342.16(1)(d)
(d) Unless exempted by rule of the department, a dealer or wholesaler who acquires a new or used vehicle that is not a salvage vehicle and holds it for resale shall make application for a certificate of title naming the dealer or wholesaler as owner of the vehicle when all of the available spaces for a dealer's or wholesaler's reassignment on the certificate of title for such vehicle have been completed.
342.16(1g)
(1g) No transferee who, for the purpose of resale, accepts a motor vehicle on consignment or acquires ownership of a motor vehicle may accept any mileage disclosure required under
s. 342.155 or rules of the department if the mileage disclosure has been altered or is incomplete.
342.16(1r)
(1r) No motor vehicle dealer or motor vehicle salesperson may transfer a motor vehicle without disclosing in writing to the transferee whether any of the information specified in
s. 342.10 (3) is applicable to the vehicle. No motor vehicle dealer or motor vehicle salesperson may knowingly give a false statement to a transferee in making the disclosure. The department shall prescribe the manner in which the written disclosure shall be made and retained.
342.16(2)
(2) Every dealer shall maintain for 5 years a record in the form the department prescribes of every vehicle bought, sold or exchanged, or received for sale or exchange, which shall be open to inspection by a representative of the department or a peace officer during reasonable business hours.
342.16(3)
(3) Except as provided in
sub. (4), any dealer who fails to comply with this section may be required to forfeit not more than $200.
342.16(4)(a)(a) Except as provided in
par. (b), any dealer who violates
sub. (1r) may be required to forfeit not more than $1,000.
342.16(4)(b)
(b) Any dealer who violates
sub. (1r) with intent to defraud may be fined not more than $5,000.
342.16 History
History: 1973 c. 218;
1975 c. 121,
286,
351,
421;
1977 c. 29 s.
1654 (7) (a);
1977 c. 273,
418;
1981 c. 150,
151,
391;
1985 a. 29,
202,
332;
1987 a. 100,
349;
1989 a. 31;
1991 a. 239;
1993 a. 63,
159.
342.17
342.17
Involuntary transfers. 342.17(1)
(1) If the interest of an owner in a vehicle passes to another other than by voluntary transfer, the transferee shall, except as provided in
sub. (2), promptly mail or deliver to the department the last certificate of title, if available, and the documents required by the department to legally effect such transfer, and an application for a new certificate in the form the department prescribes.
342.17(2)
(2) If the interest of the owner is terminated or the vehicle is sold under a security agreement by a secured party named in the certificate of title, the transferee shall promptly mail or deliver to the department the last certificate of title, an application for a new certificate in the form the department prescribes, and a statement made by or on behalf of the secured party that the vehicle was repossessed and that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement.
342.17(3)
(3) A person holding a certificate of title whose interest in the vehicle has been extinguished or transferred other than by voluntary transfer shall mail or deliver the certificate to the department upon request of the department. The delivery of the certificate pursuant to the request of the department does not affect the rights of the person surrendering the certificate, and the action of the department in issuing a new certificate of title as provided herein is not conclusive upon the rights of an owner or secured party named in the old certificate.
342.17(4)(a)(a) In all cases of the transfer of a vehicle owned by a decedent, except under
par. (b), ward, trustee or bankrupt, the department shall accept as sufficient evidence of the transfer of ownership the following:
342.17(4)(a)1.
1. Evidence satisfactory to the department of the issuance of the letters of administration, letters testamentary, letters of guardianship, letters of trust or appointment of the trustee in bankruptcy;
342.17(4)(a)2.
2. The title executed by such administrator, executor, guardian or trustee; and
342.17(4)(a)3.
3. The evidence concerning payment of sales or use taxes required by
s. 77.61 (1) or evidence that the transfer is exempt from such taxes.
342.17(4)(b)1.1. The department shall transfer the decedent's interest in any vehicle to his or her surviving spouse upon receipt of the title executed by the surviving spouse and a statement by the spouse which shall state:
342.17(4)(b)1.c.
c. That the spouse is personally liable for the decedent's debts and charges to the extent of the value of the vehicle, subject to
s. 859.25.
342.17(4)(b)2.
2. The transfer shall not affect any liens upon the vehicle.
342.17(4)(b)3.
3. Except as provided in
subd. 4., this paragraph is limited to no more than 5 vehicles titled in this state that are less than 20 years old at the time of the transfer under this paragraph. There is no limit on transfer under this paragraph of vehicles titled in this state that are 20 or more years old at the time of transfer under this paragraph.
342.17(4)(b)4.
4. The limit in
subd. 3. does not apply if the surviving spouse is proceeding under
s. 867.03 (1g) and the total value of the decedent's solely owned property in the state, including the vehicles transferred under this paragraph, does not exceed $10,000.
342.17(4)(c)
(c) Upon compliance with this subsection neither the secretary nor the department shall bear any liability or responsibility for the transfer of such vehicles in accordance with this section.
