AB111: Bill Text

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

AB111,194,13 (b) The record is or relates to a financing statement filed as a fixture filing and the collateral is goods that are or are to become fixtures.

AB111, s. 79 Section 79. 411.103 (3) (a) of the statutes is amended to read:

AB111,194,15 411.103 (3) (a) "Account" — s. 409.106 409.102 (1) (ag).

AB111, s. 80 Section 80. 411.103 (3) (d) of the statutes is amended to read:

AB111,194,17 411.103 (3) (d) "Chattel paper" — s. 409.105 (1) (b) 409.102 (1) (cm).

AB111, s. 81 Section 81. 411.103 (3) (e) of the statutes is amended to read:

AB111,194,19 411.103 (3) (e) "Consumer goods" — s. 409.109 (1) 409.102 (1) (fm).

AB111, s. 82 Section 82. 411.103 (3) (f) of the statutes is amended to read:

AB111,194,21 411.103 (3) (f) "Document" — s. 409.105 (1) (f) 409.102 (1) (hg).

AB111, s. 83 Section 83. 411.103 (3) (h) of the statutes is amended to read:

AB111,194,23 411.103 (3) (h) "General intangibles intangible" — s. 409.106 409.102 (1) (kg).

AB111, s. 84 Section 84. 411.103 (3) (j) of the statutes is amended to read:

AB111,194,25 411.103 (3) (j) "Instrument" — s. 409.105 (1) (i) 409.102 (1) (Lm).

AB111, s. 85 Section 85. 411.103 (3) (L) of the statutes is amended to read:

AB111,195,2 411.103 (3) (L) "Mortgage" — s. 409.105 (1) (j) 409.102 (1) (nm).

AB111, s. 86 Section 86. 411.103 (3) (m) of the statutes is amended to read:

AB111,195,4 411.103 (3) (m) "Pursuant to commitment" — s. 409.105 (1) (k) 409.102 (1) (qs).

AB111, s. 87 Section 87. 411.303 (1) and (2) of the statutes are amended to read:

AB111,195,7 411.303 (1) In this section, "creation of a security interest" includes the sale of a lease contract that is subject to ch. 409 under s. 409.102 (1) (b) 409.109 (1) (c).

AB111,195,15 (2) Except as provided in subs. sub. (3) and (4) s. 409.407, a provision in a lease agreement that prohibits the voluntary or involuntary transfer, including a transfer by sale, sublease, creation or enforcement of a security interest, or attachment, levy, or other judicial process, of an interest of a party under the lease contract or of the lessor's residual interest in the goods, or that makes such a transfer an event of default, gives rise to the rights and remedies provided in sub. (5) (4), but a transfer that is prohibited or is an event of default under the lease agreement is otherwise effective.

AB111, s. 88 Section 88. 411.303 (3) of the statutes is repealed.

AB111, s. 89 Section 89. 411.303 (4) of the statutes is renumbered 411.303 (3) and amended to read:

AB111,196,2 411.303 (3) A provision in a lease agreement that prohibits a transfer of a right to damages for default with respect to the whole lease contract or of a right to payment arising out of the transferor's due performance of the transferor's entire obligation, or that makes such a transfer an event of default, is not enforceable, and such a transfer is not a transfer that materially impairs the prospect of obtaining return performance by, materially changes the duty of, or materially increases the burden or risk imposed on, the other party to the lease contract within the purview of sub. (5) (4).

AB111, s. 90 Section 90. 411.303 (5) of the statutes is renumbered 411.303 (4), and 411.303 (4) (intro.), as renumbered, is amended to read:

AB111,196,5 411.303 (4) (intro.) Subject to subs. sub. (3) and (4) s. 409.407:

AB111, s. 91 Section 91. 411.303 (6), (7) and (8) of the statutes are renumbered 411.303 (5), (6) and (7).

AB111, s. 92 Section 92. 411.307 (2) (intro.) and (a) of the statutes are consolidated, renumbered 411.307 (2) and amended to read:

AB111,196,13 411.307 (2) Except as provided in subs. sub. (3) and (4) and ss. 411.306 and 411.308, a creditor of a lessor takes subject to the lease contract unless any of the following occurs: (a) The the creditor holds a lien that attached to the goods before the lease contract became enforceable.

AB111, s. 93 Section 93. 411.307 (2) (b) and (c) of the statutes are repealed.

AB111, s. 94 Section 94. 411.307 (3) of the statutes is repealed and recreated to read:

AB111,196,18 411.307 (3) Except as otherwise provided in ss. 409.317, 409.321, and 409.323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

AB111, s. 95 Section 95. 411.307 (4) of the statutes is repealed.

AB111, s. 96 Section 96. 411.309 (1) (c) of the statutes is amended to read:

AB111,196,24 411.309 (1) (c) "Fixture filing" means a filing, in the office where a record of a mortgage on real estate would be filed or recorded, of a financing statement covering goods that are or are to become fixtures and conforming to the requirements of s. 409.402 (5) 409.502 (1) and (2).

AB111, s. 97 Section 97. 421.301 (21) of the statutes is amended to read:

AB111,197,3 421.301 (21) "Goods" has the meaning given in s. 409.102 (1) (ks) and includes goods (s. 409.105) not in existence at the time the transaction is entered into and goods which are or are to become fixtures.

AB111, s. 98 Section 98. 422.413 (2r) (intro.) of the statutes is amended to read:

AB111,197,7 422.413 (2r) (intro.) Notwithstanding s. 409.504 409.615 (1), the proceeds of any disposition of collateral referred to in sub. (2g) shall be applied in the following order to:

AB111, s. 99 Section 99. 422.413 (2r) (f) of the statutes is amended to read:

AB111,197,11 422.413 (2r) (f) The satisfaction of indebtedness secured by any subordinate security interest in the collateral, subject to the restrictions set forth in s. 409.504 409.615 (1) (c) and (2).

AB111, s. 100 Section 100. 425.105 (4) of the statutes is amended to read:

AB111,197,17 425.105 (4) With respect to consumer credit transactions in which the creditor has a security interest in, and possession of, instruments or documents (s. 409.105), as each is defined in s. 409.102 (1), which threaten to decline speedily in value, this section does not restrict the creditor's rights to dispose of such property pursuant to s. 409.504 subch. VI of ch. 409 and the terms of the creditor's security agreement.

AB111, s. 101 Section 101. 425.203 (3) (intro.) of the statutes is amended to read:

AB111,197,23 425.203 (3) (intro.) Following recovery of collateral pursuant to a judgment under sub. (2), the merchant may either retain the collateral in full satisfaction of the customer's obligation pursuant to s. 409.505 ss. 409.620 to 409.624, in which event the merchant shall satisfy the judgment obtained pursuant to sub. (2); or shall dispose of the collateral pursuant to s. 409.504 subch. VI of ch. 409, in which event:

AB111, s. 102 Section 102. 425.204 (2) of the statutes is amended to read:

AB111,198,4 425.204 (2) The rights and obligations of the merchant and customer with respect to collateral voluntarily surrendered as defined in this section shall be governed by ss. 409.504 to 409.507 subch. VI of ch. 409, and are not subject to this subchapter.

AB111, s. 103 Section 103. 425.207 (2) of the statutes is amended to read:

AB111,199,4 425.207 (2) A merchant who reasonably believes that a customer has abandoned collateral or goods subject to a consumer lease may take possession of such collateral or leased goods and preserve it. However, the customer may recover such collateral or leased goods upon request unless at the time of request the customer has surrendered the collateral or leased goods, or judgment for the merchant has been entered in a proceeding for recovery of collateral or leased goods under s. 425.205 or in a judgment described in s. 425.203 (2). A merchant taking possession of collateral or leased goods pursuant to this section shall promptly send notification to the customer's last-known address of such action and of the customer's right to recover such collateral or leased goods under this section. If the collateral or leased goods are recovered by the customer pursuant to this section, it shall be returned to the customer at the location where the merchant took possession of such collateral or leased goods pursuant to this section or, at the option of the merchant, at such other location designated by the customer; and any expense incurred by the merchant in taking possession of, holding and returning the collateral or leased goods to the customer shall be borne by the merchant. If after taking possession of collateral or leased goods pursuant to this subsection, the merchant perfects the right to possession through a surrender by the customer or a judgment under s. 425.203 (2) or 425.205, the customer is liable for the expenses set forth in s. 409.504 409.615 (1). In determining such expenses, leased goods shall be considered collateral under s. 409.504 409.615 (1). However, a customer is not liable for expenses of holding the collateral or leased goods from the time the merchant takes possession until the merchant perfects the right to possession in the manner provided in this subsection.

AB111, s. 104 Section 104. 425.208 (6) of the statutes is amended to read:

AB111,199,12 425.208 (6) The creditor shall not dispose of the collateral or enter into a contract for the disposition of the collateral, until the expiration of the period for redemption provided in this section, unless the collateral is perishable or threatens to decline speedily in value. Upon the expiration of such period any disposition of the collateral shall be subject to ss. 409.504, 409.505 and 409.506 subch. VI of ch. 409, except that the customer may be liable for a deficiency only to the extent provided in ss. 425.209 and 425.210.

AB111, s. 105 Section 105. 779.48 (2) of the statutes is amended to read:

AB111,199,24 779.48 (2) Every person given a lien by ss. 779.41 and 779.43 (3) may in case the claim remains unpaid for 2 months after the debt is incurred, and a person given a lien under s. 779.47 (2) may if the claim remains unpaid 90 days after the lien is perfected, enforce such lien by sale of the property substantially in conformity with ss. 409.501 to 409.507 subch. VI of ch. 409 and the lien claimant shall have the rights and duties of a secured party thereunder. When such sections are applied to the enforcement of such lien the word debtor or equivalent when used therein shall be deemed to refer to the owner of the property and any other person having an interest shown by instrument filed as required by law or shown in the records of the department of transportation, and the word indebtedness or equivalent shall include all claims upon which such lien is based.

AB111, s. 106 Section 106. 779.89 of the statutes is amended to read:

AB111,200,6 779.89 Attachment and preservation. All prepaid maintenance liens attach at the time of the first prepayment and shall be preserved from the time the lien attaches. It is not necessary to file or record any notice of the lien in order to preserve or perfect the lien although a customer may file this lien in the manner prescribed for perfecting liens under subch. III of ch. 409 regarding debtors who are located in this state.

AB111, s. 107 Section 107. 779.91 (2) of the statutes is amended to read: