AB111,77,1514 (c) A security interest in money may be perfected only by the secured party's
15taking possession under s. 409.313.
AB111,77,17 16(3) Goods covered by negotiable document. While goods are in the possession
17of a bailee that has issued a negotiable document covering the goods:
AB111,77,1918 (a) A security interest in the goods may be perfected by perfecting a security
19interest in the document; and
AB111,77,2120 (b) A security interest perfected in the document has priority over any security
21interest that becomes perfected in the goods by another method during that time.
AB111,77,24 22(4) Goods covered by nonnegotiable document. While goods are in the
23possession of a bailee that has issued a nonnegotiable document covering the goods,
24a security interest in the goods may be perfected by:
AB111,77,2525 (a) Issuance of a document in the name of the secured party;
AB111,78,1
1(b) The bailee's receipt of notification of the secured party's interest; or
AB111,78,22 (c) Filing as to the goods.
AB111,78,6 3(5) Temporary perfection: new value. A security interest in certificated
4securities, negotiable documents, or instruments is perfected without filing or the
5taking of possession for a period of 20 days from the time it attaches to the extent that
6it arises for new value given under an authenticated security agreement.
AB111,78,11 7(6) Temporary perfection: goods or documents made available to debtor. A
8perfected security interest in a negotiable document or goods in possession of a
9bailee, other than one that has issued a negotiable document for the goods, remains
10perfected for 20 days without filing if the secured party makes available to the debtor
11the goods or documents representing the goods for the purpose of:
AB111,78,1212 (a) Ultimate sale or exchange; or
AB111,78,1513 (b) Loading, unloading, storing, shipping, transshipping, manufacturing,
14processing, or otherwise dealing with them in a manner preliminary to their sale or
15exchange.
AB111,78,19 16(7) Temporary perfection: delivery of security certificate or instrument to
17debtor.
A perfected security interest in a certificated security or instrument remains
18perfected for 20 days without filing if the secured party delivers the security
19certificate or instrument to the debtor for the purpose of:
AB111,78,2020 (a) Ultimate sale or exchange; or
AB111,78,2121 (b) Presentation, collection, enforcement, renewal, or registration of transfer.
AB111,78,23 22(8) Expiration of temporary perfection. After the 20-day period specified in
23sub. (5), (6), or (7) expires, perfection depends upon compliance with this chapter.
AB111,79,5 24409.313 When possession by or delivery to secured party perfects
25security interest without filing. (1)
Perfection by possession or delivery.

1Except as otherwise provided in sub. (2), a secured party may perfect a security
2interest in negotiable documents, goods, instruments, money, or tangible chattel
3paper by taking possession of the collateral. A secured party may perfect a security
4interest in certificated securities by taking delivery of the certificated securities
5under s. 408.301.
AB111,79,9 6(2) Goods covered by certificate of title. With respect to goods covered by
7a certificate of title issued by this state, a secured party may perfect a security
8interest in the goods by taking possession of the goods only in the circumstances
9described in s. 409.316 (4).
AB111,79,14 10(3) Collateral in possession of person other than debtor. With respect to
11collateral other than certificated securities and goods covered by a document, a
12secured party takes possession of collateral in the possession of a person other than
13the debtor, the secured party, or a lessee of the collateral from the debtor in the
14ordinary course of the debtor's business, when:
AB111,79,1615 (a) The person in possession authenticates a record acknowledging that the
16person holds possession of the collateral for the secured party's benefit; or
AB111,79,1917 (b) The person takes possession of the collateral after having authenticated a
18record acknowledging that the person will hold possession of collateral for the
19secured party's benefit.
AB111,79,23 20(4) Time of perfection by possession; continuation of perfection. If
21perfection of a security interest depends upon possession of the collateral by a
22secured party, perfection occurs no earlier than the time the secured party takes
23possession and continues only while the secured party retains possession.
AB111,80,2 24(5) Time of perfection by delivery; continuation of perfection. A security
25interest in a certificated security in registered form is perfected by delivery when

1delivery of the certificated security occurs under s. 408.301 and remains perfected
2by delivery until the debtor obtains possession of the security certificate.
AB111,80,4 3(6) Acknowledgment not required. A person in possession of collateral is not
4required to acknowledge that it holds possession for a secured party's benefit.
