reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.311 - Accord and satisfaction by use of instrument.

403.311
Accord and satisfaction by use of instrument.
(1)
Subsections (2) to (4) apply if a person against whom a claim is asserted proves that all of the following conditions have been met:
(a)
That person in good faith tendered an instrument to the claimant as full satisfaction of the claim.
(b)
The amount of the claim was unliquidated or subject to a bona fide dispute.
(c)
The claimant obtained payment of the instrument.
(2)
Unless sub. (3) applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
(3)
Subject to sub. (4), a claim is not discharged under sub. (2) if any of the following applies:
(a)
The claimant, if an organization, proves that all of the following conditions have been met:
1.
Within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office or place.
2.
The instrument or accompanying communication was not received by that designated person, office or place.
(b)
The claimant, whether or not an organization, proves that within 90 days after payment of the instrument the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with par. (a) 1.
(4)
A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.401 - Signature.

403.401
Signature.
(1)
A person is not liable on an instrument unless the person signed the instrument, or the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under s. 403.402.
(2)
A signature may be made manually or by means of a device or machine and may be made by the use of any name, including a trade or assumed name, or by a word, mark or symbol executed or adopted by a person with present intention to authenticate a writing.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.402 - Signature by representative.

403.402
Signature by representative.
(1)
If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent that the represented person would be bound if the signature were on a simple contract. If the represented person is bound, the signature of the representative is the authorized signature of the represented person and the represented person is liable on the instrument, whether or not identified in the instrument.
(2)
If a representative signs the name of the representative to an instrument and the signature is an authorized signature of the represented person, the following rules apply:
(a)
If the form of the signature shows unambiguously that the signature is made on behalf of the represented person who is identified in the instrument, the representative is not liable on the instrument.
(b)
Subject to sub. (3), if the form of the signature does not show unambiguously that the signature is made in a representative capacity or the represented person is not identified in the instrument, the representative is liable on the instrument to a holder in due course that took the instrument without notice that the representative was not intended to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless the representative proves that the original parties did not intend the representative to be liable on the instrument.
(3)
If a representative signs the name of the representative as drawer of a check without indication of the representative status and the check is payable from an account of the represented person who is identified on the check, the signer is not liable on the check if the signature is an authorized signature of the represented person.
History:  1995 a. 449.
Sub. (3) does not shield a representative signer from claims of fraud in signing a corporate check. However, reliance upon a bookkeeper's signing of a check on the instruction of a superior that the corporation was solvent was not justifiable reliance that would sustain a claim of fraud. Korhumel Steel Corp. v. Wandler, 229 Wis. 2d 395, 600 N.W.2d 592 (Ct. App. 1999), 98-2042.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.403 - Unauthorized signature.

403.403
Unauthorized signature.
(1)
Unless otherwise provided in this chapter or ch. 404, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this chapter.
(2)
If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
(3)
The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this chapter which makes the unauthorized signature effective for the purposes of this chapter.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.404 - Impostors; fictitious payees.

403.404
Impostors; fictitious payees.
(1)
If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an endorsement of the instrument by any person in the name of the payee is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(2)
If a person whose intent determines to whom an instrument is payable under s. 403.110 (1) or (2) does not intend the person identified as payee to have any interest in the instrument or if the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special endorsement:
(a)
Any person in possession of the instrument is its holder.
(b)
An endorsement by any person in the name of the payee stated in the instrument is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(3)
Under sub. (1) or (2), an endorsement is made in the name of a payee if it is made in a name substantially similar to that of the payee or if the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
(4)
With respect to an instrument to which sub. (1) or (2) applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent that the failure to exercise ordinary care contributed to the loss.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.405 - Employer's responsibility for fraudulent endorsement by employee.

