AB556: Bill Text

AB556,5,3 (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.

AB556,5,6 (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.

AB556,5,16 (4) Service fees and payment proration. (a) The authority shall charge an annual service fee on every loan guarantee under this section. The fee shall be 1% of a loan's outstanding guaranteed principal not exceeding $50,000 plus 1.5% of a loan's outstanding guaranteed principal exceeding $50,000. The fee shall be calculated and charged when the loan is made and on each anniversary date of the loan's inception during the term of the guarantee. The participating lender shall collect the fee as part of the interest charged on the loan and transmit the proceeds to the authority. The authority shall deposit all fees received under this paragraph in the Wisconsin development reserve fund to be used to guarantee loans under this section.

AB556,5,21 (b) In applying principal payments to the outstanding loan balance, the participating lender shall prorate the payments between that portion of the outstanding loan principal that is guaranteed under this section and the remainder of the outstanding principal balance to reduce the liability of the authority over the term of the guarantee.

AB556,6,2 (5) Guarantee of collection. (a) Subject to par. (c), the authority shall guarantee collection of a portion 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.

AB556,6,6 (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.

AB556,6,9 (c) Except as provided in s. 234.93 (3) and (3g), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $10,000,000.

AB556, s. 7 Section 7. 234.93 (1) (d) of the statutes is created to read:

AB556,6,12 234.93 (1) (d) To be used for guaranteeing loans under s. 234.91, fees collected under s. 234.91 (4) (a).

AB556, s. 8 Section 8. 234.93 (3g) of the statutes is created to read:

AB556,6,19 234.93 (3g) Increases and decreases in certain loan guarantees. (a) Notwithstanding sub. (3), if the authority receives applications for guarantees under s. 234.91 that would, if approved, result in guarantees under that section of outstanding guaranteed principal in excess of $10,000,000, the authority may guarantee a total outstanding guaranteed principal amount under s. 234.91 that exceeds $10,000,000 if any of the following applies:

AB556,6,21 1. The total outstanding principal amount of all loans guaranteed under s. 234.68 is less than $500,000.

AB556,6,23 2. The total outstanding principal amount of all loans guaranteed under s. 234.69 is less than $1,000,000.

AB556,6,25 3. The total guaranteed principal amount of all loans for the installation of best management practices guaranteed under s. 234.87 is less than $850,000.

AB556,7,3 4. The total guaranteed principal amount of all loans for the taking of corrective action in response to the discharge of an agricultural chemical guaranteed under s. 234.87 is less than $650,000.

AB556,7,6 (b) If par. (a) applies, the total outstanding guaranteed principal amount that the authority may guarantee under s. 234.91 may exceed $10,000,000 by any of the following:

AB556,7,8 1. The difference between the total outstanding principal amount of all loans guaranteed under s. 234.68 and $500,000.

AB556,7,10 2. The difference between the total outstanding principal amount of all loans guaranteed under s. 234.69 and $1,000,000.

AB556,7,13 3. The difference between the total guaranteed principal amount of all loans for the installation of best management practices guaranteed under s. 234.87 and $850,000.

AB556,7,16 4. The difference between the total guaranteed principal amount of all loans for the taking of corrective action in response to the discharge of an agricultural chemical guaranteed under s. 234.87 and $650,000.

AB556,7,19 (c) If par. (a) applies and the authority guarantees a total outstanding guaranteed principal amount under s. 234.91 that exceeds $10,000,000, all of the following apply:

AB556,7,23 1. The total outstanding principal amount of all loans that the authority may guarantee under s. 234.68 may not exceed $500,000 minus the amount by which the total outstanding guaranteed principal amount that is guaranteed under s. 234.91 exceeds $10,000,000 as a result of the application of par. (b) 1.

AB556,8,2 2. The total outstanding principal amount of all loans that the authority may guarantee under s. 234.69 may not exceed $1,000,000 minus the amount by which the total outstanding guaranteed principal amount that is guaranteed under s. 234.91 exceeds $10,000,000 as a result of the application of par. (b) 2.

AB556,8,7 3. The total guaranteed principal amount of all loans for the installation of best management practices that the authority may guarantee under s. 234.87 may not exceed $850,000 minus the amount by which the total outstanding guaranteed principal amount that is guaranteed under s. 234.91 exceeds $10,000,000 as a result of the application of par. (b) 3.

AB556,8,12 4. 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 s. 234.87 may not exceed $650,000 minus the amount by which the total outstanding guaranteed principal amount that is guaranteed under s. 234.91 exceeds $10,000,000 as a result of the application of par. (b) 4.

AB556, s. 9 Section 9. 600.01 (1) (b) 8. of the statutes is amended to read:

AB556,8,16 600.01 (1) (b) 8. Guarantees of the Wisconsin housing and economic development authority under ss. 234.67, 234.68, 234.69, 234.765, 234.82, 234.83, 234.87, 234.90, 234.905 and, 234.907 and 234.91.

AB556, s. 10 Section 10. Initial applicability.

AB556,8,19 (1) This act first applies to loans for which application for guarantee is made on the effective date of this subsection.

AB556,8,20 (End)