Campaign Loans

The Public Disclosure Commission enforces the campaign disclosure provisions and contribution limits found in RCW 42.17A and Title 390 WAC, including certain laws and rules concerning campaign-related loans made to candidates and political committees under its jurisdiction This interpretation is intended to provide guidance by informing the public, candidates, and political committees of the Commission's interpretation of the record-keeping and reporting requirements for the receipt, repayment, and forgiveness of campaign-related loans, and the relationship between loans and applicable contribution limits. The law and rules are always controlling in the event of any conflict with, or omission in, the interpretation.

Receipt of a Loan

1. A loan is a contribution and thus is subject to the applicable candidate contribution limits found in RCW 42.17A.405 & .410, unless it is made by a commercial lender, in the regular course of business, and on the same terms ordinarily available to the public. RCW 42.17A.465; WAC 390-16-226.
2. A commercial loan to a candidate's authorized committee or a committee controlled by a candidate is presumed to be guaranteed by the candidate, absent clear, cogent and convincing evidence proving otherwise. A commercial loan guaranteed by the candidate is a loan of the candidate's personal funds. WAC 390-16-226.
3. To be eligible for loan repayment, monetary and in-kind loans must be:
   • recorded in a written loan agreement executed when the loan is made; and
   • timely and accurately reported as a loan by the recipient. WAC 390-16-226.

In the event a loan is mistakenly reported as a contribution for which repayment is not expected, the recipient must timely amend the report to disclose when the loan was initially made,and include an executed written loan agreement in the candidate or political committee records/books of account.

Terms

The lender and recipient are responsible for negotiating mutually agreeable, lawful loan terms. The terms may be renegotiated during the life of the loan upon the mutual consent of the parties.

The due date may be a date certain or a flexible date, such as "when funds are available or "after the election is held."

All terms agreed to, including changes negotiated during the life of the loan, must be set out in the written loan agreement or a written amendment to the agreement, and included in the candidate or political committee records/books or account.

Loan Agreement

In-kind loans: A receipt for out-of-pocket expenditures may be substituted for the loan agreement, provided it contains the required information such as the date the expenditure was made, the amount to be repaid, the terms of repayment, and is signed by the campaign treasurer and person expecting repayment. See PDC Interpretation 12-01.

Monetary loans: A written loan agreement is required for all monetary loans. RCW 42.17A.465. The loan agreement must be executed by the lender and the treasurer. The Commission recommends the following format: