AB549: Bill Text

AB549,7,16 409.316 (8) Effect on filed financing statement of change in governing law. The following rules apply to collateral to which a security interest attaches within 4 months after the debtor changes its location to another jurisdiction:

AB549,7,20 (a) A financing statement filed before the change pursuant to the law of the jurisdiction designated in s. 409.301 (1) or 409.305 (3) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.

AB549,8,3 (b) If a security interest perfected by a financing statement that is effective under par. (a) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in s. 409.301 (1) or 409.305 (3) or the expiration of the 4-month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

AB549,8,7 (9) Effect of change in governing law on financing statement filed against original debtor. If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in s. 409.301 (1) or 409.305 (3) and the new debtor is located in another jurisdiction, the following rules apply:

AB549,8,12 (a) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within 4 months after, the new debtor becomes bound under s. 409.203 (4), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.

AB549,8,20 (b) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in s. 409.301 (1) or 409.305 (3) or the expiration of the 4-month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

AB549, s. 12 Section 12. 409.317 (2) and (4) of the statutes are amended to read:

AB549,9,2 409.317 (2) Buyers that receive delivery. Except as otherwise provided in sub. (5), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security certificate takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

AB549,9,8 (4) Licensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

AB549, s. 13 Section 13. 409.326 of the statutes is amended to read:

AB549,9,18 409.326 Priority of security interests created by new debtor. (1) Subordination of security interest created by new debtor. Subject to sub. (2), a security interest that is created by a new debtor which is in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that is effective solely under s. 409.508 in collateral in which a new debtor has or acquires rights would be ineffective to perfect the security interest but for the application of s. 409.316 (9) (a) or 409.508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement that is effective solely under s. 409.508.

AB549,9,25 (2) Priority under other provisions; multiple original debtors. The other provisions of this subchapter determine the priority among conflicting security interests in the same collateral perfected by filed financing statements that are effective solely under s. 409.508 described in sub. (1). However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.

AB549, s. 14 Section 14. 409.406 (5) of the statutes is amended to read:

AB549,10,5 409.406 (5) Inapplicability of sub. (4) to certain sales. Subsection (4) does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under s. 409.610 or an acceptance of collateral under s. 409.620.

AB549, s. 15 Section 15. 409.408 (2) of the statutes is amended to read:

AB549,10,11 409.408 (2) Applicability of sub. (1) to sales of certain rights to payment. Subsection (1) applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note, other than a sale pursuant to a disposition under s. 409.610 or an acceptance of collateral under s. 409.620.

AB549, s. 16 Section 16. 409.502 (3) (c) of the statutes is renumbered 409.502 (3) (c) (intro.) and amended to read:

AB549,10,15 409.502 (3) (c) (intro.) The record satisfies the requirements for a financing statement in this section other than an indication, but:

AB549,10,17 1. The record need not indicate that it is to be filed in the real property records; and

AB549, s. 17 Section 17. 409.502 (3) (c) 2. of the statutes is created to read:

AB549,10,22 409.502 (3) (c) 2. The record sufficiently provides the name of a debtor who is an individual if it provides the individual name of the debtor or the surname and first personal name of the debtor, even if the debtor is an individual to whom s. 409.503 (1) (dm) applies; and

AB549, s. 18 Section 18. 409.503 (1) (a) of the statutes is amended to read:

AB549,11,5 409.503 (1) (a) If Except as otherwise provided in par. (c), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name of the debtor indicated that is stated to be the registered organization's name on the public organic record of the debtor's most recently filed with or issued or enacted by the registered organization's jurisdiction of organization which shows the debtor to have been organized purports to state, amend, or restate the registered organization's name;

AB549, s. 19 Section 19. 409.503 (1) (b) of the statutes is amended to read:

AB549,11,11 409.503 (1) (b) If the debtor is a decedent's estate Subject to sub. (6), if the collateral is being administered by the personal representative of a decedent, only if the financing statement provides, as the name of the debtor, the name of the decedent and, in a separate part of the financing statement, indicates that the debtor is an estate collateral is being administered by a personal representative;

AB549, s. 20 Section 20. 409.503 (1) (c) (intro.) of the statutes is amended to read:

AB549,11,15 409.503 (1) (c) (intro.) If the debtor is a trust or a trustee acting with respect to property held in trust, only if the financing statement collateral is held in a trust that is not a registered organization, only if the financing statement:

AB549, s. 21 Section 21. 409.503 (1) (c) 1. and 2. of the statutes are repealed.

AB549, s. 22 Section 22. 409.503 (1) (c) 1m. and 2m. of the statutes are created to read:

AB549,11,18 409.503 (1) (c) 1m. Provides, as the name of the debtor:

AB549,11,20 a. If the organic record of the trust specifies a name for the trust, the name specified; or

AB549,11,22 b. If the organic record of the trust does not specify a name for the trust, the name of the settlor or testator; and

AB549,11,23 2m. In a separate part of the financing statement:

AB549,11,25 a. If the name is provided in accordance with subd. 1m. a., indicates that the collateral is held in a trust; or

AB549,12,4 b. If the name is provided in accordance with subd. 1m. b., provides additional information sufficient to distinguish the trust from other trusts having one or more of the same settlors or the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates;

AB549, s. 23 Section 23. 409.503 (1) (d) of the statutes is renumbered 409.503 (1) (f), and 409.503 (1) (f) 1. and 2., as renumbered, are amended to read:

AB549,12,8 409.503 (1) (f) 1. If the debtor has a name, only if it the financing statement provides the individual or organizational name of the debtor; and

AB549,12,12 2. If the debtor does not have a name, only if it the financing statement provides the names of the partners, members, associates, or other persons comprising the debtor, in a manner that each name provided would be sufficient if the person named were the debtor.

