409.103(2)(c)
(c) Except with respect to the rights of a buyer described in
par. (d), a security interest, perfected in another jurisdiction otherwise than by notation on a certificate of title, in goods brought into this state and thereafter covered by a certificate of title issued by this state is subject to
sub. (1) (d).
409.103(2)(d)
(d) If goods are brought into this state while a security interest therein is perfected in any manner under the law of the jurisdiction from which the goods are removed and a certificate of title is issued by this state and the certificate does not show that the goods are subject to the security interest or that they may be subject to security interests not shown on the certificate, the security interest is subordinate to the rights of a buyer of the goods who is not in the business of selling goods of that kind to the extent that the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest.
409.103(3)
(3) Accounts, general intangibles and mobile goods. 409.103(3)(a)(a) This subsection applies to accounts, other than an account described in
sub. (5) on minerals, and general intangibles, other than uncertificated securities, and to goods which are mobile and which are of a type normally used in more than one jurisdiction, such as motor vehicles, trailers, rolling stock, airplanes, shipping containers, road building and construction machinery and commercial harvesting machinery and the like, if the goods are equipment or are inventory leased or held for lease by the debtor to others, and are not covered by a certificate of title described in
sub. (2).
409.103(3)(b)
(b) The law (including the conflict of laws rules) of the jurisdiction in which the debtor is located governs the perfection and the effect of perfection or nonperfection of the security interest.
409.103(3)(c)
(c) If, however, the debtor is located in a jurisdiction which is not a part of the United States, and which does not provide for perfection of the security interest by filing or recording in that jurisdiction, the law of the jurisdiction in the United States in which the debtor has its major executive office in the United States governs the perfection and the effect of perfection or nonperfection of the security interest through filing. In the alternative, if the debtor is located in a jurisdiction which is not a part of the United States or Canada and the collateral is accounts or general intangibles for money due or to become due, the security interest may be perfected by notification to the account debtor. As used in this paragraph, "United States" includes its territories and possessions and the Commonwealth of Puerto Rico.
409.103(3)(d)
(d) A debtor shall be deemed located at the debtor's place of business if the debtor has one, at the debtor's chief executive office if the debtor has more than one place of business, otherwise at the debtor's residence. If, however, the debtor is a foreign air carrier under the federal aviation act of 1958, as amended, it shall be deemed located at the designated office of the agent upon whom service of process may be made on behalf of the foreign air carrier.
409.103(3)(e)
(e) A security interest perfected under the law of the jurisdiction of the location of the debtor is perfected until the expiration of 4 months after a change of the debtor's location to another jurisdiction, or until perfection would have ceased by the law of the first jurisdiction, whichever period first expires. Unless perfected in the new jurisdiction before the end of that period, it becomes unperfected thereafter and is deemed to have been unperfected as against a person who became a purchaser after the change.
409.103(4)
(4) Chattel paper. The rules stated for goods in
sub. (1) apply to a possessory security interest in chattel paper. The rules stated for accounts in
sub. (3) apply to a nonpossessory security interest in chattel paper, but the security interest may not be perfected by notification to the account debtor.
409.103(5)
(5) Minerals. Perfection and the effect of perfection or nonperfection of a security interest which is created by a debtor who has an interest in minerals or the like (including oil and gas) before extraction and which attaches thereto as extracted, or which attaches to an account resulting from the sale thereof at the wellhead or minehead are governed by the law (including the conflict of laws rules) of the jurisdiction wherein the wellhead or minehead is located.
409.103(6)
(6) Uncertificated securities. The law, including the conflict of laws rules, of the jurisdiction of organization of the issuer governs the perfection and the effect of perfection or nonperfection of a security interest in uncertificated securities.
409.104
409.104
Transactions excluded from chapter. This chapter does not apply:
409.104(1)
(1) To a security interest subject to any statute of the United States to the extent that such statute governs the rights of parties to and 3rd parties affected by transactions in particular types of property; or
409.104(2)
(2) To a nonconsensual landlord's lien; or
409.104(3)
(3) To a lien given by statute or other rule of law for services or materials except as provided in
s. 409.310 on priority of such liens; or
409.104(4)
(4) To a transfer of a claim for wages, salary or other compensation of an employe; or
409.104(6)
(6) To a sale of accounts or chattel paper as part of a sale of the business out of which they arose, or an assignment of accounts or chattel paper which is for the purpose of collection only, or a transfer of a right to payment under a contract to an assignee who is also to do the performance under the contract or a transfer of a single account to an assignee in whole or partial satisfaction of a preexisting indebtedness; or
409.104(7)
(7) To a transfer of an interest or claim in or under any policy of insurance, except as provided with respect to proceeds in
s. 409.306 and priorities in proceeds in
s. 409.312; or
409.104(8)
(8) To a right represented by a judgment (other than a judgment taken on a right to payment which was collateral); or
409.104(10)
(10) Except to the extent that provision is made for fixtures in
s. 409.313, to the creation or transfer of an interest in or lien on real estate, including a lease or rents thereunder and including an interest in or lien on real estate owned by a public utility even though for some purposes such real estate is deemed to be personal property; or
409.104(11)
(11) To a transfer in whole or in part of any claim arising out of tort; or
409.104(12)
(12) To a contract between a cooperative association and a member thereof, authorized by
s. 185.41; or
409.104(13)
(13) To a transfer of an interest in any deposit account as defined in
s. 409.105 (1), except as provided with respect to proceeds under
s. 409.306 and priorities in proceeds under
s. 409.312.
409.104 History
History: 1973 c. 215.
409.104 Note
Legislative Council Note, 1973: Sub. (2) is amended to make it clear that contractual landlord's liens are not exempt from coverage by ch. 409. Wisconsin has abolished the common law landlord's lien, distress for rent. See s. 704.11, Wis. Stats. (Bill 177-S)
409.105
409.105
Definitions and index of definitions. 409.105(1)
(1) In this chapter unless the context otherwise requires:
409.105(1)(a)
(a) "Account debtor" means the person who is obligated on an account, chattel paper or general intangible.
409.105(1)(b)
(b) "Chattel paper" means a writing or writings which evidence both a monetary obligation and a security interest in or a lease of specific goods, but a charter or other contract involving the use or hire of a vessel is not chattel paper. When a transaction is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the group of writings taken together constitutes chattel paper.
409.105(1)(c)
(c) "Collateral" means the property subject to a security interest, and includes accounts and chattel paper which have been sold.
409.105(1)(d)
(d) "Debtor" means the person who owes payment or other performance of the obligation secured, whether or not that person owns or has rights in the collateral, and includes the seller of accounts or chattel paper. Where the debtor and the owner of the collateral are not the same person, the term "debtor" means the owner of the collateral in any provision of the chapter dealing with the collateral, the obligor in any provision dealing with the obligation, and may include both where the context so requires.
409.105(1)(dm)
(dm) "Department" means the department of financial institutions.
409.105(1)(e)
(e) "Deposit account" means a demand, time, savings, passbook or like account maintained with a bank, savings bank, savings and loan association, credit union or like organization, other than an account evidenced by a certificate of deposit.
409.105(1)(g)
(g) "Encumbrance" includes real estate mortgages and other liens on real estate and all other rights in real estate that are not ownership interests.
409.105(1)(h)
(h) "Goods" includes all things which are movable at the time the security interest attaches or which are fixtures (
s. 409.313), but does not include money, documents, instruments, accounts, chattel paper, general intangibles or minerals or the like (including oil and gas) before extraction. "Goods" also includes standing timber which is to be cut and removed under a conveyance or contract for sale, the unborn young of animals and growing crops.
409.105(1)(i)
(i) "Instrument" means a negotiable instrument as defined in
s. 403.104 or a certificated security as defined in
s. 408.102 or any other writing which evidences a right to the payment of money and is not itself a security agreement or lease and is of a type which is in ordinary course of business transferred by delivery with any necessary endorsement or assignment.
409.105(1)(j)
(j) "Mortgage" means a consensual interest created by a real estate mortgage, a trust deed on real estate, or the like.
409.105(1)(k)
(k) An advance is made "pursuant to commitment" if the secured party has bound himself or herself to make it, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from the secured party's obligation.
409.105(1)(L)
(L) "Secured party" means a lender, seller or other person in whose favor there is a security interest, including a person to whom accounts or chattel paper have been sold. When the holders of obligations issued under an indenture of trust, equipment trust agreement or the like are represented by a trustee or other person, the representative is the secured party.
409.105(1)(m)
(m) "Security agreement" means an agreement which creates or provides for a security interest.
409.105(1)(n)
(n) "Transmitting utility" means any person primarily engaged in the railroad business, the electric or electronics communications transmission business, the transmission of goods by pipeline, or the transmission or the production and transmission of electricity, steam, gas or water, or the provision of sewer service.
409.105(2)
(2) Other definitions applying to this chapter and the sections in which they appear are:
409.105(3)
(3) The following definitions in other chapters apply to this chapter:
409.105(4)
(4) In addition
ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.
409.106
409.106
Definitions: "account"; "general intangibles". "Account" means any right to payment for goods sold or leased or for services rendered which is not evidenced by an instrument or chattel paper, whether or not it has been earned by performance. "General intangibles" means any personal property (including things in action) other than goods, accounts, chattel paper, documents, instruments and money. All rights to payment earned or unearned under a charter or other contract involving the use or hire of a vessel and all rights incident to the charter or contract are accounts.
409.106 History
History: 1973 c. 215.
409.107
409.107
Definitions: "purchase money security interest". A security interest is a "purchase money security interest" to the extent that it is:
409.107(1)
(1) Taken or retained by the seller of the collateral to secure all or part of its price; or
409.107(2)
(2) Taken by a person who by making advances or incurring an obligation gives value to enable the debtor to acquire rights in or the use of collateral if such value is in fact so used.
409.108
409.108
When after-acquired collateral not security for antecedent debt. Where a secured party makes an advance, incurs an obligation, releases a perfected security interest, or otherwise gives new value which is to be secured in whole or in part by after-acquired property the secured party's security interest in the after-acquired collateral shall be deemed to be taken for new value and not as security for an antecedent debt if the debtor acquires the debtor's rights in such collateral either in the ordinary course of the debtor's business or under a contract of purchase made pursuant to the security agreement within a reasonable time after new value is given.
409.108 History
History: 1991 a. 316.
409.108 Annotation
Security interests in after-acquired property under the uniform commercial code. Skilton, 1974 WLR 925.
409.109
409.109
Classification of goods; "consumer goods"; "equipment"; "farm products"; "inventory". Goods are:
409.109(1)
(1) "Consumer goods" if they are used or bought for use primarily for personal, family or household purposes;
409.109(2)
(2) "Equipment" if they are used or bought for use primarily in business (including farming or a profession) or by a debtor who is a nonprofit organization or a governmental subdivision or agency or if the goods are not included in the definitions of inventory, farm products or consumer goods;
409.109(3)
(3) "Farm products" if they are crops or livestock or supplies used or produced in farming operations or if they are products of crops or livestock in their unmanufactured states (such as ginned cotton, wool-clip, maple syrup, milk and eggs), and if they are in the possession of a debtor engaged in raising, fattening, grazing or other farming operations. If goods are farm products they are neither equipment nor inventory;
409.109(4)
(4) "Inventory" if they are held by a person who holds them for sale or lease or to be furnished under contracts of service or if the person has so furnished them, or if they are raw materials, work in process or materials used or consumed in a business. Inventory of a person is not to be classified as the person's equipment.
409.109 History
History: 1991 a. 316.
409.109 Annotation
See note to 409.203, citing Milwaukee Mack Sales v. First Wis. Nat. Bank, 93 W (2d) 589, 287 NW (2d) 708 (1980).
409.109 Annotation
Goods classified as "inventory" under (4) while in possession of debtor remain "inventory" while on lease status in possession of lessee. Voluntary Assign. of Watertown Tr. & Equip. Co. 94 W (2d) 622, 289 NW (2d) 288 (1980).
409.110
409.110
Sufficiency of description. For the purposes of this chapter any description of personal property or real estate is sufficient whether or not it is specific if it reasonably identifies what is described.
409.111
409.111
Applicability of bulk transfer laws. The creation of a security interest is not a bulk transfer under
ch. 406 (see
s. 406.103).
409.112
409.112
Where collateral is not owned by debtor. Unless otherwise agreed, when a secured party knows that collateral is owned by a person who is not the debtor, the owner of the collateral is entitled to receive from the secured party any surplus under
s. 409.502 (2) or under
s. 409.504 (1), and is not liable for the debt or for any deficiency after resale, and the owner of the collateral has the same right as the debtor:
409.112(2)
(2) To receive notice of and to object to a secured party's proposal to retain the collateral in satisfaction of the indebtedness under
s. 409.505;
