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:
AB111,190,2524 (a) The preeffective-date financing statement and an amendment are filed in
25the office specified in s. 409.501;
AB111,191,3
1(b) An amendment is filed in the office specified in s. 409.501 concurrently with,
2or after the filing in that office of, an initial financing statement that satisfies s.
3409.706 (3); or
AB111,191,54 (c) An initial financing statement that provides the information as amended
5and satisfies s. 409.706 (3) is filed in the office specified in s. 409.501.
AB111,191,8 6(4) Method of amending: continuation. If the law of this state governs
7perfection of a security interest, the effectiveness of a preeffective-date financing
8statement may be continued only under s. 409.705 (4) and (6) or 409.706.
AB111,191,16 9(5) Method of amending: additional termination rule. Whether or not the law
10of this state governs perfection of a security interest, the effectiveness of a
11preeffective-date financing statement filed in this state may be terminated on or
12after the effective date of this subsection .... [revisor inserts date], by filing a
13termination statement in the office in which the preeffective-date financing
14statement is filed, unless an initial financing statement that satisfies s. 409.706 (3)
15has been filed in the office specified by the law of the jurisdiction governing perfection
16as provided in subch. III as the office in which to file a financing statement.
AB111,191,19 17409.708 Persons entitled to file initial financing statement or
18continuation statement.
A person may file an initial financing statement or a
19continuation statement under this subchapter if:
AB111,191,20 20(1) The secured party of record authorizes the filing; and
AB111,191,21 21(2) The filing is necessary under this subchapter:
AB111,191,2322 (a) To continue the effectiveness of a financing statement filed before the
23effective date of this paragraph .... [revisor inserts date]; or
AB111,191,2424 (b) To perfect or continue the perfection of a security interest.
AB111,192,4
1409.709 Priority. (1) Law governing priority. 1999 Wisconsin Act .... (this
2act) determines the priority of conflicting claims to collateral. However, if the
3relative priorities of the claims were established before the effective date of this
4subsection .... [revisor inserts date], ch. 409, 1999 stats., determines priority.
AB111,192,13 5(2) Priority if security interest becomes enforceable under s. 409.203. For
6purposes of s. 409.322 (1), the priority of a security interest that becomes enforceable
7under s. 409.203 dates from the effective date of this subsection .... [revisor inserts
8date], if the security interest is perfected under 1999 Wisconsin Act .... (this act) by
9the filing of a financing statement before the effective date of this subsection ....
10[revisor inserts date], which would not have been effective to perfect the security
11interest under ch. 409, 1999 stats. This subsection does not apply to conflicting
12security interests each of which is perfected by the filing of such a financing
13statement.
AB111,192,15 14409.710 Special transitional provision for maintaining and searching
15local filing office records. (1)
Definitions. In this section:
AB111,192,1616 (a) "Former-ch.-409 records":
AB111,192,1717 1. Means:
AB111,192,2218 a. Financing statements and other records that have been filed in a local filing
19office before July 1, 2001, and that are, or upon processing and indexing will be,
20reflected in the index maintained, as of June 30, 2001, by the local filing office for
21financing statements and other records filed in the local filing office before July 1,
222001; and
AB111,192,2323 b. The index as of June 30, 2001.
AB111,193,3
12. Does not include records presented to a local filing office for filing after June
230, 2001, whether or not the records relate to financing statements filed in the local
3filing office before July 1, 2001.
AB111,193,84 (b) "Local filing office" means a filing office, other than the department of
5financial institutions, that is designated as the proper place to file a financing
6statement under s. 409.401 (1), 1999 stats., with respect to a record that covers a type
7of collateral as to which the filing office is designated in that subsection as the proper
8place to file.
AB111,193,11 9(2) Prohibition of filing after June 30, 2001. A local filing office shall not accept
10for filing a record presented after June 30, 2001, whether or not the record relates
11to a financing statement filed in the local filing office before July 1, 2001.
AB111,193,17 12(3) Maintenance of records. Until July 1, 2008, each local filing office must
13maintain all former-ch.-409 records in accordance with ch. 409, 1999 stats. A
14former-ch.-409 record that is not reflected on the index maintained at June 30, 2001,
15by the local filing office must be processed and indexed, and reflected on the index
16as of June 30, 2001, as soon as practicable but in any event no later than July 30,
172001.
