Section 126.06. Contingent financial backing.

 

(1)   Department may acquire. Using moneys appropriated under s. 20.115 (1) (v) , the department may acquire contingent financial backing to secure payment under s. 126.72 (2) of claims against contributing contractors, as defined in s. 126.68 (1) . The contingent financial backing may be in one or more of the following forms:

(a) A surety bond.

(b) A contract to provide a cash loan to the fund whenever the department requests a loan payable as provided in sub. (3) .

(c) Trade credit insurance.

(d) Any other form that the department determines is appropriate.

(2)   Amount.

(a) Except as provided in par. (b) , the department may determine the amount of any contingent financial backing that it obtains under sub. (1) , up to the amount that, in the department's judgment, is sufficient to meet reasonably foreseeable needs under s. 126.72 (2) . In making this determination, the department shall consider acquisition costs and repayment liabilities.

(b) The department may not acquire contingent financial backing in an amount that exceeds $17,000,000, unless the department establishes a different maximum amount by rule.

(3)   Repayment. The department shall pay principal and interest costs of any loan provided under sub. (1) (b) only from the appropriation from the agricultural producer security fund under s. 20.115 (1) (wc) .

2001 a. 16 ; 2003 a. 38 ; 2009 a. 296 .