Loan Guidelines
What is a loan?
A loan is when money is borrowed by a political entity (a registered political party, a candidate, a leadership contestant, or a constituency association) to finance their campaign.
Are there any limitations?
- The maximum term of a loan (including a refinanced loan) is 24 months.
- An individual or organization shall not provide loans to a political entity in excess of $3,000 in a calendar year.
- Candidates cannot lend to any person or organization money that has been raised for the purposes of an election.
- A constituency association may only lend money to its nominated candidate or its registered political party.
Note: Limitations 1 and 2 above are not applicable to loans made by financial institutions, registered political parties, or constituency associations.
What are the requirements for loan agreements?
- Must be in writing.
- Must include:
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- the amount
- the annual rate of interest
- the term
- the name and address and signature of the lender
- the name and address of any guarantor
- the details of any agreements made to assign any portion of the election expense reimbursement
- the signature of the borrower authorized to act on behalf of the entity
- Must be filed with the Chief Electoral Officer immediately after it is made.
Note: Line of credit or overdraft agreement must also be filed with the Chief Electoral Officer.
When is a loan considered a deemed contribution?
- A loan that is uncollected within six months after becoming due and the creditor has not commenced legal collection proceedings.
- The difference between the prime interest rate and the interest rate of the loan.
- A payment on the loan is made by someone other than the debtor.
Note: No tax receipts shall be issued for deemed contributions.
Which sections in the EFA relate to loans?
Sections 41.1(1) to 47 relate to loans.
Public Disclosure
If a loan is equal to or more than $250, the Chief Electoral Officer will publish a notice that identifies the debtor and the loan agreement. Financial institutions are exempt from this disclosure.