SB9, s. 20
11Section
20. 101.9213 (4) of the statutes is amended to read:
SB9,13,1312
101.9213
(4) An unperfected security interest is subordinate to the rights of
13persons described in s.
409.301 409.317.
SB9, s. 21
14Section
21. 101.9213 (5) of the statutes is amended to read:
SB9,13,2115
101.9213
(5) The rules of priority stated in s.
409.312, and 409.322, the other
16sections therein referred to,
and subch. III of ch. 409 shall, to the extent appropriate,
17apply to conflicting security interests in a manufactured home of a type for which a
18certificate of title is required, or in a previously certificated manufactured home, as
19defined in s. 101.9222 (1). A security interest perfected under this section or under
20s. 101.9222 (4) or (5) is a security interest perfected otherwise than by filing for
21purposes of s.
409.312 409.322.
SB9, s. 22
22Section
22. 101.9213 (6) of the statutes is amended to read:
SB9,14,323
101.9213
(6) The rules stated in
ss. 409.501 to 409.507 subch. VI of ch. 409
24governing the rights and duties of secured parties and debtors and the requirements
25for, and effect of, disposition of a manufactured home by a secured party, upon default
1shall, to the extent appropriate, govern the rights of secured parties and owners with
2respect to security interests in manufactured homes perfected under ss. 101.9202 to
3101.9218.
SB9, s. 23
4Section
23. 101.9213 (7) of the statutes is amended to read:
SB9,14,75
101.9213
(7) If a manufactured home is subject to a security interest when
6brought into this state, s.
409.103 (1), (2) and (3)
409.316 states the rules that apply
7to determine the validity and perfection of the security interest in this state.
SB9, s. 24
8Section
24. 101.9215 (1) of the statutes is amended to read:
SB9,14,159
101.9215
(1) A Except as otherwise provided in s. 409.308 (5), a secured party
10may assign, absolutely or otherwise, the party's security interest in the
11manufactured home to a person other than the owner without affecting the interest
12of the owner or the validity of the security interest, but any person without notice of
13the assignment is protected in dealing with the secured party as the holder of the
14security interest and the secured party remains liable for any obligations as a
15secured party until the assignee is named as secured party on the certificate.
SB9, s. 25
16Section
25. 101.9215 (2) of the statutes is amended to read:
SB9,14,2117
101.9215
(2) The Subject to s. 409.308 (5), the assignee may but need not, to
18perfect the assignment, have the certificate of title endorsed or issued with the
19assignee named as secured party, upon delivering to the department the certificate
20and an assignment by the secured party named in the certificate in the form that the
21department prescribes.
SB9, s. 26
22Section
26. 101.9218 (1) of the statutes is amended to read:
SB9,15,323
101.9218
(1) Method of perfecting exclusive. Except Subject to s. 409.311 (4)
24and except as provided in sub. (2), the method provided in ss. 101.921 to 101.9217
25of perfecting and giving notice of security interests subject to ss. 101.921 to 101.9217
1is exclusive. Security interests subject to ss. 101.921 to 101.9217 are exempt from
2the provisions of law that otherwise require or relate to the filing of instruments
3creating or evidencing security interests.
SB9, s. 27
4Section
27. 101.9222 (5) (b) of the statutes is amended to read:
SB9,15,85
101.9222
(5) (b) If a security interest in a previously certificated manufactured
6home was created, but was unperfected, under any other applicable law of this state
7on July 1, 2000, it may be perfected under par. (a)
, but such perfection dates only from
8the date of the department's receipt of the certificate.
SB9, s. 28
9Section
28. 109.09 (2) (b) 2. of the statutes is amended to read:
SB9,15,2010
109.09
(2) (b) 2. A lien under par. (a) upon personal property takes effect when
11the department of workforce development or employee files
a notice of the lien
with
12the department of financial institutions in the same manner, form, and place as
13financing statements are filed under subch. V of ch. 409 regarding debtors who are
14located in this state, pays the
same fee
specified provided in s.
409.403 (5) (b) to the
15department of financial institutions 409.525 for filing financing statements, and
16serves a copy of the notice on the employer by personal service in the same manner
17as a summons is served under s. 801.11 or by certified mail with a return receipt
18requested. The department of financial institutions shall place the notice of the lien
19in the same file as financing statements are filed under
ss. 409.401 and 409.402 20subch. V of ch. 409.
SB9, s. 29
21Section
29. 138.09 (7) (i) 2. of the statutes is amended to read:
SB9,15,2422
138.09
(7) (i) 2. An amount sufficient to cover the fee for filing the termination
23statement required by s.