403.405
Employer's responsibility for fraudulent endorsement by employee.
(1)
In this section:
(a)
“Employee" includes an independent contractor and employee of an independent contractor retained by the employer.
(b)
“Fraudulent endorsement" means, in the case of an instrument payable to the employer, a forged endorsement purporting to be that of the employer or, in the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be that of the person identified as payee.
(c)
1.
“Responsibility" with respect to instruments means authority to do any of the following:
a.
Sign or endorse instruments on behalf of the employer.
b.
Process instruments received by the employer for bookkeeping purposes, for deposit to an account or for other disposition.
c.
Prepare or process instruments for issue in the name of the employer.
d.
Supply information determining the names or addresses of payees of instruments to be issued in the name of the employer.
e.
Control the disposition of instruments to be issued in the name of the employer.
f.
Act otherwise in a responsible capacity with respect to instruments.
2.
“Responsibility" does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.
(2)
For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent endorsement of the instrument, the endorsement is effective as the endorsement of the person to whom the instrument is payable if it is made in the name of that person. If the person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent that the failure to exercise ordinary care contributed to the loss.
(3)
Under sub. (2), an endorsement is made in the name of the person to whom an instrument is payable if the endorsement is made in a name substantially similar to the name of that person or if the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.406 - Negligence contributing to forged signature or alteration of instrument.

403.406
Negligence contributing to forged signature or alteration of instrument.
(1)
A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
(2)
Under sub. (1), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
(3)
Under sub. (1), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under sub. (2), the burden of proving failure to exercise ordinary care is on the person precluded.
History:  1995 a. 449.
Although a claim for misrepresentation may “supplement" the provisions of the UCC, it may not supplant them. A bank customer's failure to comply with ss. 403.406 and 404.406 precluded the customer's claim for strict-liability misrepresentation. Weber, Leicht, Gohr & Associates v. Liberty Bank, 2000 WI App 249, 239 Wis. 2d 461, 620 N.W.2d 472, 99-1557.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.407 - Alteration.

403.407
Alteration.
(1)
“Alteration" means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party or an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(2)
Except as provided in sub. (3), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
(3)
A payer bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument according to its original terms, or, in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.408 - Drawee not liable on unaccepted draft.

403.408
Drawee not liable on unaccepted draft.
A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.409 - Acceptance of draft; certified check.

403.409
Acceptance of draft; certified check.
(1)
“Acceptance" means the drawee's signed agreement to pay a draft as presented. The acceptance shall be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.
(2)
A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue or has been dishonored.
(3)
If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
(4)
“Certified check" means a check accepted by the bank on which it is drawn. Acceptance may be made as stated in sub. (1) or by a writing on the check which indicates that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.410 - Acceptance varying draft.

403.410
Acceptance varying draft.
(1)
If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.
(2)
The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.
(3)
If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.411 - Refusal to pay cashier's checks, teller's checks and certified checks.

403.411
Refusal to pay cashier's checks, teller's checks and certified checks.
(1)
In this section, “obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer.
(2)
If the obligated bank wrongfully refuses to pay a cashier's check or certified check, wrongfully stops payment of a teller's check or wrongfully refuses to pay a dishonored teller's check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
(3)
Expenses or consequential damages under sub. (2) are not recoverable if the refusal of the obligated bank to pay occurs because of any of the following:
(a)
The bank suspends payments.
(b)
The obligated bank asserts a claim or defense of the obligated bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument, including a claim or defense that arises from accepting, in good faith and exercising ordinary care, an instrument as payment for a cashier's check or teller's check, where the instrument accepted as payment for the cashier's check or teller's check was, and the obligated bank was without notice that the instrument was, stolen, forged, drawn on a fictitious account, drawn on an account with insufficient funds, or otherwise fraudulent or worthless.
(c)
The obligated bank has a reasonable doubt as to whether the person demanding payment is the person entitled to enforce the instrument.
(d)
Payment is prohibited by law.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.412 - Obligation of issuer of note or cashier's check.

403.412
Obligation of issuer of note or cashier's check.
The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument according to its terms at the time that it was issued or, if not issued, at the time that it first came into possession of a holder or, if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in ss. 403.115 and 403.407. The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under s. 403.415.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.413 - Obligation of acceptor.

