138.056(7)(7) Priority. Any interest accrued or added to the principal of a variable rate loan to implement an interest rate adjustment retains the priority of the original mortgage or equivalent security interest. 138.056(8)(8) Applicability. This section does not apply to any of the following: 138.056(8)(a)(a) A loan or forbearance to a corporation or a limited liability company. 138.056(8)(b)(b) A loan that is primarily for a business purpose or for an agricultural purpose, as defined in s. 421.301 (4). 138.056(8)(d)(d) A transaction initially entered into before November 1, 1981. 138.056 Cross-referenceCross-reference: See also s. DFI-SB 13.02, Wis. adm. code. 138.057138.057 Penalties. Any lender who intentionally violates s. 138.053, 138.055 or 138.056 is liable to the borrower for all excess interest collected, plus interest thereon at the rate of 5 percent per year. In addition, the borrower may recover actual damages, including incidental and consequential damages, sustained by reason of the violation. 138.057 HistoryHistory: 1975 c. 387; 1977 c. 26; 1981 c. 45 s. 51. 138.058138.058 Reverse mortgage loans. 138.058(1)(a)(a) “Qualified lender” means a lender approved by the federal department of housing and urban development to enter into a loan insured by the federal government under 12 USC 1715z-20. 138.058(1)(b)(b) “Reverse mortgage loan” means a loan, or an agreement to lend, which is secured by a first mortgage on the borrower’s principal residence, is insured by the federal government under 12 USC 1715z-20 and requires repayment as specified in the loan agreement under any of the following conditions: 138.058(1)(b)2.2. All the borrowers have sold the residence or conveyed title to the residence. 138.058(1)(b)3.3. All the borrowers have moved permanently from the residence. 138.058(2)(2) Reverse mortgages permitted. A qualified lender may enter into reverse mortgage loans. 138.058(3)(3) Treatment of reverse mortgage loan proceeds by public benefit programs. 138.058(3)(a)(a) Reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals. 138.058(3)(b)(b) Undisbursed funds shall be treated as equity in a borrower’s residence and not as proceeds from a loan for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals. 138.058(3)(c)(c) This subsection applies to any law relating to payments, allowances, benefits or services provided on a means-tested basis by this state, including supplemental security income, low-income energy assistance, property tax deferral, medical assistance and general assistance. 138.058 HistoryHistory: 1993 a. 88. 138.06138.06 Effect of usury and penalties. 138.06(1)(1) All instruments, contracts or securities providing a rate of interest exceeding the rate allowed in s. 138.05, 138.051 or 138.052 shall be valid and effectual to secure the repayment of the principal amount loaned in excess of $2,000; but no interest may be recovered thereon except upon bottomry and respondentia bonds and contracts. 138.06(2)(2) Any lender or agent of a lender who violates s. 138.05, 138.051 or 138.052 may be fined not less than $25 nor more than $500, or imprisoned not more than 6 months, or both. 138.06(3)(3) Any borrower who paid interest on a loan or forbearance at a rate greater than the rate allowed in s. 138.05, 138.051 or 138.052 may personally or by personal representative recover in an action against the lender or personal representative the amount of interest, principal and charges paid on such loan or forbearance but not more than $2,000 of principal, if the action is brought within the time provided by s. 893.62. 138.06(4)(4) Any borrower to whom a lender or agent of a lender fails to provide the statement required in s. 138.05 (4) with respect to a loan or forbearance may by himself or herself or his or her personal representative recover in an action against the lender or the lender’s personal representative an amount equal to all interest and charges paid upon such loan or forbearance but not less than $50 plus reasonable attorney fees incurred in such action.