AB111,170,2119 (b) In the case of a consumer obligor who is liable for a deficiency, within 14 days
20after receipt of a request, send to the consumer obligor a record waiving the secured
21party's right to a deficiency.
AB111,170,23 22(3) Required information. To comply with sub. (1) (a) 2., a writing must provide
23the following information in the following order:
AB111,171,224 (a) The aggregate amount of obligations secured by the security interest under
25which the disposition was made, and, if the amount reflects a rebate of unearned

1interest or credit service charge, an indication of that fact, calculated as of a specified
2date:
AB111,171,53 1. If the secured party takes or receives possession of the collateral after
4default, not more than 35 days before the secured party takes or receives possession;
5or
AB111,171,86 2. If the secured party takes or receives possession of the collateral before
7default or does not take possession of the collateral, not more than 35 days before the
8disposition;
AB111,171,99 (b) The amount of proceeds of the disposition;
AB111,171,1110 (c) The aggregate amount of the obligations after deducting the amount of
11proceeds;
AB111,171,1512 (d) The amount, in the aggregate or by type, and types of expenses, including
13expenses of retaking, holding, preparing for disposition, processing, and disposing
14of the collateral, and attorney fees secured by the collateral which are known to the
15secured party and relate to the current disposition;
AB111,171,1816 (e) The amount, in the aggregate or by type, and types of credits, including
17rebates of interest or credit service charges, to which the obligor is known to be
18entitled and which are not reflected in the amount in par. (a); and
AB111,171,1919 (f) The amount of the surplus or deficiency.
AB111,171,22 20(4) Substantial compliance. A particular phrasing of the explanation is not
21required. An explanation complying substantially with the requirements of sub. (1)
22is sufficient, even if it includes minor errors that are not seriously misleading.
AB111,172,2 23(5) Charges for responses. A debtor or consumer obligor is entitled without
24charge to one response to a request under this section during any 6-month period in
25which the secured party did not send to the debtor or consumer obligor an

1explanation pursuant to sub. (2) (a). The secured party may require payment of a
2charge not exceeding $25 for each additional response.
AB111,172,4 3409.617 Rights of transferee of collateral. (1) Effects of disposition. A
4secured party's disposition of collateral after default:
AB111,172,55 (a) Transfers to a transferee for value all of the debtor's rights in the collateral;
AB111,172,66 (b) Discharges the security interest under which the disposition is made; and
AB111,172,87 (c) Discharges any subordinate security interest or other subordinate lien other
8than liens held by this state or a local governmental unit, as defined in s. 19.42 (7u).
AB111,172,11 9(2) Rights of good-faith transferee. A transferee that acts in good faith takes
10free of the rights and interests described in sub. (1), even if the secured party fails
11to comply with this chapter or the requirements of any judicial proceeding.
AB111,172,13 12(3) Rights of other transferee. If a transferee does not take free of the rights
13and interests described in sub. (1), the transferee takes the collateral subject to:
AB111,172,1414 (a) The debtor's rights in the collateral;
AB111,172,1615 (b) The security interest or agricultural lien under which the disposition is
16made; and
AB111,172,1717 (c) Any other security interest or other lien.
AB111,172,20 18409.618 Rights and duties of certain secondary obligors. (1) Rights and
19duties of secondary obligor.
A secondary obligor acquires the rights and becomes
20obligated to perform the duties of the secured party after the secondary obligor:
AB111,172,2121 (a) Receives an assignment of a secured obligation from the secured party;
AB111,172,2322 (b) Receives a transfer of collateral from the secured party and agrees to accept
23the rights and assume the duties of the secured party; or
AB111,172,2424 (c) Is subrogated to the rights of a secured party with respect to collateral.
AB111,173,2
1(2) Effect of assignment, transfer, or subrogation. An assignment, transfer,
2or subrogation described in sub. (1):
AB111,173,33 (a) Is not a disposition of collateral under s. 409.610; and
AB111,173,44 (b) Relieves the secured party of further duties under this chapter.
AB111,173,7 5409.619 Transfer of record or legal title. (1) Transfer statement. In this
6section, "transfer statement" means a record authenticated by a secured party
7stating:
AB111,173,98 (a) That the debtor has defaulted in connection with an obligation secured by
9specified collateral;
AB111,173,1110 (b) That the secured party has exercised its postdefault remedies with respect
11to the collateral;
AB111,173,1312 (c) That, by reason of the exercise, a transferee has acquired the rights of the
13debtor in the collateral; and
AB111,173,1414 (d) The name and mailing address of the secured party, debtor, and transferee.
AB111,173,20 15(2) Effect of transfer statement. A transfer statement entitles the transferee
16to the transfer of record of all rights of the debtor in the collateral specified in the
17statement in any official filing, recording, registration, or certificate-of-title system
18covering the collateral. If a transfer statement is presented with the applicable fee
19and request form to the official or office responsible for maintaining the system, the
20official or office shall:
AB111,173,2121 (a) Accept the transfer statement;
AB111,173,2222 (b) Promptly amend its records to reflect the transfer; and
AB111,173,2423 (c) If applicable, issue a new appropriate certificate of title in the name of the
24transferee.
