SB21,1447,9 (2) The authority may create a system of funds and accounts, separate and distinct from all other funds and accounts of the authority, consisting of moneys received from notes and bonds, all revenues received in the repayment of loans made under ss. 234.621 235.621 to 234.626 235.626, except as provided in sub. (2m), and any other revenues dedicated to it by the authority. The authority may pledge moneys and revenues received or to be received by this system of funds and accounts to secure bonds or notes issued for the program. The authority shall have all other powers necessary and convenient to distribute the proceeds of the bonds, notes, and loan repayments in accordance with its powers under this chapter subchapter.

SB21,1447,11 (2m) Revenues received in the repayment of loans made under s. 234.165 235.025 shall be paid into the fund under s. 234.165 235.025.

SB21,1447,16 (4) The authority may adopt rules policies and procedures that restrict eligibility in addition to the requirements of s. 234.623 235.623 or require the provision of additional security if, in the executive director's judgment, the authority determines that the rules or security are required for the satisfactory issuance of bonds or notes.

SB21,1447,20 (6) Unless otherwise expressly provided in resolutions authorizing the issuance of bonds or notes or in other agreements with the holders of bonds or notes, each bond or note issued shall be on a parity with every other bond or note issued for the funding of loans under ss. 234.621 235.621 to 234.626 235.626.

SB21,1447,24 (7) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under ss. 234.621 235.621 to 234.626 235.626.

SB21,3905 Section 3905. 234.65 of the statutes is repealed.

SB21,3906 Section 3906. Subchapter II (title) of chapter 234 [precedes 234.67] of the statutes is renumbered subchapter V of chapter 235 [precedes 235.67].

SB21,3907 Section 3907. 234.67 of the statutes is renumbered 235.67, and 235.67 (1) (e), (2) (intro.) and (3), as renumbered, are amended to read:

SB21,1448,8 235.67 (1) (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. 234.93 235.93 (2) (a).

SB21,1448,11 (2) (intro.) A loan made by a participating lender before December 3, 1993, is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB21,1448,18 (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. 234.93 235.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB21,3908 Section 3908. 234.75 of the statutes is renumbered 235.75, and 235.75 (2) (c) and (5) (a) and (c) (intro.), as renumbered, are amended to read:

SB21,1448,22 235.75 (2) (c) The lender is the authority or a financial institution that enters into an agreement under s. 234.93 235.93 (2) (a).

SB21,1449,2 (5) (a) Subject to par. (b), the authority may guarantee collection of all or part of the unpaid principal of a loan eligible for guarantee under sub. (3). If the authority guarantees all or part of a loan under this subsection, the authority shall establish the amount of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.93 235.93 (2) (a).

SB21,1449,6 (c) (intro.) Notwithstanding s. 234.51 235.51 (2), the authority may transfer moneys from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund for a loan guarantee under this subsection if all of the following conditions are met:

SB21,3909 Section 3909. 234.83 of the statutes is renumbered 235.83, and 235.83 (1m) (c), (3) (intro.) and (4), as renumbered, are amended to read:

SB21,1449,10 235.83 (1m) (c) The lender enters into an agreement under s. 234.93 235.93 (2) (a).

SB21,1449,13 (3) Eligible loans. (intro.) A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB21,1449,22 (4) Guarantee of repayment. The authority may guarantee repayment of a portion of the principal of any loan eligible for a guarantee under sub. (1m). That portion may not exceed 80% of the principal of the loan or $750,000, whichever is less. The authority shall establish the portion of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.93 235.93 (2) (a). The authority may establish a single portion for all guaranteed loans that do not exceed $937,500 and a single portion for all guaranteed loans that exceed $937,500 or establish on an individual basis different portions for eligible loans that do not exceed $937,500 and different portions for eligible loans that exceed $937,500.

SB21,3910 Section 3910. 234.84 (title) of the statutes is renumbered 235.84 (title).

SB21,3911 Section 3911. 234.84 (1) of the statutes is repealed.

SB21,3912 Section 3912. 234.84 (2) of the statutes is renumbered 235.84 (2), and 235.84 (2) (c), as renumbered, is amended to read:

SB21,1450,4 235.84 (2) (c) The lender is a financial institution that enters into an agreement under s. 234.932 235.932 (3) (a).

SB21,3913 Section 3913. 234.84 (3) of the statutes is renumbered 235.84 (3), and 235.84 (3) (intro.) and (c), as renumbered, are amended to read:

SB21,1450,9 235.84 (3) Eligible loans. (intro.) A loan is eligible for guarantee of collection from the Wisconsin job training reserve fund under s. 234.932 235.932 if all of the following apply:

SB21,1450,11 (c) The interest rate on the loan, including any origination fees or other charges, is approved by the corporation authority.

SB21,3914 Section 3914. 234.84 (4) of the statutes is renumbered 235.84 (4) and amended to read:

SB21,1450,21 235.84 (4) Guarantee of collection. (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 corporation authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.932 235.932 (3) (a). The corporation authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB21,1450,24 (b) Except as provided in s. 234.932 235.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $8,000,000.