403.413
Obligation of acceptor.
(1)
The acceptor of a draft is obliged to pay the draft according to its terms at the time that it was accepted, even though the acceptance states that the draft is payable “as originally drawn" or equivalent terms, if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in ss. 403.115 and 403.407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an endorser who paid the draft under s. 403.414 or 403.415.
(2)
If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised, and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time that it was taken by the holder in due course.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.414 - Obligation of drawer.

403.414
Obligation of drawer.
(1)
This section does not apply to cashier's checks or other drafts drawn on the drawer.
(2)
If an unaccepted draft is dishonored, the drawer is obliged to pay the draft according to its terms at the time that it was issued or, if not issued, at the time that it first came into possession of a holder, or if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in ss. 403.115 and 403.407. The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft under s. 403.415.
(3)
If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(4)
If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an endorser under s. 403.415 (1) and (3).
(5)
If a draft states that it is drawn “without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under sub. (2) to pay the draft if the draft is not a check. A disclaimer of the liability stated in sub. (2) is not effective if the draft is a check.
(6)
If a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, the drawee suspends payments after expiration of the 30-day period without paying the check, and because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer, to the extent deprived of funds, may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
(7)
A person who issues a check or other draft that is not honored upon presentment, because the drawer does not have an account with the drawee or because the drawer does not have sufficient funds in his or her account or sufficient credit with the drawee, is liable for all reasonable costs and expenses in connection with the collection of the amount for which the check or draft was written, except recovery is not permitted under this section if a person licensed under s. 138.09 or 138.14 or any other person collected or could have collected a charge for that check or other draft under s. 422.202 (1) (d) or (2m).
History:  1995 a. 449; 1997 a. 331; 2009 a. 405.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.415 - Obligation of endorser.

403.415
Obligation of endorser.
(1)
Subject to subs. (2) to (5) and to s. 403.419 (4), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time that it was endorsed, or if the endorser endorsed an incomplete instrument, according to its terms when completed, to the extent stated in ss. 403.115 and 403.407. The obligation of the endorser is owed to a person entitled to enforce the instrument or to a subsequent endorser who paid the instrument under this section.
(2)
If an endorsement states that it is made “without recourse" or otherwise disclaims liability of the endorser, the endorser is not liable under sub. (1) to pay the instrument.
(3)
If notice of dishonor of an instrument is required by s. 403.503 and notice of dishonor complying with that section is not given to an endorser, the liability of the endorser under sub. (1) is discharged.
(4)
If a draft is accepted by a bank after an endorsement is made, the liability of the endorser under sub. (1) is discharged.
(5)
If an endorser of a check is liable under sub. (1) and the check is not presented for payment, or given to a depositary bank for collection, within 30 days after the day on which the endorsement was made, the liability of the endorser under sub. (1) is discharged.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.416 - Transfer warranties.

403.416
Transfer warranties.
(1)
A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that all of the following apply:
(a)
The warrantor is a person entitled to enforce the instrument.
(b)
All signatures on the instrument are authentic and authorized.
(c)
The instrument has not been altered.
(d)
The instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor.
(e)
The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.
(f)
If the instrument is a demand draft, the creation of the instrument according to the terms on its face was authorized by the person identified as the drawer.
(2)
A person to whom the warranties under sub. (1) are made and who took the instrument in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
(3)
The warranties stated in sub. (1) may not be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under sub. (2) is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(4)
A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
History:  1995 a. 449; 2003 a. 86.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.418 - Payment or acceptance by mistake.

403.418
Payment or acceptance by mistake.
(1)
Except as provided in sub. (3), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped pursuant to s. 404.403 or that the signature of the drawer of the draft was authorized, the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise ordinary care in paying or accepting the draft.
(2)
Except as provided in sub. (3), if an instrument has been paid or accepted by mistake and the case is not covered by sub. (1), the person paying or accepting may, to the extent permitted by the law governing mistake and restitution, recover the payment from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance.
(3)
The remedies provided by sub. (1) or (2) may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by s. 403.417 or 404.407.
(4)
Notwithstanding s. 404.215, if an instrument is paid or accepted by mistake and the payer or acceptor recovers payment or revokes acceptance under sub. (1) or (2), the instrument is considered not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.419 - Instruments signed for accommodation.

