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

New Zealand

New Zealand

Answer
No
Source

213 Party secretary may enter into loan on behalf of party
(1) A party may enter into a loan only with the authorisation of the party secretary.
(2) Only the party secretary may enter into a loan on behalf of the party.
(3) If the party secretary enters into a loan that is not in writing, the party secretary
must, as soon as is reasonably practicable, make a written record of the loan.
(4) A loan entered into in contravention of this section is an illegal contract for the
purposes of subpart 5 of Part 2 of the Contract and Commercial Law Act 2017.
Source: Part 6b and specifically Art. 213, Electoral Act 1993, (amended 2020)

Comment

No restrictions regarding maximum amounts etc., but many rules concerning the procedure and disclosure.

Only a party secretary may take out loans on behalf of the party, party secretaries must keep records of those loans, and returns, with varying contents, must be filed for loans exceeding different threshold amounts.

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