AB549, s. 24 Section 24. 409.503 (1) (dm) and (e) of the statutes are created to read:

AB549,12,17 409.503 (1) (dm) Subject to sub. (7), if the debtor is an individual to whom this state has issued an operator's license under ch. 343 or identification card under s. 343.50 that has not expired, only if the financing statement provides the name of the individual which is indicated on the operator's license or identification card;

AB549,12,20 (e) If the debtor is an individual to whom par. (dm) does not apply, only if the financing statement provides the individual name of the debtor or the surname and first personal name of the debtor; and

AB549, s. 25 Section 25. 409.503 (2) (b) of the statutes is amended to read:

AB549,12,23 409.503 (2) (b) Unless required under sub. (1) (d) (f) 2., names of partners, members, associates, or other persons comprising the debtor.

AB549, s. 26 Section 26. 409.503 (6), (7) and (8) of the statutes are created to read:

AB549,13,4 409.503 (6) Name of decedent. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the "name of the decedent" under sub. (1) (b).

AB549,13,8 (7) Multiple licenses or identification cards. If this state has issued to an individual more than one operator's license under ch. 343 or identification card under s. 343.50 of a kind described in sub. (1) (dm), the one that was issued most recently is the one to which sub. (1) (dm) refers.

AB549,13,9 (8) Definition. In this section, the "name of the settlor or testator" means:

AB549,13,13 (a) If the settlor is a registered organization, the name that is stated to be the settlor's name on the public organic record most recently filed with or issued or enacted by the settlor's jurisdiction of organization which purports to state, amend, or restate the settlor's name;

AB549,13,15 (b) In other cases, the name of the settlor or testator indicated in the trust's organic record.

AB549, s. 27 Section 27. 409.507 (3) of the statutes is amended to read:

AB549,13,20 409.507 (3) Change in debtor's name. If a debtor so changes its the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under s. 409.503 (1) so that the financing statement becomes seriously misleading under s. 409.506:

AB549,13,23 (a) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within 4 months after, the change filed financing statement becomes seriously misleading; and

AB549,14,3 (b) The financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than 4 months after the change filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within 4 months after the change financing statement became seriously misleading.

AB549, s. 28 Section 28. 409.515 (6) of the statutes is amended to read:

AB549,14,7 409.515 (6) Transmitting utility financing statement. If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed.

AB549, s. 29 Section 29. 409.516 (2) (c) 2. (intro.) of the statutes is amended to read:

AB549,14,10 409.516 (2) (c) 2. (intro.) In the case of an amendment or correction information statement, the record:

AB549, s. 30 Section 30. 409.516 (2) (c) 3. of the statutes is amended to read:

AB549,14,16 409.516 (2) (c) 3. In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's last name surname; or

AB549, s. 31 Section 31. 409.516 (2) (e) 1. of the statutes is amended to read:

AB549,14,18 409.516 (2) (e) 1. Provide a mailing address for the debtor; or

AB549, s. 32 Section 32. 409.516 (2) (e) 2. of the statutes is amended to read:

AB549,14,21 409.516 (2) (e) 2. Indicate whether the name provided as the name of the debtor is the name of an individual or an organization; or

AB549, s. 33 Section 33. 409.516 (2) (e) 3. of the statutes is repealed.

AB549, s. 34 Section 34. 409.518 (1) of the statutes is amended to read:

AB549,15,2 409.518 (1) Correction statement Statement with respect to record indexed under person's name. A person may file in the filing office a correction an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.

AB549, s. 35 Section 35. 409.518 (2) (intro.), (a) 2. and (b) of the statutes are amended to read:

AB549,15,6 409.518 (2) Sufficiency of correction Contents of statement under sub. (1). (intro.) A correction An information statement under sub. (1) must:

AB549,15,10 (a) 2. If the correction information statement relates to a record filed or recorded in a filing office described in s. 409.501 (1) (a), the date on which the initial financing statement was filed or recorded and the information specified in s. 409.502 (2);

AB549,15,11 (b) Indicate that it is a correction an information statement; and

AB549, s. 36 Section 36. 409.518 (3) of the statutes is renumbered 409.518 (5) and amended to read:

AB549,15,16 409.518 (5) Record not affected by correction information statement. The filing of a correction an information statement does not affect the effectiveness of an initial financing statement or other filed record.

AB549, s. 37 Section 37. 409.518 (3m) and (4) of the statutes are created to read:

AB549,15,22 409.518 (3m) Statement by secured party of record. A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under s. 409.509 (4).

AB549,15,24 (4) Contents of statement under sub. (3m). An information statement under sub. (3m) must:

AB549,15,25 (a) Identify the record to which it relates by:

AB549,16,2 1. The file number assigned to the initial financing statement to which the record relates; and

AB549,16,5 2. If the information statement relates to a record filed or recorded in a filing office described in s. 409.501 (1) (a), the date that the initial financing statement was filed or recorded and the information specified in s. 409.502 (2);

AB549,16,6 (b) Indicate that it is an information statement; and

AB549,16,8 (c) Provide the basis for the person's belief that the person that filed the record was not entitled to do so under s. 409.509 (4).

AB549, s. 38 Section 38. 409.521 (2) (form) of the statutes is repealed and recreated to read:

AB549, s. 39 Section 39. 409.521 (3) (form) of the statutes is repealed and recreated to read:

AB549, s. 40 Section 40. 409.607 (2) (b) 1. of the statutes is amended to read:

AB549,22,3 409.607 (2) (b) 1. A default has occurred with respect to the obligation secured by the mortgage; and

AB549, s. 41 Section 41. 409.625 (3) (title) of the statutes is amended to read: