AB481: Bill Text

AB481, s. 41 Section 41. 409.310 (2) (e) of the statutes is amended to read:

AB481,41,19 409.310 (2) (e) In certificated securities, documents, goods, or instruments which is perfected without filing, control, or possession under s. 409.312 (5), (6), or (7);

AB481, s. 42 Section 42. 409.310 (2) (h) of the statutes is amended to read:

AB481,41,23 409.310 (2) (h) In deposit accounts, electronic chattel paper, electronic documents, investment property, or letter-of-credit rights which is perfected by control under s. 409.314;

AB481, s. 43 Section 43. 409.312 (5) of the statutes is amended to read:

AB481,42,5 409.312 (5) Temporary perfection: new value. A security interest in certificated securities, negotiable documents, or instruments is perfected without filing or the taking of possession or control for a period of 20 days from the time it attaches to the extent that it arises for new value given under an authenticated security agreement.

AB481, s. 44 Section 44. 409.313 (1) of the statutes is amended to read:

AB481,42,12 409.313 (1) Perfection by possession or delivery. Except as otherwise provided in sub. (2), a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under s. 408.301.

AB481, s. 45 Section 45. 409.314 (1) of the statutes is amended to read:

AB481,42,17 409.314 (1) Perfection by control. A security interest in investment property, deposit accounts, letter-of-credit rights, or electronic chattel paper, or electronic documents may be perfected by control of the collateral under s. 407.106, 409.104, 409.105, 409.106, or 409.107.

AB481, s. 46 Section 46. 409.314 (2) of the statutes is amended to read:

AB481,42,24 409.314 (2) Specified collateral: time of perfection by control; continuation of perfection. A security interest in deposit accounts, electronic chattel paper, or letter-of-credit rights, or electronic documents is perfected by control under s. 407.106, 409.104, 409.105, or 409.107 when the secured party obtains control and remains perfected by control only while the secured party retains control.

AB481, s. 47 Section 47. 409.317 (2) of the statutes is amended to read:

AB481,43,6 409.317 (2) Buyers that receive delivery. Except as otherwise provided in sub. (5), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a security certificate takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

AB481, s. 48 Section 48. 409.317 (4) of the statutes is amended to read:

AB481,43,13 409.317 (4) Licensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

AB481, s. 49 Section 49. 409.338 (2) of the statutes is amended to read:

AB481,43,19 409.338 (2) A purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.

AB481, s. 50 Section 50. 409.601 (2) of the statutes is amended to read:

AB481,43,24 409.601 (2) Rights and duties of secured party in possession or control. A secured party in possession of collateral or control of collateral under s. 407.106, 409.104, 409.105, 409.106, or 409.107 has the rights and duties provided in s. 409.207.

AB481, s. 51 Section 51. 411.103 (1) (a) of the statutes is amended to read:

AB481,44,8 411.103 (1) (a) "Buyer in ordinary course of business" means a person who, in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a 3rd party in the goods, buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. "Buying" may be for cash or by exchange of other property or on secured or unsecured credit and includes receiving acquiring 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.

AB481, s. 52 Section 52. 411.103 (1) (o) of the statutes is amended to read:

AB481,44,18 411.103 (1) (o) "Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest of a 3rd party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. "Leasing" may be for cash or by exchange of other property or on secured or unsecured credit and includes receiving acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.

AB481, s. 53 Section 53. 411.514 (2) of the statutes is amended to read:

AB481,44,22 411.514 (2) A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent on the face of in the documents.

AB481, s. 54 Section 54. 411.526 (2) (c) of the statutes is amended to read:

AB481,44,25 411.526 (2) (c) Acknowledgment to the lessee by a carrier via reshipment or as a warehouse keeper that the carrier holds the goods for the lessee.

AB481, s. 55 Section 55. Initial applicability.

AB481,45,3 (1) This act first applies to a document of title that is issued or a bailment that arises on the effective date of this subsection.

AB481, s. 56 Section 56. Effective date.

AB481,45,6 (1) This act takes effect on the first day of the 3rd month beginning after publication.

AB481,45,7 (End)