409.404 409.513 on loans secured by merchandise other
24than a motor vehicle
, a manufactured home, or a boat; and
SB9, s. 30
25Section
30. 340.01 (56m) of the statutes is amended to read:
SB9,16,2
1340.01
(56m) "Secured party"
means a secured party as defined has the
2meaning given in s.
409.105 (1) (L) 409.102 (1) (rs).
SB9, s. 31
3Section
31. 340.01 (56n) of the statutes is amended to read:
SB9,16,54
340.01
(56n) "Security agreement"
means a security agreement as defined has
5the meaning given in s.
409.105 (1) (m) 409.102 (1) (s).
SB9, s. 32
6Section
32. 342.19 (2) of the statutes is amended to read:
SB9,16,137
342.19
(2) Except as provided in sub. (2m), a security interest is perfected by
8the delivery to the department of the existing certificate of title, if any, an application
9for a certificate of title containing the name and address of the secured party, and the
10required fee. It is perfected as of the
later of the time of its
creation if such delivery
11is completed within 10 days thereafter, and without regard to the limitations
12expressed in s. 409.301 (2); otherwise, as of the time of such delivery
or the time of
13the attachment of the security interest.
SB9, s. 33
14Section
33. 342.19 (3) of the statutes is amended to read:
SB9,16,1615
342.19
(3) An unperfected security interest is subordinate to the rights of
16persons described in
s. 409.301 ss. 409.317 and 409.323.
SB9, s. 34
17Section
34. 342.19 (4) of the statutes is amended to read:
SB9,16,2218
342.19
(4) The rules of priority stated in s.
409.312, and 409.322, the other
19sections therein referred to,
and subch. III of ch. 409 shall, to the extent appropriate,
20apply to conflicting security interests in a vehicle of a type for which a certificate of
21title is required. A security interest perfected under this section is a security interest
22perfected otherwise than by filing for purposes of
s. 409.312 subch. III of ch. 409.
SB9, s. 35
23Section
35. 342.19 (5) of the statutes is amended to read:
SB9,17,324
342.19
(5) The rules stated in
ss. 409.501 to 409.507 subch. VI of ch. 409
25governing the rights and duties of secured parties and debtors and the requirements
1for, and effect of, disposition of a vehicle by a secured party, upon default shall, to the
2extent appropriate, govern the rights of secured parties and owners with respect to
3security interests in vehicles perfected under this chapter.
SB9, s. 36
4Section
36. 342.19 (6) of the statutes is amended to read:
SB9,17,75
342.19
(6) If a vehicle is subject to a security interest when brought into this
6state, s.
409.103 (1), (2) and (3) state 409.316 states the rules which apply to
7determine the validity and perfection of the security interest in this state.
SB9, s. 37
8Section
37. 342.21 (1) of the statutes is amended to read:
SB9,17,159
342.21
(1) A Except as otherwise provided in s. 409.308 (5), a secured party
10may assign, absolutely or otherwise, the party's security interest in the vehicle to a
11person other than the owner without affecting the interest of the owner or the
12validity of the security interest, but any person without notice of the assignment is
13protected in dealing with the secured party as the holder of the security interest and
14the secured party remains liable for any obligations as a secured party until the
15assignee is named as secured party on the certificate.
SB9, s. 38
16Section
38. 342.21 (2) of the statutes is amended to read:
SB9,17,2117
342.21
(2) The Subject to s. 409.308 (5), the assignee may but need not, to
18perfect the assignment, have the certificate of title endorsed or issued with the
19assignee named as secured party, upon delivering to the department the certificate
20and an assignment by the secured party named in the certificate in the form the
21department prescribes.
SB9, s. 39
22Section
39. 342.24 of the statutes is amended to read:
SB9,18,2
23342.24 Method of perfecting exclusive.
The Subject to s. 409.311 (4), the 24method provided in this chapter of perfecting and giving notice of security interests
25subject to this chapter is exclusive. Security interests subject to this chapter are
1hereby exempted from the provisions of law which otherwise require or relate to the
2filing of instruments creating or evidencing security interests.
SB9, s. 40
3Section
40. 344.185 (3) (intro.) of the statutes is amended to read:
SB9,18,54
344.185
(3) (intro.) Notwithstanding
ss. 409.501 to 409.507 subch. VI of ch. 409 5and ch. 425:
SB9, s. 41
6Section
41. 401.105 (2) (e) of the statutes is repealed and recreated to read:
SB9,18,97
401.105
(2) (e) Sections 409.301 to 409.307 on law governing perfection, the
8effect of perfection or nonperfection, and the priority of security interests and
9agricultural liens.
