AB111,148,19 18409.524 Delay by filing office. Delay by the filing office beyond a time limit
19prescribed by this subchapter is excused if:
AB111,148,22 20(1) The delay is caused by interruption of communication or computer
21facilities, war, emergency conditions, failure of equipment, or other circumstances
22beyond the control of the filing office; and
AB111,148,23 23(2) The filing office exercises reasonable diligence under the circumstances.
AB111,149,3 24409.525 Fees. (1) Initial financing statement or other record. Except as
25otherwise provided in this section, the fee for filing and indexing a record under this

1subchapter and the portion of the fee that an office duly authorized by the
2department under s. 409.501 (1) (b) may retain shall be prescribed by filing-office
3rule.
AB111,149,5 4(2) Basis for rule. The rule under sub. (1) must set the fees for filing and
5indexing a record under this subchapter on the following basis:
AB111,149,96 (a) If the record presented for filing is communicated to the filing office in
7writing and consists of more than 2 pages, the fee for filing and indexing the record
8must be at least twice the amount of the fee for a record communicated in writing that
9consists of 1 or 2 pages; and
AB111,149,1310 (b) If the record is communicated by another medium authorized by
11filing-office rule, the fee for filing and indexing the record must be no more than 50%
12of the amount of the fee for a record communicated in writing that consists of 1 or 2
13pages.
AB111,149,15 14(3) Number of names. The number of names required to be indexed does not
15affect the amount of the fee under this section.
AB111,150,2 16(4) Response to information request. Except as otherwise provided in this
17section, the fee for responding to a request for information from the filing office,
18including for communicating whether there is on file any financing statement
19naming a particular debtor, and the portion of the fee that an office duly authorized
20by the department under s. 409.501 (1) (b) may retain shall be prescribed by
21filing-office rule. The fee for responding to a request communicated in writing must
22be not less than twice the amount of the fee for responding to a request communicated
23by another medium authorized by filing-office rule. This subsection does not require
24that a fee be charged for remote access searching of the filing-office data base. The

1rule promulgated pursuant to this subsection need not specify a fee for remote access
2searching of the filing-office data base.
AB111,150,7 3(5) Record of mortgage. This section does not require a fee with respect to a
4record of a mortgage which is effective as a financing statement filed as a fixture
5filing or as a financing statement covering as-extracted collateral or timber to be cut
6under s. 409.502 (3). However, the recording and satisfaction fees that otherwise
7would be applicable to the record of the mortgage apply.
AB111,150,10 8409.526 Filing-office rules. (1) Promulgation of filing-office rules. The
9secretary of financial institutions shall promulgate filing-office rules to implement
10this chapter. The filing-office rules must be:
AB111,150,1111 (a) Consistent with this chapter; and
AB111,150,1212 (b) Promulgated in accordance with ch. 227.
AB111,150,19 13(2) Harmonization of rules. To keep the filing-office rules and practices of the
14filing office in harmony with the rules and practices of filing offices in other
15jurisdictions that enact substantially this subchapter, and to keep the technology
16used by the filing office compatible with the technology used by filing offices in other
17jurisdictions that enact substantially this subchapter, the secretary of financial
18institutions, so far as is consistent with the purposes, policies, and provisions of this
19chapter, in promulgating filing-office rules, shall:
AB111,150,2120 (a) Consult with filing offices in other jurisdictions that enact substantially this
21subchapter;
AB111,150,2422 (b) Consult the most recent version of the Model Rules promulgated by the
23International Association of Corporate Administrators or any successor
24organization; and
AB111,151,2
1(c) Take into consideration the rules and practices of, and the technology used
2by, filing offices in other jurisdictions that enact substantially this subchapter.
AB111,151,5 3409.527 Duty to report. The department of financial institutions shall
4include in its report under s. 15.04 (1) (d) a report on the operation of the filing office.
5The report must contain a statement of the extent to which:
AB111,151,9 6(1) Harmonization of rules: filing offices in other jurisdictions. The
7filing-office rules are not in harmony with the rules of filing offices in other
8jurisdictions that enact substantially this subchapter and the reasons for these
9variations; and
AB111,151,13 10(2) Harmonization of rules: model rules. The filing-office rules are not in
11harmony with the most recent version of the Model Rules promulgated by the
12International Association of Corporate Administrators, or any successor
13organization, and the reasons for these variations.
AB111,151,17 14409.528 Statewide lien system. (1) Establishment and maintenance. The
15department shall establish and maintain and the office of each register of deeds in
16this state shall establish services necessary to support a statewide lien system under
17this subchapter.
AB111,151,20 18(2) Use. Except as otherwise provided in this chapter, each filing officer shall
19enter all information filed under this subchapter into the statewide lien system
20under sub. (1).
AB111,151,2221 subchapter VI
22DEFAULT
AB111,152,2 23409.601 Rights after default; judicial enforcement; consignor or buyer
24of accounts, chattel paper, payment intangibles, or promissory notes. (1)

