Before it may enter in to a loan guarantee agreement with a participating lender, the authority shall find that the following conditions exist:

1. (1) That the borrower has demonstrated a reasonable ability to repay the loan.
2. (2) That the availability of the guarantee either reduces the cost of the loan to the borrower or increases access to capital for the borrower.
3. (3) That the borrower has or will obtain the legal authority necessary to construct, operate and maintain the facility and to incur and repay the debt.
4. (4) That the participating lender employs normal and prudent loan processing procedures in relation to its evaluation of the borrower’s loan proposal.
5. (5) That the term of the loan does not exceed the useful life of the facility or equipment to be financed with the loan proceeds.
6. (6) That adequate security is available to reasonably ensure the authority from loss under the guarantee agreement.
7. (7) That the guarantee amount requested does not exceed the amount in the appropriation under s. 20.440 (2), Stats., available after subtracting outstanding loan guarantee commitments.
8. (8) That the proposed loan and guarantee agreement comply with all of the applicable provisions of s. 231.35, Stats., and this chapter.
9. (9) That the reserve account required under s. Adm 85.08 is or will be established.
10. (10) That the community or other third party has or will provide a guarantee of not less than 20% of the original loan principal.

History

History: Cr. Register, January, 1992, No. 433, eff. 2-1-92; correction in (9) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.