234.907(3)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $5,000,000.
234.91
234.91
Farm assets reinvestment management loan guarantee program. 234.91(1)(a)
(a) "Agricultural assets" means machinery, equipment, facilities, land or livestock.
234.91(1)(b)
(b) "Farm credit service" includes a production credit association, federal land credit association and agricultural credit association.
234.91(1)(e)
(e) "Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under
s. 234.93 (2) (a). The term does not include a seller under a land contract.
234.91(2)
(2) Eligible loans. A loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.91(2)(a)
(a) The borrower is a farmer who is eligible for a guarantee under
sub. (3).
234.91(2)(b)
(b) The loan is made to finance the acquisition of agricultural assets or the cost of improvements to facilities or land. The agricultural assets must be acquired, and the improvements must be made, for agricultural purposes.
234.91(2)(c)
(c) The total outstanding guaranteed principal amount of all loans made to the borrower that are guaranteed under this section will not exceed $100,000, or $50,000 if any of the loans is affected by any other state or federal credit assistance program.
234.91(2)(d)
(d) The rate of interest and the loan terms, including any associated fees or charges, are approved by the authority.
234.91(2)(e)
(e) The participating lender obtains a security interest in assets of the borrower sufficient to secure repayment of the loan.
234.91(2)(f)
(f) The proceeds of the loan are not applied to the outstanding balance of any other loan or forbearance.
234.91(3)
(3) Eligible farmers. A farmer is eligible for a guarantee of a loan under this section if all of the following apply at the time the loan is made:
234.91(3)(a)
(a) The farmer is currently operating farm premises.
234.91(3)(b)
(b) The amount of the farmer's debts, including the loan, does not exceed 85% of the farmer's assets, including the value of the agricultural assets to be acquired, or the improvements to be made, with the proceeds of the loan.
234.91(3)(c)
(c) The participating lender considers the farmer's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation during the term of the loan.
234.91(4)
(4) Origination fees. The authority shall charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee shall be 1% of a loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund to be used to guarantee loans under this section.
234.91(5)(a)(a) Subject to
par. (c), the authority shall guarantee collection of a percentage of the principal of a loan eligible for a guarantee under
sub. (2). The principal amount of an eligible loan that the authority may guarantee may not exceed the borrower's net worth or 25% of the total loan amount, whichever is less, calculated at the time the loan is made.
234.91(5)(b)
(b) The term of a loan guarantee for a loan made to finance the acquisition of machinery, equipment or livestock, or the cost of improvements to facilities or land, may not exceed 5 years. The term of a loan guarantee for a loan made to finance the acquisition of facilities or land may not exceed 10 years.
234.91(5)(c)
(c) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed any of the following:
234.91(5)(c)1.
1. Before July 1, 1996, the lesser of $3,000,000 or the difference between $30,000,000 and the total outstanding principal amount of all loans guaranteed under
s. 234.90.
234.91(5)(c)2.
2. On and after July 1, 1996, and before July 1, 1997, the lesser of $5,000,000 or the difference between $30,000,000 and the total outstanding principal amount of all loans guaranteed under
s. 234.90.
234.91(5)(c)3.
3. On and after July 1, 1997, the lesser of $10,000,000 or the difference between $30,000,000 and the total outstanding principal amount of all loans guaranteed under
s. 234.90.
234.91 History
History: 1995 a. 150.
234.93
234.93
Wisconsin development reserve fund. 234.93(1)(1)
Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans, a Wisconsin development reserve fund, consisting of all of the following:
234.93(1)(a)
(a) Moneys appropriated to the authority under
s. 20.490 (5) (a),
(q),
(r) and
(s) or received by the authority for the Wisconsin development reserve fund from any other source.
234.93(1)(b)
(b) Any income from investment of money in the Wisconsin development reserve fund by the authority under
s. 234.03 (18).
234.93(1)(c)
(c) Any moneys transferred from the recycling loan fund, agricultural production loan fund or drought assistance and development loan fund.
234.93(2)(a)(a) The authority shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin development reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program:
234.93(2)(a)2.
2. Any conditions upon which the authority may refuse to enter into such an agreement.
234.93(2)(a)3.
3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.93(2)(b)
(b) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under s.
234.67 (5), 1989 stats., s.
234.82 (5), 1989 stats., s.
234.90 (7), 1989 stats., s.
234.905 (7), 1989 stats., or s.
234.907 (5), 1989 stats., in effect immediately before August 15, 1991, shall continue in full force and effect, as if entered into under
par. (a).
234.93(2)(c)
(c) The authority may not use any moneys other than those in the Wisconsin development reserve fund for programs guaranteed by the Wisconsin development reserve fund.
234.93(2)(d)
(d) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the loan guarantee program, to advise the authority about lending requirements and issues related to a loan guarantee program.
234.93(3)
(3) Increases or decreases in loan guarantees. The authority may request the joint committee on finance to take action under
s. 13.10 to permit the authority to increase or decrease the total principal amount or total outstanding guaranteed principal amount of loans that it may guarantee under a program guaranteed by the Wisconsin development reserve fund. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.
234.93(3m)
(3m) Extension of loan guarantee program. When the authority prepares a fiscal estimate under
s. 13.093 (2) (a) with respect to any bill that extends a program that is guaranteed by funds from the Wisconsin development reserve fund, the authority shall include in its fiscal estimate a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the program is extended, with such amounts and the balance remaining if the program is not extended.
