STATE : McCarthy Defaults on S&L; Loan
Lt. Gov. Leo T. McCarthy is $125,000 in default on a loan the Democrat obtained from a now-insolvent Los Angeles thrift for his unsuccessful run for the Senate in 1988.
McCarthy missed last Friday’s deadline for repaying the balance of a $300,000 loan he secured from First Network with his campaign committee’s list of 27,000 potential contributors and his personal guarantee, the San Francisco Chronicle said today.
Only $37,500 was paid, leaving McCarthy owing $125,000, the newspaper said.
Aides said McCarthy will repay the rest of the balance, even though he must also raise money for his current reelection bid in November.
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