403.419
Instruments signed for accommodation.
(1)
If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party") and another party to the instrument (“accommodation party") signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party “for accommodation".
(2)
An accommodation party may sign the instrument as maker, drawer, acceptor or endorser and, subject to sub. (4), is obliged to pay the instrument in the capacity in which the accommodation party signs. The obligation of an accommodation party may be enforced notwithstanding any statute of frauds and whether or not the accommodation party receives consideration for the accommodation.
(3)
A person signing an instrument is presumed to be an accommodation party and there is notice that the instrument is signed for accommodation if the signature is an anomalous endorsement or is accompanied by words indicating that the signer is acting as surety or guarantor with respect to the obligation of another party to the instrument. Except as provided in s. 403.605, the obligation of an accommodation party to pay the instrument is not affected by the fact that the person enforcing the obligation had notice when the instrument was taken by that person that the accommodation party signed the instrument for accommodation.
(4)
If the signature of a party to an instrument is accompanied by words indicating unambiguously that the party is guaranteeing collection rather than payment of the obligation of another party to the instrument, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument only if any of the following occurs:
(a)
Execution of judgment against the other party has been returned unsatisfied.
(b)
The other party is insolvent or in an insolvency proceeding.
(c)
The other party cannot be served with process.
(d)
It is otherwise apparent that payment cannot be obtained from the other party.
(5)
An accommodation party who pays the instrument is entitled to reimbursement from the accommodated party and is entitled to enforce the instrument against the accommodated party. An accommodated party who pays the instrument has no right of recourse against, and is not entitled to contribution from, an accommodation party.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.420 - Conversion of instrument.

403.420
Conversion of instrument.
(1)
The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by the issuer or acceptor of the instrument or by a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a copayee.
(2)
In an action under sub. (1), the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.
(3)
A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.501 - Presentment.

403.501
Presentment.
(1)
“Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument to do any of the following:
(a)
Pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank.
(b)
Accept a draft made to the drawee.
(2)
The following rules are subject to ch. 404, agreement of the parties, and clearinghouse rules and the like:
(a)
Presentment may be made at the place of payment of the instrument and shall be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one of 2 or more makers, acceptors, drawees or other payers.
(b)
Upon demand of the person to whom presentment is made, the person making presentment shall do all of the following:
1.
Exhibit the instrument.
2.
Give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so.
3.
Sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.
(c)
Without dishonoring the instrument, the party to whom presentment is made may return the instrument for lack of a necessary endorsement or refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties or other applicable law or rule.
(d)
The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cutoff hour not earlier than 2 p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cutoff hour.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.503 - Notice of dishonor.

403.503
Notice of dishonor.
(1)
The obligation of an endorser stated in s. 403.415 (1) and the obligation of a drawer stated in s. 403.414 (4) may not be enforced unless the endorser or drawer is given notice of dishonor of the instrument complying with this section or notice of dishonor is excused under s. 403.504 (2).
(2)
Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
(3)
Subject to s. 403.504 (3), with respect to an instrument taken for collection by a collecting bank, notice of dishonor shall be given by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument or by any other person within 30 days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor shall be given within 30 days following the day on which dishonor occurs.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.504 - Excused presentment and notice of dishonor.

403.504
Excused presentment and notice of dishonor.
(1)
Presentment for payment or acceptance of an instrument is excused if any of the following conditions exists:
(a)
The person entitled to present the instrument cannot with reasonable diligence make presentment.
(b)
The maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings.
(c)
By the terms of the instrument, presentment is not necessary to enforce the obligation of endorsers or the drawer.
(d)
The drawer or endorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted.
(e)
The drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.
(2)
Notice of dishonor is excused if, by the terms of the instrument, notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument or if the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
(3)
Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.505 - Evidence of dishonor.

