reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.302 - Rights of purchaser.

408.302
Rights of purchaser.
(1)
Except as otherwise provided in subs. (2) and (3), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.
(2)
A purchaser of a limited interest acquires rights only to the extent of the interest purchased.
(3)
A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.
History:  1997 a. 297; 2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.303 - Protected purchaser.

408.303
Protected purchaser.
(1)
In this chapter, “protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who:
(a)
Gives value;
(b)
Does not have notice of any adverse claim to the security; and
(c)
Obtains control of the certificated or uncertificated security.
(2)
In addition to acquiring the rights of a purchaser, a protected purchaser also acquires its interest in the security free of any adverse claim.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.304 - Endorsement.

408.304
Endorsement.
(1)
An endorsement may be in blank or special. An endorsement in blank includes an endorsement to bearer. A special endorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank endorsement to a special endorsement.
(2)
An endorsement purporting to be only an endorsement of part of a security certificate representing units intended by the issuer to be separately transferable is effective to the extent of the endorsement.
(3)
An endorsement, whether special or in blank, does not constitute a transfer until delivery of the certificate on which it appears or, if the endorsement is on a separate document, until delivery of both the document and the certificate.
(4)
If a security certificate in registered form has been delivered to a purchaser without a necessary endorsement, the purchaser may become a protected purchaser only when the endorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforceable right to have any necessary endorsement supplied.
(5)
An endorsement of a security certificate in bearer form may give notice of an adverse claim to the certificate, but it does not otherwise affect a right to registration that the holder possesses.
(6)
Unless otherwise agreed, a person making an endorsement assumes only the obligations provided in s. 408.108 and not an obligation that the security will be honored by the issuer.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.305 - Instruction.

408.305
Instruction.
(1)
If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly.
(2)
Unless otherwise agreed, a person initiating an instruction assumes only the obligations imposed by s. 408.108 and not an obligation that the security will be honored by the issuer.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.306 - Effect of guaranteeing signature, endorsement or instruction.

408.306
Effect of guaranteeing signature, endorsement or instruction.
(1)
A person who guarantees a signature of an endorser of a security certificate warrants that at the time of signing:
(a)
The signature was genuine;
(b)
The signer was an appropriate person to endorse, or, if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and
(c)
The signer had legal capacity to sign.
(2)
A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:
(a)
The signature was genuine;
(b)
The signer was an appropriate person to originate the instruction, or, if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and
(c)
The signer had legal capacity to sign.
(3)
A person who specially guarantees the signature of an originator of an instruction makes the warranties of a signature guarantor under sub. (2) and also warrants that at the time the instruction is presented to the issuer:
(a)
The person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and
(b)
The transfer of the uncertificated security requested in the instruction will be registered by the issuer free from all liens, security interests, restrictions and claims other than those specified in the instruction.
(4)
A guarantor under subs. (1) and (2) or a special guarantor under sub. (3) does not otherwise warrant the rightfulness of the transfer.
(5)
A person who guarantees an endorsement of a security certificate makes the warranties of a signature guarantor under sub. (1) and also warrants the rightfulness of the transfer in all respects.
(6)
A person who guarantees an instruction requesting the transfer of an uncertificated security makes the warranties of a special signature guarantor under sub. (3) and also warrants the rightfulness of the transfer in all respects.
(7)
An issuer may not require a special guaranty of signature, a guaranty of endorsement or a guaranty of instruction as a condition to registration of transfer.
(8)
The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An endorser or originator of an instruction whose signature, endorsement or instruction has been guaranteed is liable to a guarantor for any loss suffered by the guarantor as a result of breach of the warranties of the guarantor.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.307 - Purchaser's right to requisites for registration of transfer.

408.307
Purchaser's right to requisites for registration of transfer.
Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need not comply unless the purchaser pays the necessary expenses. If the transferor fails within a reasonable time to comply with the demand, the purchaser may reject or rescind the transfer.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.401 - Duty of issuer to register transfer.

408.401
Duty of issuer to register transfer.
(1)
If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if:
(a)
Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name;
(b)
The endorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
(c)
Reasonable assurance is given that the endorsement or instruction is genuine and authorized under s. 408.402;
(d)
Any applicable law relating to the collection of taxes has been complied with;
(e)
The transfer does not violate any restriction on transfer imposed by the issuer in accordance with s. 408.204;
(f)
A demand that the issuer not register transfer has not become effective under s. 408.403, or the issuer has complied with s. 408.403 (2) but no legal process or indemnity bond is obtained as provided in s. 408.403 (4); and
(g)
The transfer is in fact rightful or is to a protected purchaser.
(2)
If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.402 - Assurance that endorsement or instruction is effective.

408.402
Assurance that endorsement or instruction is effective.
(1)
In this section:
(a)
“Guaranty of the signature" means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.
(b)
“Appropriate evidence of appointment or incumbency" means:
1.
In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within 60 days before the date of presentation for transfer; or
2.
In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence that the issuer reasonably considers appropriate.
(1m)
An issuer may require the following assurance that each necessary endorsement or each instruction is genuine and authorized:
(a)
In all cases, a guaranty of the signature of the person making an endorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;
(b)
If the endorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;
(c)
If the endorsement is made or the instruction is originated by a fiduciary pursuant to s. 408.107 (1) (d) or (e), appropriate evidence of appointment or incumbency;
(d)
If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
(e)
If the endorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
(2)
An issuer may elect to require reasonable assurance beyond that specified in this section.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.403 - Demand that issuer not register transfer.

408.403
Demand that issuer not register transfer.
(1)
A person who is an appropriate person to make an endorsement or originate an instruction may demand that the issuer not register transfer of a security by communicating to the issuer a notification that identifies the registered owner and the issue of which the security is a part and provides an address for communications directed to the person making the demand. The demand is effective only if it is received by the issuer at a time and in a manner affording the issuer reasonable opportunity to act on it.
(2)
If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security after a demand that the issuer not register transfer has become effective, the issuer shall promptly communicate to the person who initiated the demand at the address provided in the demand and to the person who presented the security for registration of transfer or initiated the instruction requesting registration of transfer, a notification stating that:
(a)
The certificated security has been presented for registration of transfer or the instruction for registration of transfer of the uncertificated security has been received;
(b)
A demand that the issuer not register transfer had previously been received; and
(c)
The issuer will withhold registration of transfer for a period of time stated in the notification in order to provide the person who initiated the demand an opportunity to obtain legal process or an indemnity bond.
(3)
The period described in sub. (2) (c) may not exceed 30 days after the date of communication of the notification. A shorter period may be specified by the issuer if it is not manifestly unreasonable.
(4)
An issuer is not liable to a person who initiated a demand that the issuer not register transfer for any loss the person suffers as a result of registration of a transfer pursuant to an effective endorsement or instruction if the person who initiated the demand does not, within the time stated in the issuer's communication, either:
(a)
Obtain an appropriate restraining order, injunction or other process from a court of competent jurisdiction enjoining the issuer from registering the transfer; or
(b)
File with the issuer an indemnity bond, sufficient in the issuer's judgment to protect the issuer and any transfer agent, registrar or other agent of the issuer involved from any loss it or they may suffer by refusing to register the transfer.
(5)
This section does not relieve an issuer from liability for registering transfer pursuant to an endorsement or instruction that was not effective.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.404 - Wrongful registration.

408.404
Wrongful registration.
(1)
Except as otherwise provided in s. 408.406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:
(a)
Pursuant to an ineffective endorsement or instruction;
(b)
After a demand that the issuer not register transfer became effective under s. 408.403 (1) and the issuer did not comply with s. 408.403 (2);
(c)
After the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order or other legal process; or
(d)
By an issuer acting in collusion with the wrongdoer.
(2)
An issuer that is liable for wrongful registration of transfer under sub. (1) on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with a like security is governed by s. 408.210.
(3)
Except as otherwise provided in sub. (1) or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective endorsement or instruction.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.405 - Replacement of lost, destroyed or wrongfully taken security certificate.

408.405
Replacement of lost, destroyed or wrongfully taken security certificate.
(1)
If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed or wrongfully taken, the issuer shall issue a new certificate if the owner:
(a)
So requests before the issuer has notice that the certificate has been acquired by a protected purchaser;
(b)
Files with the issuer a sufficient indemnity bond; and
(c)
Satisfies other reasonable requirements imposed by the issuer.
(2)
If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer's liability is governed by s. 408.210. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.406 - Obligation to notify issuer of lost, destroyed or wrongfully taken security certificate.

