AB954-ASA1,3,2323 218.01 (1) (qt) "Prospective lessor" has the meaning given in s. 429.104 (21m).
AB954-ASA1, s. 13 24Section 13. 218.01 (1) (v) of the statutes is amended to read:
AB954-ASA1,4,7
1218.01 (1) (v) "Sales finance company" means and includes any person, firm or
2corporation engaging in the business, in whole or in part, of acquiring by purchase
3or by loan on the security thereof, or otherwise, retail instalment contracts or
4consumer leases
from retail sellers or lessors in this state, including any motor
5vehicle dealer who sells or leases any motor vehicle on an instalment contract or
6consumer lease
or acquires any retail instalment contracts in the dealer's retail sales
7or leases of motor vehicles.
AB954-ASA1, s. 14 8Section 14. 218.01 (1a) of the statutes, as affected by 1995 Wisconsin Act 27,
9is amended to read:
AB954-ASA1,4,2410 218.01 (1a) Authority of licensors. The department of transportation shall
11issue the licenses provided for in sub. (2) (d) 1. to 6. and have supervision over the
12licensees thereunder in respect to all the provisions of this section, except only as to
13such matters as relate to the sale of motor vehicles on retail instalment contracts and
14the financing and servicing of such contracts and as to such matters as relate to
15prelease agreements under sub. (6x) and consumer leases under chs. 421 to 427 and
16429
, over which matter the division of banking shall have jurisdiction and control,
17and the division of banking shall issue the licenses to sales finance companies.
18Either licensor hereunder shall, upon request, furnish the other licensor with any
19information it may have in respect to any licensee or applicant for license or any
20transaction in which such licensee or applicant may be a party or be interested. No
21license shall be issued under sub. (2) (d) 1. and 8. until both licensors have approved
22the application. The suspension or revocation of either of such licenses shall
23automatically likewise suspend or revoke the other license; and such suspension or
24revocation shall be certified by the licensor ordering it to the other licensor.
AB954-ASA1, s. 15
1Section 15. 218.01 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
2section 5843, is amended to read:
AB954-ASA1,5,173 218.01 (2) (b) Application for license shall be made to the licensor, at such time,
4in such form and with such information as the licensor shall require and shall be
5accompanied by the required fees. An applicant for a sales finance company license,
6other than a motor vehicle dealer, shall pay to the division of banking a
7nonrefundable $300 investigation fee in addition to the license fee under par. (dr).
8If the cost of an investigation exceeds $300, the applicant shall, upon demand of the
9division of banking, pay the amount by which the cost of the investigation exceeds
10the nonrefundable fee. A licensee is not required to pay an investigation fee for the
11renewal of a license. The licensor may require the applicant to provide information
12relating to any pertinent matter that is commensurate with the safeguarding of the
13public interest in the locality in which the applicant proposes to engage in business,
14except that information relating to the applicant's solvency and financial standing
15may not be required for motor vehicle dealers except as provided in par. (h) 1. The
16information provided may be considered by the licensor in determining the fitness
17of the applicant to engage in business as set forth in this section.
AB954-ASA1, s. 16 18Section 16. 218.01 (2) (bb) of the statutes, as affected by 1995 Wisconsin Act
1927
, is renumbered 218.01 (2) (bb) 1.
AB954-ASA1, s. 17 20Section 17. 218.01 (2) (bb) 2. of the statutes is created to read:
AB954-ASA1,6,321 218.01 (2) (bb) 2. A sales finance company or an applicant for a sales finance
22company license shall provide and maintain in force a bond or irrevocable letter of
23credit of not less than $25,000 issued by a surety company licensed to do business in
24this state or a federally insured financial institution, as defined in s. 705.01 (3). The
25bond or letter of credit shall be payable to the state of Wisconsin for the use of the

1state and of any person who sustains a loss because of an act of a sales finance
2company that constitutes grounds for the suspension or revocation of a license under
3this section.
