SB9-SSA1,87,5 22409.321 Licensee of general intangible and lessee of goods in ordinary
23course of business
. (1) Licensee in ordinary course of business. In this section,
24"licensee in ordinary course of business" means a person that becomes a licensee of
25a general intangible in good faith, without knowledge that the license violates the

1rights of another person in the general intangible, and in the ordinary course from
2a person in the business of licensing general intangibles of that kind. A person
3becomes a licensee in the ordinary course if the license to the person comports with
4the usual or customary practices in the kind of business in which the licensor is
5engaged or with the licensor's own usual or customary practices.
SB9-SSA1,87,9 6(2) Rights of licensee in ordinary course of business. A licensee in ordinary
7course of business takes its rights under a nonexclusive license free of a security
8interest in the general intangible created by the licensor, even if the security interest
9is perfected and the licensee knows of its existence.
SB9-SSA1,87,13 10(3) Rights of lessee in ordinary course of business. A lessee in ordinary
11course of business takes its leasehold interest free of a security interest in the goods
12created by the lessor, even if the security interest is perfected and the lessee knows
13of its existence.
SB9-SSA1,87,18 14409.322 Priorities among conflicting security interests in and
15agricultural liens on same collateral. (1)
General priority rules. Except as
16otherwise provided in this section, priority among conflicting security interests and
17agricultural liens in the same collateral is determined according to the following
18rules:
SB9-SSA1,87,2319 (a) Conflicting perfected security interests and agricultural liens rank
20according to priority in time of filing or perfection. Priority dates from the earlier of
21the time a filing covering the collateral is first made or the security interest or
22agricultural lien is first perfected, if there is no period thereafter when there is
23neither filing nor perfection.
SB9-SSA1,87,2524 (b) A perfected security interest or agricultural lien has priority over a
25conflicting unperfected security interest or agricultural lien.
SB9-SSA1,88,2
1(c) The first security interest or agricultural lien to attach or become effective
2has priority if conflicting security interests and agricultural liens are unperfected.
SB9-SSA1,88,4 3(2) Time of perfection: proceeds and supporting obligations. For the
4purposes of sub. (1) (a):
SB9-SSA1,88,65 (a) The time of filing or perfection as to a security interest in collateral is also
6the time of filing or perfection as to a security interest in proceeds; and
SB9-SSA1,88,97 (b) The time of filing or perfection as to a security interest in collateral
8supported by a supporting obligation is also the time of filing or perfection as to a
9security interest in the supporting obligation.
SB9-SSA1,88,13 10(3) Special priority rules: proceeds and supporting obligations. Except as
11otherwise provided in sub. (6), a security interest in collateral which qualifies for
12priority over a conflicting security interest under s. 409.327, 409.328, 409.329,
13409.330, or 409.331 also has priority over a conflicting security interest in:
SB9-SSA1,88,1414 (a) Any supporting obligation for the collateral; and
SB9-SSA1,88,1515 (b) Proceeds of the collateral if:
SB9-SSA1,88,1616 1. The security interest in proceeds is perfected;
SB9-SSA1,88,1717 2. The proceeds are cash proceeds or of the same type as the collateral; and
SB9-SSA1,88,2018 3. In the case of proceeds that are proceeds of proceeds, all intervening proceeds
19are cash proceeds, proceeds of the same type as the collateral, or an account relating
20to the collateral.
SB9-SSA1,89,2 21(4) First-to-file priority rule for certain collateral. Subject to sub. (5) and
22except as otherwise provided in sub. (6), if a security interest in chattel paper, deposit
23accounts, negotiable documents, instruments, investment property, or
24letter-of-credit rights is perfected by a method other than filing, conflicting

1perfected security interests in proceeds of the collateral rank according to priority in
2time of filing.
SB9-SSA1,89,5 3(5) Applicability of sub. (4). Subsection (4) applies only if the proceeds of the
4collateral are not cash proceeds, chattel paper, negotiable documents, instruments,
5investment property, or letter-of-credit rights.
SB9-SSA1,89,6 6(6) Limitations on subs. (1) to (5). Subsections (1) to (5) are subject to:
SB9-SSA1,89,77 (a) Subsection (7) and the other provisions of this subchapter;
SB9-SSA1,89,88 (b) Section 404.210 with respect to a security interest of a collecting bank;
SB9-SSA1,89,109 (c) Section 405.118 with respect to a security interest of an issuer or nominated
10person; and
SB9-SSA1,89,1211 (d) Section 409.110 with respect to a security interest arising under ch. 402 or
12411.
SB9-SSA1,89,15 13(7) Priority under agricultural lien statute. A perfected agricultural lien on
14collateral has priority over a conflicting security interest in or agricultural lien on
15the same collateral if the statute creating the agricultural lien so provides.
SB9-SSA1,89,20 16409.323 Future advances. (1) When priority based on time of advance.
17Except as otherwise provided in sub. (3), for purposes of determining the priority of
18a perfected security interest under s. 409.322 (1) (a), perfection of the security
19interest dates from the time an advance is made to the extent that the security
20interest secures an advance that:
SB9-SSA1,89,2121 (a) Is made while the security interest is perfected only:
SB9-SSA1,89,2222 1. Under s. 409.309 when it attaches; or
SB9-SSA1,89,2323 2. Temporarily under s. 409.312 (5), (6), or (7); and
SB9-SSA1,90,3
1(b) Is not made pursuant to a commitment entered into before or while the
2security interest is perfected by a method other than under s. 409.309 or 409.312 (5),
3(6), or (7).