234.93(4)(a)(a) Annually on June 30, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin development reserve fund on that date, after deducting an amount sufficient for all of the following:
234.93(4)(a)1.
1. To pay all outstanding claims under the programs guaranteed by funds from the Wisconsin development reserve fund.
234.93(4)(a)2.
2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.
234.93(4)(b)
(b) Annually on June 30, the executive director of the authority shall provide to the secretary of administration and to the joint committee on finance a signed statement that includes all of the following:
234.93(4)(b)1.
1. The amounts required to pay outstanding claims and to fund guarantees under each of the programs guaranteed by funds from the Wisconsin development reserve fund on that date.
234.93(4)(b)2.
2. An explanation of how each amount under
subd. 1. was calculated or otherwise determined.
234.93(4)(b)3.
3. The amount of the balance, if any, that remains in the Wisconsin development reserve fund after deducting the amounts under
subd. 1. and that will be transferred to the general fund under
par. (a).
234.93(4)(b)4.
4. A projection of what the amounts under
subds. 1. and
3. will be on June 30 in each of the next 2 years.
234.93(4m)
(4m) Limitation on loan guarantees. The authority shall regularly monitor the cash balance in the Wisconsin development reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in
sub. (4) (a) 1. and
2.
234.93(5)
(5) Annual report. On or before November 1 annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under
s. 13.172 (2) and to the joint committee on finance an annual report on the number and total dollar amount of guaranteed loans under each of the programs guaranteed by the Wisconsin development reserve fund, the default rate on the loans and any other information on a program guaranteed by the Wisconsin development reserve fund that the authority determines is significant.
234.93(6)
(6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin development reserve fund.
234.932
234.932
Wisconsin job training reserve fund. 234.932(1)
(1)
Definition. In this section, "department" means the department of commerce.
234.932(2)
(2) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under
s. 234.84, a Wisconsin job training reserve fund, consisting of all of the following:
234.932(2)(a)
(a) Moneys appropriated to the authority under
s. 20.490 (6) (a) and
(k) or received by the authority for the Wisconsin job training reserve fund from any other source.
234.932(2)(b)
(b) Any income from investment of money in the Wisconsin job training reserve fund by the authority under
s. 234.03 (18).
234.932(3)(a)(a) The authority or department shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in the loan program guaranteed by the Wisconsin job training reserve fund. The authority or department may determine all of the following, consistent with the terms of the loan guarantee program:
234.932(3)(a)2.
2. Any conditions upon which the authority or department may refuse to enter into such an agreement.
234.932(3)(a)3.
3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.932(3)(b)
(b) The authority may not use any moneys other than those in the Wisconsin job training reserve fund for the job training loan guarantee program, and may not use moneys in the Wisconsin job training reserve fund for any programs other than the job training loan guarantee program.
234.932(3)(c)
(c) The department may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the job training loan guarantee program, to provide advice about lending requirements and issues related to the job training loan guarantee program.
234.932(3)(d)
(d) The authority shall ensure that the cash balance in the Wisconsin job training reserve fund is sufficient to fund guarantees under the job training loan guarantee program at a ratio of $1 of reserve funding to $4 of total outstanding guaranteed principal that the authority may guarantee under the program and to pay all outstanding claims under the program. The authority shall regularly monitor the cash balance in the Wisconsin job training reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph.
234.932(4)
(4) Increases or decreases in loan guarantees. The authority or department may request the joint committee on finance to take action under
s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it may guarantee under the job training loan guarantee program. Included with its request, the authority or department shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the job training loan guarantee program, and the balance remaining in the Wisconsin job training reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.
234.932(5)
(5) Annual report. Annually, the authority or department shall report on the number and total dollar amount of guaranteed loans under the job training loan guarantee program, the default rate on the loans and any other information on the program that the authority or department determines is significant.
234.932(6)
(6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin job training reserve fund.
234.932 History
History: 1995 a. 27 s.
9116 (5);
1995 a. 116.
234.935
234.935
Cultural and architectural landmark loan guarantees. 234.935(1)(1)
Definition. In this section, "cultural and architectural landmark" means real property and improvements designated in an executive order as a valued historical landmark and an architectural masterpiece, or an educational tourist center located adjacent to the real property and improvements designated in an executive order as a valued historical landmark and an architectural masterpiece.
234.935(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
234.935(2)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (3).
234.935(2)(c)
(c) The lender is the authority, or a financial institution that enters into an agreement under
s. 234.93 (2) (a), or both.
234.935(3)
(3) Eligible borrower. An organization qualifies as an eligible borrower if all of the following apply:
234.935(3)(b)
(b) The organization owns or leases a cultural and architectural landmark.
234.935(4)
(4) Eligible loan. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.935(4)(a)
(a) The borrower uses the loan proceeds for acquiring, constructing, improving, rehabilitating or equipping a cultural and architectural landmark.
234.935(4)(b)
(b) The loan proceeds are used for the purchase or improvement of land, buildings, machinery or equipment, or for related expenses.
234.935(4)(c)
(c) The loan proceeds are not used for entertainment expenses or for refinancing existing debt.
234.935(4)(d)
(d) The lender obtains a security interest for repayment of the loan in real or personal property of the debtor.
