[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR116.3]

[Page 233]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 116_DEBTS OWED BY CANDIDATES AND POLITICAL COMMITTEES--Table of Contents
 
Sec.  116.3  Extensions of credit by commercial vendors.

    (a) Unincorporated vendor. A commercial vendor that is not a 
corporation may extend credit to a candidate, a political committee or 
another person on behalf of a candidate or political committee. An 
extension of credit will not be considered a contribution to the 
candidate or political committee provided that the credit is extended in 
the ordinary course of the commercial vendor's business and the terms 
are substantially similar to extensions of credit to nonpolitical 
debtors that are of similar risk and size of obligation.
    (b) Incorporated vendor. A corporation in its capacity as a 
commercial vendor may extend credit to a candidate, a political 
committee or another person on behalf of a candidate or political 
committee provided that the credit is extended in the ordinary course of 
the corporation's business and the terms are substantially similar to 
extensions of credit to nonpolitical debtors that are of similar risk 
and size of obligation.
    (c) Ordinary course of business. In determining whether credit was 
extended in the ordinary course of business, the Commission will 
consider--
    (1) Whether the commercial vendor followed its established 
procedures and its past practice in approving the extension of credit;
    (2) Whether the commercial vendor received prompt payment in full if 
it previously extended credit to the same candidate or political 
committee; and
    (3) Whether the extension of credit conformed to the usual and 
normal practice in the commercial vendor's trade or industry.
    (d) Extension of credit by regulated industries. The Commission may 
rely on the regulations prescribed by the Federal Communications 
Commission, the Interstate Commerce Commission, and the Department of 
Transportation on behalf of the Civil Aeronautics Board, issued pursuant 
to 2 U.S.C. 451 and any other regulations prescribed by other Federal 
agencies to determine whether extensions of credit by the entities 
regulated by those Federal agencies were made in the ordinary course of 
business.