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Article 4.6. Loans To Public Officials of California Government Code >> Title 9. >> Chapter 7. >> Article 4.6.
(a) No elected officer of a state or local government agency
shall, from the date of his or her election to office through the
date that he or she vacates office, receive a personal loan from any
officer, employee, member, or consultant of the state or local
government agency in which the elected officer holds office or over
which the elected officer's agency has direction and control.
(b) No public official who is required to file a statement of economic interests pursuant to Section 87200 and no public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(c) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status.
(d) No public official who is required to file a statement of economic interests pursuant to Section 87200 and no public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(e) This section shall not apply to the following:
(1) Loans made to the campaign committee of an elected officer or candidate for elective office.
(2) Loans made by a public official's 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 persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
(3) Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars ($250) at any given time.
(4) Loans made, or offered in writing, before the operative date of this section.
(b) No public official who is required to file a statement of economic interests pursuant to Section 87200 and no public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(c) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status.
(d) No public official who is required to file a statement of economic interests pursuant to Section 87200 and no public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(e) This section shall not apply to the following:
(1) Loans made to the campaign committee of an elected officer or candidate for elective office.
(2) Loans made by a public official's 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 persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
(3) Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars ($250) at any given time.
(4) Loans made, or offered in writing, before the operative date of this section.
(a) Except as set forth in subdivision (b), no elected
officer of a state or local government agency shall, from the date of
his or her election to office through the date he or she vacates
office, receive a personal loan of five hundred dollars ($500) or
more, except when the loan is in writing and clearly states the terms
of the loan, including the parties to the loan agreement, date of
the loan, amount of the loan, term of the loan, date or dates when
payments shall be due on the loan and the amount of the payments, and
the rate of interest paid on the loan.
(b) This section shall not apply to the following types of loans:
(1) Loans made to the campaign committee of the elected officer.
(2) Loans made to the elected officer by his or her 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, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
(3) Loans made, or offered in writing, before the operative date of this section.
(c) Nothing in this section shall exempt any person from any other provisions of this title.
(b) This section shall not apply to the following types of loans:
(1) Loans made to the campaign committee of the elected officer.
(2) Loans made to the elected officer by his or her 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, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
(3) Loans made, or offered in writing, before the operative date of this section.
(c) Nothing in this section shall exempt any person from any other provisions of this title.
(a) Except as set forth in subdivision (b), a personal loan
shall become a gift to the debtor for the purposes of this title in
the following circumstances:
(1) If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.
(2) If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
(A) The date the loan was made.
(B) The date the last payment of one hundred dollars ($100) or more was made on the loan.
(C) The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months.
(b) This section shall not apply to the following types of loans:
(1) A loan made to the campaign committee of an elected officer or a candidate for elective office.
(2) A loan that would otherwise not be a gift as defined in this title.
(3) A loan that would otherwise be a gift as set forth under paragraph (a), but on which the creditor has taken reasonable action to collect the balance due.
(4) A loan that would otherwise be a gift as set forth under paragraph (a), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
(5) A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(c) Nothing in this section shall exempt any person from any other provisions of this title.
(1) If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.
(2) If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
(A) The date the loan was made.
(B) The date the last payment of one hundred dollars ($100) or more was made on the loan.
(C) The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months.
(b) This section shall not apply to the following types of loans:
(1) A loan made to the campaign committee of an elected officer or a candidate for elective office.
(2) A loan that would otherwise not be a gift as defined in this title.
(3) A loan that would otherwise be a gift as set forth under paragraph (a), but on which the creditor has taken reasonable action to collect the balance due.
(4) A loan that would otherwise be a gift as set forth under paragraph (a), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
(5) A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(c) Nothing in this section shall exempt any person from any other provisions of this title.
