45.79(7)(a)1.
1. Transfer to the bond security and redemption fund.
45.79(7)(a)2.
2. The acquisition or redemption of public debt in accordance with resolutions of the building commission.
45.79(7)(a)3.
3. Payment of losses arising from delinquency or default in the repayment of loans funded under
sub. (6) (a), including loss of principal and interest accrued to the point of final disposition of the defaulted loan and the expenses of management and sale of the property taken upon default of loan repayment.
45.79(7)(a)4.
4. Payment of all costs incurred by the department in processing and servicing loans and accounting for and administering the program under this section, including a portion of grants made to county veterans' service officers under
s. 45.43 (7).
45.79(7)(a)5.
5. Payment of all costs incurred in contracting public debt for the purposes under
s. 18.04 (5) and under
s. 18.04 (2) for the purpose of funding veterans' housing loans.
45.79(7)(a)6.
6. Payment of costs of issuance of obligations to fund loans under
sub. (6) (c) if not paid from the proceeds of the obligations.
45.79(7)(a)8.
8. Payment of any other costs of program operation and management authorized under this section.
45.79(7)(am)
(am) The board may amend the system of accounts established under
par. (a) only by resolution of the board that is approved by the building commission.
45.79(7)(b)
(b) If revenues of the veterans mortgage loan repayment fund are insufficient to meet all current expenses, the secretary of administration shall establish a repayment schedule whereby the general fund will be reimbursed in an orderly manner for moneys advanced. Interest rates to be charged on loans subsequently issued shall be adjusted to provide sufficient revenues to meet this repayment schedule.
45.79(7)(c)
(c) After meeting all expenses and providing for reserves under
par. (a) 3., balances in the veterans mortgage loan repayment fund, upon prior approval of the building commission, may be used for the following purposes:
45.79(7)(c)1.
1. To fund loans under this section to persons not disqualified from eligibility under
s. 45.74 who first served on active duty with the U.S. armed forces on or after January 1, 1977, or who completed their service on active duty with the U.S. armed forces more than 30 years before the date of the loan application.
45.79(7)(c)3.
3. To purchase loans or otherwise advance moneys for the payment of obligations arising from loans funded under
sub. (6) (c).
45.79(7)(c)4.
4. To pay the balances owing on guaranteed loans after the assumptions of the loans or the closings of the sales of residences under
sub. (10) (c).
45.79(7m)
(7m) Use of surpluses. Surpluses may be used under
sub. (10) (c) only if there are no unrestricted fund balances available for that purpose in the funds created under
sub. (9).
Section 20.001 (3) (e) shall not be construed to prohibit this action.
45.79(8)
(8) Limitation on remodeling or alteration for a disabled veteran. Not more than 50% of the proceeds of a loan granted under this section for a purpose under
s. 45.76 (1) (a) may be used for remodeling or alteration of the housing accommodation after purchase to meet the special needs of a veteran due to a permanent and total service-connected disability. That portion of the proceeds used for this purpose shall be reserved and distributed by the authorized lender.
45.79(9)
(9) Repayment of revenue obligations. 45.79(9)(a)(a) All moneys received from any source for repayment of loans, mortgages or mortgage loan notes funded with proceeds of revenue obligations issued under
sub. (6) (c) shall be deposited into one or more separate nonlapsible trust funds in the state treasury or with a trustee as provided in
s. 18.56 (9) (j). The board may pledge revenues received by the funds to secure revenue obligations issued under
sub. (6) (c) and shall have all other powers necessary and convenient to distribute the proceeds of the revenue obligations and loan repayments in accordance with
subch. II of ch. 18. Unrestricted balances in the funds may be used to fund additional loans issued under
sub. (6) (c) and pay the balances owing on loans after the assumptions of the loans or the closings of the sales of residences under
sub. (10) (c).
45.79(9)(b)
(b) Revenue obligations issued under
sub. (6) (c) shall not exceed $280,000,000 in principal amount, excluding obligations issued to fund or refund outstanding revenue obligation notes or to refund outstanding revenue obligation bonds.
45.79(9)(c)
(c) Except as may otherwise be expressly provided in resolutions authorizing the issuance of revenue obligations or in other agreements with the holders of revenue obligations, each issue of revenue obligations shall be on a parity with every other revenue obligation issued under
sub. (6) (c) and payable in accordance with
subch. II of ch. 18.
45.79(10)(a)(a) Upon any sale of the residence which secures a guaranteed loan made under this section after April 3, 1980, except for the purchase of the residence at the time the loan is initially made, the guaranteed loan may be assumed or continue to be paid in regular monthly instalments if the person who assumes the mortgage loan payments or who will make the regular monthly instalments agrees:
45.79(10)(a)1.
1. To pay interest on the loan from the date of the assumption of the loan, if the loan is assumed, or from the date of the closing of the sale of the residence at the maximum rates of interest being charged on guaranteed loans on the date the loan was initially made; and
45.79(10)(a)2.
2. To increase the amortization payments on the loan by an amount sufficient to amortize the loan by the date the balance thereon is payable in full according to the original terms of the loan.
45.79(10)(b)
(b) The department and authorized lenders shall increase the interest rates and amortization payments on loans assumed under
par. (a).
45.79(10)(c)
(c) After the assumption of a guaranteed loan funded under
sub. (6) (c), if the loan is assumed, or the closing of the sale of a residence on which a balance is owing on a guaranteed loan funded under
sub. (6) (c), the balance owing on the loan on the date of the assumption of the loan, if the loan is assumed, or the closing of the sale may be paid to the funds created under
sub. (9) from available surpluses, if any, in the veterans mortgage loan repayment fund under
sub. (7) (c). The loan and the mortgage and mortgage note pertaining to the loan may be purchased by the veterans mortgage loan repayment fund under
sub. (7).
45.79(12)
(12) Prior program loans. Subject to this section and
ss. 45.73 to
45.77, neither the department nor an authorized lender may deny a person a loan under this section because of the reason the person sold any property previously mortgaged by the person to the department or an authorized lender, if the person completely paid the balance of any previous loan under this subchapter in accordance with the terms and conditions of the promissory note and the mortgage or other agreement executed in connection with the previous loan.
45.79 History
History: 1973 c. 208,
333;
1975 c. 26,
198,
199;
1977 c. 4,
381;
1979 c. 4,
107,
155;
1979 c. 168 s.
21;
1979 c. 221;
1981 c. 45 s.
51;
1981 c. 93,
336;
1983 a. 27,
368;
1985 a. 6,
29;
1985 a. 332 s.
251 (1);
1987 a. 27,
319;
1987 a. 403 s.
255;
1989 a. 31,
56;
1991 a. 39;
1993 a. 16,
254,
490;
1995 a. 252,
255.
45.85
45.85
Disregard of agent orange litigation payment. Notwithstanding any other provision of this chapter, the department or authorized lender shall not consider any payment received by a veteran or a veteran's dependent from the settlement approved by the U.S. district court in the case of In re "Agent Orange" Product Liability Litigation,
618 F. Supp. 623 (D.C.N.Y. 1985), as income or assets for purposes of determining eligibility for primary mortgage loans under
s. 45.79.
