408.101
408.101
Short title. This chapter shall be known and may be cited as uniform commercial code—investment securities.
408.102
408.102
Definitions and index of definitions; applicability. 408.102(1)(1) In this chapter unless the context otherwise requires:
408.102(1)(a)
(a) A certificated security is in "bearer form" if it runs to bearer according to its terms and not by reason of any endorsement.
408.102(1)(b)
(b) A "certificated security" is a share, participation or other interest in property of or an enterprise of the issuer or an obligation of the issuer which is:
408.102(1)(b)1.
1. Represented by an instrument issued in bearer or registered form;
408.102(1)(b)2.
2. Of a type commonly dealt in on securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment; and
408.102(1)(b)3.
3. Either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.
408.102(1)(c)
(c) A "clearing corporation" is a corporation registered as a clearing agent under the federal securities laws or a corporation:
408.102(1)(c)1.
1. At least 90% of whose capital stock is held by or for one or more organizations, none of which, other than a national securities exchange or association, holds in excess of 20% of the capital stock of the corporation, and each of which is:
408.102(1)(c)1.a.
a. Subject to supervision or regulation under federal or state banking laws or state insurance laws;
408.102(1)(c)1.b.
b. A broker, dealer or investment company registered under the federal securities laws; or
408.102(1)(c)1.c.
c. A national securities exchange or association registered under the federal securities laws.
408.102(1)(c)2.
2. Any remaining capital stock of which is held by individuals who have purchased it at or prior to the time of their taking office as directors of the corporation and who have purchased only so much of the capital stock as is necessary to permit them to qualify as directors.
408.102(1)(d)
(d) A "custodian bank" is a bank or trust company that is supervised and examined by state or federal authority having supervision over banks and is acting as custodian for a clearing corporation.
408.102(1)(e)
(e) A certificated security is in "registered form" if:
408.102(1)(e)1.
1. It specifies a person entitled to the security or to the rights it represents; and
408.102(1)(e)2.
2. Its transfer may be registered upon books maintained for that purpose by or on behalf of the issuer or the security so states.
408.102(1)(f)
(f) A "security" is either a certificated or an uncertificated security. If a security is certificated, the terms "security" and "certificated security" may mean either the intangible interest, the instrument representing that interest, or both, as the context requires. A writing that is a certificated security is governed by this chapter and not by
ch. 403 even though it also meets the requirements of that chapter. This chapter does not apply to money. If a certificated security has been retained by or surrendered to the issuer or its transfer agent for reasons other than registration of transfer, other temporary purpose, payment, exchange or acquisition by the issuer, that security shall be treated as an uncertificated security for purposes of this chapter.
408.102(1)(g)
(g) A "subsequent purchaser" is a person who takes other than by original issue.
408.102(1)(h)
(h) An "uncertificated security" is a share, participation or other interest in property or an enterprise of the issuer or an obligation of the issuer which is:
408.102(1)(h)1.
1. Not represented by an instrument and the transfer of which is registered upon books maintained for that purpose by or on behalf of the issuer;
408.102(1)(h)2.
2. Of a type commonly dealt in on securities exchanges or markets; and
408.102(1)(h)3.
3. Either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.
408.102(5)
(5) Other definitions applying to this chapter or to specified sections thereof and the sections in which they appear are:
408.102(6)
(6) In addition
ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.
408.102 Annotation
Stock of closely-held corporation not traded upon securities exchange is "security" under this section. Wamser v. Bamberger, 101 W (2d) 637, 305 NW (2d) 158 (Ct. App. 1981).
408.102 Annotation
Guarantying municipal bonds. Minge, 1974 WLR 89.
408.103
408.103
Issuer's lien. A lien upon a security in favor of an issuer thereof is valid against a purchaser only if:
408.103(1)
(1) The security is certificated and the right of the issuer to the lien is noted conspicuously thereon; or
408.103(2)
(2) The security is uncertificated and a notation of the right of the issuer to the lien is contained in the initial transaction statement sent to the purchaser or, if his or her interest is transferred to him or her other than by registration of transfer, pledge or release, the initial transaction statement sent to the registered owner or the registered pledgee.
408.103 History
History: 1985 a. 237.
408.104
408.104
Effect of overissue; "overissue". 408.104(1)
(1) The provisions of this chapter which validate a security or compel its issue or reissue do not apply to the extent that validation, issue or reissue would result in overissue, but if:
408.104(1)(a)
(a) An identical security which does not constitute an overissue is reasonably available for purchase, the person entitled to issue or validation may compel the issuer to purchase the security for him or her and either to deliver a certificated security or to register the transfer of an uncertificated security to him or her, against surrender of any certificated security he or she holds; or
408.104(1)(b)
(b) A security is not so available for purchase, the person entitled to issue or validation may recover from the issuer the price he or she or the last purchaser for value paid for it with interest from the date of his or her demand.
