Site MenuTranscript of Video on Loans – Registered Associations
As you know, loans can be used by political entities as a source of financing. The Getting a Loan module introduces loans in general terms. This module explains loan administration and reporting for registered associations.
The financial agent or authorized district agents can obtain and pay loans on the association’s behalf. A registered association can borrow money from an individual, a financial institution, the registered party, or another registered association of the party.
Remember, loans or loan guarantees from individuals are subject to a limit. This means adding up all their contributions, the balance of unpaid loans, and outstanding loan guarantees made in that calendar year. The total cannot go over the individual’s contribution limit at any time.
A written loan agreement must accompany all loans.
In its annual financial return, the registered association has to report all loans that were on its books during the fiscal year, even if the loans were repaid in full or were previously reported. The return must include details about:
- new loans obtained in the last fiscal period,
- unpaid loans as of December 31, the end of the fiscal year,
- loans paid in full since the last fiscal period,
- loans that remain unpaid 18 or 36 months after their due date, and finally
- unpaid candidate loans assumed by the association.
To learn more, please take a look at our other modules and resources.