Wisconsin Statutes 422.417 – Restrictions on security interests
Current as of: 2023 | Check for updates
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Terms Used In Wisconsin Statutes 422.417
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
- Property: includes real and personal property. See Wisconsin Statutes 990.01
(1) With respect to a consumer credit sale a seller may take a security interest only in:
(a) The property sold;
(b) Goods upon which the property sold is installed or to which it is annexed, or goods upon which the services sold are performed, if the obligation secured is $500 or more;
(c) Real property to which the property sold is affixed, or which is maintained, repaired or improved as a result of the sale of the property or services, if the obligation secured is $1,000 or more; and
(d) Goods of the consumer which were the subject of a prior transaction with the seller which is consolidated (s. 422.206) with the consumer credit sale, or if the consumer credit sale is made pursuant to an open-end credit plan, goods previously purchased by the consumer pursuant to the plan, subject however to s. 422.418.
(2) With respect to a consumer lease, except as otherwise provided in s. 429.205 with respect to a motor vehicle consumer lease, a lessor may not take a security interest in any property owned or leased by the customer other than the leased goods to secure the lessor’s obligations under the lease. This subsection does not prohibit a security interest in a cash security deposit for a consumer lease of motor vehicles.
(3) With respect to a consumer loan, in addition to the limitations on security interests required by 12 C.F.R. 227.13 (d), 12 C.F.R. 535.2 (a) (4) or 16 C.F.R. 444.2 (a) 4, if any, a lender may not take a security interest, other than a purchase money security interest, in:
(a) Clothing of the customer and the customer’s dependents and the following, if they are not fixtures: dining table and chairs, refrigerator, heating stove, cooking stove, radio, beds and bedding, couch and chairs, cooking utensils and kitchenware; or
(b) Real property if the obligation secured is less than $1,000.
(4) A violation of this section is subject to s. 425.304.