SB9: Bill Text

SB9, s. 12 Section 12. 59.43 (1) (m) of the statutes is amended to read:

SB9,10,8 59.43 (1) (m) Keep Except as otherwise provided in subchs. V and VII of ch. 409, keep these chattel documents in consecutive numerical arrangement, for the inspection of all persons, endorsing on each document the document number and the date and time of reception.

SB9, s. 13 Section 13. 59.43 (1) (n) of the statutes is amended to read:

SB9,10,22 59.43 (1) (n) Upon the filing of a financing statement or other document evidencing the creation of a security interest in personal property or fixtures or in crops growing or to be grown, as defined in s. 401.201 (37) (a), required to be filed or recorded with the register under s. 409.501 (1) (a), enter the name of each debtor alphabetically in indices, of which each page shall be divided into columns which shall contain the following information: number of the document, date and time of filing, name and address of debtor, name and address of secured party, name of the document, the amount if any, shown in the document, brief description of property, and the last column set aside for the entry of assignments, continuation statements, termination statements, foreclosure affidavits, extensions and releases pertaining to such financing statements or chattel security documents. If the financing statement evidences the creation of a security interest in fixtures, it also shall be entered in the tract index if one is kept in the county.

SB9, s. 14 Section 14. 59.43 (1) (o) of the statutes is amended to read:

SB9,11,5 59.43 (1) (o) Upon Except as otherwise provided in subch. V of ch. 409, upon the filing of an assignment, continuation statement, termination statement, foreclosure affidavit, extension or release pertaining to a filed financing statement or other chattel security document, enter the document number and the date and time of filing in the appropriate column of the indices referred to in par. (n) and on the same line as that on which the entry of the filed financing statement or other chattel security document appears.

SB9, s. 15 Section 15. 59.43 (2) (ag) 2. of the statutes is amended to read:

SB9,11,9 59.43 (2) (ag) 2. In the event of conflict in the statutes regarding recording fees, subd. 1. shall control, except that subch. V of ch. 409 and s. 409.710 shall control this section.

SB9, s. 16 Section 16. 59.43 (2) (d) of the statutes is amended to read:

SB9,11,22 59.43 (2) (d) For performing functions under s. 409.407 (1) and (2) (a) and (b) 409.523, the register shall charge the fees stated provided in s. 409.407 (2) (a) or (b) 409.525, retain the portion of the fees prescribed under s. 409.525, and submit the portion of the fees not retained to the state. A financing statement and an assignment or notice of assignment of the security interest, offered for filing at the same time, shall be considered as only one document for the purpose of this paragraph. Whenever there is offered for filing any document that is not on a standard form prescribed by ch. 409 or by the department of financial institutions or that varies more than 0.125 inch from the approved size as prescribed by sub. (1), the appropriate fee specified in ss. 409.403 to 409.406 provided in s. 409.525 or an additional filing fee of one-half the regular fee, whichever is applicable, shall be charged by the register.

SB9, s. 17 Section 17. 100.201 (2) (d) of the statutes is amended to read:

SB9,12,8 100.201 (2) (d) Make or underwrite loans to a retailer or become bound in any manner for the financial obligation of any retailer except that a wholesaler may lend money to a retailer for the purchase of equipment for the storage, transportation, and display of selected dairy products, provided the loan is for not more than 90% of the purchase price, bears at least a 5% annual interest rate, is payable in equal monthly instalments installments over a period of not more than 48 months, and is secured by a security interest created by a security agreement specifying all payments by the retailer and duly filed by the wholesaler within 10 days after the making or underwriting of said loan, as provided in ss. 409.401 and 409.402 subch. V of ch. 409 regarding debtors who are located in this state.

SB9, s. 18 Section 18. 100.201 (2) (e) 1. of the statutes is amended to read:

SB9,12,24 100.201 (2) (e) 1. The wholesaler, under a bill of sale or security agreement describing the property sold and specifying the price and terms of sale duly filed by the wholesaler under ss. 409.401 and 409.402 subch. V of ch. 409 within 10 days after delivery of the equipment described therein, may sell equipment for the storage, transportation, and display of selected dairy products to the retailer but the selling price shall be not less than the cost to the wholesaler, less 10% per year depreciation, plus transportation and installation costs, plus at least 6%, but in no event shall it be less than $100 per unit. In filing bills of sale under this section, the filing officer shall follow the procedure under s. 409.403 subch. V of ch. 409 regarding debtors who are located in this state insofar as applicable. If the wholesaler makes the sale under a security agreement, the terms of sale shall be no more favorable to the retailer than those under sub. (2) (d). Failure by any wholesaler to enforce the wholesaler's security interest under this paragraph or sub. (2) (d) if a retailer is in default for more than 90 days shall constitute prima facie evidence of a violation of this section. No wholesaler shall renegotiate a security agreement which is in default.

