Loan Validation

The loan validation process analyzes loan proceeds and loan payment data to identify violations of campaign finance limits and prohibited contributions. When a violation occurs, the system presents you with the option to correct the violation or save the contribution and correct the violation later. If you choose to correct the violation later, the system saves the violation as an audit issue. You can process the violation by performing the steps for Processing Audit Issues.

 

This Help topic contains the following sections:

 

Validate Loan Proceeds

Note: The system starts with step two for the following loans because there are no limitations to check against:

 

  • Non-Candidate loans.

  • Loans to a Candidate Committee from the Committee's own Candidate, and that Candidate has not accepted VSL.

 

  1. If this is a loan to a Candidate Committee from the Committee’s own Candidate, and that Candidate has accepted VSL, the system combines the loan with the Candidate’s own contributions and the contributions of the Candidate’s party and evaluates it against the limit for the political party committee Contributor type.

 

The system combines the following amounts into one total to determine if the loan violates the limit:

 

 

The resulting total is compared against the limit for the Political Party Committee Contributor type. If the total exceeds the limit, the system displays a warning message.

 

  1.  Check all other non-table driven warnings listed in the business rules.

Calculate Candidate Aggregate

The system calculates the Candidate aggregate amount and displays it on the Loan Entry/Update page when you enter or change the loan amount. For Candidates that contribute and/or loan to their own Committee, the Candidate's aggregate amount includes their contribution amounts and their unpaid loan balances.

 

If...

Then...

You are adding a loan...

  1. The system determines the election cycle begin and end dates based on the election cycle associated to the Candidate.

 

  1. The system locates the most recent contribution or loan record that is for this Candidate contributing or loaning to their own Committee, and that is within the current election cycle.

 

  1. The system totals the new loan amount and the aggregate amount from the contribution record found in step two. If no record was found in step two, this total will be just the new loan amount.

 

  1. The system displays the calculated total in the aggregate amount field.

You are updating a loan...

 

Note: The system recalculates and updates the aggregate amount on this specific record only and only if the loan amount has changed.

 

The system doesn't update aggregate amounts on updated contributions due to the possibility for overwriting an aggregate amount you may have previously entered manually. In cases where you manually updated an aggregate amount, you must manually update the aggregate amount from that point forward.

 

If the loan amount has changed, the system performs the following:

 

  1. Determines the adjusted aggregate amount for the current record by subtracting the old loan amount from the aggregate amount and then adding the new loan amount.

  

  1. Displays the calculated total in the aggregate amount field.

Update Aggregate After New Candidate Loan Payment

  1. The system locates the most recent contribution or loan record that is for this Candidate contributing or loaning to their own Committee. This record contains the Candidate's current aggregate amount and is the one the system will adjust.

 

  1. The system calculates the new aggregate amount by subtracting the principal payment amount (on the payment record you are entering) from the aggregate amount on the contribution record found in step one.

 

  1. The system updates the record found in step one with the resulting new aggregate amount.

Update Aggregate After an Update to Candidate Loan Payment

This procedure calculates and updates the Candidate’s current aggregate amount after you make an update to the principal payment amount on a loan payment record.

 

  1. The system locates the most recent contribution or loan record that is for this Candidate contributing or loaning to their own Committee. This record contains the Candidate's current aggregate amount and is the one the system will adjust.

 

  1. The system calculates the adjusted aggregate amount for the record found in step one by adding the old principal payment amount from the aggregate amount to the original aggregate amount on this record, then subtracting the new principal payment amount.

 

  1. The system updates the record found in step one with the resulting new aggregate amount.

 

See Also