. No action on a
16lien created under this subsection may be brought more than 2 years after the date
17of filing. If the lien is on real property, the notice shall be filed with the clerk of circuit
18court of the county in which the facility is located and entered on the judgment and
19lien docket kept under s. 779.07. If the lien is on personal property,
notice of the lien
20shall be filed
with the department of financial institutions in the same manner, form,
21and place as financing statements are filed under subch. V of ch. 409 regarding
22debtors who are located in this state. The department of financial institutions shall
23place file the notice of the lien
on personal property in the same file as financing
24statements are filed under
ss. 409.401 and 409.402
subch. V of ch. 409. The notice
25shall specify the name of the person against whom the lien is claimed, the name of
1the receiver, the dates of the petition for receivership and the termination of
2receivership, a description of the property involved and the amount claimed. No lien
3shall exist under this section against any person, on any property, or for any amount
4not specified in the notice filed under this paragraph. To the extent applicable, ch.
5846 controls the foreclosure of liens under this subsection that attach to real
6property.
SB9-SSA1, s. 10
7Section
10. 51.42 (3) (d) 12. f. of the statutes is amended to read:
SB9-SSA1,6,28
51.42
(3) (d) 12. f. The receiver shall, within 60 days after termination of the
9receivership, file a notice of any lien created under this subdivision. No action on a
10lien created under this subdivision may be brought more than 2 years after the date
11of filing. If the lien is on real property, the notice shall be filed with the clerk of circuit
12court for the county in which the county department of community programs or
13related program is located and entered on the judgment and lien
docket kept under
14s. 779.07. If the lien is on personal property,
notice of the lien shall be filed
with the
15department of financial institutions in the same manner, form, and place as
16financing statements are filed under subch. V of ch. 409 regarding debtors who are
17located in this state. The department of financial institutions shall
place file the
18notice of the lien
on personal property in the same file as financing statements are
19filed under
ss. 409.401 and 409.402 subch. V of ch. 409. The notice shall specify the
20name of the county department of community programs or related program against
21which the lien is claimed, the name of the receiver, the dates of the petition for
22receivership and the termination of receivership, a description of the property
23involved and the amount claimed. No lien may exist under this subdivision against
24any person, on any property or for any amount not specified in the notice filed under
1this subd. 12. f. To the extent applicable, ch. 846 controls the foreclosure of liens
2under this subdivision that attach to real property.
SB9-SSA1, s. 11
3Section
11. 59.43 (1) (L) of the statutes is amended to read:
SB9-SSA1,6,214
59.43
(1) (L) File all documents pertaining to security interests
in personal
5property, crops or fixtures, as defined in s. 401.201 (37) (a), that are required or
6authorized by law to be filed with the register. Except as otherwise prescribed by the
7department of financial institutions under
ss. 409.403 to 409.406 subch. V of ch. 409,
8these documents shall be executed on white or light colored sheets of paper, 8 or 8.5
9inches wide and 5, 7, 10.5
, or 14 inches long. Whenever there is offered for filing any
10document that varies more than one-eighth
of an inch from the approved size, or that
11is not on a standard form prescribed by
ch. 409 or by the department of financial
12institutions, then in addition to the regular filing fee an additional filing fee shall be
13charged by the register of deeds, as prescribed by sub. (2). No assignment, release
, 14or other instrument shall be offered for filing that is executed or endorsed on any
15other document, but each shall be a separate and distinct document, except those
16assignments or notices that are printed or written on and immediately following the
17original agreement or financing statement, offered for filing at the same time, shall
18be considered as one document. All of these documents shall be legibly written, and
19shall have the names of the debtor and secured party plainly printed or typed on the
20document and shall provide a space for filing data of the register of deeds on the
21outside of the document.
SB9-SSA1, s. 12
22Section
12. 59.43 (1) (m) of the statutes is amended to read:
SB9-SSA1,7,223
59.43
(1) (m)
Keep Except as otherwise provided in subchs. V and VII of ch. 409,
24keep these chattel documents in consecutive numerical arrangement, for the
1inspection of all persons, endorsing on each document the document number and the
2date and time of reception.
