234.84(3)(b)
(b) The borrower certifies that loan proceeds will not be used to refinance existing debt or for operating or entertainment expenses.
234.84(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the department.
234.84(3)(d)
(d) The original loan term does not extend beyond 3 years if the loan proceeds are used exclusively for expenses related to instruction or training, or beyond 5 years if the loan proceeds are used for purchasing equipment or upgrading facilities that will be used for instructing or training employees.
234.84(3)(e)
(e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.
234.84(3)(f)
(f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employees.
234.84(3)(g)
(g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria.
234.84(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under
sub. (2). The department shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.932 (3) (a). The department may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.84(4)(b)
(b) Except as provided in
s. 234.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $8,000,000.
234.84(5)(a)(a) The program under this section shall be administered by the department with the cooperation of the authority. The department shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the department and the authority with regard to the administration of the program, including the functions and responsibilities specified in
s. 234.932. The memorandum of understanding shall provide for reimbursement to the department by the authority for costs incurred by the department in the administration of the program.
234.84(5)(b)
(b) The department may charge a premium, fee or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee.
234.84 History
History: 1995 a. 27 s.
9116 (5);
1995 a. 116.
234.86
234.86
Drinking water loan guarantee program. 234.86(1)(a)
(a) "Community water system" means a public water system that serves at least 15 service connections used by year-round residents or that regularly serves at least 25 year-round residents.
234.86(1)(b)
(b) "Department" means the department of natural resources.
234.86(1)(d)
(d) "Noncommunity water system" means a public water system that is not a community water system.
234.86(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin drinking water reserve fund under
s. 234.933 to guarantee a loan under this section if all of the following apply:
234.86(2)(a)
(a) The borrower is not a local governmental unit and is one of the following:
234.86(2)(a)2.
2. The owner of a noncommunity water system and is not operated for profit.
234.86(3)
(3) Eligible loans. A loan is an eligible loan if all of the following apply:
234.86(3)(a)
(a) The department determines that the loan will facilitate compliance with national primary drinking water regulations under
42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act,
42 USC 300f to
300j-26.
234.86(4)(a)(a) Subject to
par. (b), the authority may guarantee collection of a percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee under this section. 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. 234.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.86(4)(b)
(b) Except as provided in
s. 234.933 (4), the total outstanding principal amount of all guaranteed loans under
par. (a) may not exceed $3,000,000.
234.86 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) In order to maximize the benefits of the program under this section, the total outstanding principal amount of all loans to the borrower that are guaranteed under this section will not exceed an amount set annually, no later than December 1, by the authority that is not less than $30,000 nor more than $100,000. For purposes of adjusting the total outstanding principal amount of all loans to a borrower under this paragraph, the authority shall consider changes in the index of prices paid by farmers published by the federal department of agriculture.
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 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.
