[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR100.83]

[Page 66-67]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 100_SCOPE AND DEFINITIONS (2 U.S.C. 431)--Table of Contents
 
                  Subpart C_Exceptions to Contributions
 
Sec.  100.83  Brokerage loans and lines of credit to candidates.

    (a) General provisions. Any loan of money derived from an advance on 
a candidate's brokerage account, credit card, home equity line of 
credit, or other line of credit available to the candidate, including an 
overdraft made on a personal checking or savings account of a candidate, 
provided that:
    (1) Such loan is made in accordance with applicable law and under 
commercially reasonable terms; and
    (2) The person making such loan makes loans derived from an advance 
on a candidate's brokerage account, credit card, home equity line of 
credit, or other line of credit in the normal course of the person's 
business.
    (b) Endorsers and guarantors. Each endorser, guarantor, or co-signer 
shall be deemed to have contributed that portion of the total amount of 
the loan derived from an advance on a candidate's brokerage account, 
credit card, home equity line of credit, or other line of credit 
available to the candidate, for which he or she agreed to be liable in a 
written agreement, including a loan used for the candidate's routine 
living expenses. Any reduction in the unpaid balance of the loan, 
advance, or line of credit 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, advance, or line of credit for which each endorser, 
guarantor, or co-signer is liable, the loan shall be considered a 
contribution by each endorser or guarantor in the same proportion to the 
unpaid balance that each endorser, guarantor, or co-signer bears to the 
total number of endorsers or guarantors. However, if the spouse of the 
candidate is the endorser, guarantor, or co-signer, the spouse shall not 
be deemed to make a contribution if:
    (1) For a secured loan, the value of the candidate's share of the 
property used as collateral equals or exceeds the amount of the loan 
that is used for the candidate's campaign; or
    (2) For an unsecured loan, the amount of the loan used for in 
connection with the candidate's campaign does not exceed one-half of the 
available credit extended by the unsecured loan.
    (c) Routine living expenses. (1) A loan derived from an advance on a 
candidate's brokerage account, credit card, home equity line of credit, 
or other line of credit available to the candidate, that is used by the 
candidate solely for routine living expenses, as described in 11 CFR 
100.153, does not need to be reported under 11 CFR part 104 provided 
that the loan, advance, or line of credit is repaid exclusively from the 
personal funds of the candidate or payments that would have been made 
irrespective of the candidacy pursuant to 11 CFR 113.1(g)(6).
    (2) Any repayment, in part or in whole, of the loan, advance, or 
line of credit described in paragraph (c)(1) of this section by the 
candidate's authorized committee constitutes the personal use of 
campaign funds and is prohibited by 11 CFR 113.2.

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    (3) Any repayment or forgiveness, in part or in whole, of the loan, 
advance, or line of credit described in paragraph (c)(1) of this section 
by a third party (other than a third party whose payments are 
permissible under 11 CFR 113.1(g)(6)) or the lending institution is a 
contribution, subject to the limitations and prohibitions of 11 CFR 
parts 110 and 114, and shall be reported under 11 CFR part 104.
    (4) Notwithstanding paragraph (c)(1) of this section, the portion of 
any loan or advance from a candidate's brokerage account, credit card 
account, home equity line of credit, or other line of credit that is 
used for the purpose of influencing the candidate's election for Federal 
office shall be reported under 11 CFR part 104.
    (d) Repayment. The candidate's authorized committee may repay a loan 
from the candidate that is derived from an advance on a candidate's 
brokerage account, credit card, home equity line of credit, or other 
line of credit available to the candidate, directly to the candidate or 
the original lender. The amount of the repayment shall not exceed the 
amount of the principal used for the purpose of influencing the 
candidate's election for Federal office and interest that has accrued on 
that principal.
    (e) Reporting. Loans derived from an advance on a candidate's 
brokerage account, credit card, home equity line of credit, or other 
line of credit available to the candidate shall be reported by the 
candidate's principal campaign committee in accordance with 11 CFR part 
104.