AB111: Bill Text

AB111,182,18 (b) At the price current in any recognized market at the time of the disposition; or

AB111,182,20 (c) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.

AB111,182,22 (3) Approval by court or on behalf of creditors. A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:

AB111,182,23 (a) In a judicial proceeding;

AB111,182,24 (b) By a bona fide creditors' committee;

AB111,182,25 (c) By a representative of creditors; or

AB111,183,1 (d) By an assignee for the benefit of creditors.

AB111,183,5 (4) Approval under sub. (3) not necessary; absence of approval has no effect. Approval under sub. (3) need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.

AB111,183,10 409.628 Nonliability and limitation on liability of secured party; liability of secondary obligor. (1) Limitation of liability of secured party for noncompliance with chapter. Unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person:

AB111,183,13 (a) The secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with this chapter; and

AB111,183,15 (b) The secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.

AB111,183,17 (2) Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party:

AB111,183,18 (a) To a person that is a debtor or obligor, unless the secured party knows:

AB111,183,19 1. That the person is a debtor or obligor;

AB111,183,20 2. The identity of the person; and

AB111,183,21 3. How to communicate with the person; or

AB111,183,23 (b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

AB111,183,24 1. That the person is a debtor; and

AB111,183,25 2. The identity of the person.

AB111,184,7 (3) Limitation of liability if reasonable belief that transaction not a consumer-goods transaction or consumer transaction. A secured party is not liable to any person, and a person's liability for a deficiency is not affected, because of any act or omission arising out of the secured party's reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party's belief is based on its reasonable reliance on:

AB111,184,9 (a) A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or

AB111,184,11 (b) An obligor's representation concerning the purpose for which a secured obligation was incurred.

AB111,184,13 (4) Limitation of liability for statutory damages. A secured party is not liable to any person under s. 409.625 (3) (b) for its failure to comply with s. 409.616.

AB111,184,16 (5) Limitation of multiple liability for statutory damages. A secured party is not liable under s. 409.625 (3) (b) more than once with respect to any one secured obligation.

AB111,184,18 subchapter VII TRANSITION

AB111,184,23 409.702 Savings clause. (1) Preeffective-date transactions or liens. Except as otherwise provided in this subchapter, 1999 Wisconsin Act .... (this act) applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before the effective date of this subsection .... [revisor inserts date].

AB111,184,25 (2) Continuing validity. Except as otherwise provided in sub. (3) and ss. 409.703 to 409.709:

AB111,185,7 (a) Transactions and liens that were not governed by ch. 409, 1999 stats., were validly entered into or created before effective date of this paragraph .... [revisor inserts date], and would be subject to 1999 Wisconsin Act .... (this act) if they had been entered into or created on or after the effective date of this paragraph .... [revisor inserts date], and the rights, duties, and interests flowing from those transactions and liens remain valid on and after the effective date of this paragraph .... [revisor inserts date]; and

AB111,185,10 (b) The transactions and liens may be terminated, completed, consummated, and enforced as required or permitted by 1999 Wisconsin Act .... (this act) or by the law that otherwise would apply if this paragraph had not taken effect.

AB111,185,13 (3) Preeffective-date proceedings. 1999 Wisconsin Act .... (this act) does not affect an action, case, or proceeding commenced before the effective date of this subsection .... [revisor inserts date].

AB111,185,21 409.703 Security interest perfected before effective date. (1) Continuing priority over lien creditor: perfection requirements satisfied. A security interest that is enforceable immediately before the effective date of this subsection .... [revisor inserts date], and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under 1999 Wisconsin Act .... (this act) if, on the effective date of this subsection .... [revisor inserts date], the applicable requirements for enforceability and perfection under 1999 Wisconsin Act .... (this act) are satisfied without further action.

AB111,186,3 (2) Continuing priority over lien creditor: perfection requirements not satisfied. Except as otherwise provided in s. 409.705, if, immediately before the effective date of this subsection .... [revisor inserts date], a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under 1999 Wisconsin Act .... (this act) are not satisfied as of the effective date of this subsection .... [revisor inserts date], the security interest:

AB111,186,5 (a) Is a perfected security interest until one year after the effective date of this paragraph .... [revisor inserts date];

AB111,186,9 (b) Remains enforceable on and after one year after the effective date of this paragraph .... [revisor inserts date], only if the security interest becomes enforceable under s. 409.203 before one year after the effective date of this paragraph .... [revisor inserts date]; and

AB111,186,13 (c) Remains perfected on and after one year after the effective date of this paragraph .... [revisor inserts date], only if the applicable requirements for perfection under 1999 Wisconsin Act .... (this act) are satisfied before one year after the effective date of this paragraph .... [revisor inserts date].