AB954-ASA1, s. 18 4Section 18. 218.01 (2) (d) 8. b. of the statutes, as affected by 1995 Wisconsin
5Act 27
, is amended to read:
AB954-ASA1,6,96 218.01 (2) (d) 8. b. For motor vehicle dealers that operate as a sales finance
7company or that carry or retain time sales retail instalment contracts or consumer
8leases
for more than 30 days, to the division of banking, the same as for sales finance
9companies under par. (dr), except for gross volume of $100,000 or less, $50.
AB954-ASA1, s. 19 10Section 19. 218.01 (2) (dr) of the statutes, as affected by 1995 Wisconsin Act
1127
, is amended to read:
AB954-ASA1,6,2112 218.01 (2) (dr) The fee for licenses for sales finance companies, except as
13provided in par. (d) 8.,
for each calendar year, or part of a calendar year, is based on
14the gross volume of purchases of retail sales instalment contracts and consumer
15leases
of motor vehicles sold or leased in this state for the 12 months immediately
16preceding October 31 of the year in which the application for license is made, as
17follows: On a gross volume of $100,000 or less, $50; and on each $100,000 or part
18thereof over $100,000, an additional $15. No extra charge shall be made for branch
19licenses for sales finance companies. Gross volume shall be based on the unpaid
20balance of the retail instalment contracts and the base lease payments, as defined
21in s. 429.104 (4), of the consumer leases
.
AB954-ASA1, s. 20 22Section 20. 218.01 (2) (h) 2. of the statutes, as affected by 1995 Wisconsin Act
2327
, is amended to read:
AB954-ASA1,7,1224 218.01 (2) (h) 2. Provided the licensor has reasonable cause to doubt the
25financial responsibility of the applicant or licensee or the compliance by the

1applicant or licensee with this section, the licensor may require the applicant or
2licensee to furnish and maintain a bond in the form, amount and with the sureties
3it approves, but not less than $5,000, nor more than $100,000, conditioned upon the
4applicant or licensee complying with the statutes applicable to the licensee and as
5indemnity for any loss sustained by any person by reason of any acts of the licensee
6constituting grounds for suspension or revocation of the license under this section.
7The bonds shall be executed in the name of the department of transportation for the
8benefit of any aggrieved parties; provided that the aggregate liability of the surety
9to all such parties shall, in no event, exceed the amount of the bond. The bonding
10requirements in this subdivision shall not apply to manufacturers, factory branches,
11and their agents and is in addition to the bond or letter of credit required of a motor
12vehicle dealer under par. (bb) 1.
AB954-ASA1, s. 21 13Section 21. 218.01 (2) (k) 3. of the statutes is amended to read:
AB954-ASA1,7,1514 218.01 (2) (k) 3. Has had experience or training in, or is otherwise qualified for,
15selling or leasing motor vehicles.
AB954-ASA1, s. 22 16Section 22. 218.01 (2) (k) 5. of the statutes is amended to read:
AB954-ASA1,7,1817 218.01 (2) (k) 5. Is reasonably familiar with the motor vehicle sales or consumer
18lease
laws or contracts that the applicant is proposing to solicit, negotiate or effect.
AB954-ASA1, s. 23 19Section 23. 218.01 (3) (a) 5. of the statutes is amended to read:
AB954-ASA1,7,2120 218.01 (3) (a) 5. Wilfully defrauding any retail buyer , lessee or prospective
21lessee
to the buyer's, lessee's or prospective lessee's damage.
AB954-ASA1, s. 24 22Section 24. 218.01 (3) (a) 6. of the statutes is amended to read:
AB954-ASA1,7,2423 218.01 (3) (a) 6. Wilful failure to perform any written agreement with any retail
24buyer, lessee or prospective lessee.
AB954-ASA1, s. 25 25Section 25. 218.01 (3) (a) 8. of the statutes is amended to read:
AB954-ASA1,8,2
1218.01 (3) (a) 8. Having made a fraudulent sale, consumer lease, prelease
2agreement,
transaction or repossession.
AB954-ASA1, s. 26 3Section 26. 218.01 (3) (a) 9. of the statutes is amended to read:
AB954-ASA1,8,74 218.01 (3) (a) 9. Fraudulent misrepresentation, circumvention or concealment
5through whatsoever subterfuge or device of any of the material particulars or the
6nature thereof required hereunder to be stated or furnished to the retail buyer, lessee
7or prospective lessee
.
