ad info

CNN.com
 MAIN PAGE
 WORLD
 ASIANOW
 U.S.
 U.S. LOCAL
 ALLPOLITICS
  TIME
  analysis
  community
 WEATHER
 BUSINESS
 SPORTS
 TECHNOLOGY
 NATURE
 ENTERTAINMENT
 BOOKS
 TRAVEL
 FOOD
 HEALTH
 STYLE
 IN-DEPTH

 custom news
 Headline News brief
 daily almanac
 CNN networks
 on-air transcripts
 news quiz

 CNN WEB SITES:
CNN Websites
 TIME INC. SITES:
 MORE SERVICES:
 video on demand
 video archive
 audio on demand
 news email services
 free email accounts
 desktop headlines
 pointcast
 pagenet

 DISCUSSION:
 message boards
 chat
 feedback

 SITE GUIDES:
 help
 contents
 search

 FASTER ACCESS:
 europe
 japan

 WEB SERVICES:
 TIME on politics Congressional Quarterly CNN/AllPolitics CNN/AllPolitics - Storypage, with TIME and Congressional Quarterly

White House: Loan guarantee on Clinton home 'perfectly legal'

September 13, 1999
Web posted at: 11:26 a.m. EDT (1526 GMT)

WASHINGTON (CNN) -- The White House said President Bill Clinton violated no laws when he allowed longtime Democratic fundraiser Terry McAuliffe to guarantee the first family's $1.35 million mortgage loan to help them purchase a home in New York's tony Westchester County.

"We did take steps to affirm that the mortgage was being handled in a completely lawful and appropriate way," said White House spokesman Jim Kennedy when contacted by CNN. "We have no reason to believe that there is any violation of law."

Kennedy's comments came in response to a complaint filed with the Federal Election Committee by the Conservative Campaign Fund. The complaint alleges the collateral from McAuliffe amounts to a personal loan and therefore violates the $1,000 limit on campaign contributions.

When asked if the loan guarantee might violate campaign law, Kennedy said "we have taken the appropriate steps to ensure that all laws have been complied with."

Officials from the Federal Election Commission were not available for comment.

The Clintons will pay $1.7 million for 5,200-square-foot home in Westchester County north of New York City, slightly more than the asking price of $1.695 million. Sources tell CNN they expect to close on the property November 1.

Purchasing the house would give first lady Hillary Rodham Clinton residency in New York, which she will need to run for the Senate seat being vacated by retiring Democratic Sen. Daniel Patrick Moynihan. The first lady has not formally declared her candidacy for the seat, but has established an Senate exploratory committee.

The $350,000 for the down payment will come out of the Clintons' blind trust, and the Clintons will borrow $1.35 million from Bankers Trust Co., which McAuliffe is guaranteeing.

Sources have told CNN the loan is a five-year, adjustable rate loan -- an indication that president may refinance his mortgage shortly after he leaves office when his income is expected to increase considerably.

The white colonial house, built in 1889, has five bedrooms, a swimming pool and an exercise room on the top floor. It sits on a 1.1 acre lot and has a barn that is currently used as a garage.


CAMPAIGN 2000

First lady says she's nearly committed to Senate race (9-22-99)

Delaware governor to challenge Roth (9-21-99)

One poll has Giuliani leading Mrs. Clinton, second has race a tie (9-16-99)

First lady criticizes Congress over tax cut, campaign finance (9-15-99)

Democrats say travel reimbursement provision aimed at first lady (9-15-99)

MORE HEADLINES


CAST CALL

Who's in, who's out in the 2000 Senate races


'TOONS
Smartly dressed

Mike Luckovich: "Smartly dressed" (9-15-99) more

Chris Weyant: "Newsflash: Clintons purchase home" (9-6-99) more

Bob Lang: "The strange case of the Pushmi-Pullyu" (9-7-99) more


RELATED SITES

The U.S. Senate Web site


MESSAGE BOARD

Congressional races

Senator Hillary Clinton?



MORE STORIES:

Monday, September 13, 1999

Election briefs:
Search CNN/AllPolitics
          Enter keyword(s)       go    help





© 1999 Cable News Network, Inc. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.
Who we are.