AB684: Bill Text

AB684,20,9 (e) Funding, refunding, advance refunding, or purchasing outstanding bonds.

AB684,20,12 (f) Procedures by which the terms of any contract with bondholders may be amended, the amount of bonds the holders of which must consent to the amendment, and the manner in which this consent may be given.

AB684,20,15 (g) Defining the acts or omissions to act that constitute a default in the duties of the authority to the bondholders, and providing the rights and remedies of the bondholders in the event of a default.

AB684,20,16 (h) Other matters relating to the bonds that the board considers desirable.

AB684,20,20 (5) Neither the members of the board nor any person executing the bonds is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds, unless the personal liability or accountability is the result of willful misconduct.

AB684,21,4 238.09 Bond security. The authority may secure any bonds issued under this chapter by a trust agreement, trust indenture, indenture of mortgage, or deed of trust by and between the authority and one or more corporate trustees. The bond resolution providing for the issuance of bonds so secured shall pledge some or all of the revenues to be received by the authority, and may contain provisions for protecting and enforcing the rights and remedies of the bondholders that are reasonable and proper and not in violation of law. A bond resolution may contain any other provisions that are determined by the board to be reasonable and proper for the security of the bondholders.

AB684,21,11 238.10 Bonds not public debt. (1) The state is not liable on bonds of the authority and the bonds are not a debt of the state. Each bond of the authority shall contain a statement to this effect on the face of the bond. The issuance of bonds under this chapter does not, directly, indirectly, or contingently, obligate the state or any political subdivision of the state to levy any tax or to make any appropriation for payment of the bonds. Nothing in this section prevents the authority from pledging its full faith and credit to the payment of bonds issued under this chapter.

AB684,21,21 (2) Nothing in this chapter authorizes the authority to create a debt of the state, and all bonds issued by the authority under this chapter are payable, and shall state that they are payable, solely from the funds pledged for their payment in accordance with the bond resolution authorizing their issuance or in any trust indenture or deed of trust executed as security for the bonds. The state is not liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement which may be undertaken by the authority. The breach of any pledge, mortgage, obligation, or agreement undertaken by the authority does not impose any pecuniary liability upon the state or any charge upon its general credit or against its taxing power.

AB684,22,3 238.11 State pledge. The state pledges to and agrees with the holders of bonds, 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 the authority has fully met and discharged the bonds, and any interest due on the bonds, and has fully performed its contracts, unless adequate provision is made by law for the protection of the bondholders or those entering into contracts with the authority.

AB684,22,7 238.16 Refunding bonds. (1) The authority may issue bonds to fund or refund any outstanding bond, including the payment of any redemption premium on the outstanding bond and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity.

AB684,22,12 (2) The authority may apply the proceeds of any bond issued to fund or refund any outstanding bond to purchase, retire at maturity, or redeem any outstanding bond. The authority may, pending application, place the proceeds in escrow to be applied to the purchase, retirement at maturity, or redemption of any outstanding bond at any time.

AB684,22,15 238.18 Limit on amount of outstanding bonds. The authority may not have outstanding at any one time bonds in an aggregate principal amount exceeding $26,000,000, excluding bonds issued to refund outstanding bonds.

AB684,22,24 238.19 Annual reports. (1) The authority shall keep an accurate account of all of its activities and of all of its receipts and expenditures, and shall annually in January make a report of its activities, receipts, and expenditures 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 activities undertaken by the authority.

AB684,23,6 (2) The authority, annually on July 1, 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.

AB684,23,10 238.21 Confidentiality of certain records. The authority shall maintain the confidentiality of records or portions of records consisting of personal or financial information provided by a person seeking a loan, loan guarantee, or other financial assistance from the authority.

AB684,23,12 238.30 Agricultural loan programs; general provisions. (1) Definitions. In this section and ss. 238.32 to 238.38:

AB684,23,13 (a) "Agricultural commodity" has the meaning given in s. 94.67 (2).

