Wisconsin Statutes
Wis. Stat. § 409.403 (2026)
Agreement not to assert defenses against assignee
✓ current as of July 2026
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409.403(2)(2) Agreement not to assert claim or defense. Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:
409.403(2)(c)(c) Without notice of a claim of a property or possessory right to the property assigned; and
409.403(2)(d)(d) Without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under s. 403.305 (1).
409.403(3)(3) When sub. (2) not applicable. Subsection (2) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under s. 403.305 (2).
409.403(4)(4) Omission of required statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor’s obligation, law other than this chapter requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement:
409.403(4)(b)(b) The account debtor may assert against an assignee those claims and defenses that would have been available if the record had included such a statement.
409.403(5)(5) Rule for individual under other law. This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
409.403(6)(6) Other law not displaced. Except as otherwise provided in sub. (4), this section does not displace law other than this chapter which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.
Notes of Decisions
Cited in 10
cases, 1981–2003 · leading case: State Bank of Hartland v. Arndt, 385 N.W.2d 219 (Wis. Ct. App. 1986).
State Bank of Hartland v. Arndt, 385 N.W.2d 219 (Wis. Ct. App. 1986). “409, entitled Uniform Commercial Code — Secured Transactions, or any other statute brought to our attention imposes such an obligation.”
Bostwick-Braun Co. v. Owens, 634 F. Supp. 839 (E.D. Wis. 1986). “§ 409.403, U.C.C. § 9-403, provides that a security interest may be perfected for a five-year period by the filing of a financing statement and the tender of a filing fee.”
In Re Wright, 196 B.R. 97 (Bankr. W.D. Wis. 1995). “401(l)(a) requires that to be effective the financing statement must be filed in the office of the register of deeds in the county of the debtor’s residence.”
Hanley Implement Co. v. Riesterer Equip., Inc., 441 N.W.2d 304 (Wis. Ct. App. 1989). “The effectiveness of a filed financing statement lapses on the expiration of the 5-year period unless a continuation statement is filed prior to the lapse.”
Wisconsin Dep't of Indus., Labor & Human Relations v. Kubly (In Re Kubly), 65 B.R. 845 (W.D. Wis. 1986). “Defendant filed a continuation statement for its 1976 security agreement on March 11, 1981, pursuant to Wis.Stat. § 409.403. Defendant continued to make loans to Kubly Construction Co.”
Dairy State Bank v. Consol. Farm Serv. Agency (In Re Wright), 192 B.R. 946 (W.D. Wis. 1996). “The governing provision is § 409.403, Wis.Stat., which provides: Presentation for filing of a financing statement and tender of the filing fee constitutes filing under this chapter unless the filing officer refuses to accept the statement under s.”
In Re Jodan's Pro Hardware, 49 B.R. 976 (Bankr. E.D. Wis. 1985). “The Bank filed financing statements with the Wisconsin Secretary of State’s office on February 1, 1977 and again on January 15, 1982, but did not file a "continuation statement" as provided in Section 409.403(2) of the Wisconsin Statutes.”
Matter of Bindl, 13 B.R. 148 (Bankr. W.D. Wis. 1981). “Wis.Stat. 409.403(2). Farm Loan Service filed a financing statement with the Richland County Register of Deeds October 8, 1979 which covers “2 Rex Chopper Boxes w tandem running gears, Gehl 600 Chopper w/2 row corn head and hay head” and their products and proceeds.”
Sampson Investments v. Sampson, 111 F. Supp. 2d 1064 (E.D. Wis. 2000). “§ 409.403(2). Heritage filed its original financing statement on February 22, 1990.”
Swanson v. Gen. Motors Acceptance Corp. (In Re Kahl), 316 B.R. 919 (Bankr. E.D. Wis. 2003). “Substantial case law interpreting § 409.403(1), Wis. Stats., known as the “savings clause” under Wisconsin’s version of the Uniform Commercial Code, indicates that under state law the secured party should not suffer the consequences of the filing officer’s mistake in improperly…”
— Wis. Stat. § 409.403(1) — 3 cases
In Re Wright, 196 B.R. 97 (Bankr. W.D. Wis. 1995). “401(l)(a) requires that to be effective the financing statement must be filed in the office of the register of deeds in the county of the debtor’s residence.”
Dairy State Bank v. Consol. Farm Serv. Agency (In Re Wright), 192 B.R. 946 (W.D. Wis. 1996). “The governing provision is § 409.403, Wis.Stat., which provides: Presentation for filing of a financing statement and tender of the filing fee constitutes filing under this chapter unless the filing officer refuses to accept the statement under s.”
Swanson v. Gen. Motors Acceptance Corp. (In Re Kahl), 316 B.R. 919 (Bankr. E.D. Wis. 2003). “Substantial case law interpreting § 409.403(1), Wis. Stats., known as the “savings clause” under Wisconsin’s version of the Uniform Commercial Code, indicates that under state law the secured party should not suffer the consequences of the filing officer’s mistake in improperly…”
— Wis. Stat. § 409.403(2) — 6 cases
State Bank of Hartland v. Arndt, 385 N.W.2d 219 (Wis. Ct. App. 1986). “409, entitled Uniform Commercial Code — Secured Transactions, or any other statute brought to our attention imposes such an obligation.”
Hanley Implement Co. v. Riesterer Equip., Inc., 441 N.W.2d 304 (Wis. Ct. App. 1989). “The effectiveness of a filed financing statement lapses on the expiration of the 5-year period unless a continuation statement is filed prior to the lapse.”
Bostwick-Braun Co. v. Owens, 634 F. Supp. 839 (E.D. Wis. 1986). “§ 409.403, U.C.C. § 9-403, provides that a security interest may be perfected for a five-year period by the filing of a financing statement and the tender of a filing fee.”
In Re Jodan's Pro Hardware, 49 B.R. 976 (Bankr. E.D. Wis. 1985). “The Bank filed financing statements with the Wisconsin Secretary of State’s office on February 1, 1977 and again on January 15, 1982, but did not file a "continuation statement" as provided in Section 409.403(2) of the Wisconsin Statutes.”
Matter of Bindl, 13 B.R. 148 (Bankr. W.D. Wis. 1981). “Wis.Stat. 409.403(2). Farm Loan Service filed a financing statement with the Richland County Register of Deeds October 8, 1979 which covers “2 Rex Chopper Boxes w tandem running gears, Gehl 600 Chopper w/2 row corn head and hay head” and their products and proceeds.”
— Wis. Stat. § 409.403(3) — 2 cases
Bostwick-Braun Co. v. Owens, 634 F. Supp. 839 (E.D. Wis. 1986). “§ 409.403, U.C.C. § 9-403, provides that a security interest may be perfected for a five-year period by the filing of a financing statement and the tender of a filing fee.”
In Re Jodan's Pro Hardware, 49 B.R. 976 (Bankr. E.D. Wis. 1985). “The Bank filed financing statements with the Wisconsin Secretary of State’s office on February 1, 1977 and again on January 15, 1982, but did not file a "continuation statement" as provided in Section 409.403(2) of the Wisconsin Statutes.”
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