AB675,4 6Section 4. 234.90 (3g) (b) of the statutes is amended to read:
AB675,5,117 234.90 (3g) (b) In the judgment of the participating lender, it is reasonably
8likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow, and
9managerial ability are sufficient to preclude voluntary or involuntary liquidation
10before April 1 of the calendar year following the calendar year in which the
11participating lender granted
the end of the loan term.
AB675,5 12Section 5. 234.90 (3n) (b) of the statutes is amended to read:
AB675,5,1713 234.90 (3n) (b) The proceeds of a guaranteed loan may be used to refinance a
14guaranteed loan that has been refinanced one time if at least 60% 60 percent of the
15principal amount of the refinanced guaranteed loan has been repaid and the total
16guarantee amount to the borrower under this section after the refinancing is no more
17than the amount permitted under sub. (2) (b)
.
AB675,6 18Section 6. 234.90 (4) of the statutes is renumbered 234.90 (4) (a) and amended
19to read:
AB675,5,2420 234.90 (4) (a) The authority shall may guarantee repayment collection of a
21percentage, not exceeding
90 percent, of the principal, if less than $50,000, or 80
22percent of the principal, if $50,000 or more,
of any agricultural production loan
23eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan
24under sub. (3) or (3g).
AB675,7 25Section 7. 234.90 (4) (b) of the statutes is created to read:
AB675,6,3
1234.90 (4) (b) The authority may extend a guarantee under this section beyond
2the original term of the guaranteed loan if the guaranteed loan is part of a loan
3workout agreement.
AB675,8 4Section 8. 234.90 (5) of the statutes is amended to read:
AB675,6,115 234.90 (5) Interest reduction. If at the time of origination or extension the
6interest rate on a guaranteed loan and the prime lending rate as reported by the
7federal reserve board in federal reserve statistical release H. 15 each equals or
8exceeds 10% 10 percent, the authority shall may pay, from the moneys in the
9Wisconsin development reserve fund, to the participating lender making the loan,
10an amount equal to 2% that is no more than 2 percent of the principal amount of the
11loan.
AB675,9 12Section 9. 234.905 (title) of the statutes is amended to read:
AB675,6,14 13234.905 (title) Agricultural production drought disaster assistance
14loan guarantees.
AB675,10 15Section 10. 234.905 (1) (b) (intro.) of the statutes is amended to read:
AB675,6,1816 234.905 (1) (b) (intro.) "Agricultural production drought disaster assistance
17loan" means a loan to a farmer to finance extraordinary drought-related
18disaster-related costs, including the cost of any of the following:
AB675,11 19Section 11. 234.905 (1) (b) 1. of the statutes is amended to read:
AB675,6,2320 234.905 (1) (b) 1. Fertilizer, seed, fuel, pesticides, tillage services, crop
21insurance, or any other service or consumable good necessary to produce an
22agricultural commodity to replace or supplement an agricultural commodity
23adversely affected by drought disaster conditions.
AB675,12 24Section 12. 234.905 (1) (b) 2. of the statutes is amended to read:
AB675,7,2
1234.905 (1) (b) 2. Water delivery in connection with agricultural commodities
2adversely affected by drought disaster conditions.
AB675,13 3Section 13. 234.905 (1) (b) 3. of the statutes is amended to read:
AB675,7,54 234.905 (1) (b) 3. Feed and associated expenses for animals to supplement feed
5supplies adversely affected by drought disaster conditions.
AB675,14 6Section 14. 234.905 (1) (cm) of the statutes is created to read:
AB675,7,97 234.905 (1) (cm) "Disaster" means an act of nature for which the governor
8issues an executive order declaring a state of emergency for the state or any portion
9of the state under s. 323.10.
AB675,15 10Section 15. 234.905 (1) (e) of the statutes is amended to read:
AB675,7,1211 234.905 (1) (e) "Guaranteed loan" means an agricultural production drought
12disaster assistance loan on which the authority guarantees collection.
AB675,16 13Section 16. 234.905 (1) (f) of the statutes is amended to read:
AB675,7,1714 234.905 (1) (f) "Participating lender" means a bank, production credit
15association, credit union, savings bank, savings and loan association or other person
16who makes agricultural production drought disaster assistance loans and who has
17entered into an agreement with the authority under s. 234.93 (2) (a).
AB675,17 18Section 17. 234.905 (2) (intro.), (a), (b), (c), (d), (f) and (g) of the statutes are
19amended to read:
AB675,7,2320 234.905 (2) Eligible loans. (intro.) An agricultural production drought
21disaster assistance loan made by a participating lender is eligible for guarantee of
22collection from the Wisconsin development reserve fund under s. 234.93 if all of the
23following apply:
AB675,8,3
1(a) The total of the principal amounts guarantee amount of all guaranteed
2loans extended to the borrower that are guaranteed under this section will not exceed
3$15,000 $25,000.