AB684,23,23 (b) "Agricultural improvements" means improvements to a farm that are useful for and intended to be used for farming purposes, including the purchase and construction or installation of improvements to land or buildings or other permanent structures, including equipment incorporated into or permanently affixed to the land or buildings or other structures. "Agricultural improvements" includes wind energy conversion facilities that have an output capacity of 2 megawatts or less each, as shown by the nameplate capacity, and facilities for deriving energy from animal waste. "Agricultural improvements" does not include equipment that is not affixed to land or improvements, or additions to equipment that is not affixed to land or improvements.

AB684,23,25 (c) "Agricultural loan programs" means the programs under ss. 238.32 to 238.38.

AB684,24,1 (d) "Eligible borrower" means a person to which all of the following apply:

AB684,24,3 1. The person is a natural person who resides in this state or a partnership or family farm corporation that operates in this state.

AB684,24,6 2. The person's net worth, including the assets and liabilities of the person's spouse and dependents if the person is a natural person, does not exceed $275,000, or $450,000 for the program under s. 238.38, subject to adjustment under sub. (5) (b).

AB684,24,7 3. The person demonstrates a need for the loan.

AB684,24,8 4. The person demonstrates an ability to repay the loan.

AB684,24,16 5. If the person is a natural person, the natural person's name does not appear, and if the person is a corporation, no shareholder's name appears, and, if the person is a partnership, no partner's name appears on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the natural person, a shareholder, or partner appears on that docket, the natural person, shareholder, or partner provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

AB684,24,17 6. The person satisfies any other requirements prescribed by the authority.

AB684,24,19 (e) "Farm credit service" includes a production credit association, federal land credit association, and agricultural credit association.

AB684,24,21 (f) "Farm purchase assistance loan" means a loan made by a participating lender to an eligible borrower under s. 238.32.

AB684,24,24 (fm) "Livestock" means cattle, horses, swine, sheep, goats, farm-raised deer, as defined in s. 95.001 (1) (ag), poultry, and other animals used or to be used in the production of food, fiber, or other commercial products.

AB684,25,2 (g) "Nameplate capacity" means the designation by a unit's manufacturer of the approximate generating capability of the unit.

AB684,25,7 (h) "Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association, or other person, other than a seller under a land contract, that has been approved by the authority to make loans to eligible borrowers under one or more agricultural loan programs and that has entered into a participation agreement with the authority under sub. (2).

AB684,25,9 (i) "Wind energy conversion facility" means any device, such as a windcharger, windmill, or wind turbine, that converts wind energy to a form of usable energy.

AB684,25,18 (2) Participation agreement with lender. A lender seeking to make a loan in which the authority may participate under an agricultural loan program shall apply to the authority for approval. If the lender is approved for making loans under one or more of the agricultural loan programs, the lender and the authority shall enter into a participation agreement that shall provide for the contractual obligations of the lender and the authority with respect to any loan transaction in which the authority participates, the terms and conditions of loans in which the authority participates, and other matters related to the lender's involvement in the agricultural loan programs.

AB684,26,4 (3) Participation in loans. The authority may participate, to the extent provided in ss. 238.32 (2) (a), 238.34 (2), 238.36 (2) (a), and 238.38 (2), in a loan made by a participating lender under an agricultural loan program. Subject to s. 238.36 (2) (b), the interest rate that the authority charges for its portion of a loan shall be less than the interest rate charged by the participating lender. Subject to any requirements under ss. 238.32 to 238.38, the authority may impose repayment or other terms for its portion of a loan that are different from the participating lender's loan terms. The authority shall ensure that it obtains an interest in the participating lender's security for the loan in the same proportion as its participation in the loan. The authority shall ensure that its interest in the security has a higher priority than the participating lender's interest in the security.

AB684,26,7 (4) Fees. The authority shall charge a fee for assistance provided under the agricultural loan programs to cover the costs of administrating the agricultural loan programs, including legal fees.

