SB480: Bill Text

SB480, s. 11 Section 11. 402.503 (5) (b) of the statutes is amended to read:

SB480,5,8 402.503 (5) (b) Tender through customary banking channels is sufficient and dishonor of a draft accompanying or associated with the documents constitutes nonacceptance or rejection.

SB480, s. 12 Section 12. 402.505 (1) (b) of the statutes is amended to read:

SB480,5,14 402.505 (1) (b) A nonnegotiable bill of lading to the seller or the seller's nominee reserves possession of the goods as security but except in a case of conditional delivery (s. 402.507 (2)) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control of the bill of lading.

SB480, s. 13 Section 13. 402.505 (2) of the statutes is amended to read:

SB480,5,20 402.505 (2) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within s. 402.504 but impairs neither the rights given to the buyer by shipment and identification of the goods to the contract nor the seller's powers as a holder of a negotiable document of title.

SB480, s. 14 Section 14. 402.506 (2) of the statutes is amended to read:

SB480,5,25 402.506 (2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular on its face.

SB480, s. 15 Section 15. 402.509 (2) (a) of the statutes is amended to read:

SB480,6,3 402.509 (2) (a) On the buyer's receipt of possession or control of a negotiable document of title covering the goods; or

SB480, s. 16 Section 16. 402.509 (2) (c) of the statutes is amended to read:

SB480,6,7 402.509 (2) (c) After the buyer's receipt of possession or control of a nonnegotiable document of title or other written direction to deliver in a record, as provided in s. 402.503 (4) (b).

SB480, s. 17 Section 17. 402.605 (2) of the statutes is amended to read:

SB480,6,11 402.605 (2) Payment against documents made without reservation of rights precludes recovery of the payment for defects apparent on the face of in the documents.

SB480, s. 18 Section 18. 402.705 (2) (c) of the statutes is amended to read:

SB480,6,14 402.705 (2) (c) Such acknowledgment to the buyer by a carrier by reshipment or as a warehouse keeper; or

SB480, s. 19 Section 19. 402.705 (3) (c) of the statutes is amended to read:

SB480,6,18 402.705 (3) (c) If a negotiable document of title has been issued for goods the bailee is not obliged to obey a notification to stop until surrender of possession or control of the document.

SB480, s. 20 Section 20. 404.104 (3) (fc) of the statutes is created to read:

SB480,6,20 404.104 (3) (fc) "Control" — s. 407.106.

SB480, s. 21 Section 21. 404.210 (3) (intro.) of the statutes is amended to read:

SB480,7,2 404.210 (3) (intro.) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to ch. 409, but all of the following apply:

SB480, s. 22 Section 22. Chapter 407 of the statutes is repealed and recreated to read:

SB480,7,4 CHAPTER 407

SB480,7,5 Uniform commercial code

SB480,7,6 — documents of title

SB480,7,7 Subchapter I

SB480,7,8 General

SB480,7,10 407.101 Short title. This chapter may be cited as uniform commercial code — documents of title.

SB480,7,12 407.102 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires:

SB480,7,14 (a) "Bailee" means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them.

SB480,7,15 (b) "Carrier" means a person that issues a bill of lading.

SB480,7,17 (c) "Consignee" means a person named in a bill of lading to which or to whose order the bill promises delivery.

SB480,7,19 (d) "Consignor" means a person named in a bill of lading as the person from which the goods have been received for shipment.

SB480,7,22 (e) "Delivery order" means a record that contains an order to deliver goods directed to a warehouse, carrier, or other person that in the ordinary course of business issues warehouse receipts or bills of lading.

SB480,7,24 (f) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

SB480,8,2 (g) "Goods" means all things that are treated as movable for the purposes of a contract for storage or transportation.

SB480,8,8 (h) "Issuer" means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. The term includes a person for which an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents, even if the issuer did not receive any goods, the goods were misdescribed, or in any other respect the agent or employee violated the issuer's instructions.

SB480,8,12 (i) "Person entitled under the document" means the holder, in the case of a negotiable document of title, or the person to which delivery of the goods is to be made by the terms of, or pursuant to instructions in a record under, a nonnegotiable document of title.

SB480,8,14 (j) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

SB480,8,16 (k) "Shipper" means a person that enters into a contract of transportation with a carrier.

SB480,8,18 (L) "Sign" means, with present intent to authenticate or adopt a record, any of the following:

SB480,8,19 1. To execute or adopt a tangible symbol.

