234.625(4)(b)
(b) That the loan shall be due and payable upon the occurrence of any of the following events: transfer of the qualifying dwelling unit by any means except upon transfer to a coowner who resides in the unit and who is permitted to assume the participant's account as provided in
s. 234.624, or the death of the participant if the participant is the sole owner, or the death of the last surviving coowner who owns the qualifying dwelling unit, or upon discovery by the authority that a participant or coowner has made a false statement on the application or otherwise in respect to the program, or upon condemnation or involuntary conversion of the qualifying dwelling unit, or if a participant ceases to meet the eligibility requirements of
s. 234.623 except as provided in
sub. (5) or fails to comply with the provisions of
par. (d) or, at the participant's or coowner's election, at any time before any of the events enumerated in this paragraph occurs.
234.625(4)(c)
(c) To pay, upon repayment of the loan, interest specified in the loan agreement.
234.625(4)(d)
(d) To limit the outstanding liens and judgments on the qualifying dwelling unit to no more than the permitted obligations.
234.625(5)
(5) If a participant in the program ceases to meet the eligibility requirements of this section, the authority, rather than demanding repayment under
sub. (4) (b), may allow the participant to continue in the program, may allow the participant to continue in the program but be ineligible for additional loans, or may require partial settlement. The authority may also allow coowners to be added to the loan agreement if, in the judgment of the executive director, the addition of coowners does not significantly increase the authority's exposure to risk under the loan agreement.
234.625(6)
(6) At any time after an application is filed, the authority may verify the correctness of the application and any other information regarding the eligibility of the participant. If the authority finds that at the time a participant received a loan the participant was not eligible under the program, the authority shall notify the participant and may require repayment of the loan as determined by the authority.
234.625(7)
(7) The authority, its agents or representatives may examine the books and records of an applicant under this subchapter or other sources of information bearing on the application to verify the information provided by an applicant, may require the production of books, records and memoranda and may require testimony and proof relevant to its investigation. If a person fails to furnish information requested by the authority to verify the correctness of the application, the authority may reject the application.
234.625(9)
(9) Upon the making of the initial loan, a nonconsensual statutory lien in favor of the authority to secure payment of the principal, interest, fees and charges due on all loans, including loans made after the lien is filed, to the participant made under
ss. 234.621 to
234.626 shall attach to the qualifying dwelling unit in respect to which the loan is made. The qualifying dwelling unit shall remain subject to the statutory lien until the payment in full of all loans and charges. If the authority funds such loans from the proceeds of notes or bonds under
s. 234.626, its right under the lien shall automatically accrue to the benefit of the holders of those notes or bonds, without any action or assignment by the authority. When a loan becomes due and payable, the statutory lien hereby conferred may be enforced by the authority or the holders of the notes or bonds or their representative, as the case may be, in the same manner as a construction lien under
ss. 779.09 to
779.12, except that neither the participant nor any coowners or their personal representatives, successors or assigns shall be personally liable for any deficiency which may arise from the sale. At the time of disbursing the initial loan to a participant, the authority shall record with the register of deeds of the county in which the qualifying dwelling unit is located, on a form prescribed by the authority which shall contain a legal description of the qualifying dwelling unit, a notice of the loan made under
ss. 234.621 to
234.626 and the existence of the statutory lien arising therefrom. The register of deeds shall record the notice in the land records and index it in the indexes maintained by the register of deeds. The statutory lien created by this section shall have priority over any lien that originates subsequent to the recording of the notice.
234.625(10)
(10) If the property taxes or special assessments are paid, using a loan made under
ss. 234.621 to
234.626, after the taxes or assessments are due, the participant shall be liable for interest and penalty charges for delinquency under
ch. 74. Subject to
sub. (1), the principal amount of loans made under this program may include delinquency charges.
234.625 History
History: 1981 c. 20,
317;
1985 a. 29;
1987 a. 27;
1991 a. 269 s.
510uh; Stats 1991 s. 16.996;
1993 a. 16 ss.
130k to
130y; Stats. 1993 s. 234.625;
1993 a. 301 s.
1;
1993 a. 491 s.
11.
234.626(1)(1) Loans made or authorized to be made under
ss. 234.621 to
234.626 may be funded from the proceeds of notes and bonds issued subject to and in accordance with
ss. 234.08 to
234.14 and from the fund under
s. 234.165.
234.626(2)
(2) The authority may create a system of funds and accounts, separate and distinct from all other funds and accounts of the authority, consisting of moneys received from notes and bonds, all revenues received in the repayment of loans made under
ss. 234.621 to
234.626, except as provided in
sub. (2m), and any other revenues dedicated to it by the authority. The authority may pledge moneys and revenues received or to be received by this system of funds and accounts to secure bonds or notes issued for the program. The authority shall have all other powers necessary and convenient to distribute the proceeds of the bonds, notes and loan repayments in accordance with its powers under this chapter.
234.626(2m)
(2m) Revenues received in the repayment of loans made under
s. 234.165 shall be paid into the fund under
s. 234.165.
234.626(3)
(3) The authority may enter into agreements with the federal government, its agencies, agencies or political subdivisions of this state or private individuals or entities to insure or in other manner provide additional security for the loans or bonds or notes issued under this section.
234.626(4)
(4) The authority may adopt rules that restrict eligibility in addition to the requirements of
s. 234.623 or require the provision of additional security if, in the executive director's judgment, the rules or security are required for the satisfactory issuance of bonds or notes.
234.626(5)
(5) Bonds or notes issued for loans under this section shall not exceed $10,000,000 in principal amount, excluding obligations issued to refund outstanding bonds or notes.
234.626(6)
(6) Unless otherwise expressly provided in resolutions authorizing the issuance of bonds or notes or in other agreements with the holders of bonds or notes, each bond or note issued shall be on a parity with every other bond or note issued for the funding of loans under
ss. 234.621 to
234.626.
234.626(7)
(7) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under
ss. 234.621 to
234.626.
234.626 History
History: 1981 c. 20;
1983 a. 36 s.
96 (3);
1985 a. 29;
1991 a. 269 ss.
510ui to
510up; Stats. 1991 s. 16.997;
1993 a. 16 ss.
130z,
3051p; Stats. 1993 s. 234.626;
1993 a. 490.
234.65
234.65
Economic development. 234.65(1)(a)(a) With the consent of the department of commerce and subject to
par. (f), the authority may issue its negotiable bonds and notes to finance its economic development activities authorized or required under this chapter, including financing economic development loans.
234.65(1)(c)
(c) The authority may not issue more than $200,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds or notes secured by a capital reserve fund pursuant to
sub. (6) (am) and excluding bonds and notes issued to refund outstanding bonds or notes issued under this section.
234.65(1)(d)
(d) Except as provided in
sub. (6),
s. 234.15 does not apply to bonds or notes issued under this section.
234.65(1)(dm)
(dm) The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract.
234.65(1)(e)
(e) The authority shall employ the building commission as its financial consultant to assist and coordinate the issuance of bonds and notes under this section.
234.65(1)(f)
(f) The authority may not issue bonds or notes under
par. (a) unless it has contracted to reimburse the department of commerce a sum certain for the department's operating costs in carrying out its responsibilities to effectuate and promote the economic development programs created with the bonding authority in this chapter and its responsibilities under
s. 560.03 (17).
234.65(1)(g)
(g) In granting loans under this section the authority shall give preference to businesses which are more than 50% owned or controlled by women or minorities, to businesses that, together with all of their affiliates, subsidiaries and parent companies, have current gross annual sales of $5,000,000 or less or that employ 25 or fewer persons and to new businesses that have less than 50% of their ownership held or controlled by another business and have their principal business operations in this state.
234.65(1)(gm)
(gm) The authority may not grant a loan in an amount greater than 4% of the amount of bonds and notes authorized under
par. (c) for the benefit of a business that, together with all of its affiliates and subsidiaries and its parent company, has current gross annual sales in excess of $5,000,000. This paragraph does not apply to an economic development loan to finance a project described in
s. 234.01 (4n) (d).