AB111,80,6 5(7) Effectiveness of acknowledgment; no duties or confirmation. If a person
6acknowledges that it holds possession for the secured party's benefit:
AB111,80,87 (a) The acknowledgment is effective under sub. (3) or s. 408.301 (1), even if the
8acknowledgment violates the rights of a debtor; and
AB111,80,119 (b) Unless the person otherwise agrees or law other than this chapter otherwise
10provides, the person does not owe any duty to the secured party and is not required
11to confirm the acknowledgment to another person.
AB111,80,16 12(8) Secured party's delivery to person other than debtor. A secured party
13having possession of collateral does not relinquish possession by delivering the
14collateral to a person other than the debtor or a lessee of the collateral from the debtor
15in the ordinary course of the debtor's business if the person was instructed before the
16delivery or is instructed contemporaneously with the delivery:
AB111,80,1717 (a) To hold possession of the collateral for the secured party's benefit; or
AB111,80,1818 (b) To redeliver the collateral to the secured party.
AB111,80,24 19(9) Effect of delivery under sub. (8); no duties or confirmation. A secured
20party does not relinquish possession, even if a delivery under sub. (8) violates the
21rights of a debtor. A person to which collateral is delivered under sub. (8) does not
22owe any duty to the secured party and is not required to confirm the delivery to
23another person unless the person otherwise agrees or law other than this chapter
24otherwise provides.
AB111,81,4
1409.314 Perfection by control. (1) Perfection by control. A security
2interest in investment property, deposit accounts, letter-of-credit rights, or
3electronic chattel paper may be perfected by control of the collateral under s. 409.104,
4409.105, 409.106, or 409.107.
AB111,81,9 5(2) Specified collateral: time of perfection by control; continuation of
6perfection.
A security interest in deposit accounts, electronic chattel paper, or
7letter-of-credit rights is perfected by control under s. 409.104, 409.105, or 409.107
8when the secured party obtains control and remains perfected by control only while
9the secured party retains control.
AB111,81,13 10(3) Investment property: time of perfection by control; continuation of
11perfection.
A security interest in investment property is perfected by control under
12s. 409.106 from the time the secured party obtains control and remains perfected by
13control until:
AB111,81,1414 (a) The secured party does not have control; and
AB111,81,1515 (b) One of the following occurs:
AB111,81,1716 1. If the collateral is a certificated security, the debtor has or acquires
17possession of the security certificate;
AB111,81,1918 2. If the collateral is an uncertificated security, the issuer has registered or
19registers the debtor as the registered owner; or
AB111,81,2120 3. If the collateral is a security entitlement, the debtor is or becomes the
21entitlement holder.
AB111,81,25 22409.315 Secured party's rights on disposition of collateral and in
23proceeds. (1)
Disposition of collateral: continuation of security interest or
24agricultural lien; proceeds.
Except as otherwise provided in this chapter and in s.
25402.403 (2):
AB111,82,4
1(a) A security interest or agricultural lien continues in collateral
2notwithstanding sale, lease, license, exchange, or other disposition thereof unless
3the secured party authorized the disposition free of the security interest or
4agricultural lien; and
AB111,82,55 (b) A security interest attaches to any identifiable proceeds of collateral.
AB111,82,7 6(2) When commingled proceeds identifiable. Proceeds that are commingled
7with other property are identifiable proceeds:
AB111,82,88 (a) If the proceeds are goods, to the extent provided by s. 409.336; and
AB111,82,129 (b) If the proceeds are not goods, to the extent that the secured party identifies
10the proceeds by a method of tracing, including application of equitable principles,
11that is permitted under law other than this chapter with respect to commingled
12property of the type involved.
AB111,82,15 13(3) Perfection of security interest in proceeds. A security interest in
14proceeds is a perfected security interest if the security interest in the original
15collateral was perfected.
AB111,82,18 16(4) Continuation of perfection. A perfected security interest in proceeds
17becomes unperfected on the 21st day after the security interest attaches to the
18proceeds unless:
AB111,82,1919 (a) The following conditions are satisfied:
AB111,82,2020 1. A filed financing statement covers the original collateral;
AB111,82,2221 2. The proceeds are collateral in which a security interest may be perfected by
22filing in the office in which the financing statement has been filed; and
AB111,82,2323 3. The proceeds are not acquired with cash proceeds;
AB111,82,2424 (b) The proceeds are identifiable cash proceeds; or
AB111,83,2
1(c) The security interest in the proceeds is perfected other than under sub. (3)
2when the security interest attaches to the proceeds or within 20 days thereafter.
