AB111: Bill Text

AB111,40,14 5. An individual who is related by blood or marriage to an individual described in subd. 1., 2., 3., or 4. and shares the same home with the individual.

AB111,40,15 (ps) "Proceeds", except as used in s. 409.609 (2), means the following property:

AB111,40,17 1. Whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;

AB111,40,18 2. Whatever is collected on, or distributed on account of, collateral;

AB111,40,19 3. Rights arising out of collateral;

AB111,40,22 4. To the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or

AB111,40,25 5. To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.

AB111,41,4 (ptm) "Proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary's drawing rights or documents presented by the beneficiary.

AB111,41,8 (q) "Promissory note" means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.

AB111,41,12 (qg) "Proposal" means a record authenticated by a secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to ss. 409.620, 409.621, and 409.622.

AB111,41,14 (qm) "Public-finance transaction" means a secured transaction in connection with which:

AB111,41,15 1. Debt securities are issued;

AB111,41,17 2. All or a portion of the securities issued have an initial stated maturity of at least 20 years; and

AB111,41,20 3. The debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.

AB111,41,24 (qs) "Pursuant to commitment", with respect to an advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.

AB111,42,3 (r) "Record", except as used in "for record", "of record", "record or legal title", and "record owner", means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.

AB111,42,7 (rg) "Registered organization" means an organization organized solely under the law of a single state or the United States and as to which the state or the United States must maintain a public record showing the organization to have been organized.

AB111,42,8 (rm) "Secondary obligor" means an obligor to the extent that:

AB111,42,9 1. The obligor's obligation is secondary; or

AB111,42,11 2. The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor, or property of either.

AB111,42,12 (rs) "Secured party" means:

AB111,42,14 1. A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

AB111,42,15 2. A person that holds an agricultural lien;

AB111,42,16 3. A consignor;

AB111,42,18 4. A person to which accounts, chattel paper, payment intangibles, or promissory notes have been sold;

AB111,42,20 5. A trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or

AB111,42,22 6. A person that holds a security interest arising under s. 402.401, 402.505, 402.711 (3), 404.210, 405.118, or 411.508 (5).

AB111,42,24 (s) "Security agreement" means an agreement that creates or provides for a security interest.

AB111,42,25 (sg) "Send", in connection with a record or notification, means:

AB111,43,3 1. To deposit in the mail, deliver for transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or

AB111,43,5 2. To cause the record or notification to be received within the time that it would have been received if properly sent under subd. 1.

AB111,43,8 (sm) "Software" means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.

AB111,43,11 (ss) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

AB111,43,14 (t) "Supporting obligation" means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property.

AB111,43,16 (tg) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.

AB111,43,18 (tm) "Termination statement" means an amendment of a financing statement which:

AB111,43,20 1. Identifies, by its file number, the initial financing statement to which it relates; and

AB111,43,22 2. Indicates either that it is a termination statement or that the identified financing statement is no longer effective.

AB111,43,24 (ts) "Transmitting utility" means a person primarily engaged in the business of:

AB111,43,25 1. Operating a railroad, subway, street railway, or trolley bus;

AB111,44,1 2. Transmitting communications electrically, electromagnetically, or by light;

AB111,44,2 3. Transmitting goods by pipeline or sewer; or

AB111,44,3 4. Transmitting or producing and transmitting electricity, steam, gas, or water.

AB111,44,5 (2) Definitions in other chapters. The following definitions in other chapters apply to this chapter:

AB111,44,6 (b) "Broker" — s. 408.102.

AB111,44,7 (bm) "Certificated security" — s. 408.102.

AB111,44,8 (c) "Check" — s. 403.104.

AB111,44,9 (cm) "Clearing corporation" — s. 408.102.

AB111,44,10 (d) "Contract for sale" — s. 402.106.

AB111,44,11 (dm) "Customer" — s. 404.104.

AB111,44,12 (e) "Entitlement holder" — s. 408.102.

AB111,44,13 (em) "Financial asset" — s. 408.102.

AB111,44,14 (f) "Holder in due course" — s. 403.302.

AB111,44,15 (g) "Issuer" (with respect to a security) — s. 408.201.

AB111,44,16 (gm) "Lease" — s. 411.103.

AB111,44,17 (h) "Lease agreement" — s. 411.103.

AB111,44,18 (hm) "Lease contract" — s. 411.103.

AB111,44,19 (i) "Leasehold interest" — s. 411.103.

AB111,44,20 (im) "Lessee" — s. 411.103.

AB111,44,21 (j) "Lessee in ordinary course of business" — s. 411.103.

AB111,44,22 (jm) "Lessor" — s. 411.103.

AB111,44,23 (k) "Lessor's residual interest" — s. 411.103.

AB111,44,24 (L) "Merchant" — s. 402.104.

AB111,44,25 (Lm) "Negotiable instrument" — s. 403.104.

AB111,45,1 (mm) "Note" — s. 403.104.

AB111,45,2 (nm) "Prove" — s. 403.103.

AB111,45,3 (o) "Sale" — s. 402.106.

AB111,45,4 (om) "Securities account" — s. 408.501.

AB111,45,5 (p) "Securities intermediary" — s. 408.102.

AB111,45,6 (pm) "Security" — s. 408.102.

AB111,45,7 (q) "Security certificate" — s. 408.102.

AB111,45,8 (qm) "Security entitlement" — s. 408.102.

AB111,45,9 (r) "Uncertificated security" — s. 408.102.

AB111,45,12 (3) Chapter 401 definitions and principles. Chapter 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

AB111,45,14 409.103 Purchase-money security interest; application of payments; burden of establishing. (1) Definitions. In this section:

AB111,45,16 (a) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral.

AB111,45,19 (b) "Purchase-money obligation" means an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.

AB111,45,21 (2) Purchase-money security interest in goods. A security interest in goods is a purchase-money security interest:

AB111,45,23 (a) To the extent that the goods are purchase-money collateral with respect to that security interest;

AB111,46,2 (b) If the security interest is in inventory that is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest; and

AB111,46,5 (c) Also to the extent that the security interest secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.

AB111,46,9 (3) Purchase-money security interest in software. A security interest in software is a purchase-money security interest to the extent that the security interest also secures a purchase-money obligation incurred with respect to goods in which the secured party holds or held a purchase-money security interest if:

AB111,46,11 (a) The debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and

AB111,46,13 (b) The debtor acquired its interest in the software for the principal purpose of using the software in the goods.

AB111,46,16 (4) Consignor's inventory purchase-money security interest. The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.

AB111,46,20 (5) Application of payment in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, if the extent to which a security interest is a purchase-money security interest depends on the application of a payment to a particular obligation, the payment must be applied:

AB111,46,22 (a) In accordance with any reasonable method of application to which the parties agree;

AB111,46,25 (b) In the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or

AB111,47,2 (c) In the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order: