Nathan Deal: A $250k loan drawn on his own cash

Animal behaviorists will tell you that many species attempt to make themselves appear larger and more fierce, in order to fend off challengers.

This comes from the Associated Press bureau at the state Capitol:

Republican gubernatorial hopeful Nathan Deal used campaign contributions to secure a $250,000 line of credit from a bank whose board chairman has ties to the Republican congressman, a campaign spokesman said Friday.

Harris Blackwood told The Associated Press that the campaign placed $250,000 in a certificate of deposit with the Chattahoochee Bank of Georgia which then issued a line of credit for the same amount to Deal’s gubernatorial bid. Last week, Blackwood would not say specifically what Deal had used as collateral for the line of credit.

Blackwood said the money has to remain in the bank until the loan is paid back.

The maneuver effectively allows the Deal campaign — which has been among the fundraising leaders in the race — to appear to have more money on hand than it does. The $250,000 placed into a CD can still be counted as cash on hand even though it is being used to secure the line of credit, Blackwood said.

Deal has reported raising $1.6 million since entering the race for governor in May. His most recent campaign filing showed that he had over $940,000 left in the bank.

Blackwood said the line of credit is not an attempt to pump up Deal’s campaign totals. He said Deal borrowed the cash to pay for startup expenses for the race.

“It was just a way to keep money flowing without dipping into cash on hand,” Blackwood said.
Rick Thompson, former executive secretary of the state ethics commission, said the transaction appeared to be legal because Deal had collateral for the bank line. Thompson suggested the move was likely designed to artificially boost Deal’s bottom line.

“I can’t see why else he would do it,” Thompson said.

The scramble for cash has been intense in the crowded race for governor as 12 candidates fight to appear viable in advance of party primaries in July.

On Sunday, The Associated Press reported that Deal and state insurance Commissioner John Oxendine had each tapped $250,000 lines of credit.

Oxendine used his Duluth home to secure the line from Brand Banking Co., whose chief executive is a generous campaign supporter.

Deal was provided a line of credit from the Chattahoochee Bank of Georgia. The chairman of the bank’s board is Jim Walters, a contributor to Deal and to Deal’s son. Walters also leases space to the elder Deal’s campaign in Gainesville. Walters and one of his companies have contributed $24,400 to Deal’s gubernatorial campaign and another $1,000 to the campaign of Deal’s son, Jason, for Superior Court.

Deal said he is paying fair market rent for the campaign space.

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22 comments Add your comment

frugal voter

January 23rd, 2010
11:49 am

Nathan Deal is going to be a very indebted, out of work politician when the votes are counted. He is giving up $145 in Congressional salary and $150K in (questionable) salvage certification salary. All for a losing cause. I can’t wait for the post mortems when he and “OX” are out of office and out of chances for the Governorship.

I'm Not A Believer In You

January 23rd, 2010
12:11 pm

These are the kinds of people we don’t need running our state government. Deal nor OX will be getting my vote. These kinds of dealings (pun intended) are on the fringe of legality and should not be tolerated by the legislature; however, we know how that works….wink..wink.

Fiscal Conservative.

January 23rd, 2010
12:27 pm

Frugal and Im not; Lemme guess… Karen supporters.

Oxendines appears to be legitimate, his house is worth at least 300k. He has a pretty decent size middle class home.

Deals, however, rinks of inflationary tactics. Apparently spending more than you rasie/earn isnt the only thing Deal learn as a lifelong politician and a 16 year DC Congressman.

Johnson appears to be pretty strong, I know that he pushed money from an old account over, but still they had to okay it.

rukidding

January 23rd, 2010
12:38 pm

Deal, Real, Steal brings his Washington ways to Georgia. He is so used to the shell games that they play with our money in DC, he thinks he can get away with it on his campaign.

Deal has proven that he is only concerned about making himself richer.

He is a back bencher in DC who hasn’t done anything for Georgia, His district contains Lake Lanier, if he had taken action, instead of sitting ion the back bench we may not have the court challenge that we have with Lake Lanier. The judge has stated that federal law needs to be changed. Why did Deal wait until he announced for Govenor to do anything about it.