AB111,83,6 3(5) When perfected security interest in proceeds becomes unperfected. If
4a filed financing statement covers the original collateral, a security interest in
5proceeds which remains perfected under sub. (4) (a) becomes unperfected at the later
6of:
AB111,83,87 (a) When the effectiveness of the filed financing statement lapses under s.
8409.515 or is terminated under s. 409.513; or
AB111,83,99 (b) The 21st day after the security interest attaches to the proceeds.
AB111,83,13 10409.316 Continued perfection of security interest following change in
11governing law
. (1) General rule: effect on perfection of change in governing
12law.
A security interest perfected pursuant to the law of the jurisdiction designated
13in s. 409.301 (1) or 409.305 (3) remains perfected until the earliest of:
AB111,83,1414 (a) The time perfection would have ceased under the law of that jurisdiction;
AB111,83,1615 (b) The expiration of 4 months after a change of the debtor's location to another
16jurisdiction; or
AB111,83,1817 (c) The expiration of one year after a transfer of collateral to a person that
18thereby becomes a debtor and is located in another jurisdiction.
AB111,83,25 19(2) Security interest perfected or unperfected under law of new
20jurisdiction.
If a security interest described in sub. (1) becomes perfected under the
21law of the other jurisdiction before the earliest time or event described in that
22subsection, it remains perfected thereafter. If the security interest does not become
23perfected under the law of the other jurisdiction before the earliest time or event, it
24becomes unperfected and is deemed never to have been perfected as against a
25purchaser of the collateral for value.
AB111,84,4
1(3) Possessory security interest in collateral moved to new jurisdiction.
2A possessory security interest in collateral, other than goods covered by a certificate
3of title and as-extracted collateral consisting of goods, remains continuously
4perfected if:
AB111,84,65 (a) The collateral is located in one jurisdiction and subject to a security interest
6perfected under the law of that jurisdiction;
AB111,84,77 (b) Thereafter the collateral is brought into another jurisdiction; and
AB111,84,98 (c) Upon entry into the other jurisdiction, the security interest is perfected
9under the law of the other jurisdiction.
AB111,84,15 10(4) Goods covered by certificate of title from this state. Except as otherwise
11provided in sub. (5), a security interest in goods covered by a certificate of title which
12is perfected by any method under the law of another jurisdiction when the goods
13become covered by a certificate of title from this state remains perfected until the
14security interest would have become unperfected under the law of the other
15jurisdiction had the goods not become so covered.
AB111,84,20 16(5) When sub. (4) security interest becomes unperfected against purchasers.
17A security interest described in sub. (4) becomes unperfected as against a purchaser
18of the goods for value and is deemed never to have been perfected as against a
19purchaser of the goods for value if the applicable requirements for perfection under
20s. 409.311 (2) or 409.313 are not satisfied before the earlier of:
AB111,84,2321 (a) The time the security interest would have become unperfected under the law
22of the other jurisdiction had the goods not become covered by a certificate of title from
23this state; or
AB111,84,2424 (b) The expiration of 4 months after the goods had become so covered.
AB111,85,6
1(6) Change in jurisdiction of bank, issuer, nominated person, securities
2intermediary, or commodity intermediary.
A security interest in deposit accounts,
3letter-of-credit rights, or investment property which is perfected under the law of
4the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction,
5the securities intermediary's jurisdiction, or the commodity intermediary's
6jurisdiction, as applicable, remains perfected until the earlier of:
AB111,85,87 (a) The time the security interest would have become unperfected under the
8law of that jurisdiction; or
AB111,85,109 (b) The expiration of 4 months after a change of the applicable jurisdiction to
10another jurisdiction.
AB111,85,17 11(7) Sub. (6) security interest perfected or unperfected under law of new
12jurisdiction.
