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)(c)
(c) "Farmer" means a person engaged in, or who intends to engage in, farming, as defined in
s. 102.04 (3).
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.
234.91(2)(d)
(d) The rate of interest and the loan terms, including any associated fees or charges, are approved by the authority.
234.91(2)(e)
(e) The participating lender obtains a security interest in assets of the borrower sufficient to secure repayment of the loan.
234.91(2)(g)
(g) Loan proceeds are not used to refinance existing debt, for entertainment expenses, or for expenses related to a community-based residential facility, except that loan proceeds may be used to refinance existing debt if the borrower also expands an existing business.
234.91(3)
(3) Eligible farmers. A farmer is eligible for a guarantee of a loan under this section if all of the following apply at the time the loan is made:
234.91(3)(a)2.
2. A person who intends to operate farm premises and who has not less than 3 years of farming experience including managing the day to day operations of a farm.
234.91(3)(b)
(b) The amount of the farmer's debts, including the loan, does not exceed 85% of the farmer's assets, including the value of the agricultural assets to be acquired, or the improvements to be made, with the proceeds of the loan.
234.91(3)(c)
(c) The participating lender considers the farmer's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation during the term of the loan.
234.91(4)
(4) Origination fees. The authority shall charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee shall be 1% of a loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund to be used to guarantee loans under this section.
234.91(5)(a)(a) The authority shall guarantee collection of a percentage of the principal of a loan eligible for a guarantee under
sub. (2). The principal amount of an eligible loan that the authority may guarantee may not exceed the borrower's net worth or 25% of the total loan amount, whichever is less, calculated at the time the loan is made.
234.91(5)(b)
(b) The term of a loan guarantee under this section may not exceed 10 years.
234.92
234.92
Financial assistance; fees. The authority may establish premiums, fees or other charges for providing financial assistance under programs guaranteed by the Wisconsin development reserve fund.
234.92 History
History: 1989 a. 31,
359;
1993 a. 394;
1997 a. 27 s.
3360; Stats. 1997 s. 234.92.
234.93
234.93
Wisconsin development reserve fund. 234.93(1)(1)
Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans, a Wisconsin development reserve fund, consisting of all of the following:
234.93(1)(a)
(a) Moneys appropriated to the authority under
s. 20.490 (5) (a),
(q),
(r) and
(s) or received by the authority for the Wisconsin development reserve fund from any other source.
234.93(1)(b)
(b) Any income from investment of money in the Wisconsin development reserve fund by the authority under
s. 234.03 (18).
234.93(1)(c)
(c) Any moneys transferred from the recycling loan fund, agricultural production loan fund or drought assistance and development loan fund.
234.93(2)(a)(a) The authority may enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin development reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program:
234.93(2)(a)2.
2. Any conditions upon which the authority may refuse to enter into such an agreement.
234.93(2)(a)3.
3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.93(2)(b)
(b) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under s.
234.67 (5), 1989 stats., s.
234.82 (5), 1989 stats., s.
234.90 (7), 1989 stats., s.
234.905 (7), 1989 stats., or s.
234.907 (5), 1989 stats., in effect immediately before August 15, 1991, shall continue in full force and effect, as if entered into under
par. (a).
234.93(2)(bm)
(bm) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under
par. (a) with respect to a loan guaranteed under s.
234.68, 1995 stats., s.
234.69, 1995 stats., s.
234.765, 1995 stats., s.
234.82, 1995 stats., s.
234.83, 1995 stats., or s.
234.87, 1995 stats., that is in effect immediately before October 14, 1997, shall continue in full force and effect until the termination or expiration of the agreement according to its terms.
234.93(2)(c)
(c) The authority may not use any moneys other than those in the Wisconsin development reserve fund for programs guaranteed by the Wisconsin development reserve fund.
234.93(2)(d)
(d) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the loan guarantee program, to advise the authority about lending requirements and issues related to a loan guarantee program.
234.93(3)
(3) Loan guarantees; increases or decreases. 234.93(3)(a)(a) Except as provided in
par. (b), the total principal amount or total outstanding guaranteed principal amount of all loans that the authority may guarantee under the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, excluding the program under s.
234.935, 1997 stats., may not exceed $49,500,000.
234.93(3)(b)
(b) The authority may request the joint committee on finance to take action under
s. 13.10 to permit the authority to increase or decrease the total principal amount or total outstanding guaranteed principal amount of loans that it may guarantee under the aggregate of the programs guaranteed by the Wisconsin development reserve fund. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.
234.93(3m)
(3m) Extension of loan guarantee program. When the authority prepares a fiscal estimate under
s. 13.093 (2) (a) with respect to any bill that extends a program that is guaranteed by funds from the Wisconsin development reserve fund, the authority shall include in its fiscal estimate a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the program is extended, with such amounts and the balance remaining if the program is not extended.
234.93(4)(a)(a) Annually on June 30, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin development reserve fund on that date, after deducting an amount sufficient for all of the following:
234.93(4)(a)1.
1. To pay all outstanding claims under the programs guaranteed by funds from the Wisconsin development reserve fund.
234.93(4)(a)2.
2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program under s.
234.935, 1997 stats., and the program under
s. 234.75, at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.
234.93(4)(a)3.
3. To fund guarantees under the program under s.
234.935, 1997 stats., and the program under
s. 234.75 at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under that program.
234.93(4)(b)
(b) Annually on August 31, the executive director of the authority shall provide to the secretary of administration and to the joint committee on finance a signed statement that includes all of the following:
234.93(4)(b)1.
1. The amounts required to pay outstanding claims and to fund guarantees under each of the programs guaranteed by funds from the Wisconsin development reserve fund on that date.
234.93(4)(b)2.
2. An explanation of how each amount under
subd. 1. was calculated or otherwise determined.
234.93(4)(b)3.
3. The amount of the balance, if any, that remains in the Wisconsin development reserve fund after deducting the amounts under
subd. 1. and that will be transferred to the general fund under
par. (a).
234.93(4)(b)4.
4. A projection of what the amounts under
subds. 1. and
3. will be on June 30 in each of the next 2 years.
234.93(4m)
(4m) Limitation on loan guarantees. The authority shall regularly monitor the cash balance in the Wisconsin development reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in
sub. (4) (a) 1.,
2., and
3.
234.93(5)
(5) Annual report. On or before November 1 annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under
s. 13.172 (2) and to the joint committee on finance an annual report on the number and total dollar amount of guaranteed loans under each of the programs guaranteed by the Wisconsin development reserve fund, the default rate on the loans and any other information on a program guaranteed by the Wisconsin development reserve fund that the authority determines is significant.
234.93(6)
(6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin development reserve fund.
234.932
234.932
Wisconsin job training reserve fund. 234.932(2)(2)
Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under
s. 234.84, a Wisconsin job training reserve fund, consisting of all of the following:
234.932(2)(a)
(a) Moneys received by the authority for the Wisconsin job training reserve fund from any other source.
234.932(2)(b)
(b) Any income from investment of money in the Wisconsin job training reserve fund by the authority under
s. 234.03 (18).
234.932(3)(a)(a) The authority shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association, or other person who wishes to participate in the loan program guaranteed by the Wisconsin job training reserve fund. The authority may determine all of the following, consistent with the terms of the loan guarantee program:
234.932(3)(a)2.
2. Any conditions upon which the authority may refuse to enter into such an agreement.
234.932(3)(a)3.
3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.932(3)(b)
(b) The authority may not use any moneys other than those in the Wisconsin job training reserve fund for the job training loan guarantee program, and may not use moneys in the Wisconsin job training reserve fund for any programs other than the job training loan guarantee program.
234.932(3)(c)
(c) The Wisconsin Economic Development Corporation may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the job training loan guarantee program, to provide advice about lending requirements and issues related to the job training loan guarantee program.
234.932(3)(d)
(d) The authority shall ensure that the cash balance in the Wisconsin job training reserve fund is sufficient to pay all outstanding claims under the job training loan guarantee program. The authority shall regularly monitor the cash balance in the Wisconsin job training reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph.
234.932(4)
(4) Increases or decreases in loan guarantees. The authority may request the joint committee on finance to take action under
s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it may guarantee under the job training loan guarantee program. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the job training loan guarantee program, and the balance remaining in the Wisconsin job training reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.
234.932(4m)
(4m) Balance transfer. On October 14, 1997, and annually thereafter on August 31, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin job training reserve fund on that date, after deducting an amount sufficient to pay all outstanding claims under the job training loan guarantee program.
234.932(5)
(5) Annual report. Annually, the authority shall report on the number and total dollar amount of guaranteed loans under the job training loan guarantee program, the default rate on the loans and any other information on the program that the authority determines is significant.