AB675,8,74 (b) The rate of interest on the agricultural production drought disaster
5assistance loan, including any origination fees or other charges relating to the
6agricultural production drought disaster assistance loan, does not exceed a rate
7determined by the authority after considering the conditions of the financial market.
AB675,8,128 (c) The participating lender shall pay directly any supplier of fertilizer, seed,
9fuel, pesticides, tillage services, crop insurance, animal feed, water or other service
10or consumable good necessary to produce an agricultural commodity, if the borrower
11obtains the agricultural production drought disaster assistance loan to pay that
12supplier.
AB675,8,1613 (d) The participating lender obtains security for repayment of the agricultural
14production drought disaster assistance loan or follows other procedures required by
15the authority to secure repayment of the agricultural production drought disaster
16assistance loan.
AB675,8,1817 (f) The proceeds of the agricultural production drought disaster assistance loan
18may not be applied to the outstanding balance of any other loan.
AB675,8,2019 (g) The proceeds of the agricultural production drought disaster assistance
20loan may not be used to refinance a loan made under this section.
AB675,18 21Section 18. 234.905 (2) (e) of the statutes is repealed.
AB675,19 22Section 19. 234.905 (3) (a) of the statutes is amended to read:
AB675,8,2523 234.905 (3) (a) The farmer does not meet the participating lender's minimum
24standards of creditworthiness to receive an agricultural production drought disaster
25assistance loan in the normal course of the participating lender's business.
AB675,20
1Section 20. 234.905 (3) (b) of the statutes is amended to read:
AB675,9,52 234.905 (3) (b) The participating lender projects the amount of the farmer's
3debts to be approximately 40% or more related to the agricultural production that
4is the subject of the loan totals at least 40 percent
of the amount of the farmer's assets
5related to the agricultural production that is the subject of the loan.
AB675,21 6Section 21. 234.905 (3) (e) of the statutes is amended to read:
AB675,9,97 234.905 (3) (e) The participating lender projects that the farmer will lose
8approximately 40% 40 percent or more of the farmer's crops agricultural
9commodities
because of drought conditions a disaster.
AB675,22 10Section 22. 234.905 (3m) of the statutes is repealed.
AB675,23 11Section 23. 234.905 (4) (a) of the statutes is amended to read:
AB675,9,1612 234.905 (4) (a) Except as provided in par. (b), on or before June 30, 1989, the
13The authority shall may guarantee collection of 90% up to 90 percent of the principal
14of any agricultural production drought disaster assistance loan eligible for
15guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub.
16(3).
AB675,24 17Section 24. 234.905 (4) (b) of the statutes is repealed.
AB675,25 18Section 25. 234.905 (4) (bn) of the statutes is created to read:
AB675,9,2119 234.905 (4) (bn) The term of the authority's loan guarantee under this section
20may not exceed 3 years, unless the guaranteed loan is included in a loan workout
21agreement.
AB675,26 22Section 26. 234.905 (5) of the statutes is amended to read:
AB675,9,2523 234.905 (5) Interest reduction. The authority shall may pay, from the moneys
24in the Wisconsin development reserve fund, to each participating lender an amount
25equal to 3.5% that is no more than 3.5 percent of the principal amount of any

1guaranteed loan to reduce interest payments on the guaranteed loan paid by a
2farmer, except that the authority shall make interest reduction payments for no more
3than 3 years of the repayment term of any guaranteed loan
.
AB675,27 4Section 27. 234.907 (2) (c) of the statutes is amended to read:
AB675,10,75 234.907 (2) (c) Subject to par. (cm), the total principal guarantee amount of all
6loans to the borrower that are guaranteed under this section will not exceed
7$750,000.
AB675,28 8Section 28. 234.907 (2) (cm) of the statutes is amended to read:
AB675,10,129 234.907 (2) (cm) The total principal guarantee amount extended of all loans to
10the borrower for loans that are guaranteed under this section and that are made for
11working capital or an item necessary to, or used to, commercially harvest whitefish
12from Lake Superior will not exceed $100,000.
AB675,29 13Section 29. 234.907 (2) (f) of the statutes is amended to read:
AB675,10,1714 234.907 (2) (f) The loan term does not extend beyond of the authority's
15guarantee under this section is not longer than
15 years after the date that the
16participating lender disburses the loan unless the loan is extended by the authority
.
17This paragraph does not apply to a loan that is part of a loan workout agreement.
