By Kent Cooper, Roll Call, May 13, 2014
In an unusual transaction, a financial institution has given an unsecured $230,150 loan to a Super PAC to use for making independent expenditures in the 2014 primary elections.
The Mississippi Conservatives, a Republican-oriented Super PAC supporting Sen. Thad Cochran, R-Miss., in the June 3rd Republican primary, reported it had receipts of $717,993 during the first quarter of 2014, including a $230,150 loan from Trustmark Bank in Jackson, Mississippi. Trustmark (NASDAQ:TRMK) is a publicly traded corporation.
Harry Walker, a regional President of the bank signed the agreement on January 29, 2014. The loan is due on June 3, 2014, and the interest rate (APR) is 2.86%. The forms indicate there are no other parties secondarily liable for the debt incurred, and there is no pledged collateral for the loan.
The most unusual aspect of the loan is there are no future contributions or future receipts pledged as collateral for the loan. This may be the first reported unsecured bank loan to a Super PAC, especially to one that was only two weeks old. With no committee track record, and no collateral, it is hard to understand how this loan could have been made in the normal course of business. The committee has only repaid $20,000 of the loan.
Individual donors to the Super PAC include Joe Sanderson (chairman and CEO, Sanderson Farms, MS) $100,000; and Richard Wax (the Wax Company, MS) $50,000.
Donors giving $25,000 each include James Barksdale (President, Barksdale Management Corp., MS); Bollinger Shipyards (LA); Crest Investment Co., TX); Robert Day (founder, TCW Group, CA); Ergon (MS); Howard Leach (President, Leach Capital, NY); W.D. Mounger (oil and gas investor, MS); Donna Roberts (retired, MS); and Warren Stephens (President, Stephens Inc, AR).
Other selected donors include Haley Barbour (founding partner, BGR Group, MS) $10,000; and Larry Mizel (executive, MDC Holdings, CO) $10,000; among others.
During the quarter the committee spent $591,631 on independent expenditures, all opposing Republican Christopher McDaniel, R-Miss.
**UPDATE** According to the Daily Beast this afternoon, both the bank and the Super PAC have denied the report, citing “flawed FEC reporting.” But who knows if we can believe that or not, given the past dishonest actions of the Mississippi (Non) Conservatives Super PAC. But it is interesting to note how quiet the PAC has been as of late. To have so much cash, they don’t seem to be using very much of it to support Thad Cochran, or to be more precise, to attack Chris McDaniel. Perhaps they see the handwriting on the wall. When dealing with loans and payday loan regulations it is better to go with reputed companies and do your research Purplepayday.loan is a good place to start the search, and make sure to contact your broker/bank to see if there are any options already available to you.