297,36
Section 36
. 409.302 (1) (f) of the statutes is amended to read:
409.302 (1) (f) A security interest of a collecting bank (s. 404.210) or in securities (s. 408.321) or arising under ch. 402 or 411 (see s. 409.113) or covered in sub. (3);
297,37
Section 37
. 409.302 (1) (g) of the statutes is amended to read:
409.302 (1) (g) An assignment for the benefit of all the creditors of the transferor, and subsequent transfers by the assignee thereunder; or
297,38
Section 38
. 409.302 (1) (h) of the statutes is repealed and recreated to read:
409.302 (1) (h) A security interest in investment property which is perfected without filing under s. 409.115 or 409.116; or
297,39
Section 39
. 409.302 (1) (i) of the statutes is created to read:
409.302 (1) (i) A security interest created by a master lease entered into by the state under s. 16.76 (4).
297,40
Section 40
. 409.303 (1) of the statutes is amended to read:
409.303 (1) A security interest is perfected when it has attached and when all of the applicable steps required for perfection have been taken. Such steps are specified in ss. 409.115, 409.302, 409.304, 409.305 and 409.306. If such steps are taken before the security interest attaches, it is perfected at the time when it attaches.
297,41
Section 41
. 409.304 (1) of the statutes is amended to read:
409.304 (1) A security interest in chattel paper or negotiable documents may be perfected by filing. A security interest in money or instruments, other than certificated securities or instruments which constitute part of chattel paper, can be perfected only by the secured party's taking possession, except as provided in subs. (4) and (5) and s. 409.306 (2) and (3) on proceeds.
297,42
Section 42
. 409.304 (4) of the statutes is amended to read:
409.304 (4) A security interest in instruments,
other than certificated securities, or negotiable documents is perfected without filing or the taking of possession for a period of 21 days from the time it attaches to the extent that it arises for new value given under a written security agreement.
297,43
Section 43
. 409.304 (5) (intro.) of the statutes is amended to read:
409.304 (5) (intro.) A security interest remains perfected for a period of 21 days without filing where a secured party having a perfected security interest in an instrument (other than, a certificated security), a negotiable document or goods in possession of a bailee other than one who has issued a negotiable document therefor:
297,44
Section 44
. 409.304 (5) (b) of the statutes is amended to read:
409.304 (5) (b) Delivers the instrument or certificated security to the debtor for the purpose of ultimate sale or exchange or of presentation, collection, renewal or registration of transfer.
297,45
Section 45
. 409.305 of the statutes is amended to read:
409.305 When possession by secured party perfects security interest without filing. A security interest in letters of credit and advices of credit (s. 405.116 (2) (a)), goods, instruments (other than certificated securities), money, negotiable documents or chattel paper may be perfected by the secured party's taking possession of the collateral. If such collateral other than goods covered by a negotiable document is held by a bailee, the secured party is deemed to have possession from the time the bailee receives notification of the secured party's interest. A security interest is perfected by possession from the time possession is taken without relation back and continues only so long as possession is retained, unless otherwise specified in this chapter. The security interest may be otherwise perfected as provided in this chapter before or after the period of possession by the secured party.
297,46
Section 46
. 409.306 (1) of the statutes is amended to read:
409.306 (1) “Proceeds" includes whatever is received upon the sale, exchange, collection or other disposition of collateral or proceeds. Insurance payable by reason of loss or damage to the collateral is proceeds, except to the extent that it is payable to a person other than a party to the security agreement. Any payments or distributions made with respect to investment property collateral are proceeds. Money, checks, deposit accounts, and the like are “cash proceeds". All other proceeds are “noncash proceeds".
297,47
Section 47
. 409.306 (3) of the statutes is repealed and recreated to read:
409.306 (3) (a) Subject to sub. (3m), the security interest in proceeds is a continuously perfected security interest if the interest in the original collateral was perfected but it ceases to be a perfected security interest and becomes unperfected 10 days after receipt of the proceeds by the debtor unless:
1. A filed financing statement covers the original collateral and the proceeds are collateral in which a security interest may be perfected by filing in the office or offices where the financing statement has been filed and, if the proceeds are acquired with cash proceeds, the description of collateral in the financing statement indicates the types of property constituting the proceeds;
2. A filed financing statement covers the original collateral and the proceeds are identifiable cash proceeds;
3. The original collateral was investment property and the proceeds are identifiable cash proceeds; or
4. The security interest in the proceeds is perfected before the expiration of the 10-day period.
(b) Except as provided in this section, a security interest in proceeds may be perfected only by the methods or under the circumstances permitted in this chapter for original collateral of the same type.
297,48
Section 48
. 409.309 of the statutes is amended to read:
409.309 Protection of purchasers of instruments, documents and securities. Nothing in this chapter limits the rights of a holder in due course of a negotiable instrument (s. 403.302) or a holder to whom a negotiable document of title has been duly negotiated (s. 407.501) or a bona fide protected purchaser of a security (s. 408.302 408.303) and such holders or purchasers take priority over an earlier security interest even though perfected. Filing under this chapter does not constitute notice of the security interest to such holders or purchasers.
297,49
Section 49
. 409.312 (1) of the statutes is amended to read:
409.312 (1) The rules of priority stated in ss. 409.301 to 409.311 and 409.313 to 409.318 and in the following sections shall govern when applicable: s. 404.210 with respect to the security interests of collecting banks in items being collected, accompanying documents and proceeds; s. 409.103 on security interests related to other jurisdictions; s. 409.114 on consignments; and s. 409.115 on security interests in investment property.
297,50
Section 50
. 409.312 (7) of the statutes is amended to read:
409.312 (7) If future advances are made while a security interest is perfected by filing, the taking of possession, or under s. 408.321 on securities, 409.115 or 409.116 on investment property, the security interest has the same priority for the purposes of sub. (5) or s. 409.115 (5) with respect to the future advances as it does with respect to the first advance. If a commitment is made before or while the security interest is so perfected, the security interest has the same priority with respect to advances made pursuant thereto. In other cases a perfected security interest has priority from the date the advance is made.
297,51
Section 51
. 551.33 (6) of the statutes is amended to read:
551.33 (6) The division may by rule establish standards for the conduct of business by broker-dealers, agents, investment advisers and clearing corporations as defined in s. 408.102 (1) (c) (e).
297,52
Section 52
. 766.01 (9) (c) of the statutes is amended to read:
766.01 (9) (c) An uncertificated security, as defined under s. 408.102 (1) (h) (r), is “held" by the person identified as the registered owner of the security upon books maintained for that purpose by or on behalf of the issuer. If the registered owner of an uncertificated security is identified as a brokerage account, the security is “held" as provided under par. (b).
297,53
Section 53
.
Initial applicability.
(1) This act first applies to actions or proceedings commenced on the effective date of this subsection.