AB675,30 18Section 30. 234.907 (3) of the statutes is amended to read:
AB675,10,2519 234.907 (3) Guarantee of collection. The authority shall may guarantee
20collection of a percentage, not exceeding 90%, up to 90 percent of the principal of any
21loan eligible for a guarantee under sub. (2). The authority shall establish the
22percentage of the unpaid principal of an eligible loan that will be guaranteed, using
23the procedures described in the guarantee agreement under s. 234.93 (2) (a). The
24authority may establish a single percentage for all guaranteed loans or establish
25different percentages for eligible loans on an individual basis.
AB675,31
1Section 31. 234.91 (2) (c) of the statutes is amended to read:
AB675,11,52 234.91 (2) (c) The total outstanding guaranteed principal guarantee amount
3of all loans made to the borrower that are guaranteed under this section will not
4exceed $200,000, or $100,000 if any of the loans is affected by any other state or
5federal credit assistance program.
AB675,32 6Section 32. 234.91 (3) (a) (intro.) of the statutes is amended to read:
AB675,11,77 234.91 (3) (a) (intro.) The farmer is either any of the following:
AB675,33 8Section 33. 234.91 (3) (a) 3. of the statutes is created to read:
AB675,11,119 234.91 (3) (a) 3. A person who intends to operate farm premises and maintain
10the family farmstead on the farm premises and who has previous experience with the
11operation of the specific farm premises.
AB675,34 12Section 34. 234.91 (3) (b) of the statutes is amended to read:
AB675,11,1813 234.91 (3) (b) The amount of the farmer's debts related to the agricultural
14assets
, including the loan, is at least 40 percent and does not exceed 85% 85 percent
15of the farmer's assets, including the value of the agricultural assets to be acquired,
16or the improvements to be made, with the proceeds of the loan. The authority shall
17consider only the farmer's debts and assets that are related to the agricultural assets
18that are the subject of the loan.
AB675,35 19Section 35. 234.91 (4) of the statutes is amended to read:
AB675,11,2520 234.91 (4) Origination fees. The authority shall may charge a guarantee
21origination fee on every loan guaranteed under this section. The amount of the fee
22shall be 1% may not exceed 1.5 percent of a loan's guaranteed principal. The
23participating lender shall collect the fee and remit it to the authority. The authority
24shall deposit all fees received under this subsection in the Wisconsin development
25reserve fund to be used to guarantee loans under this section.
AB675,36
1Section 36. 234.91 (5) (a) of the statutes is amended to read:
AB675,12,72 234.91 (5) (a) The authority shall may guarantee collection of a percentage of
3the principal of a loan eligible for a guarantee under sub. (2). The principal total
4guarantee
amount of an eligible loan that the authority may guarantee all loans to
5the farmer that are guaranteed under this section
may not exceed the borrower's net
6worth or 25% 25 percent of the total loan amount, whichever is less, calculated at the
7time the loan is made.
AB675,37 8Section 37. 234.91 (5) (b) of the statutes is amended to read:
AB675,12,119 234.91 (5) (b) The term of a the authority's loan guarantee under this section
10may not exceed is not longer than 10 years. This paragraph does not apply to a
11guarantee of a loan that is part of a loan workout agreement.
AB675,38 12Section 38. 234.93 (1) (d) of the statutes is amended to read:
AB675,12,1413 234.93 (1) (d) To be used for guaranteeing loans under s. 234.91, fees Fees
14collected under s. 234.91 (4).
AB675,39 15Section 39. Initial applicability.
AB675,12,2016 (1) Agricultural production disaster assistance loan guarantees. The
17treatment of section 234.905 (title), (1) (b) (intro.), 1., 2., and 3., (cm), (e), and (f), (2)
18(intro.), (a), (b), (c), (d), (e), (f), and (g), (3) (a), (b), and (e), (3m), (4) (a), (b), and (bn),
19and (5) of the statutes first applies to a loan guarantee for which an application is
20made under section 234.905 of the statutes on the effective date of this subsection.
AB675,13,221 (2) Agricultural production, agricultural development, and farm assets
22reinvestment management loan guarantees.
The treatment of sections 234.90 (2)
23(b) and (h), (3) (b) and (c), (3g) (b), (3n) (b), (4), and (5), 234.907 (2) (c), (cm), and (f)
24and (3), 234.91 (2) (c), (3) (a) (intro.) and 3. and (b), (4), and (5) (a) and (b), and 234.93
25(1) (d) of the statutes first applies to a loan guarantee for which an application is

1made under section 234.90, 234.907, or 234.91 of the statutes on the first day of the
2calendar year after the effective date of this subsection.
AB675,13,33 (End)
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