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Political Financing Handbook for Nomination Contestants and Financial Agents (EC 20182) – December 2018

Note: This handbook is to be used for contests starting on or after December 21, 2018. For earlier contests, please use the 2016 version of the handbook.

12. Managing Unpaid Claims and Loans

This chapter explains the rules for administering the campaign's unpaid claims and loans at different times after the nomination contest. It covers the following topics:

  • Repaying claims and loans within 36 months
  • Repaying claims and loans after 36 months
  • Requesting authorization for a payment
  • Reporting unpaid claims and loans

Note: The usual deadline for paying claims and loans is 36 months after the selection date. But if the selection date falls within an election period or within 30 days before it, the deadline changes to 36 months after election day.

Repaying claims and loans within 36 months

Claims and loans should be paid within 36 months after the selection date (or election day—see note above). If a claim or loan remains unpaid from the time the original return is filed to 36 months after the selection date (or election day):

  • the financial agent does not require authorization from Elections Canada or a judge before paying it
  • after the final payment of the claim or loan, the financial agent has to file an updated Nomination Contestant's Campaign Return within 30 days of the payment
  • the updated return must indicate the source of funds used to pay the claim or loan

Repaying claims and loans after 36 months

If a claim or loan is still unpaid 36 months after the selection date (or election day—see note above):

  • the financial agent or nomination contestant has to seek authorization from Elections Canada or a judge before paying it
  • after the final payment of the claim or loan, the financial agent has to file an updated Nomination Contestant's Campaign Return within 30 days of the payment

Elections Canada may impose any terms or conditions it considers appropriate on the authorized payment.

Requesting authorization for a payment

The following persons may submit a written application to be paid or to pay a claim or loan later than 36 months after the selection date (or election day—see note above):

  • the claimant or lender
  • the financial agent
  • the nomination contestant

The application should be made using the Request for Authorization to Pay an Unpaid Claim or Loan form on the Elections Canada website.

The request should include the campaign's bank account statement, showing that the campaign has sufficient funds to make the payment.

Reporting unpaid claims and loans

The nomination contestant's campaign will have to provide different updates on the status of payments if the campaign has unpaid claims or loans after filing the original Nomination Contestant's Campaign Return.

For more information, see the Additional reporting table in Chapter 11, Reporting.