234.84(3)(e)
(e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.
234.84(3)(f)
(f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employes.
234.84(3)(g)
(g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria.
234.84(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under
sub. (2). The department shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.932 (3) (a). The department may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.84(4)(b)
(b) Except as provided in
s. 234.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $8,000,000.
234.84(5)(a)(a) The program under this section shall be administered by the department with the cooperation of the authority. The department shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the department and the authority with regard to the administration of the program, including the functions and responsibilities specified in
s. 234.932. The memorandum of understanding shall provide for reimbursement to the department by the authority for costs incurred by the department in the administration of the program.
234.84(5)(b)
(b) The department may charge a premium, fee or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee.
234.84 History
History: 1995 a. 27 s.
9116 (5);
1995 a. 116.
234.85
234.85
Minority financial interests. 234.85(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).
234.85(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 and notes 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.
234.85 History
History: 1987 a. 27;
1995 a. 27 s.
9116 (5).
234.87
234.87
Nonpoint source pollution abatement and agricultural chemical cleanup loan guarantee program. 234.87(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund under
s. 234.93 to guarantee a loan under this section if all of the following apply:
234.87(2)(a)
(a) The borrower is a landowner or operator and has a debt to asset ratio of at least 40% but not more than 80%.
234.87(3)
(3) Eligible loan. A loan is an eligible loan if all of the following apply:
234.87(3)(a)
(a) The loan is made for the installation of best management practices, as certified by the department of natural resources or the department of agriculture, trade and consumer protection, or the loan is made to a responsible person for the taking of corrective action in response to the discharge of an agricultural chemical pursuant to an order under
s. 94.73 (2) or
(2m) or at the request of the department of agriculture, trade and consumer protection.
234.87(3)(b)
(b) If the loan is made for the installation of best management practices in a priority watershed or priority lake area, the loan is made for the installation of best management practices in one of the following:
234.87(3)(b)1.
1. A priority watershed or priority lake area in which the program under
s. 281.65 is implemented after May 16, 1992.
234.87(3)(b)2.
2. A priority watershed or priority lake area in the Milwaukee river basin, including the Kinnickinnic river watershed.
234.87(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.87(3)(d)
(d) The loan term is not less than 3 years nor more than 10 years beginning on the date on which the financial institution disburses the loan.
234.87(3)(e)
(e) The financial institution believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.87(3)(f)
(f) The financial institution agrees to the percentage of guarantee established for the loan by the authority.
234.87(4)(a)(a) In guaranteeing loans under this section for the installation of best management practices, the authority shall give highest priority for loan guarantees to loans for the installation of best management practices in a priority watershed or priority lake area.
234.87(4)(b)
(b) The authority shall establish the maximum amount of a loan that may be guaranteed under this section.
234.87(5)(a)(a) Subject to
pars. (b) and
(c) and
sub. (4) (a), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of a loan eligible for a guarantee under
sub. (2). The authority shall establish the percentage of the principal of an eligible loan that it will guarantee. The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.87(5)(b)
(b) Except as provided in
s. 234.93 (3), the total guaranteed principal amount of all loans for the installation of best management practices that the authority may guarantee under
par. (a) may not exceed $850,000.
234.87(5)(c)
(c) Except as provided in
s. 234.93 (3), the total guaranteed principal amount of all loans for the taking of corrective action in response to the discharge of an agricultural chemical that the authority may guarantee under
par. (a) may not exceed $650,000.
234.90
234.90
Agricultural production loan guarantees. 234.90(1)(ad)
(ad) "Agricultural production loan" means a loan to a farmer to finance the purchase of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or any other service or consumable good necessary to produce an agricultural commodity.
234.90(1)(c)
(c) "Guaranteed loan" means an agricultural production loan which is guaranteed by the authority.
234.90(1)(d)
(d) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.90(2)
(2) Eligible loans. Except as provided in
sub. (3j), an agricultural production 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:
234.90(2)(a)
(a) The loan is to finance production of an agricultural commodity.
234.90(2)(b)
(b) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section will not exceed $20,000.
234.90(2)(bm)
(bm) If the loan is one for which the borrower is eligible under
sub. (3g), the amount of that loan does not exceed the amount of the payment, excluding interest or penalties if any, owed to the borrower by the insolvent or bankrupt dairy plant, subject to
par. (b).
234.90(2)(c)
(c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.90(2)(d)
(d) If the loan is one to which
sub. (5) applies, the rate of interest on the loan for which the borrower is obligated, including any origination fees or other charges relating to the loan, does not exceed the rate determined under
par. (c), minus 2%.
234.90(2)(e)
(e) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the loan to pay that supplier.
234.90(2)(f)
(f) The participating lender obtains a security interest for repayment of the loan in the agricultural commodity resulting from use of the loan proceeds.
