On August 29, 2000, Brian Le Clair, on behalf of the (Eric) Lipman for State Representative Committee ("Complainant") filed a complaint with the Campaign Finance and Public Disclosure Board ("Board") alleging that the Citizens for Mike Redmond Committee ("Redmond Committee"), accepted a loan in excess of the applicable limit under Minn. Stat. 10A.27, subd. 8.

The Complainant states that it seems unlikely that a bank would lend $10,000 without requiring security, or that ten or more co-guarantors joined with the candidate to pledge to repay the loan. The evidence submitted by the Complainant consists of a copy of Schedule A2-LP of the Redmond Committee’s Report of Receipts and Expenditures covering January 1, through August 21, 2000, filed with the Board on August 31, 2000.

The Redmond Committee provided a letter from Dean Anderson, vice president of the Lake Elmo Bank where the loan was obtained, and a copy of the loan agreement. Mr. Anderson states that only $4,500 of the loan is guaranteed by Mike Redmond, and that the balance of the loan is unguaranteed. The copy of the loan agreement between the Redmond Committee and the bank support this information.

This Board considered the matter in executive session on September 21, 2000. No one appeared on behalf of either party.

1. The Redmond Committee is a principal campaign committee registered with the Board.

2. Candidate Mike Redmond filed a Public Subsidy Agreement on April 7, 2000, agreeing to abide by the statutory spending limits and to limit his personal contributions to his own campaign.

3. Minn. Stat. 10A.27, subd. 8, prohibits a candidate from accepting a loan from a financial institution for which the financial institution may hold an endorser of the loan liable to pay an amount in excess of the amount that the endorser may contribute to that candidate.

4. On July 28, 2000, the Redmond Committee entered into a loan agreement with the Lake Elmo Bank and obtained a $10,000 bank loan. Mike Redmond is the guarantor for $4,500 of the loan. The balance of the loan, $5,500, is unsecured.

 

Based on the above Statement of the Evidence, the Board makes the following:

FINDINGS CONCERNING PROBABLE CAUSE

There is no probable cause to believe that the Citizens for Mike Redmond Committee violated Minn. Stat. 10A.27, subd. 8, when it obtained a $10,000 bank loan from the Lake Elmo Bank on July 28, 2000.

The complaint regarding the Citizens for Mike Redmond Committee is dismissed and the record in this matter is hereby entered into the public record in accordance with Minn. Stat. 10A.02, subd. 11.

Dated:_______________________ __________________________________

Will Fluegel, chair

Campaign Finance and Public Disclosure Board