Amendment SSA1-SB9

LRBs0082/1

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2001 - 2002 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO 2001 SENATE BILL 9

May 3, 2001 - Offered by Committee onJudiciary, Consumer Affairs, and Campaign Finance Reform.

SB9-SSA1,2,14 An Act to repeal 402.326 (3), 411.303 (3), 411.307 (2) (b) and (c) and 411.307 (4); to renumber 402.210 (3), 402.210 (4), 402.210 (5), 402.502 (2) and 411.303 (6), (7) and (8); to renumber and amend 402.502 (1), 408.110 (5) (b), 408.110 (5) (c), 408.110 (5) (d), 408.301 (1) (c), 408.510 (3), 411.303 (4) and 411.303 (5); to consolidate, renumber and amend 411.307 (2) (intro.) and (a); to amend 30.57 (3), 30.57 (5), 30.57 (6), 30.57 (7), 30.57 (8), 30.573 (1), 30.573 (2), 30.576 (1), 50.05 (15) (f), 51.42 (3) (d) 12. f., 59.43 (1) (L), 59.43 (1) (m), 59.43 (1) (n), 59.43 (1) (o), 59.43 (2) (ag) 2., 59.43 (2) (d), 100.201 (2) (d), 100.201 (2) (e) 1., 101.9213 (2), 101.9213 (4), 101.9213 (5), 101.9213 (6), 101.9213 (7), 101.9215 (1), 101.9215 (2), 101.9218 (1), 101.9222 (5) (b), 109.09 (2) (b) 2., 138.09 (7) (i) 2., 340.01 (56m), 340.01 (56n), 342.19 (2), 342.19 (3), 342.19 (4), 342.19 (5), 342.19 (6), 342.21 (1), 342.21 (2), 342.24, 344.185 (3) (intro.), 401.201 (9), 401.201 (32), 401.201 (37) (a), 402.103 (3) (d), 402.326 (title), 402.326 (2), 402.502 (title), 402.716 (3), 406.102 (1), 406.102 (2), 407.503 (1) (a), 408.103 (6), 408.106 (4) (a) and (b), 408.106 (6), 408.110 (5) (a), 408.302 (1), 408.510 (1), 411.103 (3) (a), 411.103 (3) (d), 411.103 (3) (e), 411.103 (3) (f), 411.103 (3) (h), 411.103 (3) (j), 411.103 (3) (L), 411.103 (3) (m), 411.303 (1) and (2), 411.309 (1) (c), 421.301 (21), 422.413 (2r) (intro.), 422.413 (2r) (f), 425.105 (4), 425.203 (3) (intro.), 425.204 (2), 425.207 (2), 425.208 (6), 779.48 (2), 779.89, 779.91 (2), 779.97 (4) (a) 1., 779.97 (4) (b) 1., 779.97 (4) (b) 2., 779.97 (4) (b) 3., 779.97 (4) (b) 4., 779.97 (4) (d), 779.97 (4) (e), 815.18 (2) (i), 815.18 (2) (j), 818.02 (4), 893.36 (3) (b), 893.36 (3) (c), 893.36 (3) (e) and 893.36 (3) (f); to repeal and recreate 401.105 (2) (e), chapter 409 and 411.307 (3); and to create 402.210 (3), 402.502 (1) (a), 402.502 (2), 405.118, 408.106 (4) (c), 408.110 (5) (b), 408.301 (1) (c) 1. and 2. and 408.510 (3) (a) to (c) of the statutes; relating to: revising the Uniform Commercial Code — Secured Transactions and related statutes, granting rule-making authority, and making an appropriation.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB9-SSA1, s. 1 Section 1. 30.57 (3) of the statutes is amended to read:

SB9-SSA1,2,22 30.57 (3) Except as provided in sub. (4), a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. The security interest is perfected as of the later of the time of its creation if delivery to the department is completed within 10 days after its creation and without regard to the limitations expressed in s. 409.301 (2); otherwise, as of the time of delivery or the time of the attachment of the security interest.

SB9-SSA1, s. 2 Section 2. 30.57 (5) of the statutes is amended to read:

SB9-SSA1,3,2 30.57 (5) An unperfected security interest is subordinate to the rights of persons described in s. 409.301 409.317.

