234.88(1)(a)
(a) "Brownfields" means abandoned, idle or underused industrial or commercial facilities or sites, the expansion or redevelopment of which is adversely affected by actual or perceived environmental contamination.
234.88(1)(b)
(b) "Guaranteed loan" means a loan for which the authority guarantees repayment under
sub. (3).
234.88(1)(c)
(c) "Participating lender" means a bank, savings bank, credit union, credit association, savings and loan association or other person that makes loans and that has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.88(1)(d)
(d) "Security interest" means an interest in property or other assets that secures payment or other performance of a guaranteed loan.
234.88(2)
(2) Eligible loans. A loan made by a participating lender is eligible for guarantee of repayment from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.88(2)(b)
(b) The borrower uses the loan proceeds for direct or related expenses, as determined by the authority, that are associated with remediation of contamination at a brownfields site.
234.88(2)(c)
(c) The loan proceeds are not applied to the outstanding balance of any other loan.
234.88(2)(d)
(d) The authority approves the interest rate on the loan, including any origination fees or other charges.
234.88(2)(e)
(e) The participating lender obtains a security interest in any equipment, machinery, physical plant or other assets to secure repayment of the loan.
234.88(2)(f)
(f) The loan term does not extend beyond 15 years after the date on which the participating lender disburses the loan unless the authority agrees to an extension of the loan term.
234.88(2)(g)
(g) 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.
234.88(2)(h)
(h) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.88(2)(i)
(i) The principal amount of the loan does not exceed $500,000.
234.88(3)(a)(a) Subject to
par. (b), beginning on July 1, 1998, the authority may guarantee repayment of a percentage, not exceeding 80%, 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 by 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.
234.88(3)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding principal amount of all guaranteed loans under
par. (a) may not exceed $22,500,000.
234.88 History
History: 1997 a. 27.
234.90
234.90
Agricultural production loan guarantees. 234.90(1)(ad)
(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.
234.90(1)(c)
(c) "Guaranteed loan" means an agricultural production loan which is guaranteed by the authority.
234.90(1)(d)
(d) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.90(2)
(2) Eligible loans. Except as provided in
sub. (3j), an agricultural production 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:
234.90(2)(a)
(a) The loan is to finance production of an agricultural commodity.
234.90(2)(b)
(b) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section will not exceed $20,000.
234.90(2)(bm)
(bm) If the loan is one for which the borrower is eligible under
sub. (3g), the amount of that loan does not exceed the amount of the payment, excluding interest or penalties if any, owed to the borrower by the insolvent or bankrupt dairy plant, subject to
par. (b).
234.90(2)(c)
(c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.90(2)(d)
(d) If the loan is one to which
sub. (5) applies, the rate of interest on the loan for which the borrower is obligated, including any origination fees or other charges relating to the loan, does not exceed the rate determined under
par. (c), minus 2%.
234.90(2)(e)
(e) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the loan to pay that supplier.
234.90(2)(f)
(f) The participating lender obtains a security interest for repayment of the loan in the agricultural commodity resulting from use of the loan proceeds.
234.90(2)(g)
(g) Unless waived by the authority, the borrower procures an insurance policy which protects the agricultural commodity to be financed with the proceeds of the loan against risk of loss, and the proceeds of which are payable to the participating lender.
234.90(2)(h)
(h) The term of the loan does not extend after March 31 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(2)(i)
(i) The proceeds of the loan may not be applied to the outstanding balance of any other loan, except that the proceeds may be used to refinance a loan under this section, subject to
sub. (3n).
234.90(2)(j)
(j) If the loan is one for which the borrower is eligible under
sub. (3g), the terms of the loan require the borrower to pay to the authorized lender, in repayment of the loan, money received from or on behalf of the bankrupt or insolvent dairy plant, immediately upon receipt of the money.
234.90(3)
(3) Eligible farmers. Except as provided under
subs. (3g) and
(3j), a farmer is eligible for a guaranteed loan if all of the following apply:
234.90(3)(a)
(a) The farmer does not meet the participating lender's minimum standards of creditworthiness to receive an agricultural production loan in the normal course of the participating lender's business.
234.90(3)(b)
(b) The amount of the farmer's debts totals at least 40% of the amount of the farmer's assets.
