| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Wisconsin Repossession |
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| Lien Validity and Perfection
With limited exceptions listed in section 342.02, a security interest in a vehicle of a
type for which a certificate of title is required, is not valid against creditors of the
owner or subsequent transferees or secured parties of the vehicle unless perfected as
provided in this chapter. See Wisconsin Statutes Section 342.19 |
| How and When Perfected
Except as provided below for additional security interests, a security interest is
perfected by delivery to the department of existing certificate of title, if any, an
application for a certificate of title containing name and address of secured party, and
the required fee. It is perfected as of the time of its creation if such delivery is
completed within 10 days after created. If not, it is perfected as of the time of delivery
to the department. See Wisconsin Statutes Section 342.19 |
| New or Additional
If a secured party whose name and address is contained on the certificate of title
for a vehicle acquires a new or additional security interest in the vehicle, such security
interest is perfected at the time of its attachment under s. 409.203. See Wisconsin
Statutes Section 342.19 |
| Some UCC Rules Apply
The rules stated in the Wisconsin Uniform Commercial Code Sections 409.501 to
409.507 governing the rights and duties of secured parties and debtors and the
requirements for, and effect of, disposition of a vehicle by a secured party, upon default
shall, to the extent appropriate, govern the rights of secured parties and owners with
respect to security interests in vehicles perfected under this chapter.An unperfected
security interest is subordinate to the rights of persons described in s. 409.301, a
portion of the Uniform Commercial Code which describes persons who take priority over
unperfected security interests. See Wisconsin Statutes Section 342.19 |
| Out of State Vehicle
If a vehicle is subject to a security interest when brought into this state, sections
409.103 (1), (2) and (3) state the rules which apply to determine validity and perfection
of the security interest in this state. See Wisconsin Statutes Section 342.19 |
| Method
of Perfection Exclusive The
method provided in this chapter of perfecting and giving notice of security interests
subject to this chapter is exclusive. Security interests subject to this chapter are
hereby exempted from the provisions of law which otherwise require or relate to the
filing of instrument creating or evidencing security interests. See Wisconsin
Statutes Section 342.24 |
| Chapter
342 |
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| Possession After Default
Without Breach of Peace Unless otherwise
agreed, a secured party has on default the right to take possession of the collateral. In
taking possession, secured party may proceed without judicial process only if this can be
done without breach of the peace. If not, a legal action may proceed. See Wisconsin
Statutes Section 409.503 |
| Right to Redeem At any time
before the secured party has disposed of collateral or entered into a contract for its
disposition under section 409.504
or before discharge under section 409.505
the debtor or any other secured party may unless otherwise agreed in writing after
default, redeem the collateral by tendering fulfillment of all obligations secured by the
collateral as well as the expenses reasonably incurred by the secured party in retaking,
holding and preparing the collateral for disposition, in arranging for the sale, and to
the extent provided in the agreement and not prohibited by law, the secured party's
reasonable attorneys' fees and legal expenses. See Wisconsin Statutes Section 409.506 |
| Compulsory Sale If the
debtor has paid 60 per cent of the cash price in case of a purchase money security
interest in consumer goods or 60 per cent of the loan in case of another security interest
in consumer goods, and debtor has not signed after default a statement renouncing or
modifying rights under sections 409.501
to 409.507,
a secured party who has taken possession of collateral must dispose of it by sale under
section 409.504.
If secured party fails to do so within 90 days after possession, debtor at the debtor's
option may recover in conversion or under section 409.507
on secured party's liability. In this subsection "cash price" means seller's
price in dollars for sale of the goods and the transfer of unqualified title thereto upon
the concurrent payment of such price in cash or the equivalent thereof; "loan"
refers to principal and does not include interest or service charges. See Wisconsin
Statutes Section 409.505 |
| Acceptance As Satisfaction
In any other case involving consumer goods or any other collateral a secured party in
possession may, after default, propose to retain the collateral in satisfaction of the
obligation. Written notice of such proposal must be sent to debtor if debtor has not
signed after default a statement renouncing or modifying rights under this subsection, and
except in the case of consumer goods, to any other secured party who has a security
interest in the collateral and who has duly filed a financing statement indexed in name of
debtor in this state. If debtor or other person entitled to receive notice objects in
writing within 21 days from the receipt of the notification, or if any other secured party
objects in writing within 21 days after secured party obtains possession, secured party
must dispose of the collateral under section 409.504.