234.65(1)(gp)
(gp) The authority may not refinance a loan to a business which has been a participant in a tax incremental financing district. This paragraph does not apply to an economic development loan to finance a project described in
s. 234.01 (4n) (d).
234.65(1)(h)
(h) Bonds and notes issued by the authority to finance an economic development loan for a project described under
s. 234.01 (4n) (d) are not general obligations of the authority.
234.65(1)(hm)
(hm) The authority may not make a loan under this section for an economic development project described under
s. 234.01 (4n) (d) to any professional baseball team unless the authority determines that collateral adequate to cover the amount of the loan has been pledged as security for the loan, exclusive of any ownership interest of the team in a stadium.
234.65(1m)
(1m) The department of commerce shall, in consultation with the authority, promulgate rules and adopt procedures, in accordance with the procedures under
ch. 227, to implement
sub. (3).
234.65(2)(a)(a) The authority may finance an economic development loan only after considering all of the following:
234.65(2)(a)1.
1. The extent to which an economic development project will maintain or increase employment in this state.
234.65(2)(a)2.
2. The extent to which an economic development project will make a significant contribution to this state's economic growth and the well-being of its residents.
234.65(2)(a)3.
3. Whether an economic development project will be located in an area of high unemployment or low average income.
234.65(2)(a)4.
4. The number of financial institutions participating in the economic development loan program.
234.65(2)(a)5.
5. The extent to which the activities constituting the economic development project otherwise would not occur.
234.65(2)(b)
(b) Paragraph (a) does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(2)(c)
(c) The authority shall give priority to an application for an economic development loan if the business applying for the loan certifies that it will use techniques or processes that reduce or eliminate the use of ozone-depleting substances that are listed as class I substances under
42 USC 7671a.
234.65(3)
(3) The authority may finance an economic development loan only if all of the following conditions are met:
234.65(3)(a)1.1. The business which will receive the loan, at least 30 days prior to signing of the loan contract, has given notice of intent to sign the contract, on a form prescribed under
s. 560.034 (1), to the department of commerce and to any collective bargaining agent in this state with whom the person has a collective bargaining agreement; and
234.65(3)(a)2.
2. The authority has received an estimate issued under
s. 560.034 (5) (b), and the department of commerce has estimated whether the project which the authority would finance under the loan is expected to eliminate, create or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created or maintained as a result of the project.
234.65(3)(a)3.
3. Nothing in this paragraph may be deemed to require a business signing a loan contract to satisfy an estimate under
subd. 2.
234.65(3)(a)4.
4. Subdivisions 1. to
3. do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(3)(b)
(b) Conventional financing is unavailable for the economic development project on reasonably equivalent terms and conditions.
234.65(3)(c)
(c) The economic development project is or will be located in this state.
234.65(3)(d)
(d) The business receiving the benefits of the loan proceeds, together with all of its affiliates and subsidiaries and its parent company, has current gross annual sales of $35,000,000 or less. This paragraph does not apply to an economic development loan to finance a project described in
s. 234.01 (4n) (d).
234.65(3)(dg)
(dg) The authority shall not assume primary risk for any economic development loan.
234.65(3)(e)
(e) The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c) or
(d).
234.65(3)(f)
(f) The authority has not received a certification under
s. 49.855 (7) that the person receiving the loan is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.
234.65(3)(g)
(g) The business that will receive the loan certifies that it will not begin or expand operations that will increase emissions of any ozone-depleting substance that is listed as a class I substance under
42 USC 7671a.
234.65(3m)
(3m) An economic development loan may not be made unless the department of commerce complies with
sub. (1m) and certifies that each loan complies with
sub. (3).
234.65(3r)
(3r) Any economic development loan which a business receives from the authority under this section to finance a project shall require the business to submit to the department of commerce within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner, on a form prescribed under
s. 560.034 (1), the net number of jobs eliminated, created or maintained on the project site and elsewhere in this state as a result of the project. This subsection does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(4)
(4) In respect to the loans issued under this section, the authority shall submit to the governor, the joint committee on finance and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), within 6 months after the close of its fiscal year an annual report including all of the following for the fiscal year:
234.65(4)(a)
(a) A statement of the authority's operations, accomplishments, goals and objectives.
