16239.04 Duties of board.
The board shall develop and implement a program 17
under which state residents may refinance qualified education loans. The board 18
shall develop the program to include all of the following:
The authority shall provide a loan to an eligible individual to pay all or part 20
of the individual's qualified education loans.
The authority may only issue loans under the program that satisfy the 22
exception to discharge under 11 USC 523
The authority shall establish eligibility criteria to participate in the 24
program that is substantially similar to the criteria used by private lenders in the
state to evaluate whether an individual qualifies for an unsecured personal loan at 2
The board shall set the interest rate on loans made under the program to 4
be as low as possible but still sufficient to fully pay all expenses of the program and 5
to provide necessary reserves, as determined by the board.
6239.05 Issuance of bonds. (1)
The authority may issue bonds for any 7
corporate purpose. All bonds are negotiable for all purposes, notwithstanding their 8
payment from a limited source.
Except as otherwise expressly provided by the authority, every issue of its 10
notes or bonds shall be general obligations of the authority payable out of any 11
revenues or moneys of the authority, subject only to any agreements with the holders 12
of particular notes or bonds pledging any particular receipts or revenues.
All bonds issued by the authority are negotiable investment securities 14
under ch. 408.
The authority may not issue bonds unless the issuance is first authorized 16
by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding 17
50 years from their dates of issue, bear interest at the rates, be payable at the times, 18
be in the denominations, be in the form, carry the registration and conversion 19
privileges, be executed in the manner, be payable in lawful money of the United 20
States at the places, and be subject to the terms of redemption, that the bond 21
resolution provides. The bonds shall be executed by the manual or facsimile 22
signatures of the officers of the authority designated by the board. The bonds may 23
be sold at public or private sale at the price, in the manner, and at the time 24
determined by the board. Pending preparation of definitive bonds, the authority may 25
issue interim receipts or certificates that shall be exchanged for the definitive bonds.
The board may include in bond resolution provisions, which shall be a part 2
of the contract with the holders of the bonds that are authorized by the bond 3
resolution, regarding any of the following:
(a) Pledging or assigning specified assets or revenues of the authority.
(b) Setting aside reserves or sinking funds, and the regulation, investment, and 6
disposition of these funds.
(c) Limitations on the purpose to which or the investments in which the 8
proceeds of the sale of any issue of bonds may be applied.
(d) Limitations on the issuance of additional bonds, the terms upon which 10
additional bonds may be issued and secured, and the terms upon which additional 11
bonds may rank on a parity with, or be subordinate or superior to, other bonds.
(e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
(f) Procedures, if any, by which the terms of any contract with bondholders may 14
be amended, the amount of bonds the holders of which must consent to the 15
amendment, and the manner in which this consent may be given.
(g) Defining the acts or omissions to act that constitute a default in the duties 17
of the authority to the bondholders, and providing the rights and remedies of the 18
bondholders in the event of a default.
(h) Other matters relating to the bonds that the board considers desirable.
Neither the members of the board nor any person executing the bonds is 21
liable personally on the bonds or subject to any personal liability or accountability 22
by reason of the issuance of the bonds, unless the personal liability or accountability 23
is the result of willful misconduct.
24239.06 Bond security.
The authority may secure bonds by a trust agreement, 25
trust indenture, indenture of mortgage, or deed of trust by and between the authority
and one or more corporate trustees. A bond resolution providing for the issuance of 2
bonds so secured shall mortgage, pledge, assign, or grant security interests in some 3
or all of the revenues to be received by, and property of, the authority and may contain 4
those provisions for protecting and enforcing the rights and remedies of the 5
bondholders that are reasonable and proper and not in violation of law. A bond 6
resolution may contain other provisions determined by the board to be reasonable 7
and proper for the security of the bondholders.
8239.07 Bonds not public debt. (1)
The state is not liable on bonds, and the 9
bonds are not a debt of the state. All bonds shall contain a statement to this effect 10
on the face of the bond. A bond issue does not, directly, indirectly, or contingently, 11
obligate the state or a political subdivision of the state to levy any tax or make any 12
appropriation for payment of the bonds. Nothing in this section prevents the 13
authority from pledging its full faith and credit to the payment of bonds.
Nothing in this chapter authorizes the authority to create a debt of the state, 15
and all bonds issued by the authority are payable, and shall state that they are 16
payable, solely from the funds pledged for their payment in accordance with the bond 17
resolution authorizing their issuance or in any trust indenture or mortgage or deed 18
of trust executed as security for the bonds. The state is not liable for the payment 19
of the principal of or interest on a bond or for the performance of any pledge, 20
mortgage, obligation, or agreement that may be undertaken by the authority. The 21
breach of any pledge, mortgage, obligation, or agreement undertaken by the 22
authority does not impose pecuniary liability upon the state or a charge upon its 23
general credit or against its taxing power.
24239.08 State pledge.
The state pledges to and agrees with the bondholders, 25
and persons that enter into contracts with the authority under this chapter, that the
state will not limit or alter the rights vested in the authority by this chapter before 2
the authority has fully met and discharged the bonds, and any interest due on the 3
bonds, and has fully performed its contracts, unless adequate provision is made by 4
law for the protection of the bondholders or those entering into contracts with the 5
6239.09 Liability limited.
Neither the state nor any political subdivision of 7
the state, nor any officer, employee, or agent of the state or a political subdivision of 8
the state who is acting within the scope of employment or agency, is liable for any 9
debt, obligation, act, or omission of the authority.
10239.10 Annual report. (1)
Annually, the board shall submit to the chief clerk 11
of each house of the legislature, for distribution to the legislature under s. 13.172 (2), 12
a report on the activities of the authority, including all of the following:
(a) Its operations, accomplishments, goals, and objectives.
(b) A statement of income and expenses for the fiscal year.
(c) Its assets and liabilities at the end of its fiscal year.
(d) A schedule of its bonds and notes outstanding at the end of its fiscal year, 17
together with a statement of the amounts redeemed and incurred during such fiscal 18
The authority, annually on January 15, shall file with the department of 20
administration and the joint legislative council a complete and current listing of all 21
forms, reports, and papers required by the authority to be completed by any person, 22
other than a governmental body, as a condition of obtaining the approval of the 23
authority or for any other reason. The authority shall attach a blank copy of each 24
such form, report, or paper to the listing.
(1) Staggered terms.
Notwithstanding the length of terms specified for the 2
members of the board of the Wisconsin Student Loan Refinancing Authority under 3
section 239.02 of the statutes, as created by this act, of the 5 members appointed 4
under section 239.02 (1) (a) 3. to 6. of the statutes, as created by this act, one of the 5
initial members shall be appointed for a term expiring on July 1, 2017, 2 of the initial 6
members shall be appointed for terms expiring on July 1, 2018, and the remaining 7
2 initial members shall be appointed for terms expiring on July 1, 2019.
(1) Tuition expenses deduction.
The treatment of section 71.05 (6) (b) 28. 10
(intro.) and j. of the statutes first applies to taxable years beginning on January 1 of 11
the year in which this subsection takes effect, except that if this subsection takes 12
effect after July 31 the treatment of section 71.05 (6) (b) 28. (intro.), am., h., and j. 13
of the statutes first applies to taxable years beginning on January 1 of the year 14
following the year in which this subsection takes effect.
This act takes effect on the day after publication, 16
or on the 2nd day after publication of the 2015-17 biennial budget act, whichever is 17
later, except as follows:
(1) Financial aid information.
The treatment of sections 39.28 (7), 39.54, and 19
224.30 (5) of the statutes takes effect on the first day of the 7th month beginning after 20
publication, or on the 2nd day after publication of the 2015-17 biennial budget act, 21
whichever is later.
(2) Technical item; statute affected by prior action.
The repeal and 23
recreation of section 230.03 (3) of the statutes takes effect on July 1, 2015, or on the
day after publication, or on the 2nd day after publication of the 2015-17 biennial 2
budget act, whichever is latest.