409.525(5)
(5)
Record of mortgage. This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under s.
409.502 (3). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.
409.525 History
History: 2001 a. 10.
409.526
409.526
Filing-office rules. 409.526(1)(1)
Promulgation of filing-office rules. The secretary of financial institutions shall promulgate filing-office rules to implement this chapter. The filing-office rules must be:
409.526(2)
(2)
Harmonization of rules. To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this subchapter, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially this subchapter, the secretary of financial institutions, so far as is consistent with the purposes, policies, and provisions of this chapter, in promulgating filing-office rules, shall:
409.526(2)(a)
(a) Consult with filing offices in other jurisdictions that enact substantially this subchapter;
409.526(2)(b)
(b) Consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
409.526(2)(c)
(c) Take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this subchapter.
409.526 History
History: 2001 a. 10.
409.526 Cross-reference
Cross-reference: See also
DFI-CCS, Wis. adm. code.
409.527
409.527
Duty to report. The department of financial institutions shall include in its report under s.
15.04 (1) (d) a report on the operation of the filing office. The report must contain a statement of the extent to which:
409.527(1)
(1)
Harmonization of rules: filing offices in other jurisdictions. The filing-office rules are not in harmony with the rules of filing offices in other jurisdictions that enact substantially this subchapter and the reasons for these variations; and
409.527(2)
(2)
Harmonization of rules: model rules. The filing-office rules are not in harmony with the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators, or any successor organization, and the reasons for these variations.
409.527 History
History: 2001 a. 10.
409.528
409.528
Statewide lien system. The department shall establish and maintain a statewide lien system under this subchapter.
409.528 History
History: 2001 a. 10;
2003 a. 206.
DEFAULT
409.601
409.601
Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes. 409.601(1)(1)
Rights of secured party after default. After default, a secured party has the rights provided in this subchapter and, except as otherwise provided in s.
409.602, those provided by agreement of the parties. A secured party:
409.601(1)(a)
(a) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
409.601(1)(b)
(b) If the collateral is documents, may proceed either as to the documents or as to the goods they cover.
409.601(3)
(3)
Rights cumulative; simultaneous exercise. The rights under subs.
(1) and
(2) are cumulative and may be exercised simultaneously.
409.601(4)
(4)
Rights of debtor and obligor. Except as otherwise provided in sub.
(7) and s.
409.605, after default, a debtor and an obligor have the rights provided in this subchapter and by agreement of the parties.
409.601(5)
(5)
Lien of levy after judgment. If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
409.601(5)(a)
(a) The date of perfection of the security interest or agricultural lien in the collateral;
409.601(5)(b)
(b) The date of filing a financing statement covering the collateral; or
409.601(5)(c)
(c) Any date specified in a statute under which the agricultural lien was created.
409.601(6)
(6)
Execution sale. A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this chapter.
409.601(7)
(7)
Consignor or buyer of certain rights to payment. Except as otherwise provided in s.
409.607 (3), this subchapter imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
409.601 History
History: 2001 a. 10;
2009 a. 322.
409.602
409.602
Waiver and variance of rights and duties. Except as otherwise provided in s.
409.624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:
409.602(2)
(2) Section
409.210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account;
409.602(4)
(4) Sections
409.608 (1) and
409.615 (3) to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition;
409.602(6)
(6) Section
409.609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace;
409.602(8)
(8) Section
409.615 (6), which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor;
409.602(9)
(9) Section
409.616, which deals with explanation of the calculation of a surplus or deficiency;
409.602(13)
(13) Sections
409.625 and
409.626, which deal with the secured party's liability for failure to comply with this chapter.
409.602 History
History: 2001 a. 10.
409.602 Annotation
The plain language of s. 401.102 (3) states, first, an exception that parties may vary the effect of U.C.C. provisions by agreement and, second, an exception to the 1st exception that chs. 401 to 411 include provisions that certain rights may not be waived by contract. The subsections in this section are an exception to the exception defined in s. 401.102 (3), so the parties must abide by them. Kraenzler v. Brace,
2009 WI App 131,
321 Wis. 2d 265,
773 N.W.2d 481,
08-1709.
409.603
409.603
Agreement on standards concerning rights and duties. 409.603(1)(1)
Agreed standards. The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in s.
409.602 if the standards are not manifestly unreasonable.
409.603(2)
(2)
Agreed standards inapplicable to breach of peace. Subsection
(1) does not apply to the duty under s.
409.609 to refrain from breaching the peace.
409.603 History
History: 2001 a. 10.
409.604
409.604
Procedure if security agreement covers real property or fixtures. 409.604(1)(1)
Enforcement: personal and real property. If a security agreement covers both personal and real property, a secured party may proceed:
409.604(1)(a)
(a) Under this subchapter as to the personal property without prejudicing any rights with respect to the real property; or
409.604(1)(b)
(b) As to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of this subchapter do not apply.
409.604(2)
(2)
Enforcement: fixtures. Subject to sub.
(3), if a security agreement covers goods that are or become fixtures, a secured party may proceed:
409.604(2)(b)
(b) In accordance with the rights with respect to real property, in which case the other provisions of this subchapter do not apply.
409.604(3)
(3)
Removal of fixtures. Subject to the other provisions of this subchapter, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
409.604(4)
(4)
Injury caused by removal. A secured party that removes collateral shall promptly reimburse any encumbrancer or owner of the real property, other than the debtor, for the cost of repair of any physical injury caused by the removal. The secured party need not reimburse the encumbrancer or owner for any diminution in value of the real property caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
409.604 History
History: 2001 a. 10.
409.605
409.605
Unknown debtor or secondary obligor. A secured party does not owe a duty based on its status as secured party:
409.605(1)
(1) To a person that is a debtor or obligor, unless the secured party knows:
409.605(2)
(2) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
409.605 History
History: 2001 a. 10.
409.606
409.606
Time of default for agricultural lien. For purposes of this subchapter, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created.
409.606 History
History: 2001 a. 10.
409.607
409.607
Collection and enforcement by secured party. 409.607(1)(1)
Collection and enforcement generally. If so agreed, and in any event after default, a secured party:
409.607(1)(a)
(a) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
409.607(1)(c)
(c) May enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
409.607(1)(d)
(d) If it holds a security interest in a deposit account perfected by control under s.
409.104 (1) (a), may apply the balance of the deposit account to the obligation secured by the deposit account; and
409.607(1)(e)
(e) If it holds a security interest in a deposit account perfected by control under s.
409.104 (1) (b) or
(c), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
409.607(2)
(2)
Nonjudicial enforcement of mortgage. If necessary to enable a secured party to exercise under sub.
(1) (c) the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:
409.607(2)(a)
(a) A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and
409.607(2)(b)
(b) The secured party's sworn affidavit in recordable form stating that:
409.607(2)(b)1.
1. A default has occurred with respect to the obligation secured by the mortgage; and
409.607(2)(b)2.
2. The secured party is entitled to enforce the mortgage nonjudicially.
409.607(3)
(3)
Commercially reasonable collection and enforcement. A secured party shall proceed in a commercially reasonable manner if the secured party:
409.607(3)(a)
(a) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and
