409.334 Priority of security interests in fixtures and crops.

315 words·~1 min read·/wi/chapter-409/409-334-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Security interest in fixtures under this chapter. A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land.

(2)Security interest in fixtures under real property law. This chapter does not prevent creation of an encumbrance upon fixtures under real property law.

(3)General rule: subordination of security interest in fixtures. In cases not governed by subs.

(4)to

(8), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.

(4)Fixtures purchase-money priority. Except as otherwise provided in sub.

(8), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:

(a)The security interest is a purchase-money security interest;

(b)The interest of the encumbrancer or owner arises before the goods become fixtures; and

(c)The security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.

(5)Priority of security interest in fixtures over interests in real property. A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(a)The debtor has an interest of record in the real property or is in possession of the real property and the security interest:

1. Is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and

2. Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;