AB111,194,4 18(4) Information requests. Until at least June 30, 2008, each local filing office
19must respond to requests for information with respect to former-ch.-409 records
20relating to a debtor and issue certificates, in accordance with ch. 409, 1999 stats. The
21fees charged for responding to requests for information relating to a debtor and
22issuing certificates with respect to former-ch.-409 records must be the fees in effect
23under ch. 409, 1999 stats., on June 30, 2001, unless a different fee is later set by the
24local filing office. However, the different fee must not exceed the amount set by
25filing-office rule for responding to a request for information relating to a debtor or

1for issuing a certificate. This subsection does not require that a fee be charged for
2remote access searching of the filing-office data base. The rule promulgated
3pursuant to this subsection need not specify a fee for remote access searching of the
4filing-office data base.
AB111,194,7 5(5) Destruction of records. After June 30, 2008, each local filing office may
6remove and destroy, in accordance with any then-applicable record retention law of
7this state, all former-ch.-409 records, including the related index.
AB111,194,10 8(6) Exclusion. This section does not apply, with respect to financing
9statements and other records, to a filing office in which mortgages or records of
10mortgages on real property are required to be filed or recorded, if:
AB111,194,1111 (a) The collateral is timber to be cut or as-extracted collateral; or
AB111,194,1312 (b) The record is or relates to a financing statement filed as a fixture filing and
13the collateral is goods that are or are to become fixtures.
AB111, s. 79 14Section 79. 411.103 (3) (a) of the statutes is amended to read:
AB111,194,1515 411.103 (3) (a) "Account" — s. 409.106 409.102 (1) (ag).
AB111, s. 80 16Section 80. 411.103 (3) (d) of the statutes is amended to read:
AB111,194,1717 411.103 (3) (d) "Chattel paper" — s. 409.105 (1) (b) 409.102 (1) (cm).
AB111, s. 81 18Section 81. 411.103 (3) (e) of the statutes is amended to read:
AB111,194,1919 411.103 (3) (e) "Consumer goods" — s. 409.109 (1) 409.102 (1) (fm).
AB111, s. 82 20Section 82. 411.103 (3) (f) of the statutes is amended to read:
AB111,194,2121 411.103 (3) (f) "Document" — s. 409.105 (1) (f) 409.102 (1) (hg).
AB111, s. 83 22Section 83. 411.103 (3) (h) of the statutes is amended to read:
AB111,194,2323 411.103 (3) (h) "General intangibles intangible" — s. 409.106 409.102 (1) (kg).
AB111, s. 84 24Section 84. 411.103 (3) (j) of the statutes is amended to read:
AB111,194,2525 411.103 (3) (j) "Instrument" — s. 409.105 (1) (i) 409.102 (1) (Lm).
AB111, s. 85
1Section 85. 411.103 (3) (L) of the statutes is amended to read:
AB111,195,22 411.103 (3) (L) "Mortgage" — s. 409.105 (1) (j) 409.102 (1) (nm).
AB111, s. 86 3Section 86. 411.103 (3) (m) of the statutes is amended to read:
AB111,195,44 411.103 (3) (m) "Pursuant to commitment" — s. 409.105 (1) (k) 409.102 (1) (qs).
AB111, s. 87 5Section 87. 411.303 (1) and (2) of the statutes are amended to read:
AB111,195,76 411.303 (1) In this section, "creation of a security interest" includes the sale of
7a lease contract that is subject to ch. 409 under s. 409.102 (1) (b) 409.109 (1) (c).
AB111,195,15 8(2) Except as provided in subs. sub. (3) and (4) s. 409.407, a provision in a lease
9agreement that prohibits the voluntary or involuntary transfer, including a transfer
10by sale, sublease, creation or enforcement of a security interest, or attachment, levy,
11or other judicial process, of an interest of a party under the lease contract or of the
12lessor's residual interest in the goods, or that makes such a transfer an event of
13default, gives rise to the rights and remedies provided in sub. (5) (4), but a transfer
14that is prohibited or is an event of default under the lease agreement is otherwise
15effective.
AB111, s. 88 16Section 88. 411.303 (3) of the statutes is repealed.
