AB111,163,1717 (b) Minor errors that are not seriously misleading.
AB111,163,19 18(4) Substantial compliance. A particular phrasing of the notification is not
19required.
AB111,163,22 20(5) Notification: form sufficient. The following form of notification and the
21form appearing in s. 409.614 (3), when completed, each provide sufficient
22information:
AB111,163,24 23NOTIFICATION OF DISPOSITION
24 OF COLLATERAL
AB111,163,2525 To: .... [Name of debtor, obligor, or other person to which the notification is sent]
AB111,164,1
1From: .... [Name, address, and telephone number of secured party]
AB111,164,22 Name of Debtor(s): .... [Include only if debtor(s) are not an addressee]
AB111,164,33 [For a public disposition]:
AB111,164,54 We will sell [or lease or license, as applicable] the .... [describe collateral] [to the
5highest qualified bidder] in public as follows:
AB111,164,66 Day and Date: ....
AB111,164,77 Time: ....
AB111,164,88 Place: ....
AB111,164,99 [For a private disposition]:
AB111,164,1110 We will sell [or lease or license, as applicable] the .... [describe collateral]
11privately sometime after .... [day and date].
AB111,164,1312 You are entitled to an accounting of the unpaid indebtedness secured by the
13property that we intend to sell [or lease or license, as applicable] [for a charge of $ .... ]. You may request an accounting by calling us at .... [telephone number].
AB111,164,16 14409.614 Contents and form of notification before disposition of
15collateral: consumer-goods transaction.
In a consumer-goods transaction, the
16following rules apply:
AB111,164,18 17(1) Notification of disposition. A notification of disposition must provide the
18following information:
AB111,164,1919 (a) The information specified in s. 409.613 (1);
AB111,164,2120 (b) A description of any liability for a deficiency of the person to which the
21notification is sent;
AB111,164,2322 (c) A telephone number from which the amount that must be paid to the secured
23party to redeem the collateral under s. 409.623 is available; and
AB111,165,2
1(d) A telephone number or mailing address from which additional information
2concerning the disposition and the obligation secured is available.
AB111,165,4 3(2) Substantial compliance. A particular phrasing of the notification is not
4required.
AB111,165,6 5(3) Notification: form sufficient. The following form of notification, when
6completed, provides sufficient information:
AB111,165,77 [Name and address of secured party] ....
AB111,165,88 [Date] ....
AB111,165,10 9NOTICE OF OUR PLAN
10 TO SELL PROPERTY
AB111,165,1111 .... [Name and address of any obligor who is also a debtor]
AB111,165,1212 Subject: .... [Identification of transaction]
AB111,165,1413 We have your .... [describe collateral], because you broke promises in our
14agreement.
AB111,165,1515 [For a public disposition]:
AB111,165,1716 We will sell .... [describe collateral] at public sale. A sale could include a lease
17or license. The sale will be held as follows:
AB111,165,1818 Date: ....
AB111,165,1919 Time: ....
AB111,165,2020 Place: ....
AB111,165,2121 You may attend the sale and bring bidders if you want.
AB111,165,2222 [For a private disposition]:
AB111,165,2423 We will sell .... [describe collateral] at private sale sometime after .... [date]. A
24sale could include a lease or license.
AB111,166,4
1The money that we get from the sale (after paying our costs) will reduce the
2amount you owe. If we get less money than you owe, you .... [will or will not, as
3applicable
] still owe us the difference. If we get more money than you owe, you will
4get the extra money, unless we must pay it to someone else.
AB111,166,75 You can get the property back at any time before we sell it by paying us the full
6amount you owe (not just the past-due payments), including our expenses. To learn
7the exact amount you must pay, call us at .... [telephone number].
AB111,166,128 If you want us to explain to you in writing how we have figured the amount that
9you owe us, you may call us at .... [telephone number] [or write us at .... [secured
10party's address
]] and request a written explanation. [We will charge you $.... for the
11explanation if we sent you another written explanation of the amount you owe us
12within the last 6 months.]
AB111,166,1413 If you need more information about the sale, call us at .... [telephone number]]
14[or write us at .... [secured party's address]].
AB111,166,1615 We are sending this notice to the following other people who have an interest
16in .... [describe collateral] or who owe money under your agreement:
AB111,166,1717 .... [Names of all other debtors and obligors, if any]
AB111,166,18 18[End of Form]
AB111,166,20 19(4) Notification: other information. A notification in the form of sub. (3) is
20sufficient, even if additional information appears at the end of the form.
AB111,166,23 21(5) Notification: errors. A notification in the form of sub. (3) is sufficient, even
22if it includes errors in information not required by sub. (1), unless the error is
23misleading with respect to rights arising under this chapter.
AB111,167,3
1(6) Notification: not in form. If a notification under this section is not in the
2form of sub. (3), law other than this chapter determines the effect of including
3information not required by sub. (1).
AB111,167,7 4409.615 Application of proceeds of disposition; liability for deficiency
5and right to surplus. (1)
Application of proceeds. A secured party shall apply
6or pay over for application the cash proceeds of disposition under s. 409.610 in the
7following order to:
AB111,167,118 (a) The reasonable expenses of retaking, holding, preparing for disposition,
9processing, and disposing of, and, to the extent provided for by agreement and not
10prohibited by law, reasonable attorney fees and legal expenses incurred by the
11secured party;
AB111,167,1312 (b) The satisfaction of obligations secured by the security interest or
13agricultural lien under which the disposition is made;
AB111,167,1514 (c) The satisfaction of obligations secured by any subordinate security interest
15in or other subordinate lien on the collateral if:
AB111,167,1816 1. The secured party receives from the holder of the subordinate security
17interest or other lien an authenticated demand for proceeds before distribution of the
18proceeds is completed; and
AB111,167,2119 2. In a case in which a consignor has an interest in the collateral, the
20subordinate security interest or other lien is senior to the interest of the consignor;
21and
AB111,167,2422 (d) A secured party that is a consignor of the collateral if the secured party
23receives from the consignor an authenticated demand for proceeds before
24distribution of the proceeds is completed.