234.90(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 April 1 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(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.
234.90(3g)
(3g) Eligible dairy farmer. Except as provided in
sub. (3j), a farmer is eligible for a guaranteed loan under this subsection if all of the following apply:
234.90(3g)(a)
(a) The farmer has not been paid for milk provided to a dairy plant because of the bankruptcy or insolvency of the dairy plant.
234.90(3g)(b)
(b) 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 April 1 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(3g)(c)
(c) 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.
234.90(3j)
(3j) Emergency eligibility criteria. The authority may guarantee a loan to a farmer using eligibility criteria determined by the authority that differ from the criteria under
subs. (2) to
(3g) if all of the following apply:
234.90(3j)(a)
(a) The governor has determined that an emergency situation exists and that the criteria under
subs. (2) to
(3g) prevent the authority from making an adequate response to the emergency situation.
234.90(3j)(b)
(b) The authority has submitted to the joint committee on finance for review under
s. 13.10 the emergency eligibility criteria that it proposes to use, and the joint committee on finance has approved the use of the criteria for the emergency situation.
234.90(3m)
(3m) Extension. A participating lender may extend the term of a loan until no later than June 30 of the calendar year following the calendar year in which the participating lender granted the loan.
234.90(3n)(a)(a) Except as provided in
par. (b), proceeds of a guaranteed loan may be used to refinance a guaranteed loan no more than one time.
234.90(3n)(b)
(b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60% of the principal amount of the refinanced guaranteed loan has been repaid.
234.90(3p)
(3p) Instalment payment of certain loans. An authorized lender may require a borrower to repay a loan described in
sub. (3g) in instalments.
234.90(4)(a)(a) Except as provided in
par. (b), the authority shall guarantee repayment of 90% of the principal of any agricultural production loan eligible for guarantee under
sub. (2) made to a farmer eligible for a guaranteed loan under
sub. (3) or
(3g).
234.90(4)(b)1.1. Except as provided in
subd. 2., the total outstanding principal amount of all loans which the authority may guarantee under
par. (a) may not exceed $30,000,000 minus the total outstanding guaranteed principal amount that is guaranteed under
s. 234.91, subject to
s. 234.91 (5) (c).
234.90(4)(b)2.
2. The authority may request permission from the secretary of administration to increase the total outstanding principal amount of all loans it may guarantee. The secretary of administration may authorize the increase if the secretary determines that the agricultural production loan fund contains sufficient funds to guarantee loans in the requested total outstanding principal amount. If the secretary authorizes the increase, the secretary shall notify the joint committee on finance in writing. The authority may proceed with the proposed increase if within 14 working days after notification the committee does not schedule a meeting to review the proposed increase. If the committee schedules a meeting to review the proposed increase, the increase may not take effect unless the committee approves it.
234.90(5)
(5) Interest reduction. If at the time of origination or extension the interest rate on a guaranteed loan and the prime lending rate as reported by the federal reserve board in federal reserve statistical release H. 15 each equals or exceeds 10%, the authority shall pay, from the moneys in the Wisconsin development reserve fund, to the participating lender making the loan, an amount equal to 2% of the principal amount of the loan.
234.90 History
History: 1985 a. 9,
29,
153,
332,
334;
1987 a. 7,
27,
178,
421;
1989 a. 1,
10,
31,
336;
1991 a. 4,
39,
221;
1993 a. 1;
1995 a. 5,
150,
404.
234.905
234.905
Agricultural production drought assistance loan guarantees. 234.905(1)(b)
(b) "Agricultural production drought assistance loan" means a loan to a farmer to finance extraordinary drought-related costs, including the cost of any of the following:
234.905(1)(b)1.
1. Fertilizer, seed, fuel, pesticides, tillage services, crop insurance, or any other service or consumable good necessary to produce an agricultural commodity to replace or supplement an agricultural commodity adversely affected by drought conditions.
234.905(1)(b)2.
2. Water delivery in connection with agricultural commodities adversely affected by drought conditions.
234.905(1)(b)3.
3. Feed and associated expenses for animals to supplement feed supplies adversely affected by drought conditions.
234.905(1)(e)
(e) "Guaranteed loan" means an agricultural production drought assistance loan on which the authority guarantees collection.
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.
