Executive Letter: WBA Municipal Borrowing Form Sets Accommodate New 20-Year Term

By Rose Oswald Poels

During the past 2023–2024 Wisconsin legislative session, 2023 Wisconsin Act 128 was signed into law which revised several banking-related areas of Wisconsin law, including a revision which extends the maximum maturity date of a promissory note issued by a municipality, county, or school district.

In particular, Act 128 revised Wis. Stat. Sec. 67.12 (12) as follows:

During the past 2023–2024 Wisconsin legislative session, 2023 Wisconsin Act 128 was signed into law which revised several banking-related areas of Wisconsin law, including a revision which extends the maximum maturity date of a promissory note issued by a municipality, county, or school district.

As a result of Act 128, the maximum maturity date of a promissory note issued to a municipality, county, or school district is now 20 years. In recent bank visits, I have fielded questions about whether this law has changed to allow banks to compete better with state programs and whether the current forms will work. The question related to whether the WBA municipal borrowing form sets offered through FIPCO accommodate the 20-year term now available under Wisconsin law is because an instructional page within the form sets references 10-years within its language.

Indeed, the current WBA municipal borrowing form sets will accommodate a 20-year loan term. These forms include the WBA 200-205 form sets and the WBA 220-225 form sets. The reference to “10-years” is only in the instructional cover page to each series and is not in the contents of the forms themselves which are executed with a municipal borrowing customer.

Each of the WBA municipal form sets listed above reference Wis. Stat. 67.12(12) within the forms’ language. Since Section 67.12(12) was the section revised by Act 128 to allow for a 20-year term, the WBA municipal borrowing form sets will accommodate a 20-year loan term.

Nonetheless, FIPCO is currently working on revisions to the WBA municipal borrowing form sets which include a revision to strike the reference of the “10 years” from the instructional cover page and change it to 20 years, changing any reference of “bank” within the forms to “financial institutions,” and adding other clarifying language. The revised forms are planned for release in the next month or two. Until such release, the current WBA municipal borrowing forms, WBA 200-205 form sets and the WBA 220-225 form sets, will accommodate a 20-year loan term.