342.18
342.18
When department to issue a new certificate. 342.18(1)(1) The department, upon receipt of a properly assigned certificate of title, with an application for a new certificate of title, the required fee and any other transfer documents required by law, to support the transfer, shall issue a new certificate of title in the name of the transferee as owner.
342.18(2)
(2) The department, upon receipt of an application for a new certificate of title by a transferee other than by voluntary transfer, with proof of the transfer, the required fee and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner. If the transfer constituted a termination of the owner's interest or a sale under a security agreement by a secured party named in the certificate, under
s. 342.17 (2), the new certificate shall be issued free of the names and addresses of the secured party who terminated the owner's interest and of all secured parties subordinate under
s. 342.19 to such secured party. If the outstanding certificate of title is not delivered to it, the department shall make demand therefor from the holder of such certificate.
342.18(3)
(3) The department shall retain for 5 years a record of every surrendered certificate of title, the record to be maintained so as to permit the tracing of title of the vehicle designated therein.
342.18(4)
(4) Under each of the following circumstances only, the department shall issue a certificate of title for a transferred vehicle without requiring registration of the vehicle:
342.18(4)(a)
(a) Whenever application therefor accompanied by the required fee is made by a finance company licensed under
s. 138.09 or
218.01, a bank organized under the laws of this state, or a national bank located in this state, and the vehicle in question is a used vehicle for which the department had issued a certificate of title to the previous owner or a vehicle previously registered in another jurisdiction or is a mobile home.
342.18(4)(b)
(b) Whenever application therefor accompanied by the required fee is made by any other person and the vehicle in question is a vehicle for which the department had issued a certificate of title to the previous owner or is a vehicle previously registered in another jurisdiction or is a mobile home and the department is satisfied that the present owner has not operated or consented to the operation of the vehicle since it was transferred to that owner and that he or she understands that the certificate of title merely is evidence of ownership of the vehicle and does not authorize operation of the vehicle on the highways of this state.
342.18(4)(c)
(c) Whenever application therefor accompanied by the required fee is made by a dealer or wholesaler to comply with the requirements of
s. 342.16 (1) (d).
342.19
342.19
Perfection of security interests. 342.19(1)
(1) Unless excepted by
s. 342.02, a security interest in a vehicle of a type for which a certificate of title is required is not valid against creditors of the owner or subsequent transferees or secured parties of the vehicle unless perfected as provided in this chapter.
342.19(2)
(2) Except as provided in
sub. (2m), a security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the secured party, and the required fee. It is perfected as of the time of its creation if such delivery is completed within 10 days thereafter, and without regard to the limitations expressed in
s. 409.301 (2); otherwise, as of the time of such delivery.
342.19(2m)
(2m) If a secured party whose name and address is contained on the certificate of title for a vehicle acquires a new or additional security interest in the vehicle, such security interest is perfected at the time of its attachment under
s. 409.203.
342.19(3)
(3) An unperfected security interest is subordinate to the rights of persons described in
s. 409.301.
342.19(4)
(4) The rules of priority stated in
s. 409.312, and the other sections therein referred to, shall, to the extent appropriate, apply to conflicting security interests in a vehicle of a type for which a certificate of title is required, or in a "previously certificated vehicle" as defined in
s. 342.281. A security interest perfected under this section or under
ss. 342.284 and
342.285 is a security interest perfected otherwise than by filing for purposes of
s. 409.312.
342.19(5)
(5) The rules stated in
ss. 409.501 to
409.507 governing the rights and duties of secured parties and debtors and the requirements for, and effect of, disposition of a vehicle by a secured party, upon default shall, to the extent appropriate, govern the rights of secured parties and owners with respect to security interests in vehicles perfected under this chapter.
342.19(6)
(6) If a vehicle is subject to a security interest when brought into this state,
s. 409.103 (1),
(2) and
(3) state the rules which apply to determine the validity and perfection of the security interest in this state.
342.19 Annotation
Ch. 342, not ch. 409, governs perfection of security interest in motor vehicles, but creation of interest is governed by ch. 409. Milwaukee Mack Sales v. First Wis. Nat. Bank, 93 W (2d) 589, 287 NW (2d) 708 (1980).
342.195
342.195
Notification of person who has perfected security interest. Upon request of a person who has perfected a security interest under
s. 342.19, as shown by the records of the department, in a vehicle titled in this state, whenever the department receives information from another state that the vehicle is being titled in the other state and the information does not show that the security interest has been satisfied, the department shall notify the person. The person shall pay the department a $2 fee for each notification.
342.195 History
History: 1983 a. 155;
1985 a. 202.
342.20
342.20
Duties on creation of security interest. If an owner creates a security interest in a vehicle, unless the name and address of the secured party already is contained on the certificate of title for the vehicle:
342.20(1)
(1) The owner shall immediately execute, in the space provided therefor on the certificate of title or on a separate form or in an automated format prescribed by the department, an application to name the secured party on the certificate, showing the name and address of the secured party, and cause the certificate, application and the required fee to be delivered to the secured party.
342.20(2)
(2) The secured party shall immediately cause the certificate, application and the required fee to be mailed or delivered to the department.
342.20(3)
(3) Upon receipt of the certificate of title, application and the required fee, the department shall issue to the owner a new certificate containing the name and address of the new secured party. The department shall deliver to such new secured party and to the register of deeds of the county of the owner's residence, memoranda, in such form as the department prescribes, evidencing the notation of the security interest upon the certificate; and thereafter, upon any assignment, termination or release of the security interest, additional memoranda evidencing such action.
342.20(4)
(4) The registers of deeds may record, and maintain a file of, all memoranda received from the department under
sub. (3). Such recording, however, is not required for perfection, release or assignment of security interests, which shall be effective upon compliance with
ss. 342.19 (2),
342.21 and
342.22 (1) and
(2).
342.21
342.21
Assignment of security interest. 342.21(1)
(1) A secured party may assign, absolutely or otherwise, the party's security interest in the vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as a secured party until the assignee is named as secured party on the certificate.
342.21(2)
(2) The assignee may but need not, to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as secured party, upon delivering to the department the certificate and an assignment by the secured party named in the certificate in the form the department prescribes.
342.22
342.22
Release of security interest. 342.22(1)
(1) Within one month or within 10 days following written demand by the debtor after there is no outstanding obligation and no commitment to make advances, incur obligations or otherwise give value, secured by the security interest in a vehicle under any security agreement between the owner and the secured party, the secured party shall execute and deliver to the owner, as the department prescribes, a release of the security interest in the form and manner prescribed by the department and a notice to the owner stating in no less than 10-point boldface type the owner's obligation under
sub. (2). If the secured party fails to execute and deliver the release and notice of the owner's obligation as required by this subsection, the secured party is liable to the owner for $25 and for any loss caused to the owner by the failure.
342.22(2)
(2) The owner, other than a dealer holding the vehicle for resale, upon receipt of the release and notice of obligation shall promptly cause the certificate and release to be mailed or delivered to the department, which shall release the secured party's rights on the certificate and issue a new certificate.
342.22(3)
(3) The department may remove information pertaining to a security interest perfected under
s. 342.19 from its computerized records when the following applicable period of time after the original perfection has elapsed unless the security interest is renewed in the same manner as provided in
s. 342.19 (2) for perfection of a security interest:
342.22(4)
(4) Removal of information pertaining to a security interest from the records of the department under
sub. (3) does not affect any security agreement between the owner of a vehicle and the holder of security interest in the vehicle.
342.23
342.23
Secured party's and owner's duties. 342.23(1)
(1) A secured party named in a certificate of title shall, upon written request of the owner or of another secured party named on the certificate, disclose any pertinent information as to the party's security agreement and the indebtedness secured by it.
342.23(2)(a)(a) An owner shall promptly deliver the owner's certificate of title to any secured party who is named on it or who has a security interest in the vehicle described in it under any other applicable prior law of this state, upon receipt of a notice from such secured party that the security interest is to be assigned, extended or perfected.
342.23(2)(b)
(b) No secured party may take possession of any certificate of title except as provided in
par. (a). Any person who violates this paragraph may be required to forfeit not more than $1,000.
342.23(3)
(3) Any secured party who fails to disclose information pursuant to
sub. (1) shall be liable for any loss caused to owner thereby.
342.23(4)
(4) Any owner who fails to deliver the certificate of title to a secured party requesting it pursuant to
sub. (2) (a) shall be liable to such secured party for any loss caused to the secured party thereby and may be required to forfeit not more than $200.
342.24
342.24
Method of perfecting exclusive. The method provided in this chapter of perfecting and giving notice of security interests subject to this chapter is exclusive. Security interests subject to this chapter are hereby exempted from the provisions of law which otherwise require or relate to the filing of instruments creating or evidencing security interests.
342.24 Annotation
The motor vehicle law provisions relating to security do not apply to a mobile home once it has become a fixture. George v. Commercial Credit Corp. 440 F (2d) 551.
342.25
342.25
Suspension or revocation of certificate. 342.25(1)(1) The department shall suspend or revoke a certificate of title if it finds any of the following:
342.25(1)(a)
(a) The certificate of title was fraudulently procured, erroneously issued or prohibited by law.
342.25(1)(b)
(b) The vehicle has been scrapped, dismantled or destroyed.
342.25(1)(c)
(c) A transfer of title is set aside by a court of record by order or judgment.
342.25(1)(d)
(d) The vehicle's odometer has been subjected to tampering and return of the certificate of title to the department is considered necessary to make a notation of that information on the certificate.
342.25(2)
(2) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
342.25(3)
(3) When the department suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the department.
342.25(4)
(4) The department may seize and impound any certificate of title which has been suspended or revoked.