AB111, s. 89 17Section 89. 411.303 (4) of the statutes is renumbered 411.303 (3) and amended
18to read:
AB111,196,219 411.303 (3) A provision in a lease agreement that prohibits a transfer of a right
20to damages for default with respect to the whole lease contract or of a right to
21payment arising out of the transferor's due performance of the transferor's entire
22obligation, or that makes such a transfer an event of default, is not enforceable, and
23such a transfer is not a transfer that materially impairs the prospect of obtaining
24return performance by, materially changes the duty of, or materially increases the

1burden or risk imposed on, the other party to the lease contract within the purview
2of sub. (5) (4).
AB111, s. 90 3Section 90. 411.303 (5) of the statutes is renumbered 411.303 (4), and 411.303
4(4) (intro.), as renumbered, is amended to read:
AB111,196,55 411.303 (4) (intro.) Subject to subs. sub. (3) and (4) s. 409.407:
AB111, s. 91 6Section 91. 411.303 (6), (7) and (8) of the statutes are renumbered 411.303 (5),
7(6) and (7).
AB111, s. 92 8Section 92. 411.307 (2) (intro.) and (a) of the statutes are consolidated,
9renumbered 411.307 (2) and amended to read:
AB111,196,1310 411.307 (2) Except as provided in subs. sub. (3) and (4) and ss. 411.306 and
11411.308, a creditor of a lessor takes subject to the lease contract unless any of the
12following occurs: (a) The
the creditor holds a lien that attached to the goods before
13the lease contract became enforceable.
AB111, s. 93 14Section 93. 411.307 (2) (b) and (c) of the statutes are repealed.
AB111, s. 94 15Section 94. 411.307 (3) of the statutes is repealed and recreated to read:
AB111,196,1816 411.307 (3) Except as otherwise provided in ss. 409.317, 409.321, and 409.323,
17a lessee takes a leasehold interest subject to a security interest held by a creditor of
18the lessor.
AB111, s. 95 19Section 95. 411.307 (4) of the statutes is repealed.
AB111, s. 96 20Section 96. 411.309 (1) (c) of the statutes is amended to read:
AB111,196,2421 411.309 (1) (c) "Fixture filing" means a filing, in the office where a record of a
22mortgage on real estate would be filed or recorded, of a financing statement covering
23goods that are or are to become fixtures and conforming to the requirements of s.
24409.402 (5) 409.502 (1) and (2).
AB111, s. 97 25Section 97. 421.301 (21) of the statutes is amended to read:
AB111,197,3
1421.301 (21) "Goods" has the meaning given in s. 409.102 (1) (ks) and includes
2goods (s. 409.105) not in existence at the time the transaction is entered into and
3goods which are or are to become fixtures.
AB111, s. 98 4Section 98. 422.413 (2r) (intro.) of the statutes is amended to read:
AB111,197,75 422.413 (2r) (intro.) Notwithstanding s. 409.504 409.615 (1), the proceeds of
6any disposition of collateral referred to in sub. (2g) shall be applied in the following
7order to:
AB111, s. 99 8Section 99. 422.413 (2r) (f) of the statutes is amended to read:
AB111,197,119 422.413 (2r) (f) The satisfaction of indebtedness secured by any subordinate
10security interest in the collateral, subject to the restrictions set forth in s. 409.504
11409.615 (1) (c) and (2).
AB111, s. 100 12Section 100. 425.105 (4) of the statutes is amended to read:
AB111,197,1713 425.105 (4) With respect to consumer credit transactions in which the creditor
14has a security interest in, and possession of, instruments or documents (s. 409.105),
15as each is defined in s. 409.102 (1),
which threaten to decline speedily in value, this
16section does not restrict the creditor's rights to dispose of such property pursuant to
17s. 409.504 subch. VI of ch. 409 and the terms of the creditor's security agreement.
AB111, s. 101 18Section 101. 425.203 (3) (intro.) of the statutes is amended to read:
AB111,197,2319 425.203 (3) (intro.) Following recovery of collateral pursuant to a judgment
20under sub. (2), the merchant may either retain the collateral in full satisfaction of
21the customer's obligation pursuant to s. 409.505 ss. 409.620 to 409.624, in which
22event the merchant shall satisfy the judgment obtained pursuant to sub. (2); or shall
23dispose of the collateral pursuant to s. 409.504 subch. VI of ch. 409, in which event:
AB111, s. 102 24Section 102. 425.204 (2) of the statutes is amended to read:
AB111,198,4
1425.204 (2) The rights and obligations of the merchant and customer with
2respect to collateral voluntarily surrendered as defined in this section shall be
3governed by ss. 409.504 to 409.507 subch. VI of ch. 409, and are not subject to this
4subchapter.
