AB111,179,4
1(2) Damages for noncompliance. Subject to subs. (3), (4), and (6), a person is
2liable for damages in the amount of any loss caused by a failure to comply with this
3chapter. Loss caused by a failure to comply may include loss resulting from the
4debtor's inability to obtain, or increased costs of, alternative financing.
AB111,179,6 5(3) Persons entitled to recover damages; statutory damages in
6consumer-goods transaction.
Except as otherwise provided in s. 409.628:
AB111,179,97 (a) A person that, at the time of the failure, was a debtor, was an obligor, or held
8a security interest in or other lien on the collateral may recover damages under sub.
9(2) for its loss; and
AB111,179,1410 (b) If the collateral is consumer goods, a person that was a debtor or a secondary
11obligor at the time a secured party failed to comply with this subchapter may recover
12for that failure in any event an amount not less than the credit service charge plus
1310% of the principal amount of the obligation or the time-price differential plus 10%
14of the cash price.
AB111,179,20 15(4) Recovery when deficiency eliminated or reduced. A debtor whose
16deficiency is eliminated under s. 409.626 may recover damages for the loss of any
17surplus. However, a debtor or secondary obligor whose deficiency is eliminated or
18reduced under s. 409.626 may not otherwise recover under sub. (2) for noncompliance
19with the provisions of this subchapter relating to collection, enforcement,
20disposition, or acceptance.
AB111,179,24 21(5) Statutory damages: noncompliance with specified provisions. In addition
22to any damages recoverable under sub. (2), the debtor, consumer obligor, or person
23named as a debtor in a filed record, as applicable, may recover $500 in each case from
24a person that:
AB111,179,2525 (a) Fails to comply with s. 409.208;
AB111,180,1
1(b) Fails to comply with s. 409.209;
AB111,180,22 (c) Files a record that the person is not entitled to file under s. 409.509 (1);
AB111,180,43 (d) Fails to cause the secured party of record to file or send a termination
4statement as required by s. 409.513 (1) or (3);
AB111,180,65 (e) Fails to comply with s. 409.616 (2) (a) and whose failure is part of a pattern,
6or consistent with a practice, of noncompliance; or
AB111,180,77 (f) Fails to comply with s. 409.616 (2) (b).
AB111,180,14 8(6) Statutory damages: noncompliance with s. 409.210. A debtor or consumer
9obligor may recover damages under sub. (2) and, in addition, $500 in each case from
10a person that, without reasonable cause, fails to comply with a request under s.
11409.210. A recipient of a request under s. 409.210 which never claimed an interest
12in the collateral or obligations that are the subject of a request under that section has
13a reasonable excuse for failure to comply with the request within the meaning of this
14subsection.
AB111,180,19 15(7) Limitation of security interest: noncompliance with s. 409.210. If a secured
16party fails to comply with a request regarding a list of collateral or a statement of
17account under s. 409.210, the secured party may claim a security interest only as
18shown in the list or statement included in the request as against a person that is
19reasonably misled by the failure.
AB111,180,23 20409.626 Action in which deficiency or surplus is in issue. (1) Applicable
21rules if amount of deficiency or surplus in issue.
In an action arising from a
22transaction, other than a consumer transaction, in which the amount of a deficiency
23or surplus is in issue, the following rules apply:
AB111,181,3
1(a) A secured party need not prove compliance with the provisions of this
2subchapter relating to collection, enforcement, disposition, or acceptance unless the
3debtor or a secondary obligor places the secured party's compliance in issue.
AB111,181,64 (b) If the secured party's compliance is placed in issue, the secured party has
5the burden of establishing that the collection, enforcement, disposition, or
6acceptance was conducted in accordance with this subchapter.
AB111,181,127 (c) Except as otherwise provided in s. 409.628, if a secured party fails to prove
8that the collection, enforcement, disposition, or acceptance was conducted in
9accordance with the provisions of this subchapter relating to collection, enforcement,
10disposition, or acceptance, the liability of a debtor or a secondary obligor for a
11deficiency is limited to an amount by which the sum of the secured obligation,
12expenses, and attorney fees exceeds the greater of:
AB111,181,1313 1. The proceeds of the collection, enforcement, disposition, or acceptance; or
AB111,181,1614 2. The amount of proceeds that would have been realized had the noncomplying
15secured party proceeded in accordance with the provisions of this subchapter
16relating to collection, enforcement, disposition, or acceptance.
AB111,181,1917 (d) For purposes of par. (c) 2., the amount of proceeds that would have been
18realized is equal to the sum of the secured obligation, expenses, and attorney fees
19unless the secured party proves that the amount is less than that sum.
AB111,181,2420 (e) If a deficiency or surplus is calculated under s. 409.615 (6), the debtor or
21obligor has the burden of establishing that the amount of proceeds of the disposition
22is significantly below the range of prices that a complying disposition to a person
23other than the secured party, a person related to the secured party, or a secondary
24obligor would have brought.