AB111,174,4
1(3) Transfer not a disposition; no relief of secured party's duties. A transfer
2of the record or legal title to collateral to a secured party under sub. (2) or otherwise
3is not of itself a disposition of collateral under this chapter and does not of itself
4relieve the secured party of its duties under this chapter.
AB111,174,9 5409.620 Acceptance of collateral in full or partial satisfaction of
6obligation; compulsory disposition of collateral. (1)
Conditions to
7acceptance in satisfaction.
Except as otherwise provided in sub. (7), a secured party
8may accept collateral in full or partial satisfaction of the obligation it secures only
9if:
AB111,174,1010 (a) The debtor consents to the acceptance under sub. (3);
AB111,174,1211 (b) The secured party does not receive, within the time set forth in sub. (4), a
12notification of objection to the proposal authenticated by:
AB111,174,1413 1. A person to which the secured party was required to send a proposal under
14s. 409.621; or
AB111,174,1615 2. Any other person, other than the debtor, holding an interest in the collateral
16subordinate to the security interest that is the subject of the proposal;
AB111,174,1817 (c) If the collateral is consumer goods, the collateral is not in the possession of
18the debtor when the debtor consents to the acceptance; and
AB111,174,2019 (d) Subsection (5) does not require the secured party to dispose of the collateral
20or the debtor waives the requirement pursuant to s. 409.624.
AB111,174,22 21(2) Purported acceptance ineffective. A purported or apparent acceptance
22of collateral under this section is ineffective unless:
AB111,174,2423 (a) The secured party consents to the acceptance in an authenticated record or
24sends a proposal to the debtor; and
AB111,174,2525 (b) The conditions of sub. (1) are met.
AB111,175,1
1(3) Debtor's consent. For purposes of this section:
AB111,175,42 (a) A debtor consents to an acceptance of collateral in partial satisfaction of the
3obligation it secures only if the debtor agrees to the terms of the acceptance in a
4record authenticated after default; and
AB111,175,75 (b) A debtor consents to an acceptance of collateral in full satisfaction of the
6obligation it secures only if the debtor agrees to the terms of the acceptance in a
7record authenticated after default or the secured party:
AB111,175,108 1. Sends to the debtor after default a proposal that is unconditional or subject
9only to a condition that collateral not in the possession of the secured party be
10preserved or maintained;
AB111,175,1211 2. In the proposal, proposes to accept collateral in full satisfaction of the
12obligation it secures; and
AB111,175,1413 3. Does not receive a notification of objection authenticated by the debtor
14within 20 days after the proposal is sent.
AB111,175,16 15(4) Effectiveness of notification. To be effective under sub. (1) (b), a
16notification of objection must be received by the secured party:
AB111,175,1817 (a) In the case of a person to which the proposal was sent pursuant to s. 409.621,
18within 20 days after notification was sent to that person; and
AB111,175,1919 (b) In other cases:
AB111,175,2120 1. Within 20 days after the last notification was sent pursuant to s. 409.621;
21or
AB111,175,2322 2. If a notification was not sent, before the debtor consents to the acceptance
23under sub. (3).
AB111,176,3
1(5) Mandatory disposition of consumer goods. A secured party that has taken
2possession of collateral shall dispose of the collateral pursuant to s. 409.610 within
3the time specified in sub. (6) if:
AB111,176,54 (a) Sixty percent of the cash price has been paid in the case of a
5purchase-money security interest in consumer goods; or
AB111,176,76 (b) Sixty percent of the principal amount of the obligation secured has been paid
7in the case of a nonpurchase-money security interest in consumer goods.
AB111,176,9 8(6) Compliance with mandatory disposition requirement. To comply with sub.
9(5), the secured party shall dispose of the collateral:
AB111,176,1010 (a) Within 90 days after taking possession; or
AB111,176,1311 (b) Within any longer period to which the debtor and all secondary obligors
12have agreed in an agreement to that effect entered into and authenticated after
13default.
AB111,176,16 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.
AB111,176,19 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:
AB111,176,2220 (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;
AB111,176,2523 (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:
AB111,177,1
11. Identified the collateral;
AB111,177,22 2. Was indexed under the debtor's name as of that date; and
AB111,177,43 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
AB111,177,75 (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).
AB111,177,11 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).
AB111,177,14 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:
AB111,177,1515 (a) Discharges the obligation to the extent consented to by the debtor;
AB111,177,1616 (b) Transfers to the secured party all of a debtor's rights in the collateral;
AB111,177,1817 (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
AB111,177,1919 (d) Terminates any other subordinate interest.
AB111,177,22 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.
AB111,177,25 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.
AB111,178,1
1(2) Requirements for redemption. To redeem collateral, a person shall tender:
AB111,178,22 (a) Fulfillment of all obligations secured by the collateral; and
AB111,178,33 (b) The reasonable expenses and attorney fees described in s. 409.615 (1) (a).
AB111,178,5 4(3) When redemption may occur. A redemption may occur at any time before
5a secured party:
AB111,178,66 (a) Has collected collateral under s. 409.607;
AB111,178,87 (b) Has disposed of collateral or entered into a contract for its disposition under
8s. 409.610; or
AB111,178,109 (c) Has accepted collateral in full or partial satisfaction of the obligation it
10secures under s. 409.622.
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