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Code · CFR · Title 11 — Federal Elections · Part 116 — Debts Owed by Candidates and Political Committees · § 116.3

§ 116.3. Extensions of credit by commercial vendors.

323 words·~1 min read·/us/cfr/t11/s§ 116.3·

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(a)Unincorporated vendor. A commercial vendor that is not a corporation may extend credit to a candidate, a political committee or another person on behalf of a candidate or political committee. An extension of credit will not be considered a contribution to the candidate or political committee provided that the credit is extended in the ordinary course of the commercial vendor's business and the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation.
(b)Incorporated vendor. A corporation in its capacity as a commercial vendor may extend credit to a candidate, a political committee or another person on behalf of a candidate or political committee provided that the credit is extended in the ordinary course of the corporation's business and the terms are substantially similar to extensions of credit to nonpolitical debtors that are of similar risk and size of obligation.
(c)Ordinary course of business. In determining whether credit was extended in the ordinary course of business, the Commission will consider---
(1)Whether the commercial vendor followed its established procedures and its past practice in approving the extension of credit;
(2)Whether the commercial vendor received prompt payment in full if it previously extended credit to the same candidate or political committee; and
(3)Whether the extension of credit conformed to the usual and normal practice in the commercial vendor's trade or industry.
(d)Extension of credit by regulated industries. The Commission may rely on the regulations prescribed by the Federal Communications Commission, the Interstate Commerce Commission, and the Department of Transportation on behalf of the Civil Aeronautics Board, issued pursuant to 52 U.S.C. 30141 and any other regulations prescribed by other Federal agencies to determine whether extensions of credit by the entities regulated by those Federal agencies were made in the ordinary course of business. \[55 FR 26386, June 27, 1990, as amended at 79 FR 77849, Dec. 29, 2014\]
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