AB111,183,1514 (b) The secured party's failure to comply with this chapter does not affect the
15liability of the person for a deficiency.
AB111,183,17 16(2) Limitation of liability based on status as secured party. A secured party
17is not liable because of its status as secured party:
AB111,183,1818 (a) To a person that is a debtor or obligor, unless the secured party knows:
AB111,183,1919 1. That the person is a debtor or obligor;
AB111,183,2020 2. The identity of the person; and
AB111,183,2121 3. How to communicate with the person; or
AB111,183,2322 (b) To a secured party or lienholder that has filed a financing statement against
23a person, unless the secured party knows:
AB111,183,2424 1. That the person is a debtor; and
AB111,183,2525 2. The identity of the person.
AB111,184,7
1(3) Limitation of liability if reasonable belief that transaction not a
2consumer-goods transaction or consumer transaction.
A secured party is not
3liable to any person, and a person's liability for a deficiency is not affected, because
4of any act or omission arising out of the secured party's reasonable belief that a
5transaction is not a consumer-goods transaction or a consumer transaction or that
6goods are not consumer goods, if the secured party's belief is based on its reasonable
7reliance on:
AB111,184,98 (a) A debtor's representation concerning the purpose for which collateral was
9to be used, acquired, or held; or
AB111,184,1110 (b) An obligor's representation concerning the purpose for which a secured
11obligation was incurred.
AB111,184,13 12(4) Limitation of liability for statutory damages. A secured party is not liable
13to any person under s. 409.625 (3) (b) for its failure to comply with s. 409.616.
AB111,184,16 14(5) Limitation of multiple liability for statutory damages. A secured party
15is not liable under s. 409.625 (3) (b) more than once with respect to any one secured
16obligation.
AB111,184,1817 subchapter VII
18TRANSITION
AB111,184,23 19409.702 Savings clause. (1) Preeffective-date transactions or liens.
20Except as otherwise provided in this subchapter, 1999 Wisconsin Act .... (this act)
21applies to a transaction or lien within its scope, even if the transaction or lien was
22entered into or created before the effective date of this subsection .... [revisor inserts
23date].
AB111,184,25 24(2) Continuing validity. Except as otherwise provided in sub. (3) and ss.
25409.703 to 409.709:
AB111,185,7
1(a) Transactions and liens that were not governed by ch. 409, 1999 stats., were
2validly entered into or created before effective date of this paragraph .... [revisor
3inserts date], and would be subject to 1999 Wisconsin Act .... (this act) if they had
4been entered into or created on or after the effective date of this paragraph .... [revisor
5inserts date], and the rights, duties, and interests flowing from those transactions
6and liens remain valid on and after the effective date of this paragraph .... [revisor
7inserts date]; and
AB111,185,108 (b) The transactions and liens may be terminated, completed, consummated,
9and enforced as required or permitted by 1999 Wisconsin Act .... (this act) or by the
10law that otherwise would apply if this paragraph had not taken effect.
AB111,185,13 11(3) Preeffective-date proceedings. 1999 Wisconsin Act .... (this act) does not
12affect an action, case, or proceeding commenced before the effective date of this
13subsection .... [revisor inserts date].
AB111,185,21 14409.703 Security interest perfected before effective date. (1)
15Continuing priority over lien creditor: perfection requirements satisfied.
A
16security interest that is enforceable immediately before the effective date of this
17subsection .... [revisor inserts date], and would have priority over the rights of a
18person that becomes a lien creditor at that time is a perfected security interest under
191999 Wisconsin Act .... (this act) if, on the effective date of this subsection .... [revisor
20inserts date], the applicable requirements for enforceability and perfection under
211999 Wisconsin Act .... (this act) are satisfied without further action.
AB111,186,3 22(2) Continuing priority over lien creditor: perfection requirements not
23satisfied.
Except as otherwise provided in s. 409.705, if, immediately before the
24effective date of this subsection .... [revisor inserts date], a security interest is
25enforceable and would have priority over the rights of a person that becomes a lien

1creditor at that time, but the applicable requirements for enforceability or perfection
2under 1999 Wisconsin Act .... (this act) are not satisfied as of the effective date of this
3subsection .... [revisor inserts date], the security interest:
AB111,186,54 (a) Is a perfected security interest until one year after the effective date of this
5paragraph .... [revisor inserts date];
AB111,186,96 (b) Remains enforceable on and after one year after the effective date of this
7paragraph .... [revisor inserts date], only if the security interest becomes enforceable
8under s. 409.203 before one year after the effective date of this paragraph .... [revisor
9inserts date]; and
AB111,186,1310 (c) Remains perfected on and after one year after the effective date of this
11paragraph .... [revisor inserts date], only if the applicable requirements for perfection
12under 1999 Wisconsin Act .... (this act) are satisfied before one year after the effective
13date of this paragraph .... [revisor inserts date].