403.505
Evidence of dishonor.
(1)
The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:
(a)
A document regular in form as provided in sub. (2) which purports to be a protest.
(b)
A purported stamp or writing of the drawee, payer bank or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor.
(c)
A book or record of the drawee, payer bank or collecting bank kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.
(2)
A protest is a certificate of dishonor made by a U.S. consul or vice consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. A protest may be made upon information satisfactory to that person. The protest shall identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.601 - Discharge and effect of discharge.

403.601
Discharge and effect of discharge.
(1)
The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.
(2)
Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.602 - Payment.

403.602
Payment.
(1)
Subject to sub. (2), an instrument is paid to the extent that payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under s. 403.306 by another person.
(2)
The obligation of a party to pay the instrument is not discharged under sub. (1) if any of the following applies:
(a)
A claim to the instrument under s. 403.306 is enforceable against the party receiving payment and payment is made with knowledge by the payer that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or, in the case of an instrument other than a cashier's check, teller's check or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument.
(b)
The person making payment knows that the instrument is a stolen instrument and pays a person with knowledge that the person is in wrongful possession of the instrument.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.603 - Tender of payment.

403.603
Tender of payment.
(1)
If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
(2)
If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
(3)
If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is considered to have made tender of payment on the due date to the person entitled to enforce the instrument.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 403 - Uniform commercial code — negotiable instruments. › 403.604 - Discharge by cancellation or renunciation.

403.604
Discharge by cancellation or renunciation.
(1)
A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument by doing any of the following:
(a)
An intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation or cancellation of the instrument, cancellation or striking out of the party's signature or the addition of words to the instrument indicating discharge.
(b)
Agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
(2)
Cancellation or striking out of an endorsement pursuant to sub. (1) (a) does not affect the status and rights of a party derived from the endorsement.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.102 - Applicability.

404.102
Applicability.
(1)
The extent that items within this chapter are also within chs. 403 and 408, they are subject to those chapters. If there is conflict, this chapter governs ch. 403, but ch. 408 governs this chapter.
(2)
The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.103 - Variation by agreement; measure of damages; action constituting ordinary care.

404.103
Variation by agreement; measure of damages; action constituting ordinary care.
(1)
The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.
(2)
Federal reserve regulations and operating circulars, clearinghouse rules, and the like, have the effect of agreements under sub. (1), whether or not specifically assented to by all parties interested in items handled.
(3)
Action or nonaction approved by this chapter or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this chapter, is prima facie the exercise of ordinary care.
(4)
The specification or approval of certain procedures by this chapter is not disapproval of other procedures that may be reasonable under the circumstances.
(5)
The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.
History:  1991 a. 304 s. 51; 1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.105 - “ Bank"; “collecting bank"; “depository bank"; “intermediary bank"; “payer bank"; “presenting bank".

404.105
“ Bank"; “collecting bank"; “depository bank"; “intermediary bank"; “payer bank"; “presenting bank".
In this chapter:
(1)
“Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company.
(2)
“Collecting bank" means a bank handling an item for collection except the payer bank.
(3)
“Depositary bank" means the first bank to take an item even though it is also the payer bank, unless the item is presented for immediate payment over the counter.
(4)
“Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payer bank.
(5)
“Payer bank" means a bank that is the drawee of a draft.
(6)
“Presenting bank" means a bank presenting an item except a payer bank.
History:  1983 a. 189; 1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.106 - Payable through or payable at bank; collecting bank.

404.106
Payable through or payable at bank; collecting bank.
(1)
If an item states that it is “payable through" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item and the item may be presented for payment only by or through the bank.
(2)
If an item states that it is “payable at" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item and the item may be presented for payment only by or through the bank.
(3)
If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a codrawee or a collecting bank, the bank is a collecting bank.
History:  1995 a. 449.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.107 - Separate office of a bank.

404.107
Separate office of a bank.
A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this chapter and under ch. 403.
History:  1995 a. 449 s. 31; Stats. 1995 s. 404.107.
2023 Wisconsin Statutes & Annotations › Chapter 404 - Uniform commercial code — bank deposits and collections. › 404.108 - Time of receipt of items.

404.108
Time of receipt of items.
(1)
For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books.
(2)
An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.
History:  1995 a. 449 s. 31; Stats. 1995 s. 404.108.