[Congressional Record Volume 145, Number 9 (Wednesday, January 20, 1999)]
[Extensions of Remarks]
[Page E82]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              BANNING UNSECURED LOANS IN FEDERAL CAMPAIGNS

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                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                       Tuesday, January 19, 1999

  Mrs. MINK of Hawaii. Mr. Speaker, we must restore accountability to 
our elections. One way we can do this is to close a loophole where 
candidates may obtain unlimited, unsecured loans from banks to finance 
their campaigns. Banks are able to bankroll their chosen candidates by 
obtaining a mere signature on a loan form without obtaining security 
for repayment, as is customary in their normal course of business. In 
effect, candidates favored by a bank and its officers are given an 
unfair advantage.
  The legislation I have introduced today puts an end to that. Under 
this legislation, banks will no longer be able to circumvent the 
current prohibition against making direct contributions to candidates.
  Specifically, this legislation: prohibits all federal candidates from 
receiving an unsecured loan; requires repayment of any existing 
unsecured loan within 90 days of this bill's enactment; and prohibits 
candidates who have such unsecured loans from accepting personal funds 
from a board member or officer of the bank holding the loan.
  I urge my colleagues to join me in closing this loophole. Lets not 
allow banks to bankroll any election.This ability of banks, using 
depositors' money to advance moneys to a chosen candidate is wrong and 
invites corruption. I urge my colleagues to co-sponsor my legislation 
that outlaws this practice.

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