SB9-SSA1, s. 3 Section 3. 30.57 (6) of the statutes is amended to read:

SB9-SSA1,3,7 30.57 (6) The rules of priority stated in s. 409.312, and 409.322, the other sections referred to in that section, and subch. III of ch. 409 shall, to the extent appropriate, apply to conflicting security interests in a boat of a type for which a certificate of title is required.

SB9-SSA1, s. 4 Section 4. 30.57 (7) of the statutes is amended to read:

SB9-SSA1,3,13 30.57 (7) The rules stated in ss. 409.501 to 409.507 subch. VI of ch. 409 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a boat by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in boats perfected under this section and ss. 30.572 and 30.573.

SB9-SSA1, s. 5 Section 5. 30.57 (8) of the statutes is amended to read:

SB9-SSA1,3,17 30.57 (8) If a boat is subject to a security interest when brought into this state, s. 409.103 (1), (2) and (3) state 409.316 states the rules which determine the validity and perfection of the security interest in this state.

SB9-SSA1, s. 6 Section 6. 30.573 (1) of the statutes is amended to read:

SB9-SSA1,3,25 30.573 (1) A Except as otherwise provided in s. 409.308 (5), a secured party may assign, absolutely or otherwise, the secured party's security interest in a boat to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as a secured party until the assignee is named as secured party on the certificate of title.

SB9-SSA1, s. 7 Section 7. 30.573 (2) of the statutes is amended to read:

SB9-SSA1,4,6 30.573 (2) To Subject to s. 409.308 (5), to perfect an assignment, the assignee may deliver to the department the certificate of title, the fee required under s. 30.537 (4) (f) and an assignment by the secured party named in the certificate in the form the department prescribes. Upon receipt, the department shall name the assignee as a secured party on the certificate and issue a new certificate.

SB9-SSA1, s. 8 Section 8. 30.576 (1) of the statutes is amended to read:

SB9-SSA1,4,12 30.576 (1) Except as provided in sub. (2) and subject to s. 409.311 (4), the method provided in ss. 30.57 to 30.575 of perfecting and giving notice of security interests subject to those sections is exclusive. Security interests subject to ss. 30.57 to 30.575 are exempt from the provisions of law that otherwise require or relate to the filing of instruments creating or evidencing security interests.

SB9-SSA1, s. 9 Section 9. 50.05 (15) (f) of the statutes is amended to read:

SB9-SSA1,5,6 50.05 (15) (f) The receiver shall, within 60 days after termination of the receivership, file a notice of any lien created under this subsection. No action on a lien created under this subsection may be brought more than 2 years after the date of filing. If the lien is on real property, the notice shall be filed with the clerk of circuit court of the county in which the facility is located and entered on the judgment and lien docket kept under s. 779.07. If the lien is on personal property, notice of the lien shall be filed with the department of financial institutions in the same manner, form, and place as financing statements are filed under subch. V of ch. 409 regarding debtors who are located in this state. The department of financial institutions shall place file the notice of the lien on personal property in the same file as financing statements are filed under ss. 409.401 and 409.402 subch. V of ch. 409. The notice shall specify the name of the person against whom the lien is claimed, the name of the receiver, the dates of the petition for receivership and the termination of receivership, a description of the property involved and the amount claimed. No lien shall exist under this section against any person, on any property, or for any amount not specified in the notice filed under this paragraph. To the extent applicable, ch. 846 controls the foreclosure of liens under this subsection that attach to real property.

SB9-SSA1, s. 10 Section 10. 51.42 (3) (d) 12. f. of the statutes is amended to read:

SB9-SSA1,6,2 51.42 (3) (d) 12. f. The receiver shall, within 60 days after termination of the receivership, file a notice of any lien created under this subdivision. No action on a lien created under this subdivision may be brought more than 2 years after the date of filing. If the lien is on real property, the notice shall be filed with the clerk of circuit court for the county in which the county department of community programs or related program is located and entered on the judgment and lien docket kept under s. 779.07. If the lien is on personal property, notice of the lien shall be filed with the department of financial institutions in the same manner, form, and place as financing statements are filed under subch. V of ch. 409 regarding debtors who are located in this state. The department of financial institutions shall place file the notice of the lien on personal property in the same file as financing statements are filed under ss. 409.401 and 409.402 subch. V of ch. 409. The notice shall specify the name of the county department of community programs or related program against which the lien is claimed, the name of the receiver, the dates of the petition for receivership and the termination of receivership, a description of the property involved and the amount claimed. No lien may exist under this subdivision against any person, on any property or for any amount not specified in the notice filed under this subd. 12. f. To the extent applicable, ch. 846 controls the foreclosure of liens under this subdivision that attach to real property.