SB9, s. 42
10Section
42. 401.201 (9) of the statutes is amended to read:
SB9,19,411
401.201
(9) "Buyer in ordinary course of business" means a person
who that
12buys goods in good faith
and, without knowledge that the sale
to the person is in
13violation of violates the
ownership rights
or security interest of a 3rd party of another
14person in the goods
buys, and in
the ordinary course from a person
, other than a
15pawnbroker, in the business of selling goods of that kind
but does not include a
16pawnbroker. All persons who sell minerals or the like (including oil and gas) at
17wellhead or minehead shall be deemed to be persons. A person buys goods in the
18ordinary course if the sale to the person comports with the usual or customary
19practices in the kind of business in which the seller is engaged or with the seller's own
20usual or customary practices. A person that sells oil, gas, or other minerals at the
21wellhead or minehead is a person in the business of selling goods of that kind.
22"Buying" A buyer in ordinary course of business may
be buy for cash
or, by exchange
23of other property
, or on secured or unsecured credit
, and
includes receiving may
24acquire goods or documents of title under a preexisting contract for sale
but does not
25include a transfer in bulk or as security for or in total or partial satisfaction of a
1money debt. Only a buyer that takes possession of the goods or has a right to recover
2the goods from the seller under ch. 402 may be a buyer in ordinary course of business.
3A person that acquires goods in a transfer in bulk or as security for or in total or
4partial satisfaction of a money debt is not a buyer in ordinary course of business.
SB9, s. 43
5Section
43. 401.201 (32) of the statutes is amended to read:
SB9,19,86
401.201
(32) "Purchase" includes taking by sale, discount, negotiation,
7mortgage, pledge, lien,
security interest, issue or reissue, gift or any other voluntary
8transaction creating an interest in property.
SB9, s. 44
9Section
44. 401.201 (37) (a) of the statutes is amended to read:
SB9,19,2510
401.201
(37) (a) "Security interest" means an interest in personal property or
11fixtures
that which secures payment or performance of an obligation.
The retention
12or reservation of title by a seller of goods notwithstanding shipment or delivery to the
13buyer is limited in effect to a reservation of a "security interest". The term also
14includes any interest of a
consignor and a buyer of accounts
or, chattel paper
, a
15payment intangible, or a promissory note in a transaction that is subject to ch. 409.
16The special property interest of a buyer of goods on identification of
such those goods
17to a contract for sale under s. 402.401 is not a
"security interest
", but a buyer may
18also acquire a
"security interest
" by complying with ch. 409.
Unless a lease or
19consignment is intended as security, reservation of title thereunder is not a "security
20interest" but a consignment is in any event subject to s. 402.326 Except as otherwise
21provided in s. 402.505, the right of a seller or lessor of goods under ch. 402 or 411 to
22retain or acquire possession of the goods is not a security interest, but a seller or
23lessor may also acquire a security interest by complying with ch. 409. The retention
24or reservation of title by a seller of goods notwithstanding shipment or delivery to the
25buyer under s. 402.401 is limited in effect to a reservation of a security interest.
SB9, s. 45
1Section
45. 402.103 (3) (d) of the statutes is amended to read:
SB9,20,22
402.103
(3) (d) "Consumer goods" — s.
409.109 409.102.
SB9, s. 46
3Section
46. 402.210 (3) of the statutes is renumbered 402.210 (4).
SB9, s. 47
4Section
47. 402.210 (3) of the statutes is created to read:
SB9,20,125
402.210
(3) The creation, attachment, perfection, or enforcement of a security
6interest in the seller's interest under a contract is not a transfer that materially
7changes the duty of or increases materially the burden or risk imposed on the buyer
8or impairs materially the buyer's chance of obtaining return performance within the
9purview of sub. (2) unless, and then only to the extent that, enforcement actually
10results in a delegation of material performance of the seller. Even in that event, the
11creation, attachment, perfection, and enforcement of the security interest remain
12effective, but:
SB9,20,1413
(a) The seller is liable to the buyer for damages caused by the delegation to the
14extent that the damages could not reasonably be prevented by the buyer; and
SB9,20,1715
(b) A court having jurisdiction may grant other appropriate relief, including
16cancellation of the contract for sale or an injunction against enforcement of the
17security interest or consummation of the enforcement.
SB9, s. 48
18Section
48. 402.210 (4) of the statutes is renumbered 402.210 (5).
SB9, s. 49
19Section
49. 402.210 (5) of the statutes is renumbered 402.210 (6).
SB9, s. 50
20Section
50. 402.326 (title) of the statutes is amended to read:
SB9,20,22
21402.326 (title)
Sale on approval and sale or return; consignment sales
22and rights of creditors.
