234.905(1)(f)
(f) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production drought assistance loans and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.905(2)
(2) Eligible loans. An agricultural production drought assistance 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:
234.905(2)(a)
(a) The total of the principal amounts of all guaranteed loans extended to the borrower under this section will not exceed $15,000.
234.905(2)(b)
(b) The rate of interest on the agricultural production drought assistance loan, including any origination fees or other charges relating to the agricultural production drought assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.905(2)(c)
(c) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed, water or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the agricultural production drought assistance loan to pay that supplier.
234.905(2)(d)
(d) The participating lender obtains security for repayment of the agricultural production drought assistance loan or follows other procedures required by the authority to secure repayment of the agricultural production drought assistance loan.
234.905(2)(e)
(e) The term of the agricultural production drought assistance loan is not longer than 3 years.
234.905(2)(f)
(f) The proceeds of the agricultural production drought assistance loan may not be applied to the outstanding balance of any other loan.
234.905(2)(g)
(g) The proceeds of the agricultural production drought assistance loan may not be used to refinance a loan made under this section.
234.905(3)
(3) Eligible farmers. A farmer is eligible for a guaranteed loan if all of the following apply:
234.905(3)(a)
(a) The farmer does not meet the participating lender's minimum standards of creditworthiness to receive an agricultural production drought assistance loan in the normal course of the participating lender's business.
234.905(3)(b)
(b) The participating lender projects the amount of the farmer's debts to be approximately 40% or more of the amount of the farmer's assets.
234.905(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 the end of the loan term.
234.905(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.
234.905(3)(e)
(e) The participating lender projects that the farmer will lose approximately 40% or more of the farmer's crops because of drought conditions.
234.905(3m)
(3m) Extension. A participating lender may extend the term of a loan until no later than 5 years after the lender granted the loan.
234.905(4)(a)(a) Except as provided in
par. (b), on or before June 30, 1989, the authority shall guarantee collection of 90% of the principal of any agricultural production drought assistance loan eligible for guarantee under
sub. (2) made to a farmer eligible for a guaranteed loan under
sub. (3).
234.905(4)(b)
(b) Except as provided in
s. 234.93 (3), the total principal amounts of all agricultural production drought assistance loans which the authority may guarantee under
par. (a) may not exceed $30,000,000.
234.905(5)
(5) Interest reduction. The authority shall pay, from the moneys in the Wisconsin development reserve fund, to each participating lender an amount equal to 3.5% of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by a farmer, except that the authority shall make interest reduction payments for no more than 3 years of the repayment term of any guaranteed loan.
234.907
234.907
Agricultural development loan guarantee program. 234.907(1)(d)
(d) "Guaranteed loan" means a loan on which the authority guarantees collection under
sub. (3).
234.907(1)(e)
(e) "Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.907(1)(f)
(f) "Percentage of guarantee" means the percentage established by the authority under
sub. (3) (a).
234.907(1)(g)
(g) "Raw agricultural commodity" means any agricultural, aquacultural, horticultural, viticultural, vegetable, poultry, and livestock products produced in this state, including milk and milk products, bees and honey products, timber and wood products, or any class, variety or utilization of the products, in their natural state.
234.907(1)(h)
(h) "Security interest" means an interest in property or other assets which secures payment or other performance of a guaranteed loan.
234.907(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:
234.907(2)(a)
(a) The loan is made for working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, process or market a product from a raw agricultural commodity produced in this state or to commercially harvest whitefish from Lake Superior:
234.907(2)(b)
(b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority.
234.907(2)(c)
(c) Subject to
par. (cm), the total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
234.907(2)(cm)
(cm) The total principal amount extended to the borrower for loans that are guaranteed under this section and that are made for working capital or an item necessary to, or used to, commercially harvest whitefish from Lake Superior will not exceed $100,000.
234.907(2)(d)
(d) The borrower's principal place of operations for processing or marketing a product from a raw agricultural commodity is located in a town, village or city in this state with a population of less than 50,000. This paragraph does not apply to a borrower that harvests whitefish from Lake Superior.
234.907(2)(e)
(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
234.907(2)(f)
(f) The loan term does not extend beyond 15 years after the date that the participating lender disburses the loan unless the loan is extended by the authority.
234.907(2)(g)
(g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
234.907(2)(h)
(h) The loan results in new or more viable methods for the processing or marketing of a product from a raw agricultural commodity or enables the borrower to comply with the rules promulgated by the department of natural resources for the commercial fishing of whitefish in Lake Superior.
234.907(2)(i)
(i) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive a loan for the purposes described in
par. (a) in the normal course of the participating lender's business.
234.907(2)(j)
(j) The participating lender considers the borrower's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.
234.907(2)(k)
(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.907(3)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
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.