408.406
Obligation to notify issuer of lost, destroyed or wrongfully taken security certificate.
If a security certificate has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, the owner may not assert against the issuer a claim for registering the transfer under s. 408.404 or a claim to a new security certificate under s. 408.405.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.407 - Authenticating trustee, transfer agent and registrar.

408.407
Authenticating trustee, transfer agent and registrar.
A person acting as authenticating trustee, transfer agent, registrar or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certificates has the same obligation to the holder or owner of a certificated or uncertificated security with regard to the particular functions performed as the issuer has in regard to those functions.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.501 - Securities account; acquisition of security entitlement from securities intermediary.

408.501
Securities account; acquisition of security entitlement from securities intermediary.
(1)
In this chapter, “securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(2)
Except as otherwise provided in subs. (4) and (5), a person acquires a security entitlement if a securities intermediary:
(a)
Indicates by book entry that a financial asset has been credited to the person's securities account;
(b)
Receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account; or
(c)
Becomes obligated under other law, regulation or rule to credit a financial asset to the person's securities account.
(3)
If a condition of sub. (2) has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.
(4)
If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially endorsed to the other person, and has not been endorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.
(5)
Issuance of a security is not establishment of a security entitlement.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.502 - Assertion of adverse claim against entitlement holder.

408.502
Assertion of adverse claim against entitlement holder.
An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against a person who acquires a security entitlement under s. 408.501 for value and without notice of the adverse claim.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.503 - Property interest of entitlement holder in financial asset held by securities intermediary.

408.503
Property interest of entitlement holder in financial asset held by securities intermediary.
(1)
To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in s. 408.511.
(2)
An entitlement holder's property interest with respect to a particular financial asset under sub. (1) is a prorated property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.
(3)
An entitlement holder's property interest with respect to a particular financial asset under sub. (1) may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under ss. 408.505 to 408.508.
(4)
(a)
An entitlement holder's property interest with respect to a particular financial asset under sub. (1) may be enforced against a purchaser of the financial asset or interest therein only if:
1.
Insolvency proceedings have been initiated by or against the securities intermediary;
2.
The securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;
3.
The securities intermediary violated its obligations under s. 408.504 by transferring the financial asset or interest therein to the purchaser; and
4.
The purchaser is not protected under sub. (5).
(b)
The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.
(5)
An action based on the entitlement holder's property interest with respect to a particular financial asset under sub. (1), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under s. 408.504.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.504 - Duty of securities intermediary to maintain financial asset.

408.504
Duty of securities intermediary to maintain financial asset.
(1)
A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.
(2)
Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to sub. (1).
(3)
A securities intermediary satisfies the duty in sub. (1) if:
(a)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(b)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.
(4)
This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.505 - Duty of securities intermediary with respect to payments and distributions.

408.505
Duty of securities intermediary with respect to payments and distributions.
(1)
A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:
(a)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(b)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(2)
A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.506 - Duty of securities intermediary to exercise rights as directed by entitlement holder.

408.506
Duty of securities intermediary to exercise rights as directed by entitlement holder.
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.507 - Duty of securities intermediary to comply with entitlement order.

408.507
Duty of securities intermediary to comply with entitlement order.
(1)
A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if:
(a)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(b)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(2)
If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.508 - Duty of securities intermediary to change entitlement holder's position to other form of security holding.

408.508
Duty of securities intermediary to change entitlement holder's position to other form of security holding.
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.509 - Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary; and exercise of rights of entitlement holder.

408.509
Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary; and exercise of rights of entitlement holder.
(1)
If the substance of a duty imposed upon a securities intermediary by ss. 408.504 to 408.508 is the subject of any other statute, regulation or rule, compliance with that statute, regulation or rule satisfies the duty.
(2)
To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(3)
The obligation of a securities intermediary to perform the duties imposed by ss. 408.504 to 408.508 is subject to:
(a)
Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and
(b)
Rights of the securities intermediary under any other law, regulation, rule or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(4)
Sections 408.504 to 408.508 do not require a securities intermediary to take any action that is prohibited by any other statute, regulation or rule.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.510 - Rights of purchaser of security entitlement from entitlement holder.