234.90(2)(g)
(g) Unless waived by the authority, the borrower procures an insurance policy which protects the agricultural commodity to be financed with the proceeds of the loan against risk of loss, and the proceeds of which are payable to the participating lender.
234.90(2)(h)
(h) The term of the loan does not extend after March 31 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(2)(i)
(i) The proceeds of the loan may not be applied to the outstanding balance of any other loan, except that the proceeds may be used to refinance a loan under this section, subject to
sub. (3n).
234.90(2)(j)
(j) If the loan is one for which the borrower is eligible under
sub. (3g), the terms of the loan require the borrower to pay to the authorized lender, in repayment of the loan, money received from or on behalf of the bankrupt or insolvent dairy plant, immediately upon receipt of the money.
234.90(3)
(3) Eligible farmers. Except as provided under
subs. (3g) and
(3j), a farmer is eligible for a guaranteed loan if all of the following apply:
234.90(3)(a)
(a) The farmer does not meet the participating lender's minimum standards of creditworthiness to receive an agricultural production loan in the normal course of the participating lender's business.
234.90(3)(b)
(b) The amount of the farmer's debts totals at least 40% of the amount of the farmer's assets.
234.90(3)(c)
(c) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow and managerial ability are sufficient to preclude voluntary or involuntary liquidation before April 1 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(3)(d)
(d) The authority has not received a certification under
s. 49.855 (7) that the farmer is delinquent in making child support or maintenance payments or owes past support, medical expenses or birth expenses.
234.90(3g)
(3g) Eligible dairy farmer. Except as provided in
sub. (3j), a farmer is eligible for a guaranteed loan under this subsection if all of the following apply:
234.90(3g)(a)
(a) The farmer has not been paid for milk provided to a dairy plant because of the bankruptcy or insolvency of the dairy plant.
234.90(3g)(b)
(b) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow and managerial ability are sufficient to preclude voluntary or involuntary liquidation before April 1 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(3g)(c)
(c) The authority has not received a certification under
s. 49.855 (7) that the farmer is delinquent in making child support or maintenance payments or owes past support, medical expenses or birth expenses.
234.90(3j)
(3j) Emergency eligibility criteria. The authority may guarantee a loan to a farmer using eligibility criteria determined by the authority that differ from the criteria under
subs. (2) to
(3g) if all of the following apply:
234.90(3j)(a)
(a) The governor has determined that an emergency situation exists and that the criteria under
subs. (2) to
(3g) prevent the authority from making an adequate response to the emergency situation.
234.90(3j)(b)
(b) The authority has submitted to the joint committee on finance for review under
s. 13.10 the emergency eligibility criteria that it proposes to use, and the joint committee on finance has approved the use of the criteria for the emergency situation.
234.90(3m)
(3m) Extension. A participating lender may extend the term of a loan until no later than June 30 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(3n)(a)(a) Except as provided in
par. (b), proceeds of a guaranteed loan may be used to refinance a guaranteed loan no more than one time.
234.90(3n)(b)
(b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60% of the principal amount of the refinanced guaranteed loan has been repaid.
234.90(3p)
(3p) Instalment payment of certain loans. An authorized lender may require a borrower to repay a loan described in
sub. (3g) in instalments.
234.90(4)(a)(a) Except as provided in
par. (b), the authority shall guarantee repayment of 90% of the principal of any agricultural production loan eligible for guarantee under
sub. (2) made to a farmer eligible for a guaranteed loan under
sub. (3) or
(3g).
234.90(4)(b)1.1. Except as provided in
subd. 2., the total outstanding principal amount of all loans which the authority may guarantee under
par. (a) may not exceed $30,000,000 minus the total outstanding guaranteed principal amount that is guaranteed under
s. 234.91, subject to
s. 234.91 (5) (c).
234.90(4)(b)2.
2. The authority may request permission from the secretary of administration to increase the total outstanding principal amount of all loans it may guarantee. The secretary of administration may authorize the increase if the secretary determines that the agricultural production loan fund contains sufficient funds to guarantee loans in the requested total outstanding principal amount. If the secretary authorizes the increase, the secretary shall notify the joint committee on finance in writing. The authority may proceed with the proposed increase if within 14 working days after notification the committee does not schedule a meeting to review the proposed increase. If the committee schedules a meeting to review the proposed increase, the increase may not take effect unless the committee approves it.
234.90(5)
(5) Interest reduction. If at the time of origination or extension the interest rate on a guaranteed loan and the prime lending rate as reported by the federal reserve board in federal reserve statistical release H. 15 each equals or exceeds 10%, the authority shall pay, from the moneys in the Wisconsin development reserve fund, to the participating lender making the loan, an amount equal to 2% of the principal amount of the loan.
234.90 History
History: 1985 a. 9,
29,
153,
332,
334;
1987 a. 7,
27,
178,
421;
1989 a. 1,
10,
31,
336;
1991 a. 4,
39,
221;
1993 a. 1;
1995 a. 5,
150,
404.
