AB 115

This state has adopted the Uniform Commercial Code (UCC) Article 4A,

governing funds transfers, as chapter 410 of the Wisconsin Statutes. A "funds

transfer" is defined as a series of transactions, beginning with the originator's

payment order, made for the purpose of making payment to the beneficiary of the

order. A "payment order" is defined as an instruction of a sender to a bank to pay,

or to cause another bank to pay, a specified amount of money to the beneficiary of the

payment order. UCC Article 4A establishes comprehensive provisions to govern

funds transfers, but these provisions do not apply to a funds transfer any part of

which is governed by the federal Electronic Fund Transfer Act (EFTA).

The federal Dodd-Frank Wall Street Reform and Consumer Protection Act

(P.L.

111-203

), signed into law on July 21, 2010, included amendments to the EFTA

that impact UCC Article 4A. Federal regulations implementing these changes

become effective in February 2013. As a result of these changes, the Uniform Laws

Committee of the National Conference of Commissioners on Uniform State Laws and

the American Law Institute have approved an amendment to UCC Article 4A. This

bill adopts this amendment.

Under the bill, provisions of UCC Article 4A, as adopted in this state in chapter

410 of the Wisconsin Statutes, apply to a funds transfer that is a remittance transfer

as defined under the EFTA, unless the remittance transfer is an electronic fund

transfer as defined under the EFTA. Under the EFTA, a "remittance transfer" means

an electronic transfer of funds, requested by a consumer, to a recipient in a foreign

country, made by the transfer provider in the normal course of its business, but does

not include transfers of small value. Under the EFTA, "electronic fund transfer"

means a transfer of funds initiated through an electronic terminal, telephonic

instrument, or computer or magnetic tape that orders, instructs, or authorizes a

financial institution to debit or credit an account. "Electronic fund transfer" includes

point-of-sale transfers, automated teller machine transactions, direct deposits or

withdrawals of funds, and transfers initiated by telephone, but does not include

certain transactions such as transactions originated by check; Fedwire transfers;

certain automatic transfers between a consumer's savings and checking accounts;

and certain nonrecurring transfers initiated by a consumer by telephone. If the

provisions of UCC Article 4A apply with respect to a funds transfer and there is an

inconsistency between these provisions and the EFTA, the provision of the EFTA

governs to the extent of the inconsistency.