AB684,26,10 (5) Rules and procedures. The authority shall adopt rules and establish procedures for administering the agricultural loan programs, including rules or procedures related to all of the following:

AB684,26,12 (a) Application procedures for eligible borrowers and for lenders seeking to make loans under the agricultural loan programs.

AB684,26,18 (b) Approval requirements for lenders and additional eligibility requirements for eligible borrowers, including any adjustments in net worth requirements. Any adjustment in net worth requirements shall include, at a minimum, an adjustment based on changes in the index of prices paid by farmers published by the federal department of agriculture. The authority may only adjust net worth requirements if the adjustment is approved by a two-thirds vote of the board.

AB684,26,24 (c) Adjustments in the maximum amount of an agricultural loan that the authority may finance. Any adjustment under this paragraph shall include, at a minimum, an adjustment based on changes in the index of prices paid by farmers published by the federal department of agriculture. The authority may only make an adjustment under this paragraph if the adjustment is approved by a two-thirds vote of the board.

AB684,26,25 (d) The terms of participation agreements under sub. (2).

AB684,27,1 (e) Repayment and security interest requirements.

AB684,27,2 (f) Procedural requirements for the authority's participation in loans.

AB684,27,3 (g) Auditing, inspection, and reporting requirements.

AB684,27,4 (h) Any other relevant matters.

AB684,27,7 238.32 Farm purchase assistance loans. (1) Subject to sub. (2) (a), the authority may participate as provided in s. 238.30 (3) in a farm purchase assistance loan for the purchase of farm property in this state if all of the following apply:

AB684,27,8 (a) The eligible borrower:

AB684,27,11 1. Will be the principal operator of the farm being purchased and certifies that he or she intends to use the farm only for agricultural purposes and to make farming his or her principal future occupation.

AB684,27,13 2. Has sufficient education, training, or experience to succeed in the type of farming that he or she intends to undertake.

AB684,27,16 3. Agrees to enroll and continue, for the first 5 years of the loan, in a farm business management program that is approved by the authority, if such a program is available within 45 miles of the eligible borrower's residence.

AB684,27,18 4. Agrees to consult with a land conservation committee under s. 92.06 or a local office of the federal natural resources conservation service.

AB684,27,20 5. Agrees to obtain credit life insurance in the amount of the total debt incurred to purchase the property.

AB684,27,21 (b) The seller of the property:

AB684,27,22 1. Is a natural person, a partnership, or a family farm corporation.

AB684,28,2 2. Partially finances the purchase of the property by loaning to the eligible borrower the amount by which the purchase price exceeds the sum of the principal of the farm purchase assistance loan and any downpayment made by the eligible borrower.

AB684,28,4 3. Subordinates his or her security interest in the property to the security interests of the participating lender and the authority.

AB684,28,7 (2) (a) The authority may not finance more than 45% or $125,000, subject to adjustment under s. 238.30 (5) (c), whichever is less, of the principal of a farm purchase assistance loan.

AB684,28,10 (b) A farm purchase assistance loan must be paid in full at the end of 10 years, but may be amortized over a longer period, as negotiated among the participating lender, authority, and eligible borrower.

AB684,28,12 (c) The terms of the loan made by the seller to the eligible borrower shall be negotiated and determined by the seller and eligible borrower.

AB684,28,18 238.34 Agricultural improvement loans. (1) Subject to sub. (2), the authority may participate as provided in s. 238.30 (3) in a loan made by a participating lender to an eligible borrower for agricultural improvements or to finance an existing debt to repair or replace farm driveways, drainage ditches or tile lines, grassed waterways, or agricultural buildings damaged by snow, flooding, or other weather-related causes, if all of the following apply:

AB684,28,19 (a) The eligible borrower is actively engaged in farming.

AB684,28,20 (b) The collateral for the loan includes a first mortgage on farm real estate.

AB684,28,22 (c) The loan does not exceed 80% of the appraised value of the collateral for the loan.

AB684,28,23 (d) The term of the loan does not exceed 10 years.

AB684,29,3 (2) The authority may not finance more than 45% or $125,000, subject to adjustment under s. 238.30 (5) (c), whichever is less, of the principal of a loan under this section.

