LRB-4103/1

MDK:wlj:ph

2009 - 2010 LEGISLATURE

2009 Senate BILL 472

January 22, 2010 - Introduced by Senators Risser and Taylor, cosponsored by Representatives Cullen and Townsend. Referred to Committee on Veterans and Military Affairs, Biotechnology, and Financial Institutions.

SB472,1,6 An Act to amend 59.43 (1) (L), 59.43 (1) (n), 126.25 (11), 137.12 (2) (b), 137.24 (4), 340.01 (56o), 342.03, 402.202 (1), 402.208 (2), 403.103 (1) (j), 407.102 (1) (e), 407.103 (2), 410.106 (1), 410.204 (2), 411.501 (4), 706.08 (4) (c) and 893.36 (1g) (a); and to repeal and recreate chapter 401 of the statutes; relating to: adopting revised article 1 of the Uniform Commercial Code concerning general provisions.

Analysis by the Legislative Reference Bureau

This bill repeals and recreates the general provisions chapter of the Uniform Commercial Code (UCC). The UCC governs certain transactions relating to sales, negotiable instruments, bank deposits and collections, letters of credit, bulk transfers, documents of title, investment securities, secured transactions, fund transfers, and leases. The bill revises and updates the general provisions chapter to better reflect and accommodate changing business practices. The bill also makes many changes of a technical or nonsubstantive nature, such as reordering and renumbering sections. In terms of substantive changes to the general provisions chapter of the UCC, the bill does all of the following:

1. Clarifies that the general provisions chapter applies only to transactions governed by the UCC and not by other law.

2. Clarifies when other principles of law may be used to supplement UCC provisions of law.

3. Specifically provides that evidence of "course of performance" may be used to interpret a contract along with course of dealing and usage of trade.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB472, s. 1 Section 1. 59.43 (1) (L) of the statutes is amended to read:

SB472,2,6 59.43 (1) (L) File all documents pertaining to security interests, as defined in s. 401.201 (37) (a) (2) (t), that are required or authorized by law to be filed with the register. Except as otherwise prescribed by the department of financial institutions under subch. V of ch. 409, these documents shall be executed in a manner that satisfies the requirements set forth in sub. (2m) (b) 1. to 5.

SB472, s. 2 Section 2. 59.43 (1) (n) of the statutes is amended to read:

SB472,2,11 59.43 (1) (n) Upon the filing of a financing statement or other document evidencing the creation of a security interest, as defined in s. 401.201 (37) (a) (2) (t), required to be filed or recorded with the register under s. 409.501 (1) (a), index the statement or document in the real estate records index under sub. (9).