Ohio Administrative Code › Title 111:2 - Campaign Finance › Chapter 111:2-1 - General Provisions › Section 111:2-1-03 - Loan

Current through all regulations passed and filed through July 1, 2024
(A) The term "loan" includes a guarantee,
			 endorsement, and any other form of security.
(B) A loan is a contribution at the time it
			 is made and is a contribution to the extent that it remains unpaid. The
			 aggregate amount loaned to a candidate or committee by a contributor, when
			 added to other contributions from that individual to that candidate or
			 committee, shall not exceed the contribution limit for the primary or general
			 limit period in which they were received as
			 set forth in section
			 3517.102
			 of the Revised Code. A loan only counts toward the contribution limits of the
			 limit period in which it was received. A loan, to the extent that it is repaid,
			 is no longer a contribution.
(C) If
			 an individual, political action committee, political contributing entity,
			 political party, campaign committee, or legislative campaign fund makes a loan
			 to any candidate or committee, such loan shall be subject to the limitations
			 set forth in section
			 3517.102
			 of the Revised Code. Repayment of the principal amount of such loan to any
			 committee, fund, or party shall not be a contribution by the debtor to the
			 lender, committee, fund, or party. The payment of interest to such committee,
			 fund or party by the debtor shall be a contribution only to the extent that the
			 interest paid exceeds a commercially reasonable rate prevailing at the time the
			 loan is made.
(D) Except as
			 otherwise provided in divisions (I)(6) and (J)(5) of section
			 3517.992
			 of the Revised Code, a loan that exceeds the contribution limits of section
			 3517.102
			 of the Revised Code shall be unlawful whether or not it is repaid.
(E) Except as provided in this rule, a loan
			 is a contribution by each endorser or guarantor. Each endorser or guarantor
			 shall be deemed to have contributed that portion of the total amount of the
			 loan for which he or she agreed to be liable in a written agreement. Any
			 reduction in the unpaid balance of the loan shall reduce proportionately the
			 amount endorsed or guaranteed by each endorser or guarantor in such written
			 agreement. In the event that such agreement does not stipulate the portion of
			 the loan for which each endorser or guarantor is liable, the loan shall be
			 considered a loan by each endorser or guarantor in the same proportion to the
			 unpaid balance that each endorser or guarantor bears to the total number of
			 endorsers or guarantors. If a third party other than the endorser or guarantor
			 repays all or part of any loan the amount of any or all payments made by that
			 third party constitutes a contribution by that third party.
(F) A candidate may obtain a loan on which
			 his or her spouse's signature is required when joint assets are used as
			 collateral or security for the loan. The spouse shall not be considered a
			 contributor to the candidate's campaign if the value of the candidate's share
			 of the property used as collateral equals or exceeds the amount of the loan
			 which is used for the candidate's campaign.
(G) A loan obtained by a candidate's spouse,
			 parents, children, sons-in-law, daughters-in-law, brothers, sisters,
			 grandparents, mothers-in-law, fathers-in-law, brothers-in-law, sisters-in-law,
			 or grandparents by marriage for the benefit of a statewide, senate, or house candidate's campaign committee shall be
			 considered a contribution from the person or persons who guaranteed the loan
			 and thereby subject to any limitations of section
			 3517.102
			 of the Revised Code.
(H) A loan of
			 money by a state bank, a federally chartered depository institution (including
			 a national bank), or a state chartered
			 depository institution whose deposits and accounts are insured is not a
			 contribution by the lending institution if such loan is made in accordance with
			 applicable banking laws and regulations and is made in the ordinary course of
			 business. A loan will be deemed to be made in the ordinary course of business
			 if it:
(1) Bears the usual and customary
			 interest rate of the lending institution for the category of loan
			 involved;
(2) Is made on a basis
			 which assures repayment;
(3) Is
			 evidenced by a written instrument; and
(4) Is subject to a due date or amortization
			 schedule.