At 04:24 AM 5/30/96 -0400, Xerxes wrote (again)::

>At 12:42 AM 5/30/96, Curt A. Monash wrote:
>>Scott/S/Xerxes Finer wrote:
>>
>>"Nonsense.  The model you call "cooperative" is in fact no model at all.
>>Try taking this so-called model to any bank in the country, and presenting
>>it as the foundation for a loan application and watch what happens.
>>Beg-a-thon is no model. "
>>
>>Actually, political campaigns borrow money all the time.  I'm sure some
>>people on this list would know more accurately, but I'm under the impression
>>that some of the lenders are actually banks.
>
>Sure, if you want to run for congress and can pledge assets, a bank will
>lend you money.....but this is hardly a business loan Curt.  An unsecured
>business loan is made against a record of receivables and a solid business
>plan usually........a begathon does not count.  A loan secured by personal
>assets could be for a rocketship to Mars....the banker does not care if the
>loan is smaller than the assets.

        As a point of information, public TV stations routinely have
arrangements with their local banks for lines of credit which are secured by
- -- Ta Da! -- pledges.  It's definitely a business arrangement. 
        The fulfillment rate for pledges varies depending on several
circumstances; at KVIE it averaged about 80%. My memory may be faulty, but I
believe KVIE's LOC was about half a million, last time I checked (and the
station hadn't touched it in years). 

Cheers,

Susan
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Susan Prince		Phone:  916-389-8344
P.O. Box 536		Email:   sdprince@foothill.net
Alta, CA 95701


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