reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.628 - Nonliability and limitation on liability of secured party; liability of secondary obligor.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.702 - Savings clause.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.703 - Security interest perfected before effective date.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.704 - Security interest unperfected before effective date.

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 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.706 - When initial financing statement suffices to continue effectiveness of financing statement.

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 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.707 - Amendment of preeffective-date financing statement.

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 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.708 - Persons entitled to file initial financing statement or continuation statement.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.709 - Priority.

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.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.802 - Savings clause.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.803 - Security interest perfected before effective date.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.804 - Security interest unperfected before effective date.

409.804
Security interest unperfected before effective date.
A security interest that is an unperfected security interest 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.806 - When initial financing statement suffices to continue effectiveness of financing statement.

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.807 - Amendment of preeffective-date financing statement.

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 effectiveness 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.808 - Persons entitled to file initial financing statement or continuation statement.

409.808
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, 2013; or
(b)
To perfect or continue the perfection of a security interest.
History:  2011 a. 206.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.809 - Priority.

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.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.103 - Payment order; definitions.

410.103
Payment order; definitions.
(1)
In this chapter:
(a)
“Beneficiary" means the person to be paid by the beneficiary's bank.
(b)
“Beneficiary's bank" means the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account.
(c)
“Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if all of the following apply:
1.
The instruction does not state a condition to payment to the beneficiary other than time of payment.
2.
The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender.
3.
The instruction is transmitted by the sender directly to the receiving bank or to an agent, funds-transfer system, or communication system for transmittal to the receiving bank.
(d)
“Receiving bank" means the bank to which the sender's instruction is addressed.
(e)
“Sender" means the person giving the instruction to the receiving bank and includes a customer described in s. 410.202 (4).
(2)
If an instruction complying with sub. (1) (c) is to make more than one payment to a beneficiary, the instruction is a separate payment order with respect to each payment.
(3)
A payment order is issued when it is sent to the receiving bank.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.104 - Funds transfer; definitions.

410.104
Funds transfer; definitions.
In this chapter:
(1)
“Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. “Funds transfer" includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order.
(2)
“Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank.
(3)
“Originator" means the sender of the first payment order in a funds transfer.
(4)
“Originator's bank" means the receiving bank to which the payment order of the originator is issued if the originator is not a bank or the originator if the originator is a bank.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.105 - Other definitions.

410.105
Other definitions.
(1)
In this chapter:
(a)
“Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.
(b)
“Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of this chapter.
(c)
“Customer" means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.
(d)
“Funds-transfer business day" of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing, and transmittal of payment orders and for cancellations and amendments of payment orders.
(e)
“Funds-transfer system" means a wire transfer network, automated clearinghouse, or other communication system of a clearinghouse or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.
(f)
“Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(g)
“Prove" with respect to a fact means to meet the burden of establishing the fact.
(2)
Other definitions applying to this chapter and the sections in which they appear are:
(a)
“Acceptance" — s. 410.209.
(b)
“Beneficiary" — s. 410.103 (1) (a).
(c)
“Beneficiary's bank" — s. 410.103 (1) (b).
(d)
“Executed" — s. 410.301 (1).
(e)
“Execution date" — s. 410.301 (2).
(f)
“Funds transfer" — s. 410.104 (1).
(g)
“Funds-transfer system rule" — s. 410.501 (2) (a).
(h)
“Intermediary bank" — s. 410.104 (2).
(i)
“Originator" — s. 410.104 (3).
(j)
“Originator's bank" — s. 410.104 (4).
(k)
“Payment by beneficiary's bank to beneficiary" — s. 410.405.
(L)
“Payment by originator to beneficiary" — s. 410.406.
(m)
“Payment by sender to receiving bank" — s. 410.403.
(n)
“Payment date" — s. 410.401.
(p)
“Payment order" — s. 410.103 (1) (c).
(q)
“Receiving bank" — s. 410.103 (1) (d).
(r)
“Security procedure" — s. 410.201.
(s)
“Sender" — s. 410.103 (1) (e).
(3)
The following definitions in ch. 404 apply to this chapter:
(a)
“Clearinghouse" — s. 404.104 (1) (d).
(b)
“Item" — s. 404.104 (1) (i).
(c)
“Suspends payments" — s. 404.104 (1) (L).
(4)
In addition ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.
History:  1991 a. 304; 1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.106 - Time payment order is received.

410.106
Time payment order is received.
(1)
The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in s. 401.202 (6). A receiving bank may fix a cutoff time or times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or amending payment orders. Different cutoff times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cutoff time may apply to senders generally or different cutoff times may apply to different senders or categories of payment orders. If a payment order or communication canceling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cutoff time on a funds-transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds-transfer business day.
(2)
If this chapter refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the date or day stated, unless the contrary is stated in this chapter.
History:  1991 a. 304; 2003 a. 321; 2009 a. 320.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.107 - Federal reserve regulations and operating circulars.

410.107
Federal reserve regulations and operating circulars.
Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.108 - Relationship to Electronic Fund Transfer Act.

410.108
Relationship to Electronic Fund Transfer Act.
(1)
Except as provided in sub. (2), this chapter does not apply to a funds transfer any part of which is governed by the electronic fund transfer act, 15 USC 1693 to 1693r.
(2)
This chapter applies to a funds transfer that is a remittance transfer, as defined in 15 USC 1693o-1, unless the remittance transfer is an electronic fund transfer, as defined in 15 USC 1693a.
(3)
In a funds transfer to which this chapter applies, in the event of an inconsistency between an applicable provision of this chapter and an applicable provision of the electronic fund transfer act, the provision of the electronic fund transfer act governs to the extent of the inconsistency.
History:  1991 a. 304; 2013 a. 33.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.201 - Security procedure.

410.201
Security procedure.
“Security procedure" means a procedure established by agreement of a customer and a receiving bank to verify that a payment order or communication amending or canceling a payment order is that of the customer or to detect error in the transmission or the content of the payment order or communication. A security procedure may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices. Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer is not by itself a security procedure.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.202 - Authorized and verified payment orders.

410.202
Authorized and verified payment orders.
(1)
A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency.
(2)
(a)
If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if all of the following apply:
1.
The security procedure is a commercially reasonable method of providing security against unauthorized payment orders.
2.
The bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.
(b)
The bank is not required to follow an instruction that violates a written agreement with the customer or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted.
(3)
Commercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer that are expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is considered to be commercially reasonable if all of the following apply:
(a)
The security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer.
(b)
The customer expressly agreed in writing to be bound by any payment order, whether or not authorized, issued in the customer's name and accepted by the bank in compliance with the security procedure chosen by the customer.
(4)
In this chapter, “sender" includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under sub. (1), or it is effective as the order of the customer under sub. (2).
(5)
This section applies to amendments and cancellations of payment orders to the same extent that it applies to payment orders.
(6)
Except as provided in this section and in s. 410.203 (1) (a), rights and obligations arising under this section or s. 410.203 may not be varied by agreement.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.203 - Unenforceability of certain verified payment orders.

410.203
Unenforceability of certain verified payment orders.
(1)
If an accepted payment order is not, under s. 410.202 (1), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to s. 410.202 (2), the following rules apply:
(a)
By express written agreement, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.
(b)
The receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by any of the following:
1.
A person entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure.
2.
A person who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault. Information includes any access device, computer software, or the like.
(2)
This section applies to amendments of payment orders to the same extent that it applies to payment orders.
History:  1991 a. 304.
A bank that received an electronic transfer of funds, with incomplete instructions, and deposited the funds into an account in which the account owner had granted a security interest to a creditor who had a rightful claim to the funds was liable to the secured creditor for the amount of the transfer when the bank subsequently transferred the funds to another account of the account owner who absconded with the funds. General Electric Capital Corp. v. Central Bank, 49 F.3d 280 (1995).
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.204 - Refund of payment and duty of customer to report with respect to unauthorized payment order.

410.204
Refund of payment and duty of customer to report with respect to unauthorized payment order.
(1)
If a receiving bank accepts a payment order issued in the name of its customer as sender that is not authorized and not effective as the order of the customer under s. 410.202, or that is not enforceable, in whole or in part, against the customer under s. 410.203, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.
(2)
Reasonable time under sub. (1) may be fixed by agreement as stated in s. 401.302 (1), but the obligation of a receiving bank to refund payment as stated in sub. (1) may not otherwise be varied by agreement.
History:  1991 a. 304; 2009 a. 320.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.205 - Erroneous payment orders.

410.205
Erroneous payment orders.
(1)
(a)
The rules in pars. (am) to (c) apply if an accepted payment order was transmitted pursuant to a security procedure for the detection of error and any of the following occurs:
1.
The payment order erroneously instructed payment to a beneficiary not intended by the sender.
2.
The payment order erroneously instructed payment in an amount greater than the amount intended by the sender.
3.
The payment order was an erroneously transmitted duplicate of a payment order previously sent by the sender.
(am)
If the sender proves that the sender or a person acting on behalf of the sender pursuant to s. 410.206 complied with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order to the extent stated in pars. (b) and (c).
(b)
If the funds transfer is completed on the basis of an erroneous payment order described in par. (a) 1. or 3., the sender is not obliged to pay the order and the receiving bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law governing mistake and restitution.
(c)
If the funds transfer is completed on the basis of a payment order described in par. (a) 2., the sender is not obliged to pay the order to the extent the amount received by the beneficiary is greater than the amount intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess amount received to the extent allowed by the law governing mistake and restitution.
(2)
If the sender of an erroneous payment order described in sub. (1) (a) is not obliged to pay all or part of the order and the sender receives notification from the receiving bank that the order was accepted by the bank or that the sender's account was debited with respect to the order, the sender has a duty to exercise ordinary care, on the basis of information available to the sender, to discover the error with respect to the order and to advise the bank of the relevant facts within a reasonable time, not exceeding 90 days, after the bank's notification was received by the sender. If the bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss the bank proves it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender's order.
(3)
This section applies to amendments to payment orders to the same extent that it applies to payment orders.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.206 - Transmission of payment order through funds-transfer or other communication system.

410.206
Transmission of payment order through funds-transfer or other communication system.
(1)
If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other 3rd-party communication system for transmittal to the bank, the system is considered to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the system and the terms of the payment order transmitted by the system to the bank, the terms of the payment order of the sender are those transmitted by the system. This section does not apply to a funds-transfer system of the federal reserve banks.
(2)
This section applies to cancellations and amendments of payment orders to the same extent that it applies to payment orders.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.207 - Misdescription of beneficiary.

410.207
Misdescription of beneficiary.
(1)
Subject to sub. (2), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and acceptance of the order cannot occur.
(2)
If a payment order received by the beneficiary's bank identifies the beneficiary both by name and by an identifying or bank account number and the name and number identify different persons, the following rules apply:
(a)
Except as otherwise provided in sub. (3), if the beneficiary's bank does not know that the name and number refer to different persons, it may rely on the number as the proper identification of the beneficiary of the order. The beneficiary's bank need not determine whether the name and number refer to the same person.
(b)
If the beneficiary's bank pays the person identified by name or knows that the name and number identify different persons, no person has rights as beneficiary except the person paid by the beneficiary's bank if that person was entitled to receive payment from the originator of the funds transfer. If no person has rights as beneficiary, acceptance of the order cannot occur.
(3)
If a payment order described in sub. (2) (intro.) is accepted, the originator's payment order described the beneficiary inconsistently by name and number and the beneficiary's bank pays the person identified by number as permitted under sub. (2) (a), the following rules apply:
(a)
If the originator is a bank, the originator is obliged to pay its order.
(b)
If the originator is not a bank and proves that the person identified by number was not entitled to receive payment from the originator, the originator is not obliged to pay its order unless the originator's bank proves that the originator, before acceptance of the originator's order, had notice that payment of a payment order issued by the originator might be made by the beneficiary's bank on the basis of an identifying or bank account number even if it identifies a person different from the named beneficiary. Proof of notice may be made by any admissible evidence. The originator's bank satisfies the burden of proof if it proves that the originator, before the payment order was accepted, signed a writing stating the information to which the notice relates.
(4)
In a case governed by sub. (2) (a), if the beneficiary's bank rightfully pays the person identified by number and that person was not entitled to receive payment from the originator, the amount paid may be recovered from that person to the extent allowed by the law governing mistake and restitution as follows:
(a)
If the originator is obliged to pay its payment order as stated in sub. (3), the originator has the right to recover.
(b)
If the originator is not a bank and is not obliged to pay its payment order, the originator's bank has the right to recover.
History:  1991 a. 304.
2023 Wisconsin Statutes & Annotations › Chapter 410 - Uniform commercial code — funds transfers. › 410.208 - Misdescription of intermediary bank or beneficiary's bank.

410.208
Misdescription of intermediary bank or beneficiary's bank.
(1)
(a)
This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number.
(am)
The receiving bank may rely on the number as the proper identification of the intermediary bank or the beneficiary's bank and need not determine whether the number identifies a bank.
(b)
The sender is obliged to compensate the receiving bank for any loss and expenses incurred by the receiving bank as a result of its reliance on the number in executing or attempting to execute the order.
(2)
(a)
This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank both by name and an identifying number if the name and number identify different persons.
(am)
If the sender is a bank, the receiving bank may rely on the number as the proper identification of the intermediary bank or the beneficiary's bank if the receiving bank, when it executes the sender's order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person or whether the number refers to a bank. The sender is obliged to compensate the receiving bank for any loss and expenses incurred by the receiving bank as a result of its reliance on the number in executing or attempting to execute the order.
(b)
If the sender is not a bank and the receiving bank proves that the sender, before the payment order was accepted, had notice that the receiving bank might rely on the number as the proper identification of the intermediary bank or the beneficiary's bank even if it identifies a person different from the bank identified by name, the rights and obligations of the sender and the receiving bank are governed by sub. (2) (am), as though the sender were a bank. Proof of notice may be made by any admissible evidence. The receiving bank satisfies the burden of proof if it proves that the sender, before the payment order was accepted, signed a writing stating the information to which the notice relates.
(c)
Regardless of whether the sender is a bank, the receiving bank may rely on the name as the proper identification of the intermediary bank or the beneficiary's bank if the receiving bank, at the time it executes the sender's order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person.
(d)
If the receiving bank knows that the name and number identify different persons, reliance on either the name or the number in executing the sender's payment order is a breach of the obligation stated in s. 410.302 (1) (a).
History:  1991 a. 304.