SB9, s. 19 Section 19. 101.9213 (2) of the statutes is amended to read:

SB9,13,10 101.9213 (2) Except as provided in sub. (3), a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. The security interest is perfected as of the later of the time of its creation if such delivery is completed within 10 days after the time that the security interest is created, and without regard to the limitations expressed in s. 409.301 (2). If the delivery is not completed within 10 days after the time that the security interest is created, the security interest is perfected as of the time of such delivery or the time of the attachment of the security interest.

SB9, s. 20 Section 20. 101.9213 (4) of the statutes is amended to read:

SB9,13,13 101.9213 (4) An unperfected security interest is subordinate to the rights of persons described in s. 409.301 409.317.

SB9, s. 21 Section 21. 101.9213 (5) of the statutes is amended to read:

SB9,13,21 101.9213 (5) The rules of priority stated in s. 409.312, and 409.322, the other sections therein referred to, and subch. III of ch. 409 shall, to the extent appropriate, apply to conflicting security interests in a manufactured home of a type for which a certificate of title is required, or in a previously certificated manufactured home, as defined in s. 101.9222 (1). A security interest perfected under this section or under s. 101.9222 (4) or (5) is a security interest perfected otherwise than by filing for purposes of s. 409.312 409.322.

SB9, s. 22 Section 22. 101.9213 (6) of the statutes is amended to read:

SB9,14,3 101.9213 (6) The rules stated in ss. 409.501 to 409.507 subch. VI of ch. 409 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a manufactured home by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in manufactured homes perfected under ss. 101.9202 to 101.9218.

SB9, s. 23 Section 23. 101.9213 (7) of the statutes is amended to read:

SB9,14,7 101.9213 (7) If a manufactured home is subject to a security interest when brought into this state, s. 409.103 (1), (2) and (3) 409.316 states the rules that apply to determine the validity and perfection of the security interest in this state.

SB9, s. 24 Section 24. 101.9215 (1) of the statutes is amended to read:

SB9,14,15 101.9215 (1) A Except as otherwise provided in s. 409.308 (5), a secured party may assign, absolutely or otherwise, the party's security interest in the manufactured home to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as a secured party until the assignee is named as secured party on the certificate.

SB9, s. 25 Section 25. 101.9215 (2) of the statutes is amended to read:

SB9,14,21 101.9215 (2) The Subject to s. 409.308 (5), the assignee may but need not, to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as secured party, upon delivering to the department the certificate and an assignment by the secured party named in the certificate in the form that the department prescribes.

SB9, s. 26 Section 26. 101.9218 (1) of the statutes is amended to read:

SB9,15,3 101.9218 (1) Method of perfecting exclusive. Except Subject to s. 409.311 (4) and except as provided in sub. (2), the method provided in ss. 101.921 to 101.9217 of perfecting and giving notice of security interests subject to ss. 101.921 to 101.9217 is exclusive. Security interests subject to ss. 101.921 to 101.9217 are exempt from the provisions of law that otherwise require or relate to the filing of instruments creating or evidencing security interests.

SB9, s. 27 Section 27. 101.9222 (5) (b) of the statutes is amended to read:

SB9,15,8 101.9222 (5) (b) If a security interest in a previously certificated manufactured home was created, but was unperfected, under any other applicable law of this state on July 1, 2000, it may be perfected under par. (a), but such perfection dates only from the date of the department's receipt of the certificate.

SB9, s. 28 Section 28. 109.09 (2) (b) 2. of the statutes is amended to read:

SB9,15,20 109.09 (2) (b) 2. A lien under par. (a) upon personal property takes effect when the department of workforce development or employee files a notice of the lien with the department of financial institutions in the same manner, form, and place as financing statements are filed under subch. V of ch. 409 regarding debtors who are located in this state, pays the same fee specified provided in s. 409.403 (5) (b) to the department of financial institutions 409.525 for filing financing statements, and serves a copy of the notice on the employer by personal service in the same manner as a summons is served under s. 801.11 or by certified mail with a return receipt requested. The department of financial institutions shall place the notice of the lien in the same file as financing statements are filed under ss. 409.401 and 409.402 subch. V of ch. 409.

