1.30.044 Loan to city candidates and their controlled committees.
A. A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this chapter.
B. The proceeds of a loan made to a candidate for city council or mayor by a commercial lending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this chapter if the loan is made directly to the candidate. The guarantors of such a loan shall remain subject to the contribution limits of this chapter.
C. Extensions of credit (other than loans pursuant to subsection B) for a period of more than thirty days are subject to the contribution limitations of this chapter.
1. An "extension of credit" means the provision of goods or services for which payment in full is not received. An extension of credit is deemed to begin by the earlier of two dates:
a. Fifteen days after the date specified on the invoice for payment; or
b. Forty-five days from the date the goods or services were delivered.
2. "Payment in full" means payment of not less than fair market value for the goods or services provided.
3. An extension of credit for a period of more than thirty days is a contribution subject to the contribution limitations of the chapter, except as provided in paragraph 5, d, e, f and g of this subsection.
4. If a candidate or a candidate’s controlled committee has an extension of credit for more than thirty days outstanding with a provider or vendor of goods or services, any additional credit extended to the candidate or the candidate’s controlled committee by the same provider or vendor of goods or services shall be a contribution to the candidate or the candidate’s controlled committee from the person subject to all of the contribution limitations of the Act.
5. If all of the following criteria are satisfied by a provider or vendor of goods or services, it shall (i) be a complete defense for the provider or vendor of the goods or services in any enforcement action initiated by the city, and (ii) relieve the provider or vendor of the goods or services of any reporting requirements of this title;
a. The credit arrangement was recorded in a written instrument;
b. It is a primary business of the provider or vendor of goods or services to provide similar goods or services;
c. The provider or vendor of goods or services provided the goods or services in the ordinary course of business and on the same terms and conditions offered to customers generally;
d. The provider or vendor of goods or services did not have actual knowledge that the candidate or committee would not be able to pay within the time limit specified in subsection (a);
e. The provider or vendor of goods or services made reasonable efforts to collect the full amount of the payment owed within one hundred twenty days of the date specified in subsection (a);
f. The provider or vendor of goods or services entered into the agreement with the intent that the candidate or committee would be required to pay within the time limit specified in subsection (a); and,
g. The provider or vendor of goods or services did not extend any additional credit to the candidate or the candidate’s controlled committee when the candidate or the candidate’s controlled committee already had an extension of credit for more than thirty days outstanding with the same provider or vendor of goods or services as provided in paragraph 5, d.
D. This section shall apply only to loans and extensions of credit used or intended for use for campaign purposes or which are otherwise connected with the holding of public office.
(Ord. 2198 NCS §1 (part), 2004; Ord. 2156 NCS §1 (part), 2003.)