1. (a)

   1. (1) The transfer of a candidate’s own personal funds to his or her own campaign shall be reported as either a:

      1. (A) Loan from the candidate to his or her campaign; or
      2. (B) Contribution from the candidate to his or her own campaign.
   2. (2) In the event such funds are reported as a loan from the candidate to his or her campaign, campaign funds may be used to repay the candidate for the funds loaned by the candidate to his or her campaign.
   3. (3) In the event such funds are reported as a contribution from the candidate to his or her campaign, campaign funds may not be used to repay the candidate for his or her funds contributed by the candidate to his or her campaign.
2. (b) Any personal loan a financial institution makes to a candidate that is applied to a candidate’s campaign shall be reported as a loan from the candidate to his or her campaign.

3. (c) The candidate or someone acting on the candidate's behalf shall report the:

   1. (1) Name of the financial institution;
   2. (2) Amount of the loan; and
   3. (3) Name of the guarantor, if any. Example: On April 5, 1996, Candidate Jane receives a two thousand-dollar loan from Commercial Bank. She will use this loan to pay her campaign expenses. On her April report of contributions and expenditures, Candidate Jane will disclose that she received a two thousand-dollar loan from Commercial Bank on April 5, 1996, listing it as a contribution. She must also disclose Commercial Bank’s address and the guarantor’s name (if there was a guarantor).
4. (d) The execution of a guaranty of repayment shall not be deemed a campaign contribution by the guarantor, but actual repayment of the loan by the guarantor shall constitute a campaign contribution and be subject to the campaign contribution limit per contributor per election.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained the following footnotes: A footnote to 7 CAR § 3-135(b) cited "47 Arkansas Ethics Commission Opinion No. 92-EC-004". A footnote to 7 CAR § 3-135(c) cited "48 Ark. Code Ann. § 7-6-210".