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Terms Of Dole Loan To Gingrich
Below are the details of the agreement between House Speaker Newt Gingrich and former Senate Majority Leader Bob Dole for a $300,000 loan from Dole to Gingrich, as released by Gingrich's office. The speaker will use the money to pay his ethics violations penalty.
Terms for loan agreement between Robert Dole (lender) and Newt Gingrich (borrower).
1. The borrower shall be Newt Gingrich.
2. The loan amount shall be $300,000.
3. The lender shall be Robert Dole.
4. The purpose of the loan shall be for the sole purpose of paying the $300,000 cost assessment contained in the report of the Committee on Standards of Official Conduct which was adopted by the House of Representatives on January 21, 1997 in House Resolution 31.
5. The interest rate shall be 10.0 % (which is the prime rate plus 1.5%) simple interest, calculated on an annual basis.
6. Principal and all accrued interest shall be due and payable within eight years of the date of the loan. Borrower may make payments prior to the due date at anytime, without penalty, with all payments being first applied to interest, with remaining amounts applied to principal.
7. All such loan documents which will include terms for loans generally available to the public and made in commercially reasonable manner (including requirements that the loan be repaid and that a reasonable rate of interest be paid) and as lender may in his judgment deem necessary or expedient for its protection, including a loan agreement which shall contain representations, covenants, and agreements satsifactory to lender.
8. Borrower shall maintain term life insurance in an amount of the full outstanding principal and interests at all time during the term of the loan.
9.The loan shall not be forgiven by lender, but instead shall remain a legal obligation of borrower.
10. Lender covenants and agrees that lender is not a registered lobbyist, is a U.S. citizen. Lender agrees that if lender becomes a registered lobbyist, then the loan shall be replaced with a commercial loan from a commercial lending institution agreeable to both borrower and lender.
11. The terms of the loan, as set forth hereinabove, shall be approved by the Committee on Standards of Official Conduct as a condition of the enforceability of any of the provisions set forth herein.
This 15th day of April, 1997.
Signed by Newt Gingrich and Robert Dole.
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