AB111,186,17 14409.704 Security interest unperfected before effective date. A security
15interest that is enforceable immediately before the effective date of this section ....
16[revisor inserts date], but which would be subordinate to the rights of a person that
17becomes a lien creditor at that time:
AB111,186,19 18(1) Remains an enforceable security interest for one year after the effective
19date of this subsection .... [revisor inserts date];
AB111,186,23 20(2) Remains enforceable on and after one year after the effective date of this
21subsection .... [revisor inserts date], if the security interest becomes enforceable
22under s. 409.203 on the effective date of this subsection .... [revisor inserts date], or
23within one year thereafter; and
AB111,186,24 24(3) Becomes perfected:
AB111,187,3
11. Without further action, on the effective date of this subdivision .... [revisor
2inserts date], if the applicable requirements for perfection under 1999 Wisconsin Act
3.... (this act) are satisfied before or at that time; or
AB111,187,54 2. When the applicable requirements for perfection are satisfied if the
5requirements are satisfied after that time.
AB111,187,18 6409.705 Effectiveness of action taken before effective date. (1)
7Preeffective-date action; one-year perfection period unless reperfected. If
8action, other than the filing of a financing statement, is taken before the effective
9date of this subsection .... [revisor inserts date], and the action would have resulted
10in priority of a security interest over the rights of a person that becomes a lien
11creditor had the security interest become enforceable before the effective date of this
12subsection .... [revisor inserts date], the action is effective to perfect a security
13interest that attaches under 1999 Wisconsin Act .... (this act) before the effective date
14of this subsection .... [revisor inserts date]. An attached security interest becomes
15unperfected one year after the effective date of this subsection .... [revisor inserts
16date], unless the security interest becomes a perfected security interest under 1999
17Wisconsin Act .... (this act) before one year after the effective date of this subsection
18.... [revisor inserts date].
AB111,187,22 19(2) Preeffective-date filing. The filing of a financing statement before the
20effective date of this subsection .... [revisor inserts date], is effective to perfect a
21security interest to the extent that the filing would satisfy the applicable
22requirements for perfection under 1999 Wisconsin Act .... (this act).
AB111,188,4 23(3) Preeffective-date filing in jurisdiction formerly governing perfection.
241999 Wisconsin Act .... (this act) does not render ineffective an effective financing
25statement that, before the effective date of this subsection .... [revisor inserts date],

1is filed and satisfies the applicable requirements for perfection under the law of the
2jurisdiction governing perfection as provided in s. 409.103, 1999 stats. However,
3except as otherwise provided in subs. (4) and (5) and s. 409.706, the financing
4statement ceases to be effective at the earlier of:
AB111,188,65 (a) The time the financing statement would have ceased to be effective under
6the law of the jurisdiction in which it is filed; or
AB111,188,77 (b) June 30, 2006.
AB111,188,16 8(4) Continuation statement. The filing of a continuation statement on or after
9the effective date of this subsection .... [revisor inserts date], does not continue the
10effectiveness of the financing statement filed before the effective date of this
11subsection .... [revisor inserts date]. However, upon the timely filing of a
12continuation statement on or after the effective date of this subsection .... [revisor
13inserts date], and in accordance with the law of the jurisdiction governing perfection
14as provided in subch. III, the effectiveness of a financing statement filed in the same
15office in that jurisdiction before the effective date of this subsection .... [revisor
16inserts date], continues for the period provided by the law of that jurisdiction.
AB111,188,24 17(5) Application of sub. (3) (b) to transmitting utility financing statement.
18Subsection (3) (b) applies to a financing statement that, before the effective date of
19this subsection .... [revisor inserts date], is filed against a transmitting utility and
20satisfies the applicable requirements for perfection under the law of the jurisdiction
21governing perfection as provided in s. 409.103, 1999 stats., only to the extent that
22subch. III provides that the law of a jurisdiction other than the jurisdiction in which
23the financing statement is filed governs perfection of a security interest in collateral
24covered by the financing statement.
AB111,189,5
1(6) Application of subch. V. A financing statement that includes a financing
2statement filed before the effective date of this subsection .... [revisor inserts date],
3and a continuation statement filed on or after the effective date of this subsection ....
4[revisor inserts date], is effective only to the extent that it satisfies the requirements
5of subch. V for an initial financing statement.
AB111,189,10 6409.706 When initial financing statement suffices to continue
7effectiveness of financing statement. (1)
Initial financing statement in lieu
8of continuation statement.