AB954-ASA1, s. 27 8Section 27. 218.01 (3) (a) 10. of the statutes is amended to read:
AB954-ASA1,8,129 218.01 (3) (a) 10. Employment of fraudulent devices, methods or practices in
10connection with compliance with the statutes with respect to the retaking of goods
11under retail instalment contracts or consumer leases and the redemption and resale
12or subsequent lease of such goods.
AB954-ASA1, s. 28 13Section 28. 218.01 (3) (a) 13. of the statutes is amended to read:
AB954-ASA1,8,1514 218.01 (3) (a) 13. Having sold a retail instalment contract or consumer lease
15to a sales finance company not licensed hereunder.
AB954-ASA1, s. 29 16Section 29. 218.01 (3) (a) 14. of the statutes is amended to read:
AB954-ASA1,8,1817 218.01 (3) (a) 14. Having violated any law relating to the sale, lease,
18distribution or financing of motor vehicles.
AB954-ASA1, s. 30 19Section 30. 218.01 (3) (a) 18. of the statutes is amended to read:
AB954-ASA1,9,520 218.01 (3) (a) 18. Having accepted an order or contract of purchase or a contract
21from a buyer or a consumer lease or prelease agreement from a lessee or prospective
22lessee
if such arrangement results in the practice of bushing. For the purpose of this
23section, "bushing" means, with respect to an order or contract of purchase, the
24practice of increasing the selling price of a motor vehicle above that originally quoted
25the purchaser as evidenced by a purchase order or contract which has been signed

1by both the purchaser and dealer licensee and, with respect to a consumer lease or
2prelease agreement, the practice of increasing the capitalized cost above that
3originally quoted the lessee or prospective lessee as evidenced by a consumer lease
4or prelease agreement which has been signed by both the lessee or prospective lessee
5and the dealer licensee
.
AB954-ASA1, s. 31 6Section 31. 218.01 (3) (a) 19. of the statutes is amended to read:
AB954-ASA1,9,117 218.01 (3) (a) 19. Having advertised, printed, displayed, published,
8distributed, broadcast or televised or caused or permitted to be advertised, printed,
9displayed, published, distributed, broadcast or televised in any manner whatsoever,
10any statement or representation with regard to the sale, lease or financing of motor
11vehicles which is false, deceptive or misleading.
AB954-ASA1, s. 32 12Section 32. 218.01 (3) (a) 20. of the statutes is amended to read:
AB954-ASA1,9,1913 218.01 (3) (a) 20. Having set up, promoted or aided in the promotion of a plan
14by which motor vehicles are sold or leased to a person for a consideration and upon
15the further consideration that the purchaser or lessee agrees to secure one or more
16persons to participate in the plan by respectively making a similar purchase or lease
17and in turn agreeing to secure one or more persons likewise to join in said plan, each
18purchaser or lessee being given the right to secure money, credits, goods or something
19of value, depending upon the number of persons joining in the plan.
AB954-ASA1, s. 33 20Section 33. 218.01 (3) (a) 21. of the statutes is amended to read:
AB954-ASA1,9,2521 218.01 (3) (a) 21. Being a dealer who keeps open the dealer's place of business
22on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing
23in this subdivision shall apply to any person who conscientiously believes that the
247th day of the week, from sunset Friday to sunset Saturday, should be observed as
25the Sabbath and who actually refrains from conducting or engaging in the business

1of buying, leasing, selling or offering for lease or sale motor vehicles, or performing
2other secular business on that day.
AB954-ASA1, s. 34 3Section 34. 218.01 (3) (a) 25. of the statutes is amended to read:
AB954-ASA1,10,44 218.01 (3) (a) 25. Having violated chs. 421 to 427 or 429.
AB954-ASA1, s. 35 5Section 35. 218.01 (3) (a) 29. of the statutes is amended to read:
AB954-ASA1,10,86 218.01 (3) (a) 29. Being an inactive business, as evidenced by 3 or less motor
7vehicle purchases and sales or consumer leases during the prior year licensing
8period.