AB684,29,7 238.36 Agricultural cooperative stock loans. (1) Subject to sub. (2) (a), the authority may participate as provided in s. 238.30 (3) in a loan made by a participating lender to an eligible borrower for the purchase of capital stock or other equity interest in a cooperative organized under ch. 185, if all of the following apply:

AB684,29,10 (a) The cooperative owns and operates, or proposes to build or purchase and operate, a facility in this state for processing an agricultural commodity or a byproduct of an agricultural commodity.

AB684,29,13 (b) The eligible borrower produces the agricultural commodity that will be processed at the facility or produces the agricultural commodity the byproduct of which will be processed at the facility.

AB684,29,15 (c) The loan finances no more than 95% of the purchase price of the stock or equity interest to be acquired by the eligible borrower.

AB684,29,18 (2) (a) The authority may not finance more than 45% or $24,000, subject to adjustment under s. 238.30 (5) (c), whichever is less, of the principal of a loan under this section.

AB684,29,21 (b) The interest rate charged by the authority on its portion of a loan under this section may not be more than 50% of the interest rate charged by the participating lender.

AB684,29,24 (c) A loan under this section must be secured by the stock or equity interest acquired with the loan, a personal note executed by the eligible borrower, and any other security required by the authority or participating lender.

AB684,30,6 238.38 Livestock operation modernization loans. (1) Subject to sub. (2), the authority may participate as provided in s. 238.30 (3) in a loan made by a participating lender to an eligible borrower for the purchase and construction or installation of improvements to land or buildings or other permanent structures that are useful for, and intended to be used for, the purpose of raising livestock if all of the following apply:

AB684,30,7 (a) The eligible borrower is engaged in the raising of livestock.

AB684,30,8 (b) The collateral for the loan includes a first mortgage on farm real estate.

AB684,30,10 (c) The loan does not exceed 80% of the appraised value of the collateral for the loan.

AB684,30,11 (d) The term of the loan does not exceed 10 years.

AB684,30,14 (2) The authority may not finance more than 45% or $250,000, subject to adjustment under s. 238.30 (5) (c), whichever is less, of the principal of a loan under this section.

AB684,30,17 238.40 Beginning Farmer Program. (1) In this section, "beginning farmer" means a person who engages in farming or wishes to engage in farming and who qualifies as a first-time farmer under 26 USC 147 (c) (2).

AB684,30,21 (2) The authority may establish and administer a Beginning Farmer Program to assist beginning farmers to purchase agricultural land, agricultural improvements, and depreciable agricultural property, as defined in 26 USC 144 (a) (11) (B).

AB684,30,23 (3) (a) The authority may issue its bonds to finance the Beginning Farmer Program, including funding loans to beginning farmers.

AB684,30,24 (b) The limit in s. 238.18 does not apply to bonds issued under this section.

AB684,31,3 (c) The authority may not issue more than $17,500,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds and notes issued under this section.

AB684,31,12 (4) Bonds issued under this section are special, limited obligations of the authority payable solely out of the revenue derived from the loan agreement, debt obligation, or sales contract, collateral, or other property received in connection with the Beginning Farmer Program. All assets and liabilities created through the issuance of bonds under this section shall be separate from all other assets and liabilities of the authority. The authority has no moral or legal obligation or liability to any person under this section, except as expressly provided by written contract. The authority may not comingle funds of the Beginning Farmer Program with any other funds of the authority.

AB684,31,15 (5) The authority may charge fees for assistance provided under this section to cover the administrative costs of the Beginning Farmer Program, including legal fees.

AB684,31,17 238.50 Agricultural production loan guarantees. (1) Definitions. In this section:

AB684,31,18 (a) "Agricultural commodity" has the meaning given in s. 94.67 (2).

AB684,31,22 (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.

AB684,31,23 (ag) "Dairy plant" has the meaning given in s. 97.20 (1) (a).

AB684,31,24 (b) "Farmer" has the meaning given in s. 102.04 (3).