234.67 Recycling loan guarantees.
(1) Definitions. In this section:
(am) “Diaper service" means a business that supplies and launders cloth diapers.
(c) “Guaranteed loan" means a loan on which the authority guarantees collection under sub. (3).
(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 (2) (a).
(f) “Percentage of guarantee" means the percentage established by the authority under sub. (3).
(g) “Postconsumer waste" has the meaning given in s. 287.01 (7).
(h) “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:
(a) The loan is made to do one of the following:
1. Expand or improve an existing diaper service or to start a new diaper service.
2. 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:
a. Physical plant.
b. Machinery or equipment.
(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.
(c) The total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
(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.
(g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
(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.
(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.
(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
(3) Guarantee of collection. The authority shall guarantee collection of a percentage, not exceeding 90 percent, 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.
History: 1989 a. 335; 1991 a. 39, 221; 1993 a. 75; 1995 a. 227; 2001 a. 16.