409.329 Priority of security interests in letter-ofcredit right. The following rules govern priority among conflicting security interests in the same letter-of-credit right: (1) CONTROL BY SECURED PARTY. A security interest held by a secured party having control of the letter-of-credit right under s. 409.107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control. (2) PRIORITY IN TIME OF CONTROL. Security interests perfected by control under s. 409.314 rank according to priority in time of obtaining control. History: 2001 a. 10.
409.330 Priority of purchaser of chattel paper or instrument. (1) PURCHASER’S PRIORITY: SECURITY INTEREST CLAIMED MERELY AS PROCEEDS. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if: (a) In good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value and takes possession of
22
the chattel paper or obtains control of the chattel paper under s. 409.105; and (b) The chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser. (2) PURCHASER’S PRIORITY: OTHER SECURITY INTERESTS. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under s. 409.105 in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party. (3) CHATTEL PAPER PURCHASER’S PRIORITY IN PROCEEDS. Except as otherwise provided in s. 409.327, a purchaser having priority in chattel paper under sub. (1) or (2) also has priority in proceeds of the chattel paper to the extent that: (a) Section 409.322 provides for priority in the proceeds; or (b) The proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected. (4) INSTRUMENT PURCHASER’S PRIORITY. Except as otherwise provided in s. 409.331 (1), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party. (5) HOLDER OF PURCHASE-MONEY SECURITY INTEREST GIVES NEW VALUE. For purposes of subs. (1) and (2), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory. (6) INDICATION OF ASSIGNMENT GIVES KNOWLEDGE. For purposes of subs. (2) and (4), if chattel paper or an instrument indicates that it has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party. History: 2001 a. 10.
409.331 Priority of rights of purchasers of instruments, documents, and securities under other chapters; priority of interests in financial assets and security entitlements under ch. 408. (1) RIGHTS UNDER CHS. 403, 407, AND 408 NOT LIMITED. This chapter does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in chs. 403, 407, and 408. (2) PROTECTION UNDER CH. 408. This chapter does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of an adverse claim under ch. 408. (3) FILING NOT NOTICE. Filing under this chapter does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subs. (1) and (2). History: 2001 a. 10.
409.332 Transfer of money; transfer of funds from deposit account. (1) TRANSFEREE OF MONEY. A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party. (2) TRANSFEREE OF FUNDS FROM DEPOSIT ACCOUNT. A transferee of funds from a deposit account takes the funds free of
May 22, 2026, are designated by NOTES. (Published 5-22-26)
23
Updated 23-24 Wis. Stats.
a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party. History: 2001 a. 10.
409.333 Priority of certain liens arising by operation of law. (1) POSSESSORY LIEN. In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien: (a) Which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person’s business; (b) Which is created by statute or rule of law in favor of the person; and (c) Whose effectiveness depends on the person’s possession of the goods. (2) PRIORITY OF POSSESSORY LIEN. A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise. History: 2001 a. 10. A lien under s. 779.43 (3) is contingent on possession and is a possessory lien under sub. (1) with priority over a security interest. Premier Community Bank v. Schuh, 2010 WI App 111, 329 Wis. 2d 146, 789 N.W.2d 388, 09-1722.
409.334 Priority of security interests in fixtures and crops. (1) SECURITY INTEREST IN FIXTURES UNDER THIS CHAPTER. A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land. (2) SECURITY INTEREST IN FIXTURES UNDER REAL PROPERTY LAW. This chapter does not prevent creation of an encumbrance upon fixtures under real property law. (3) GENERAL RULE: SUBORDINATION OF SECURITY INTEREST IN FIXTURES. In cases not governed by subs. (4) to (8), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor. (4) FIXTURES PURCHASE-MONEY PRIORITY. Except as otherwise provided in sub. (8), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and: (a) The security interest is a purchase-money security interest; (b) The interest of the encumbrancer or owner arises before the goods become fixtures; and (c) The security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter. (5) PRIORITY OF SECURITY INTEREST IN FIXTURES OVER INTERESTS IN REAL PROPERTY. A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if: (a) The debtor has an interest of record in the real property or is in possession of the real property and the security interest: 1. Is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and 2. Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner; (b) Before the goods become fixtures, the security interest is perfected by any method permitted by this chapter and the fixtures are readily removable: 1. Factory or office machines;
UCC — SECURED TRANSACTIONS
409.335
2. Equipment that is not primarily used or leased for use in the operation of the real property; or 3. Replacements of domestic appliances that are consumer goods; (c) The conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this chapter; or (d) The security interest is: 1. Created in a manufactured home in a manufactured-home transaction; and 2. Perfected pursuant to a statute described in s. 409.311 (1) (b) or (f). (6) PRIORITY BASED ON CONSENT, DISCLAIMER, OR RIGHT TO REMOVE. A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if: (a) The encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or (b) The debtor has a right to remove the goods as against the encumbrancer or owner. (7) CONTINUATION OF SUB. (6) PRIORITY. The priority of the security interest under sub. (6) (b) continues for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer or owner terminates. (8) PRIORITY OF CONSTRUCTION MORTGAGE. A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subs. (5) and (6), a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage. (9) PRIORITY OF SECURITY INTEREST IN CROPS. A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property. History: 2001 a. 10.
409.335 Accessions. (1) CREATION OF SECURITY INTEREST IN ACCESSION. A security interest may be created in an accession and continues in collateral that becomes an accession. (2) PERFECTION OF SECURITY INTEREST. If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. (3) PRIORITY OF SECURITY INTEREST. Except as otherwise provided in sub. (4), the other provisions of this subchapter determine the priority of a security interest in an accession. (4) COMPLIANCE WITH CERTIFICATE-OF-TITLE STATUTE. A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate-of-title statute under s. 409.311 (2). (5) REMOVAL OF ACCESSION AFTER DEFAULT. After default, subject to subch. VI, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole. (6) REIMBURSEMENT FOLLOWING REMOVAL. A secured party that removes an accession from other goods under sub. (5) shall promptly reimburse any holder of a security interest or other lien
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.335
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
on, or owner of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove an accession until the secured party gives adequate assurance for the performance of the obligation to reimburse. History: 2001 a. 10.
409.336 Commingled goods. (1) COMMINGLED GOODS. In this section, “commingled goods” means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass. (2) NO SECURITY INTEREST IN COMMINGLED GOODS AS SUCH. A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods. (3) ATTACHMENT OF SECURITY INTEREST TO PRODUCT OR MASS. If collateral becomes commingled goods, a security interest attaches to the product or mass. (4) PERFECTION OF SECURITY INTEREST. If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under sub. (3) is perfected. (5) PRIORITY OF SECURITY INTEREST. Except as otherwise provided in sub. (6), the other provisions of this subchapter determine the priority of a security interest that attaches to the product or mass under sub. (3). (6) CONFLICTING SECURITY INTERESTS IN PRODUCT OR MASS. If more than one security interest attaches to the product or mass under sub. (3), the following rules determine priority: (a) A security interest that is perfected under sub. (4) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods. (b) If more than one security interest is perfected under sub. (4), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods. History: 2001 a. 10.
409.337 Priority of security interests in goods covered by certificate of title. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate: (1) A buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and (2) The security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under s. 409.311 (2), after issuance of the certificate and without the conflicting secured party’s knowledge of the security interest. History: 2001 a. 10.
409.338 Priority of security interest or agricultural
24
lien perfected by filed financing statement providing certain incorrect information. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in s. 409.516 (2) (e) which is incorrect at the time the financing statement is filed: (1) The security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and (2) A purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral. History: 2001 a. 10; 2009 a. 322.
409.339 Priority subject to subordination. This chapter does not preclude subordination by agreement by a person entitled to priority. History: 2001 a. 10.
409.340 Effectiveness of right of recoupment or setoff against deposit account. (1) EXERCISE OF RECOUPMENT OR SETOFF. Except as otherwise provided in sub. (3), a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account. (2) RECOUPMENT OR SETOFF NOT AFFECTED BY SECURITY INTEREST. Except as otherwise provided in sub. (3), the application of this chapter to a security interest in a deposit account does not affect a right of recoupment or setoff of the secured party as to a deposit account maintained with the secured party. (3) WHEN SETOFF INEFFECTIVE. The exercise by a bank of a setoff against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under s. 409.104 (1) (c), if the setoff is based on a claim against the debtor. History: 2001 a. 10.
409.341 Bank’s rights and duties with respect to deposit account. Except as otherwise provided in s. 409.340 (3), and unless the bank otherwise agrees in an authenticated record, a bank’s rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by: (1) The creation, attachment, or perfection of a security interest in the deposit account; (2) The bank’s knowledge of the security interest; or (3) The bank’s receipt of instructions from the secured party. History: 2001 a. 10.
409.342 Bank’s right to refuse to enter into or disclose existence of control agreement. This chapter does not require a bank to enter into an agreement of the kind described in s. 409.104 (1) (b), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer. History: 2001 a. 10.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
25
Updated 23-24 Wis. Stats. SUBCHAPTER IV RIGHTS OF 3RD PARTIES
409.401 Alienability of debtor’s rights. (1) OTHER LAW GOVERNS ALIENABILITY; EXCEPTIONS. Except as otherwise provided in sub. (2) and ss. 409.406, 409.407, 409.408, and 409.409, whether a debtor’s rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter. (2) AGREEMENT DOES NOT PREVENT TRANSFER. An agreement between the debtor and secured party which prohibits a transfer of the debtor’s rights in collateral or makes the transfer a default does not prevent the transfer from taking effect. History: 2001 a. 10. If a security agreement does not explicitly provide that transfer of collateral constitutes default and the secured party is not entitled to immediate possession, sale of collateral is not a conversion. Production Credit Ass’n of Chippewa Falls v. Equity Coop Livestock Sales Ass’n, 82 Wis. 2d 5, 261 N.W.2d 127 (1978). A condition imposed by a secured party on authorization to sell collateral is ineffective unless performance of the condition is within the buyer’s control. Production Credit Ass’n of Madison v. Nowatzski, 90 Wis. 2d 344, 280 N.W.2d 118 (1979). NOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this chapter.
409.402 Secured party not obligated on contract of debtor or in tort. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions. History: 2001 a. 10.
409.403 Agreement not to assert defenses against assignee. (1) VALUE. In this section, “value” has the meaning provided in s. 403.303 (1). (2) AGREEMENT NOT TO ASSERT CLAIM OR DEFENSE. Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment: (a) For value; (b) In good faith; (c) Without notice of a claim of a property or possessory right to the property assigned; and (d) Without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under s. 403.305 (1). (3) WHEN SUB. (2) NOT APPLICABLE. Subsection (2) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under s. 403.305 (2). (4) OMISSION OF REQUIRED STATEMENT IN CONSUMER TRANSACTION. In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this chapter requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement: (a) The record has the same effect as if the record had included such a statement; and (b) The account debtor may assert against an assignee those claims and defenses that would have been available if the record had included such a statement. (5) RULE FOR INDIVIDUAL UNDER OTHER LAW. This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes. (6) OTHER LAW NOT DISPLACED. Except as otherwise provided in sub. (4), this section does not displace law other than this
UCC — SECURED TRANSACTIONS
409.405
chapter which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee. History: 2001 a. 10.
409.404 Rights acquired by assignee; claims and defenses against assignee. (1) ASSIGNEE’S RIGHTS SUBJECT TO TERMS, CLAIMS, AND DEFENSES; EXCEPTIONS. Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subs. (2) to (5), the rights of an assignee are subject to: (a) All terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and (b) Any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee. (2) ACCOUNT DEBTOR’S CLAIM REDUCES AMOUNT OWED TO ASSIGNEE. Subject to sub. (3) and except as otherwise provided in sub. (4), the claim of an account debtor against an assignor may be asserted against an assignee under sub. (1) only to reduce the amount the account debtor owes. (3) RULE FOR INDIVIDUAL UNDER OTHER LAW. This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes. (4) OMISSION OF REQUIRED STATEMENT IN CONSUMER TRANSACTION. In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this chapter requires that the record include a statement to the effect that the account debtor’s recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record had included such a statement. (5) INAPPLICABILITY TO HEALTH CARE INSURANCE RECEIVABLE. This section does not apply to an assignment of a health care insurance receivable. History: 2001 a. 10. There is no distinction between a party with a security interest in a debtor’s accounts receivable and a party who is an assignee of a debtor’s accounts receivable. Bank of Waunakee v. Rochester Cheese Sales, Inc., 906 F.2d 1185 (1990). NOTE: The above annotation cites to the pre-2001 Wis. Act 10 version of this chapter.