SB9-SSA1, s. 13
3Section
13. 59.43 (1) (n) of the statutes is amended to read:
SB9-SSA1,7,164
59.43
(1) (n) Upon the filing of a financing statement or other document
5evidencing the creation of a security interest
in personal property or fixtures or in
6crops growing or to be grown, as defined in s. 401.201 (37) (a), required to be filed or
7recorded with the register under s. 409.501 (1) (a), enter the name of each debtor
8alphabetically in indices, of which each page shall be divided into columns which
9shall contain the following information: number of the document, date and time of
10filing, name and address of debtor, name and address of secured party, name of the
11document, the amount if any, shown in the document, brief description of property,
12and the last column set aside for the entry of assignments, continuation statements,
13termination statements, foreclosure affidavits, extensions and releases pertaining
14to such financing statements or chattel security documents. If the financing
15statement evidences the creation of a security interest in fixtures, it also shall be
16entered in the tract index if one is kept in the county.
SB9-SSA1, s. 14
17Section
14. 59.43 (1) (o) of the statutes is amended to read:
SB9-SSA1,7,2418
59.43
(1) (o)
Upon Except as otherwise provided in subch. V of ch. 409, upon 19the filing of an assignment, continuation statement, termination statement,
20foreclosure affidavit, extension or release pertaining to a filed financing statement
21or other chattel security document, enter the document number and the date and
22time of filing in the appropriate column of the indices referred to in par. (n) and on
23the same line as that on which the entry of the filed financing statement or other
24chattel security document appears.
SB9-SSA1, s. 15
25Section
15. 59.43 (2) (ag) 2. of the statutes is amended to read:
SB9-SSA1,8,3
159.43
(2) (ag) 2. In the event of conflict in the statutes regarding recording fees,
2subd. 1. shall control
, except that subch. V of ch. 409 and s. 409.710 shall control this
3section.
SB9-SSA1, s. 16
4Section
16. 59.43 (2) (d) of the statutes is amended to read:
SB9-SSA1,8,165
59.43
(2) (d) For performing functions under s.
409.407 (1) and (2) (a) and (b) 6409.523, the register shall charge the fees
stated provided in s.
409.407 (2) (a) or (b) 7409.525, retain the portion of the fees prescribed under s. 409.525, and submit the
8portion of the fees not retained to the state. A financing statement and an
9assignment or notice of assignment of the security interest, offered for filing at the
10same time, shall be considered as only one document for the purpose of this
11paragraph. Whenever there is offered for filing any document that is not on a
12standard form prescribed by
ch. 409 or by the department of financial institutions
13or that varies more than 0.125 inch from the approved size as prescribed by sub. (1),
14the appropriate fee
specified in ss. 409.403 to 409.406 provided in s. 409.525 or an
15additional filing fee of one-half the regular fee, whichever is applicable, shall be
16charged by the register.
SB9-SSA1, s. 17
17Section
17. 100.201 (2) (d) of the statutes is amended to read:
SB9-SSA1,9,218
100.201
(2) (d) Make or underwrite loans to a retailer or become bound in any
19manner for the financial obligation of any retailer except that a wholesaler may lend
20money to a retailer for the purchase of equipment for the storage, transportation
, and
21display of selected dairy products, provided the loan is for not more than 90% of the
22purchase price, bears at least a 5% annual interest rate, is payable in equal monthly
23instalments installments over a period of not more than 48 months, and is secured
24by a security interest created by a security agreement specifying all payments by the
25retailer and duly filed by the wholesaler within 10 days after the making or
1underwriting of said loan, as provided in
ss. 409.401 and 409.402 subch. V of ch. 409
2regarding debtors who are located in this state.
