Wisconsin Statutes
Wis. Stat. § 409.315 (2026)
Secured party’s rights on disposition of collateral and in proceeds
✓ current as of July 2026
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409.315(1)(1) Disposition of collateral: continuation of security interest or agricultural lien; proceeds. Except as otherwise provided in this chapter and in s. 402.403 (2):
409.315(1)(a)(a) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and
409.315(2)(2) When commingled proceeds identifiable. Proceeds that are commingled with other property are identifiable proceeds:
409.315(2)(b)(b) If the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this chapter with respect to commingled property of the type involved.
409.315(3)(3) Perfection of security interest in proceeds. A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
409.315(4)(4) Continuation of perfection. A perfected security interest in proceeds becomes unperfected on the 21st day after the security interest attaches to the proceeds unless:
409.315(4)(a)2.2. The proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and
409.315(4)(c)(c) The security interest in the proceeds is perfected other than under sub. (3) when the security interest attaches to the proceeds or within 20 days thereafter.
409.315(5)(5) When perfected security interest in proceeds becomes unperfected. If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under sub. (4) (a) becomes unperfected at the later of:
409.315(5)(a)(a) When the effectiveness of the filed financing statement lapses under s. 409.515 or is terminated under s. 409.513; or
409.315 AnnotationIf a security agreement does not explicitly provide that transfer of collateral constitutes default and the secured party is not entitled to immediate possession, sale of collateral is not a conversion. Production Credit Ass’n of Chippewa Falls v. Equity Coop Livestock Sales Ass’n, 82 Wis. 2d 5, 261 N.W.2d 127 (1978).
409.315 AnnotationThe rights of a security holder in collateral survive the transfer of the collateral under s. 409.311 made without the secured party’s consent. Production Credit Ass’n of Madison v. Nowatzski, 90 Wis. 2d 344, 280 N.W.2d 118 (1979).
409.315 AnnotationA condition imposed by a secured party on authorization to sell collateral is ineffective unless performance of the condition is within the buyer’s control. Production Credit Ass’n of Baraboo v. Pillsbury Co., 132 Wis. 2d 243, 392 N.W.2d 445 (Ct. App. 1986).
409.315 NoteNOTE: The above annotations cite to the pre-2001 Wis. Act 10 version of this chapter.
Notes of Decisions
Cited in 6
cases, 1994–2019 · leading case: Wan Ho Indus. Co. v. Hemken (In re Hemken), 513 B.R. 344 (Bankr. E.D. Wis. 2014).
Wan Ho Indus. Co. v. Hemken (In re Hemken), 513 B.R. 344 (Bankr. E.D. Wis. 2014). “While Towsley’s security interest may have followed the inventory under Wis. Stat. § 409.315 (l)(a), the Debtor did not convert Towsley’s collateral by arranging with the Bank to allow a portion of the purchase price to be paid to the Investors.”
BNP Paribas v. Olsen's Mill, Inc., 2011 WI 61 (Wis. 2011). “" Wis. Stat. § 409.315 (l)(a) (emphasis added); see also Cristina M.”
Arthur Glick Truck Sales, Inc. v. Stuphen East Corp., 914 F. Supp. 2d 529 (S.D.N.Y. 2012). “Law § 9 — 315(a)(1); Wis. Stat. Ann. § 409.315 (l)(a); see also Havens Steel Co.”
Farmers Implement Store of Mineral Point, Inc. v. Jorenby (In Re Jorenby), 393 B.R. 663 (Bankr. W.D. Wis. 2008). “” Wis. Stat. § 409.315 . Thus, the Store may retain a security interest in the tractor and in identifiable proceeds from the sale of the tractor.”
CHS Capital, LLC v. Hellenbrand Farms, LLC (W.D. Wis. 2019). “Ignoring this plain language, plaintiff nonetheless argues that Hellenbrand Farms should have foreclosed on the check itself, reasoning that the check from the auction constituted collateral, and that Wis. Stat. § 409.315 provides that an agricultural lien “continues in…”
In Re Pelton, 171 B.R. 641 (Bankr. W.D. Wis. 1994). “FC does not raise the argument under Wisconsin § 409.315 (identical to U.C.C. § 9-315) that the feed became commingled with the cattle.”
— Wis. Stat. § 409.315(l)(a) — 1 case
Wan Ho Indus. Co. v. Hemken (In re Hemken), 513 B.R. 344 (Bankr. E.D. Wis. 2014). “While Towsley’s security interest may have followed the inventory under Wis. Stat. § 409.315 (l)(a), the Debtor did not convert Towsley’s collateral by arranging with the Bank to allow a portion of the purchase price to be paid to the Investors.”
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