25Rights of secured party after default. After default, a secured party has the rights

1provided in this subchapter and, except as otherwise provided in s. 409.602, those
2provided by agreement of the parties. A secured party:
AB111,152,43 (a) May reduce a claim to judgment, foreclose, or otherwise enforce the claim,
4security interest, or agricultural lien by any available judicial procedure; and
AB111,152,65 (b) If the collateral is documents, may proceed either as to the documents or as
6to the goods they cover.
AB111,152,9 7(2) Rights and duties of secured party in possession or control. A secured
8party in possession of collateral or control of collateral under s. 409.104, 409.105,
9409.106, or 409.107 has the rights and duties provided in s. 409.207.
AB111,152,11 10(3) Rights cumulative; simultaneous exercise. The rights under subs. (1) and
11(2) are cumulative and may be exercised simultaneously.
AB111,152,14 12(4) Rights of debtor and obligor. Except as otherwise provided in sub. (7) and
13s. 409.605, after default, a debtor and an obligor have the rights provided in this
14subchapter and by agreement of the parties.
AB111,152,17 15(5) Lien of levy after judgment. If a secured party has reduced its claim to
16judgment, the lien of any levy that may be made upon the collateral by virtue of an
17execution based upon the judgment relates back to the earliest of:
AB111,152,1918 (a) The date of perfection of the security interest or agricultural lien in the
19collateral;
AB111,152,2020 (b) The date of filing a financing statement covering the collateral; or
AB111,152,2221 (c) Any date specified in a statute under which the agricultural lien was
22created.
AB111,153,2 23(6) Execution sale. A sale pursuant to an execution is a foreclosure of the
24security interest or agricultural lien by judicial procedure within the meaning of this