SB9-SSA1, s. 11 Section 11. 59.43 (1) (L) of the statutes is amended to read:

SB9-SSA1,6,21 59.43 (1) (L) File all documents pertaining to security interests in personal property, crops or fixtures, as defined in s. 401.201 (37) (a), that are required or authorized by law to be filed with the register. Except as otherwise prescribed by the department of financial institutions under ss. 409.403 to 409.406 subch. V of ch. 409, these documents shall be executed on white or light colored sheets of paper, 8 or 8.5 inches wide and 5, 7, 10.5, or 14 inches long. Whenever there is offered for filing any document that varies more than one-eighth of an inch from the approved size, or that is not on a standard form prescribed by ch. 409 or by the department of financial institutions, then in addition to the regular filing fee an additional filing fee shall be charged by the register of deeds, as prescribed by sub. (2). No assignment, release, or other instrument shall be offered for filing that is executed or endorsed on any other document, but each shall be a separate and distinct document, except those assignments or notices that are printed or written on and immediately following the original agreement or financing statement, offered for filing at the same time, shall be considered as one document. All of these documents shall be legibly written, and shall have the names of the debtor and secured party plainly printed or typed on the document and shall provide a space for filing data of the register of deeds on the outside of the document.

SB9-SSA1, s. 12 Section 12. 59.43 (1) (m) of the statutes is amended to read:

SB9-SSA1,7,2 59.43 (1) (m) Keep Except as otherwise provided in subchs. V and VII of ch. 409, keep these chattel documents in consecutive numerical arrangement, for the inspection of all persons, endorsing on each document the document number and the date and time of reception.

SB9-SSA1, s. 13 Section 13. 59.43 (1) (n) of the statutes is amended to read:

SB9-SSA1,7,16 59.43 (1) (n) Upon the filing of a financing statement or other document evidencing the creation of a security interest in personal property or fixtures or in crops growing or to be grown, as defined in s. 401.201 (37) (a), required to be filed or recorded with the register under s. 409.501 (1) (a), enter the name of each debtor alphabetically in indices, of which each page shall be divided into columns which shall contain the following information: number of the document, date and time of filing, name and address of debtor, name and address of secured party, name of the document, the amount if any, shown in the document, brief description of property, and the last column set aside for the entry of assignments, continuation statements, termination statements, foreclosure affidavits, extensions and releases pertaining to such financing statements or chattel security documents. If the financing statement evidences the creation of a security interest in fixtures, it also shall be entered in the tract index if one is kept in the county.

SB9-SSA1, s. 14 Section 14. 59.43 (1) (o) of the statutes is amended to read:

SB9-SSA1,7,24 59.43 (1) (o) Upon Except as otherwise provided in subch. V of ch. 409, upon the filing of an assignment, continuation statement, termination statement, foreclosure affidavit, extension or release pertaining to a filed financing statement or other chattel security document, enter the document number and the date and time of filing in the appropriate column of the indices referred to in par. (n) and on the same line as that on which the entry of the filed financing statement or other chattel security document appears.

SB9-SSA1, s. 15 Section 15. 59.43 (2) (ag) 2. of the statutes is amended to read:

SB9-SSA1,8,3 59.43 (2) (ag) 2. In the event of conflict in the statutes regarding recording fees, subd. 1. shall control, except that subch. V of ch. 409 and s. 409.710 shall control this section.

