231.35 Rural hospital loan guarantee.

526 words·~2 min read·/wi/chapter-231/231-35-9

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)In this section:

(a)“Guaranteed loan” means a loan that the authority guarantees under sub.

(3).

(b)“Hospital services” means medical or social services provided by a hospital and includes day care, hospice care and outpatient treatment.

(c)“Participating lender” means any person, including the authority, who does all of the following:

1. Makes loans to rural hospitals.

2. Enters into a guarantee agreement with the authority under sub.

(6).

(d)“Rural” means outside a metropolitan statistical area specified under 42 CFR 412.62

(A)or in a city, village, or town with a population of not more than 14,000.

(e)“Rural hospital loan fund” means the fund established under s. 231.36 .

(2)A person is eligible for a guarantee under this section if the person is one of the following:

(a)A nonprofit rural hospital with no more than 100 beds.

(b)A cooperative organized under ch. 185 or 193 that consists of one or more rural hospitals, each with no more than 100 beds.

(c)A nonprofit rural primary care provider.

(3)Subject to sub.

(4), the authority may guarantee a loan under this section that is made on or before July 29, 1995, if all of the following apply:

(a)The borrower is eligible for a guarantee under sub.

(2).

(b)The borrower will use the proceeds of the loan to finance the acquisition, construction, remodeling or conversion of space at a rural hospital, or the acquisition or construction of equipment for a rural hospital, to provide hospital services.

(c)Not more than 25 percent of the proceeds of the loan will be used to refinance a previous loan that financed the acquisition, construction, remodeling or conversion of space at a rural hospital to provide hospital services.

(d)The principal amount of the loan is at least $100,000, but not more than $1,500,000.

(e)The loan is made by a participating lender.

(f)The borrower pays to the authority, for deposit into the rural hospital loan fund, a service charge in an amount determined by the authority but not exceeding 0.5 percent of the total principal amount of the loan.

(g)The borrower provides proof of local community support for the acquisition, construction, remodeling or conversion to be financed by the loan proceeds by obtaining a loan guarantee of at least 20 percent of the loan principal from the community or another 3rd party that is acceptable to the participating lender and to the authority.

(h)The term of the loan is not longer than 10 years.

(i)The borrower establishes a reserve fund of not less than 10 percent of the loan principal.

(j)The total of the borrower’s reserve fund under par.

(i), the 3rd-party loan guarantee under par.

(g)and the guarantee under sub.

(a)will not exceed 90 percent of the loan principal.

(a)The authority shall guarantee payment or collection of 20 percent of the principal of loans guaranteed under sub.

(3).

(b)The total principal amount of all loans that the authority may guarantee under sub.

(3)may not exceed $5,000,000.