AB954-ASA1, s. 36 9Section 36. 218.01 (3) (bf) 1. of the statutes, as affected by 1995 Wisconsin Act
1027
, is renumbered 218.01 (3) (bf) 1. a. and amended to read:
AB954-ASA1,10,2011 218.01 (3) (bf) 1. a. The Except as provided in subd. 1. b., the department of
12transportation shall not license as a dealer an applicant for the sale or lease of motor
13vehicles at retail unless such applicant owns or leases a vehicle display lot and a
14permanent building wherein there are facilities to display automobiles and
15motorcycles
motor vehicles and facilities to repair functional and nonfunctional
16parts of motor vehicles and where replacement parts, repair tools and equipment to
17service motor vehicles are kept, and at which place of business shall be kept and
18maintained the books, records and files necessary to conduct the business. A
19residence, tent or temporary stand is not a sufficiently permanent place of business
20within the meaning of this paragraph.
AB954-ASA1, s. 37 21Section 37. 218.01 (3) (bf) 1. b. of the statutes is created to read:
AB954-ASA1,11,222 218.01 (3) (bf) 1. b. The requirements in subd. 1. a. that an applicant own or
23lease a vehicle display lot and that the permanent building owned or leased by the
24applicant contain facilities to display motor vehicles do not apply to persons who are

1engaged only in the leasing of motor vehicles and who do not maintain an inventory
2of motor vehicles offered for lease.
AB954-ASA1, s. 38 3Section 38. 218.01 (5) (a) of the statutes is amended to read:
AB954-ASA1,11,124 218.01 (5) (a) The licensor shall promote the interests of retail buyers and
5lessees
of motor vehicles relating to default, delinquency, repossession or collection
6charges and the refund of the finance charge and insurance premium on prepayment
7of the instalment contract or consumer lease. It may define unfair practices in the
8motor vehicle industry and trade between licensees or between any licensees and
9retail buyers, lessees or prospective lessees of motor vehicles, but may not limit the
10price at which licensees may sell, assign or transfer receivables, contracts or other
11evidence of any obligation arising out of an instalment sale or consumer lease made
12under this section.
AB954-ASA1, s. 39 13Section 39. 218.01 (6) (b) (intro.) of the statutes, as affected by 1995 Wisconsin
14Act 27
, is renumbered 218.01 (6) (b) and amended to read:
AB954-ASA1,12,515 218.01 (6) (b) Prior to or concurrent with any instalment sale, the seller shall
16deliver to the buyer a written statement describing clearly the motor vehicle sold to
17the buyer, the cash sale price, the cash paid down by the buyer, the amount credited
18the buyer for any trade-in and a description of the trade-in, the cost to the retail
19buyer of any insurance, the amount financed which may include the cost of
20insurance, sales and use taxes, the amount of the finance charge, the amount of any
21other charge specifying its purpose, the total of payments due from the buyer, the
22terms of the payment of such total, the amount and date of each payment necessary
23finally to pay the total and a summary of any insurance coverage to be effected. The
24division of banking may determine the form of the statement. If a written order is
25taken from a prospective purchaser in connection with any instalment sale, the

1written statement shall be given to the purchaser prior to or concurrent with the
2signing of the order by the purchaser. The finance charge in a retail instalment sale
3made prior to April 6, 1980, however computed, excluding the cost of insurance shall
4not exceed the amount computed on the basis of the following annual percentage
5rates:
AB954-ASA1, s. 40 6Section 40. 218.01 (6) (b) 1. to 8. of the statutes are repealed.
AB954-ASA1, s. 41 7Section 41. 218.01 (6) (bm) and (bn) of the statutes are repealed.
AB954-ASA1, s. 42 8Section 42. 218.01 (6) (d) of the statutes is amended to read:
AB954-ASA1,12,129 218.01 (6) (d) A violation of par. (a), (b), (bm), (bn), or (bp) or (k) bars recovery
10of any finance charge by the seller, or an assignee of the seller who, at the time of the
11assignment, had knowledge of the violation, in any suit upon a sales contract arising
12from the sale where the violation occurred.
AB954-ASA1, s. 43 13Section 43. 218.01 (6) (j) of the statutes is repealed.
AB954-ASA1, s. 44 14Section 44. 218.01 (6x) of the statutes is created to read:
AB954-ASA1,12,1715 218.01 (6x) Prelease agreements. (a) Every prelease agreement shall be in
16writing, which shall contain all of the agreements of the parties with respect to
17entering into a consumer lease and shall be signed by both parties.
AB954-ASA1,12,1918 (b) No prelease agreement shall be binding on a prospective lessee unless all
19of the following apply:
AB954-ASA1,12,2220 1. All of the information required to be disclosed in a consumer lease under s.
21429.203 (3) and (4) is disclosed in writing to the prospective lessee before the
22execution of the prelease agreement by the prospective lessee.
AB954-ASA1,12,2523 2. The prelease agreement contains, directly above the place for the prospective
24lessee's signature, a notice in substantially the following language in bold-faced
25capital letters of not less than 10-point type:
AB954-ASA1,13,1
1NOTICE TO PROSPECTIVE LESSEE
AB954-ASA1,13,82 a. THIS IS A BINDING PRELEASE AGREEMENT. BY SIGNING THIS
3PRELEASE AGREEMENT, YOU WILL BECOME OBLIGATED TO ENTER INTO
4AN AGREEMENT WITH THE PROSPECTIVE LESSOR TO LEASE THE MOTOR
5VEHICLE DESCRIBED IN THIS PRELEASE AGREEMENT WHEN IT IS
6AVAILABLE AND READY TO BE DELIVERED TO YOU, UPON LEASE TERMS
7DISCLOSED IN THIS PRELEASE AGREEMENT OR IN THE ATTACHED
8DISCLOSURE STATEMENT, IF ANY.
AB954-ASA1,13,109 b. DO NOT SIGN THIS PRELEASE AGREEMENT BEFORE YOU READ IT,
10INCLUDING THE WRITING ON THE REVERSE SIDE.
AB954-ASA1,13,1111 c. DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
AB954-ASA1,13,1312 d. YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU
13SIGN.
AB954-ASA1,13,2114 (c) An exact copy of the prelease agreement shall be furnished by the
15prospective lessor to the prospective lessee at the time that the prospective lessee
16signs the prelease agreement. The prospective lessee's copy of the prelease
17agreement shall contain the signature of the prospective lessor identical with the
18signature on the original prelease agreement. No prelease agreement shall be signed
19in blank except that a detailed description of the motor vehicle, including the serial
20or identification number, that is not available at the time of execution of the prelease
21agreement may be omitted.
AB954-ASA1,14,322 (d) A prospective lessor may cancel a prelease agreement that, with regard to
23the lease terms disclosed in the prelease agreement, is contingent upon approval of
24the prospective lessee's credit by a sales finance company to whom the prospective
25lessor intends to assign the consumer lease, if the prelease agreement contains a

1provision requiring the prospective lessor to give the prospective lessee written
2notice of such cancellation within 10 business days of execution of the prelease
3agreement and the notice is given to the prospective lessee.
AB954-ASA1,14,64 (e) No prelease agreement may contain a clause which, upon nonacceptance of
5the motor vehicle by the prospective lessee, would subject the prospective lessee to
6a penalty greater than 5% of the capitalized cost of the vehicle.
AB954-ASA1, s. 45 7Section 45. 218.01 (7b) of the statutes, as affected by 1995 Wisconsin Act 27,
8is amended to read:
AB954-ASA1,15,39 218.01 (7b) (title) Purchase or lease of motor vehicle by minor. No minor
10shall purchase or lease any motor vehicle unless the minor, at the time of purchase
11or lease, submits to the seller or lessor a statement verified before a person
12authorized to administer oaths and made and signed by either parent of the
13purchaser or lessee, if such parent has custody of the minor or, if neither parent has
14custody, then by the person having custody, setting forth that the purchaser or lessee
15has consent to purchase or lease the vehicle. The signature on the statement shall
16not impute any liability for the purchase price of the motor vehicle or for any
17payments under the consumer lease
to the consenting person. The statement shall
18not adversely affect any other arrangement for the assumption of liability for the
19purchase price or any lease payments which the consenting person may make. The
20If a motor vehicle is purchased by a minor, the signed statement shall accompany the
21application for a certificate of title and shall be filed by the department of
22transportation with the application. Failure to obtain the consent or to forward it,
23together
with the application for a certificate of title in the event of the purchase of
24a motor vehicle,
shall not void the contract of sale or consumer lease of a motor vehicle
25in the hands of an innocent holder, without notice, for value and in the ordinary

1course of business. Any person who sells or leases a motor vehicle to a minor with
2knowledge of such fact without procuring such a statement may be fined not more
3than $200 or imprisoned not more than 6 months or both.
