231.15
231.15
Rights of bondholders. Any holder of bonds issued under this chapter or a trustee under a trust agreement, trust indenture, indenture of mortgage or deed of trust entered into under this chapter, except to the extent that their rights are restricted by any bond resolution, may, by any suitable form of legal proceedings, protect and enforce any rights under the laws of this state or granted by the bond resolution. Such rights include the right to compel the performance of all duties of the authority required by this chapter or the bond resolution; to enjoin unlawful activities; and in the event of default with respect to the payment of any principal of, premium, if any, and interest on any bond or in the performance of any covenant or agreement on the part of the authority in the bond resolution, to apply to a court to appoint a receiver to administer and operate the projects, the revenues of which are pledged to the payment of principal of, premium, if any, and interest on such bonds, with full power to pay, and to provide for payment of, principal of, premium, if any, and interest on such bonds, and with such powers, subject to the direction of the court, as are permitted by law and are accorded receivers, excluding any power to pledge additional revenues of the authority to the payment of such principal, premium and interest.
231.15 History
History: 1973 c. 304.
231.16
231.16
Refunding bonds. 231.16(1)(1) The authority may issue bonds to refund any outstanding bond of the authority or indebtedness that a participating health institution, participating educational institution or participating child care provider may have incurred for the construction or acquisition of a project prior to or after April 30, 1980, including the payment of any redemption premium on the outstanding bond or indebtedness and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity, or to pay all or any part of the cost of constructing and acquiring additions, improvements, extensions or enlargements of a project or any portion of a project. No bonds may be issued under this section unless the authority has first entered into a new or amended agreement with a participating health institution, participating educational institution or participating child care provider to provide sufficient revenues to pay the costs and other items described in
s. 231.13.
231.16(2)
(2) The authority may apply the proceeds of the bonds issued to refund or refinance any outstanding bond or indebtedness to the purchase or retirement at maturity or redemption of the outstanding bond or indebtedness either on its earliest or any subsequent redemption date or upon the purchase or at the maturity of the bond or indebtedness. The authority may, pending application, place the proceeds in escrow to be applied to the purchase or retirement at maturity or redemption on any date the authority determines.
231.16(3)
(3) All bonds issued under this section shall be subject to this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter, except that the limitations with respect to dates under
s. 231.03 (6) (e) and
(f) and
(14) do not apply to bonds issued under this section.
231.17
231.17
Investment of funds. The authority may invest any funds in bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal and interest of which are guaranteed by, the United States; in those certificates of deposit or time deposits constituting direct obligations of any bank which are insured by the federal deposit insurance corporation; in certificates of deposit constituting direct obligations of any credit union which are insured by the Wisconsin credit union savings insurance corporation or the national board, as defined in
s. 186.01 (3m); in certificates of deposit constituting direct obligations of any savings and loan association or savings bank which are insured by the federal deposit insurance corporation; in short-term discount obligations of the federal national mortgage association; or in any of the investments provided under
s. 66.04 (2) (a). Any such securities may be purchased at the offering or market price thereof at the time of such purchase.
231.18
231.18
Investment authorization. The notes and bonds of the authority are securities in which all public officers and bodies of this state and all political subdivisions and public officers thereof, all banks, trust companies, savings banks and institutions, savings and loan associations, investment companies and all personal representatives, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys or other funds belonging to them or within their control.
231.18 History
History: 1973 c. 304;
1979 c. 279.
231.19(1)(1) The authority shall keep an accurate account of all its activities and of all its receipts and expenditures, and shall annually in January make a report thereof to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under
s. 13.172 (2). The reports shall be in a form approved by the state auditor. The state auditor may investigate the affairs of the authority, may examine the properties and records of the authority and may prescribe methods of accounting and the rendering of periodical reports in relation to projects undertaken by the authority.
231.19(2)
(2) The authority, annually on January 15, shall file with the department of administration and the joint legislative council a complete and current listing of all forms, reports and papers required by the authority to be completed by any person, other than a governmental body, as a condition of obtaining the approval of the authority or for any other reason. The authority shall attach a blank copy of each such form, report or paper to the listing.
