AB111: Bill Text

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:

AB111,200,10 779.91 (2) Upon discharge of a prepaid maintenance lien, any customer who filed the lien as permitted in s. 779.89 is subject to the requirements of s. 409.404 409.513.

AB111, s. 108 Section 108. 779.97 (4) (a) 1. of the statutes is amended to read:

AB111,200,15 779.97 (4) (a) 1. With the department of financial institutions, the filing officer shall cause the notice to be marked, held and indexed dealt with in accordance with s. 409.403 (4) 409.519 as if the notice were a financing statement within the meaning of chs. 401 to 411; or

AB111, s. 109 Section 109. 779.97 (4) (b) 1. of the statutes is amended to read:

AB111,200,22 779.97 (4) (b) 1. If a refiling of a notice of lien is presented to the department of financial institutions for filing, the filing officer shall cause the refiled notice of federal lien to be marked, held and indexed dealt with in accordance with s. 409.403 409.519 as if the refiling were a continuation statement within the meaning of chs. 401 to 411, except that the time period in par. (d) shall apply instead of the time period in s. 409.403 (2) and (3) 409.515.

AB111, s. 110 Section 110. 779.97 (4) (b) 2. of the statutes is amended to read:

AB111,201,9 779.97 (4) (b) 2. If a certificate of release is presented to the department of financial institutions for filing, the filing officer shall cause the certificate to be marked, held and indexed dealt with in accordance with s. 409.404 409.513 as if the certificate were a termination statement within the meaning of chs. 401 to 411, and the filing officer may remove the notice of federal lien and any related refiling of a notice of lien, certificate of nonattachment, discharge or subordination from the files at any time after receipt of the certificate of release, but the department of financial institutions shall keep the certificate of release or a microfilm or other photographic record or optical disk or electronic record of the certificate of release in a file, separate from those containing currently effective notices of liens, for a period of 30 years after the date of filing of the certificate of release.

AB111, s. 111 Section 111. 779.97 (4) (b) 3. of the statutes is amended to read:

AB111,201,14 779.97 (4) (b) 3. If a certificate of discharge is presented to the department of financial institutions for filing, the filing officer shall cause the certificate to be marked, held and indexed dealt with as if the certificate were a release of collateral an amendment that deletes collateral within the meaning of chs. 401 to 411.

AB111, s. 112 Section 112. 779.97 (4) (b) 4. of the statutes is amended to read:

AB111,201,20 779.97 (4) (b) 4. If a certificate of nonattachment or subordination of any lien is presented to the department of financial institutions for filing, the filing officer shall cause the certificate to be marked, held and indexed dealt with as if the certificate were an amendment that deletes collateral within the meaning of chs. 401 to 411.

AB111, s. 113 Section 113. 779.97 (4) (d) of the statutes is amended to read:

AB111,202,4 779.97 (4) (d) Unless a refiling of a notice of lien is presented to a filing officer for filing within 11 years and 60 days after the date on which a notice of lien or the latest refiling of a notice of that lien is filed with that officer, the filing officer may remove the notice of federal lien and any related refiling of a notice of lien, certificate of nonattachment, discharge or subordination from the files. Any refiling of a notice of lien presented to a filing officer after such removal shall be marked, held and indexed dealt with as though the document were a notice of federal lien instead of a refiling of a notice of lien.

AB111, s. 114 Section 114. 779.97 (4) (e) of the statutes is amended to read:

AB111,202,18 779.97 (4) (e) Upon request of any person, the filing officer shall issue a certificate showing whether there is on file, on the date and hour stated therein, any notice of federal lien or any related refiling of a notice of lien, certificate of nonattachment, discharge or subordination filed on or after February 1, 1968, naming a particular person, and if a notice or certificate is on file, giving the date and hour of filing of each notice or certificate. The fee for a certificate is $2. Upon request the filing officer shall furnish a copy of any notice of federal lien or notice or certificate affecting a federal lien for a fee of 50 cents per page If the filing officer is the department of financial institutions, the filing officer shall include the information concerning the notice of federal lien, or notice or certificate affecting a federal lien, in the information communicated or otherwise made available in response to a request under s. 409.523 (3), and the fee charged shall be that charged in accordance with s. 409.525.

AB111, s. 115 Section 115. 815.18 (2) (i) of the statutes is amended to read:

AB111,202,21 815.18 (2) (i) "Farm products" has the meaning given under s. 409.109 (3) 409.102 (1) (im).

AB111, s. 116 Section 116. 815.18 (2) (j) of the statutes is amended to read:

AB111,202,24 815.18 (2) (j) "Inventory" has the meaning given under s. 409.109 (4) 409.102 (1) (Ls).

AB111, s. 117 Section 117. 818.02 (4) of the statutes is amended to read:

AB111,203,3 818.02 (4) Subsections (1) and (3) do not apply to any security agreement under which the plaintiff claims a purchase money security interest, as defined in ch. 409 s. 409.103.

AB111, s. 118 Section 118. 893.36 (3) (b) of the statutes is amended to read:

AB111,203,6 893.36 (3) (b) "Collateral" has the meaning provided by s. 409.105 (1) (c) 409.102 (1) (cs).

AB111, s. 119 Section 119. 893.36 (3) (c) of the statutes is amended to read:

AB111,203,9 893.36 (3) (c) "Debtor" has the meaning provided by s. 409.105 (1) (d) 409.102 (1) (gs).

AB111, s. 120 Section 120. 893.36 (3) (e) of the statutes is amended to read:

AB111,203,12 893.36 (3) (e) "Secured party" has the meaning provided by s. 409.105 (1) (L) 409.102 (1) (rs).

AB111, s. 121 Section 121. 893.36 (3) (f) of the statutes is amended to read:

AB111,203,15 893.36 (3) (f) "Security agreement" has the meaning provided by s. 409.105 (1) (m) 409.102 (1) (s).

AB111, s. 122 Section 122. Effective date.

AB111,203,18 (1) This act takes effect on July 1, 2001, or on the day after publication, whichever is later.

AB111,203,19 (End)