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 farmer's name does not appear on the statewide support lien docket under
s. 49.854 (2) (b) or, if the farmer's name appears on that docket, the farmer 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).
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 farmer's name does not appear on the statewide support lien docket under
s. 49.854 (2) (b) or, if the farmer's name appears on that docket, the farmer 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).
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) Installment payment of certain loans. An authorized lender may require a borrower to repay a loan described in
sub. (3g) in installments.
234.90(4)
(4) Guarantee. The authority shall guarantee repayment of 90 percent of the principal, if less than $50,000, or 80 percent of the principal, if $50,000 or more, 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(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(6)
(6) Review. The authority shall annually review the program under this section for the purpose of maximizing the benefits of the program.
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;
1999 a. 9;
2001 a. 16;
2003 a. 236.
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 farmer's name does not appear on the statewide support lien docket under
s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if the farmer 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).
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.
234.905(4)(a)(a) Except as provided in
par. (b), on or before June 30, 1989, the authority shall guarantee collection of 90% of the principal of any agricultural production drought assistance loan eligible for guarantee under
sub. (2) made to a farmer eligible for a guaranteed loan under
sub. (3).
234.905(4)(b)
(b) Except as provided in
s. 234.93 (3), the total principal amounts of all agricultural production drought assistance loans which the authority may guarantee under
par. (a) may not exceed $30,000,000.
234.905(5)
(5) Interest reduction. The authority shall pay, from the moneys in the Wisconsin development reserve fund, to each participating lender an amount equal to 3.5% of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by a farmer, except that the authority shall make interest reduction payments for no more than 3 years of the repayment term of any guaranteed loan.
234.907
234.907
Agricultural development loan guarantee program. 234.907(1)(d)
(d) "Guaranteed loan" means a loan on which the authority guarantees collection under
sub. (3).
234.907(1)(e)
(e) "Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.907(1)(f)
(f) "Percentage of guarantee" means the percentage established by the authority under
sub. (3).
234.907(1)(g)
(g) "Raw agricultural commodity" means any agricultural, aquacultural, horticultural, viticultural, vegetable, poultry, and livestock products produced in this state, including milk and milk products, bees and honey products, timber and wood products, or any class, variety or utilization of the products, in their natural state.
234.907(1)(h)
(h) "Security interest" means an interest in property or other assets which secures payment or other performance of a guaranteed loan.
234.907(2)
(2) Eligible loans. A 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:
234.907(2)(a)
(a) The loan is made for working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, process or market a product from a raw agricultural commodity produced in this state or to commercially harvest whitefish from Lake Superior:
234.907(2)(b)
(b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority.
234.907(2)(c)
(c) Subject to
par. (cm), the total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
234.907(2)(cm)
(cm) The total principal amount extended to the borrower for loans that are guaranteed under this section and that are made for working capital or an item necessary to, or used to, commercially harvest whitefish from Lake Superior will not exceed $100,000.
234.907(2)(d)
(d) The borrower's principal place of operations for processing or marketing a product from a raw agricultural commodity is located in a town, village or city in this state with a population of less than 50,000. This paragraph does not apply to a borrower that harvests whitefish from Lake Superior.
234.907(2)(e)
(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
234.907(2)(f)
(f) The loan term does not extend beyond 15 years after the date that the participating lender disburses the loan unless the loan is extended by the authority.
234.907(2)(g)
(g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
234.907(2)(h)
(h) The loan results in new or more viable methods for the processing or marketing of a product from a raw agricultural commodity or enables the borrower to comply with the rules promulgated by the department of natural resources for the commercial fishing of whitefish in Lake Superior.
234.907(2)(i)
(i) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive a loan for the purposes described in
par. (a) in the normal course of the participating lender's business.
234.907(2)(j)
(j) 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.
234.907(2)(k)
(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.907(3)
(3) Guarantee of collection. The authority shall guarantee collection of a percentage, not exceeding 90%, 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, 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.
234.91
234.91
Farm assets reinvestment management loan guarantee program. 234.91(1)(a)
(a) "Agricultural assets" means machinery, equipment, facilities, land or livestock.
234.91(1)(b)
(b) "Farm credit service" includes a production credit association, federal land credit association and agricultural credit association.
234.91(1)(e)
(e) "Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under
s. 234.93 (2) (a). The term does not include a seller under a land contract.
234.91(2)
(2) Eligible loans. A 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:
234.91(2)(a)
(a) The borrower is a farmer who is eligible for a guarantee under
sub. (3).
234.91(2)(b)
(b) The loan is made to finance the acquisition of agricultural assets or the cost of improvements to facilities or land. The agricultural assets must be acquired, and the improvements must be made, for agricultural purposes.
234.91(2)(c)
(c) The total outstanding guaranteed principal amount of all loans made to the borrower that are guaranteed under this section will not exceed $200,000, or $100,000 if any of the loans is affected by any other state or federal credit assistance program.
