AB 81

Current law adopts the Uniform Commercial Code (UCC) Article 9-Secured

Transactions, which governs transactions that involve the granting of credit secured

by personal property of a debtor. The creditor's interest is called a "security interest."

UCC Article 9 regulates the creation and enforcement of security interests in

movable property (goods), but not in real property. Under UCC Article 9, if a debtor

defaults, the creditor may repossess and sell the property (generally called collateral)

to satisfy the debt, but the rights of the creditor against other creditors depends in

part on when or if the creditor "perfected" its security interest. Perfection of a

security interest usually occurs with the filing by the creditor of a "financing

statement" in a "filing office." In Wisconsin, this filing office is usually the

Department of Financial Institutions (DFI). However, if the collateral is a fixture

(goods attached to real property), standing timber to be cut, or "as-extracted

collateral" (oil, gas, or other minerals before extraction), the filing office is the office

of register of deeds in the county where the property is located.

This bill makes minor modifications to DFI's rules relating to UCC Article 9

filings made in an office of register of deeds.

Under current law, generally, a person who conveys real property to another

person must pay a real estate transfer fee to, and file a return with, the register of

deeds for the county where the property is located. The county retains 20 percent of

the fees collected and submits the remainder to the Department of Revenue (DOR)

with the return.

This bill makes a minor modification to DOR's rules relating to the real estate

transfer fee and return submitted to an office of register of deeds.