SB9-SSA1, s. 16 Section 16. 59.43 (2) (d) of the statutes is amended to read:

SB9-SSA1,8,16 59.43 (2) (d) For performing functions under s. 409.407 (1) and (2) (a) and (b) 409.523, the register shall charge the fees stated provided in s. 409.407 (2) (a) or (b) 409.525, retain the portion of the fees prescribed under s. 409.525, and submit the portion of the fees not retained to the state. A financing statement and an assignment or notice of assignment of the security interest, offered for filing at the same time, shall be considered as only one document for the purpose of this paragraph. Whenever there is offered for filing any document that is not on a standard form prescribed by ch. 409 or by the department of financial institutions or that varies more than 0.125 inch from the approved size as prescribed by sub. (1), the appropriate fee specified in ss. 409.403 to 409.406 provided in s. 409.525 or an additional filing fee of one-half the regular fee, whichever is applicable, shall be charged by the register.

SB9-SSA1, s. 17 Section 17. 100.201 (2) (d) of the statutes is amended to read:

SB9-SSA1,9,2 100.201 (2) (d) Make or underwrite loans to a retailer or become bound in any manner for the financial obligation of any retailer except that a wholesaler may lend money to a retailer for the purchase of equipment for the storage, transportation, and display of selected dairy products, provided the loan is for not more than 90% of the purchase price, bears at least a 5% annual interest rate, is payable in equal monthly instalments installments over a period of not more than 48 months, and is secured by a security interest created by a security agreement specifying all payments by the retailer and duly filed by the wholesaler within 10 days after the making or underwriting of said loan, as provided in ss. 409.401 and 409.402 subch. V of ch. 409 regarding debtors who are located in this state.

SB9-SSA1, s. 18 Section 18. 100.201 (2) (e) 1. of the statutes is amended to read:

SB9-SSA1,9,18 100.201 (2) (e) 1. The wholesaler, under a bill of sale or security agreement describing the property sold and specifying the price and terms of sale duly filed by the wholesaler under ss. 409.401 and 409.402 subch. V of ch. 409 within 10 days after delivery of the equipment described therein, may sell equipment for the storage, transportation, and display of selected dairy products to the retailer but the selling price shall be not less than the cost to the wholesaler, less 10% per year depreciation, plus transportation and installation costs, plus at least 6%, but in no event shall it be less than $100 per unit. In filing bills of sale under this section, the filing officer shall follow the procedure under s. 409.403 subch. V of ch. 409 regarding debtors who are located in this state insofar as applicable. If the wholesaler makes the sale under a security agreement, the terms of sale shall be no more favorable to the retailer than those under sub. (2) (d). Failure by any wholesaler to enforce the wholesaler's security interest under this paragraph or sub. (2) (d) if a retailer is in default for more than 90 days shall constitute prima facie evidence of a violation of this section. No wholesaler shall renegotiate a security agreement which is in default.

SB9-SSA1, s. 19 Section 19. 101.9213 (2) of the statutes is amended to read:

SB9-SSA1,9,25 101.9213 (2) Except as provided in sub. (3), a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. The security interest is perfected as of the later of the time of its creation if such delivery is completed within 10 days after the time that the security interest is created, and without regard to the limitations expressed in s. 409.301 (2). If the delivery is not completed within 10 days after the time that the security interest is created, the security interest is perfected as of the time of such delivery or the time of the attachment of the security interest.

SB9-SSA1, s. 20 Section 20. 101.9213 (4) of the statutes is amended to read:

SB9-SSA1,10,6 101.9213 (4) An unperfected security interest is subordinate to the rights of persons described in s. 409.301 409.317.

SB9-SSA1, s. 21 Section 21. 101.9213 (5) of the statutes is amended to read:

SB9-SSA1,10,14 101.9213 (5) The rules of priority stated in s. 409.312, and 409.322, the other sections therein referred to, and subch. III of ch. 409 shall, to the extent appropriate, apply to conflicting security interests in a manufactured home of a type for which a certificate of title is required, or in a previously certificated manufactured home, as defined in s. 101.9222 (1). A security interest perfected under this section or under s. 101.9222 (4) or (5) is a security interest perfected otherwise than by filing for purposes of s. 409.312 409.322.

SB9-SSA1, s. 22 Section 22. 101.9213 (6) of the statutes is amended to read:

SB9-SSA1,10,21 101.9213 (6) The rules stated in ss. 409.501 to 409.507 subch. VI of ch. 409 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a manufactured home by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in manufactured homes perfected under ss. 101.9202 to 101.9218.