Understanding Extension of Credit [Federal Elections]: A Comprehensive Guide
Definition & Meaning
The term "extension of credit" in the context of federal elections refers to any agreement or situation where a political committee is allowed to defer payment for goods or services received. This can include various arrangements, such as:
- Agreements that allow payment to be made after the goods or services are provided.
- Extensions of the payment deadline beyond the original due date.
- Instances where the political committee fails to make payment by the agreed-upon date.
Legal Use & context
This term is primarily used in the realm of campaign finance law, which governs how political committees manage their finances, including debts. It is crucial for ensuring transparency and compliance with federal regulations. Political committees must accurately report any extensions of credit as part of their financial disclosures. Users may find relevant forms and templates on platforms like US Legal Forms to assist in managing these obligations.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A political committee hires a marketing firm to create campaign materials and agrees to pay the full amount after the election, rather than upfront. This constitutes an extension of credit.
Example 2: A committee has a contract with a vendor that stipulates payment is due within 30 days of receipt of services, but the committee negotiates an additional 15 days to settle the bill. This is also an extension of credit.
Relevant laws & statutes
Key regulations governing extensions of credit for political committees can be found in:
- 11 CFR 116.1 - Debts Owed by Candidates and Political Committees