Wisconsin Statutes 234.905 – Agricultural production disaster assistance loan guarantees
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Wisconsin Statutes 234.905
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Docket: A log containing brief entries of court proceedings.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
- State: when applied to states of the United States, includes the District of Columbia, the commonwealth of Puerto Rico and the several territories organized by Congress. See Wisconsin Statutes 990.01
(1) Definitions. In this section:
(a) “Agricultural commodity” has the meaning given under s. 94.67 (2).
(b) “Agricultural production disaster assistance loan” means a loan to a farmer to finance extraordinary disaster-related costs, including the cost of any of the following:
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 disaster conditions.
2. Water delivery in connection with agricultural commodities adversely affected by disaster conditions.
3. Feed and associated expenses for animals to supplement feed supplies adversely affected by disaster conditions.
(cm) “Disaster” means an act of nature for which the governor issues an executive order declaring a state of emergency for the state or any portion of the state under s. 323.10.
(d) “Farmer” has the meaning given under s. 102.04 (3).
(e) “Guaranteed loan” means an agricultural production disaster assistance loan on which the authority guarantees collection.
(f) “Participating lender” means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production disaster assistance loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
(2) Eligible loans. An agricultural production disaster 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:
(a) The total guarantee amount of all loans to the borrower that are guaranteed under this section will not exceed $25,000.
(b) The rate of interest on the agricultural production disaster assistance loan, including any origination fees or other charges relating to the agricultural production disaster assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
(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 disaster assistance loan to pay that supplier.
(d) The participating lender obtains security for repayment of the agricultural production disaster assistance loan or follows other procedures required by the authority to secure repayment of the agricultural production disaster assistance loan.
(f) The proceeds of the agricultural production disaster assistance loan may not be applied to the outstanding balance of any other loan.
(g) The proceeds of the agricultural production disaster assistance loan may not be used to refinance a loan made under this section.
(3) Eligible farmers. A farmer is eligible for a guaranteed loan if all of the following apply:
(a) The farmer does not meet the participating lender’s minimum standards of creditworthiness to receive an agricultural production disaster assistance loan in the normal course of the participating lender’s business.
(b) The participating lender projects the amount of the farmer’s debts related to the agricultural production that is the subject of the loan totals at least 40 percent of the amount of the farmer’s assets related to the agricultural production that is the subject of the loan.
(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 the end of the loan term.
(d) The farmer’s name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if 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).
(e) The participating lender projects that the farmer will lose approximately 40 percent or more of the farmer’s agricultural commodities because of a disaster.
(4) Guarantee of collection.
(a) The authority may guarantee collection of up to 90 percent of the principal of any agricultural production disaster assistance loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3).
(bn) The term of the authority’s loan guarantee under this section may not exceed 3 years, unless the guaranteed loan is included in a loan workout agreement.
(5) Interest reduction. The authority may pay, from the moneys in the Wisconsin development reserve fund, to each participating lender an amount that is no more than 3.5 percent of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by a farmer.