Rule 1-05 Loans

(a) Repayment by next election. A loan must be repaid by the date of the next election, or else the loan, guarantee, or other security for a loan will be considered a contribution subject to the Act's contribution limits.

(b) Loans not made in regular course of business. A loan not made in the regular course of the lender's business shall be deemed, to the extent not repaid to the lender by the date of the next election, a contribution by the lender.

(c) Loans made in regular course of business. A loan made in the regular course of the lender's business shall be deemed, to the extent not repaid by the date of the next election, a contribution by the obligor on the loan and by any other person endorsing, cosigning, guaranteeing, collaterizing, or otherwise providing security for the loan. Neither the Act nor the Charter prohibits receipt of a loan made in the regular course of the lender's business, regardless whether the lender is a corporation, limited liability company, or partnership.

(d) Third party repays loan. If any portion of a loan is repaid by a person or entity other than the participant or non-participant receiving the loan, the portion thus repaid shall be a contribution by that person or entity.

(e) Omitted.

(f) Omitted.

(g) Post-election loans. Loans received after an election that are used for that election are considered contributions for that election, and must be deposited in and disbursed from an account established and maintained for that election, as provided in Rule 2-06(b), except that a loan made by the candidate after the election for the purpose of (i) paying penalties pursuant to the Act or (ii) making required repayments to the Fund is not subject to the contribution limit.

(h) Attributing a loan to an election. A loan is presumed to be accepted for the first election in which the participant or non-participant is a candidate following the day that the loan is received, except: (1) as otherwise provided in Rule 1-05(g); (2) in the case of a State or local election, loans received before the first January 12 after an election will also be presumed to be accepted for that election; and (3) in the case of a federal election, loans received before the first January 1 after the election will also be presumed to be accepted for that election, except as may otherwise be provided under federal law and regulations.

(i) Deposit. All loans must be accepted and deposited, or rejected and returned, within 10 business days after receipt.

(j) Loans forgiven. Any portion of a loan that is forgiven is a monetary contribution.