Federal Election Commission Main Page
November 22, 1985
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1985-33
Honorable Cardiss Collins
Citizens to Re-Elect Cardiss Collins
210 Seventh Street, S.E.
Suite 1985/C
Washington, D.C. 20003
Dear Representative Collins:
This responds to your letter of October 3, 1985, requesting
an advisory opinion concerning application of the Federal
Election Campaign Act of 1971, as amended ("the Act"), and
Commission regulations to the reporting of loans by your
principal campaign committee.
You state that there are "entities" that are willing to make
personal loans to you as a candidate but are not willing to make
loans to your principal campaign committee Citizens to Re-Elect
Cardiss Collins.1/ You state that you in turn wish to loan these
funds to your committee. You add that as a Member of Congress
the personal loans to you are reportable in your financial
disclosure report.2/
You ask whether your committee may report the receipt of
these funds as a personal loan from the candidate to the
committee.
Commission regulations permit a candidate to make unlimited
contributions, including loans, from the candidate's personal
funds to her authorized committees. See 11 CFR 110.10(a) and
1/ Your principal campaign committee reported the receipt of
$38,660 in contributions during the period of January 1, 1985,
through June 30, 1985. You filed your Statement of Candidacy on
September 26, 1985. See 2 U.S.C. SS 431(2) and 11 CFR 100.3.
2/ This report is filed with the Clerk of the House of
representatives pursuant to the Ethics In Government Act of 1978,
2 U.S.C. SS 701 et seq. The Commission does not address any
questions regarding the filing of your financial disclosure
report since such questions are not within its jurisdiction.
Advisory Opinion 1984-60.3/ Such loans are reportable by the
committee as loans made to the committee by the candidate. See
2 U.S.C. SS 434(b)(2)(G) and (3)(E); 11 CFR 104.3(a)(3)(vii) and
104.3(a)(4)(iv). This procedure applies to loans to the
committee from the candidate's personal funds.
The Act and Commission regulations, however, specifically
provide that when a candidate receives a loan for use in
connection with her campaign, the candidate receives such a loan
as an agent of her authorized committee or committees. 2 U.S.C.
SS 432(e)(2), 11 CFR 101.2 and 102.7(d). Such loans are reportable
by the committee and itemized as loans from the lender to the
committee, rather than as loans from the candidate to the
committee. 2 U.S.C. SS 434(b)(2)(H) and (3)(E); 11 CFR
104.3(a)(3)(vii) and 104.3(a)(4)(iv); see also 11 CFR 104.3(d).
Furthermore, the repayment of such loans are reported and
itemized as disbursements to the lender. 2 U.S.C. SS 434(b)(4)(E)
and (5)(D); 11 CFR 104.3(b)(2)(iii) and 104.3(b)(4)(iii) and
(iv).4/
The Act further provides that loans by lending institutions
described in the Act made in accordance with applicable law and
in the ordinary course of business do not constitute
contributions to the candidate or her authorized committees.
2 U.S.C. SS 431(8)(B)(vii); 11 CFR 100.7(b)(11). Thus, any loans
to a candidate as an agent of her authorized committees or to her
authorized committees from persons or entities, other than those
lending institutions described in the Act, come within the Act's
definition of contribution. See 2 U.S.C. SS 431(8)(A)(i); 11 CFR
100.7(a)(1). As contributions, such loans become subject to the
prohibitions and limitations of the Act. See 2 U.S.C. SS SS 441a,
441b, 441c, 441e, and 441f; Advisory Opinions 1982-64 and 1978-40.
You are a candidate who will receive personal loans which
you then plan to loan to your committee. The Act specifies that
you will be treated as receiving or obtaining these loans as an
agent of your committee. Therefore, these loans do not qualify
3/ Commission regulations also define "personal funds." See
11 CFR 110.10(b); Advisory Opinions 1982-64 and 1978-40.
4/ The Act and regulations also provide that debts and
obligations owed to or by a political committee which remain
outstanding shall be continuously reported until extinguished,
See 2 U.S.C. SS 434(b)(8); 11 CFR 104.3(d) and 104.11. This
reporting requirement attaches to both loans of a candidate's
personal funds to her authorized committees and loans obtained by
the candidate as an agent of her committees. This reporting
requirement also continues into subsequent election cycles where
the debt or obligation remains outstanding.
as your personal funds. Accordingly, your committee should
report and itemize these loans as loans from the initial lender
rather than as loans of your personal funds, see Advisory
Opinions 1982-64 and 1978-40.
This response constitutes an advisory opinion concerning
application of the Act, or regulations prescribed by the
Commission, to the specific transaction or activity set forth in
your request. 2 U.S.C. SS 437f.