AB111,168,4
1(2) Proof of subordinate interest. If requested by a secured party, a holder
2of a subordinate security interest or other lien shall furnish reasonable proof of the
3interest or lien within a reasonable time. Unless the holder does so, the secured party
4need not comply with the holder's demand under sub. (1) (c).
AB111,168,9 5(3) Application of noncash proceeds. A secured party need not apply or pay
6over for application noncash proceeds of disposition under s. 409.610 unless the
7failure to do so would be commercially unreasonable. A secured party that applies
8or pays over for application noncash proceeds shall do so in a commercially
9reasonable manner.
AB111,168,12 10(4) Surplus or deficiency if obligation secured. If the security interest under
11which a disposition is made secures payment or performance of an obligation, after
12making the payments and applications required by sub. (1) and permitted by sub. (3):
AB111,168,1513 (a) Unless sub. (1) (d) requires the secured party to apply or pay over cash
14proceeds to a consignor, the secured party shall account to and pay a debtor for any
15surplus; and
AB111,168,1616 (b) The obligor is liable for any deficiency.
AB111,168,19 17(5) No surplus or deficiency in sales of certain rights to payment. If the
18underlying transaction is a sale of accounts, chattel paper, payment intangibles, or
19promissory notes:
AB111,168,2020 (a) The debtor is not entitled to any surplus; and
AB111,168,2121 (b) The obligor is not liable for any deficiency.
AB111,169,2 22(6) Calculation of surplus or deficiency in disposition to person related to
23secured party.
The surplus or deficiency following a disposition is calculated based
24on the amount of proceeds that would have been realized in a disposition complying

1with this subchapter to a transferee other than the secured party, a person related
2to the secured party or a secondary obligor if:
AB111,169,43 (a) The transferee in the disposition is the secured party, a person related to
4the secured party, or a secondary obligor; and
AB111,169,75 (b) The amount of proceeds of the disposition is significantly below the range
6of proceeds that a complying disposition to a person other than the secured party, a
7person related to the secured party, or a secondary obligor would have brought.
AB111,169,12 8(7) Cash proceeds received by junior secured party. A secured party that
9receives cash proceeds of a disposition in good faith and without knowledge that the
10receipt violates the rights of the holder of a security interest or other lien that is not
11subordinate to the security interest or agricultural lien under which the disposition
12is made:
AB111,169,1313 (a) Takes the cash proceeds free of the security interest or other lien;
AB111,169,1514 (b) Is not obligated to apply the proceeds of the disposition to the satisfaction
15of obligations secured by the security interest or other lien; and
AB111,169,1716 (c) Is not obligated to account to or pay the holder of the security interest or
17other lien for any surplus.
AB111,169,19 18409.616 Explanation of calculation of surplus or deficiency. (1)
19Definitions. In this section:
AB111,169,2020 (a) "Explanation" means a writing that:
AB111,169,2121 1. States the amount of the surplus or deficiency;
AB111,169,2322 2. Provides an explanation in accordance with sub. (3) of how the secured party
23calculated the surplus or deficiency;
AB111,170,3
13. States, if applicable, that future debits, credits, charges, including additional
2credit service charges or interest, rebates, and expenses may affect the amount of the
3surplus or deficiency; and
AB111,170,54 4. Provides a telephone number or mailing address from which additional
5information concerning the transaction is available.
AB111,170,66 (b) "Request" means a record:
AB111,170,77 1. Authenticated by a debtor or consumer obligor;
AB111,170,88 2. Requesting that the recipient provide an explanation; and
AB111,170,99 3. Sent after disposition of the collateral under s. 409.610.
AB111,170,12 10(2) Explanation of calculation. In a consumer-goods transaction in which
11the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under
12s. 409.615, the secured party shall:
AB111,170,1413 (a) Send an explanation to the debtor or consumer obligor, as applicable, after
14the disposition and:
AB111,170,1715 1. Before or when the secured party accounts to the debtor and pays any surplus
16or first makes written demand on the consumer obligor after the disposition for
17payment of the deficiency; and
AB111,170,1818 2. Within 14 days after receipt of a request; or
AB111,170,2119 (b) In the case of a consumer obligor who is liable for a deficiency, within 14 days
20after receipt of a request, send to the consumer obligor a record waiving the secured
21party's right to a deficiency.
AB111,170,23 22(3) Required information. To comply with sub. (1) (a) 2., a writing must provide
23the following information in the following order:
AB111,171,224 (a) The aggregate amount of obligations secured by the security interest under
25which the disposition was made, and, if the amount reflects a rebate of unearned

1interest or credit service charge, an indication of that fact, calculated as of a specified
2date:
AB111,171,53 1. If the secured party takes or receives possession of the collateral after
4default, not more than 35 days before the secured party takes or receives possession;
5or
AB111,171,86 2. If the secured party takes or receives possession of the collateral before
7default or does not take possession of the collateral, not more than 35 days before the
8disposition;
AB111,171,99 (b) The amount of proceeds of the disposition;
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