SB9, s. 29 Section 29. 138.09 (7) (i) 2. of the statutes is amended to read:

SB9,15,24 138.09 (7) (i) 2. An amount sufficient to cover the fee for filing the termination statement required by s. 409.404 409.513 on loans secured by merchandise other than a motor vehicle, a manufactured home, or a boat; and

SB9, s. 30 Section 30. 340.01 (56m) of the statutes is amended to read:

SB9,16,2 340.01 (56m) "Secured party" means a secured party as defined has the meaning given in s. 409.105 (1) (L) 409.102 (1) (rs).

SB9, s. 31 Section 31. 340.01 (56n) of the statutes is amended to read:

SB9,16,5 340.01 (56n) "Security agreement" means a security agreement as defined has the meaning given in s. 409.105 (1) (m) 409.102 (1) (s).

SB9, s. 32 Section 32. 342.19 (2) of the statutes is amended to read:

SB9,16,13 342.19 (2) Except as provided in sub. (2m), a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. It is perfected as of the later of the time of its creation if such delivery is completed within 10 days thereafter, and without regard to the limitations expressed in s. 409.301 (2); otherwise, as of the time of such delivery or the time of the attachment of the security interest.

SB9, s. 33 Section 33. 342.19 (3) of the statutes is amended to read:

SB9,16,16 342.19 (3) An unperfected security interest is subordinate to the rights of persons described in s. 409.301 ss. 409.317 and 409.323.

SB9, s. 34 Section 34. 342.19 (4) of the statutes is amended to read:

SB9,16,22 342.19 (4) The rules of priority stated in s. 409.312, and 409.322, the other sections therein referred to, and subch. III of ch. 409 shall, to the extent appropriate, apply to conflicting security interests in a vehicle of a type for which a certificate of title is required. A security interest perfected under this section is a security interest perfected otherwise than by filing for purposes of s. 409.312 subch. III of ch. 409.

SB9, s. 35 Section 35. 342.19 (5) of the statutes is amended to read:

SB9,17,3 342.19 (5) The rules stated in ss. 409.501 to 409.507 subch. VI of ch. 409 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a vehicle by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in vehicles perfected under this chapter.

SB9, s. 36 Section 36. 342.19 (6) of the statutes is amended to read:

SB9,17,7 342.19 (6) If a vehicle is subject to a security interest when brought into this state, s. 409.103 (1), (2) and (3) state 409.316 states the rules which apply to determine the validity and perfection of the security interest in this state.

SB9, s. 37 Section 37. 342.21 (1) of the statutes is amended to read:

SB9,17,15 342.21 (1) A Except as otherwise provided in s. 409.308 (5), a secured party may assign, absolutely or otherwise, the party's security interest in the vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as a secured party until the assignee is named as secured party on the certificate.

SB9, s. 38 Section 38. 342.21 (2) of the statutes is amended to read:

SB9,17,21 342.21 (2) The Subject to s. 409.308 (5), the assignee may but need not, to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as secured party, upon delivering to the department the certificate and an assignment by the secured party named in the certificate in the form the department prescribes.

SB9, s. 39 Section 39. 342.24 of the statutes is amended to read:

SB9,18,2 342.24 Method of perfecting exclusive. The Subject to s. 409.311 (4), the method provided in this chapter of perfecting and giving notice of security interests subject to this chapter is exclusive. Security interests subject to this chapter are hereby exempted from the provisions of law which otherwise require or relate to the filing of instruments creating or evidencing security interests.

SB9, s. 40 Section 40. 344.185 (3) (intro.) of the statutes is amended to read:

SB9,18,5 344.185 (3) (intro.) Notwithstanding ss. 409.501 to 409.507 subch. VI of ch. 409 and ch. 425:

SB9, s. 41 Section 41. 401.105 (2) (e) of the statutes is repealed and recreated to read:

SB9,18,9 401.105 (2) (e) Sections 409.301 to 409.307 on law governing perfection, the effect of perfection or nonperfection, and the priority of security interests and agricultural liens.

SB9, s. 42 Section 42. 401.201 (9) of the statutes is amended to read:

SB9,19,4 401.201 (9) "Buyer in ordinary course of business" means a person who that buys goods in good faith and, without knowledge that the sale to the person is in violation of violates the ownership rights or security interest of a 3rd party of another person in the goods buys, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind but does not include a pawnbroker. All persons who sell minerals or the like (including oil and gas) at wellhead or minehead shall be deemed to be persons. A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the seller's own usual or customary practices. A person that sells oil, gas, or other minerals at the wellhead or minehead is a person in the business of selling goods of that kind. "Buying" A buyer in ordinary course of business may be buy for cash or, by exchange of other property, or on secured or unsecured credit , and includes receiving may acquire goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under ch. 402 may be a buyer in ordinary course of business. A person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt is not a buyer in ordinary course of business.

