DuBose’s Car Loan Checked : Notre Dame: Irish linebacker, awaiting eligibility ruling, borrowed $25,000 for auto, to be repaid in January.

An automobile loan with unusual terms obtained by Notre Dame linebacker Demetrius DuBose is being checked by the NCAA as part of its investigation of the Irish star, according to a source familiar with the matter.

Notre Dame announced last Thursday that it had declared DuBose, a senior All-American candidate, ineligible, pending a ruling by the NCAA eligibility staff, because of unspecified NCAA rules violations.

The announcement was made after The Times had reported that a variety of gifts, including a large cash loan, provided to DuBose by a Seattle couple with ties to Notre Dame, had come under scrutiny by the NCAA. DuBose grew up in Seattle, where he attended Bishop O’Dea High.

The Times has identified the couple as Grant E. Courtney, president of the Western Washington Notre Dame Alumni Club, and his wife, Rose, a former Notre Dame admissions officer.

NCAA officials had said they expected to make a ruling on DuBose’s eligibility this week. However, Janet Justus, NCAA director of eligibility, said Friday that a decision would not be made until next week at the earliest.

She declined to comment on the specifics of the case.

A complicating factor may be DuBose’s car loan, which also has attracted the NCAA’s interest, according to the source, who asked not to be identified.

The note, in the amount of $25,000, allows DuBose to make a single “balloon” payment, according to the source.

A second source, who also asked not to be identified, confirmed that DuBose obtained a $25,000 auto loan with a one-year term from U.S. Bank of Washington in Seattle in January, 1992. By the time the loan comes due in January, 1993, DuBose will have completed his eligibility and can, by NCAA rules, receive advance payments from an agent he has selected to represent him in the NFL draft in April.

The Seattle Times, quoting an unidentified source close to DuBose, reported last week that the player purchased a new utility vehicle, a Nissan Pathfinder, with a no-down-payment loan from an unnamed bank.

The price for such a vehicle can range from $19,000 to $27,000, depending on options, according to a Seattle dealership.

According to the Seattle Times, DuBose got the loan by convincing the loan officer that he would repay it when he became a professional football player. DuBose is expected to be a high pick in the 1993 NFL draft. The newspaper reported that the loan officer has ties to O’Dea High.

Helping DuBose get the loan, the newspaper quoted its source as saying, was his purchase ofan insurance policy that would compensate him if he suffered a career-ending injury this season.

According to NCAA rules, a college athlete loses his amateur standing if he uses his athletic reputation, skill or “pay-back potential as a professional athlete” to obtain preferential treatment, benefits or services.

Loans allowing for deferred repayment are cited in the NCAA manual as an example of such special treatment.

According to the Seattle Times, the NCAA began its investigation of DuBose after he was seen driving the new vehicle.

It is known that DuBose himself revealed details about his relationship with Grant and Rose Courtney when he was questioned by an NCAA investigator.

Notre Dame Athletic Director Dick Rosenthal said Friday that he would not comment on the DuBose matter.

The NCAA’s Justus, asked about the car note, said: “I’m not going to comment on anything at this time. . . . We’re just reviewing information.”

The NCAA eligibility staff can restore DuBose’s eligibility immediately, allow him to play after sitting out a certain number of games, or declare him permanently ineligible. If Notre Dame disagrees with the staff’s ruling, the school can appeal.

Justus said she hopes the matter can be fully resolved before Notre Dame opens its season next Saturday against Northwestern.

“But that’s (just) a hope,” she said. “ . . . Really, Notre Dame is not the only case we have.”

In a statement quoting Rosenthal, Notre Dame said last week it has asked the NCAA eligibility staff to restore DuBose’s eligibility immediately because of the “unique facts” of the case.

In an apparent reference to Grant and Rose Courtney, the statement cited DuBose’s relationship with the “individuals in question” before the player was recruited by Notre Dame.

Rosenthal’s statement also said that DuBose had received a $600 loan from the Seattle couple and not $5,000 as has been reported by The Times. The statement made no reference to a car loan.

Times staff writer Elliott Almond contributed to this story.