AB111,186,17 409.704 Security interest unperfected before effective date. A security interest that is enforceable immediately before the effective date of this section .... [revisor inserts date], but which would be subordinate to the rights of a person that becomes a lien creditor at that time:

AB111,186,19 (1) Remains an enforceable security interest for one year after the effective date of this subsection .... [revisor inserts date];

AB111,186,23 (2) Remains enforceable on and after one year after the effective date of this subsection .... [revisor inserts date], if the security interest becomes enforceable under s. 409.203 on the effective date of this subsection .... [revisor inserts date], or within one year thereafter; and

AB111,186,24 (3) Becomes perfected:

AB111,187,3 1. Without further action, on the effective date of this subdivision .... [revisor inserts date], if the applicable requirements for perfection under 1999 Wisconsin Act .... (this act) are satisfied before or at that time; or

AB111,187,5 2. When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.

AB111,187,18 409.705 Effectiveness of action taken before effective date. (1) Preeffective-date action; one-year perfection period unless reperfected. If action, other than the filing of a financing statement, is taken before the effective date of this subsection .... [revisor inserts date], and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before the effective date of this subsection .... [revisor inserts date], the action is effective to perfect a security interest that attaches under 1999 Wisconsin Act .... (this act) before the effective date of this subsection .... [revisor inserts date]. An attached security interest becomes unperfected one year after the effective date of this subsection .... [revisor inserts date], unless the security interest becomes a perfected security interest under 1999 Wisconsin Act .... (this act) before one year after the effective date of this subsection .... [revisor inserts date].

AB111,187,22 (2) Preeffective-date filing. The filing of a financing statement before the effective date of this subsection .... [revisor inserts date], is effective to perfect a security interest to the extent that the filing would satisfy the applicable requirements for perfection under 1999 Wisconsin Act .... (this act).

AB111,188,4 (3) Preeffective-date filing in jurisdiction formerly governing perfection. 1999 Wisconsin Act .... (this act) does not render ineffective an effective financing statement that, before the effective date of this subsection .... [revisor inserts date], is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in s. 409.103, 1999 stats. However, except as otherwise provided in subs. (4) and (5) and s. 409.706, the financing statement ceases to be effective at the earlier of:

AB111,188,6 (a) The time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or

AB111,188,7 (b) June 30, 2006.

AB111,188,16 (4) Continuation statement. The filing of a continuation statement on or after the effective date of this subsection .... [revisor inserts date], does not continue the effectiveness of the financing statement filed before the effective date of this subsection .... [revisor inserts date]. However, upon the timely filing of a continuation statement on or after the effective date of this subsection .... [revisor inserts date], and in accordance with the law of the jurisdiction governing perfection as provided in subch. III, the effectiveness of a financing statement filed in the same office in that jurisdiction before the effective date of this subsection .... [revisor inserts date], continues for the period provided by the law of that jurisdiction.

AB111,188,24 (5) Application of sub. (3) (b) to transmitting utility financing statement. Subsection (3) (b) applies to a financing statement that, before the effective date of this subsection .... [revisor inserts date], is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in s. 409.103, 1999 stats., only to the extent that subch. III provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.

AB111,189,5 (6) Application of subch. V. A financing statement that includes a financing statement filed before the effective date of this subsection .... [revisor inserts date], and a continuation statement filed on or after the effective date of this subsection .... [revisor inserts date], is effective only to the extent that it satisfies the requirements of subch. V for an initial financing statement.

AB111,189,10 409.706 When initial financing statement suffices to continue effectiveness of financing statement. (1) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in s. 409.501 continues the effectiveness of a financing statement filed before the effective date of this subsection .... [revisor inserts date], if:

AB111,189,12 (a) The filing of an initial financing statement in that office would be effective to perfect a security interest under 1999 Wisconsin Act .... (this act);

AB111,189,14 (b) The preeffective-date financing statement was filed in an office in another state or another office in this state; and

AB111,189,15 (c) The initial financing statement satisfies sub. (3).

AB111,189,18 (2) Period of continued effectiveness. The filing of an initial financing statement under sub. (1) continues the effectiveness of the preeffective-date financing statement:

AB111,189,21 (a) If the initial financing statement is filed before the effective date of this paragraph .... [revisor inserts date], for the period provided in s. 409.403, 1999 stats., with respect to a financing statement; and

AB111,189,24 (b) If the initial financing statement is filed on or after the effective date of this paragraph .... [revisor inserts date], for the period provided in s. 409.515 with respect to an initial financing statement.

AB111,190,2 (3) Requirements for initial financing statement under sub. (1). To be effective for purposes of sub. (1), an initial financing statement must:

AB111,190,3 (a) Satisfy the requirements of subch. V for an initial financing statement;

AB111,190,7 (b) Identify the preeffective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and

AB111,190,8 (c) Indicate that the preeffective-date financing statement remains effective.

AB111,190,12 409.707 Amendment of preeffective-date financing statement. (1) Preeffective-date financing statement. In this section, "preeffective-date financing statement" means a financing statement filed before the effective date of this subsection .... [revisor inserts date].

AB111,190,19 (2) Applicable law. On or after the effective date of this subsection .... [revisor inserts date], a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in subch. III. However, the effectiveness of a preeffective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.