AB954-ASA1, s. 46 4Section 46. 218.01 (9) (b) of the statutes is amended to read:
AB954-ASA1,15,85 218.01 (9) (b) Any retail buyer, lessee or prospective lessee suffering pecuniary
6loss because of a violation by a licensee of sub. (3) (a) 4., 5., 6., 8., 9., 10., 11., 18., 25.
7or 31. may recover damages for the loss in any court of competent jurisdiction
8together with costs, including reasonable attorney fees.
AB954-ASA1, s. 47 9Section 47. 218.04 (5) (a) 5. of the statutes is amended to read:
AB954-ASA1,15,1110 218.04 (5) (a) 5. The licensee or any officer or employe of it has violated chs. 421
11to 427 and 429.
AB954-ASA1, s. 48 12Section 48. 344.51 (title) of the statutes is amended to read:
AB954-ASA1,15,14 13344.51 (title) Financial responsibility for domestic rented or leased
14vehicles.
AB954-ASA1, s. 49 15Section 49. 344.51 (1) of the statutes is amended to read:
AB954-ASA1,16,216 344.51 (1) No person may for compensation rent or lease any motor vehicle to
17be operated by or with the consent of the person renting or leasing the vehicle unless
18there is filed with the department a good and sufficient bond or policy of insurance
19issued by an insurer authorized to do an automobile liability insurance or surety
20business in this state. The bond, policy or certificate shall provide that the insurer
21which issued it will be liable for damages caused by the negligent operation of the
22motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with
23this subsection, and no person acquiring an interest in any contract for the rental or
24leasing of a motor vehicle for which any other person has complied with this

1subsection, is liable for damages caused by the negligent operation of the motor
2vehicle by another person.
AB954-ASA1, s. 50 3Section 50. 344.51 (2) of the statutes is amended to read:
AB954-ASA1,16,94 344.51 (2) Any person failing to comply with this section is directly liable for
5all damages caused by the negligence of the person operating such rented or leased
6vehicle to the extent that such liability could have been established if this section had
7been complied with
, but such liability may not exceed the limits set forth in s. 344.01
8(2) (d) with respect to the acceptable limits of liability when furnishing proof of
9financial responsibility
.
AB954-ASA1, s. 51 10Section 51. 409.201 of the statutes is amended to read:
AB954-ASA1,16,17 11409.201 General validity of security interest. Except as otherwise
12provided by chs. 401 to 411 a security agreement is effective according to its terms
13between the parties, against purchasers of the collateral and against creditors.
14Nothing in this chapter validates any charge or practice illegal under any statute or
15regulation thereunder governing usury, small loans, retail instalment sales, or the
16like, or under chs. 421 to 427 and 429, or extends the application of any such statute
17or regulation to any transaction not otherwise subject thereto.
AB954-ASA1, s. 52 18Section 52. 409.203 (5) of the statutes is amended to read:
AB954-ASA1,16,2319 409.203 (5) A transaction, although subject to this chapter, is also subject to
20chs. 138, 421 to 427, and 429 and s. 182.025, or any other similar statute which may
21be applicable to the particular transaction, and in the case of conflict between this
22chapter and any such statute, such statute controls. Failure to comply with any
23applicable statute has only the effect which is specified therein.
AB954-ASA1, s. 53 24Section 53. 421.103 (2) of the statutes is amended to read:
Loading...
Loading...