Chapter 409, UNIFORM COMMERCIAL CODE — SECURED TRANSACTIONS

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-…

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 t…

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 …

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 FU…

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 fu…

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 u…

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 ac…

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…

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 …

409.338 Priority of security interest or agricultural 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)…

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…

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 termina…

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 …

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…

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 d…

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 ass…

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 r…

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 contr…

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 …

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 t…

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 …

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…

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 l…

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 t…

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 …

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…

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…

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 …

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…

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 i…

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 autho…

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 pa…

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 be…

409.512 Amendment of financing statement. (1) 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…

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 secure…

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 th…

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. (…

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) REFU…

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 …

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 num…

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…

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 em…

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 ha…

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 …

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 bey…

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 ret…

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 …

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 JURI…