AB111,182,5
1(2) Nonconsumer transactions; no inference. The limitation of the rules in
2sub. (1) to transactions other than consumer transactions is intended to leave to the
3court the determination of the proper rules in consumer transactions. The court may
4not infer from that limitation the nature of the proper rule in consumer transactions
5and may continue to apply established approaches.
AB111,182,13 6409.627 Determination of whether conduct was commercially
7reasonable. (1)
Greater amount obtainable under other circumstances; no
8preclusion of commercial reasonableness.
The fact that a greater amount could
9have been obtained by a collection, enforcement, disposition, or acceptance at a
10different time or in a different method from that selected by the secured party is not
11of itself sufficient to preclude the secured party from establishing that the collection,
12enforcement, disposition, or acceptance was made in a commercially reasonable
13manner.
AB111,182,15 14(2) Dispositions that are commercially reasonable. A disposition of collateral
15is made in a commercially reasonable manner if the disposition is made:
AB111,182,1616 (a) In the usual manner on any recognized market;
AB111,182,1817 (b) At the price current in any recognized market at the time of the disposition;
18or
AB111,182,2019 (c) Otherwise in conformity with reasonable commercial practices among
20dealers in the type of property that was the subject of the disposition.
AB111,182,22 21(3) Approval by court or on behalf of creditors. A collection, enforcement,
22disposition, or acceptance is commercially reasonable if it has been approved:
AB111,182,2323 (a) In a judicial proceeding;
AB111,182,2424 (b) By a bona fide creditors' committee;
AB111,182,2525 (c) By a representative of creditors; or
AB111,183,1
1(d) By an assignee for the benefit of creditors.
AB111,183,5 2(4) Approval under sub. (3) not necessary; absence of approval has no effect.
3Approval under sub. (3) need not be obtained, and lack of approval does not mean
4that the collection, enforcement, disposition, or acceptance is not commercially
5reasonable.
AB111,183,10 6409.628 Nonliability and limitation on liability of secured party;
7liability of secondary obligor. (1)
Limitation of liability of secured party for
8noncompliance with chapter.
Unless a secured party knows that a person is a debtor
9or obligor, knows the identity of the person, and knows how to communicate with the
10person:
AB111,183,1311 (a) The secured party is not liable to the person, or to a secured party or
12lienholder that has filed a financing statement against the person, for failure to
13comply with this chapter; and
AB111,183,1514 (b) The secured party's failure to comply with this chapter does not affect the
15liability of the person for a deficiency.
AB111,183,17 16(2) Limitation of liability based on status as secured party. A secured party
17is not liable because of its status as secured party:
AB111,183,1818 (a) To a person that is a debtor or obligor, unless the secured party knows:
AB111,183,1919 1. That the person is a debtor or obligor;
AB111,183,2020 2. The identity of the person; and
AB111,183,2121 3. How to communicate with the person; or
AB111,183,2322 (b) To a secured party or lienholder that has filed a financing statement against
23a person, unless the secured party knows:
AB111,183,2424 1. That the person is a debtor; and
AB111,183,2525 2. The identity of the person.
AB111,184,7
1(3) Limitation of liability if reasonable belief that transaction not a
2consumer-goods transaction or consumer transaction.
A secured party is not
3liable to any person, and a person's liability for a deficiency is not affected, because
4of any act or omission arising out of the secured party's reasonable belief that a
5transaction is not a consumer-goods transaction or a consumer transaction or that
6goods are not consumer goods, if the secured party's belief is based on its reasonable
7reliance on:
AB111,184,98 (a) A debtor's representation concerning the purpose for which collateral was
9to be used, acquired, or held; or
AB111,184,1110 (b) An obligor's representation concerning the purpose for which a secured
11obligation was incurred.
AB111,184,13 12(4) Limitation of liability for statutory damages. A secured party is not liable
13to any person under s. 409.625 (3) (b) for its failure to comply with s. 409.616.
AB111,184,16 14(5) Limitation of multiple liability for statutory damages. A secured party
15is not liable under s. 409.625 (3) (b) more than once with respect to any one secured
16obligation.
AB111,184,1817 subchapter VII
18TRANSITION
AB111,184,23 19409.702 Savings clause. (1) Preeffective-date transactions or liens.
20Except as otherwise provided in this subchapter, 1999 Wisconsin Act .... (this act)
21applies to a transaction or lien within its scope, even if the transaction or lien was
22entered into or created before the effective date of this subsection .... [revisor inserts
23date].
AB111,184,25 24(2) Continuing validity. Except as otherwise provided in sub. (3) and ss.