SB9, s. 43 Section 43. 401.201 (32) of the statutes is amended to read:

SB9,19,8 401.201 (32) "Purchase" includes taking by sale, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift or any other voluntary transaction creating an interest in property.

SB9, s. 44 Section 44. 401.201 (37) (a) of the statutes is amended to read:

SB9,19,25 401.201 (37) (a) "Security interest" means an interest in personal property or fixtures that which secures payment or performance of an obligation. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer is limited in effect to a reservation of a "security interest". The term also includes any interest of a consignor and a buyer of accounts or, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to ch. 409. The special property interest of a buyer of goods on identification of such those goods to a contract for sale under s. 402.401 is not a "security interest", but a buyer may also acquire a "security interest" by complying with ch. 409. Unless a lease or consignment is intended as security, reservation of title thereunder is not a "security interest" but a consignment is in any event subject to s. 402.326 Except as otherwise provided in s. 402.505, the right of a seller or lessor of goods under ch. 402 or 411 to retain or acquire possession of the goods is not a security interest, but a seller or lessor may also acquire a security interest by complying with ch. 409. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under s. 402.401 is limited in effect to a reservation of a security interest.

SB9, s. 45 Section 45. 402.103 (3) (d) of the statutes is amended to read:

SB9,20,2 402.103 (3) (d) "Consumer goods" — s. 409.109 409.102.

SB9, s. 46 Section 46. 402.210 (3) of the statutes is renumbered 402.210 (4).

SB9, s. 47 Section 47. 402.210 (3) of the statutes is created to read:

SB9,20,12 402.210 (3) The creation, attachment, perfection, or enforcement of a security interest in the seller's interest under a contract is not a transfer that materially changes the duty of or increases materially the burden or risk imposed on the buyer or impairs materially the buyer's chance of obtaining return performance within the purview of sub. (2) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the seller. Even in that event, the creation, attachment, perfection, and enforcement of the security interest remain effective, but:

SB9,20,14 (a) The seller is liable to the buyer for damages caused by the delegation to the extent that the damages could not reasonably be prevented by the buyer; and

SB9,20,17 (b) A court having jurisdiction may grant other appropriate relief, including cancellation of the contract for sale or an injunction against enforcement of the security interest or consummation of the enforcement.

SB9, s. 48 Section 48. 402.210 (4) of the statutes is renumbered 402.210 (5).

SB9, s. 49 Section 49. 402.210 (5) of the statutes is renumbered 402.210 (6).

SB9, s. 50 Section 50. 402.326 (title) of the statutes is amended to read:

SB9,20,22 402.326 (title) Sale on approval and sale or return; consignment sales and rights of creditors.

SB9, s. 51 Section 51. 402.326 (2) of the statutes is amended to read:

SB9,21,3 402.326 (2) Except as provided in sub. (3), goods Goods held on approval are not subject to the claims of the buyer's creditors until acceptance; goods held on sale or return are subject to such claims while in the buyer's possession.

SB9, s. 52 Section 52. 402.326 (3) of the statutes is repealed.

SB9, s. 53 Section 53. 402.502 (title) of the statutes is amended to read:

SB9,21,7 402.502 (title) Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency.

SB9, s. 54 Section 54. 402.502 (1) of the statutes is renumbered 402.502 (1) (intro.) and amended to read:

SB9,21,13 402.502 (1) (intro.) Subject to sub. subs. (2) and (3) and even though the goods have not been shipped a buyer who has paid a part or all of the price of goods in which the buyer has a special property under s. 402.501 may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:

SB9,21,15 (b) In all cases, the seller becomes insolvent within 10 days after receipt of the first instalment installment on their price.

SB9, s. 55 Section 55. 402.502 (1) (a) of the statutes is created to read:

SB9,21,18 402.502 (1) (a) In the case of goods bought for personal, family, or household purposes, the seller repudiates or fails to deliver as required by the contract; or

SB9, s. 56 Section 56. 402.502 (2) of the statutes is renumbered 402.502 (3).

SB9, s. 57 Section 57. 402.502 (2) of the statutes is created to read: