The authority shall enter into loan agreements with participants and co-owners who agree to all of the following:
That the loan shall be due and payable upon the occurrence of any of the following events:
Transfer of the qualifying dwelling unit by any means except upon transfer to a co-owner who resides in the unit and who is permitted to assume the participant's account as provided in s. 234.624
The death of the participant if the participant is the sole owner.
The death of the last surviving co-owner who owns the qualifying dwelling unit.
The authority discovers that the participant or a co-owner has made a false statement on the application or otherwise in respect to the program.
The condemnation or involuntary conversion of the qualifying dwelling unit.
The participant ceases to meet the eligibility requirements of s. 234.623
, except as provided in sub. (5)
At the participant's or co-owner's election, at any time before any of the events under subds. 1.
If the participant is a veteran, as defined in s. 45.01 (12) (a)
, who is not 65 years of age or older, at a time before any of the events under subds. 1.
occurs, as determined under policies and procedures established by the authority.
To pay, upon repayment of the loan, interest specified in the loan agreement.
To limit the outstanding liens and judgments on the qualifying dwelling unit to no more than the permitted obligations.
If a participant in the program ceases to meet the eligibility requirements of this section, the authority, rather than demanding repayment under sub. (4) (b)
, may allow the participant to continue in the program, may allow the participant to continue in the program but be ineligible for additional loans, or may require partial settlement. The authority may also allow co-owners to be added to the loan agreement if, in the judgment of the executive director, the addition of co-owners does not significantly increase the authority's exposure to risk under the loan agreement.
At any time after an application is filed, the authority may verify the correctness of the application and any other information regarding the eligibility of the participant. If the authority finds that at the time a participant received a loan the participant was not eligible under the program, the authority shall notify the participant and may require repayment of the loan as determined by the authority.
The authority, its agents or representatives may examine the books and records of an applicant under this subchapter or other sources of information bearing on the application to verify the information provided by an applicant, may require the production of books, records and memoranda and may require testimony and proof relevant to its investigation. If a person fails to furnish information requested by the authority to verify the correctness of the application, the authority may reject the application.
Upon the making of the initial loan, a nonconsensual statutory lien in favor of the authority to secure payment of the principal, interest, fees and charges due on all loans, including loans made after the lien is filed, to the participant made under ss. 234.621
shall attach to the qualifying dwelling unit in respect to which the loan is made. The qualifying dwelling unit shall remain subject to the statutory lien until the payment in full of all loans and charges. If the authority funds such loans from the proceeds of notes or bonds under s. 234.626
, its right under the lien shall automatically accrue to the benefit of the holders of those notes or bonds, without any action or assignment by the authority. When a loan becomes due and payable, the statutory lien hereby conferred may be enforced by the authority or the holders of the notes or bonds or their representative, as the case may be, in the same manner as a construction lien under ss. 779.09
, except that neither the participant nor any co-owners or their personal representatives, successors or assigns shall be personally liable for any deficiency which may arise from the sale. At the time of disbursing the initial loan to a participant, the authority shall record with the register of deeds of the county in which the qualifying dwelling unit is located, on a form prescribed by the authority which shall contain a legal description of the qualifying dwelling unit, a notice of the loan made under ss. 234.621
and the existence of the statutory lien arising therefrom. The register of deeds shall record the notice in the land records and index it in the indexes maintained by the register of deeds. The statutory lien created by this section shall have priority over any lien that originates subsequent to the recording of the notice.
If the property taxes or special assessments are paid, using a loan made under ss. 234.621
, after the taxes or assessments are due, the participant shall be liable for interest and penalty charges for delinquency under ch. 74
. Subject to sub. (1)
, the principal amount of loans made under this program may include delinquency charges.
Loans made or authorized to be made under ss. 234.621
may be funded from the proceeds of notes and bonds issued subject to and in accordance with ss. 234.08
and from the fund under s. 234.165
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
, 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.
Revenues received in the repayment of loans made under s. 234.165
shall be paid into the fund under s. 234.165
The authority may enter into agreements with the federal government, its agencies, agencies or political subdivisions of this state or private individuals or entities to insure or in other manner provide additional security for the loans or bonds or notes issued under this section.
The authority may adopt rules that restrict eligibility in addition to the requirements of s. 234.623
or require the provision of additional security if, in the executive director's judgment, the rules or security are required for the satisfactory issuance of bonds or notes.
Bonds or notes issued for loans under this section shall not exceed $10,000,000 in principal amount, excluding obligations issued to refund outstanding bonds or notes.
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
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
History: 1981 c. 20
; 1983 a. 36
s. 96 (3)
; 1985 a. 29
; 1991 a. 269
; Stats. 1991 s. 16.997; 1993 a. 16
; Stats. 1993 s. 234.626; 1993 a. 490
Economic development. 234.65(1)(a)(a)
The authority may issue its negotiable bonds and notes to finance its economic development activities authorized or required under this chapter, including financing economic development loans.
The authority may issue not more than $150,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section, in each of the 3 consecutive fiscal years beginning after April 20, 2012, and, except as provided in subd. 2.
, may not issue bonds and notes under this section after the last day of the 3rd fiscal year that begins after April 20, 2012.
If, after the last day of the 3rd fiscal year that begins after April 20, 2012, the authority determines that a continuation of the program under this section will promote significant economic development in this state, the authority may seek approval from the joint committee on finance to issue additional bonds and notes under this section by submitting to the committee a written request that states the reasons supporting the authority's determination that the issuance of additional bonds and notes will promote significant economic development in this state. If, within 14 working days after the date of that written request, the cochairpersons of the committee do not notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may proceed to issue not more than $150,000,000 in aggregate principal bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section, in each of the 3 consecutive fiscal years beginning with the fiscal year in which approval is obtained under this subdivision. If, within 14 working days after the date of that written request, the cochairpersons of the committee notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may issue bonds and notes under this section only upon approval of the committee.
(d) Section 234.15
does not apply to bonds or notes issued under this section, and any bond or note issued under this section shall contain on its face a statement to that effect.
The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract.
In granting loans under this section the authority shall give preference to businesses which are more than 50 percent owned or controlled by women or minorities, to businesses that, together with all of their affiliates, subsidiaries and parent companies, have current gross annual sales of $5,000,000 or less or that employ 250 or fewer persons and to new businesses that have less than 50 percent of their ownership held or controlled by another business and have their principal business operations in this state.
The authority shall adopt procedures to implement sub. (3)
The authority may finance an economic development loan only after considering all of the following:
The extent to which an economic development project will maintain or increase employment in this state.
Whether an economic development project will be located in an area of high unemployment or low average income.
The number of financial institutions participating in the economic development project.
The extent to which the activities constituting the economic development project otherwise would not occur.
(b) Paragraph (a)
does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c)
The authority may finance an economic development loan only if all of the following conditions are met:
The authority has estimated whether the project that the authority would finance under the loan is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.
One or more other financial institutions participate in the economic development project.
The economic development project is or will be located in this state.
The authority shall not assume unsecured or uncollateralized risk for any economic development loan.
The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c)
The name of the person receiving the loan does not appear on the statewide support lien docket under s. 49.854 (2) (b)
or, if the person's name appears on that docket, the person 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)
Nothing in sub. (3) (am)
may be considered to require a business signing a loan contract to satisfy an estimate under sub. (3) (am)
(b) Paragraph (a)
and sub. (3) (am)
do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c)
An economic development loan may not be made unless the authority complies with sub. (1m)
and certifies that each loan complies with sub. (3)
Any economic development loan that a business receives from the authority under this section to finance a project shall require the business to submit to the authority within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner the net number of jobs eliminated, created, or maintained on the project site and elsewhere in this state as a result of the project. This subsection does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c)
In respect to the loans issued under this section, the authority shall submit to the governor, the joint committee on finance and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3)
, within 6 months after the close of its fiscal year an annual report including all of the following for the fiscal year:
A statement of the authority's operations, accomplishments, goals and objectives.
A financial statement showing income and expenses, assets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued.
The effects of lending under this section in the following areas:
Locating economic development projects in areas of high unemployment or low average income.
Obtaining the participation of a large number of financial institutions in the lending.
The geographical distribution of lending in this state.
History: 1983 a. 83
; 1985 a. 29
s. 3202 (28)
; 1985 a. 299
; 1987 a. 27
; 1989 a. 31
; 1991 a. 37
; 1993 a. 112
; 1995 a. 27
s. 9116 (5)
; 1995 a. 56
; 1997 a. 27
; 1999 a. 9
; 2001 a. 16
; 2005 a. 75
; 2007 a. 125
; 2011 a. 32
This section was created by 1983 Wisconsin Act 83
. Section 1 of that act is entitled "Legislative Declaration."
LOAN GUARANTEE PROGRAMS
Recycling loan guarantees. 234.67(1)(am)
"Diaper service" means a business that supplies and launders cloth diapers.
"Guaranteed loan" means a loan on which the authority guarantees collection under sub. (3)
"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)
"Percentage of guarantee" means the percentage established by the authority under sub. (3)
"Security interest" means an interest in property or other assets that secures payment or other performance of a guaranteed loan.
(2) Eligible loans.
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
if all of the following apply:
The loan is made to do one of the following:
Expand or improve an existing diaper service or to start a new diaper service.
To provide working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, produce in this state a product from products recovered from postconsumer waste:
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.
The total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
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.