SB480,8,21 2. To attach to or logically associate with the record an electronic sound, symbol, or process.

SB480,8,23 (m) "Warehouse" means a person engaged in the business of storing goods for hire.

SB480,8,25 (2) Definitions in other chapters applying to this chapter and the sections in which they appear are:

SB480,9,1 (a) "Contract for sale," s. 402.106.

SB480,9,2 (b) "Lessee in ordinary course of business," s. 411.103.

SB480,9,3 (c) "Receipt" of goods, s. 402.103.

SB480,9,5 (3) In addition, ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

SB480,9,8 407.103 Relation of chapter to treaty or statute. (1) This chapter is subject to any treaty or statute of the United States or a regulatory statute of this state to the extent the treaty, statute, or regulatory statute is applicable.

SB480,9,13 (2) This chapter does not repeal or modify any law prescribing the form or contents of a document of title or the services or facilities to be afforded by a bailee, or otherwise regulating a bailee's businesses in respects not specifically treated in this chapter. However, violation of such a law does not affect the status of a document of title that otherwise complies with the definition of a document of title.

SB480,9,18 (3) This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031, but does not modify, limit, or supersede section 101 (c) of that act, 15 USC 7001(c), or authorize electronic delivery of any of the notices described in section 103 (b) of that act, 15 USC 7003 (b).

SB480,9,20 (4) To the extent there is a conflict between subch. II of ch. 137 and this chapter, this chapter governs.

SB480,9,23 407.104 Negotiable and nonnegotiable document of title. (1) Except as provided in sub. (3), a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.

SB480,9,25 (2) A document of title other than one described in sub. (1) is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.

SB480,10,4 (3) A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.

SB480,10,8 407.105 Reissuance in alternative medium. (1) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if all of the following apply:

SB480,10,10 (a) The person entitled under the electronic document surrenders control of the document to the issuer.

SB480,10,12 (b) The tangible document when issued contains a statement that it is issued in substitution for the electronic document.

SB480,10,14 (2) Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with sub. (1), all of the following apply:

SB480,10,15 (a) The electronic document ceases to have any effect or validity.

SB480,10,19 (b) The person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.

SB480,10,22 (3) Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if all of the following apply:

SB480,10,24 (a) The person entitled under the tangible document surrenders possession of the document to the issuer.

SB480,11,2 (b) The electronic document when issued contains a statement that it is issued in substitution for the tangible document.

SB480,11,4 (4) Upon issuance of the electronic document of title in substitution for a tangible document of title in accordance with sub. (3), all of the following apply:

SB480,11,5 (a) The tangible document ceases to have any effect or validity.

SB480,11,9 (b) The person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.

SB480,11,13 407.106 Control of electronic document of title. (1) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.

SB480,11,16 (2) A system satisfies sub. (1), and a person is deemed to have control of an electronic document of title, if the document is created, stored, and assigned in such a manner that satisfies all of the following:

SB480,11,18 (a) A single authoritative copy of the document exists which is unique, identifiable, and, except as otherwise provided in pars. (d), (e), and (f), unalterable.

SB480,11,20 (b) The authoritative copy identifies the person asserting control as one of the following:

SB480,11,21 1. The person to which the document was issued.

SB480,11,23 2. If the authoritative copy indicates that the document has been transferred, the person to which the document was most recently transferred.

SB480,11,25 (c) The authoritative copy is communicated to and maintained by the person asserting control or its designated custodian.

SB480,12,2 (d) Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control.

SB480,12,4 (e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy.

SB480,12,6 (f) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

SB480,12,7 Subchapter II

SB480,12,9 Warehouse receipts: special provisions

SB480,12,11 407.201 Person that may issue a warehouse receipt; storage under bond. (1) A warehouse receipt may be issued by any warehouse.

SB480,12,16 (2) If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods is deemed to be a warehouse receipt even if issued by a person that is the owner of the goods and is not a warehouse.

SB480,12,18 407.202 Form of warehouse receipt. (1) A warehouse receipt need not be in any particular form.

SB480,12,20 (2) Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a person injured by its omission:

SB480,12,21 (a) The location of the warehouse facility where the goods are stored.

SB480,12,22 (b) The date of issue of the receipt.

SB480,12,23 (c) The unique identification code of the receipt.

SB480,12,25 (d) A statement whether the goods received will be delivered to the bearer, to a named person, or to a named person or its order.