The filing of an initial financing statement in the office
9specified in s. 409.501 continues the effectiveness of a financing statement filed
10before the effective date of this subsection .... [revisor inserts date], if:
AB111,189,1211 (a) The filing of an initial financing statement in that office would be effective
12to perfect a security interest under 1999 Wisconsin Act .... (this act);
AB111,189,1413 (b) The preeffective-date financing statement was filed in an office in another
14state or another office in this state; and
AB111,189,1515 (c) The initial financing statement satisfies sub. (3).
AB111,189,18 16(2) Period of continued effectiveness. The filing of an initial financing
17statement under sub. (1) continues the effectiveness of the preeffective-date
18financing statement:
AB111,189,2119 (a) If the initial financing statement is filed before the effective date of this
20paragraph .... [revisor inserts date], for the period provided in s. 409.403, 1999 stats.,
21with respect to a financing statement; and
AB111,189,2422 (b) If the initial financing statement is filed on or after the effective date of this
23paragraph .... [revisor inserts date], for the period provided in s. 409.515 with respect
24to an initial financing statement.
AB111,190,2
1(3) Requirements for initial financing statement under sub. (1). To be
2effective for purposes of sub. (1), an initial financing statement must:
AB111,190,33 (a) Satisfy the requirements of subch. V for an initial financing statement;
AB111,190,74 (b) Identify the preeffective-date financing statement by indicating the office
5in which the financing statement was filed and providing the dates of filing and file
6numbers, if any, of the financing statement and of the most recent continuation
7statement filed with respect to the financing statement; and
AB111,190,88 (c) Indicate that the preeffective-date financing statement remains effective.
AB111,190,12 9409.707 Amendment of preeffective-date financing statement. (1)
10Preeffective-date financing statement. In this section, "preeffective-date
11financing statement" means a financing statement filed before the effective date of
12this subsection .... [revisor inserts date].
AB111,190,19 13(2) Applicable law. On or after the effective date of this subsection .... [revisor
14inserts date], a person may add or delete collateral covered by, continue or terminate
15the effectiveness of, or otherwise amend the information provided in, a
16preeffective-date financing statement only in accordance with the law of the
17jurisdiction governing perfection as provided in subch. III. However, the
18effectiveness of a preeffective-date financing statement also may be terminated in
19accordance with the law of the jurisdiction in which the financing statement is filed.
AB111,190,23 20(3) Method of amending: general rule. Except as otherwise provided in sub.
21(4), if the law of this state governs perfection of a security interest, the information
22in a preeffective-date financing statement may be amended on or after the effective
23date of this subsection .... [revisor inserts date], only if:
AB111,190,2524 (a) The preeffective-date financing statement and an amendment are filed in
25the office specified in s. 409.501;
AB111,191,3
1(b) An amendment is filed in the office specified in s. 409.501 concurrently with,
2or after the filing in that office of, an initial financing statement that satisfies s.
3409.706 (3); or
AB111,191,54 (c) An initial financing statement that provides the information as amended
5and satisfies s. 409.706 (3) is filed in the office specified in s. 409.501.
AB111,191,8 6(4) Method of amending: continuation. If the law of this state governs
7perfection of a security interest, the effectiveness of a preeffective-date financing
8statement may be continued only under s. 409.705 (4) and (6) or 409.706.
AB111,191,16 9(5) Method of amending: additional termination rule. Whether or not the law
10of this state governs perfection of a security interest, the effectiveness of a
11preeffective-date financing statement filed in this state may be terminated on or
12after the effective date of this subsection .... [revisor inserts date], by filing a
13termination statement in the office in which the preeffective-date financing
14statement is filed, unless an initial financing statement that satisfies s. 409.706 (3)
15has been filed in the office specified by the law of the jurisdiction governing perfection
16as provided in subch. III as the office in which to file a financing statement.
AB111,191,19 17409.708 Persons entitled to file initial financing statement or
18continuation statement.
A person may file an initial financing statement or a
19continuation statement under this subchapter if:
AB111,191,20 20(1) The secured party of record authorizes the filing; and
AB111,191,21 21(2) The filing is necessary under this subchapter:
AB111,191,2322 (a) To continue the effectiveness of a financing statement filed before the
23effective date of this paragraph .... [revisor inserts date]; or
AB111,191,2424 (b) To perfect or continue the perfection of a security interest.
AB111,192,4
1409.709 Priority. (1) Law governing priority. 1999 Wisconsin Act .... (this
2act) determines the priority of conflicting claims to collateral. However, if the
3relative priorities of the claims were established before the effective date of this
4subsection .... [revisor inserts date], ch. 409, 1999 stats., determines priority.
