Chenoweth Mortgage Covers Loan Deal Finally Secures Lawmaker’s Campaign Loan From West One Bank

Republican Congresswoman Helen Chenoweth has taken out a seven-year mortgage on her Boise home to finally secure a loan she got from West One Bank for her campaign a year ago.

Campaign attorney John Keenan said on Wednesday that the campaign paid off $10,000 of the $40,000 loan in cash last summer and then covered the remainder with the $30,900 mortgage.

Under terms of the loan, which Democrats have asked the Federal Election Commission to investigate, the money had to be repaid by this Friday.

Keenan, Chenoweth’s son-in-law, said the second mortgage was closed on Nov. 8, carrying a 9.67 percent interest rate. It will be repaid in monthly installments until paid off on Nov. 15, 2002.

Formal recording of the transaction should appear on the campaign’s financial disclosure statement covering the last half of 1995 that is due the end of January.

Chenoweth chose to take out the second mortgage after being hounded by questions over the legality of the original one-year loan.

The loan, which was obtained last Nov. 23, had been misrepresented for over seven months on required campaign finance disclosure statements as a personal loan from Chenoweth to the campaign.

It was not until early August that campaign treasurer Wayne Crow acknowledged that it was a loan from West One Bank at 10 percent interest.

Although that was corrected on Oct. 20, the loan was still characterized as unsecured and not guaranteed even though Federal Election Commission regulations require all bank loans to campaigns to include a method assuring repayment. Otherwise the loan is considered an illegal contribution from the bank.

On Nov. 3, a new amendment to the disclosure statement abruptly described the loan as secured and guaranteed by Chenoweth although the congressman said the status of the transaction had not changed over the previous 11 months.

She maintained her reputation and status as a member of Congress was security enough for the bank, and she accused the media of blowing the transaction out of proportion.