AB111,190,23 (3) Method of amending: general rule. Except as otherwise provided in sub. (4), if the law of this state governs perfection of a security interest, the information in a preeffective-date financing statement may be amended on or after the effective date of this subsection .... [revisor inserts date], only if:

AB111,190,25 (a) The preeffective-date financing statement and an amendment are filed in the office specified in s. 409.501;

AB111,191,3 (b) An amendment is filed in the office specified in s. 409.501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies s. 409.706 (3); or

AB111,191,5 (c) An initial financing statement that provides the information as amended and satisfies s. 409.706 (3) is filed in the office specified in s. 409.501.

AB111,191,8 (4) Method of amending: continuation. If the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement may be continued only under s. 409.705 (4) and (6) or 409.706.

AB111,191,16 (5) Method of amending: additional termination rule. Whether or not the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement filed in this state may be terminated on or after the effective date of this subsection .... [revisor inserts date], by filing a termination statement in the office in which the preeffective-date financing statement is filed, unless an initial financing statement that satisfies s. 409.706 (3) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in subch. III as the office in which to file a financing statement.

AB111,191,19 409.708 Persons entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this subchapter if:

AB111,191,20 (1) The secured party of record authorizes the filing; and

AB111,191,21 (2) The filing is necessary under this subchapter:

AB111,191,23 (a) To continue the effectiveness of a financing statement filed before the effective date of this paragraph .... [revisor inserts date]; or

AB111,191,24 (b) To perfect or continue the perfection of a security interest.

AB111,192,4 409.709 Priority. (1) Law governing priority. 1999 Wisconsin Act .... (this act) determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before the effective date of this subsection .... [revisor inserts date], ch. 409, 1999 stats., determines priority.

AB111,192,13 (2) Priority if security interest becomes enforceable under s. 409.203. For purposes of s. 409.322 (1), the priority of a security interest that becomes enforceable under s. 409.203 dates from the effective date of this subsection .... [revisor inserts date], if the security interest is perfected under 1999 Wisconsin Act .... (this act) by the filing of a financing statement before the effective date of this subsection .... [revisor inserts date], which would not have been effective to perfect the security interest under ch. 409, 1999 stats. This subsection does not apply to conflicting security interests each of which is perfected by the filing of such a financing statement.

AB111,192,15 409.710 Special transitional provision for maintaining and searching local filing office records. (1) Definitions. In this section:

AB111,192,16 (a) "Former-ch.-409 records":

AB111,192,17 1. Means:

AB111,192,22 a. Financing statements and other records that have been filed in a local filing office before July 1, 2001, and that are, or upon processing and indexing will be, reflected in the index maintained, as of June 30, 2001, by the local filing office for financing statements and other records filed in the local filing office before July 1, 2001; and

AB111,192,23 b. The index as of June 30, 2001.

AB111,193,3 2. Does not include records presented to a local filing office for filing after June 30, 2001, whether or not the records relate to financing statements filed in the local filing office before July 1, 2001.

AB111,193,8 (b) "Local filing office" means a filing office, other than the department of financial institutions, that is designated as the proper place to file a financing statement under s. 409.401 (1), 1999 stats., with respect to a record that covers a type of collateral as to which the filing office is designated in that subsection as the proper place to file.

AB111,193,11 (2) Prohibition of filing after June 30, 2001. A local filing office shall not accept for filing a record presented after June 30, 2001, whether or not the record relates to a financing statement filed in the local filing office before July 1, 2001.

AB111,193,17 (3) Maintenance of records. Until July 1, 2008, each local filing office must maintain all former-ch.-409 records in accordance with ch. 409, 1999 stats. A former-ch.-409 record that is not reflected on the index maintained at June 30, 2001, by the local filing office must be processed and indexed, and reflected on the index as of June 30, 2001, as soon as practicable but in any event no later than July 30, 2001.

AB111,194,4 (4) Information requests. Until at least June 30, 2008, each local filing office must respond to requests for information with respect to former-ch.-409 records relating to a debtor and issue certificates, in accordance with ch. 409, 1999 stats. The fees charged for responding to requests for information relating to a debtor and issuing certificates with respect to former-ch.-409 records must be the fees in effect under ch. 409, 1999 stats., on June 30, 2001, unless a different fee is later set by the local filing office. However, the different fee must not exceed the amount set by filing-office rule for responding to a request for information relating to a debtor or for issuing a certificate. 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.

AB111,194,7 (5) Destruction of records. After June 30, 2008, each local filing office may remove and destroy, in accordance with any then-applicable record retention law of this state, all former-ch.-409 records, including the related index.

AB111,194,10 (6) Exclusion. This section does not apply, with respect to financing statements and other records, to a filing office in which mortgages or records of mortgages on real property are required to be filed or recorded, if:

AB111,194,11 (a) The collateral is timber to be cut or as-extracted collateral; or