Page 10 - 3Q 2017 Reporter
P. 10
Political Contributions
by John M. Gabala, Giffin, Winning, Cohen & Bodewes, P.C.
P. O. Box 2117, Springfield, IL 62701
John M. Gabala
CITIZENS UNITED VS. FEDERAL election or political convention or caucus held to
ELECTION COMMISSION select candidates for any political office.”
The United States Supreme Court on January The Code of Federal Regulations (§ 114.2(a))
21, 2010 in Citizens United vs. Federal Election provides that: “National banks and corporations
Commission, 588 U.S. 310, held a ban on organized by authority of any law of Congress are
corporations and labor unions making independent prohibited from making a contribution as defined in 11
expenditures and financing electioneering C.F.R. § 114.1(a), in connection with any election to
communications unconstitutional. However, the any political office, including local, State and Federal
Supreme Court did not invalidate the prohibition on office.
federally chartered banks, savings associations and The United States Federal Reserve Bank Holding
federal chartered corporations from making direct Company Supervision Manual (Supplement 51-2017)
contributions in connection with any federal, state or recognized that “national banks and other federally
local election. chartered corporations are specifically prohibited from
making contributions or expenditures in connection
FEDERAL SAVINGS ASSOCIATIONS with any election.”
In the absence of any judicial decisions holding
Federal savings associations, as corporations
the prohibition on national banks and federally
organized under Federal law, are prohibited from
chartered corporations from making political
making political contributions to candidates to any
contributions in any election is unconstitutional, the
political office including state and local elections (52
Supreme Court’s decision in Citizens United does
U.S.C. § 30118(a)). The Federal Election Commission
not affect the continued prohibition against a national
has held that federal savings associations’ prohibition
bank or a federally chartered corporation from making
commences once they receive their charters. The
political contributions in any federal, state or local
Federal Election Advisory Order (1981-33) states that
election.
the prohibition against contributions from federally
organized corporations apply to contributions made in
connection to any political office including state and STATE CHARTERED BANKS AND
local elections. The Citizens United decision does STATE CHARTERED SAVINGS BANKS
not affect a federal savings association’s continued AND THEIR HOLDING COMPANIES
prohibition on making political contributions in any State chartered banks and state chartered savings
federal, state or local election. banks may make contributions or expenditures
consistent with state and local law in connection with
NATIONAL BANKS AND FEDERALLY state or local elections.
CHARTERED CORPORATIONS A state bank and state savings bank holding
Section (§ 30118(a) of the Federal Election companies are prohibited from making political
Campaign Act provides that: “[i]t is unlawful for contributions in federal elections; however, they
any national bank *** to make a contribution or may make contributions or expenditures that are
expenditure in connection with any election to any consistent with state and local law in connection with
political office, or in connection with any primary state and local elections.
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Third QuarTer 2017 IllInoIs RepoRteR
