SB416,8,128 (a) The financing statement is effective to perfect a security interest in
9collateral acquired by the new debtor before, and within 4 months after, the new
10debtor becomes bound under s. 409.203 (4), if the financing statement would have
11been effective to perfect a security interest in the collateral had the collateral been
12acquired by the original debtor.
SB416,8,2013 (b) A security interest perfected by the financing statement and which becomes
14perfected under the law of the other jurisdiction before the earlier of the time the
15financing statement would have become ineffective under the law of the jurisdiction
16designated in s. 409.301 (1) or 409.305 (3) or the expiration of the 4-month period
17remains perfected thereafter. A security interest that is perfected by the financing
18statement but which does not become perfected under the law of the other
19jurisdiction before the earlier time or event becomes unperfected and is deemed
20never to have been perfected as against a purchaser of the collateral for value.
SB416, s. 12 21Section 12. 409.317 (2) and (4) of the statutes are amended to read:
SB416,9,222 409.317 (2) Buyers that receive delivery. Except as otherwise provided in
23sub. (5), a buyer, other than a secured party, of tangible chattel paper, tangible
24documents, goods, instruments, or a certificated security certificate takes free of a
25security interest or agricultural lien if the buyer gives value and receives delivery of

1the collateral without knowledge of the security interest or agricultural lien and
2before it is perfected.
SB416,9,8 3(4) Licensees and buyers of certain collateral. A licensee of a general
4intangible or a buyer, other than a secured party, of accounts, electronic chattel
5paper, electronic documents, general intangibles, or investment property
collateral
6other than tangible chattel paper, tangible documents, goods, instruments, or a
7certificated security takes free of a security interest if the licensee or buyer gives
8value without knowledge of the security interest and before it is perfected.
SB416, s. 13 9Section 13. 409.326 of the statutes is amended to read:
SB416,9,18 10409.326 Priority of security interests created by new debtor. (1)
11Subordination of security interest created by new debtor. Subject to sub. (2), a
12security interest that is created by a new debtor which is in collateral in which the
13new debtor has or acquires rights and is
perfected solely by a filed financing
14statement that is effective solely under s. 409.508 in collateral in which a new debtor
15has or acquires rights
would be ineffective to perfect the security interest but for the
16application of s. 409.316 (9) (a) or 409.508
is subordinate to a security interest in the
17same collateral which is perfected other than by such a filed financing statement that
18is effective solely under s. 409.508
.
SB416,9,25 19(2) Priority under other provisions; multiple original debtors. The other
20provisions of this subchapter determine the priority among conflicting security
21interests in the same collateral perfected by filed financing statements that are
22effective solely under s. 409.508
described in sub. (1). However, if the security
23agreements to which a new debtor became bound as debtor were not entered into by
24the same original debtor, the conflicting security interests rank according to priority
25in time of the new debtor's having become bound.
SB416, s. 14
1Section 14. 409.406 (5) of the statutes is amended to read:
SB416,10,52 409.406 (5) Inapplicability of sub. (4) to certain sales. Subsection (4) does not
3apply to the sale of a payment intangible or promissory note, other than a sale
4pursuant to a disposition under s. 409.610 or an acceptance of collateral under s.
5409.620
.
SB416, s. 15 6Section 15. 409.408 (2) of the statutes is amended to read:
SB416,10,117 409.408 (2) Applicability of sub. (1) to sales of certain rights to payment.
8Subsection (1) applies to a security interest in a payment intangible or promissory
9note only if the security interest arises out of a sale of the payment intangible or
10promissory note, other than a sale pursuant to a disposition under s. 409.610 or an
11acceptance of collateral under s. 409.620
.
SB416, s. 16 12Section 16. 409.502 (3) (c) of the statutes is renumbered 409.502 (3) (c) (intro.)
13and amended to read:
SB416,10,1514 409.502 (3) (c) (intro.) The record satisfies the requirements for a financing
15statement in this section other than an indication, but:
SB416,10,17 161. The record need not indicate that it is to be filed in the real property records;
17and
SB416, s. 17 18Section 17. 409.502 (3) (c) 2. of the statutes is created to read:
SB416,10,2219 409.502 (3) (c) 2. The record sufficiently provides the name of a debtor who is
20an individual if it provides the individual name of the debtor or the surname and first
21personal name of the debtor, even if the debtor is an individual to whom s. 409.503
22(1) (dm) applies; and
SB416, s. 18 23Section 18. 409.503 (1) (a) of the statutes is amended to read:
SB416,11,524 409.503 (1) (a) If Except as otherwise provided in par. (c), if the debtor is a
25registered organization or the collateral is held in a trust that is a registered

1organization
, only if the financing statement provides the name of the debtor
2indicated
that is stated to be the registered organization's name on the public organic
3record of the debtor's most recently filed with or issued or enacted by the registered
4organization's
jurisdiction of organization which shows the debtor to have been
5organized
purports to state, amend, or restate the registered organization's name;
SB416, s. 19 6Section 19. 409.503 (1) (b) of the statutes is amended to read:
SB416,11,117 409.503 (1) (b) If the debtor is a decedent's estate Subject to sub. (6), if the
8collateral is being administered by the personal representative of a decedent
, only
9if the financing statement provides, as the name of the debtor, the name of the
10decedent and, in a separate part of the financing statement, indicates that the debtor
11is an estate
collateral is being administered by a personal representative;
SB416, s. 20 12Section 20. 409.503 (1) (c) (intro.) of the statutes is amended to read:
SB416,11,1513 409.503 (1) (c) (intro.) If the debtor is a trust or a trustee acting with respect
14to property held in trust, only if the financing statement
collateral is held in a trust
15that is not a registered organization, only if the financing statement
:
SB416, s. 21 16Section 21. 409.503 (1) (c) 1. and 2. of the statutes are repealed.
SB416, s. 22 17Section 22. 409.503 (1) (c) 1m. and 2m. of the statutes are created to read:
SB416,11,1818 409.503 (1) (c) 1m. Provides, as the name of the debtor:
SB416,11,2019 a. If the organic record of the trust specifies a name for the trust, the name
20specified; or
SB416,11,2221 b. If the organic record of the trust does not specify a name for the trust, the
22name of the settlor or testator; and
SB416,11,2323 2m. In a separate part of the financing statement:
SB416,11,2524 a. If the name is provided in accordance with subd. 1m. a., indicates that the
25collateral is held in a trust; or
SB416,12,4
1b. If the name is provided in accordance with subd. 1m. b., provides additional
2information sufficient to distinguish the trust from other trusts having one or more
3of the same settlors or the same testator and indicates that the collateral is held in
4a trust, unless the additional information so indicates;
SB416, s. 23 5Section 23. 409.503 (1) (d) of the statutes is renumbered 409.503 (1) (f), and
6409.503 (1) (f) 1. and 2., as renumbered, are amended to read:
SB416,12,87 409.503 (1) (f) 1. If the debtor has a name, only if it the financing statement
8provides the individual or organizational name of the debtor; and
SB416,12,129 2. If the debtor does not have a name, only if it the financing statement provides
10the names of the partners, members, associates, or other persons comprising the
11debtor, in a manner that each name provided would be sufficient if the person named
12were the debtor
.
SB416, s. 24 13Section 24. 409.503 (1) (dm) and (e) of the statutes are created to read:
SB416,12,1714 409.503 (1) (dm) Subject to sub. (7), if the debtor is an individual to whom this
15state has issued an operator's license under ch. 343 or identification card under s.
16343.50 that has not expired, only if the financing statement provides the name of the
17individual which is indicated on the operator's license or identification card;
SB416,12,2018 (e) If the debtor is an individual to whom par. (dm) does not apply, only if the
19financing statement provides the individual name of the debtor or the surname and
20first personal name of the debtor; and
SB416, s. 25 21Section 25. 409.503 (2) (b) of the statutes is amended to read:
SB416,12,2322 409.503 (2) (b) Unless required under sub. (1) (d) (f) 2., names of partners,
23members, associates, or other persons comprising the debtor.
SB416, s. 26 24Section 26. 409.503 (6), (7) and (8) of the statutes are created to read:
SB416,13,4
1409.503 (6) Name of decedent. The name of the decedent indicated on the
2order appointing the personal representative of the decedent issued by the court
3having jurisdiction over the collateral is sufficient as the "name of the decedent"
4under sub. (1) (b).
SB416,13,8 5(7) Multiple licenses or identification cards. If this state has issued to an
6individual more than one operator's license under ch. 343 or identification card
7under s. 343.50 of a kind described in sub. (1) (dm), the one that was issued most
8recently is the one to which sub. (1) (dm) refers.
SB416,13,9 9(8) Definition. In this section, the "name of the settlor or testator" means:
SB416,13,1310 (a) If the settlor is a registered organization, the name that is stated to be the
11settlor's name on the public organic record most recently filed with or issued or
12enacted by the settlor's jurisdiction of organization which purports to state, amend,
13or restate the settlor's name;
SB416,13,1514 (b) In other cases, the name of the settlor or testator indicated in the trust's
15organic record.
SB416, s. 27 16Section 27. 409.507 (3) of the statutes is amended to read:
SB416,13,2017 409.507 (3) Change in debtor's name. If a debtor so changes its the name that
18a filed financing statement provides for a debtor becomes insufficient as the name
19of the debtor under s. 409.503 (1) so that the financing statement becomes
seriously
20misleading under s. 409.506:
SB416,13,2321 (a) The financing statement is effective to perfect a security interest in
22collateral acquired by the debtor before, or within 4 months after, the change filed
23financing statement becomes seriously misleading
; and
SB416,14,324 (b) The financing statement is not effective to perfect a security interest in
25collateral acquired by the debtor more than 4 months after the change filed financing

1statement becomes seriously misleading
, unless an amendment to the financing
2statement which renders the financing statement not seriously misleading is filed
3within 4 months after the change financing statement became seriously misleading.
SB416, s. 28 4Section 28. 409.515 (6) of the statutes is amended to read:
SB416,14,75 409.515 (6) Transmitting utility financing statement. If a debtor is a
6transmitting utility and a filed initial financing statement so indicates, the financing
7statement is effective until a termination statement is filed.
SB416, s. 29 8Section 29. 409.516 (2) (c) 2. (intro.) of the statutes is amended to read:
SB416,14,109 409.516 (2) (c) 2. (intro.) In the case of an amendment or correction information
10statement, the record:
SB416, s. 30 11Section 30. 409.516 (2) (c) 3. of the statutes is amended to read:
SB416,14,1612 409.516 (2) (c) 3. In the case of an initial financing statement that provides the
13name of a debtor identified as an individual or an amendment that provides a name
14of a debtor identified as an individual which was not previously provided in the
15financing statement to which the record relates, the record does not identify the
16debtor's last name surname; or
SB416, s. 31 17Section 31. 409.516 (2) (e) 1. of the statutes is amended to read:
SB416,14,1818 409.516 (2) (e) 1. Provide a mailing address for the debtor; or
SB416, s. 32 19Section 32. 409.516 (2) (e) 2. of the statutes is amended to read:
SB416,14,2120 409.516 (2) (e) 2. Indicate whether the name provided as the name of the debtor
21is the name of an individual or an organization; or
SB416, s. 33 22Section 33. 409.516 (2) (e) 3. of the statutes is repealed.
SB416, s. 34 23Section 34. 409.518 (1) of the statutes is amended to read:
SB416,15,224 409.518 (1) Correction statement Statement with respect to record indexed
25under person's name
. A person may file in the filing office a correction an information

1statement with respect to a record indexed there under the person's name if the
2person believes that the record is inaccurate or was wrongfully filed.
SB416, s. 35 3Section 35. 409.518 (2) (intro.), (a) 2. and (b) of the statutes are amended to
4read:
SB416,15,65 409.518 (2) Sufficiency of correction Contents of statement under sub. (1).
6(intro.) A correction An information statement under sub. (1) must:
SB416,15,107 (a) 2. If the correction information statement relates to a record filed or
8recorded in a filing office described in s. 409.501 (1) (a), the date on which the initial
9financing statement was filed or recorded and the information specified in s. 409.502
10(2);
SB416,15,1111 (b) Indicate that it is a correction an information statement; and
SB416, s. 36 12Section 36. 409.518 (3) of the statutes is renumbered 409.518 (5) and amended
13to read:
SB416,15,1614 409.518 (5) Record not affected by correction information statement. The
15filing of a correction an information statement does not affect the effectiveness of an
16initial financing statement or other filed record.
SB416, s. 37 17Section 37. 409.518 (3m) and (4) of the statutes are created to read:
SB416,15,2218 409.518 (3m) Statement by secured party of record. A person may file in the
19filing office an information statement with respect to a record filed there if the person
20is a secured party of record with respect to the financing statement to which the
21record relates and believes that the person that filed the record was not entitled to
22do so under s. 409.509 (4).
SB416,15,24 23(4) Contents of statement under sub. (3m). An information statement under
24sub. (3m) must:
SB416,15,2525 (a) Identify the record to which it relates by:
SB416,16,2
11. The file number assigned to the initial financing statement to which the
2record relates; and
SB416,16,53 2. If the information statement relates to a record filed or recorded in a filing
4office described in s. 409.501 (1) (a), the date that the initial financing statement was
5filed or recorded and the information specified in s. 409.502 (2);
SB416,16,66 (b) Indicate that it is an information statement; and
SB416,16,87 (c) Provide the basis for the person's belief that the person that filed the record
8was not entitled to do so under s. 409.509 (4).
SB416, s. 38 9Section 38. 409.521 (2) (form) of the statutes is repealed and recreated to read:


SB416, s. 39
1Section 39. 409.521 (3) (form) of the statutes is repealed and recreated to read:


SB416, s. 40
1Section 40. 409.607 (2) (b) 1. of the statutes is amended to read:
SB416,22,32 409.607 (2) (b) 1. A default has occurred with respect to the obligation secured
3by the mortgage
; and
SB416, s. 41 4Section 41. 409.625 (3) (title) of the statutes is amended to read:
SB416,22,65 409.625 (3) (title) Persons entitled to recover damages; statutory damages
6in consumer-goods transaction if collateral is consumer goods.
SB416, s. 42 7Section 42. Subchapter VIII of chapter 409 [precedes 409.802] of the statutes
8is created to read:
SB416,22,99 CHAPTER 409
SB416,22,1010 SUBCHAPTER VIII
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