AB111: Bill Text

AB111,140,11 (3) When filed financing statement effective. A filed financing statement satisfying s. 409.502 (1) and (2) is effective, even if the filing office is required to refuse to accept it for filing under sub. (1). However, s. 409.338 applies to a filed financing statement providing information described in s. 409.516 (2) (e) which is incorrect at the time the financing statement is filed.

AB111,140,14 (4) Separate application to multiple debtors. If a record communicated to a filing office provides information that relates to more than one debtor, this subchapter applies as to each debtor separately.

AB111,140,18 409.521 Uniform form of written financing statement and amendment. (1) Initial financing statement form. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in s. 409.516 (2):

AB111,143,3 (2) Amendment form. A filing office that accepts written records may not refuse to accept a written record in the following form and format except for a reason set forth in s. 409.516 (2):

AB111,146,6 409.522 Maintenance and destruction of records. (1) Postlapse maintenance and retrieval of information. The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under s. 409.515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and:

AB111,146,9 (a) If the record was filed or recorded in the filing office described in s. 409.501 (1) (a), by using the file number assigned to the initial financing statement to which the record relates and the date on which the record was filed or recorded; or

AB111,146,12 (b) If the record was filed in the filing office described in s. 409.501 (1) (b), by using the file number assigned to the initial financing statement to which the record relates.

AB111,146,17 (2) Destruction of written records. Except to the extent that a statute governing disposition of public records provides otherwise, the filing office may destroy immediately any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with sub. (1).

AB111,146,23 409.523 Information from filing office; sale or license of records. (1) Acknowledgment of filing written record. If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to s. 409.519 (1) (a) and the date and time of the filing of the record. However, if the person furnishes a copy of the record to the filing office, the filing office may instead:

AB111,146,25 (a) Note upon the copy the number assigned to the record pursuant to s. 409.519 (1) (a) and the date and time of the filing of the record; and

AB111,147,1 (b) Send the copy to the person.

AB111,147,4 (2) Acknowledgment of filing other record. If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides:

AB111,147,5 (a) The information in the record;

AB111,147,6 (b) The number assigned to the record pursuant to s. 409.519 (1) (a); and

AB111,147,7 (c) The date and time of the filing of the record.

AB111,147,10 (3) Communication of requested information. The filing office shall communicate or otherwise make available in a record the following information to any person that requests it:

AB111,147,13 (a) Whether there is on file on a date and time specified by the filing office, but not a date earlier than 3 business days before the filing office receives the request, any financing statement that:

AB111,147,15 1. Designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request;

AB111,147,17 2. Has not lapsed under s. 409.515 with respect to all secured parties of record; or

AB111,147,19 3. If the request so states, has lapsed under s. 409.515 and a record of which is maintained by the filing office under s. 409.522 (1);

AB111,147,20 (b) The date and time of filing of each financing statement; and

AB111,147,21 (c) The information provided in each financing statement.

AB111,148,2 (4) Medium for communicating information. In complying with its duty under sub. (3), the filing office may communicate information in any medium. However, if requested, the filing office shall communicate information by issuing a record that can be admitted into evidence in the courts of this state without extrinsic evidence of its authenticity.

AB111,148,5 (5) Timeliness of filing-office performance. The filing office shall perform the acts required by subs. (1) to (4) at the time and in the manner prescribed by filing-office rule, but not later than:

AB111,148,7 (a) Five business days after the filing office receives the request for requests received before July 1, 2003; and

AB111,148,9 (b) Two business days after the filing office receives the request for requests received on or after July 1, 2003.

AB111,148,13 (6) Public availability of records. At least weekly, the department of financial institutions shall offer to sell or license to the public on a nonexclusive basis, in bulk, copies of all records filed in it under this subchapter, in every medium from time to time available to the department of financial institutions.

AB111,148,17 (7) Liability of filing officer. No filing officer nor any of the filing officer's employees or agents shall be subject to personal liability by reason of any error or omission in the performance of any duty under this chapter except in case of misconduct as defined in s. 946.12.

AB111,148,19 409.524 Delay by filing office. Delay by the filing office beyond a time limit prescribed by this subchapter is excused if:

AB111,148,22 (1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the filing office; and

AB111,148,23 (2) The filing office exercises reasonable diligence under the circumstances.

AB111,149,3 409.525 Fees. (1) Initial financing statement or other record. Except as otherwise provided in this section, the fee for filing and indexing a record under this subchapter and the portion of the fee that an office duly authorized by the department under s. 409.501 (1) (b) may retain shall be prescribed by filing-office rule.