SB9, s. 51
23Section
51. 402.326 (2) of the statutes is amended to read:
SB9,21,3
1402.326
(2) Except as provided in sub. (3), goods Goods held on approval are
2not subject to the claims of the buyer's creditors until acceptance; goods held on sale
3or return are subject to such claims while in the buyer's possession.
SB9, s. 52
4Section
52. 402.326 (3) of the statutes is repealed.
SB9, s. 53
5Section
53. 402.502 (title) of the statutes is amended to read:
SB9,21,7
6402.502 (title)
Buyer's right to goods on seller's repudiation, failure to
7deliver, or insolvency.
SB9, s. 54
8Section
54. 402.502 (1) of the statutes is renumbered 402.502 (1) (intro.) and
9amended to read:
SB9,21,1310
402.502
(1) (intro.) Subject to
sub.
subs. (2)
and (3) and even though the goods
11have not been shipped a buyer who has paid a part or all of the price of goods in which
12the buyer has a special property under s. 402.501 may on making and keeping good
13a tender of any unpaid portion of their price recover them from the seller if
:
SB9,21,15
14(b) In all cases, the seller becomes insolvent within 10 days after receipt of the
15first
instalment installment on their price.
SB9, s. 55
16Section
55. 402.502 (1) (a) of the statutes is created to read:
SB9,21,1817
402.502
(1) (a) In the case of goods bought for personal, family, or household
18purposes, the seller repudiates or fails to deliver as required by the contract; or
SB9, s. 56
19Section
56. 402.502 (2) of the statutes is renumbered 402.502 (3).
SB9, s. 57
20Section
57. 402.502 (2) of the statutes is created to read:
SB9,21,2321
402.502
(2) The buyer's right to recover the goods under sub. (1) (a) vests upon
22acquisition of a special property, even if the seller had not then repudiated or failed
23to deliver.
SB9, s. 58
24Section
58. 402.716 (3) of the statutes is amended to read:
SB9,22,7
1402.716
(3) The buyer has a right of replevin for goods identified to the contract
2if after reasonable effort the buyer is unable to effect cover for such goods or the
3circumstances reasonably indicate that such effort will be unavailing or if the goods
4have been shipped under reservation and satisfaction of the security interest in them
5has been made or tendered.
In the case of goods bought for personal, family, or
6household purposes, the buyer's right of replevin vests upon acquisition of a special
7property, even if the seller had not then repudiated or failed to deliver.
SB9, s. 59
8Section
59. 405.118 of the statutes is created to read:
SB9,22,12
9405.118 Security interest of issuer or nominated person. (1) An issuer
10or nominated person has a security interest in a document presented under a letter
11of credit to the extent that the issuer or nominated person honors or gives value for
12the presentation.
SB9,22,16
13(2) So long as and to the extent that an issuer or nominated person has not been
14reimbursed or has not otherwise recovered the value given with respect to a security
15interest in a document under sub. (1), the security interest continues and is subject
16to ch. 409, but:
SB9,22,1817
(a) A security agreement is not necessary to make the security interest
18enforceable under s. 409.203 (2) (c);
SB9,22,2019
(b) If the document is presented in a medium other than a written or other
20tangible medium, the security interest is perfected; and
SB9,22,2521
(c) If the document is presented in a written or other tangible medium and is
22not a certificated security, chattel paper, a document of title, an instrument, or a
23letter of credit, the security interest is perfected and has priority over a conflicting
24security interest in the document so long as the debtor does not have possession of
25the document.
SB9, s. 60
1Section
60. 406.102 (1) of the statutes is amended to read:
SB9,23,42
406.102
(1) A "bulk transfer" is any transfer in bulk and not in the ordinary
3course of the transferor's business of a major part in value of the inventory
(s.
4409.109), as defined in s. 409.102 (1) (Ls), of an enterprise subject to this chapter.
SB9, s. 61
5Section
61. 406.102 (2) of the statutes is amended to read:
SB9,23,86
406.102
(2) A transfer of a substantial part of the equipment
(s. 409.109), as
7defined in s. 409.102 (1) (i), of such an enterprise is a bulk transfer if it is made in
8connection with a bulk transfer of inventory, but not otherwise.
SB9, s. 62
9Section
62. 407.503 (1) (a) of the statutes is amended to read:
SB9,23,1310
407.503
(1) (a) Delivered or entrusted them or any document of title covering
11them to the bailor or the bailor's nominee with actual or apparent authority to ship,
12store
, or sell or with power to obtain delivery under s. 407.403 or with power of
13disposition under
ss. s. 402.403 or
409.307 409.320 or other statute or rule of law; nor
SB9, s. 63
14Section
63. 408.103 (6) of the statutes is amended to read: