(a) No candidate, political committee, political party, affiliated party committee, or treasurer shall accept any contribution made by any corporation, foreign or domestic, regardless of whether such corporation does business in the State of North Carolina, or made by any business entity, labor union, professional association, or insurance company. This section does not apply with regard to entities permitted to make contributions by N.C. Gen. Stat. § 163-278.19(h).

(b) A candidate or political committee may accept a contribution knowing that the contribution is the proceeds of a loan made in the ordinary course of business by a financial institution if all of the following conditions are met:

(1) The full amount of the loan is secured by collateral placed, or by guaranties given, by one or more individuals or entities who are not prohibited by this Article from making contributions to the candidate or political committee. The value of the collateral posted by each individual or entity, or the amount of each guaranty, may not exceed the contribution limitations applicable under this Article to each individual or entity. The value of collateral posted may exceed the contribution limitations applicable under this Article in cases where the amount of the loan secured by that collateral does not exceed the contribution limitations applicable to the individual or entity.

Terms Used In North Carolina General Statutes 163-278.15

  • affiliated party committee: means a General Assembly affiliated party committee as established by N. See North Carolina General Statutes 163-278.6
  • board: means the State Board of Elections with respect to all candidates for State, legislative, and judicial offices and the county board of elections with respect to all candidates for county and municipal offices. See North Carolina General Statutes 163-278.6
  • business entity: means any partnership, joint venture, joint-stock company, company, firm, or any commercial or industrial establishment or enterprise. See North Carolina General Statutes 163-278.6
  • candidate: means any individual who, with respect to a public office listed in N. See North Carolina General Statutes 163-278.6
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • corporation: means any corporation established under either domestic or foreign charter, and includes a corporate subsidiary and any business entity in which a corporation participates or is a stockholder, a partner or a joint venturer. See North Carolina General Statutes 163-278.6
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • individual: means a single individual or more than one individual. See North Carolina General Statutes 163-278.6
  • insurance company: means any person whose business is making or underwriting contracts of insurance, and includes mutual insurance companies, stock insurance companies, and fraternal beneficiary associations. See North Carolina General Statutes 163-278.6
  • labor union: means any union, organization, combination or association of employees or workmen formed for the purposes of securing by united action favorable wages, improved labor conditions, better hours of labor or work-related benefits, or for handling, processing or righting grievances by employees against their employers, or for representing employees collectively or individually in dealings with their employers. See North Carolina General Statutes 163-278.6
  • political committee: includes the campaign of a candidate who serves as his or her own treasurer. See North Carolina General Statutes 163-278.6
  • political party: means any political party organized or operating in this State, whether or not that party is recognized under the provisions of N. See North Carolina General Statutes 163-278.6
  • professional association: means any trade association, group, organization, association, or collection of persons or individuals formed for the purposes of advancing, representing, improving, furthering or preserving the interests of persons or individuals having a common vocation, profession, calling, occupation, employment, or training. See North Carolina General Statutes 163-278.6
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
  • treasurer: means an individual appointed by a candidate, political committee, or referendum committee as provided in N. See North Carolina General Statutes 163-278.6

(2) During the time that any loan remains outstanding and unpaid, then the value of any collateral posted, or the amount of each guaranty, for that loan shall be considered to be a contribution by the individual or entity securing the loan. If the loan, or any portion of the loan, is repaid to the financial institution by the candidate or political committee to whom the loan was made during the contribution limitation period for the same “election” as defined in N.C. Gen. Stat. § 163-278.13(e) in which the loan was made, the individual or entity securing the loan shall be eligible to further contribute to that candidate or political committee up to the amount of the repayment. If multiple individuals or entities secured the loan that is repaid to the financial institution by the candidate or political committee, then the amount repaid shall be prorated amongst the multiple individuals or entities.

(3) If the loan is to the candidate or political committee, only the candidate, the candidate’s spouse, or the political committee to whom the loan was made may repay the loan.

The State Board of Elections shall develop forms for reporting the proceeds of loans in a full and accurate manner. (1973, c. 1272, s. 1; 1999-31, s. 5(e); 2006-195, s. 6; 2006-262, s. 4.1(c); 2015-258, s. 3(l); 2017-6, s. 3; 2018-146, s. 3.1(a), (b).)

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