LRB-2494/1
KRP:amn
2019 - 2020 LEGISLATURE
October 1, 2019 - Introduced by Representatives Ballweg, Hebl, Edming, Krug,
Skowronski, Spreitzer, Tusler and VanderMeer, cosponsored by Senators
Marklein, Miller, Cowles, Erpenbach and Testin. Referred to Committee on
Financial Institutions.
AB489,1,3
1An Act to amend 706.11 (1m) (b) (intro.); and
to create 706.11 (1) (i) of the
2statutes;
relating to: the priority of a mortgage executed to an institution
3chartered by the federal Farm Credit Administration.
Analysis by the Legislative Reference Bureau
Current law provides that certain mortgages on real property that are duly
recorded have priority over certain other liens on the same real property, for example,
construction liens. This bill adds to the list of mortgages that have priority a
mortgage executed to an institution chartered by the federal Farm Credit
Administration that is part of the federal Farm Credit System.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB489,1
4Section
1. 706.11 (1) (i) of the statutes is created to read:
AB489,1,75
706.11
(1) (i) Any mortgage executed to an institution chartered by the federal
6farm credit administration under
12 USC 2002 (a) that is part of the federal farm
7credit system created under
12 USC 2001 to
2279cc.
AB489,2
8Section
2. 706.11 (1m) (b) (intro.) of the statutes is amended to read:
AB489,2,6
1706.11
(1m) (b) (intro.) An advance of funds, including accrued but unpaid
2interest on the advance, that is secured by a duly recorded mortgage specified in sub.
3(1) (a) to (d) or (f) to
(h) (i) and that is made after the mortgage has been recorded has
4the same priority as the mortgage if the advance is made before the mortgagee has
5actual knowledge of an intervening lien or, regardless of when the advance is made,
6if any of the following applies:
AB489,3
7Section
3.
Initial applicability.
AB489,2,98
(1) This act first applies to a mortgage described under s. 706.11 (1) (i) that is
9executed on the effective date of this subsection.
