Wisconsin Statutes
Wis. Stat. § 409.203 (2026)
Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites
✓ current as of July 2026
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409.203409.203 Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.
409.203(1)(1) Attachment. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.
409.203(2)(2) Enforceability. Except as otherwise provided in subs. (3) to (9), a security interest is enforceable against the debtor and 3rd parties with respect to the collateral only if:
409.203(2)(b)(b) The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and
409.203(2)(c)1.1. The debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;
409.203(2)(c)2.2. The collateral is not a certificated security and is in the possession of the secured party under s. 409.313 pursuant to the debtor’s security agreement;
409.203(2)(c)3.3. The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under s. 408.301 pursuant to the debtor’s security agreement; or
409.203(2)(c)4.4. The collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party has control under s. 407.106, 409.104, 409.105, 409.106, or 409.107 pursuant to the debtor’s security agreement.
409.203(3)(3) Other uniform commercial code provisions. Subsection (2) is subject to s. 404.210 on the security interest of a collecting bank, s. 405.118 on the security interest of a letter-of-credit issuer or nominated person, s. 409.110 on a security interest arising under ch. 402 or 411, and s. 409.206 on security interests in investment property.
409.203(4)(a)(a) A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than this chapter or by contract:
409.203(4)(a)1.1. The security agreement becomes effective to create a security interest in the person’s property; or
409.203(4)(a)2.2. The person becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.
409.203(4)(b)(b) A security agreement authenticated by one spouse is authenticated by the debtor under this section if that spouse acting alone has the right under s. 766.51 to manage and control the collateral, unless a marital property agreement or court decree that is binding on the secured party under s. 766.55 (4m) or 766.56 (2) (c) provides otherwise.
409.203(5)(5) Effect of new debtor becoming bound. If a new debtor becomes bound as debtor by a security agreement entered into by another person:
409.203(5)(a)(a) The agreement satisfies sub. (2) (c) with respect to existing or after-acquired property of the new debtor to the extent that the property is described in the agreement; and
409.203(5)(b)(b) Another agreement is not necessary to make a security interest in the property enforceable.
409.203(6)(6) Proceeds and supporting obligations. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by s. 409.315 and is also attachment of a security interest in a supporting obligation for the collateral.
409.203(7)(7) Lien securing right to payment. The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or real property is also attachment of a security interest in the security interest, mortgage, or other lien.
409.203(8)(8) Security entitlement carried in securities account. The attachment of a security interest in a securities account is also attachment of a security interest in the security entitlements carried in the securities account.
409.203(9)(9) Commodity contracts carried in commodity account. The attachment of a security interest in a commodity account is also attachment of a security interest in the commodity contracts carried in the commodity account.
409.203 AnnotationA provision in an instrument prohibiting transfer of the instrument did not render a security interest in the instrument unenforceable. Belke v. M&I First National Bank of Stevens Point, 189 Wis. 2d 385, 525 N.W.2d 737 (Ct. App. 1994).
409.203 AnnotationIf the terms of a security agreement establish that attachment is contingent on subsequent specification of the collateral, the secured party has no security interest before the satisfaction of the contingency. A security agreement requiring the designation of the accounts to serve as collateral gave no security interest when no designation was made. Sierra Finance Corp. v. Excel Laboratories, LLC, 223 Wis. 2d 694, 589 N.W.2d 432 (Ct. App. 1998), 97-2450.
409.203 NoteNOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this section.
409.203 AnnotationSub. (7) is identical to section 9-203 (g) of the Uniform Commercial Code. The comment to section 9-203 (g) states, “Subsection (g) codifies the common-law rule that a transfer of an obligation secured by a security interest or other lien on personal or real property also transfers the security interest or lien” and supports the assertion that sub. (7) is intended to codify the common law doctrine of equitable assignment. It also supports the argument that the doctrine applies to real estate mortgages. Dow Family, LLC v. PHH Mortgage Corp., 2014 WI 56, 354 Wis. 2d 796, 848 N.W.2d 728, 13-0221.
Notes of Decisions
Cited in 32
cases (1 in the last 5 years), 1978–2021 · 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). “Wis. Stat. § 409.203 (2)(c)2., et seq.; Nat'l Pawn Brokers Unlimited v.”
Dow Fam., LLC v. PHH Mortg. Corp., 2013 WI App 114 (Wis. Ct. App. 2013). “In addition, we agree with PHH that Wis. Stat. § 409.203 (7) further supports applying the doctrine of equitable assignment in this case.”
Associated Bank N.A. v. Jack W. Collier, 2014 WI 62 (Wis. 2014). “Under this system of secured transactions, a creditor obtains a security interest in property the debtor has assigned as collateral that is enforceable against the debtor when "attachment" occurs pursuant to Wis. Stat. § 409.203 . The creditor's security interest is valid…”
Dow Fam., LLC v. PHH Mortg. Corp., 2014 WI 56 (Wis. 2014). “We further conclude that the language of Wis. Stat. § 409.203 (7) (2011-12),1 which governs liens securing the right to payment, codifies equitable assignment.”
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Van Kylen (In Re Van Kylen), 98 B.R. 455 (Bankr. W.D. Wis. 1989). “§ 409.203(1) (1987-88). The only condition for attachment which is seriously at issue 4 is whether the Bank “gave value.”
United States v. Fullpail Cattle Sales, Inc., 640 F. Supp. 976 (E.D. Wis. 1986). “Superior Security Interest Security interests are created, or attached, when the formal requisites of Wis. Stat. § 409.203 are satisfied. The statutory requisites are: “(a) .”