408.510
Rights of purchaser of security entitlement from entitlement holder.
(1)
In a case not covered by the priority rules in ch. 409 or the rules stated in sub. (3), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.
(2)
If an adverse claim could not have been asserted against an entitlement holder under s. 408.502, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.
(3)
In a case not covered by the priority rules in ch. 409, a purchaser for value of a security entitlement, or an interest therein, who obtains control has priority over a purchaser of a security entitlement, or an interest therein, who does not obtain control. Except as otherwise provided in sub. (4), purchasers who have control rank according to priority in time of:
(a)
The purchaser's becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under s. 408.106 (4) (a);
(b)
The securities intermediary's agreement to comply with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under s. 408.106 (4) (b); or
(c)
If the purchaser 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.
(4)
A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.
History:  1997 a. 297; 2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.511 - Priority among security interests and entitlement holders.

408.511
Priority among security interests and entitlement holders.
(1)
Except as otherwise provided in subs. (2) and (3), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(2)
A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(3)
If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 408 - Uniform commercial code — investment securities. › 408.603 - Saving provision.

408.603
Saving provision.
(1)
If a security interest in a security is perfected on or before July 1, 1998, and the action by which the security interest was perfected would suffice to perfect a security interest under this chapter, no further action is required to continue perfection.
(2)
If a security interest in a security is perfected on or before July 1, 1998, under ch. 408, 1995 stats., but the action by which the security interest was perfected would not suffice to perfect a security interest under this chapter, the security interest remains perfected for a period of 4 months after July 1, 1998, and continues perfected thereafter if appropriate action to perfect under this chapter is taken within that period. If a security interest is perfected on or before July 1, 1998, and the security interest can be perfected by filing under this chapter, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.
History:  1997 a. 297.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.101 - Short title.

409.101
Short title.
This chapter may be cited as uniform commercial code — secured transactions.
History:  2001 a. 10.
Revised UCC Article 9: Compliance Tips for Creditors and Debtors. Farnam and Pleviak. Wis. Law. July/Aug 2013.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.1035 - Production-money crops; production-money obligation; production-money security interest; burden of establishing.

409.1035
Production-money crops; production-money obligation; production-money security interest; burden of establishing.
(1)
A security interest in crops is a production-money security interest to the extent that the crops are production-money crops.
(2)
If the extent to which a security interest is a production-money security interest depends on the application of a payment to a particular obligation, the payment must be applied in the following order until fully applied:
(a)
First, to all production-money obligations secured by production-money crops, in the order in which those obligations were incurred;
(b)
Second, to all obligations secured by conflicting security interests in the production-money crops referred to in par. (a), in the order in which those obligations were incurred; and
(c)
Third, to all unsecured obligations of the debtor making the payment, in the order in which those obligations were incurred.
(3)
A production-money security interest does not lose its status as such, even if:
(a)
The production-money crops also secure an obligation that is not a production-money obligation;
(b)
Collateral that is not production-money crops also secures the production-money obligation; or
(c)
The production-money obligation has been renewed, refinanced, or restructured.
(4)
A secured party claiming a production-money security interest has the burden of establishing the extent to which the security interest is a production-money security interest.
(5)
This section does not affect any right to proceeds under s. 409.315.
(6)
A person may not claim a purchase-money security interest in crops grown, growing, or to be grown.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.104 - Control of deposit account.

409.104
Control of deposit account.
(1)
Requirements for control. A secured party has control of a deposit account if:
(a)
The secured party is the bank with which the deposit account is maintained;
(b)
The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor; or
(c)
The secured party becomes the bank's customer with respect to the deposit account.
(2)
Debtor's right to direct disposition. A secured party that has satisfied sub. (1) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.105 - Control of electronic chattel paper.

409.105
Control of electronic chattel paper.
(1m)
General rule: control of electronic chattel paper. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(2m)
Specific facts giving control. Without limiting the generality of sub. (1m), a system satisfies sub. (1m) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:
(a)
A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in pars. (d) to (f), unalterable;
(b)
The authoritative copy identifies the secured party as the assignee of the record or records;
(c)
The authoritative copy is communicated to and maintained by the secured party or its designated custodian;
(d)
Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party;
(e)
Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
(f)
Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
History:  2001 a. 10, 416; 2011 a. 206.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.106 - Control of investment property.

