§ 163-278.15. No acceptance of contributions made by corporations, foreign and domestic, or other prohibited sources.
§ 163‑278.15. Noacceptance of contributions made by corporations, foreign and domestic, orother prohibited sources.
(a) No candidate,political committee, political party, or treasurer shall accept anycontribution made by any corporation, foreign or domestic, regardless ofwhether such corporation does business in the State of North Carolina, or madeby any business entity, labor union, professional association, or insurancecompany. This section does not apply with regard to entities permitted to make contributionsby G.S. 163‑278.19(f).
(b) A candidate orpolitical committee may accept a contribution knowing that the contribution isthe proceeds of a loan made in the ordinary course of business by a financialinstitution if all of the following conditions are met:
(1) The full amount ofthe loan is secured by collateral placed, or by guaranties given, by one ormore individuals or entities who are not prohibited by this Article from makingcontributions to the candidate or political committee. The value of thecollateral posted by each individual or entity, or the amount of each guaranty,may not exceed the contribution limitations applicable under this Article toeach individual or entity. The value of collateral posted may exceed thecontribution limitations applicable under this Article in cases where theamount of the loan secured by that collateral does not exceed the contributionlimitations applicable to the individual or entity.
(2) During the time thatany loan remains outstanding and unpaid, then the value of any collateralposted, or the amount of each guaranty, for that loan shall be considered to bea contribution by the individual or entity securing the loan. If the loan, orany portion of the loan, is repaid to the financial institution by thecandidate or political committee to whom the loan was made during thecontribution limitation period for the same "election" as defined inG.S. 163‑278.13(d) in which the loan was made, the individual or entitysecuring the loan shall be eligible to further contribute to that candidate orpolitical committee up to the amount of the repayment. If multiple individualsor entities secured the loan that is repaid to the financial institution by thecandidate or political committee, then the amount repaid shall be proratedamongst the multiple individuals or entities.
(3) If the loan is tothe candidate or political committee, only the candidate, the candidate'sspouse, or the political committee to whom the loan was made may repay theloan.
The State Board of Electionsshall develop forms for reporting the proceeds of loans in a full and accuratemanner. (1973,c. 1272, s. 1; 1999‑31, s. 5(e); 2006‑195, s. 6; 2006‑262, s.4.1(c).)