The bank to which the Senate Democrats owe some $2.4 million was cited for “unsafe and unsound banking practices relating to asset quality, management, and liquidity” by the US Comptroller of the Currency and placed under an enforcement action/formal agreement this past July.

Senate Democratic conference spokesman Austin Shafran declined to comment when I asked him about the troubled experienced by the Flushing, Queens-based National Bank of New York City, which has long been the DSCC’s go-to for loans (dating back at least to the minority leader days of now-Senate President Malcolm Smith, who also hails from Queens).

A reader also forwarded the terms of the DSCC’s recent loans from the bank, (obtained via a FOIL request), which show a maturity date of Dec. 22, as Senate Minority Leader Dean Skelos indicated.

However, Shafran insisted that date was established for the DSCC’s old line of credit, which was renewed this past campaign cycle. According to Shafran, the Democats have established a payment plan with the bank, and won’t be forced to pay off their considerable debt in one lump sum in the coming weeks.

Also, Shafran confirmed that senators are personally liable for the loans obtained by the DSCC. Apparently, they sign paperwork indicating the committee has the right to borrowing cash on their behalf when they sign their oaths of office.

NYPIRG’s Bill Mahoney put together a spread sheet that demonstates the DSCC has carried more debt than any other campaign committee over the past decade.

FOIL[1][1].Granted (DSCC & 1st Bank of NYC)

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