AB111, s. 103 5Section 103. 425.207 (2) of the statutes is amended to read:
AB111,199,46 425.207 (2) A merchant who reasonably believes that a customer has
7abandoned collateral or goods subject to a consumer lease may take possession of
8such collateral or leased goods and preserve it. However, the customer may recover
9such collateral or leased goods upon request unless at the time of request the
10customer has surrendered the collateral or leased goods, or judgment for the
11merchant has been entered in a proceeding for recovery of collateral or leased goods
12under s. 425.205 or in a judgment described in s. 425.203 (2). A merchant taking
13possession of collateral or leased goods pursuant to this section shall promptly send
14notification to the customer's last-known address of such action and of the
15customer's right to recover such collateral or leased goods under this section. If the
16collateral or leased goods are recovered by the customer pursuant to this section, it
17shall be returned to the customer at the location where the merchant took possession
18of such collateral or leased goods pursuant to this section or, at the option of the
19merchant, at such other location designated by the customer; and any expense
20incurred by the merchant in taking possession of, holding and returning the
21collateral or leased goods to the customer shall be borne by the merchant. If after
22taking possession of collateral or leased goods pursuant to this subsection, the
23merchant perfects the right to possession through a surrender by the customer or a
24judgment under s. 425.203 (2) or 425.205, the customer is liable for the expenses set
25forth in s. 409.504 409.615 (1). In determining such expenses, leased goods shall be

1considered collateral under s. 409.504 409.615 (1). However, a customer is not liable
2for expenses of holding the collateral or leased goods from the time the merchant
3takes possession until the merchant perfects the right to possession in the manner
4provided in this subsection.
AB111, s. 104 5Section 104. 425.208 (6) of the statutes is amended to read:
AB111,199,126 425.208 (6) The creditor shall not dispose of the collateral or enter into a
7contract for the disposition of the collateral, until the expiration of the period for
8redemption provided in this section, unless the collateral is perishable or threatens
9to decline speedily in value. Upon the expiration of such period any disposition of the
10collateral shall be subject to ss. 409.504, 409.505 and 409.506 subch. VI of ch. 409,
11except that the customer may be liable for a deficiency only to the extent provided
12in ss. 425.209 and 425.210.
AB111, s. 105 13Section 105. 779.48 (2) of the statutes is amended to read:
AB111,199,2414 779.48 (2) Every person given a lien by ss. 779.41 and 779.43 (3) may in case
15the claim remains unpaid for 2 months after the debt is incurred, and a person given
16a lien under s. 779.47 (2) may if the claim remains unpaid 90 days after the lien is
17perfected, enforce such lien by sale of the property substantially in conformity with
18ss. 409.501 to 409.507 subch. VI of ch. 409 and the lien claimant shall have the rights
19and duties of a secured party thereunder. When such sections are applied to the
20enforcement of such lien the word debtor or equivalent when used therein shall be
21deemed to refer to the owner of the property and any other person having an interest
22shown by instrument filed as required by law or shown in the records of the
23department of transportation, and the word indebtedness or equivalent shall include
24all claims upon which such lien is based.
AB111, s. 106 25Section 106. 779.89 of the statutes is amended to read:
AB111,200,6
1779.89 Attachment and preservation. All prepaid maintenance liens
2attach at the time of the first prepayment and shall be preserved from the time the
3lien attaches. It is not necessary to file or record any notice of the lien in order to
4preserve or perfect the lien although a customer may file this lien in the manner
5prescribed for perfecting liens under subch. III of ch. 409 regarding debtors who are
6located in this state
.
AB111, s. 107 7Section 107. 779.91 (2) of the statutes is amended to read:
AB111,200,108 779.91 (2) Upon discharge of a prepaid maintenance lien, any customer who
9filed the lien as permitted in s. 779.89 is subject to the requirements of s. 409.404
10409.513.
AB111, s. 108 11Section 108. 779.97 (4) (a) 1. of the statutes is amended to read:
AB111,200,1512 779.97 (4) (a) 1. With the department of financial institutions, the filing officer
13shall cause the notice to be marked, held and indexed dealt with in accordance with
14s. 409.403 (4) 409.519 as if the notice were a financing statement within the meaning
15of chs. 401 to 411; or
AB111, s. 109 16Section 109. 779.97 (4) (b) 1. of the statutes is amended to read:
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