25409.703 to 409.709:
AB111,185,7
1(a) Transactions and liens that were not governed by ch. 409, 1999 stats., were
2validly entered into or created before effective date of this paragraph .... [revisor
3inserts date], and would be subject to 1999 Wisconsin Act .... (this act) if they had
4been entered into or created on or after the effective date of this paragraph .... [revisor
5inserts date], and the rights, duties, and interests flowing from those transactions
6and liens remain valid on and after the effective date of this paragraph .... [revisor
7inserts date]; and
AB111,185,108 (b) The transactions and liens may be terminated, completed, consummated,
9and enforced as required or permitted by 1999 Wisconsin Act .... (this act) or by the
10law that otherwise would apply if this paragraph had not taken effect.
AB111,185,13 11(3) Preeffective-date proceedings. 1999 Wisconsin Act .... (this act) does not
12affect an action, case, or proceeding commenced before the effective date of this
13subsection .... [revisor inserts date].
AB111,185,21 14409.703 Security interest perfected before effective date. (1)
15Continuing priority over lien creditor: perfection requirements satisfied.
A
16security interest that is enforceable immediately before the effective date of this
17subsection .... [revisor inserts date], and would have priority over the rights of a
18person that becomes a lien creditor at that time is a perfected security interest under
191999 Wisconsin Act .... (this act) if, on the effective date of this subsection .... [revisor
20inserts date], the applicable requirements for enforceability and perfection under
211999 Wisconsin Act .... (this act) are satisfied without further action.
AB111,186,3 22(2) Continuing priority over lien creditor: perfection requirements not
23satisfied.
Except as otherwise provided in s. 409.705, if, immediately before the
24effective date of this subsection .... [revisor inserts date], a security interest is
25enforceable and would have priority over the rights of a person that becomes a lien

1creditor at that time, but the applicable requirements for enforceability or perfection
2under 1999 Wisconsin Act .... (this act) are not satisfied as of the effective date of this
3subsection .... [revisor inserts date], the security interest:
AB111,186,54 (a) Is a perfected security interest until one year after the effective date of this
5paragraph .... [revisor inserts date];
AB111,186,96 (b) Remains enforceable on and after one year after the effective date of this
7paragraph .... [revisor inserts date], only if the security interest becomes enforceable
8under s. 409.203 before one year after the effective date of this paragraph .... [revisor
9inserts date]; and
AB111,186,1310 (c) Remains perfected on and after one year after the effective date of this
11paragraph .... [revisor inserts date], only if the applicable requirements for perfection
12under 1999 Wisconsin Act .... (this act) are satisfied before one year after the effective
13date of this paragraph .... [revisor inserts date].
AB111,186,17 14409.704 Security interest unperfected before effective date. A security
15interest that is enforceable immediately before the effective date of this section ....
16[revisor inserts date], but which would be subordinate to the rights of a person that
17becomes a lien creditor at that time:
AB111,186,19 18(1) Remains an enforceable security interest for one year after the effective
19date of this subsection .... [revisor inserts date];
AB111,186,23 20(2) Remains enforceable on and after one year after the effective date of this
21subsection .... [revisor inserts date], if the security interest becomes enforceable
22under s. 409.203 on the effective date of this subsection .... [revisor inserts date], or
23within one year thereafter; and
AB111,186,24 24(3) Becomes perfected:
AB111,187,3
11. Without further action, on the effective date of this subdivision .... [revisor
2inserts date], if the applicable requirements for perfection under 1999 Wisconsin Act
3.... (this act) are satisfied before or at that time; or
AB111,187,54 2. When the applicable requirements for perfection are satisfied if the
5requirements are satisfied after that time.
AB111,187,18 6409.705 Effectiveness of action taken before effective date. (1)
7Preeffective-date action; one-year perfection period unless reperfected. If
8action, other than the filing of a financing statement, is taken before the effective
9date of this subsection .... [revisor inserts date], and the action would have resulted
10in priority of a security interest over the rights of a person that becomes a lien
11creditor had the security interest become enforceable before the effective date of this
12subsection .... [revisor inserts date], the action is effective to perfect a security
13interest that attaches under 1999 Wisconsin Act .... (this act) before the effective date
14of this subsection .... [revisor inserts date]. An attached security interest becomes
15unperfected one year after the effective date of this subsection .... [revisor inserts
16date], unless the security interest becomes a perfected security interest under 1999
17Wisconsin Act .... (this act) before one year after the effective date of this subsection
18.... [revisor inserts date].
AB111,187,22 19(2) Preeffective-date filing. The filing of a financing statement before the
20effective date of this subsection .... [revisor inserts date], is effective to perfect a
21security interest to the extent that the filing would satisfy the applicable
22requirements for perfection under 1999 Wisconsin Act .... (this act).
AB111,188,4 23(3) Preeffective-date filing in jurisdiction formerly governing perfection.