1section. A secured party may purchase at the sale and thereafter hold the collateral
2free of any other requirements of this chapter.
AB111,153,6 3(7) Consignor or buyer of certain rights to payment. Except as otherwise
4provided in s. 409.607 (3), this subchapter imposes no duties upon a secured party
5that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or
6promissory notes.
AB111,153,10 7409.602 Waiver and variance of rights and duties. Except as otherwise
8provided in s. 409.624, to the extent that they give rights to a debtor or obligor and
9impose duties on a secured party, the debtor or obligor may not waive or vary the
10rules stated in the following listed sections:
AB111,153,12 11(1) Section 409.207 (2) (d) 3., which deals with use and operation of the
12collateral by the secured party;
AB111,153,14 13(2) Section 409.210, which deals with requests for an accounting and requests
14concerning a list of collateral and statement of account;
AB111,153,16 15(3) Section 409.607 (3), which deals with collection and enforcement of
16collateral;
AB111,153,19 17(4) Sections 409.608 (1) and 409.615 (3) to the extent that they deal with
18application or payment of noncash proceeds of collection, enforcement, or
19disposition;
AB111,153,21 20(5) Sections 409.608 (1) and 409.615 (4) to the extent that they require
21accounting for or payment of surplus proceeds of collateral;
AB111,153,24 22(6) Section 409.609 to the extent that it imposes upon a secured party that
23takes possession of collateral without judicial process the duty to do so without
24breach of the peace;
AB111,154,2
1(7) Sections 409.610 (2), 409.611, 409.613, and 409.614, which deal with
2disposition of collateral;
AB111,154,5 3(8) Section 409.615 (6), which deals with calculation of a deficiency or surplus
4when a disposition is made to the secured party, a person related to the secured party,
5or a secondary obligor;
AB111,154,7 6(9) Section 409.616, which deals with explanation of the calculation of a
7surplus or deficiency;
AB111,154,9 8(10) Sections 409.620, 409.621, and 409.622, which deal with acceptance of
9collateral in satisfaction of obligation;
AB111,154,10 10(11) Section 409.623, which deals with redemption of collateral;
AB111,154,11 11(12) Section 409.624, which deals with permissible waivers; and
AB111,154,13 12(13) Sections 409.625 and 409.626, which deal with the secured party's liability
13for failure to comply with this chapter.
AB111,154,18 14409.603 Agreement on standards concerning rights and duties. (1)
15Agreed standards. The parties may determine by agreement the standards
16measuring the fulfillment of the rights of a debtor or obligor and the duties of a
17secured party under a rule stated in s. 409.602 if the standards are not manifestly
18unreasonable.
AB111,154,20 19(2) Agreed standards inapplicable to breach of peace. Subsection (1) does not
20apply to the duty under s. 409.609 to refrain from breaching the peace.
AB111,154,23 21409.604 Procedure if security agreement covers real property or
22fixtures. (1)
Enforcement: personal and real property. If a security agreement
23covers both personal and real property, a secured party may proceed:
AB111,154,2524 (a) Under this subchapter as to the personal property without prejudicing any
25rights with respect to the real property; or
AB111,155,3
1(b) As to both the personal property and the real property in accordance with
2the rights with respect to the real property, in which case the other provisions of this
3subchapter do not apply.
AB111,155,5 4(2) Enforcement: fixtures. Subject to sub. (3), if a security agreement covers
5goods that are or become fixtures, a secured party may proceed:
AB111,155,66 (a) Under this subchapter; or
AB111,155,87 (b) In accordance with the rights with respect to real property, in which case
8the other provisions of this subchapter do not apply.
AB111,155,12 9(3) Removal of fixtures. Subject to the other provisions of this subchapter, if
10a secured party holding a security interest in fixtures has priority over all owners and
11encumbrancers of the real property, the secured party, after default, may remove the
12collateral from the real property.
AB111,155,20 13(4) Injury caused by removal. A secured party that removes collateral shall
14promptly reimburse any encumbrancer or owner of the real property, other than the
15debtor, for the cost of repair of any physical injury caused by the removal. The
16secured party need not reimburse the encumbrancer or owner for any diminution in
17value of the real property caused by the absence of the goods removed or by any
18necessity of replacing them. A person entitled to reimbursement may refuse
19permission to remove until the secured party gives adequate assurance for the
20performance of the obligation to reimburse.
AB111,155,22 21409.605 Unknown debtor or secondary obligor. A secured party does not
22owe a duty based on its status as secured party:
AB111,155,23 23(1) To a person that is a debtor or obligor, unless the secured party knows:
AB111,155,2424 (a) That the person is a debtor or obligor;
AB111,155,2525 (b) The identity of the person; and
AB111,156,1
1(c) How to communicate with the person; or
AB111,156,3 2(2) To a secured party or lienholder that has filed a financing statement against
3a person, unless the secured party knows:
AB111,156,44 (a) That the person is a debtor; and
AB111,156,55 (b) The identity of the person.
AB111,156,9 6409.606 Time of default for agricultural lien. For purposes of this
7subchapter, a default occurs in connection with an agricultural lien at the time the
8secured party becomes entitled to enforce the lien in accordance with the statute
9under which it was created.
AB111,156,12 10409.607 Collection and enforcement by secured party. (1) Collection
11and enforcement generally.
If so agreed, and in any event after default, a secured
12party:
AB111,156,1413 (a) May notify an account debtor or other person obligated on collateral to make
14payment or otherwise render performance to or for the benefit of the secured party;
AB111,156,1615 (b) May take any proceeds to which the secured party is entitled under s.
16409.315;
AB111,156,2117 (c) May enforce the obligations of an account debtor or other person obligated
18on collateral and exercise the rights of the debtor with respect to the obligation of the
19account debtor or other person obligated on collateral to make payment or otherwise
20render performance to the debtor, and with respect to any property that secures the
21obligations of the account debtor or other person obligated on the collateral;
AB111,156,2422 (d) If it holds a security interest in a deposit account perfected by control under
23s. 409.104 (1) (a), may apply the balance of the deposit account to the obligation
24secured by the deposit account; and
AB111,157,3
1(e) If it holds a security interest in a deposit account perfected by control under
2s. 409.104 (1) (b) or (c), may instruct the bank to pay the balance of the deposit
3account to or for the benefit of the secured party.
AB111,157,7 4(2) Nonjudicial enforcement of mortgage. If necessary to enable a secured
5party to exercise under sub. (1) (c) the right of a debtor to enforce a mortgage
6nonjudicially, the secured party may record in the office in which a record of the
7mortgage is recorded:
AB111,157,98 (a) A copy of the security agreement that creates or provides for a security
9interest in the obligation secured by the mortgage; and
AB111,157,1010 (b) The secured party's sworn affidavit in recordable form stating that:
AB111,157,1111 1. A default has occurred; and
AB111,157,1212 2. The secured party is entitled to enforce the mortgage nonjudicially.
AB111,157,14 13(3) Commercially reasonable collection and enforcement. A secured party
14shall proceed in a commercially reasonable manner if the secured party:
AB111,157,1615 (a) Undertakes to collect from or enforce an obligation of an account debtor or
16other person obligated on collateral; and
AB111,157,1817 (b) Is entitled to charge back uncollected collateral or otherwise to full or
18limited recourse against the debtor or a secondary obligor.
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