409.405 Modification of assigned contract. (1) EFFECT OF MODIFICATION ON ASSIGNEE. A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subs. (2) to (4). (2) APPLICABILITY OF SUB. (1). Subsection (1) applies to the extent that: (a) The right to payment or a part thereof under an assigned contract has not been fully earned by performance; or (b) The right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under s. 409.406 (1). (3) RULE FOR INDIVIDUAL UNDER OTHER LAW. This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.405
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
(4) INAPPLICABILITY TO HEALTH CARE INSURANCE RECEIVThis section does not apply to an assignment of a health care insurance receivable. ABLE.
History: 2001 a. 10.
409.406 Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective. (1) DISCHARGE OF ACCOUNT DEBTOR; EFFECT OF NOTIFICATION. Subject to subs. (2) to (9), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. (2) WHEN NOTIFICATION INEFFECTIVE. Subject to sub. (8), notification is ineffective under sub. (1): (a) If it does not reasonably identify the rights assigned; (b) To the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor’s duty to pay a person other than the seller and the limitation is effective under law other than this chapter; or (c) At the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if: 1. Only a portion of the account, chattel paper, or payment intangible has been assigned to that assignee; 2. A portion has been assigned to another assignee; or 3. The account debtor knows that the assignment to that assignee is limited. (3) PROOF OF ASSIGNMENT. Subject to sub. (8), if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under sub. (1). (4) TERM RESTRICTING ASSIGNMENT GENERALLY INEFFECTIVE. Except as otherwise provided in sub. (5) and ss. 409.407 and 411.303, and subject to sub. (8), a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it: (a) Prohibits, restricts, or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account, chattel paper, payment intangible, or promissory note; or (b) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account, chattel paper, payment intangible, or promissory note. (5) INAPPLICABILITY OF SUB. (4) TO CERTAIN SALES. Subsection (4) does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under s. 409.610 or an acceptance of collateral under s. 409.620. (6) LEGAL RESTRICTIONS ON ASSIGNMENT GENERALLY INEFFECTIVE. Except as otherwise provided in ss. 108.13, 409.407, 411.303, and 565.30 and subject to subs. (8) and (9), a rule of law, statute, or rule that prohibits, restricts, or requires the consent of a government, governmental body or official, or account debtor to the assignment or transfer of, or creation of a security interest
26
in, an account or chattel paper is ineffective to the extent that the rule of law, statute, or rule: (a) Prohibits, restricts, or requires the consent of the government, governmental body or official, or account debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account or chattel paper; or (b) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account or chattel paper. (7) SUBSECTION (2) (C) NOT WAIVABLE. Subject to sub. (8), an account debtor may not waive or vary its option under sub. (2) (c). (8) RULE FOR INDIVIDUAL UNDER OTHER LAW. This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes. (9) INAPPLICABILITY TO HEALTH-CARE-INSURANCE RECEIVABLE. This section does not apply to an assignment of a healthcare-insurance receivable. History: 2001 a. 10; 2011 a. 206.
409.407 Restrictions on creation or enforcement of security interest in leasehold interest or in leasor’s residual interest. (1) TERM RESTRICTING ASSIGNMENT GENERALLY INEFFECTIVE. Except as otherwise provided in sub. (2), a term in a lease agreement is ineffective to the extent that it: (a) Prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor’s residual interest in the goods; or (b) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease. (2) EFFECTIVENESS OF CERTAIN TERMS. Except as otherwise provided in s. 411.303 (7), a term described in sub. (1) (b) is effective to the extent that there is: (a) A transfer by the lessee of the lessee’s right of possession or use of the goods in violation of the term; or (b) A delegation of a material performance of either party to the lease contract in violation of the term. (3) SECURITY INTEREST NOT MATERIAL IMPAIRMENT. The creation, attachment, perfection, or enforcement of a security interest in the lessor’s interest under the lease contract or the lessor’s residual interest in the goods is not a transfer that materially impairs the lessee’s prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of s. 411.303 (4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor. History: 2001 a. 10.
409.408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective. (1) TERM RESTRICTING ASSIGNMENT GENERALLY INEFFECTIVE. Except as otherwise provided in sub. (2), a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a healthcare-insurance receivable or a general intangible, including a
May 22, 2026, are designated by NOTES. (Published 5-22-26)
27
Updated 23-24 Wis. Stats.
contract, permit, license, or franchise, and which term prohibits, restricts, or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term: (a) Would impair the creation, attachment, or perfection of a security interest; or (b) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible. (2) APPLICABILITY OF SUB. (1) TO SALES OF CERTAIN RIGHTS TO PAYMENT. Subsection (1) applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note, other than a sale pursuant to a disposition under s. 409.610 or an acceptance of collateral under s. 409.620. (3) LEGAL RESTRICTIONS ON ASSIGNMENT GENERALLY INEFFECTIVE. A rule of law, statute, or rule that prohibits, restricts, or requires the consent of a government, governmental body or official, person obligated on a promissory note or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable, or general intangible, including a contract, permit, license, or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute, or rule: (a) Would impair the creation, attachment, or perfection of a security interest; or (b) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible. (4) LIMITATION ON INEFFECTIVENESS UNDER SUBS. (1) AND (3). To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable, or general intangible or a rule of law, statute, or rule described in sub. (3) would be effective under law other than this chapter but is ineffective under sub. (1) or (3), the creation, attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible: (a) Is not enforceable against the person obligated on the promissory note or the account debtor; (b) Does not impose a duty or obligation on the person obligated on the promissory note or the account debtor; (c) Does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party; (d) Does not entitle the secured party to use or assign the debtor’s rights under the promissory note, health-care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible; (e) Does not entitle the secured party to use, assign, possess, or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and (f) Does not entitle the secured party to enforce the security
UCC — SECURED TRANSACTIONS
409.501
interest in the promissory note, health-care-insurance receivable, or general intangible. History: 2001 a. 10; 2011 a. 206.
409.409 Restrictions on assignment of letter-of-credit rights ineffective. (1) TERM OR LAW RESTRICTING ASSIGNMENT GENERALLY INEFFECTIVE. A term in a letter of credit or a rule of law, statute, rule, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary’s assignment of or creation of a security interest in a letter-of-credit right is ineffective to the extent that the term or rule of law, statute, rule, custom, or practice: (a) Would impair the creation, attachment, or perfection of a security interest in the letter-of-credit right; or (b) Provides that the assignment or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the letter-of-credit right. (2) LIMITATION ON INEFFECTIVENESS UNDER SUB. (1). To the extent that a term in a letter of credit is ineffective under sub. (1) but would be effective under law other than this chapter or a custom or practice applicable to the letter of credit, to the transfer of a right to draw or otherwise demand performance under the letter of credit, or to the assignment of a right to proceeds of the letter of credit, the creation, attachment, or perfection of a security interest in the letter-of-credit right: (a) Is not enforceable against the applicant, issuer, nominated person, or transferee beneficiary; (b) Imposes no duties or obligations on the applicant, issuer, nominated person, or transferee beneficiary; and (c) Does not require the applicant, issuer, nominated person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept payment or other performance from the secured party. History: 2001 a. 10.
SUBCHAPTER V FILING 409.501 Filing office. (1) FILING OFFICES. Except as otherwise provided in sub. (2), if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is: (a) The office designated for the filing or recording of a record of a mortgage on the related real property, if: 1. The collateral is as-extracted collateral or timber to be cut; or 2. The financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures; or (b) The office of the department of financial institutions or any office duly authorized by the department, in all other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing. (2) FILING OFFICE FOR TRANSMITTING UTILITIES. The office in which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is the office of the department of financial institutions. The financing statement also constitutes a fixture filing as to the collateral indicated in the financing statement which is or is to become fixtures. History: 2001 a. 10.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.502
UCC — SECURED TRANSACTIONS
409.502 Contents of financing statement; record of mortgage as financing statement; time of filing financing statement. (1) SUFFICIENCY OF FINANCING STATEMENT. Subject to sub. (2), a financing statement is sufficient only if it: (a) Provides the name of the debtor; (b) Provides the name of the secured party or a representative of the secured party; and (c) Indicates the collateral covered by the financing statement. (2) REAL-PROPERTY-RELATED FINANCING STATEMENTS. Except as otherwise provided in s. 409.501 (2), to be sufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture filing and covers goods that are or are to become fixtures, must satisfy sub. (1) and also: (a) Indicate that it covers this type of collateral; (b) Indicate that it is to be filed for record in the real property records; (c) Provide a description of the real property to which the collateral is related sufficient to give constructive notice of a mortgage under the law of this state if the description were contained in a record of the mortgage of the real property; and (d) If the debtor does not have an interest of record in the real property, provide the name of a record owner. (3) RECORD OF MORTGAGE AS FINANCING STATEMENT. A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut only if: (a) The record indicates the goods or accounts that it covers; (b) The goods are or are to become fixtures related to the real property described in the record or the collateral is related to the real property described in the record and is as-extracted collateral or timber to be cut; (c) The record satisfies the requirements for a financing statement in this section, but: 1. The record need not indicate that it is to be filed in the real property records; and 2. The record sufficiently provides the name of a debtor who is an individual if it provides the individual name of the debtor or the surname and first personal name of the debtor, even if the debtor is an individual to whom s. 409.503 (1) (dm) applies; and (d) The record is duly recorded. (4) FILING BEFORE SECURITY AGREEMENT OR ATTACHMENT. A financing statement may be filed before a security agreement is made or a security interest otherwise attaches. History: 2001 a. 10; 2011 a. 206. Financing Statements Under Revised UCC Article 9. Ireland. Wis. Law. Aug. 2001.
409.503 Name of debtor and secured party. (1) SUFFICIENCY OF DEBTOR’S NAME. A financing statement sufficiently provides the name of the debtor: (a) Except as otherwise provided in par. (c), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name that is stated to be the registered organization’s name on the public organic record most recently filed with or issued or enacted by the registered organization’s jurisdiction of organization which purports to state, amend, or restate the registered organization’s name; (b) Subject to sub. (6), if the collateral is being administered by the personal representative of a decedent, only if the financing statement provides, as the name of the debtor, the name of the decedent and, in a separate part of the financing statement, indicates that the collateral is being administered by a personal representative;
Updated 23-24 Wis. Stats.
28
(c) If the collateral is held in a trust that is not a registered organization, only if the financing statement: 1m. Provides, as the name of the debtor: a. If the organic record of the trust specifies a name for the trust, the name specified; or b. If the organic record of the trust does not specify a name for the trust, the name of the settlor or testator; and 2m. In a separate part of the financing statement: a. If the name is provided in accordance with subd. 1m. a., indicates that the collateral is held in a trust; or b. If the name is provided in accordance with subd. 1m. b., provides additional information sufficient to distinguish the trust from other trusts having one or more of the same settlors or the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates; (dm) Subject to sub. (7), if the debtor is an individual to whom this state has issued an operator’s license under ch. 343 or identification card under s. 343.50 that has not expired, only if the financing statement provides the name of the individual which is indicated on the operator’s license or identification card; (e) If the debtor is an individual to whom par. (dm) does not apply, only if the financing statement provides the individual name of the debtor or the surname and first personal name of the debtor; and (f) In other cases: 1. If the debtor has a name, only if the financing statement provides the organizational name of the debtor; and 2. If the debtor does not have a name, only if the financing statement provides the names of the partners, members, associates, or other persons comprising the debtor, in a manner that each name provided would be sufficient if the person named were the debtor. (2) ADDITIONAL DEBTOR-RELATED INFORMATION. A financing statement that provides the name of the debtor in accordance with sub. (1) is not rendered ineffective by the absence of: (a) A trade name or other name of the debtor; or (b) Unless required under sub. (1) (f) 2., names of partners, members, associates, or other persons comprising the debtor. (3) DEBTOR’S TRADE NAME INSUFFICIENT. A financing statement that provides only the debtor’s trade name does not sufficiently provide the name of the debtor. (4) REPRESENTATIVE CAPACITY. Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement. (5) MULTIPLE DEBTORS AND SECURED PARTIES. A financing statement may provide the name of more than one debtor and the name of more than one secured party. (6) NAME OF DECEDENT. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the “name of the decedent” under sub. (1) (b). (7) MULTIPLE LICENSES OR IDENTIFICATION CARDS. If this state has issued to an individual more than one operator’s license under ch. 343 or identification card under s. 343.50 of a kind described in sub. (1) (dm), the one that was issued most recently is the one to which sub. (1) (dm) refers. (8) DEFINITION. In this section, the “name of the settlor or testator” means: (a) If the settlor is a registered organization, the name that is stated to be the settlor’s name on the public organic record most recently filed with or issued or enacted by the settlor’s jurisdic-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
29
Updated 23-24 Wis. Stats.
tion of organization which purports to state, amend, or restate the settlor’s name; (b) In other cases, the name of the settlor or testator indicated in the trust’s organic record. History: 2001 a. 10; 2011 a. 206. A creditor’s financing statement became “seriously misleading” after the debtors’ name change and so was insufficient to perfect a security interest in property acquired more than four months after the name change. First Agri Services, Inc. v. Kahl, 129 Wis. 2d 464, 385 N.W.2d 191 (Ct. App. 1986). NOTE: The above annotation cites to the pre-2001 Wis. Act 10 version of this chapter.
409.504 Indication of collateral. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: (1) A description of the collateral pursuant to s. 409.108; or (2) An indication that the financing statement covers all assets or all personal property. History: 2001 a. 10.
409.505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions. (1) USE OF TERMS OTHER THAN DEBTOR AND SECURED PARTY. A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in s. 409.311 (1), using the terms “consignor”, “consignee”, “lessor”, “lessee”, “bailor”, “bailee”, “licensor”, “licensee”, “owner”, “registered owner”, “buyer”, “seller”, or words of similar import, instead of the terms “secured party” and “debtor”. (2) EFFECT OF FINANCING STATEMENT UNDER SUB. (1). This subchapter applies to the filing of a financing statement under sub. (1) and, as appropriate, to compliance that is equivalent to filing a financing statement under s. 409.311 (2), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, licensor, owner, or buyer which attaches to the collateral is perfected by the filing or compliance History: 2001 a. 10.
409.506 Effect of errors or omissions. (1) MINOR ERRORS AND OMISSIONS. A financing statement substantially satisfying the requirements of this subchapter is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (2) FINANCING STATEMENT SERIOUSLY MISLEADING. Except as otherwise provided in sub. (3), a financing statement that fails sufficiently to provide the name of the debtor in accordance with s. 409.503 (1) is seriously misleading. (3) FINANCING STATEMENT NOT SERIOUSLY MISLEADING. If a search of the records of the filing office under the debtor’s correct name, using the filing office’s standard search logic, if any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with s. 409.503 (1), the name provided does not make the financing statement seriously misleading. (4) DEBTOR’S CORRECT NAME. For purposes of s. 409.508 (2), the “debtor’s correct name” in sub. (3) means the correct name of the new debtor. History: 2001 a. 10. A creditor’s financing statement became “seriously misleading” after the debtors’ name change and so was insufficient to perfect a security interest in property acquired more than four months after the name change. First Agri Services, Inc. v. Kahl, 129 Wis. 2d 464, 385 N.W.2d 191 (Ct. App. 1986). A wrong statement of section, township, range, and county where crops were grown was not minor, and, without directing further inquiry, was insufficient. Whether a party was misled by the description was not part of the inquiry under s.
UCC — SECURED TRANSACTIONS
409.509
409.110 or 409.402. Smith & Spidahl Enterprises, Inc. v. Lee, 206 Wis. 2d 663, 557 N.W.2d 865 (Ct. App. 1996), 96-0882. NOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this chapter.
409.507 Effect of certain events on effectiveness of financing statement. (1) DISPOSITION. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition. (2) INFORMATION BECOMING SERIOUSLY MISLEADING. Except as otherwise provided in sub. (3) and s. 409.508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under s. 409.506. (3) CHANGE IN DEBTOR’S NAME. If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under s. 409.503 (1) so that the financing statement becomes seriously misleading under s. 409.506: (a) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within 4 months after, the filed financing statement becomes seriously misleading; and (b) The financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than 4 months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within 4 months after the financing statement became seriously misleading. History: 2001 a. 10; 2011 a. 206.
409.508 Effectiveness of financing statement if new debtor becomes bound by security agreement. (1) FINANCING STATEMENT NAMING ORIGINAL DEBTOR. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral. (2) FINANCING STATEMENT BECOMING SERIOUSLY MISLEADING. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under sub. (1) to be seriously misleading under s. 409.506: (a) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within 4 months after, the new debtor becomes bound under s. 409.203 (4); and (b) The financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than 4 months after the new debtor becomes bound under s. 409.203 (4) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time. (3) WHEN SECTION NOT APPLICABLE. This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under s. 409.507 (1). History: 2001 a. 10.
409.509 Persons entitled to file a record. (1) PERSON ENTITLED TO FILE RECORD. A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if: (a) The debtor authorizes the filing in an authenticated record or pursuant to sub. (2) or (3); or
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.509
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
(b) The person holds an agricultural lien that has become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien. (2) SECURITY AGREEMENT AS AUTHORIZATION. By authenticating or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering: (a) The collateral described in the security agreement; and (b) Property that becomes collateral under s. 409.315 (1) (b), whether or not the security agreement expressly covers proceeds. (3) ACQUISITION OF COLLATERAL AS AUTHORIZATION. By acquiring collateral in which a security interest or agricultural lien continues under s. 409.315 (1) (a), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under s. 409.315 (1) (b). (4) PERSON ENTITLED TO FILE CERTAIN AMENDMENTS. A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if: (a) The secured party of record authorizes the filing; or (b) The amendment is a termination statement for a financing statement as to which the secured party of record has failed to file or send a termination statement as required by s. 409.513 (1) or (3), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed. (5) MULTIPLE SECURED PARTIES OF RECORD. If there is more than one secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under sub. (4). History: 2001 a. 10.
409.510 Effectiveness of filed record. (1) FILED RECORD EFFECTIVE IF AUTHORIZED. A filed record is effective only to the extent that it was filed by a person that may file it under s. 409.509. (2) AUTHORIZATION BY ONE SECURED PARTY OF RECORD. A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record. (3) CONTINUATION STATEMENT NOT TIMELY FILED. A continuation statement that is not filed within the 6-month period prescribed by s. 409.515 (4) is ineffective. History: 2001 a. 10.
409.511 Secured party of record. (1) SECURED PARTY OF RECORD. A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under s. 409.514 (1), the assignee named in the initial financing statement is the secured party of record with respect to the financing statement. (2) AMENDMENT NAMING SECURED PARTY OF RECORD. If an amendment of a financing statement which provides the name of a person as a secured party or a representative of a secured party is filed, the person named in the amendment is a secured party of record. If an amendment is filed under s. 409.514 (2), the assignee named in the amendment is a secured party of record. (3) AMENDMENT DELETING SECURED PARTY OF RECORD. A person remains a secured party of record until the filing of an amendment of the financing statement which deletes the person. History: 2001 a. 10.
409.512 Amendment of financing statement.
(1)
30
AMENDMENT OF INFORMATION IN FINANCING STATEMENT. Subject to s. 409.509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to sub. (5), otherwise amend the information provided in, a financing statement by filing an amendment that: (a) Identifies, by its file number, the initial financing statement to which the amendment relates; and (b) If the amendment relates to an initial financing statement filed or recorded in a filing office described in s. 409.501 (1) (a), provides the date on which the initial financing statement was filed or recorded and the information specified in s. 409.502 (2). (2) PERIOD OF EFFECTIVENESS NOT AFFECTED. Except as otherwise provided in s. 409.515, the filing of an amendment does not extend the period of effectiveness of the financing statement. (3) EFFECTIVENESS OF AMENDMENT ADDING COLLATERAL. A financing statement that is amended by an amendment that adds collateral is effective as to the added collateral only from the date of the filing of the amendment. (4) EFFECTIVENESS OF AMENDMENT ADDING DEBTOR. A financing statement that is amended by an amendment that adds a debtor is effective as to the added debtor only from the date of the filing of the amendment. (5) CERTAIN AMENDMENTS INEFFECTIVE. An amendment is ineffective to the extent that it: (a) Purports to delete all debtors and fails to provide the name of a debtor to be covered by the financing statement; or (b) Purports to delete all secured parties of record and fails to provide the name of a new secured party of record. History: 2001 a. 10.
409.513 Termination statement. (1) CONSUMER GOODS. A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and: (a) There is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or (b) The debtor did not authorize the filing of the initial financing statement. (2) TIME FOR COMPLIANCE WITH SUB. (1). To comply with sub. (1), a secured party shall cause the secured party of record to file the termination statement: (a) Within one month after there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or (b) If earlier, within 20 days after the secured party receives an authenticated demand from a debtor. (3) OTHER COLLATERAL. In cases not governed by sub. (1), within 20 days after a secured party receives an authenticated demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if: (a) Except in the case of a financing statement covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; (b) The financing statement covers accounts or chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation; (c) The financing statement covers goods that were the subject
May 22, 2026, are designated by NOTES. (Published 5-22-26)
31
Updated 23-24 Wis. Stats.
of a consignment to the debtor but are not in the debtor’s possession; or (d) The debtor did not authorize the filing of the initial financing statement. (4) EFFECT OF FILING TERMINATION STATEMENT. Except as otherwise provided in s. 409.510, upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective. Except as otherwise provided in s. 409.510, for the purposes of ss. 409.519 (7), 409.522 (1), and 409.523 (3), the filing with the filing office of a termination statement relating to a financing statement that indicates that the debtor is a transmitting utility also causes the effectiveness of the financing statement to lapse. History: 2001 a. 10.
409.514 Assignment of powers of secured party of record. (1) ASSIGNMENT REFLECTED ON INITIAL FINANCING STATEMENT. Except as otherwise provided in sub. (3), an initial financing statement may reflect an assignment of all of the secured party’s power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address of the secured party. (2) ASSIGNMENT OF FILED FINANCING STATEMENT. Except as otherwise provided in sub. (3), a secured party of record may assign of record all or part of its power to authorize an amendment to a financing statement by filing in the filing office an amendment of the financing statement which: (a) Identifies, by its file number, the initial financing statement to which it relates; (b) Provides the name of the assignor; and (c) Provides the name and mailing address of the assignee. (3) ASSIGNMENT OF RECORD OF MORTGAGE. An assignment of record of a security interest in a fixture covered by a record of a mortgage which is effective as a financing statement filed as a fixture filing under s. 409.502 (3) may be made only by an assignment of record of the mortgage in the manner provided by law of this state other than chs. 401 to 411. History: 2001 a. 10.
409.515 Duration and effectiveness of financing statement; effect of lapsed financing statement. (1) FIVE-YEAR EFFECTIVENESS. Except as otherwise provided in subs. (2), (5), (6), and (7), a filed financing statement is effective for a period of 5 years after the date of filing. (2) PUBLIC-FINANCE OR MANUFACTURED-HOME TRANSACTION. Except as otherwise provided in subs. (5), (6), and (7), an initial financing statement filed in connection with a public-finance transaction or manufactured-home transaction is effective for a period of 30 years after the date of filing if it indicates that it is filed in connection with a public-finance transaction or manufactured-home transaction. (3) LAPSE AND CONTINUATION OF FINANCING STATEMENT. The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to sub. (4). Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value. (4) WHEN CONTINUATION STATEMENT MAY BE FILED. A continuation statement may be filed only within 6 months before the expiration of the 5-year period specified in sub. (1) or the 30year period specified in sub. (2), whichever is applicable.
UCC — SECURED TRANSACTIONS
409.516
(5) EFFECT OF FILING CONTINUATION STATEMENT. Except as otherwise provided in s. 409.510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of 5 years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the 5-year period, the financing statement lapses in the same manner as provided in sub. (3), unless, before the lapse, another continuation statement is filed pursuant to sub. (4). Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement. (6) TRANSMITTING UTILITY FINANCING STATEMENT. If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed. (7) RECORD OF MORTGAGE AS FINANCING STATEMENT. A record of a mortgage that is effective as a financing statement filed as a fixture filing under s. 409.502 (3) remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property. History: 2001 a. 10; 2011 a. 206. When a creditor fails to file a continuation statement, perfection lapses, and the creditor may assume the status of an unperfected secured creditor as against a prelapse purchaser. Hanley Implement Co. v. Riesterer Equipment, Inc., 150 Wis. 2d 161, 441 N.W.2d 304 (Ct. App. 1989). The filing of a second financing statement that does not refer to the original filing does not bring the creditor into substantial compliance with sub. (3). BostwickBraun Co. v. Owens, 634 F. Supp. 839 (1986). NOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this chapter.
