ae NEW YORK SENATE DEMS [MAJORITY CONFERNECE MEMORANDUM FROM: Josh Cherwin DATE: Friday, November 26, 2010 1SC¢'s Bank ine of credit For more than a decade, the DSCC has maintained a tine of credit withthe National Bank of NYC to cover end-ofcampaign expenses In prior years, the Committee has borrowed as much a 51.5M and then pald dawn that debt over the course of the following year. For example, in 22008 the DSCC borrowed $800,000, while in 2002 the DSCC borrowed $1.44M, ‘The line of credit works as follows ncvidual Members sign paperwork personelly guaranteeing '3 portion ofthe total loan. No guarantor may exceed the maximum individual contribution of {394,200 per person. The sie of the line of ereit sn tur, determined by the total number of {uarantors, In the event the Committee does indeed draw down on the line of credit, it pays prinlpal on that amount unit i fully epai. For this cyle, the DSCC went further thon prio years, expanding the line of ced to $2.345M1. In addition tothe 17 Members who were already acting 2s guarantors, 10new Members ‘completed paperwork as part of ths expansion. Currently, the monthly minimum debt service [s just shy of $15,000 but we expect and plan to fll pay down the line of credit by the end of calendar year 2011. While there I ne oficial deadline for fll repayment, the line of ereit must be renewed every ‘wo years a pat af the normal course of business. This eee, the renewal date is December 117 am therefore respectfully requesting that e2ch Member sign the attached paperwork. As par of this process, former Members wil be removed as guarantors and new Members will be ‘added in their place. ‘Attached is related Ist of Frequently Asked Questions (FAQs). Please do not hesitate to ‘contact me at (917) 371-6420 with any questions/concers. Thankyou for your assistance in thismatter.Faas 1. Isthe line of credit due tobe repaid bya speciic date? No. As ong asthe line of credits renewed every two years withthe necessary number of ‘auorantors, there is no hord deadline for full repayment. n past ccles, the debt has ‘been paid down over a yearlong period or more. 2. Isthis a personal guarantee? Yes This is 0 personol uarantee na individual member can exceed the maximum Individual contribution allowable under campaign france low of $84,200. 3, Does this guarantee impact my personal credit rating? No. This guarantee appears os o credit inquiry ony. It does not appear a function as an ‘actual liability owed on your personal credit report 4. Can campaign funds be used to repay the line of cred? ‘Members have the ability to tansfer unlimited campaign funds to the DSCC. Therefore, debe elf azsstance con be provised by transferring maney from 9 Member's individual campaign committee to the DSCC.3s 7. jai ip fail fic Guarantor ia Hf 1 i? (ligacion by the spec "200. CO ai ia 20! Eo