AB111,192,13 5(2) Priority if security interest becomes enforceable under s. 409.203. For
6purposes of s. 409.322 (1), the priority of a security interest that becomes enforceable
7under s. 409.203 dates from the effective date of this subsection .... [revisor inserts
8date], if the security interest is perfected under 1999 Wisconsin Act .... (this act) by
9the filing of a financing statement before the effective date of this subsection ....
10[revisor inserts date], which would not have been effective to perfect the security
11interest under ch. 409, 1999 stats. This subsection does not apply to conflicting
12security interests each of which is perfected by the filing of such a financing
13statement.
AB111,192,15 14409.710 Special transitional provision for maintaining and searching
15local filing office records. (1)
Definitions. In this section:
AB111,192,1616 (a) "Former-ch.-409 records":
AB111,192,1717 1. Means:
AB111,192,2218 a. Financing statements and other records that have been filed in a local filing
19office before July 1, 2001, and that are, or upon processing and indexing will be,
20reflected in the index maintained, as of June 30, 2001, by the local filing office for
21financing statements and other records filed in the local filing office before July 1,
222001; and
AB111,192,2323 b. The index as of June 30, 2001.
AB111,193,3
12. Does not include records presented to a local filing office for filing after June
230, 2001, whether or not the records relate to financing statements filed in the local
3filing office before July 1, 2001.
AB111,193,84 (b) "Local filing office" means a filing office, other than the department of
5financial institutions, that is designated as the proper place to file a financing
6statement under s. 409.401 (1), 1999 stats., with respect to a record that covers a type
7of collateral as to which the filing office is designated in that subsection as the proper
8place to file.
AB111,193,11 9(2) Prohibition of filing after June 30, 2001. A local filing office shall not accept
10for filing a record presented after June 30, 2001, whether or not the record relates
11to a financing statement filed in the local filing office before July 1, 2001.
AB111,193,17 12(3) Maintenance of records. Until July 1, 2008, each local filing office must
13maintain all former-ch.-409 records in accordance with ch. 409, 1999 stats. A
14former-ch.-409 record that is not reflected on the index maintained at June 30, 2001,
15by the local filing office must be processed and indexed, and reflected on the index
16as of June 30, 2001, as soon as practicable but in any event no later than July 30,
172001.
AB111,194,4 18(4) Information requests. Until at least June 30, 2008, each local filing office
19must respond to requests for information with respect to former-ch.-409 records
20relating to a debtor and issue certificates, in accordance with ch. 409, 1999 stats. The
21fees charged for responding to requests for information relating to a debtor and
22issuing certificates with respect to former-ch.-409 records must be the fees in effect
23under ch. 409, 1999 stats., on June 30, 2001, unless a different fee is later set by the
24local filing office. However, the different fee must not exceed the amount set by
25filing-office rule for responding to a request for information relating to a debtor or

1for issuing a certificate. This subsection does not require that a fee be charged for
2remote access searching of the filing-office data base. The rule promulgated
3pursuant to this subsection need not specify a fee for remote access searching of the
4filing-office data base.
AB111,194,7 5(5) Destruction of records. After June 30, 2008, each local filing office may
6remove and destroy, in accordance with any then-applicable record retention law of
7this state, all former-ch.-409 records, including the related index.
AB111,194,10 8(6) Exclusion. This section does not apply, with respect to financing
9statements and other records, to a filing office in which mortgages or records of
10mortgages on real property are required to be filed or recorded, if:
AB111,194,1111 (a) The collateral is timber to be cut or as-extracted collateral; or
AB111,194,1312 (b) The record is or relates to a financing statement filed as a fixture filing and
13the collateral is goods that are or are to become fixtures.
AB111, s. 79 14Section 79. 411.103 (3) (a) of the statutes is amended to read:
AB111,194,1515 411.103 (3) (a) "Account" — s. 409.106 409.102 (1) (ag).
AB111, s. 80 16Section 80. 411.103 (3) (d) of the statutes is amended to read:
AB111,194,1717 411.103 (3) (d) "Chattel paper" — s. 409.105 (1) (b) 409.102 (1) (cm).
AB111, s. 81 18Section 81. 411.103 (3) (e) of the statutes is amended to read:
AB111,194,1919 411.103 (3) (e) "Consumer goods" — s. 409.109 (1) 409.102 (1) (fm).
AB111, s. 82 20Section 82. 411.103 (3) (f) of the statutes is amended to read:
AB111,194,2121 411.103 (3) (f) "Document" — s. 409.105 (1) (f) 409.102 (1) (hg).
AB111, s. 83 22Section 83. 411.103 (3) (h) of the statutes is amended to read:
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