Republicans are raising questions about how Democrats are financing their national convention slated for next year in Charlotte, N.C.

The Democratic National Convention is being partly financed by a $10 million line of credit. That financing, according to the Charlotte Observer, is guaranteed by Duke Energy Corp., a company headed by a top Democratic fundraiser.

From the Observer:

The credit line from Fifth Third Bank is apparently the first time such an arrangement has been used by any Democratic convention organizers.

A Duke spokesman said stockholders, not rate-payers, would be on the line if the convention's host committee defaults. But the head of the committee said it may never have to draw on the money.
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Some suggest the arrangement is tantamount to a large corporate contribution at a time when the party is touting new rules that bar corporate cash and individual contributions over $100,000. Democrats have pledged "a people's convention" and say the line of credit doesn't violate the new rules.
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Republicans have called the new restrictions "sleight of hand." They say Duke's loan guarantee is more of the same.

"We said it then and we'll say it again, this rule isn't worth the paper it's written on," said party spokeswoman Kirsten Kukowski. "It proves the 'policy' was nothing more than a PR move from the very beginning."

Democratic spokesman Brad Woodhouse dismisses that notion. "No one is giving us anything," he said. "This is a line of credit."