Wisconsin Statutes
Wis. Stat. § 409.109 (2026)
Scope
✓ current as of July 2026
Find cases:
SyfertCases citing this section
WI-LEGdocs.legis.wisconsin.gov
JustiaChapter on Justia
CornellLII Search
CasesGoogle Scholar
409.109(1)(1) General scope of chapter. Except as otherwise provided in subs. (3) and (4), and s. 16.63 (4) on transactions involving tobacco settlement revenues, this chapter applies to:
409.109(1)(a)(a) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
409.109(1)(e)(e) A security interest arising under s. 402.401, 402.505, 402.711 (3), or 411.508 (5), as provided in s. 409.110; and
409.109(2)(2) Security interest in secured obligation. The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply.
409.109(3)(3) Extent to which chapter does not apply. This chapter does not apply to the extent that:
409.109(3)(b)(b) Another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state;
409.109(3)(c)(c) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
409.109(3)(d)(d) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under ch. 405.
409.109(4)(b)(b) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but s. 409.333 applies with respect to priority of the lien;
409.109(4)(cm)(cm) An assignment of a claim or right to receive compensation for injuries or sickness under a worker’s compensation or worker’s disability statute of any state;
409.109(4)(d)(d) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
409.109(4)(e)(e) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
409.109(4)(f)(f) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
409.109(4)(g)(g) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
409.109(4)(h)(h) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but ss. 409.315 and 409.322 apply with respect to proceeds and priorities in proceeds;
409.109(4)(i)(i) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
409.109(4)(j)1.1. Section 409.340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and
409.109(4)(k)(k) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
409.109(4)(L)(L) An assignment of a claim arising in tort, other than a commercial tort claim, but ss. 409.315 and 409.322 apply with respect to proceeds and priorities in proceeds; or
409.109(4)(m)(m) An assignment of a deposit account in a consumer transaction, but ss. 409.315 and 409.322 apply with respect to proceeds and priorities in proceeds.
409.109 AnnotationThere is a real difference between a claim from which proceeds arise and the proceeds themselves. Public policy does not prohibit the assignment of potential proceeds in a malpractice claim as a payment intangible. Concluding otherwise would contravene the clear meaning of the provisions of this chapter and could be seen as favoring lawyers against whom legal malpractice claims are filed. Attorney’s Title Guaranty Fund, Inc. v. Town Bank, 2014 WI 63, 355 Wis. 2d 229, 850 N.W.2d 28, 11-2774.
Notes of Decisions
Cited in 12
cases (1 in the last 5 years), 1980–2021 · leading case: Attorney's Title Guar. Fund, Inc. v. Town Bank, 2014 WI 63 (Wis. 2014).
Attorney's Title Guar. Fund, Inc. v. Town Bank, 2014 WI 63 (Wis. 2014). “Because Brophy voluntarily gave a security interest to Heartland so that Heartland would lend him money, Wis. Stat.”
Associated Bank N.A. v. Jack W. Collier, 2014 WI 62 (Wis. 2014). “Wis. Stat. § 409.109 (4)(i) (chapter does not apply to "assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral").”
Cook v. Pub. Storage, Inc., 2008 WI App 155 (Wis. Ct. App. 2008). “In addition, Wis. Stat. § 409.109 (4) (a) provides that the chapter does not apply to "[a] landlord's lien .”
First Wisconsin Nat'l Bank of Milwaukee v. Ford Motor Credit Co., 289 N.W.2d 288 (Wis. 1980). “” The court, in its interpretation of the Uniform Commercial Code, sec. 409.109, Stats., ruled that the farm *630 equipment, once leased to a third party, should no longer be considered as inventory and that the language in the subordination agreement did not provide the First…”
Am. Honda Fin. Corp. v. Cilek (In Re Cilek), 115 B.R. 974 (Bankr. W.D. Wis. 1990). “” The Court of Appeals held this description to be insufficient under the theory that it neither described the items of collateral nor, more importantly, indicated a “type” of property within the meaning of Chapter Nine of the Uniform Commercial Code.”
Milwaukee MacK Sales, Inc. v. First Wisconsin Nat'l Bank of Milwaukee, 287 N.W.2d 708 (Wis. 1980). “Sec. 409.109, Stats., classifies “goods” as “equipment” if the goods are “used or bought for use primarily in business .”
Matter of Johnson, 47 B.R. 204 (Bankr. W.D. Wis. 1985). “§ 409.109, see also, In Re Dias, 24 B.R. 542 , 9 B.”
Tralmer Sales & Serv., Inc. v. Erickson, 521 N.W.2d 182 (Wis. Ct. App. 1994). “§ 9-109(2) as § 409.109 (2), Stats. 12 Those items appear to include the oak kitchen table, the four round-back oak chairs and the baker's table.”
Lanser v. First Bank Fin. Centre (In re Vorobil), 568 B.R. 797 (Bankr. E.D. Wis. 2017). “1 See Wis. Stat. § 409.109 (4)(g). In Stephenson v.”
Zachery R Leaver (Bankr. W.D. Wis. 2021). “Wis. Stat. § 409.109 . Section 409.333 is the section that governed Hillside’s lien.”
Herrell v. DeCora (In Re DeCora), 387 B.R. 230 (Bankr. W.D. Wis. 2008). “The trustee submits that the bank should have done so, as the debtor did not completely assign his right to the per capita distributions to the bank but only granted the bank a collateral interest in the tribal dis *235 tributions in the event he failed to make payments on the…”
Stacey L Friedrich (Bankr. W.D. Wis. 2020). “Put differently, the Debtor’s acquisition of assets did not convert the Bank’s position and status as an unsecured creditor in his case to that of a secured creditor. Wis. Stat. Ch. 409, adopting Article 9 of the Uniform Commercial Code (UCC), governs the procedural steps a…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.