In the absence of written objection, secured party may retain the collateral in
satisfaction of the obligation. See Wisconsin Statutes Section 409.505 |
Sale and Allocation of
Proceeds A secured party after default may sell, lease or otherwise dispose of
any or all of the collateral in its then condition or following any commercially
reasonable preparation or processing. Any sale of goods is subject to Chapter
402. The proceeds of disposition must be applied in the order following to reasonable
expenses of retaking, holding, preparing for sale or lease, selling, leasing and the like
and, to extent provided for in agreement and not prohibited by law, reasonable attorneys'
fees and legal expenses incurred. Proceeds would then be applied to satisfaction of debt
secured by security interest under which the sale is made. See Wisconsin Statutes Section 409.504
wks |
| Subordinate Interest If proceeds
remain, they would next apply to satisfaction of debt secured by any subordinate security
interest in the collateral, if written notice of demand is received before distribution of
proceeds is completed. If requested by secured party, holder of a subordinate security
interest must seasonably furnish reasonable proof of interest, and unless holder does so,
secured party need not comply with the demand. See Wisconsin Statutes Section 409.504 |
Accounting and
Deficiency If the security interest secures an indebtedness, secured party
must account to debtor for any surplus, and, unless otherwise agreed, debtor is liable for
any deficiency. See Wisconsin Statutes Section 409.504
Public or Private Sale After Notice
Disposition of the collateral may be by public or private proceedings and may be at any
time and place and on any terms, but every aspect of the disposition including method,
manner, time, place and terms must be commercially reasonable. Unless collateral is
perishable or threatens to decline speedily in value, reasonable notification of the time
and place of any public sale or the time after which any private sale is to be made must
be sent by secured party to debtor, if debtor has not signed after default a statement
renouncing or modifying right to notice of sale and, except in case of consumer goods, to
any other person who has a security interest in the collateral and who has duly filed a
financing statement indexed in the name of debtor in this state. The secured party may buy
at any public sale and if the collateral is of a type customarily sold in a recognized
market or is of a type which is the subject of widely distributed standard price
quotations the secured party may buy at private sale. See Wisconsin Statutes Section 409.504
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| Involuntary Transfer
If the interest of an owner in a vehicle passes to another other than by voluntary
transfer, transferee must, with limited exceptions, promptly mail or deliver to the
department the last certificate of title, if available,and documents required by the
department to legally effect such transfer, and an application for a new certificate in
the form the department prescribes. See Wisconsin Statutes Section 342.17 |
| Statement of Repossession
If the interest of the owner is terminated or the vehicle is sold under a security
agreement by a secured party named in the certificate of title, transferee must promptly
mail or deliver to the department the last certificate of title, application for a new
certificate in the form the department prescribes, and a statement made by or on behalf of
the secured party that the vehicle was repossessed, and that the interest of owner was
lawfully terminated or sold pursuant to terms of security agreement. See Wisconsin
Statutes Section 342.17 |
| Surrender of Title A
person holding a certificate of title whose interest in the vehicle has been extinguished
or transferred other than by voluntary transfer must mail or deliver the certificate to
the department upon request of the department. The delivery of the certificate pursuant to
request of the department does not affect the rights of the person surrendering the
certificate, and the action of the department in issuing a new certificate of title as
provided herein is not conclusive upon rights of an owner or secured party named in the
old certificate. See Wisconsin Statutes Section 342.17 |
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