The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
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20.143
(1) (c) (title)
Wisconsin development fund; grants, loans,
4reimbursements and assistance. Biennially, the amounts in the schedule for grants
5under s. 560.615; for grants and loans under ss. 560.62, 560.63 and 560.66; for grants
6under s. 560.16; for reimbursements under s. 560.167; for providing assistance under
7s. 560.06; for the loan under
1997 Wisconsin Act 27, section
9110 (7f);
for the loan
8under 1997 Wisconsin Act .... (this act), section 3
; and for the grants under
1995
9Wisconsin Act 27, section
9116 (7gg),
1995 Wisconsin Act 119, section
2 (1), and
1997
10Wisconsin Act 27, section
9110 (6g). Of the amounts in the schedule, $50,000 shall
11be allocated in each of fiscal years 1997-98, 1998-99 and 1999-2000 for providing
12the assistance under s. 560.06. Notwithstanding s. 560.62 (4), of the amounts in the
13schedule, $125,000 shall be allocated in each of 4 consecutive fiscal years, beginning
14with fiscal year 1998-99, for grants and loans under s. 560.62 (1) (a).
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20.143
(1) (ie)
Wisconsin development fund, repayments. All moneys received
18in repayment of grants or loans under s. 560.085 (4) (b), 1985 stats., s. 560.16, 1995
19stats., s. 560.165, 1993 stats., subch. V of ch. 560 except s. 560.65,
1989 Wisconsin
20Act 336, section
3015 (1m),
1989 Wisconsin Act 336, section
3015 (2m),
1989
21Wisconsin Act 336, section
3015 (3gx),
and 1997 Wisconsin Act 27, section
9110 (7f)
,
1and 1997 Wisconsin Act .... (this act), section 3
, to be used for grants and loans under
2subch. V of ch. 560 except s. 560.65, for grants under s. 560.16, for the loan under
31997 Wisconsin Act 27, section
9110 (7f), and for reimbursements under s. 560.167.
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(1)
Bank holding company loan.
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(a) In this subsection:
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71. "Department" means the department of commerce.
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82. "Local development corporation" has the meaning given in section 560.80 (7)
9(b) of the statutes.
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103. "Minority group member" has the meaning given in s. 560.036 (1) (f) of the
11statutes.
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124. "Secretary" means the secretary of commerce.
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(b) Subject to paragraph (f), from the appropriation under section 20.143 (1) (c)
14of the statutes, as affected by this act, the department may make a loan that does not
15exceed $5,000,000 to a bank holding company if all of the following apply:
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161. The bank holding company is located in the city of Milwaukee.
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172. The bank holding company is at least 51% owned and controlled by minority
18group members and has been in existence for at least 5 years.
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193. The bank holding company submits to the department documentation that
20its charter and recapitalization plan, if applicable, have been approved by the
21appropriate regulatory authorities.
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224. The bank holding company and any subsidiary of the bank holding company
23that is owned by minority group members serve a significant number of residents,
24small businesses and community-based organizations in an area that has high
25unemployment and low average income.
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15. The bank holding company submits to the department a plan detailing the
2proposed use of the loan proceeds and the secretary approves the plan.
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36. The secretary believes that it is reasonably likely that the bank holding
4company will be able to repay the loan in full.
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57. The bank holding company enters into a written agreement with the
6department specifying the term of the loan, which shall be at least 12 years and may
7be extended by an agreement between the secretary and the bank holding company,
8and establishing the other terms of the loan, including reporting and auditing
9requirements.
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(c) The secretary shall approve a plan submitted under paragraph (b
) 5. if all
11of the following are satisfied:
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121. In the plan, the bank holding company proposes to use the loan proceeds to
13capitalize a bank subsidiary that is at least 51% owned and controlled by minority
14group members and to capitalize a subsidiary that is a local development
15corporation.
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162. In the plan, the bank holding company specifies that none of the loan
17proceeds will be used for salaries or administrative costs.
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183. On the basis of the plan, the secretary determines that the proposed use of
19the loan proceeds is likely to stimulate and retain business investment and jobs in
20an area that has high unemployment and low average income.
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(d) Beginning no later than 12 months after a loan under this subsection is
22issued, a bank holding company that receives a loan under this subsection shall
23submit to the department, until the loan is repaid in full, an annual report that
24consists of all of the following information:
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11. The ability of the bank holding company's bank subsidiary to satisfy its
2capital reserve requirements.
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32. The activities of the bank holding company's local development corporation
4subsidiary.
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53. Any other information that the department and the bank holding company
6agreed, in the negotiations for the loan, that the bank holding company would submit
7in the reports.
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(e) The department shall deposit moneys received in repayment of a loan under
9this subsection in the appropriation account under section 20.143 (1) (ie) of the
10statutes, as affected by this act.
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(f) The department may not make a loan under this subsection after December
1231, 1998.
