reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.204 - After-acquired property; future advances.

409.204
After-acquired property; future advances.
(1)
After-acquired collateral. Except as otherwise provided in sub. (2), a security agreement may create or provide for a security interest in after-acquired collateral.
(2)
When after-acquired property clause not effective. A security interest does not attach under a term constituting an after-acquired property clause to:
(a)
Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value; or
(b)
A commercial tort claim.
(3)
Future advances and other value. A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles, or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.
History:  2001 a. 10.
A security agreement covering money lent “and all other obligations and liabilities" will not extend to obligations arising out of contract violations unless they were clearly within the intent of the parties. John Miller Supply Co. v. Western State Bank, 55 Wis. 2d 385, 199 N.W.2d 161 (1972).
Priorities of “future advances" under previously perfected security interests and article 9 of the U.C.C. 58 MLR 759.
Security interests in after-acquired property under the uniform commercial code. Skilton, 1974 WLR 925.
NOTE:  The above annotated materials cite to the pre-2001 Wis. Act 10 version of s. 409.204.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.205 - Use or disposition of collateral permissible.

409.205
Use or disposition of collateral permissible.
(1)
When security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors solely because:
(a)
The debtor has the right or ability to:
1.
Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
2.
Collect, compromise, enforce, or otherwise deal with collateral;
3.
Accept the return of collateral or make repossessions; or
4.
Use, commingle, or dispose of proceeds; or
(b)
The secured party fails to require the debtor to account for proceeds or replace collateral.
(2)
Requirements of possession not relaxed. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
History:  2001 a. 10.
Under this section the debtor is freed from strict accountability to the secured creditor for the property secured, and the validity of a secured interest in after-acquired property is specifically recognized. When a creditor has a security interest in the debtor's after-acquired property the debtor is able to commingle his property and use it to his or her best interest. The acquiescence of the secured creditor under an after-acquired clause by the debtor does not invalidate the security interest of the creditor. Burlington National Bank v. Strauss, 50 Wis. 2d 270, 184 N.W.2d 122 (1971).
NOTE:  The above annotated materials cite to the pre-2001 Wis. Act 10 version of s. 409.205.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.206 - Security interest arising in purchase or delivery of financial asset.

409.206
Security interest arising in purchase or delivery of financial asset.
(1)
Security interest when person buys through securities intermediary. A security interest in favor of a securities intermediary attaches to a person's security entitlement if:
(a)
The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(b)
The securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(2)
Security interest secures obligation to pay for financial asset. The security interest described in sub. (1) secures the person's obligation to pay for the financial asset.
(3)
Security interest in payment against delivery transaction. A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:
(a)
The security or other financial asset:
1.
In the ordinary course of business is transferred by delivery with any necessary endorsement or assignment; and
2.
Is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
(b)
The agreement calls for delivery against payment.
(4)
Security interest secures obligation to pay for delivery. The security interest described in sub. (3) secures the obligation to make payment for the delivery.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.209 - Duties of secured party if account debtor has been notified of assignment.

409.209
Duties of secured party if account debtor has been notified of assignment.
(1)
Applicability of section. Except as otherwise provided in sub. (3), this section applies if:
(a)
There is no outstanding secured obligation; and
(b)
The secured party is not committed to make advances, incur obligations, or otherwise give value.
(2)
Duties of secured party after receiving demand from debtor. Within 10 days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under s. 409.406 (1) an authenticated record that releases the account debtor from any further obligation to the secured party.
(3)
Inapplicability to sales. This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.301 - Law governing perfection and priority of security interests.

409.301
Law governing perfection and priority of security interests.
Except as otherwise provided in ss. 409.303 to 409.306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:
(1)
Location of debtor. Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(2)
Location of collateral. While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
(3)
Location of property. Except as otherwise provided in sub. (4), while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:
(a)
Perfection of a security interest in the goods by filing a fixture filing;
(b)
Perfection of a security interest in timber to be cut; and
(c)
The effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.
(4)
Location of wellhead or minehead. The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
History:  2001 a. 10; 2009 a. 322.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.302 - Law governing perfection and priority of agricultural liens.

409.302
Law governing perfection and priority of agricultural liens.
While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.303 - Law governing perfection and priority of security interests in goods covered by a certificate of title.

409.303
Law governing perfection and priority of security interests in goods covered by a certificate of title.
(1)
Applicability of section. This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.
(2)
When goods covered by certificate of title. Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.
(3)
Applicable law. The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.304 - Law governing perfection and priority of security interests in deposit accounts.

409.304
Law governing perfection and priority of security interests in deposit accounts.
(1)
Law of bank's jurisdiction governs. The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank.
(2)
Bank's jurisdiction. The following rules determine a bank's jurisdiction for purposes of this subchapter:
(a) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this subchapter, this chapter, or chs. 401 to 411, that jurisdiction is the bank's jurisdiction.
(b)
If par. (a) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(c)
If neither par. (a) nor par. (b) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(d)
If none of pars. (a) to (c) applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
(e)
If none of pars. (a) to (d) applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.306 - Law governing perfection and priority of security interests in letter-of-credit rights.

409.306
Law governing perfection and priority of security interests in letter-of-credit rights.
(1)
Governing law: issuer's or nominated person's jurisdiction. Subject to sub. (3), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.
(2)
Issuer's or nominated person's jurisdiction. For purposes of this subchapter, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in ch. 405.
(3)
When section not applicable. This section does not apply to a security interest that is perfected only under s. 409.308 (4).
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.308 - When security interest or agricultural lien is perfected; continuity of perfection.

409.308
When security interest or agricultural lien is perfected; continuity of perfection.
(1)
Perfection of security interest. Except as otherwise provided in this section and s. 409.309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in ss. 409.310 to 409.316 have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(2)
Perfection of agricultural lien. An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in s. 409.310 have been satisfied. An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.
(3)
Continuous perfection; perfection by different methods. A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this chapter and is later perfected by another method under this chapter, without an intermediate period when it was unperfected.
(4)
Supporting obligation. Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(5)
Lien securing right to payment. Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.
(6)
Security entitlement carried in securities account. Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(7)
Commodity contract carried in commodity account. Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.309 - Security interest perfected upon attachment.

409.309
Security interest perfected upon attachment.
The following security interests are perfected when they attach:
(1)
A purchase-money security interest in consumer goods, except as otherwise provided in s. 409.311 (2) with respect to consumer goods that are subject to a statute or treaty described in s. 409.311 (1);
(2)
An assignment of accounts or payment intangibles which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles;
(3)
A sale of a payment intangible;
(4)
A sale of a promissory note;
(5)
A security interest created by the assignment of a health-care-insurance receivable to the provider of the health-care goods or services;
(6)
A security interest arising under s. 402.401, 402.505, 402.711 (3), or 411.508 (5), until the debtor obtains possession of the collateral;
(7)
A security interest of a collecting bank arising under s. 404.210;
(8)
A security interest of an issuer or nominated person arising under s. 405.118;
(9)
A security interest arising in the delivery of a financial asset under s. 409.206 (3);
(10)
A security interest in investment property created by a broker or securities intermediary;
(11)
A security interest in a commodity contract or a commodity account created by a commodity intermediary;
(12)
An assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder; and
(13)
A security interest created by an assignment of a beneficial interest in a decedent's estate.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.310 - When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.

409.310
When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.
(1)
General rule: perfection by filing. Except as otherwise provided in sub. (2) and s. 409.312 (2), a financing statement must be filed to perfect all security interests and agricultural liens.
(2)
Exceptions: filing not necessary. The filing of a financing statement is not necessary to perfect a security interest:
(a)
That is perfected under s. 409.308 (4), (5), (6), or (7);
(b)
That is perfected under s. 409.309 when it attaches;
(c)
In property subject to a statute, regulation, or treaty described in s. 409.311 (1);
(d)
In goods in possession of a bailee which is perfected under s. 409.312 (4) (a) or (b);
(e)
In certificated securities, documents, goods, or instruments which is perfected without filing, control, or possession under s. 409.312 (5), (6), or (7);
(f)
In collateral in the secured party's possession under s. 409.313;
(g)
In a certificated security which is perfected by delivery of the security certificate to the secured party under s. 409.313;
(h)
In deposit accounts, electronic chattel paper, electronic documents, investment property, or letter-of-credit rights which is perfected by control under s. 409.314;
(i)
In proceeds which is perfected under s. 409.315; or
(j)
That is perfected under s. 409.316.
(3)
Assignment of perfected security interest. If a secured party assigns a perfected security interest or agricultural lien, a filing under this chapter is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
History:  2001 a. 10; 2009 a. 322.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.311 - Perfection of security interests in property subject to certain statutes, regulations, and treaties.

409.311
Perfection of security interests in property subject to certain statutes, regulations, and treaties.
(1)
Security interest subject to other law. Except as otherwise provided in sub. (4), the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:
(a)
A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt s. 409.310 (1).
(b)
The following vehicle title statutes: ss. 342.19 and 342.20.
(bm)
The following boat title statutes: ss. 30.57, 30.572, and 30.573.
(c)
A statute of another jurisdiction which provides for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.
(d)
Sections 182.025 and 190.11 and other statutes providing for central filing.
(e)
A master lease entered into by the state under s. 16.76 (4).
(f)
The manufactured home security interest provisions under subch. V of ch. 101.
(2)
Compliance with other law. Compliance with the requirements of a statute, regulation, or treaty described in sub. (1) for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this chapter. Except as otherwise provided in sub. (4) and ss. 409.313 and 409.316 (4) and (5) for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in sub. (1) may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.
(3)
Duration and renewal of perfection. Except as otherwise provided in sub. (4) and s. 409.316 (4) and (5), duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation, or treaty described in sub. (1) are governed by the statute, regulation, or treaty. In other respects, the security interest is subject to this chapter.
(4)
Inapplicability to certain inventory. During any period in which collateral subject to a statute specified in sub. (1) (b), (bm), or (f) is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person.
History:  2001 a. 10; 2011 a. 206.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.314 - Perfection by control.

409.314
Perfection by control.
(1)
Perfection by control. A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under s. 407.106, 409.104, 409.105, 409.106, or 409.107.
(2)
Specified collateral: time of perfection by control; continuation of perfection. A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under s. 407.106, 409.104, 409.105, or 409.107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
(3)
Investment property: time of perfection by control; continuation of perfection. A security interest in investment property is perfected by control under s. 409.106 from the time the secured party obtains control and remains perfected by control until:
(a)
The secured party does not have control; and
(b)
One of the following occurs:
1.
If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
2.
If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
3.
If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
History:  2001 a. 10; 2009 a. 322.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.317 - Interests that take priority over or take free of security interest or agricultural lien.

409.317
Interests that take priority over or take free of security interest or agricultural lien.
(1)
Conflicting security interests and rights of lien creditors. A security interest or agricultural lien is subordinate to the rights of:
(a)
A person entitled to priority under s. 409.322; and
(b)
Except as otherwise provided in sub. (5), a person that becomes a lien creditor before the earlier of the time:
1.
The security interest or agricultural lien is perfected; or
2.
One of the conditions specified in s. 409.203 (2) (c) is met and a financing statement covering the collateral is filed.
(2)
Buyers that receive delivery. Except as otherwise provided in sub. (5), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(3)
Lessees that receive delivery. Except as otherwise provided in sub. (5), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(4)
Licensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
(5)
Purchase-money security interest. Except as otherwise provided in ss. 409.320 and 409.321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.
History:  2001 a. 10; 2009 a. 322; 2011 a. 206.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.318 - No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.

409.318
No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.
(1)
Seller retains no interest. A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.
(2)
Deemed rights of debtor if buyer's security interest unperfected. For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.319 - Rights and title of consignee with respect to creditors and purchasers.

409.319
Rights and title of consignee with respect to creditors and purchasers.
(1)
Consignee has consignor's rights. Except as otherwise provided in sub. (2), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer.
(2)
Applicability of other law. For purposes of determining the rights of a creditor of a consignee, law other than this chapter determines the rights and title of a consignee while goods are in the consignee's possession if, under this subchapter, a perfected security interest held by the consignor would have priority over the rights of the creditor.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.320 - Buyer of goods.

409.320
Buyer of goods.
(1)
Buyer in ordinary course of business. Except as otherwise provided in sub. (5), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.
(2)
Buyer of consumer goods. Except as otherwise provided in sub. (5), a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys:
(a)
Without knowledge of the security interest;
(b)
For value;
(c)
Primarily for the buyer's personal, family, or household purposes; and
(d)
Before the filing of a financing statement covering the goods.
(3)
Effectiveness of filing for sub. (2). To the extent that it affects the priority of a security interest over a buyer of goods under sub. (2), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by s. 409.316 (1) and (2).
(4)
Buyer in ordinary course of business at wellhead or minehead. A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
(5)
Possessory security interest not affected. Subsections (1) and (2) do not affect a security interest in goods in the possession of the secured party under s. 409.313.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.321 - Licensee of general intangible and lessee of goods in ordinary course of business.

409.321
Licensee of general intangible and lessee of goods in ordinary course of business.
(1)
Licensee in ordinary course of business. In this section, “licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor's own usual or customary practices.
(2)
Rights of licensee in ordinary course of business. A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.
(3)
Rights of lessee in ordinary course of business. A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.323 - Future advances.

409.323
Future advances.
(1)
When priority based on time of advance. Except as otherwise provided in sub. (3), for purposes of determining the priority of a perfected security interest under s. 409.322 (1) (a), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:
(a)
Is made while the security interest is perfected only:
1.
Under s. 409.309 when it attaches; or
2.
Temporarily under s. 409.312 (5), (6), or (7); and
(b)
Is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under s. 409.309 or 409.312 (5), (6), or (7).
(2)
Lien creditor. Except as otherwise provided in sub. (3), a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than 45 days after the person becomes a lien creditor unless the advance is made:
(a)
Without knowledge of the lien; or
(b)
Pursuant to a commitment entered into without knowledge of the lien.
(3)
Buyer of receivables. Subsections (1) and (2) do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.
(4)
Buyer of goods. Except as otherwise provided in sub. (5), a buyer of goods other than a buyer in ordinary course of business takes free of a security interest to the extent that it secures advances made after the earlier of:
(a)
The time the secured party acquires knowledge of the buyer's purchase; or
(b)
Forty-five days after the purchase.
(5)
Advances made pursuant to commitment: priority of buyer of goods. Subsection (4) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the 45-day period.
(6)
Lessee of goods. Except as otherwise provided in sub. (7), a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:
(a) The time the secured party acquires knowledge of the lease; or
(b) Forty-five days after the lease contract becomes enforceable.
(7)
Advances made pursuant to commitment: priority of lessee of goods. Subsection (6) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the 45-day period.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.3245 - Priority of production-money security interests and agricultural liens.

409.3245
Priority of production-money security interests and agricultural liens.
(1)
Except as otherwise provided in subs. (3), (4), and (5), if the requirements of sub. (2) are satisfied, a perfected production-money security interest in production-money crops has priority over a conflicting security interest in the same crops to the extent of the production-money obligation secured by the production-money security interest and, except as otherwise provided in s. 409.327, also has priority in their identifiable proceeds.
(2)
A production-money security interest has priority under sub. (1) if:
(a)
The production-money security interest is perfected by filing when the production-money secured party first gives new value to enable the debtor to produce the crops;
(b)
The production-money secured party sends an authenticated notification by certified mail to the holder of the conflicting security interest not less than 20 or more than 30 days before the production-money secured party first gives new value to enable the debtor to produce the crops if the holder had filed a financing statement covering the crops before the date of the filing made by the production-money secured party; and
(c)
The notification states that the production-money secured party has or expects to acquire a production-money security interest in the debtor's crops and provides a description of the crops, the name and mailing address of the production-money secured party giving the notice, the name and mailing address of the debtor, the name and mailing address of the lender to whom notice is being sent, the date on which the transaction would take place, and the maximum amount of new value to be provided.
(3)
Except as otherwise provided in sub. (4) or (5), if more than one security interest qualifies for priority in the same collateral under sub. (1), the security interests rank according to priority in time of filing under s. 409.322 (1).
(4)
To the extent that a person holding a perfected security interest in production-money crops that are the subject of a production-money security interest gives new value to enable the debtor to produce the production-money crops and the value is in fact used for the production of the production-money crops, the security interests rank according to priority in time of filing under s. 409.322 (1).
(5)
To the extent that a person holds both an agricultural lien and a production-money security interest in the same collateral securing the same obligations, the rules of priority applicable to agricultural liens govern priority.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.325 - Priority of security interests in transferred collateral.

409.325
Priority of security interests in transferred collateral.
(1)
Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
(a)
The debtor acquired the collateral subject to the security interest created by the other person;
(b)
The security interest created by the other person was perfected when the debtor acquired the collateral; and
(c)
There is no period thereafter when the security interest is unperfected.
(2)
Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest:
(a)
Otherwise would have priority solely under s. 409.322 (1) or 409.324; or
(b)
Arose solely under s. 402.711 (3) or 411.508 (5).
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.326 - Priority of security interests created by new debtor.

409.326
Priority of security interests created by new debtor.
(1)
Subordination of security interest created by new debtor. Subject to sub. (2), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of s. 409.316 (9) (a) or 409.508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement.
(2)
Priority under other provisions; multiple original debtors. The other provisions of this subchapter determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in sub. (1). However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.
History:  2001 a. 10; 2011 a. 206.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.327 - Priority of security interests in deposit account.

409.327
Priority of security interests in deposit account.
The following rules govern priority among conflicting security interests in the same deposit account:
(1)
Control by secured party. A security interest held by a secured party having control of the deposit account under s. 409.104 has priority over a conflicting security interest held by a secured party that does not have control.
(2)
Priority in time of control. Except as otherwise provided in subs. (3) and (4), security interests perfected by control under s. 409.314 rank according to priority in time of obtaining control.
(3)
Priority of bank regarding deposit account. Except as otherwise provided in sub. (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.
(4)
Priority over bank regarding deposit account. A security interest perfected by control under s. 409.104 (1) (c) has priority over a security interest held by the bank with which the deposit account is maintained.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.328 - Priority of security interests in investment property.

409.328
Priority of security interests in investment property.
The following rules govern priority among conflicting security interests in the same investment property:
(1)
Control by secured party. A security interest held by a secured party having control of investment property under s. 409.106 has priority over a security interest held by a secured party that does not have control of the investment property.
(2)
Priority in time of control. Except as otherwise provided in subs. (3) and (4), conflicting security interests held by secured parties each of which has control under s. 409.106 rank according to priority in time of:
(a)
If the collateral is a security, obtaining control;
(b)
If the collateral is a security entitlement carried in a securities account and:
1.
If the secured party obtained control under s. 408.106 (4) (a), the secured party's becoming the person for which the securities account is maintained;
2.
If the secured party obtained control under s. 408.106 (4) (b), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
3.
If the secured party obtained control through another person under s. 408.106 (4) (c), the time on which priority would be based under this subsection if the other person were the secured party; or
(c)
If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in s. 409.106 (2) (b) with respect to commodity contracts carried or to be carried with the commodity intermediary.
(3)
Priority of securities intermediary regarding entitlement or account. A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
(4)
Priority of securities intermediary regarding contract or account. A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(5)
Priority in certificated securities. A security interest in a certificated security in registered form which is perfected by taking delivery under s. 409.313 (1) and not by control under s. 409.314 has priority over a conflicting security interest perfected by a method other than control.
(6)
Priority of conflicting security interests; intermediaries. Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under s. 409.106 rank equally.
(7)
Priority of conflicting security interests; others. In all other cases, priority among conflicting security interests in investment property is governed by ss. 409.322 and 409.323.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.329 - Priority of security interests in letter-of-credit right.

409.329
Priority of security interests in letter-of-credit 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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.330 - Priority of purchaser of chattel paper or instrument.

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

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.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.332 - Transfer of money; transfer of funds from deposit account.

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 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.