24. Is there a ban on political parties taking loans in relation to election campaigns?

Ineligible lenders and guarantors

373 (1) Except as permitted under this section, no person or entity shall

(a) make a loan to a registered party or a registered association;

(b) make a loan to a nomination contestant, a candidate or a leadership contestant in relation to the contestant’s or candidate’s campaign; or

(c) guarantee a loan referred to in paragraph (a) or (b).

Ineligible borrowers

(2) Except if the loan is permitted under this section, no registered agent of a registered party and no financial agent of a registered association shall borrow money on behalf of the party or association, and no official agent of a candidate and no financial agent of a nomination contestant or of a leadership contestant shall borrow money for the purposes of the candidate’s or contestant’s campaign.

Exception — financial institutions

(3) A financial institution as defined in section 2 of the Bank Act may in writing make a loan referred to in subsection (1) at a fair market rate of interest.

Exception — individuals

(4) An individual who is a Canadian citizen or is a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act may in writing make a loan referred to in subsection (1) or guarantee such a loan. However, the total of the following amounts shall not at any time exceed the individual’s relevant contribution limit set out in paragraphs 367(1)(a) to (d), subsection 367(5) and paragraphs 367(7)(a) and (b):

(a) the amounts of the individual’s contributions,

(b) the amounts of the individual’s loans made in the relevant contribution period, not including any amount that has been repaid in the calendar year in which the loan was made, and

(c) the amounts guaranteed by the individual in the relevant contribution period, not including any amount for which the individual has ceased to be liable in the calendar year in which the guarantee was given.

Exception — certain loans

(5) A loan may be made in writing

(a) by a registered party to a registered association of the party or a candidate endorsed by the party; or

(b) by a registered association to the registered party with which it is affiliated, another registered association of the party or a candidate endorsed by the party.

Exception — certain guarantees and suretyships

(6) A registered party or registered association may in writing guarantee a loan made in writing to a party, association or candidate to which it itself is permitted to make a loan under subsection (5).

Prohibition — making indirect loans

374 No individual shall make a loan to a registered party, a registered association, a nomination contestant, a candidate or a leadership contestant that is made possible by money, property or the services of any person or entity that was provided to that individual for that purpose.