US: A California judge ruled on Monday that Gov Arnold Schwarzenegger broke state law by borrowing more than $4.5 million to finance his run for office in last October's recall election.
In a preliminary decision that could force Schwarzenegger to repay the money personally, Superior Court Judge Loren McMaster ruled on Monday that the Republican governor had violated a law restricting candidates from accepting personal loans of more than $100,000 for their campaigns, said Mr Lowell Finley, the lawyer who filed a lawsuit challenging the loan.
"The judge ruled that Schwarzenegger's loans he obtained from a bank and then personally loaned to his committee were illegal," Mr Finley said. "He broke the law by a multiple of 40." Mr Schwarzenegger's lawyer said the governor had relied on a ruling from the state's Fair Political Practices Commission that his actions were legal.
"The campaign committee intends to comply with the judge's order," Mr Schwarzenegger's attorney, Ms Colleen McAndrews, said in a statement. "We are gratified that the judge held that the campaign acted in good faith and in reliance on the FPPC's erroneous regulation." The lawsuit was filed on behalf of a Democratic party activist.