If a security interest described in sub. (6) becomes perfected under the
13law of the other jurisdiction before the earlier of the time or the end of the period
14described in that subsection, it remains perfected thereafter. If the security interest
15does not become perfected under the law of the other jurisdiction before the earlier
16of that time or the end of that period, it becomes unperfected and is deemed never
17to have been perfected as against a purchaser of the collateral for value.
AB111,85,21 18409.317 Interests that take priority over or take free of security
19interest or agricultural lien
. (1) Conflicting security interests and rights of
20lien creditors.
A security interest or agricultural lien is subordinate to the rights
21of:
AB111,85,2222 (a) A person entitled to priority under s. 409.322; and
AB111,85,2423 (b) Except as otherwise provided in sub. (5), a person that becomes a lien
24creditor before the earlier of the time:
AB111,85,2525 1. The security interest or agricultural lien is perfected; or
AB111,86,2
12. One of the conditions specified in s. 409.203 (2) (c) is met and a financing
2statement covering the collateral is filed.
AB111,86,7 3(2) Buyers that receive delivery. Except as otherwise provided in sub. (5), a
4buyer, other than a secured party, of tangible chattel paper, documents, goods,
5instruments, or a security certificate takes free of a security interest or agricultural
6lien if the buyer gives value and receives delivery of the collateral without knowledge
7of the security interest or agricultural lien and before it is perfected.
AB111,86,11 8(3) Lessees that receive delivery. Except as otherwise provided in sub. (5),
9a lessee of goods takes free of a security interest or agricultural lien if the lessee gives
10value and receives delivery of the collateral without knowledge of the security
11interest or agricultural lien and before it is perfected.
AB111,86,16 12(4) Licensees and buyers of certain collateral. A licensee of a general
13intangible or a buyer, other than a secured party, of accounts, electronic chattel
14paper, general intangibles, or investment property other than a certificated security
15takes free of a security interest if the licensee or buyer gives value without knowledge
16of the security interest and before it is perfected.
AB111,86,22 17(5) Purchase-money security interest. Except as otherwise provided in ss.
18409.320 and 409.321, if a person files a financing statement with respect to a
19purchase-money security interest before or within 20 days after the debtor receives
20delivery of the collateral, the security interest takes priority over the rights of a
21buyer, lessee, or lien creditor which arise between the time the security interest
22attaches and the time of filing.
AB111,87,2 23409.318 No interest retained in right to payment that is sold; rights and
24title of seller of account or chattel paper with respect to creditors and
25purchasers
. (1) Seller retains no interest. A debtor that has sold an account,

1chattel paper, payment intangible, or promissory note does not retain a legal or
2equitable interest in the collateral sold.
AB111,87,7 3(2) Deemed rights of debtor if buyer's security interest unperfected. For
4purposes of determining the rights of creditors of, and purchasers for value of an
5account or chattel paper from, a debtor that has sold an account or chattel paper,
6while the buyer's security interest is unperfected, the debtor is deemed to have rights
7and title to the account or chattel paper identical to those the debtor sold.
AB111,87,13 8409.319 Rights and title of consignee with respect to creditors and
9purchasers
. (1) Consignee has consignor's rights. Except as otherwise provided
10in sub. (2), for purposes of determining the rights of creditors of, and purchasers for
11value of goods from, a consignee, while the goods are in the possession of the
12consignee, the consignee is deemed to have rights and title to the goods identical to
13those the consignor had or had power to transfer.
AB111,87,18 14(2) Applicability of other law. For purposes of determining the rights of a
15creditor of a consignee, law other than this chapter determines the rights and title
16of a consignee while goods are in the consignee's possession if, under this subchapter,
17a perfected security interest held by the consignor would have priority over the rights
18of the creditor.
AB111,87,23 19409.320 Buyer of goods. (1) Buyer in ordinary course of business. Except
20as otherwise provided in sub. (5), a buyer in ordinary course of business, other than
21a person buying farm products from a person engaged in farming operations, takes
22free of a security interest created by the buyer's seller, even if the security interest
23is perfected and the buyer knows of its existence.
AB111,88,2 24(2) Buyer of consumer goods. Except as otherwise provided in sub. (5), a buyer
25of goods from a person who used or bought the goods for use primarily for personal,

1family, or household purposes takes free of a security interest, even if perfected, if the
2buyer buys:
AB111,88,33 (a) Without knowledge of the security interest;
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