408.104(2)
(2) "Overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue.
408.104 History
History: 1985 a. 237.
408.105
408.105
Certificated securities negotiable; statements and instructions not negotiable; presumptions. 408.105(1)(1) Certificated securities governed by this chapter are negotiable instruments.
408.105(2)
(2) Statements (
s. 408.108), notices, or the like, sent by the issuer of uncertificated securities and instructions (
s. 408.308) are neither negotiable instruments nor certificated securities.
408.105(3)(a)
(a) Unless specifically denied in the manner provided in
s. 891.25, each signature on a certificated security, in a necessary endorsement on an initial transaction statement, or on an instruction, is admitted.
408.105(3)(b)
(b) If the effectiveness of a signature is put in issue the burden of establishing it is on the party claiming under the signature but the signature is presumed to be genuine or authorized.
408.105(3)(c)
(c) If signatures on a certificated security are admitted or established production of the security entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security.
408.105(3)(d)
(d) If signatures on an initial transaction statement are admitted or established, the facts stated in the statement are presumed to be true as of the time of its issuance; and
408.105(3)(e)
(e) After it is shown that a defense or defect exists, the plaintiff has the burden of establishing that he or she or some person under whom he or she claims is a person against whom the defense or defect is ineffective (
s. 408.202).
408.105 History
History: 1985 a. 237.
408.106
408.106
Applicability. The law (including conflict of laws rules) of the jurisdiction of organization of the issuer governs the validity of a security, the effectiveness of registration by the issuer and the rights and duties of the issuer with respect to all of the following:
408.106(1)
(1) Registration of transfer of a certificated security.
408.106(2)
(2) Registration of transfer, pledge or release of an uncertificated security.
408.106(3)
(3) Sending of statements of uncertificated securities.
408.106 History
History: 1985 a. 237.
408.107
408.107
Securities transferable; action for price. 408.107(1)(1) Unless otherwise agreed and subject to any applicable law or regulation respecting short sales, a person obligated to transfer securities may transfer any certificated security of the specified issue in bearer form or registered in the name of the transferee, or endorsed to him or her or in blank or he or she may transfer an equivalent uncertificated security to the transferee or a person designated by the transferee.
408.107(2)
(2) If the buyer fails to pay the price as it comes due under a contract of sale the seller may recover the price of:
408.107(2)(b)
(b) Uncertificated securities that have been transferred to the buyer or a person designated by the buyer.
408.107(2)(c)
(c) Other securities if efforts at their resale would be unduly burdensome or if there is no readily available market for their resale.
408.107 History
History: 1985 a. 237.
408.108
408.108
Registration of pledge and release of uncertificated securities. A security interest in an uncertificated security may be evidenced by the registration of pledge to the secured party or a person designated by him or her. There can be no more than one registered pledge of an uncertificated security at any time. The registered owner of an uncertificated security is the person in whose name the security is registered, even if the security is subject to a registered pledge. The rights of a registered pledgee of an uncertificated security under this chapter are terminated by the registration of release.
408.108 History
History: 1985 a. 237.
408.109
408.109
Relationship to other statutes on fiduciary security transfers. If in any respect there is any inconsistency between
s. 112.06 and this chapter,
s. 112.06 shall control.
408.109 History
History: 1981 c. 390 s.
252;
1985 a. 237 s.
28; Stats. 1985 s. 408.109.
ISSUE—ISSUER
408.201(1)(1) With respect to obligations on or defenses to a security, "issuer" includes a person who:
408.201(1)(a)
(a) Places or authorizes the placing of his or her name on a certificated security (otherwise than as authenticating trustee, registrar, transfer agent or the like) to evidence that it represents a share, participation or other interest in his or her property or in an enterprise or to evidence his or her duty to perform an obligation represented by the certificated security;
408.201(1)(b)
(b) Creates shares, participations or other interests in his or her property or in an enterprise or undertakes obligations, which shares, participations, interests or obligations are uncertificated securities;
408.201(1)(c)
(c) Directly or indirectly creates fractional interests in his or her rights or property which fractional interests are represented by certificated securities; or
408.201(1)(d)
(d) Becomes responsible for or in place of any other person described as an issuer in this section.
408.201(2)
(2) With respect to obligations on or defenses to a security, a guarantor is an issuer to the extent of his or her guaranty, whether or not his or her obligation is noted on a certificated security or on statements of uncertificated securities sent under
s. 408.408.
408.201(3)
(3) With respect to registration of transfer, pledge or release (
ss. 408.401 to
408.406), "issuer" means a person on whose behalf transfer books are maintained.
408.201 History
History: 1985 a. 237.
408.202
408.202
Issuer's responsibility and defenses; notice of defect or defense.
