Section 54.08. Recovery of loan balance, interest and administrative costs.

  As part of the loan agreement, the secretary shall provide for the recovery of loan funds, interest, and administrative costs. The agreement shall require:

(1)  That the primary source of repayment shall be:

(a) Any federal, state, or sponsor's share of funds received for the land acquisition.

(b) Net income derived from the sale of surplus land and improvements acquired with loan funds. Such income shall be returned immediately upon receipt by the sponsor.

(2)  If funds available under sub. (1) are insufficient, then the remaining loan balance, interest, and administrative costs shall be repaid from:

(a) Any net income derived from leasing the land or improvements on the land acquired by the sponsor under the advance land acquisition loan program.

(b) Any other sources of revenue available to the sponsor.

(3)  The period for repayment of the loan balance, interest, and administrative costs shall not exceed 5 budget years. The repayment schedule shall be a matter of negotiation between the state and the sponsor.

(4)  Interest shall be charged at the rate of 4% per year on the unpaid principal balance.

History: Cr. Register, May, 1982, No. 317 , eff. 6-1-82.