Wisconsin Secured Promissory Note Overview
A secured promissory note in Wisconsin is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Wisconsin law governs the creation, perfection, and enforcement of security interests under the Uniform Commercial Code (UCC) as adopted by the state. The maximum interest rate for most loans in Wisconsin is 12% (default).
12% default rate; 5% maximum for certain non-business loans; higher rates for licensed lenders; no cap for business loans. Lenders should verify that the agreed-upon interest rate complies with Wisconsin's usury laws before finalizing the note. Charging interest above the legal limit can result in severe penalties, including forfeiture of interest and potential civil liability.
For secured notes involving real property in Wisconsin, judicial foreclosure applies. Understanding your state's foreclosure process is critical because it determines the timeline, costs, and lender's rights in the event of borrower default.
12% (default)
Usury rate cap
Department of Financial Institutions
UCC filing office
Judicial
Foreclosure type
Yes
Deficiency judgment
Wisconsin Legal Requirements
Wisconsin has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under WI law:
Important: Wisconsin Usury Laws
Wisconsin's maximum interest rate is 12% (default). 12% default rate; 5% maximum for certain non-business loans; higher rates for licensed lenders; no cap for business loans. Exceeding the legal limit may void the interest portion of your note or result in civil penalties.
Essential Elements
- Written Agreement: The note must be in writing, signed by the borrower, and clearly state the loan terms
- Compliant Interest Rate: Must not exceed Wisconsin's 12% (default) usury cap
- Collateral Description: Specific, identifiable description of all pledged property
- Security Agreement: Grant of security interest signed by the borrower (debtor)
- UCC-1 Filing: Filed with the Department of Financial Institutions, UCC Section for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Wisconsin
To perfect a security interest in personal property in Wisconsin, the lender must file a UCC-1 financing statement with the Department of Financial Institutions, UCC Section. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.
Prepare the UCC-1 Form
Include the debtor's exact legal name, secured party name, and detailed collateral description
File with the Department of Financial Institutions
Submit online or by mail with the required filing fee
Monitor and Renew
UCC-1 filings last 5 years; file a continuation statement before expiration
Terminate After Payoff
File a UCC-3 termination statement when the loan is fully repaid
Wisconsin Foreclosure & Repossession
Wisconsin uses judicial foreclosure for real property collateral. For personal property (vehicles, equipment, inventory), the lender generally has the right to repossess the collateral without court action, provided it can be done without breaching the peace.
Regarding deficiency judgments in Wisconsin: Yes, with 2-year redemption period. The lender must follow Wisconsin's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Wisconsin Rule |
|---|---|
| Foreclosure Type | Judicial |
| Deficiency Judgment | Yes, with 2-year redemption period |
| Statute of Limitations | 6 years (oral and written contracts) |
| Usury Rate | 12% (default) |
| UCC Filing Office | Department of Financial Institutions, UCC Section |
Sample Wisconsin Secured Promissory Note
Below is a preview of our Wisconsin-specific secured promissory note. Your customized document will include all terms compliant with WI law.
STATE OF WISCONSIN
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Wisconsin Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Wisconsin Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 12% (default) in WI)
Collateral: [Description]
Wisconsin Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Wisconsin.
Official Wisconsin Resources
Use these official resources to verify Wisconsin requirements, file UCC documents, and access state legal information.
Other Wisconsin Promissory Note Types
Need a different type of promissory note for Wisconsin? We offer state-specific templates for every type.
Create Your Wisconsin Secured Promissory Note
Answer a few questions and download your Wisconsin-compliant secured note in minutes.
No account required. Free to create and preview.