AB111,149,5 (2) Basis for rule. The rule under sub. (1) must set the fees for filing and indexing a record under this subchapter on the following basis:

AB111,149,9 (a) If the record presented for filing is communicated to the filing office in writing and consists of more than 2 pages, the fee for filing and indexing the record must be at least twice the amount of the fee for a record communicated in writing that consists of 1 or 2 pages; and

AB111,149,13 (b) If the record is communicated by another medium authorized by filing-office rule, the fee for filing and indexing the record must be no more than 50% of the amount of the fee for a record communicated in writing that consists of 1 or 2 pages.

AB111,149,15 (3) Number of names. The number of names required to be indexed does not affect the amount of the fee under this section.

AB111,150,2 (4) Response to information request. Except as otherwise provided in this section, the fee for responding to a request for information from the filing office, including for communicating whether there is on file any financing statement naming a particular debtor, and the portion of the fee that an office duly authorized by the department under s. 409.501 (1) (b) may retain shall be prescribed by filing-office rule. The fee for responding to a request communicated in writing must be not less than twice the amount of the fee for responding to a request communicated by another medium authorized by filing-office rule. This subsection does not require that a fee be charged for remote access searching of the filing-office data base. The rule promulgated pursuant to this subsection need not specify a fee for remote access searching of the filing-office data base.

AB111,150,7 (5) Record of mortgage. This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under s. 409.502 (3). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.

AB111,150,10 409.526 Filing-office rules. (1) Promulgation of filing-office rules. The secretary of financial institutions shall promulgate filing-office rules to implement this chapter. The filing-office rules must be:

AB111,150,11 (a) Consistent with this chapter; and

AB111,150,12 (b) Promulgated in accordance with ch. 227.

AB111,150,19 (2) Harmonization of rules. To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this subchapter, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially this subchapter, the secretary of financial institutions, so far as is consistent with the purposes, policies, and provisions of this chapter, in promulgating filing-office rules, shall:

AB111,150,21 (a) Consult with filing offices in other jurisdictions that enact substantially this subchapter;

AB111,150,24 (b) Consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and

AB111,151,2 (c) Take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this subchapter.

AB111,151,5 409.527 Duty to report. The department of financial institutions shall include in its report under s. 15.04 (1) (d) a report on the operation of the filing office. The report must contain a statement of the extent to which:

AB111,151,9 (1) Harmonization of rules: filing offices in other jurisdictions. The filing-office rules are not in harmony with the rules of filing offices in other jurisdictions that enact substantially this subchapter and the reasons for these variations; and

AB111,151,13 (2) Harmonization of rules: model rules. The filing-office rules are not in harmony with the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators, or any successor organization, and the reasons for these variations.

AB111,151,17 409.528 Statewide lien system. (1) Establishment and maintenance. The department shall establish and maintain and the office of each register of deeds in this state shall establish services necessary to support a statewide lien system under this subchapter.

AB111,151,20 (2) Use. Except as otherwise provided in this chapter, each filing officer shall enter all information filed under this subchapter into the statewide lien system under sub. (1).

AB111,151,22 subchapter VI DEFAULT

AB111,152,2 409.601 Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes. (1) Rights of secured party after default. After default, a secured party has the rights provided in this subchapter and, except as otherwise provided in s. 409.602, those provided by agreement of the parties. A secured party:

AB111,152,4 (a) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and

AB111,152,6 (b) If the collateral is documents, may proceed either as to the documents or as to the goods they cover.

AB111,152,9 (2) Rights and duties of secured party in possession or control. A secured party in possession of collateral or control of collateral under s. 409.104, 409.105, 409.106, or 409.107 has the rights and duties provided in s. 409.207.

AB111,152,11 (3) Rights cumulative; simultaneous exercise. The rights under subs. (1) and (2) are cumulative and may be exercised simultaneously.

AB111,152,14 (4) Rights of debtor and obligor. Except as otherwise provided in sub. (7) and s. 409.605, after default, a debtor and an obligor have the rights provided in this subchapter and by agreement of the parties.

AB111,152,17 (5) Lien of levy after judgment. If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:

AB111,152,19 (a) The date of perfection of the security interest or agricultural lien in the collateral;

AB111,152,20 (b) The date of filing a financing statement covering the collateral; or

AB111,152,22 (c) Any date specified in a statute under which the agricultural lien was created.

AB111,153,2 (6) Execution sale. A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this chapter.

AB111,153,6 (7) Consignor or buyer of certain rights to payment. Except as otherwise provided in s. 409.607 (3), this subchapter imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.

AB111,153,10 409.602 Waiver and variance of rights and duties. Except as otherwise provided in s. 409.624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:

AB111,153,12 (1) Section 409.207 (2) (d) 3., which deals with use and operation of the collateral by the secured party;

AB111,153,14 (2) Section 409.210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account;