Wisconsin Statutes

Wis. Stat. § 409.306 (2026)

Law governing perfection and priority of security interests in letter-of-credit rights

✓ current as of July 2026

Find cases: SyfertCases citing this section WI-LEGdocs.legis.wisconsin.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

409.306409.306 Law governing perfection and priority of security interests in letter-of-credit rights.

409.306(1)(1) Governing law: issuer’s or nominated person’s jurisdiction. Subject to sub. (3), the local law of the issuer’s jurisdiction or a nominated person’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer’s jurisdiction or nominated person’s jurisdiction is a state.

409.306(2)(2) Issuer’s or nominated person’s jurisdiction. For purposes of this subchapter, an issuer’s jurisdiction or nominated person’s jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in ch. 405.

409.306(3)(3) When section not applicable. This section does not apply to a security interest that is perfected only under s. 409.308 (4).

409.306 HistoryHistory: 2001 a. 10.

Notes of Decisions

Cited in 15 cases, 1978–2007 · leading case: State Nat'l Bank of Platteville v. Cullen (In Re Cullen), 71 B.R. 274 (Bankr. W.D. Wis. 1987).

Sort: Relevance Newest Treatment

State Nat'l Bank of Platteville v. Cullen (In Re Cullen), 71 B.R. 274 (Bankr. W.D. Wis. 1987). · cites it 8× “§ 409.306(2). 5 The Supreme Court of Wisconsin has stated that ".”

Prod. Credit Ass'n of Chippewa Falls v. Equity Coop Livestock Sales Ass'n, 261 N.W.2d 127 (Wis. 1978). “260; sec. 409.306(2), Stats. 20 Courts have differed on this question.”

In Re Hardin, 375 B.R. 506 (Bankr. E.D. Wis. 2007). · cites it 4× “Wis. Stat. § 409.306 (2000). Reducing this statute to its vital essence, under nonbankruptcy law in effect at the time the security agreement was entered into and the lien attached, Ford would have a security interest in the insurance proceeds up to the remaining balance of its…”

Matter of Johnson, 47 B.R. 204 (Bankr. W.D. Wis. 1985). · cites it 2× “§ 409.306, see also In Re Hollie, 42 B.R.”

Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Van Kylen (In Re Van Kylen), 98 B.R. 455 (Bankr. W.D. Wis. 1989). “§ 409.306 (1987-88). On this point, the Bank’s argument that the funds in the CMA were only accessible via checks drawn on an account maintained with a participating bank is relevant.”

Rameker v. Fed. R.R. Admin. (In Re Chicago, Madison & N. Ry. Co.), 36 B.R. 292 (Bankr. W.D. Wis. 1984). · cites it 2× “§ 409.306(2). 8 But § 409.306(4), governing rights in proceeds in insolvency proceedings limits such an interest, for all practical purposes, to proceeds received by CM & N within the ten days prior to its filing for bankruptcy on April 15, 1982 — a date many months after PRTC…”

Matter of Wood, 47 B.R. 774 (Bankr. W.D. Wis. 1985). “§ 409.306. Since Laufenberg did not take possession of the dairy cows and did not file a financing statement covering the dairy cows, his security interest is unperfected under Wisconsin law.”

First Wisconsin Nat'l Bank of Madison v. Stiennon (In Re Stiennon), 73 B.R. 905 (Bankr. W.D. Wis. 1987). “§ 409.306. In this case the collateral, the check, was never converted to proceeds.”

Hanley Implement Co. v. Riesterer Equip., Inc., 441 N.W.2d 304 (Wis. Ct. App. 1989). “Sec. 409.306(2), Stats. If a debtor defaults, the secured party may enforce the security interest against the transferee.”

Antigo Co-Op Credit Union v. Miller, 271 N.W.2d 642 (Wis. 1978). “” 3 Sec. 409.306(2), Stats., provides: “(2) Except where this chapter otherwise provides, a security interest continues in collateral notwithstanding sale, exchange or other disposition thereof unless the disposition was authorized by the secured party in the security agreement…”

Textron Fin. Corp. v. Firstar Bank Wisconsin, 579 N.W.2d 48 (Wis. Ct. App. 1998). · cites it 2× “See § 409.306, STATS. Firstar also concedes that Textron met every requirement for perfecting its purchase money security agreement in the boat with one exception: Textron's alleged failure to show that it financed the specific boat in question.”

Sampson Investments v. Sampson, 111 F. Supp. 2d 1064 (E.D. Wis. 2000). “§ 409.306(2), which corresponds with Section 306(2) of the U.”

Show all 15 citing cases →

— Wis. Stat. § 409.306(1) — 1 case

In Re Pelton, 171 B.R. 641 (Bankr. W.D. Wis. 1994).

— Wis. Stat. § 409.306(2) — 10 cases

State Nat'l Bank of Platteville v. Cullen (In Re Cullen), 71 B.R. 274 (Bankr. W.D. Wis. 1987). “§ 409.306(2). 5 The Supreme Court of Wisconsin has stated that ".”

Prod. Credit Ass'n of Chippewa Falls v. Equity Coop Livestock Sales Ass'n, 261 N.W.2d 127 (Wis. 1978). “260; sec. 409.306(2), Stats. 20 Courts have differed on this question.”

Matter of Johnson, 47 B.R. 204 (Bankr. W.D. Wis. 1985). “§ 409.306, see also In Re Hollie, 42 B.R.”

Rameker v. Fed. R.R. Admin. (In Re Chicago, Madison & N. Ry. Co.), 36 B.R. 292 (Bankr. W.D. Wis. 1984). “§ 409.306(2). 8 But § 409.306(4), governing rights in proceeds in insolvency proceedings limits such an interest, for all practical purposes, to proceeds received by CM & N within the ten days prior to its filing for bankruptcy on April 15, 1982 — a date many months after PRTC…”

— Wis. Stat. § 409.306(3)(a) — 1 case

In Re Pelton, 171 B.R. 641 (Bankr. W.D. Wis. 1994).

— Wis. Stat. § 409.306(4) — 1 case

— Wis. Stat. § 409.306(4)(a) — 1 case

In Re Pelton, 171 B.R. 641 (Bankr. W.D. Wis. 1994).

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.