Matter of Younce, 56 B.R. 232 (E.D. Wis. 1985). “203(l)(a) are intended to preclude such disputes, as comment 3 to § 9-203 of the Uniform Commercial Code (from which § 409.203 was derived) demonstrates: One purpose of the formal requisites stated in subsection (l)(a) is evidentiary.”
Kurt Van Engel Comm'n Co., Inc. v. Zingale, 2005 WI App 82 (Wis. Ct. App. 2005). “In consideration of any financial accommodation given, to be given or continued by [Van Engel] to [Zingale], and as collateral security for the payment of all debts, obligations or liabilities now or hereafter existing, stemming from the promissory note dated October 24, 1980,…”
Matter of Kochell, 26 B.R. 86 (Bankr. W.D. Wis. 1982). “Wis.Stat. § 409.203 provides that a security interest does not attach unless: a)The collateral is in the possession of the secured party pursuant to agreement .”
McLaughlin v. Sec. Pac. Hous. Servs. (In Re McLaughlin), 183 B.R. 171 (Bankr. W.D. Wis. 1995). “§ 409.105(m) (1993-94). However, the security interest was not enforceable against McLaughlin or any third party until it “attached.”
Bank of Barron v. Gieseke, 485 N.W.2d 426 (Wis. Ct. App. 1992). “Section 409.203(1), Stats. Obligations covered by a security agreement may include future advances, regardless of whether the secured party is bound to make the advances.”
City Bank & Trust Co. of Portage v. Don's Elec., Inc. (In Re Don's Elec., Inc.), 65 B.R. 399 (Bankr. W.D. Wis. 1986). “§ 409.203. See generally In Re Chicago, Madison & Northern Ry.”
— Wis. Stat. § 409.203(1) — 11 cases
Bank of Barron v. Gieseke, 485 N.W.2d 426 (Wis. Ct. App. 1992). “Section 409.203(1), Stats. Obligations covered by a security agreement may include future advances, regardless of whether the secured party is bound to make the advances.”
United States v. Fullpail Cattle Sales, Inc., 640 F. Supp. 976 (E.D. Wis. 1986). “Superior Security Interest Security interests are created, or attached, when the formal requisites of Wis. Stat. § 409.203 are satisfied. The statutory requisites are: “(a) .”
Lader's Tiffany Feed & Supply Co. v. Kohl (In Re Kohl), 18 B.R. 670 (Bankr. W.D. Wis. 1982).
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Van Kylen (In Re Van Kylen), 98 B.R. 455 (Bankr. W.D. Wis. 1989). “§ 409.203(1) (1987-88). The only condition for attachment which is seriously at issue 4 is whether the Bank “gave value.”
Nat'l Exch. Bank of Fond Du Lac v. Mann, 260 N.W.2d 716 (Wis. 1978).
— Wis. Stat. § 409.203(1)(a) — 1 case
Sierra Fin. Corp. v. Excel Labs., LLC, 589 N.W.2d 432 (Wis. Ct. App. 1998).
— Wis. Stat. § 409.203(2) — 1 case
Prod. Credit Ass'n v. Pillsbury Co., 392 N.W.2d 445 (Wis. Ct. App. 1986).
— Wis. Stat. § 409.203(3) — 1 case
Sierra Fin. Corp. v. Excel Labs., LLC, 589 N.W.2d 432 (Wis. Ct. App. 1998).
— Wis. Stat. § 409.203(7) — 2 cases
Dow Fam., LLC v. PHH Mortg. Corp., 2013 WI App 114 (Wis. Ct. App. 2013). “In addition, we agree with PHH that Wis. Stat. § 409.203 (7) further supports applying the doctrine of equitable assignment in this case.”
Dow Fam., LLC v. PHH Mortg. Corp., 2014 WI 56 (Wis. 2014). “We further conclude that the language of Wis. Stat. § 409.203 (7) (2011-12),1 which governs liens securing the right to payment, codifies equitable assignment.”
— Wis. Stat. § 409.203(l)(a) — 6 cases
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Van Kylen (In Re Van Kylen), 98 B.R. 455 (Bankr. W.D. Wis. 1989). “§ 409.203(1) (1987-88). The only condition for attachment which is seriously at issue 4 is whether the Bank “gave value.”
Matter of Younce, 56 B.R. 232 (E.D. Wis. 1985). “203(l)(a) are intended to preclude such disputes, as comment 3 to § 9-203 of the Uniform Commercial Code (from which § 409.203 was derived) demonstrates: One purpose of the formal requisites stated in subsection (l)(a) is evidentiary.”
Smith & Spidahl Enter., Inc. v. Lee, 557 N.W.2d 865 (Wis. Ct. App. 1996).
Matter of Younce, 44 B.R. 102 (Bankr. E.D. Wis. 1984).
Prod. Credit Ass'n v. Pillsbury Co., 392 N.W.2d 445 (Wis. Ct. App. 1986).
— Wis. Stat. § 409.203(l)(b) — 1 case
Prod. Credit Ass'n v. Pillsbury Co., 392 N.W.2d 445 (Wis. Ct. App. 1986).
— Wis. Stat. § 409.203(l)(c) — 1 case
City Bank & Trust Co. of Portage v. Don's Elec., Inc. (In Re Don's Elec., Inc.), 65 B.R. 399 (Bankr. W.D. Wis. 1986). “§ 409.203. See generally In Re Chicago, Madison & Northern Ry.”
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