241999 Wisconsin Act .... (this act) does not render ineffective an effective financing
25statement that, before the effective date of this subsection .... [revisor inserts date],

1is filed and satisfies the applicable requirements for perfection under the law of the
2jurisdiction governing perfection as provided in s. 409.103, 1999 stats. However,
3except as otherwise provided in subs. (4) and (5) and s. 409.706, the financing
4statement ceases to be effective at the earlier of:
AB111,188,65 (a) The time the financing statement would have ceased to be effective under
6the law of the jurisdiction in which it is filed; or
AB111,188,77 (b) June 30, 2006.
AB111,188,16 8(4) Continuation statement. The filing of a continuation statement on or after
9the effective date of this subsection .... [revisor inserts date], does not continue the
10effectiveness of the financing statement filed before the effective date of this
11subsection .... [revisor inserts date]. However, upon the timely filing of a
12continuation statement on or after the effective date of this subsection .... [revisor
13inserts date], and in accordance with the law of the jurisdiction governing perfection
14as provided in subch. III, the effectiveness of a financing statement filed in the same
15office in that jurisdiction before the effective date of this subsection .... [revisor
16inserts date], continues for the period provided by the law of that jurisdiction.
AB111,188,24 17(5) Application of sub. (3) (b) to transmitting utility financing statement.
18Subsection (3) (b) applies to a financing statement that, before the effective date of
19this subsection .... [revisor inserts date], is filed against a transmitting utility and
20satisfies the applicable requirements for perfection under the law of the jurisdiction
21governing perfection as provided in s. 409.103, 1999 stats., only to the extent that
22subch. III provides that the law of a jurisdiction other than the jurisdiction in which
23the financing statement is filed governs perfection of a security interest in collateral
24covered by the financing statement.
AB111,189,5
1(6) Application of subch. V. A financing statement that includes a financing
2statement filed before the effective date of this subsection .... [revisor inserts date],
3and a continuation statement filed on or after the effective date of this subsection ....
4[revisor inserts date], is effective only to the extent that it satisfies the requirements
5of subch. V for an initial financing statement.
AB111,189,10 6409.706 When initial financing statement suffices to continue
7effectiveness of financing statement. (1)
Initial financing statement in lieu
8of continuation statement.
The filing of an initial financing statement in the office
9specified in s. 409.501 continues the effectiveness of a financing statement filed
10before the effective date of this subsection .... [revisor inserts date], if:
AB111,189,1211 (a) The filing of an initial financing statement in that office would be effective
12to perfect a security interest under 1999 Wisconsin Act .... (this act);
AB111,189,1413 (b) The preeffective-date financing statement was filed in an office in another
14state or another office in this state; and
AB111,189,1515 (c) The initial financing statement satisfies sub. (3).
AB111,189,18 16(2) Period of continued effectiveness. The filing of an initial financing
17statement under sub. (1) continues the effectiveness of the preeffective-date
18financing statement:
AB111,189,2119 (a) If the initial financing statement is filed before the effective date of this
20paragraph .... [revisor inserts date], for the period provided in s. 409.403, 1999 stats.,
21with respect to a financing statement; and
AB111,189,2422 (b) If the initial financing statement is filed on or after the effective date of this
23paragraph .... [revisor inserts date], for the period provided in s. 409.515 with respect
24to an initial financing statement.
AB111,190,2
1(3) Requirements for initial financing statement under sub. (1). To be
2effective for purposes of sub. (1), an initial financing statement must:
AB111,190,33 (a) Satisfy the requirements of subch. V for an initial financing statement;
AB111,190,74 (b) Identify the preeffective-date financing statement by indicating the office
5in which the financing statement was filed and providing the dates of filing and file
6numbers, if any, of the financing statement and of the most recent continuation
7statement filed with respect to the financing statement; and
AB111,190,88 (c) Indicate that the preeffective-date financing statement remains effective.
AB111,190,12 9409.707 Amendment of preeffective-date financing statement. (1)
10Preeffective-date financing statement. In this section, "preeffective-date
11financing statement" means a financing statement filed before the effective date of
12this subsection .... [revisor inserts date].
AB111,190,19 13(2) Applicable law. On or after the effective date of this subsection .... [revisor
14inserts date], a person may add or delete collateral covered by, continue or terminate
15the effectiveness of, or otherwise amend the information provided in, a
16preeffective-date financing statement only in accordance with the law of the
17jurisdiction governing perfection as provided in subch. III. However, the
18effectiveness of a preeffective-date financing statement also may be terminated in
19accordance with the law of the jurisdiction in which the financing statement is filed.
AB111,190,23 20(3) Method of amending: general rule. Except as otherwise provided in sub.
21(4), if the law of this state governs perfection of a security interest, the information
22in a preeffective-date financing statement may be amended on or after the effective
23date of this subsection .... [revisor inserts date], only if:
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