234.65(4)(b)
(b) A financial statement showing income and expenses, assets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued.
234.65(5)
(5) On or before July 1, 1985, and every July 1 thereafter, the department of commerce shall submit to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), a report which shall address the effects of lending under this section in the following areas:
234.65(5)(a)
(a) Maintaining or increasing employment in this state.
234.65(5)(b)
(b) Contributing to this state's economic growth and the well-being of its residents.
234.65(5)(c)
(c) Locating economic development projects in areas of high unemployment or low average income.
234.65(5)(d)
(d) Obtaining the participation of a large number of financial institutions in the lending.
234.65(5)(e)
(e) The geographical distribution of lending in this state.
234.65(6)(a)3.
3. "Small business" means an independently owned and operated business which is not dominant in its field and has had less than $2,500,000 in gross annual sales for each of the 2 previous calendar years or has 25 or fewer employes.
234.65(6)(a)4.
4. "Women's business" means a sole proprietorship, partnership, limited liability company, joint venture or corporation that is at least 51% owned and controlled by women.
234.65(6)(am)
(am) The authority may elect to secure a particular issue of bonds or notes issued to fund economic development loans to finance or refinance projects described in
s. 234.01 (4n) (d) with a capital reserve fund under
s. 234.15. The election, if made, shall be made in the resolution authorizing the issue.
234.65(6)(b)
(b) Except as provided in
sub. (8), the authority may issue bonds and notes secured by a capital reserve fund pursuant to
par. (am) in an aggregate principal amount not exceeding $50,000,000 plus such additional amount as the authority considers necessary or desirable to fund a deposit into the capital reserve fund to pay costs of issuing the bonds and notes or to pay capitalized interest on the bonds and notes.
234.65(6)(c)
(c) The borrower of an economic development loan that is made by the authority to finance or refinance a project described in
s. 234.01 (4n) (d) shall agree as a condition to receiving the economic development loan that the borrower and the borrower's successors in interest shall not transfer its operations from this state, or voluntarily cease its operations in this state, as a professional athletic team during the duration that the economic development loan is outstanding.
234.65(6)(d)
(d) The borrower of an economic development loan that is made by the authority to finance or refinance a project described in
s. 234.01 (4n) (d) shall agree as a condition to receiving the economic development loan to work toward a goal that at least 20% of the employes hired to construct and operate the facilities described under
s. 234.01 (4n) (d) be minority group members, and that at least 20% of the contracts awarded to construct and operate the facilities described under
s. 234.01 (4n) (d) be awarded to minority businesses that are certified under
s. 560.036 (2). The borrower shall also make good faith efforts to award contracts to construct and operate the facilities described under
s. 234.01 (4n) (d) to small businesses and women's businesses.
234.65(7)
(7) The authority shall not grant an economic development loan for a project described in
s. 234.01 (4n) (d) unless the borrower's agreement under
sub. (6) (d) relating to achieving minority hiring and contracting goals is first approved by the authority.
234.65(8)
(8) The authority shall not issue bonds or notes under this section to finance the construction of baseball park facilities, as defined in
s. 229.65 (1), in relation to any single professional baseball park in an aggregate principal amount exceeding $50,000,000, excluding bonds and notes issued to fund a deposit into the capital reserve fund, to pay costs of issuing the bonds and notes or to pay capitalized interest on the bonds and notes.
234.65(10)
(10) The authority shall provide to the cochairpersons of the joint committee on finance information concerning the authority's projected cashflows and security features underlying each issuance of bonds to a business for the purpose of financing baseball park facilities, as defined in
s. 229.65 (1).
234.65 Note
NOTE:
This section was created by
1983 Wisconsin Act 83. Section 1 of that act is entitled "Legislative Declaration."
234.66
234.66
Beginning farmer program. 234.66(1)
(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).
234.66(2)
(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).
234.66(3)(a)(a) The authority may issue its bonds and notes to finance the beginning farmer program, including funding loans to beginning farmers.
234.66(3)(c)
(c) The authority may not issue more than $10,000,000 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.
