Ch. Adm 85 NoteNote: Chapter DOD 20 was renumbered chapter Comm 120 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, June, 1997, No. 498. Chapter Comm 120 was renumbered chapter Adm 85 under s. 13.92 (4) (b) 1., Stats., Register December 2011 No. 672.

Adm 85.01Adm 85.01 Purpose. The purpose of this chapter is to establish a procedure for the administration of those aspects of rural hospital loan guarantees made by the Wisconsin health and educational facilities authority which relate to the following:

Adm 85.01(2)(2) The conditions upon which the authority may enter into a loan guarantee agreement.

Adm 85.01(3)(3) The procedures for making a demand for payment under a loan guarantee agreement, or for payment by the authority under such an agreement, in the event of a default of a guaranteed loan.

Adm 85.01(4)(4) The basis for determining whether the guarantee is a guarantee for collection or payment.

Adm 85.01(5)(5) The procedures by which the authority shall carry out a loan guarantee agreement.

Adm 85.01 HistoryHistory: Cr. Register, January, 1992, No. 433, eff. 2-1-92.

Adm 85.02(1)(1) “Authority” means the Wisconsin health and educational facilities authority.

Adm 85.02(2)(2) “Borrower” means a person identified in s. 231.35 (2) (a) or (b), Stats., who is seeking to have a loan guaranteed by the authority.

Adm 85.02(3)(3) “Guarantee of collection” means a loan guarantee under which the authority agrees to pay according to the terms of the guarantee agreement if the instrument is not paid when due and the participating lender has pursued all reasonable efforts relative to collection.

Adm 85.02(4)(4) “Guarantee of payment” means a loan guarantee under which the authority agrees to pay according to the terms of the guarantee agreement if the instrument is not paid when due.

Adm 85.02(5)(5) “Participating lender” has the meaning contained in s. 231.35 (1) (c), Stats.

Adm 85.02 HistoryHistory: Cr. Register, January, 1992, No. 433, eff. 2-1-92.

Adm 85.03Adm 85.03 Guarantee agreement. Each guarantee agreement entered into between the authority and a participating lender shall be in such form as the authority shall provide in the manual prepared according to s. Adm 85.07, and shall contain provisions that address each of the following:

Adm 85.03(1)(1) The principal amount of the loan and the portion of the principal amount that will be guaranteed.

Adm 85.03(2)(2) The loan servicing responsibilities of the participating lender.

Adm 85.03(3)(3) The loan collection and enforcement responsibilities of the participating lender.

Adm 85.03(4)(4) Any limitations on the rate of interest charged to or the timing of interest payments required of the borrower.

Adm 85.03(6)(6) The conditions under which a guarantee shall be paid and the procedures for making a demand for payment.

Adm 85.03(7)(7) Any bond or insurance required of the participating lender in order to protect the authority from loss under the agreement.