409.516 What constitutes filing; effectiveness of filing. (1) WHAT CONSTITUTES FILING. Except as otherwise provided in sub. (2), communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. (2) REFUSAL TO ACCEPT RECORD; FILING DOES NOT OCCUR. Filing does not occur with respect to a record that a filing office refuses to accept because: (a) The record is not communicated by a method or medium of communication authorized by the filing office; (b) An amount equal to or greater than the applicable filing fee is not tendered; (c) The filing office is unable to index the record because: 1. In the case of an initial financing statement, the record does not provide a name for the debtor; 2. In the case of an amendment or information statement, the record: a. Does not identify the initial financing statement as required by s. 409.512 or 409.518, as applicable; or b. Identifies an initial financing statement whose effectiveness has lapsed under s. 409.515; 3. In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor’s surname; or 4. In the case of a record filed or recorded in the filing office described in s. 409.501 (1) (a), the record does not provide a sufficient description of the real property to which it relates; (d) In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record; (e) In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.516
UCC — SECURED TRANSACTIONS
provided in the financing statement to which the amendment relates, the record does not: 1. Provide a mailing address for the debtor; or 2. Indicate whether the name provided as the name of the debtor is the name of an individual or an organization; (f) In the case of an assignment reflected in an initial financing statement under s. 409.514 (1) or an amendment filed under s. 409.514 (2), the record does not provide a name and mailing address for the assignee; or (g) In the case of a continuation statement, the record is not filed within the 6-month period prescribed by s. 409.515 (4). (h) The record contains the social security number of an individual. (3) RULES APPLICABLE TO SUB. (2). For purposes of sub. (2): (a) A record does not provide information if the filing office is unable to read or decipher the information; and (b) A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by s. 409.512, 409.514, or 409.518, is an initial financing statement. (4) REFUSAL TO ACCEPT RECORD; RECORD EFFECTIVE AS FILED RECORD. A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in sub. (2), is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files. History: 2001 a. 10; 2009 a. 347; 2011 a. 206.
409.517 Effect of indexing errors. The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. History: 2001 a. 10.
409.518 Claim concerning inaccurate or wrongfully filed record. (1) STATEMENT WITH RESPECT TO RECORD INDEXED UNDER PERSON’S NAME. A person may file in the filing office an information statement with respect to a record indexed there under the person’s name if the person believes that the record is inaccurate or was wrongfully filed. (2) CONTENTS OF STATEMENT UNDER SUB. (1). An information statement under sub. (1) must: (a) Identify the record to which it relates by: 1. The file number assigned to the initial financing statement to which the record relates; and 2. If the information statement relates to a record filed or recorded in a filing office described in s. 409.501 (1) (a), the date on which the initial financing statement was filed or recorded and the information specified in s. 409.502 (2); (b) Indicate that it is an information statement; and (c) Provide the basis for the person’s belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person’s belief that the record was wrongfully filed. (3m) STATEMENT BY SECURED PARTY OF RECORD. A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under s. 409.509 (4). (4) CONTENTS OF STATEMENT UNDER SUB. (3M). An information statement under sub. (3m) must: (a) Identify the record to which it relates by:
Updated 23-24 Wis. Stats.
32
1. The file number assigned to the initial financing statement to which the record relates; and 2. If the information statement relates to a record filed or recorded in a filing office described in s. 409.501 (1) (a), the date that the initial financing statement was filed or recorded and the information specified in s. 409.502 (2); (b) Indicate that it is an information statement; and (c) Provide the basis for the person’s belief that the person that filed the record was not entitled to do so under s. 409.509 (4). (5) RECORD NOT AFFECTED BY INFORMATION STATEMENT. The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record. History: 2001 a. 10; 2011 a. 206.
409.519 Numbering, maintaining, and indexing records; communicating information provided in records. (1) FILING-OFFICE DUTIES. For each record filed in a filing office, the filing office shall: (a) Assign a unique number to the filed record; (b) Create a record that bears the number assigned to the filed record and the date and time of filing; (c) Maintain the filed record for public inspection; and (d) Index the filed record in accordance with subs. (3), (4), and (5). (2) FILE NUMBER. A file number assigned after January 1, 2002, must include a digit that: (a) Is mathematically derived from or related to the other digits of the file number; and (b) Aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error. (3) INDEXING: GENERAL. Except as otherwise provided in subs. (4) and (5), the filing office shall: (a) Index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and (b) Index a record that provides a name of a debtor which was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided. (4) INDEXING: REAL-PROPERTY-RELATED FINANCING STATEMENT. If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, it must be filed for record and the filing office shall index it: (a) Under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and (b) To the extent that the law of this state provides for indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described. (5) INDEXING: REAL-PROPERTY-RELATED ASSIGNMENT. If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under s. 409.514 (1) or an amendment filed under s. 409.514 (2): (a) Under the name of the assignor as grantor; and (b) To the extent that the law of this state provides for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
33
Updated 23-24 Wis. Stats.
(6) RETRIEVAL AND ASSOCIATION CAPABILITY. The filing office shall maintain a capability: (a) To retrieve a record by the name of the debtor and: 1. If the filing office is described in s. 409.501 (1) (a), by the file number assigned to the initial financing statement to which the record relates and the date on which the record was filed or recorded; or 2. If the filing office is described in s. 409.501 (1) (b), by the file number assigned to the initial financing statement to which the record relates; and (b) To associate and retrieve with one another an initial financing statement and each filed record relating to the initial financing statement. (7) REMOVAL OF DEBTOR’S NAME. The filing office may not remove a debtor’s name from the index until one year after the effectiveness of a financing statement naming the debtor lapses under s. 409.515 with respect to all secured parties of record. (8) TIMELINESS OF FILING-OFFICE PERFORMANCE. The filing office shall perform the acts required by subs. (1) to (5) at the time and in the manner prescribed by filing-office rule, but not later than: (a) Five business days after the filing office receives the record in question for acts performed before July 1, 2003; and (b) Two business days after the filing office receives the record in question for acts performed on or after July 1, 2003. (9) INAPPLICABILITY TO REAL-PROPERTY-RELATED FILING OFFICE. Subsection (2) does not apply to a filing office described in s. 409.501 (1) (a). History: 2001 a. 10; 2003 a. 206.
409.520 Acceptance and refusal to accept record; social security numbers. (1) MANDATORY REFUSAL TO ACCEPT RECORD. A filing office shall refuse to accept a record for filing for a reason set forth in s. 409.516 (2) and may refuse to accept a record for filing only for a reason set forth in s. 409.516 (2). (1m) SOCIAL SECURITY NUMBERS. (a) A filing office may not file and index a record under this subchapter if the record contains the social security number of an individual. If a filing office is presented with a record that contains an individual’s social security number, the filing office may, prior to filing and indexing the record, remove or obscure characters from the social security number such that the social security number is not discernable on the record. (b) If a filing office is presented with a record for filing and indexing that contains an individual’s social security number, and
UCC — SECURED TRANSACTIONS
409.521
if the filing office does not discover that the record contains the individual’s social security number until after the record is filed and indexed, the filing office is not liable for the record drafter’s placement of the individual’s social security number on the record and the filing office may remove or obscure characters from the social security number such that the social security number is not discernable on the record. (c) If a filing office files and indexes a record that contains the complete social security number of an individual, the record drafter is liable to the individual whose social security number appears in the filed and indexed record for any actual damages resulting from the record being filed and indexed. (2) COMMUNICATION CONCERNING REFUSAL. If a filing office refuses to accept a record for filing, the filing office shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted the record. The communication must be made at the time and in the manner prescribed by filing-office rule but, in no event more than: (a) Five business days after the filing office receives the record for records received before July 1, 2003; and (b) Two business days after the filing office receives the record for records received on or after July 1, 2003. (3) WHEN FILED FINANCING STATEMENT EFFECTIVE. A filed financing statement satisfying s. 409.502 (1) and (2) is effective, even if the filing office is required to refuse to accept it for filing under sub. (1). However, s. 409.338 applies to a filed financing statement providing information described in s. 409.516 (2) (e) which is incorrect at the time the financing statement is filed. (4) SEPARATE APPLICATION TO MULTIPLE DEBTORS. If a record communicated to a filing office provides information that relates to more than one debtor, this subchapter applies as to each debtor separately. History: 2001 a. 10; 2009 a. 347.
409.521 Uniform form of written financing statement and amendment. (1) TAX IDENTIFICATION NUMBER. In publishing instructions for the forms specified in subs. (2) and (3), the department of financial institutions shall include a statement, where applicable, that inclusion of an employer identification number is not required under Wisconsin law. (2) INITIAL FINANCING STATEMENT FORM. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in s. 409.516 (2):
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.521
UCC — SECURED TRANSACTIONS
Updated 23-24 Wis. Stats.
34
May 22, 2026, are designated by NOTES. (Published 5-22-26)
35
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
409.521
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.521
UCC — SECURED TRANSACTIONS
Updated 23-24 Wis. Stats.
36
(3) AMENDMENT FORM. A filing office that accepts written records may not refuse to accept a written record in the following form and format except for a reason set forth in s. 409.516 (2):
May 22, 2026, are designated by NOTES. (Published 5-22-26)
37
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
409.521
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.521
UCC — SECURED TRANSACTIONS
Updated 23-24 Wis. Stats.
38
May 22, 2026, are designated by NOTES. (Published 5-22-26)
39
Updated 23-24 Wis. Stats.
History: 2001 a. 10; 2003 a. 120; 2009 a. 347; 2011 a. 206.
409.522 Maintenance and destruction of records. (1) POSTLAPSE MAINTENANCE AND RETRIEVAL OF INFORMATION. The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under s. 409.515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and: (a) If the record was filed or recorded in the filing office described in s. 409.501 (1) (a), by using the file number assigned to the initial financing statement to which the record relates and the date on which the record was filed or recorded; or (b) If the record was filed in the filing office described in s. 409.501 (1) (b), by using the file number assigned to the initial financing statement to which the record relates. (2) DESTRUCTION OF WRITTEN RECORDS. Except to the extent that a statute governing disposition of public records provides otherwise, the filing office may destroy immediately any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with sub. (1). History: 2001 a. 10.
409.523 Information from filing office; sale or license of records. (1) ACKNOWLEDGMENT OF FILING WRITTEN RECORD. If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to s. 409.519 (1) (a) and the date and time of the filing of the record. However, if the person furnishes a copy of the record to the filing office, the filing office may instead: (a) Note upon the copy the number assigned to the record pursuant to s. 409.519 (1) (a) and the date and time of the filing of the record; and (b) Send the copy to the person. (2) ACKNOWLEDGMENT OF FILING OTHER RECORD. If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides: (a) The information in the record; (b) The number assigned to the record pursuant to s. 409.519 (1) (a); and (c) The date and time of the filing of the record. (3) COMMUNICATION OF REQUESTED INFORMATION. The filing office described in s. 409.501 (1) (b) shall communicate or otherwise make available in a record the following information to any person that requests it: (a) Whether there is on file on a date and time specified by the filing office, but not a date earlier than 3 business days before the filing office receives the request, any financing statement that: 1. Designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request; 2. Has not lapsed under s. 409.515 with respect to all secured parties of record; or 3. If the request so states, has lapsed under s. 409.515 and a record of which is maintained by the filing office under s. 409.522 (1); (b) The date and time of filing of each financing statement; and (c) The information provided in each financing statement. (4) MEDIUM FOR COMMUNICATING INFORMATION. In complying with its duty under sub. (3), the filing office may communicate information in any medium. However, if requested, the fil-
UCC — SECURED TRANSACTIONS
409.525
ing office shall communicate information by issuing a record that can be admitted into evidence in the courts of this state without extrinsic evidence of its authenticity. (5) TIMELINESS OF FILING-OFFICE PERFORMANCE. The filing office shall perform the acts required by subs. (1) to (4) at the time and in the manner prescribed by filing-office rule, but not later than: (a) Five business days after the filing office receives the request for requests received before July 1, 2003; and (b) Two business days after the filing office receives the request for requests received on or after July 1, 2003. (6) PUBLIC AVAILABILITY OF RECORDS. At least weekly, the department of financial institutions shall offer to sell or license to the public on a nonexclusive basis, in bulk, copies of all records filed in it under this subchapter, in every medium from time to time available to the department of financial institutions. (7) LIABILITY OF FILING OFFICER. No filing officer nor any of the filing officer’s employees or agents shall be subject to personal liability by reason of any error or omission in the performance of any duty under this chapter except in case of misconduct as defined in s. 946.12. History: 2001 a. 10; 2003 a. 206.
409.524 Delay by filing office. Delay by the filing office beyond a time limit prescribed by this subchapter is excused if: (1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the filing office; and (2) The filing office exercises reasonable diligence under the circumstances. History: 2001 a. 10.
409.525 Fees. (1) INITIAL FINANCING STATEMENT OR OTHER RECORD. Except as otherwise provided in this section, the fee for filing and indexing a record under this subchapter and the portion of the fee that an office duly authorized by the department under s. 409.501 (1) (b) may retain shall be prescribed by filing-office rule. (1m) NO FEE FOR FILING TERMINATION STATEMENT. There is no fee for the filing of a termination statement. (2) BASIS FOR RULE. The rule under sub. (1) must set the fees for filing and indexing a record under this subchapter on the following basis: (a) If the record presented for filing is communicated to the filing office in writing and consists of more than 2 pages, the fee for filing and indexing the record must be at least twice the amount of the fee for a record communicated in writing that consists of 1 or 2 pages; and (b) If the record is communicated by another medium authorized by filing-office rule, the fee for filing and indexing the record must be no more than 50 percent of the amount of the fee for a record communicated in writing that consists of 1 or 2 pages. (3) NUMBER OF NAMES. The number of names required to be indexed does not affect the amount of the fee under this section. (4) RESPONSE TO INFORMATION REQUEST. Except as otherwise provided in this section, the fee for responding to a request for information from the filing office, including for communicating whether there is on file any financing statement naming a particular debtor, and the portion of the fee that an office duly authorized by the department under s. 409.501 (1) (b) may retain shall be prescribed by filing-office rule. The fee for responding to a request communicated in writing must be not less than twice the amount of the fee for responding to a request communicated by
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.525
UCC — SECURED TRANSACTIONS
another medium authorized by filing-office rule. This subsection does not require that a fee be charged for remote access searching of the filing-office data base. The rule promulgated pursuant to this subsection need not specify a fee for remote access searching of the filing-office data base. (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. History: 2001 a. 10.
409.526 Filing-office rules. (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: (a) Consistent with this chapter; and (b) Promulgated in accordance with ch. 227. (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: (a) Consult with filing offices in other jurisdictions that enact substantially this subchapter; (b) Consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and (c) Take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this subchapter. History: 2001 a. 10. Cross-reference: See also DFI-CCS, Wis. adm. code.
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: (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 (2) HARMONIZATION OF RULES: MODEL RULES. The filingoffice 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. History: 2001 a. 10.
409.528 Statewide lien system. The department shall establish and maintain a statewide lien system under this subchapter. History: 2001 a. 10; 2003 a. 206.
SUBCHAPTER VI DEFAULT 409.601 Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, pay-
Updated 23-24 Wis. Stats.
40
ment intangibles, or promissory notes. (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: (a) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and (b) If the collateral is documents, may proceed either as to the documents or as to the goods they cover. (2) RIGHTS AND DUTIES OF SECURED PARTY IN POSSESSION OR CONTROL. A secured party in possession of collateral or control of collateral under s. 407.106, 409.104, 409.105, 409.106, or 409.107 has the rights and duties provided in s. 409.207. (3) RIGHTS CUMULATIVE; SIMULTANEOUS EXERCISE. The rights under subs. (1) and (2) are cumulative and may be exercised simultaneously. (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. (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: (a) The date of perfection of the security interest or agricultural lien in the collateral; (b) The date of filing a financing statement covering the collateral; or (c) Any date specified in a statute under which the agricultural lien was created. (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. (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. History: 2001 a. 10; 2009 a. 322.
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: (1) Section 409.207 (2) (d) 3., which deals with use and operation of the collateral by the secured party; (2) Section 409.210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account; (3) Section 409.607 (3), which deals with collection and enforcement of collateral; (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; (5) Sections 409.608 (1) and 409.615 (4) to the extent that they require accounting for or payment of surplus proceeds of collateral; (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;
May 22, 2026, are designated by NOTES. (Published 5-22-26)
41
Updated 23-24 Wis. Stats.
(7) Sections 409.610 (2), 409.611, 409.613, and 409.614, which deal with disposition of collateral; (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; (9) Section 409.616, which deals with explanation of the calculation of a surplus or deficiency; (10) Sections 409.620, 409.621, and 409.622, which deal with acceptance of collateral in satisfaction of obligation; (11) Section 409.623, which deals with redemption of collateral; (12) Section 409.624, which deals with permissible waivers; and (13) Sections 409.625 and 409.626, which deal with the secured party’s liability for failure to comply with this chapter. History: 2001 a. 10. The plain language of s. 401.102 (3) states, first, an exception that parties may vary the effect of the Uniform Commercial Code provisions by agreement and, second, an exception to the first 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, 081709.
409.603 Agreement on standards concerning rights and duties. (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. (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. History: 2001 a. 10.
409.604 Procedure if security agreement covers real property or fixtures. (1) ENFORCEMENT: PERSONAL AND REAL PROPERTY. If a security agreement covers both personal and real property, a secured party may proceed: (a) Under this subchapter as to the personal property without prejudicing any rights with respect to the real property; or (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. (2) ENFORCEMENT: FIXTURES. Subject to sub. (3), if a security agreement covers goods that are or become fixtures, a secured party may proceed: (a) Under this subchapter; or (b) In accordance with the rights with respect to real property, in which case the other provisions of this subchapter do not apply. (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. (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. History: 2001 a. 10.
UCC — SECURED TRANSACTIONS
409.607
409.605 Unknown debtor or secondary obligor. A secured party does not owe a duty based on its status as secured party: (1) To a person that is a debtor or obligor, unless the secured party knows: (a) That the person is a debtor or obligor; (b) The identity of the person; and (c) How to communicate with the person; or (2) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: (a) That the person is a debtor; and (b) The identity of the person. History: 2001 a. 10.
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. History: 2001 a. 10.
409.607 Collection and enforcement by secured party. (1) COLLECTION AND ENFORCEMENT GENERALLY. If so agreed, and in any event after default, a secured party: (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; (b) May take any proceeds to which the secured party is entitled under s. 409.315; (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; (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 (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. (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: (a) A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and (b) The secured party’s sworn affidavit in recordable form stating that: 1. A default has occurred with respect to the obligation secured by the mortgage; and 2. The secured party is entitled to enforce the mortgage nonjudicially. (3) COMMERCIALLY REASONABLE COLLECTION AND ENFORCEMENT. A secured party shall proceed in a commercially reasonable manner if the secured party: (a) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and (b) Is entitled to charge back uncollected collateral or other-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.607
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
wise to full or limited recourse against the debtor or a secondary obligor. (4) EXPENSES OF COLLECTION AND ENFORCEMENT. A secured party may deduct from the collections made pursuant to sub. (3) reasonable expenses of collection and enforcement, including reasonable attorney fees and legal expenses incurred by the secured party. (5) DUTIES TO SECURED PARTY NOT AFFECTED. This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party. History: 2001 a. 10; 2011 a. 206.
409.608 Application of proceeds of collection or enforcement; liability for deficiency and right to surplus. (1) APPLICATION OF PROCEEDS, SURPLUS, AND DEFICIENCY IF OBLIGATION SECURED. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (a) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under s. 409.607 in the following order to: 1. The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney fees and legal expenses incurred by the secured party; 2. The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and 3. The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed. (b) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under par. (a) 3. (c) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under s. 409.607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner. (d) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency. (2) NO SURPLUS OR DEFICIENCY IN SALES OF CERTAIN RIGHTS TO PAYMENT. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency. History: 2001 a. 10. Attorney fees under sub. (1) (a) relates to attorney fees incurred in liquidating collateral, not in a suit on a promissory note. Kohlenberg v. American Plumbing Supply Co., 82 Wis. 2d 384, 263 N.W.2d 496 (1978). NOTE: The above annotation cites to the pre-2001 Wis. Act 10 version of this chapter.
409.609 Secured party’s right to take possession after default. (1) POSSESSION; RENDERING EQUIPMENT UNUSABLE; DISPOSITION ON DEBTOR’S PREMISES. After default, a secured party: (a) May take possession of the collateral; and (b) Without removal, may render equipment unusable and dispose of collateral on a debtor’s premises under s. 409.610.
42
(2) JUDICIAL AND NONJUDICIAL PROCESS. A secured party may proceed under sub. (1): (a) Pursuant to judicial process; or (b) Without judicial process, if it proceeds without breach of the peace. (3) ASSEMBLY OF COLLATERAL. If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties. History: 2001 a. 10.
409.610 Disposition of collateral after default. (1) DISPOSITION AFTER DEFAULT. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. (2) COMMERCIALLY REASONABLE DISPOSITION. Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms. (3) PURCHASE BY SECURED PARTY. A secured party may purchase collateral: (a) At a public disposition; or (b) At a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations. (4) WARRANTIES ON DISPOSITION. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract. (5) DISCLAIMER OF WARRANTIES. A secured party may disclaim or modify warranties under sub. (4): (a) In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or (b) By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties. (6) RECORD SUFFICIENT TO DISCLAIM WARRANTIES. A record is sufficient to disclaim warranties under sub. (5) if it indicates “There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition” or uses words of similar import. History: 2001 a. 10. The burden of proving that a private sale is commercially reasonable is on the seller. Proof that the sale is made at the wholesale price does not establish reasonableness. Vic Hansen & Sons, Inc. v. Crowley, 57 Wis. 2d 106, 203 N.W.2d 728 (1973). The primary focus of commercial reasonableness is not the proceeds from a sale, but procedures employed for the sale. Appleton State Bank v. Van Dyke Ford, Inc., 90 Wis. 2d 200, 279 N.W.2d 443 (1979). The conduct of a debtor may be taken into account in determining the commercial reasonableness of a sale. First National Bank of Kenosha v. Hinrichs, 90 Wis. 2d 214, 279 N.W.2d 449 (1979). A secured creditor can retain a debtor’s collateral while seeking an independent action for a money judgment. Dorman v. Morris, 185 Wis. 2d 845, 519 N.W.2d 685 (Ct. App. 1994). NOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this chapter.
409.611 Notification before disposition of collateral. (1) NOTIFICATION DATE. In this section, “notification date” means the earlier of the date on which: (a) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
May 22, 2026, are designated by NOTES. (Published 5-22-26)
43
Updated 23-24 Wis. Stats.
(b) The debtor and any secondary obligor waive the right to notification. (2) NOTIFICATION OF DISPOSITION REQUIRED. Except as otherwise provided in sub. (4), a secured party that disposes of collateral under s. 409.610 shall send to the persons specified in sub. (3) a reasonable, authenticated notification of disposition. (3) PERSONS TO BE NOTIFIED. To comply with sub. (2), the secured party shall send an authenticated notification of disposition to: (a) The debtor; (b) Any secondary obligor; and (c) If the collateral is other than consumer goods: 1. Any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral; 2. Any other secured party or lienholder that, 10 days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that: a. Identified the collateral; b. Was indexed under the debtor’s name as of that date; and c. Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and 3. Any other secured party that, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in s. 409.311 (1). (4) SUBSECTION (2) INAPPLICABLE: PERISHABLE COLLATERAL; RECOGNIZED MARKET. Subsection (2) does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. (5) COMPLIANCE WITH SUB. (3) (C) 2. A secured party complies with the requirement for notification prescribed by sub. (3) (c) 2. if: (a) Not later than 20 days or earlier than 30 days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor’s name in the office indicated in sub. (3) (c) 2.; and (b) Before the notification date, the secured party: 1. Did not receive a response to the request for information; or 2. Received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral. History: 2001 a. 10.
409.612 Timeliness of notification before disposition of collateral. (1) REASONABLE TIME IS QUESTION OF FACT. Except as otherwise provided in sub. (2), whether a notification is sent within a reasonable time is a question of fact. (2) TEN-DAY PERIOD SUFFICIENT IN NONCONSUMER TRANSACTION. In a transaction other than a consumer transaction, a notification of disposition sent after default and 10 days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition. History: 2001 a. 10.
409.613 Contents and form of notification before disposition of collateral: general. Except in a consumer-goods transaction, the following rules apply: (1) NOTIFICATION: WHEN SUFFICIENT. The contents of a notification of disposition are sufficient if the notification: (a) Describes the debtor and the secured party;
UCC — SECURED TRANSACTIONS
409.614
(b) Describes the collateral that is the subject of the intended disposition; (c) States the method of intended disposition; (d) States that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and (e) States the time and place of a public disposition or the time after which any other disposition is to be made. (2) NOTIFICATION: QUESTION OF FACT. Whether the contents of a notification that lacks any of the information specified in sub. (1) are nevertheless sufficient is a question of fact. (3) NOTIFICATION: OTHER INFORMATION OR MINOR ERRORS. The contents of a notification providing substantially the information specified in sub. (1) are sufficient, even if the notification includes: (a) Information not specified by sub. (1); or (b) Minor errors that are not seriously misleading. (4) SUBSTANTIAL COMPLIANCE. A particular phrasing of the notification is not required. (5) NOTIFICATION: FORM SUFFICIENT. The following form of notification and the form appearing in s. 409.614 (3), when completed, each provide sufficient information: NOTIFICATION OF DISPOSITION OF COLLATERAL To: .... [Name of debtor, obligor, or other person to which the notification is sent] From: .... [Name, address, and telephone number of secured party] Name of Debtor(s): .... [Include only if debtor(s) are not an addressee] [For a public disposition]: We will sell [or lease or license, as applicable] the .... [describe collateral] [to the highest qualified bidder] in public as follows: Day and Date: .... Time: .... Place: .... [For a private disposition]: We will sell [or lease or license, as applicable] the .... [describe collateral] privately sometime after .... [day and date]. You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $ .... ]. You may request an accounting by calling us at .... [telephone number]. History: 2001 a. 10.
409.614 Contents and form of notification before disposition of collateral: consumer-goods transaction. In a consumer-goods transaction, the following rules apply: (1) NOTIFICATION OF DISPOSITION. A notification of disposition must provide the following information: (a) The information specified in s. 409.613 (1); (b) A description of any liability for a deficiency of the person to which the notification is sent; (c) A telephone number from which the amount that must be paid to the secured party to redeem the collateral under s. 409.623 is available; and (d) A telephone number or mailing address from which additional information concerning the disposition and the obligation secured is available. (2) SUBSTANTIAL COMPLIANCE. A particular phrasing of the notification is not required. (3) NOTIFICATION: FORM SUFFICIENT. The following form of notification, when completed, provides sufficient information:
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.614
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
[Name and address of secured party] .... [Date] .... NOTICE OF OUR PLAN TO SELL PROPERTY .... [Name and address of any obligor who is also a debtor] Subject: .... [Identification of transaction] We have your .... [describe collateral], because you broke promises in our agreement. [For a public disposition]: We will sell .... [describe collateral] at public sale. A sale could include a lease or license. The sale will be held as follows: Date: .... Time: .... Place: .... You may attend the sale and bring bidders if you want. [For a private disposition]: We will sell .... [describe collateral] at private sale sometime after .... [date]. A sale could include a lease or license. The money that we get from the sale (after paying our costs) will reduce the amount you owe. If we get less money than you owe, you .... [will or will not, as applicable] still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else. You can get the property back at any time before we sell it by paying us the full amount you owe (not just the past-due payments), including our expenses. To learn the exact amount you must pay, call us at .... [telephone number]. If you want us to explain to you in writing how we have figured the amount that you owe us, you may call us at .... [telephone number] [or write us at .... [secured party’s address]] and request a written explanation. [We will charge you $.... for the explanation if we sent you another written explanation of the amount you owe us within the last 6 months.] If you need more information about the sale, call us at .... [telephone number]] [or write us at .... [secured party’s address]]. We are sending this notice to the following other people who have an interest in .... [describe collateral] or who owe money under your agreement: .... [Names of all other debtors and obligors, if any] [End of Form] (4) NOTIFICATION: OTHER INFORMATION. A notification in the form of sub. (3) is sufficient, even if additional information appears at the end of the form. (5) NOTIFICATION: ERRORS. A notification in the form of sub. (3) is sufficient, even if it includes errors in information not required by sub. (1), unless the error is misleading with respect to rights arising under this chapter. (6) NOTIFICATION: NOT IN FORM. If a notification under this section is not in the form of sub. (3), law other than this chapter determines the effect of including information not required by sub. (1). History: 2001 a. 10.
409.615 Application of proceeds of disposition; liability for deficiency and right to surplus. (1) APPLICATION OF PROCEEDS. A secured party shall apply or pay over for application the cash proceeds of disposition under s. 409.610 in the following order to: (a) The reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing of, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney fees and legal expenses incurred by the secured party; (b) The satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;
44
(c) The satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if: 1. The secured party receives from the holder of the subordinate security interest or other lien an authenticated demand for proceeds before distribution of the proceeds is completed; and 2. In a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and (d) A secured party that is a consignor of the collateral if the secured party receives from the consignor an authenticated demand for proceeds before distribution of the proceeds is completed. (2) PROOF OF SUBORDINATE INTEREST. If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder does so, the secured party need not comply with the holder’s demand under sub. (1) (c). (3) APPLICATION OF NONCASH PROCEEDS. A secured party need not apply or pay over for application noncash proceeds of disposition under s. 409.610 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner. (4) SURPLUS OR DEFICIENCY IF OBLIGATION SECURED. If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by sub. (1) and permitted by sub. (3): (a) Unless sub. (1) (d) requires the secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and (b) The obligor is liable for any deficiency. (5) NO SURPLUS OR DEFICIENCY IN SALES OF CERTAIN RIGHTS TO PAYMENT. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes: (a) The debtor is not entitled to any surplus; and (b) The obligor is not liable for any deficiency. (6) CALCULATION OF SURPLUS OR DEFICIENCY IN DISPOSITION TO PERSON RELATED TO SECURED PARTY. The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with this subchapter to a transferee other than the secured party, a person related to the secured party or a secondary obligor if: (a) The transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and (b) The amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought. (7) CASH PROCEEDS RECEIVED BY JUNIOR SECURED PARTY. A secured party that receives cash proceeds of a disposition in good faith and without knowledge that the receipt violates the rights of the holder of a security interest or other lien that is not subordinate to the security interest or agricultural lien under which the disposition is made: (a) Takes the cash proceeds free of the security interest or other lien; (b) Is not obligated to apply the proceeds of the disposition to the satisfaction of obligations secured by the security interest or other lien; and (c) Is not obligated to account to or pay the holder of the security interest or other lien for any surplus. History: 2001 a. 10.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
45
Updated 23-24 Wis. Stats.
409.616 Explanation of calculation of surplus or deficiency. (1) DEFINITIONS. In this section: (a) “Explanation” means a writing that: 1. States the amount of the surplus or deficiency; 2. Provides an explanation in accordance with sub. (3) of how the secured party calculated the surplus or deficiency; 3. States, if applicable, that future debits, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency; and 4. Provides a telephone number or mailing address from which additional information concerning the transaction is available. (b) “Request” means a record: 1. Authenticated by a debtor or consumer obligor; 2. Requesting that the recipient provide an explanation; and 3. Sent after disposition of the collateral under s. 409.610. (2) EXPLANATION OF CALCULATION. In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under s. 409.615, the secured party shall: (a) Send an explanation to the debtor or consumer obligor, as applicable, after the disposition and: 1. Before or when the secured party accounts to the debtor and pays any surplus or first makes written demand on the consumer obligor after the disposition for payment of the deficiency; and 2. Within 14 days after receipt of a request; or (b) In the case of a consumer obligor who is liable for a deficiency, within 14 days after receipt of a request, send to the consumer obligor a record waiving the secured party’s right to a deficiency. (3) REQUIRED INFORMATION. To comply with sub. (1) (a) 2., a writing must provide the following information in the following order: (a) The aggregate amount of obligations secured by the security interest under which the disposition was made, and, if the amount reflects a rebate of unearned interest or credit service charge, an indication of that fact, calculated as of a specified date: 1. If the secured party takes or receives possession of the collateral after default, not more than 35 days before the secured party takes or receives possession; or 2. If the secured party takes or receives possession of the collateral before default or does not take possession of the collateral, not more than 35 days before the disposition; (b) The amount of proceeds of the disposition; (c) The aggregate amount of the obligations after deducting the amount of proceeds; (d) The amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorney fees secured by the collateral which are known to the secured party and relate to the current disposition; (e) The amount, in the aggregate or by type, and types of credits, including rebates of interest or credit service charges, to which the obligor is known to be entitled and which are not reflected in the amount in par. (a); and (f) The amount of the surplus or deficiency. (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. (5) CHARGES FOR RESPONSES. A debtor or consumer obligor is entitled without charge to one response to a request under this
UCC — SECURED TRANSACTIONS
409.619
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. History: 2001 a. 10.
409.617 Rights of transferee of collateral. (1) EFFECTS OF DISPOSITION. A secured party’s disposition of collateral after default: (a) Transfers to a transferee for value all of the debtor’s rights in the collateral; (b) Discharges the security interest under which the disposition is made; and (c) Discharges any subordinate security interest or other subordinate lien. (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. (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: (a) The debtor’s rights in the collateral; (b) The security interest or agricultural lien under which the disposition is made; and (c) Any other security interest or other lien. History: 2001 a. 10; 2003 a. 63.
409.618 Rights and duties of certain secondary obligors. (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: (a) Receives an assignment of a secured obligation from the secured party; (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 (c) Is subrogated to the rights of a secured party with respect to collateral. (2) EFFECT OF ASSIGNMENT, TRANSFER, OR SUBROGATION. An assignment, transfer, or subrogation described in sub. (1): (a) Is not a disposition of collateral under s. 409.610; and (b) Relieves the secured party of further duties under this chapter. History: 2001 a. 10.
409.619 Transfer of record or legal title. (1) TRANSFER STATEMENT. In this section, “transfer statement” means a record authenticated by a secured party stating: (a) That the debtor has defaulted in connection with an obligation secured by specified collateral; (b) That the secured party has exercised its postdefault remedies with respect to the collateral; (c) That, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and (d) The name and mailing address of the secured party, debtor, and transferee. (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: (a) Accept the transfer statement;
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.619
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
(b) Promptly amend its records to reflect the transfer; and (c) If applicable, issue a new appropriate certificate of title in the name of the transferee. (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. History: 2001 a. 10.
409.620 Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral. (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: (a) The debtor consents to the acceptance under sub. (3); (b) The secured party does not receive, within the time set forth in sub. (4), a notification of objection to the proposal authenticated by: 1. A person to which the secured party was required to send a proposal under s. 409.621; or 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; (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 (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. (2) PURPORTED ACCEPTANCE INEFFECTIVE. A purported or apparent acceptance of collateral under this section is ineffective unless: (a) The secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and (b) The conditions of sub. (1) are met. (3) DEBTOR’S CONSENT. For purposes of this section: (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 (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: 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; 2. In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and 3. Does not receive a notification of objection authenticated by the debtor within 20 days after the proposal is sent. (4) EFFECTIVENESS OF NOTIFICATION. To be effective under sub. (1) (b), a notification of objection must be received by the secured party: (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 (b) In other cases: 1. Within 20 days after the last notification was sent pursuant to s. 409.621; or 2. If a notification was not sent, before the debtor consents to the acceptance under sub. (3).
46
(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: (a) Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or (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. (6) COMPLIANCE WITH MANDATORY DISPOSITION REQUIREMENT. To comply with sub. (5), the secured party shall dispose of the collateral: (a) Within 90 days after taking possession; or (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. (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. History: 2001 a. 10.
409.621 Notification of proposal to accept collateral. (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: (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; (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: 1. Identified the collateral; 2. Was indexed under the debtor’s name as of that date; and 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 (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). (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). History: 2001 a. 10.
409.622 Effect of acceptance of collateral. (1) EFFECT OF ACCEPTANCE. A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures: (a) Discharges the obligation to the extent consented to by the debtor; (b) Transfers to the secured party all of a debtor’s rights in the collateral; (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 (d) Terminates any other subordinate interest. (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. History: 2001 a. 10.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
47
Updated 23-24 Wis. Stats.
409.623 Right to redeem collateral. (1) PERSONS THAT MAY REDEEM. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (2) REQUIREMENTS FOR REDEMPTION. To redeem collateral, a person shall tender: (a) Fulfillment of all obligations secured by the collateral; and (b) The reasonable expenses and attorney fees described in s. 409.615 (1) (a). (3) WHEN REDEMPTION MAY OCCUR. A redemption may occur at any time before a secured party: (a) Has collected collateral under s. 409.607; (b) Has disposed of collateral or entered into a contract for its disposition under s. 409.610; or (c) Has accepted collateral in full or partial satisfaction of the obligation it secures under s. 409.622. History: 2001 a. 10.
409.624 Waiver. (1) WAIVER OF DISPOSITION NOTIFICATION. A debtor or secondary obligor may waive the right to notification of disposition of collateral under s. 409.611 only by an agreement to that effect entered into and authenticated after default. (2) WAIVER OF MANDATORY DISPOSITION. A debtor may waive the right to require disposition of collateral under s. 409.620 (5) only by an agreement to that effect entered into and authenticated after default. (3) WAIVER OF REDEMPTION RIGHT. Except in a consumergoods transaction, a debtor or secondary obligor may waive the right to redeem collateral under s. 409.623 only by an agreement to that effect entered into and authenticated after default. History: 2001 a. 10.
409.625 Remedies for secured party’s failure to comply with chapter. (1) JUDICIAL ORDERS CONCERNING NONCOMPLIANCE. If it is established that a secured party is not proceeding in accordance with this chapter, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions. (2) DAMAGES FOR NONCOMPLIANCE. Subject to subs. (3) and (4), a person is liable for damages in the amount of any loss caused by a failure to comply with this chapter. Loss caused by a failure to comply may include loss resulting from the debtor’s inability to obtain, or increased costs of, alternative financing. (3) PERSONS ENTITLED TO RECOVER DAMAGES; STATUTORY DAMAGES IF COLLATERAL IS CONSUMER GOODS. Except as otherwise provided in s. 409.628: (a) A person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover damages under sub. (2) for its loss; and (b) If the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with this subchapter may recover for that failure in any event an amount not less than the credit service charge plus 10 percent of the principal amount of the obligation or the timeprice differential plus 10 percent of the cash price. (4) RECOVERY WHEN DEFICIENCY ELIMINATED OR REDUCED. A debtor whose deficiency is eliminated under s. 409.626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under s. 409.626 may not otherwise recover under sub. (2) for noncompliance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance. (7) LIMITATION OF SECURITY INTEREST: NONCOMPLIANCE WITH S. 409.210. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under s.
UCC — SECURED TRANSACTIONS
409.627
409.210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure. History: 2001 a. 10; 2011 a. 206.
409.626 Action in which deficiency or surplus is in issue. (1) APPLICABLE RULES IF AMOUNT OF DEFICIENCY OR SURPLUS IN ISSUE. In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply: (a) A secured party need not prove compliance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party’s compliance in issue. (b) If the secured party’s compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this subchapter. (c) Except as otherwise provided in s. 409.628, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney fees exceeds the greater of: 1. The proceeds of the collection, enforcement, disposition, or acceptance; or 2. The amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this subchapter relating to collection, enforcement, disposition, or acceptance. (d) For purposes of par. (c) 2., the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney fees unless the secured party proves that the amount is less than that sum. (e) If a deficiency or surplus is calculated under s. 409.615 (6), the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought. (2) NONCONSUMER TRANSACTIONS; NO INFERENCE. The limitation of the rules in sub. (1) to transactions other than consumer transactions is intended to leave to the court the determination of the proper rules in consumer transactions. The court may not infer from that limitation the nature of the proper rule in consumer transactions and may continue to apply established approaches. History: 2001 a. 10.
409.627 Determination of whether conduct was commercially reasonable. (1) GREATER AMOUNT OBTAINABLE UNDER OTHER CIRCUMSTANCES; NO PRECLUSION OF COMMERCIAL REASONABLENESS. The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner. (2) DISPOSITIONS THAT ARE COMMERCIALLY REASONABLE. A disposition of collateral is made in a commercially reasonable manner if the disposition is made: (a) In the usual manner on any recognized market; (b) At the price current in any recognized market at the time of the disposition; or
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.627
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
(c) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition. (3) APPROVAL BY COURT OR ON BEHALF OF CREDITORS. A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved: (a) In a judicial proceeding; (b) By a bona fide creditors’ committee; (c) By a representative of creditors; or (d) By an assignee for the benefit of creditors. (4) APPROVAL UNDER SUB. (3) NOT NECESSARY; ABSENCE OF APPROVAL HAS NO EFFECT. Approval under sub. (3) need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable. History: 2001 a. 10.
409.628 Nonliability and limitation on liability of secured party; liability of secondary obligor. (1) LIMITATION OF LIABILITY OF SECURED PARTY FOR NONCOMPLIANCE WITH CHAPTER. Unless a secured party knows that a person is a
debtor or obligor, knows the identity of the person, and knows how to communicate with the person: (a) The secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with this chapter; and (b) The secured party’s failure to comply with this chapter does not affect the liability of the person for a deficiency. (2) LIMITATION OF LIABILITY BASED ON STATUS AS SECURED PARTY. A secured party is not liable because of its status as secured party: (a) To a person that is a debtor or obligor, unless the secured party knows: 1. That the person is a debtor or obligor; 2. The identity of the person; and 3. How to communicate with the person; or (b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: 1. That the person is a debtor; and 2. The identity of the person. (3) LIMITATION OF LIABILITY IF REASONABLE BELIEF THAT TRANSACTION NOT A CONSUMER-GOODS TRANSACTION OR CONSUMER TRANSACTION. A secured party is not liable to any person, and a person’s liability for a deficiency is not affected, because of any act or omission arising out of the secured party’s reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party’s belief is based on its reasonable reliance on: (a) A debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or (b) An obligor’s representation concerning the purpose for which a secured obligation was incurred. (4) LIMITATION OF LIABILITY FOR STATUTORY DAMAGES. A secured party is not liable to any person under s. 409.625 (3) (b) for its failure to comply with s. 409.616. (5) LIMITATION OF MULTIPLE LIABILITY FOR STATUTORY DAMAGES. A secured party is not liable under s. 409.625 (3) (b) more than once with respect to any one secured obligation. History: 2001 a. 10.
48
SUBCHAPTER VII TRANSITION 409.702 Savings clause. (1) PREEFFECTIVE-DATE TRANSACTIONS OR LIENS. Except as otherwise provided in this subchapter, 2001 Wisconsin Act 10 applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2001. (2) CONTINUING VALIDITY. Except as otherwise provided in sub. (3) and ss. 409.703 to 409.709: (a) Transactions and liens that were not governed by ch. 409, 1999 stats., were validly entered into or created before July 1, 2001, and would be subject to 2001 Wisconsin Act 10 if they had been entered into or created on or after July 1, 2001, and the rights, duties, and interests flowing from those transactions and liens remain valid on and after July 1, 2001; and (b) The transactions and liens may be terminated, completed, consummated, and enforced as required or permitted by 2001 Wisconsin Act 10 or by the law that otherwise would apply if this paragraph had not taken effect. (3) PREEFFECTIVE-DATE PROCEEDINGS. 2001 Wisconsin Act 10 does not affect an action, case, or proceeding commenced before July 1, 2001. History: 2001 a. 10.
409.703 Security interest perfected before effective date. (1) CONTINUING PRIORITY OVER LIEN CREDITOR: PERFECTION REQUIREMENTS SATISFIED. A security interest that is enforceable immediately before July 1, 2001, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under 2001 Wisconsin Act 10 if, on July 1, 2001, the applicable requirements for enforceability and perfection under 2001 Wisconsin Act 10 are satisfied without further action. (2) CONTINUING PRIORITY OVER LIEN CREDITOR: PERFECTION REQUIREMENTS NOT SATISFIED. Except as otherwise provided in s. 409.705, if, immediately before July 1, 2001, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under 2001 Wisconsin Act 10 are not satisfied as of July 1, 2001, the security interest: (a) Is a perfected security interest until one year after July 1, 2001; (b) Remains enforceable on and after one year after July 1, 2001, only if the security interest becomes enforceable under s. 409.203 before one year after July 1, 2001; and (c) Remains perfected on and after one year after July 1, 2001, only if the applicable requirements for perfection under 2001 Wisconsin Act 10 are satisfied before one year after July 1, 2001. History: 2001 a. 10.
409.704 Security interest unperfected before effective date. A security interest that is enforceable immediately before July 1, 2001, but which would be subordinate to the rights of a person that becomes a lien creditor at that time: (1) Remains an enforceable security interest for one year after July 1, 2001; (2) Remains enforceable on and after one year after July 1, 2001, if the security interest becomes enforceable under s. 409.203 on July 1, 2001, or within one year thereafter; and (3) Becomes perfected: (a) Without further action, on July 1, 2001, if the applicable
May 22, 2026, are designated by NOTES. (Published 5-22-26)
49
Updated 23-24 Wis. Stats.
requirements for perfection under 2001 Wisconsin Act 10 are satisfied before or at that time; or (b) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time. History: 2001 a. 10, 104.
409.705 Effectiveness of action taken before effective date. (1) PREEFFECTIVE-DATE ACTION; ONE-YEAR PERFECTION PERIOD UNLESS REPERFECTED. If action, other than the filing of a financing statement, is taken before July 1, 2001, and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before July 1, 2001, the action is effective to perfect a security interest that attaches under 2001 Wisconsin Act 10 before July 1, 2001. An attached security interest becomes unperfected one year after July 1, 2001, unless the security interest becomes a perfected security interest under 2001 Wisconsin Act 10 before one year after July 1, 2001. (2) PREEFFECTIVE-DATE FILING. The filing of a financing statement before July 1, 2001, is effective to perfect a security interest to the extent that the filing would satisfy the applicable requirements for perfection under 2001 Wisconsin Act 10. (3) PREEFFECTIVE-DATE FILING IN JURISDICTION FORMERLY GOVERNING PERFECTION. 2001 Wisconsin Act 10 does not render ineffective an effective financing statement that, before July 1, 2001, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in s. 409.103, 1999 stats. However, except as otherwise provided in subs. (4) and (5) and s. 409.706, the financing statement ceases to be effective at the earlier of: (a) The time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or (b) June 30, 2006. (4) CONTINUATION STATEMENT. The filing of a continuation statement on or after July 1, 2001, does not continue the effectiveness of the financing statement filed before July 1, 2001. However, upon the timely filing of a continuation statement on or after July 1, 2001, and in accordance with the law of the jurisdiction governing perfection as provided in subch. III, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2001, continues for the period provided by the law of that jurisdiction. (5) APPLICATION OF SUB. (3) (B) TO TRANSMITTING UTILITY FINANCING STATEMENT. Subsection (3) (b) applies to a financing statement that, before July 1, 2001, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in s. 409.103, 1999 stats., only to the extent that subch. III provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement. (6) APPLICATION OF SUBCH. V. A financing statement that includes a financing statement filed before July 1, 2001, and a continuation statement filed on or after July 1, 2001, is effective only to the extent that it satisfies the requirements of subch. V for an initial financing statement. History: 2001 a. 10.
409.706 When initial financing statement suffices to continue effectiveness of financing statement. (1) INITIAL FINANCING STATEMENT IN LIEU OF CONTINUATION STATEMENT. The filing of an initial financing statement in the office
specified in s. 409.501 continues the effectiveness of a financing statement filed before July 1, 2001, if: (a) The filing of an initial financing statement in that office
UCC — SECURED TRANSACTIONS
409.707
would be effective to perfect a security interest under 2001 Wisconsin Act 10; (b) The preeffective-date financing statement was filed in an office in another state or another office in this state; and (c) The initial financing statement satisfies sub. (3). (2) PERIOD OF CONTINUED EFFECTIVENESS. The filing of an initial financing statement under sub. (1) continues the effectiveness of the preeffective-date financing statement: (a) If the initial financing statement is filed before July 1, 2001, for the period provided in s. 409.403, 1999 stats., with respect to a financing statement; and (b) If the initial financing statement is filed on or after July 1, 2001, for the period provided in s. 409.515 with respect to an initial financing statement. (3) REQUIREMENTS FOR INITIAL FINANCING STATEMENT UNDER SUB. (1). To be effective for purposes of sub. (1), an initial financing statement must: (a) Satisfy the requirements of subch. V for an initial financing statement; (b) Identify the preeffective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and (c) Indicate that the preeffective-date financing statement remains effective. History: 2001 a. 10.