SB9-SSA1, s. 18
3Section
18. 100.201 (2) (e) 1. of the statutes is amended to read:
SB9-SSA1,9,184
100.201
(2) (e) 1. The wholesaler, under a bill of sale or security agreement
5describing the property sold and specifying the price and terms of sale duly filed by
6the wholesaler under
ss. 409.401 and 409.402 subch. V of ch. 409 within 10 days after
7delivery of the equipment described therein, may sell equipment for the storage,
8transportation
, and display of selected dairy products to the retailer but the selling
9price shall be not less than the cost to the wholesaler, less 10% per year depreciation,
10plus transportation and installation costs, plus at least 6%, but in no event shall it
11be less than $100 per unit. In filing bills of sale under this section, the filing officer
12shall follow the procedure under
s. 409.403 subch. V of ch. 409 regarding debtors who
13are located in this state insofar as applicable. If the wholesaler makes the sale under
14a security agreement, the terms of sale shall be no more favorable to the retailer than
15those under sub. (2) (d). Failure by any wholesaler to enforce the wholesaler's
16security interest under this paragraph or sub. (2) (d) if a retailer is in default for more
17than 90 days shall constitute prima facie evidence of a violation of this section. No
18wholesaler shall renegotiate a security agreement which is in default.
SB9-SSA1, s. 19
19Section
19. 101.9213 (2) of the statutes is amended to read:
SB9-SSA1,9,2520
101.9213
(2) Except as provided in sub. (3), a security interest is perfected by
21the delivery to the department of the existing certificate of title, if any, an application
22for a certificate of title containing the name and address of the secured party, and the
23required fee. The security interest is perfected as of the
later of the time of its
24creation if such delivery is completed within 10 days after the time that the security
25interest is created, and without regard to the limitations expressed in s. 409.301 (2).
1If the delivery is not completed within 10 days after the time that the security
2interest is created, the security interest is perfected as of the time of such delivery
3or the time of the attachment of the security interest.
SB9-SSA1, s. 20
4Section
20. 101.9213 (4) of the statutes is amended to read:
SB9-SSA1,10,65
101.9213
(4) An unperfected security interest is subordinate to the rights of
6persons described in s.
409.301 409.317.
SB9-SSA1, s. 21
7Section
21. 101.9213 (5) of the statutes is amended to read:
SB9-SSA1,10,148
101.9213
(5) The rules of priority stated in s.
409.312, and 409.322, the other
9sections therein referred to,
and subch. III of ch. 409 shall, to the extent appropriate,
10apply to conflicting security interests in a manufactured home of a type for which a
11certificate of title is required, or in a previously certificated manufactured home, as
12defined in s. 101.9222 (1). A security interest perfected under this section or under
13s. 101.9222 (4) or (5) is a security interest perfected otherwise than by filing for
14purposes of s.
409.312 409.322.
SB9-SSA1, s. 22
15Section
22. 101.9213 (6) of the statutes is amended to read:
SB9-SSA1,10,2116
101.9213
(6) The rules stated in
ss. 409.501 to 409.507 subch. VI of ch. 409
17governing the rights and duties of secured parties and debtors and the requirements
18for, and effect of, disposition of a manufactured home by a secured party, upon default
19shall, to the extent appropriate, govern the rights of secured parties and owners with
20respect to security interests in manufactured homes perfected under ss. 101.9202 to
21101.9218.
SB9-SSA1, s. 23
22Section
23. 101.9213 (7) of the statutes is amended to read:
SB9-SSA1,10,2523
101.9213
(7) If a manufactured home is subject to a security interest when
24brought into this state, s.
409.103 (1), (2) and (3)
409.316 states the rules that apply
25to determine the validity and perfection of the security interest in this state.
SB9-SSA1, s. 24
1Section
24. 101.9215 (1) of the statutes is amended to read:
SB9-SSA1,11,82
101.9215
(1) A Except as otherwise provided in s. 409.308 (5), a secured party
3may assign, absolutely or otherwise, the party's security interest in the
4manufactured home to a person other than the owner without affecting the interest
5of the owner or the validity of the security interest, but any person without notice of
6the assignment is protected in dealing with the secured party as the holder of the
7security interest and the secured party remains liable for any obligations as a
8secured party until the assignee is named as secured party on the certificate.
SB9-SSA1, s. 25
9Section
25. 101.9215 (2) of the statutes is amended to read:
SB9-SSA1,11,1410
101.9215
(2) The Subject to s. 409.308 (5), the assignee may but need not, to
11perfect the assignment, have the certificate of title endorsed or issued with the
12assignee named as secured party, upon delivering to the department the certificate
13and an assignment by the secured party named in the certificate in the form that the
14department prescribes.