409.106
Control of investment property.
(1)
Control under s. 408.106. A person has control of a certificated security, uncertificated security, or security entitlement as provided in s. 408.106.
(2)
Control of commodity contract. A secured party has control of a commodity contract if:
(a)
The secured party is the commodity intermediary with which the commodity contract is carried; or
(b)
The commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(3)
Effect of control of securities account or commodity account. A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.107 - Control of letter-of-credit right.

409.107
Control of letter-of-credit right.
A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under ch. 405 or otherwise applicable law or practice.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.108 - Sufficiency of description.

409.108
Sufficiency of description.
(1)
Sufficiency of description. Except as otherwise provided in subs. (3) to (5), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.
(2)
Examples of reasonable identification. Except as otherwise provided in sub. (4), a description of collateral reasonably identifies the collateral if it identifies the collateral by:
(a)
Specific listing;
(b)
Category;
(c)
Except as otherwise provided in sub. (5), a type of collateral defined in chs. 401 to 411;
(d)
Quantity;
(e)
Computational or allocational formula or procedure; or
(f)
Except as otherwise provided in sub. (3), any other method, if the identity of the collateral is objectively determinable.
(3)
Supergeneric description not sufficient. A description of collateral as “all the debtor's assets" or “all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.
(4)
Investment property. Except as otherwise provided in sub. (5), a description of a security entitlement, securities account, or commodity account is sufficient if it describes:
(a)
The collateral by those terms or as investment property; or
(b)
The underlying financial asset or commodity contract.
(5)
When description by type insufficient. A description only by type of collateral defined in chs. 401 to 411 is an insufficient description of:
(a)
A commercial tort claim; or
(b)
In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.
History:  2001 a. 10.
A wrong statement of section, township, range, and county where crops were grown was not minor, and, without directing further inquiry, was insufficient. Whether a party is misled by the description is not part of the inquiry under s. 409.110 or 409.402. Smith & Spindahl Enterprises, Inc. v. Lee, 206 Wis. 2d 663, 557 N.W.2d 865 (Ct. App. 1996), 96-0882.
NOTE:  The above annotated materials cite to the pre-2001 Wis. Act 10 version of ch. 409.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.110 - Security interests arising under ch. 402 or 411.

409.110
Security interests arising under ch. 402 or 411.
A security interest arising under s. 402.401, 402.505, 402.711 (3), or 411.508 (5) is subject to this chapter. However, until the debtor obtains possession of the goods:
(1)
The security interest is enforceable, even if s. 409.203 (2) (c) has not been satisfied;
(2)
Filing is not required to perfect the security interest;
(3)
The rights of the secured party after default by the debtor are governed by ch. 402 or 411; and
(4)
The security interest has priority over a conflicting security interest created by the debtor.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.201 - General effectiveness of security agreement.

409.201
General effectiveness of security agreement.
(1)
General effectiveness. Except as otherwise provided in chs. 401 to 411, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.
(2)
Applicable consumer laws and other law. A transaction subject to this chapter is subject to any applicable rule of law which establishes a different rule for consumers and to chs. 138, 421 to 427, and 429 and s. 182.025.
(3)
Other applicable law controls. In case of conflict between this chapter and a rule of law, statute, or rule described in sub. (2), the rule of law, statute, or rule controls. Failure to comply with a statute or rule described in sub. (2) has only the effect the statute or rule specifies.
(4)
Further deference to other applicable law. This chapter does not:
(a)
Validate any rate, charge, agreement, or practice that violates a rule of law, statute, or rule described in sub. (2); or
(b) Extend the application of the rule of law, statute, or rule to a transaction not otherwise subject to the rule of law, statute, or rule.
History:  2001 a. 10.
2023 Wisconsin Statutes & Annotations › Chapter 409 - Uniform commercial code — secured transactions. › 409.202 - Title to collateral immaterial.

409.202
Title to collateral immaterial.
Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
History:  2001 a. 10.
A person with a voidable title in property, having the power to pass title to a good faith purchaser under s. 402.403, may transfer a security interest in that property. Return of Property in State v. Pippin, 176 Wis. 2d 418, 500 N.W.2d 407 (Ct. App. 1993).
NOTE:  The above annotated materials cite to the pre-2001 Wis. Act 10 version of s. 409.202.