Section 85.03. Guarantee agreement.

  Each guarantee agreement entered into between the authority and a participating lender shall be in such form as the authority shall provide in the manual prepared according to s. Adm 85.07 , and shall contain provisions that address each of the following:

(1)  The principal amount of the loan and the portion of the principal amount that will be guaranteed.

(2)  The loan servicing responsibilities of the participating lender.

(3)  The loan collection and enforcement responsibilities of the participating lender.

(4)  Any limitations on the rate of interest charged to or the timing of interest payments required of the borrower.

(5)  The term of the guarantee agreement.

(6)  The conditions under which a guarantee shall be paid and the procedures for making a demand for payment.

(7)  Any bond or insurance required of the participating lender in order to protect the authority from loss under the agreement.

(8)  Any note, mortgage, other security agreements or other loan documents required to be provided by the participating lender to the authority.

(9)  The need for any multi-party agreements between the borrower, the participating lender, the community or other guarantor, and the authority.

(10)  Any limitations on the right of the participating lender to alter the terms of the original loan that is guaranteed under the agreement.

(11)  Conditions under which the authority may terminate the agreement.

(12)  The rights of the authority to enforce the agreement and the remedies available to it in case of a breach of the agreement.

(13)  Any reporting requirements of the participating lender to the authority.

(14)  The right of the authority to examine documents in the possession of the participating lender related to the loan that is guaranteed under the agreement.

(15)  Any fee charged by the authority to the participating lender for the loan guarantee.

(16)  Any limitation on assignment of the participating lender's interest in the loan.

(17)  Sharing of repayment proceeds and collateral between the participating lender and the authority.

(18)  Such other items as are necessary to produce a complete guarantee agreement between the participating lender and the authority.

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