Accepting Loans
What is a loan?
The Ethics Ordinance defines a "loan"
as the temporary transfer of money or goods for the personal use of an individual
with the expectation that the money or goods will be returned.
I am a High Level
Filer. Can I accept a loan?
Your acceptance of a loan depends on the amount of the loan and the source of
the loan. A High Level Filer may not accept a loan that exceeds $250 from a
City Official, City employee, or a restricted
source. Additionally, an elected High Level Filer may not accept a loan
that exceeds $500 unless the loan is made in writing and clearly states the
terms of the loan; the loan document includes the names of the parties to the
loan agreement, as well as the date, amount, interest rate, and term of the
loan; and the loan document includes the date or dates when payments are due
and the amount of the payments.
What about a loan from my spouse?
The Ethics Ordinance does not prohibit or restrict a High Level Filer or a Local
Code Filer from obtaining a loan from a spouse, child, parent, grandparent,
grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew,
niece, aunt, uncle, or first cousin or the spouse of any such person, unless
the individual making the loan is acting as an agent or intermediary for someone
not included in this list.
What about a loan from a bank?
The Ethics Ordinance does not prohibit or restrict any loans obtained by a High
Level Filer or Local Code Filer from banks or other financial institutions,
and retail or credit card transactions, made in the regular course of business
on terms available to members of the public. Keep in mind that such loans in
the amount of $10,000 or more, and loans not on your principal place of residence,
may be reportable on the your Statement of Economic
Interests.
I still have questions. How do I get help?
The Ethics Commission is available to provide telephonic or written advice regarding these matters.
