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. A security interest perfected under this section 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 the perfection of security interests in motor vehicles, but the creation of security interests is governed by ch. 409. Milwaukee Mack Sales v. First Wisconsin National Bank,
93 Wis. 2d 589,
287 N.W.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
Motor vehicle law provisions relating to security do not apply to a mobile home that has become a fixture. George v. Commercial Credit Corp.
440 F.2d 551 (1971).
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.
342.255
342.255
Cancellation of title or registration. The department shall cancel a title or registration whenever:
342.255(1)
(1) A transfer of title is set aside by the court by order or judgment; or
342.255(2)
(2) Fraud on the department is discovered by the department; or
342.255(3)
(3) It is subsequently discovered that the issuance or possession of a title or registration is prohibited by law or that the odometer of a vehicle for which a certificate of title has been issued by the department 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.
342.26
342.26
Hearings and appeal. Any person aggrieved by an act or omission of the department under this chapter is entitled, upon request, to a hearing and judicial review thereof in accordance with
ch. 227. Contested cases shall be heard and decided by the division of hearings and appeals.
ANTI-THEFT AND ANTI-FRAUD PROVISIONS
342.30
342.30
Identification numbers. 342.30(1c)
(1c) In this section, "owner" includes the lessee of a vehicle if the vehicle is registered, or required to be registered, by the lessee under
ch. 341.
342.30(1g)
(1g) No person may remove, alter or obliterate or intentionally make it impossible to read, as required under
sub. (2), an identification number. This subsection does not apply to the obliteration of an identification number which occurs in the process of crushing a vehicle or vehicle part for scrap.
342.30(1m)
(1m) When the department is satisfied as to the ownership of a vehicle subject to registration which has not been numbered by the manufacturer or on which the original number has been removed, obliterated or altered or on which the original casting has been replaced or on which a new identification number is required under
s. 342.06 (1) (f), the department shall assign a new identification number for each such vehicle.
342.30(2)
(2) Except as provided in this subsection, an identification number assigned by the department to a vehicle shall be permanently affixed to a location on the vehicle that is readily visible when observed from outside the vehicle, as specified by the department by rule. Identification numbers assigned for cycles shall be stamped on the left side, near the top of the engine casting just below the cylinder barrel. Such stamping or affixing shall be done under the supervision of a dealer, distributor or manufacturer registered under
s. 341.51 or under the supervision of a peace officer. The person supervising the stamping or affixing shall make a report thereof to the department.
342.30(2m)(a)(a) A traffic officer or person authorized to enforce nonmoving traffic violations may use reasonable means to gain access to a vehicle if that vehicle's identification number cannot be read as required under
sub. (2).
342.30(2m)(b)
(b) Any person acting under
par. (a) is immune from civil and criminal liability for good faith actions taken within the scope of that person's official duties.
342.30(3)(a)(a) Any person who violates
sub. (1g) may be fined not more than $5,000 or imprisoned for not more than 7 years and 6 months or both.
342.30(3)(b)1.1. Any owner of a vehicle for which the department has issued a new identification number who fails to have such number attached or stamped as required by
sub. (2) may be required to forfeit not more than $200.
342.30(3)(b)2.
2. Any owner of a vehicle for which the department has issued a new identification number who with intent to defraud fails to have such number attached or stamped as required by
sub. (2) may be required to forfeit not more than $1,000.
342.30(4)(a)(a) If a law enforcement agency finds a vehicle or part of a vehicle on which the identification number has been removed, altered or obliterated or made impossible to read, the law enforcement agency may seize the vehicle or part of a vehicle. If the identification number cannot be identified, the seized vehicle or vehicle part is presumed to be contraband. Except as provided in
par. (d), if the identification number can be identified, the agency may return the vehicle to the owner. Except as provided in
par. (b), the district attorney shall institute forfeiture proceedings under
s. 973.076 regarding any vehicle or vehicle part that is seized under this paragraph and not returned to the owner.
342.30(4)(b)
(b) If the district attorney brings a criminal action arising out of the seizure under
par. (a), the district attorney shall not institute forfeiture proceedings under
s. 973.076 before there is a final determination in the criminal action.
342.30(4)(c)
(c) Paragraph (a) does not apply to the obliteration of an identification number that occurs in the process of crushing a vehicle or vehicle part for scrap.
342.30(4)(d)
(d) If the identification number of a motorcycle or part of a motorcycle seized under
par. (a) can be identified and if no forfeiture proceeding is commenced under
s. 973.076 within 30 days after the seizure of the property, the custodian of the seized property shall immediately return the seized property to the owner named in the certificate of title or registration. If a motorcycle or part of a motorcycle is not returned to the owner named in the certificate of title or registration as required in this paragraph, and if the owner of the property commences a replevin action to recover possession of the property, and if the judge finds that the custodian of the property unreasonably retained the property after 30 days after the seizure, the court shall award the owner the costs and reasonable attorney fees incurred in the replevin action.
342.30 Annotation
The time limits in s. 973.076 are inapplicable to forfeitures of vehicles seized under this section. Sub. (4) (b) controls. State v. Elliot,
203 Wis. 2d 95,
551 N.W.2d 850 (Ct. App. 1996).
342.31
342.31
Report of stolen or abandoned motor vehicles. 342.31(1)(1) Each sheriff and police department in the state shall immediately report to the department of justice each motor vehicle reported stolen or recovered within its jurisdiction.
342.31(2)
(2) An owner of a garage or trailer park or of any type of storage or parking lot for motor vehicles shall report to the local law enforcement agency the make, motor number and serial or identification number of any vehicle stored, parked or left in the owner's garage, park or lot for a period of more than 30 consecutive days unless arrangements have been made by the owner of the vehicle for its continuous storage or parking or unless the owner of the vehicle is personally known to the owner of the garage, park or lot. Any person who fails to submit such report may be required to forfeit not more than $25.
342.32
342.32
Counterfeiting and unlawful possession of certificate of title. 342.32(1)(1) No person may counterfeit, possess, sell, offer for sale or supply a forged, fictitious, counterfeit, stolen or fraudulently or unlawfully obtained certificate of title or registration, manufacturer's document of origin, instrument or other document that is or may be used as evidence of ownership, the transfer of ownership or the mileage disclosure of a motor vehicle.
342.32(2)
(2) Unless authorized by the department, no person may possess, sell, offer for sale or supply any blank certificates of title or registration, manufacturers' documents of origin, instruments or other documents that may be used as evidence of ownership or registration of a motor vehicle.
342.32(3)
(3) Whoever violates
sub. (1) or
(2) may be fined not more than $5,000 or imprisoned for not more than 7 years and 6 months, or both, for each violation.
342.32 History
History: 1993 a. 159;
1997 a. 283.
342.33
342.33
Sale of vehicle used as taxicab. No person shall sell or exchange, authorize or direct the sale or exchange of, or offer for sale or exchange any motor vehicle which the person knows has been used as a taxicab or for public transportation unless the certificate of title for such vehicle has been stamped by the department with the words "This motor vehicle has previously been used as a taxicab or for public transportation" and unless such certificate of title is exhibited by the vendor to the vendee before the sale of such vehicle is consummated. Any person who violates this section may be required to forfeit not more than $1,000.