409.707 Amendment of preeffective-date financing statement. (1) PREEFFECTIVE-DATE FINANCING STATEMENT. In this section, “preeffective-date financing statement” means a financing statement filed before July 1, 2001. (2) APPLICABLE LAW. On or after July 1, 2001, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in subch. III. However, the effectiveness of a preeffective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed. (3) METHOD OF AMENDING: GENERAL RULE. Except as otherwise provided in sub. (4), if the law of this state governs perfection of a security interest, the information in a preeffective-date financing statement may be amended on or after July 1, 2001, only if: (a) The preeffective-date financing statement and an amendment are filed in the office specified in s. 409.501; (b) An amendment is filed in the office specified in s. 409.501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies s. 409.706 (3); or (c) An initial financing statement that provides the information as amended and satisfies s. 409.706 (3) is filed in the office specified in s. 409.501. (4) METHOD OF AMENDING: CONTINUATION. If the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement may be continued only under s. 409.705 (4) and (6) or 409.706. (5) METHOD OF AMENDING: ADDITIONAL TERMINATION RULE. Whether or not the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement filed in this state may be terminated on or after July 1, 2001, by filing a termination statement in the office in which the preeffective-date financing statement is filed, unless an initial financing statement that satisfies s. 409.706 (3) has been filed in
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.707
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
the office specified by the law of the jurisdiction governing perfection as provided in subch. III as the office in which to file a financing statement. History: 2001 a. 10.
409.708 Persons entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this subchapter if: (1) The secured party of record authorizes the filing; and (2) The filing is necessary under this subchapter: (a) To continue the effectiveness of a financing statement filed before July 1, 2001; or (b) To perfect or continue the perfection of a security interest. History: 2001 a. 10.
409.709 Priority. (1) LAW GOVERNING PRIORITY. 2001 Wisconsin Act 10 determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2001, ch. 409, 1999 stats., determines priority. (2) PRIORITY IF SECURITY INTEREST BECOMES ENFORCEABLE UNDER S. 409.203. For purposes of s. 409.322 (1), the priority of a security interest that becomes enforceable under s. 409.203 dates from July 1, 2001, if the security interest is perfected under 2001 Wisconsin Act 10 by the filing of a financing statement before July 1, 2001, which would not have been effective to perfect the security interest under ch. 409, 1999 stats. This subsection does not apply to conflicting security interests each of which is perfected by the filing of such a financing statement.
(4) INFORMATION REQUESTS. Until at least June 30, 2008, each local filing office must respond to requests for information with respect to former-ch.-409 records relating to a debtor and issue certificates, in accordance with ch. 409, 1999 stats. The fees charged for responding to requests for information relating to a debtor and issuing certificates with respect to former-ch.-409 records must be the fees in effect under ch. 409, 1999 stats., on June 30, 2001, unless a different fee is later set by the local filing office. However, the different fee must not exceed the amount set by filing-office rule for responding to a request for information relating to a debtor or for issuing a certificate. This subsection does not require that a fee be charged for remote access searching of the filing-office data base. The rule promulgated pursuant to this subsection need not specify a fee for remote access searching of the filing-office data base. (5) DESTRUCTION OF RECORDS. After June 30, 2008, each local filing office may remove and destroy, in accordance with any then-applicable record retention law of this state, all formerch.-409 records, including the related index. (6) EXCLUSION. This section does not apply, with respect to financing statements and other records, to a filing office in which mortgages or records of mortgages on real property are required to be filed or recorded, if: (a) The collateral is timber to be cut or as-extracted collateral; or (b) The record is or relates to a financing statement filed as a fixture filing and the collateral is goods that are or are to become fixtures. History: 2001 a. 10.
History: 2001 a. 10.
409.710 Special transitional provision for maintaining and searching local filing office records. (1) DEFINITIONS. In this section: (a) “Former-ch.-409 records”: 1. Means: a. Financing statements and other records that have been filed in a local filing office before July 1, 2001, and that are, or upon processing and indexing will be, reflected in the index maintained, as of June 30, 2001, by the local filing office for financing statements and other records filed in the local filing office before July 1, 2001; and b. The index as of June 30, 2001. 2. Does not include records presented to a local filing office for filing after June 30, 2001, whether or not the records relate to financing statements filed in the local filing office before July 1, 2001. (b) “Local filing office” means a filing office, other than the department of financial institutions, that is designated as the proper place to file a financing statement under s. 409.401 (1), 1999 stats., with respect to a record that covers a type of collateral as to which the filing office is designated in that subsection as the proper place to file. (2) PROHIBITION OF FILING AFTER JUNE 30, 2001. A local filing office shall not accept for filing a record presented after June 30, 2001, whether or not the record relates to a financing statement filed in the local filing office before July 1, 2001. (3) MAINTENANCE OF RECORDS. Until July 1, 2008, each local filing office must maintain all former-ch.-409 records in accordance with ch. 409, 1999 stats. A former-ch.-409 record that is not reflected on the index maintained at June 30, 2001, by the local filing office must be processed and indexed, and reflected on the index as of June 30, 2001, as soon as practicable but in any event no later than July 30, 2001.
50
SUBCHAPTER VIII TRANSITION PROVISIONS FOR 2010 AMENDMENTS 409.802 Savings clause. (1) PREEFFECTIVE-DATE TRANSACTIONS OR LIENS. Except as otherwise provided in this subchapter, 2011 Wisconsin Act 206 applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2013. (2) PREEFFECTIVE-DATE PROCEEDINGS. 2011 Wisconsin Act 206 does not affect an action, case, or proceeding commenced before July 1, 2013. History: 2011 a. 206.
409.803 Security interest perfected before effective date. (1) CONTINUING PERFECTION: PERFECTION REQUIREMENTS SATISFIED. A security interest that is a perfected security interest immediately before July 1, 2013, is a perfected security interest under this chapter, as affected by 2011 Wisconsin Act 206 if, on July 1, 2013, the applicable requirements for attachment and perfection under this chapter, as affected by 2011 Wisconsin Act 206 are satisfied without further action. (2) CONTINUING PERFECTION: PERFECTION REQUIREMENTS NOT SATISFIED. Except as otherwise provided in s. 409.805, if, immediately before July 1, 2013, a security interest is a perfected security interest, but the applicable requirements for perfection under this chapter, as affected by 2011 Wisconsin Act 206 are not satisfied as of July 1, 2013, the security interest remains perfected thereafter only if the applicable requirements for perfection under this chapter, as affected by 2011 Wisconsin Act 206, are satisfied within one year after July 1, 2013. History: 2011 a. 206.
409.804 Security interest unperfected before effective date. A security interest that is an unperfected security in-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
51
Updated 23-24 Wis. Stats.
terest immediately before July 1, 2013, becomes a perfected security interest: (1) Without further action, on July 1, 2013, if the applicable requirements for perfection under this chapter, as affected by 2011 Wisconsin Act 206, are satisfied before or at that time; or (2) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time. History: 2011 a. 206.
409.805 Effectiveness of action taken before effective date. (1) PREEFFECTIVE-DATE FILING EFFECTIVE. The filing of a financing statement before July 1, 2013, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this chapter, as affected by 2011 Wisconsin Act 206. (2) WHEN PREEFFECTIVE-DATE FILING BECOMES INEFFECTIVE. 2011 Wisconsin Act 206 does not render ineffective an effective financing statement that, before July 1, 2013, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in ch. 409, 2009 stats. However, except as otherwise provided in subs. (3) and (4) and s. 409.806, the financing statement ceases to be effective: (a) If the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had 2011 Wisconsin Act 206 not taken effect; or (b) If the financing statement is filed in another jurisdiction, at the earlier of: 1. The time the financing statement would have ceased to be effective under the law of that jurisdiction; or 2. June 30, 2018. (3) CONTINUATION STATEMENT. The filing of a continuation statement on or after July 1, 2013, does not continue the effectiveness of a financing statement filed before July 1, 2013. However, upon the timely filing of a continuation statement on or after July 1, 2013, and in accordance with the law of the jurisdiction governing perfection as provided in this chapter, as affected by 2011 Wisconsin Act 206, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2013, continues for the period provided by the law of that jurisdiction. (4) APPLICATION OF SUB. (2) (B) 2. TO TRANSMITTING UTILITY FINANCING STATEMENT. Subsection (2) (b) 2. applies to a financing statement that, before July 1, 2013, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in ch. 409, 2009 stats., only to the extent that this chapter, as affected by 2011 Wisconsin Act 206, provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement. (5) APPLICATION OF SUBCH. V. A financing statement that includes a financing statement filed before July 1, 2013, and a continuation statement filed on or after July 1, 2013, is effective only to the extent that it satisfies the requirements of subch. V, as affected by 2011 Wisconsin Act 206, for an initial financing statement. A financing statement that indicates that the debtor is a decedent’s estate indicates that the collateral is being administered by a personal representative within the meaning of s. 409.503 (1) (b), as affected by 2011 Wisconsin Act 206. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of s. 409.503 (1) (c), as affected by 2011 Wisconsin Act 206. History: 2011 a. 206.
UCC — SECURED TRANSACTIONS
409.807
409.806 When initial financing statement suffices to continue effectiveness of financing statement. (1) INITIAL FINANCING STATEMENT IN LIEU OF CONTINUATION STATEMENT. The filing of an initial financing statement in the office
specified in s. 409.501 continues the effectiveness of a financing statement filed before July 1, 2013, if: (a) The filing of an initial financing statement in that office would be effective to perfect a security interest under this chapter, as affected by 2011 Wisconsin Act 206; (b) The preeffective-date financing statement was filed in an office in another state; and (c) The initial financing statement satisfies sub. (3). (2) PERIOD OF CONTINUED EFFECTIVENESS. The filing of an initial financing statement under sub. (1) continues the effectiveness of the preeffective-date financing statement: (a) If the initial financing statement is filed before July 1, 2013, for the period provided in s. 409.515, 2009 stats., with respect to an initial financing statement; and (b) If the initial financing statement is filed on or after July 1, 2013, for the period provided in s. 409.515, as affected by 2011 Wisconsin Act 206, with respect to an initial financing statement. (3) REQUIREMENTS FOR INITIAL FINANCING STATEMENT UNDER SUB. (1). To be effective for purposes of sub. (1), an initial financing statement must: (a) Satisfy the requirements of subch. V, as affected by 2011 Wisconsin Act 206, for an initial financing statement; (b) Identify the preeffective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and (c) Indicate that the preeffective-date financing statement remains effective. History: 2011 a. 206.
409.807 Amendment of preeffective-date financing statement. (1) PREEFFECTIVE-DATE FINANCING STATEMENT. In this section, “preeffective-date financing statement” means a financing statement filed before July 1, 2013. (2) APPLICABLE LAW. On or after July 1, 2013, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in this chapter, as affected by 2011 Wisconsin Act 206. However, the effectiveness of a preeffective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed. (3) METHOD OF AMENDING: GENERAL RULE. Except as otherwise provided in sub. (4), if the law of this state governs perfection of a security interest, the information in a preeffective-date financing statement may be amended on or after July 1, 2013, only if: (a) The preeffective-date financing statement and an amendment are filed in the office specified in s. 409.501; (b) An amendment is filed in the office specified in s. 409.501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies s. 409.806 (3); or (c) An initial financing statement that provides the information as amended and satisfies s. 409.806 (3) is filed in the office specified in s. 409.501. (4) METHOD OF AMENDING: CONTINUATION. If the law of this state governs perfection of a security interest, the effective-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
409.807
Updated 23-24 Wis. Stats.
UCC — SECURED TRANSACTIONS
ness of a preeffective-date financing statement may be continued only under s. 409.805 (3) and (5) or 409.806. (5) METHOD OF AMENDING: ADDITIONAL TERMINATION RULE. Whether or not the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement filed in this state may be terminated on or after July 1, 2013, by filing a termination statement in the office in which the preeffective-date financing statement is filed, unless an initial financing statement that satisfies s. 409.806 (3) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in this chapter, as affected by 2011 Wisconsin Act 206, as the office in which to file a financing statement. History: 2011 a. 206.
409.808 Persons entitled to file initial financing state-
52
ment or continuation statement. A person may file an initial financing statement or a continuation statement under this subchapter if: (1) The secured party of record authorizes the filing; and (2) The filing is necessary under this subchapter: (a) To continue the effectiveness of a financing statement filed before July 1, 2013; or (b) To perfect or continue the perfection of a security interest. History: 2011 a. 206.
409.809 Priority. 2011 Wisconsin Act 206 determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2013, ch. 409, 2009 stats., determines priority. History: 2011 a. 206.
May 22, 2026, are designated by NOTES. (Published 5-22-26)