Jack in Douglasville

January 23rd, 2010
1:19 pm

Like it or not, looks like OX is our next Governor.

catlady

January 23rd, 2010
1:54 pm

I would never vote for Deal or Ox, even before their most recent “coming to Jesus” moments.

sick.finance.co.king

January 23rd, 2010
3:00 pm

Once I saw the name Jim Walters I knew this was all about money. Deal is obviously begging for funds from the slimiest man in Gainesville. Undoubtedly two shady characters trying to hide their money ‘deals’ (no pun intended) from the public. Both men are infected with their lust for money and power.

Alabama Communist

January 23rd, 2010
3:15 pm

WoW! The ole bait and switch trick in action! Use “Other People’s Money” for a loan and than put up stolen goods for the security. If the common person try that with the Banker. He would turn the poor soul in to the Cops and take credit for stopping Crime in the name of the ” Common Good”

Jack

January 23rd, 2010
3:33 pm

Shame on the hypocrite Deal, the self righteous will self destruct….I hope.

curious

January 23rd, 2010
4:03 pm

Such attacks. Boys, boys. Let’s be civil. King Roy must be so worried about the election that he’s already pulling favors to get free publicity and embarrass top Republican opponents: Oxendine’s so-called irresponsibility on a hunting trip; Deal’s financial deal with the state.
If Deal’s contract with the state was so wrong, then who was governor when it was approved? Roy, Roy, care to comment?

rukidding

January 23rd, 2010
4:10 pm

Yeah, Deal was Roy’s boy.

Joel Williams

January 23rd, 2010
4:59 pm

Nathan Deal. Once pro-choice now pro-life. Once Democrat now Republican. As a State Senator he leased his rental property to the State Parloe Board. As a congressman moved Ga Power transmission lines from his property to his neighbors and used his office to increase his car “chop shop” inspection buisness. He is REAL…REAL FLAKLY. Check these facts they are all true. He is the biggest hypocrite democrat or republican.

Cutty

January 23rd, 2010
5:02 pm

Yeah curious @ 4:03- Try to defend something that the Average Joe couldn’t do; use other people’s money (i.e., loan from a bank) to get a line of credit from the same bank. Whatever dude.

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Hmmm....

January 23rd, 2010
5:36 pm

I feel like most of the negative press concerning this campaign that I read about in the AJC focuses on Deal. Granted I only read this selectively but this doesn’t exactly seem like unbiased journalism.

frugal voter

January 24th, 2010
5:08 am

Hmmmm/ Nathan Deal is a sleaze. How can you put positive spin on a sleaze? Just reporting the facts about him appears negative. After the shooting last week…OX is next. Just report the facts AJC, the rest will take care of itself.

really???

January 24th, 2010
2:39 pm

As a person who knows the FACTS……especially when it comes to his buisness dealings…….frugal voter has no idea what he is talking about…..Joel williams…a chop shop??????? That makes you sound credible in your understanding of the SALVAGE BUSINESS……..(sarcasm intended). I question anyone who blogs on here at this point. Everyone has an opinion……but unless you know the FACTS……keep them to yourself. I

Georiga Whig Party member

January 25th, 2010
11:14 am

I feel as if this post is incomplete. How often is this tactic used? Is this rare or just rare this early in the race? Do the connections at the bank have anything to do with the loan approval or is it collaterized against Deal’s property? I can’t tell if this is scetchy and underhanded or just a dude trying to go for broke, which is a uniquely american right. Anyone know the answers to these questions?

[...] Tipline brings us this gem, which Jim Galloway has also reported. The AJC updated its coverage today. Congressman and Candidate for Governor [...]

Jimbo

March 1st, 2010
4:32 pm

How anyone can be supporting the twin sleazebags Deal and Oxendine is beyond me. Folks, we can do so much better than those two losers.

Republican party leader

March 1st, 2010
4:46 pm

really???, the only fact I need to know is that if I scream the loudest about how bad Washington is, and how bad things are going to be under a Democratic Admin. then I am a legitimate candidate for the Republican party. No answers necessary. BOO! Vote for me. OX. Or Deal. Both are the same.