409.616(4)
(4) Substantial compliance. A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of
sub. (1) is sufficient, even if it includes minor errors that are not seriously misleading.
409.616(5)
(5) Charges for responses. A debtor or consumer obligor is entitled without charge to one response to a request under this section during any 6-month period in which the secured party did not send to the debtor or consumer obligor an explanation pursuant to
sub. (2) (a). The secured party may require payment of a charge not exceeding $25 for each additional response.
409.616 History
History: 2001 a. 10.
409.617
409.617
Rights of transferee of collateral. 409.617(1)
(1)
Effects of disposition. A secured party's disposition of collateral after default:
409.617(1)(a)
(a) Transfers to a transferee for value all of the debtor's rights in the collateral;
409.617(1)(b)
(b) Discharges the security interest under which the disposition is made; and
409.617(1)(c)
(c) Discharges any subordinate security interest or other subordinate lien.
409.617(2)
(2) Rights of good-faith transferee. A transferee that acts in good faith takes free of the rights and interests described in
sub. (1), even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.
409.617(3)
(3) Rights of other transferee. If a transferee does not take free of the rights and interests described in
sub. (1), the transferee takes the collateral subject to:
409.617(3)(b)
(b) The security interest or agricultural lien under which the disposition is made; and
409.617 History
History: 2001 a. 10;
2003 a. 63.
409.618
409.618
Rights and duties of certain secondary obligors. 409.618(1)(1)
Rights and duties of secondary obligor. A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
409.618(1)(a)
(a) Receives an assignment of a secured obligation from the secured party;
409.618(1)(b)
(b) Receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or
409.618(1)(c)
(c) Is subrogated to the rights of a secured party with respect to collateral.
409.618(2)
(2) Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in
sub. (1):
409.618(2)(b)
(b) Relieves the secured party of further duties under this chapter.
409.618 History
History: 2001 a. 10.
409.619
409.619
Transfer of record or legal title. 409.619(1)
(1)
Transfer statement. In this section, “transfer statement" means a record authenticated by a secured party stating:
409.619(1)(a)
(a) That the debtor has defaulted in connection with an obligation secured by specified collateral;
409.619(1)(b)
(b) That the secured party has exercised its postdefault remedies with respect to the collateral;
409.619(1)(c)
(c) That, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and
409.619(1)(d)
(d) The name and mailing address of the secured party, debtor, and transferee.
409.619(2)
(2) Effect of transfer statement. A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate-of-title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:
409.619(2)(b)
(b) Promptly amend its records to reflect the transfer; and
409.619(2)(c)
(c) If applicable, issue a new appropriate certificate of title in the name of the transferee.
409.619(3)
(3) Transfer not a disposition; no relief of secured party's duties. A transfer of the record or legal title to collateral to a secured party under
sub. (2) or otherwise is not of itself a disposition of collateral under this chapter and does not of itself relieve the secured party of its duties under this chapter.
409.619 History
History: 2001 a. 10.
409.620
409.620
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral. 409.620(1)(1)
Conditions to acceptance in satisfaction. Except as otherwise provided in
sub. (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
409.620(1)(b)
(b) The secured party does not receive, within the time set forth in
sub. (4), a notification of objection to the proposal authenticated by:
409.620(1)(b)2.
2. Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;
409.620(1)(c)
(c) If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and
409.620(1)(d)
(d) Subsection (5) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to
s. 409.624.
409.620(2)
(2) Purported acceptance ineffective. A purported or apparent acceptance of collateral under this section is ineffective unless:
409.620(2)(a)
(a) The secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and
409.620(3)
(3) Debtor's consent. For purposes of this section:
409.620(3)(a)
(a) A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and
409.620(3)(b)
(b) A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:
409.620(3)(b)1.
1. Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;
409.620(3)(b)2.
2. In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and
409.620(3)(b)3.
3. Does not receive a notification of objection authenticated by the debtor within 20 days after the proposal is sent.
409.620(4)
(4) Effectiveness of notification. To be effective under
sub. (1) (b), a notification of objection must be received by the secured party:
409.620(4)(a)
(a) In the case of a person to which the proposal was sent pursuant to
s. 409.621, within 20 days after notification was sent to that person; and
409.620(4)(b)2.
2. If a notification was not sent, before the debtor consents to the acceptance under
sub. (3).
409.620(5)
(5) Mandatory disposition of consumer goods. A secured party that has taken possession of collateral shall dispose of the collateral pursuant to
s. 409.610 within the time specified in
sub. (6) if:
409.620(5)(a)
(a) Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or
409.620(5)(b)
(b) Sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.
409.620(6)
(6) Compliance with mandatory disposition requirement. To comply with
sub. (5), the secured party shall dispose of the collateral:
409.620(6)(b)
(b) Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.
409.620(7)
(7) No partial satisfaction in consumer transaction. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.
409.620 History
History: 2001 a. 10.
409.621
409.621
Notification of proposal to accept collateral. 409.621(1)(1)
Persons to which proposal to be sent. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
409.621(1)(a)
(a) Any person from which the secured party has received, before the debtor consented to the acceptance, an authenticated notification of a claim of an interest in the collateral;
409.621(1)(b)
(b) Any other secured party or lienholder that, 10 days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
409.621(1)(b)2.
2. Was indexed under the debtor's name as of that date; and
409.621(1)(b)3.
3. Was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date; and
409.621(1)(c)
(c) Any other secured party that, 10 days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in
s. 409.311 (1).
409.621(2)
(2) Proposal to be sent to secondary obligor in partial satisfaction. A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in
sub. (1).
409.621 History
History: 2001 a. 10.
409.622
409.622
Effect of acceptance of collateral. 409.622(1)
(1)
Effect of acceptance. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
409.622(1)(a)
(a) Discharges the obligation to the extent consented to by the debtor;
409.622(1)(b)
(b) Transfers to the secured party all of a debtor's rights in the collateral;
409.622(1)(c)
(c) Discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
409.622(2)
(2) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under
sub. (1), even if the secured party fails to comply with this chapter.
409.622 History
History: 2001 a. 10.
409.623
409.623
Right to redeem collateral. 409.623(1)
(1)
Persons that may redeem. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
409.623(2)
(2) Requirements for redemption. To redeem collateral, a person shall tender:
409.623(2)(a)
(a) Fulfillment of all obligations secured by the collateral; and
409.623(3)
(3) When redemption may occur. A redemption may occur at any time before a secured party:
