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:
AB111,200,2217 779.97 (4) (b) 1. If a refiling of a notice of lien is presented to the department
18of financial institutions for filing, the filing officer shall cause the refiled notice of
19federal lien to be marked, held and indexed dealt with in accordance with s. 409.403
20409.519 as if the refiling were a continuation statement within the meaning of chs.
21401 to 411, except that the time period in par. (d) shall apply instead of the time period
22in s. 409.403 (2) and (3) 409.515.
AB111, s. 110 23Section 110. 779.97 (4) (b) 2. of the statutes is amended to read:
AB111,201,924 779.97 (4) (b) 2. If a certificate of release is presented to the department of
25financial institutions for filing, the filing officer shall cause the certificate to be

1marked, held and indexed dealt with in accordance with s. 409.404 409.513 as if the
2certificate were a termination statement within the meaning of chs. 401 to 411, and
3the filing officer may remove the notice of federal lien and any related refiling of a
4notice of lien, certificate of nonattachment, discharge or subordination from the files
5at any time after receipt of the certificate of release, but the department of financial
6institutions shall keep the certificate of release or a microfilm or other photographic
7record or optical disk or electronic record of the certificate of release in a file, separate
8from those containing currently effective notices of liens, for a period of 30 years after
9the date of filing of the certificate of release.
AB111, s. 111 10Section 111. 779.97 (4) (b) 3. of the statutes is amended to read:
AB111,201,1411 779.97 (4) (b) 3. If a certificate of discharge is presented to the department of
12financial institutions for filing, the filing officer shall cause the certificate to be
13marked, held and indexed dealt with as if the certificate were a release of collateral
14an amendment that deletes collateral within the meaning of chs. 401 to 411.
AB111, s. 112 15Section 112. 779.97 (4) (b) 4. of the statutes is amended to read:
AB111,201,2016 779.97 (4) (b) 4. If a certificate of nonattachment or subordination of any lien
17is presented to the department of financial institutions for filing, the filing officer
18shall cause the certificate to be marked, held and indexed dealt with as if the
19certificate were an amendment that deletes collateral within the meaning of chs. 401
20to 411.
AB111, s. 113 21Section 113. 779.97 (4) (d) of the statutes is amended to read:
AB111,202,422 779.97 (4) (d) Unless a refiling of a notice of lien is presented to a filing officer
23for filing within 11 years and 60 days after the date on which a notice of lien or the
24latest refiling of a notice of that lien is filed with that officer, the filing officer may
25remove the notice of federal lien and any related refiling of a notice of lien, certificate

1of nonattachment, discharge or subordination from the files. Any refiling of a notice
2of lien presented to a filing officer after such removal shall be marked, held and
3indexed
dealt with as though the document were a notice of federal lien instead of
4a refiling of a notice of lien.
AB111, s. 114 5Section 114. 779.97 (4) (e) of the statutes is amended to read:
AB111,202,186 779.97 (4) (e) Upon request of any person, the filing officer shall issue a
7certificate showing whether there is on file, on the date and hour stated therein, any
8notice of federal lien or any related refiling of a notice of lien, certificate of
9nonattachment, discharge or subordination filed on or after February 1, 1968,
10naming a particular person, and if a notice or certificate is on file, giving the date and
11hour of filing of each notice or certificate. The fee for a certificate is $2. Upon request
12the filing officer shall furnish a copy of any notice of federal lien or notice or certificate
13affecting a federal lien for a fee of 50 cents per page
If the filing officer is the
14department of financial institutions, the filing officer shall include the information
15concerning the notice of federal lien, or notice or certificate affecting a federal lien,
16in the information communicated or otherwise made available in response to a
17request under s. 409.523 (3), and the fee charged shall be that charged in accordance
18with s. 409.525
.
AB111, s. 115 19Section 115. 815.18 (2) (i) of the statutes is amended to read:
AB111,202,2120 815.18 (2) (i) "Farm products" has the meaning given under s. 409.109 (3)
21409.102 (1) (im).
AB111, s. 116 22Section 116. 815.18 (2) (j) of the statutes is amended to read:
AB111,202,2423 815.18 (2) (j) "Inventory" has the meaning given under s. 409.109 (4) 409.102
24(1) (Ls)
.
AB111, s. 117 25Section 117. 818.02 (4) of the statutes is amended to read:
AB111,203,3
1818.02 (4) Subsections (1) and (3) do not apply to any security agreement under
2which the plaintiff claims a purchase money security interest, as defined in ch. 409
3s. 409.103
.
AB111, s. 118 4Section 118. 893.36 (3) (b) of the statutes is amended to read:
AB111,203,65 893.36 (3) (b) "Collateral" has the meaning provided by s. 409.105 (1) (c)
6409.102 (1) (cs).
AB111, s. 119 7Section 119. 893.36 (3) (c) of the statutes is amended to read:
AB111,203,98 893.36 (3) (c) "Debtor" has the meaning provided by s. 409.105 (1) (d) 409.102
9(1) (gs)
.
AB111, s. 120 10Section 120. 893.36 (3) (e) of the statutes is amended to read:
AB111,203,1211 893.36 (3) (e) "Secured party" has the meaning provided by s. 409.105 (1) (L)
12409.102 (1) (rs).
AB111, s. 121 13Section 121. 893.36 (3) (f) of the statutes is amended to read:
AB111,203,1514 893.36 (3) (f) "Security agreement" has the meaning provided by s. 409.105 (1)
15(m) 409.102 (1) (s).
AB111, s. 122 16Section 122. Effective date.
AB111,203,1817 (1) This act takes effect on July 1, 2001, or on the day after publication,
18whichever is later.
AB111,203,1919 (End)
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