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Handling PAC loans, debts and advances

Special rules apply to loans made or received by the PAC, debts incurred by a PAC, and advances of personal funds made on behalf of the PAC.


A loan is considered a contribution to the extent of the outstanding balance of the loan. (Bank loans, however, are not considered contributions if made in the ordinary course of business and on a basis that assures repayment.)

An unpaid loan, when added to other contributions from the same contributor, must not exceed the contribution limit. Repayments made on the loan reduce the amount of the contribution. Once repaid in full, a loan no longer counts against the contributor’s contribution limit. However, a loan exceeding the limit is unlawful even if it is repaid in full.

Besides being reported as a contribution, a loan must be continuously reported until it is fully repaid.


Debts and obligations must be reported continuously until repaid.

Unpaid bills and written contracts or agreements to make expenditures are considered debts.

Debts and obligations (other than loans) are reported as debts owed to or by the committee on Schedule D. A debt of $500 or less is reportable once it has been outstanding 60 days from the date incurred (the date of the transaction, not the date the bill is received). A debt exceeding $500 must be reported in the report covering the date on which the debt was incurred.


When an individual uses his or her personal funds (or personal credit) to pay for a committee expense, that payment is generally an in-kind contribution from that individual. If an individual is later reimbursed by the committee, special reporting rules apply.