231.20
231.20
Waiver of construction and bidding requirements. In exercising its powers under
s. 101.12, the department of commerce or any city, village, town or county may, within its discretion for proper cause shown, waive any particular requirements relating to public buildings, structures, grounds, works and improvements imposed by law upon projects under this chapter; the requirements of
s. 101.13 may not be waived, however. If, however, the prospective lessee so requests in writing, the authority shall, through the participating health institution, participating educational institution or participating child care provider as its agent, call for construction bids in such manner as is determined by the authority with the approval of the lessee.
231.21
231.21
Employes under social security. The authority may take such action as it deems appropriate to enable its employes to come within the provisions and obtain the benefits of the federal social security act.
231.21 History
History: 1973 c. 304.
231.22
231.22
Effect of chapter. This chapter shall be deemed to provide a complete, additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws. The issuance of bonds and refunding bonds under this chapter need not comply with the requirements of any other law applicable to the issuance of bonds.
231.22 History
History: 1973 c. 304.
231.23
231.23
Nonprofit institutions. It is intended that all nonprofit health and educational institutions and child care providers in this state be enabled to benefit from and participate in this chapter. To this end, all nonprofit health and educational institutions and child care providers operating, or authorized to be operated, under any law of this state may undertake projects and utilize the capital financing sources and methods of repayment provided by this chapter, the provisions of any other laws to the contrary notwithstanding.
231.24
231.24
Liberal construction. This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect its purposes.
231.24 History
History: 1973 c. 304.
231.25
231.25
Tax exemption. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a project undertaken pursuant to this chapter will constitute the performance of an essential public function, neither the authority nor any agent with which it contracts to operate or maintain a project is required to pay any taxes or assessments, including mortgage recording taxes, upon or in respect of a project or any property acquired or used by the authority or its agent under this chapter and the authority's income therefrom shall at all times be free from taxation of every kind by the state and by political subdivisions of the state.
231.25 History
History: 1973 c. 304;
1977 c. 29.
231.26
231.26
Residential facility for the severely physically disabled. 231.26(1)(1) If proper application is made in accordance with this chapter for a project meeting the requirements of this section, the authority shall undertake a project to provide a residential facility for severely physically disabled persons utilizing any capital finance sources, methods of repayment and operation specified in this chapter.
231.26(2)
(2) The proposed residential facility shall provide a stable, viable environment for severely physically disabled individuals in that, while attendants will be on call at all times and personal care assistance will be provided, the residents will be given the opportunity to fulfill useful and productive life styles.
231.26(3)
(3) The facility's design features shall accommodate the specific needs of the residents and provide opportunities for:
231.26(3)(e)
(e) Assisted living services performed by resident staff; and
231.26 History
History: 1973 c. 304;
1975 c. 277.
231.27
231.27
Minority financial interests. 231.27(1)
(1) In this section, "minority business", "minority financial adviser" and "minority investment firm" mean a business, financial adviser and investment firm, respectively, certified by the department of commerce under
s. 560.036 (2).
231.27(2)
(2) The authority shall annually report to the department of administration the total amount purchased from and contracted or subcontracted under contracts made by the authority to minority businesses, the total amount of bonds issued by the authority with the underwriting services of minority investment firms and the total amount of moneys expended by the authority for the services of minority financial advisers during the preceding state fiscal year.
231.27 History
History: 1987 a. 27;
1995 a. 27 s.
9116 (5).
231.35
231.35
Rural hospital loan guarantee. 231.35(1)(a)
(a) "Guaranteed loan" means a loan that the authority guarantees under
sub. (3).
231.35(1)(b)
(b) "Hospital services" means medical or social services provided by a hospital and includes day care, hospice care and outpatient treatment.
231.35(1)(c)
(c) "Participating lender" means any person, including the authority, who does all of the following:
231.35(1)(c)2.
2. Enters into a guarantee agreement with the authority under
sub. (6).
231.35(1)(d)
(d) "Rural" means outside a metropolitan statistical area specified under
42 CFR 412.62 (ii) (A) or in a city, village or town with a population of not more than 14,000.
231.35(2)
(2) A person is eligible for a guarantee under this section if the person is one of the following:
231.35(2)(a)
(a) A nonprofit rural hospital with no more than 100 beds.
231.35(2)(b)
(b) A cooperative organized under
ch. 185 that consists of one or more rural hospitals, each with no more than 100 beds.
231.35(3)
(3) Subject to
sub. (4), the authority may guarantee a loan under this section that is made on or before July 29, 1995, if all of the following apply:
231.35(3)(b)
(b) The borrower will use the proceeds of the loan to finance the acquisition, construction, remodeling or conversion of space at a rural hospital, or the acquisition or construction of equipment for a rural hospital, to provide hospital services.
231.35(3)(c)
(c) Not more than 25% of the proceeds of the loan will be used to refinance a previous loan that financed the acquisition, construction, remodeling or conversion of space at a rural hospital to provide hospital services.
231.35(3)(d)
(d) The principal amount of the loan is at least $100,000, but not more than $1,500,000.
231.35(3)(e)
(e) The loan is made by a participating lender.
231.35(3)(f)
(f) The borrower pays to the authority, for deposit into the rural hospital loan fund, a service charge in an amount determined by the authority but not exceeding 0.5% of the total principal amount of the loan.
231.35(3)(g)
(g) The borrower provides proof of local community support for the acquisition, construction, remodeling or conversion to be financed by the loan proceeds by obtaining a loan guarantee of at least 20% of the loan principal from the community or another 3rd party that is acceptable to the participating lender and to the authority.
231.35(3)(h)
(h) The term of the loan is not longer than 10 years.
231.35(3)(i)
(i) The borrower establishes a reserve fund of not less than 10% of the loan principal.
231.35(3)(j)
(j) The total of the borrower's reserve fund under
par. (i), the 3rd-party loan guarantee under
par. (g) and the guarantee under
sub. (4) (a) 1. will not exceed 90% of the loan principal.
231.35(4)(a)1.1. The authority shall guarantee payment or collection of 20% of the principal of loans guaranteed under
sub. (3).
231.35(4)(b)
(b) The total principal amount of all loans that the authority may guarantee under
sub. (3) may not exceed $5,000,000.
231.35(5)(a)(a) A participating lender shall determine when a guaranteed loan is in default, except that a guaranteed loan that is not repaid in full at the end of the loan's term is in default.
231.35(5)(b)
(b) In the event of a default on a guaranteed loan, the authority shall pay to the participating lender, from the rural hospital loan fund and in accordance with the terms and conditions of the guarantee agreement entered into under
sub. (6), 20% of the unpaid principal amount of the defaulted guaranteed loan.
231.35(5)(c)
(c) Payments under
par. (b) may not include any interest, origination fees or other charges relating to the guaranteed loan or any collection costs incurred by the participating lender.
231.35(6)(a)(a) The authority shall enter into a guarantee agreement with any person who makes loans described under
sub. (3) (b) and who wishes to have those loans guaranteed under this section. The guarantee agreement shall comply with the rules promulgated by the department of commerce under
sub. (7) (b).
231.35(6)(b)
(b) The authority may use money from the rural hospital loan fund to guarantee loans made for the purposes described in
sub. (3) (b), if the authority sets out the terms and conditions of the guarantee in a guarantee agreement that complies with the rules promulgated by the department of commerce under
sub. (7) (b).
231.35(6)(c)
(c) The authority may not use any moneys other than those in the rural hospital loan fund to guarantee a loan under this section.
231.35(7)
(7) With the advice of the rural health development council, the department of commerce shall promulgate rules specifying all of the following:
231.35(7)(b)
(b) With respect to a guarantee agreement entered into by the authority under
sub. (6):
231.35(7)(b)2.
2. Any conditions upon which the authority may refuse to enter into such an agreement.
231.35(7)(b)3.
3. The procedure for making a demand for payment under the guarantee agreement, or for payment by the authority under the guarantee agreement, in the event of a default of a guaranteed loan.
231.35(7)(b)4.
4. Criteria for determining whether the guarantee is a guarantee of collection or payment.
231.35(7)(b)5.
5. Any procedures that the authority may impose to carry out the agreement.
231.35(9)
(9) Annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under
s. 13.172 (2) a report on the number of loans guaranteed under this section, the annual gross revenues of the borrowers who have received the guaranteed loans, the default rate on those loans and any other information on the program under this section which the authority determines is significant.
231.36
231.36
Rural hospital loan fund. There is established under the jurisdiction and control of the authority a rural hospital loan fund consisting of all of the following:
