The Law Requires:

Disclose the name and address of each creditor to whom the value of $2,400 or more was owed; the original amount of each debt to each creditor; the amount of each debt owed to each creditor as of the date of filing; the terms of repayment of each debt; and the security given, if any, for each such debt. Exception:  Do not disclose debts arising from a "retail installment transaction."  RCW 42.17A.710(1)(c).

Explanation:

Generally, this section of the law requires you to report loans and other indebtedness, regardless of whether money is owed to an individual, a lending institution, other commercial businesses or your local, state or federal government.  In this section, include only personal obligations of $2,400 or more that you or family members owed at any time during the reporting period.  Don't include debts owed by a business you might own, unless you are personally liable for the repayment.

Credit card debts and revolving charge accounts are not reportable.  Nor are "retail installment transactions" such as the purchase of an appliance on contract.  Also, since you listed any outstanding mortgages and other real estate debts in Part 2, you need not repeat them here.

Be sure to state, using the Dollar Code, the amount owed when the debt was first obligated, and the amount owed as of the date you're completing this report.  (In the other sections of this report, you gave values based on what they were during the reporting period; however, in the case of debts and liabilities, the law specifically asks for the balance due at the time you're filing this report.)

Common items reported in this section are:

  • bank loans
  • margin accounts with stockbroker
  • finance company loans
  • home improvement loans
  • loans against insurance
  • judgment against you or lien against your property
  • pledge to a political committee
  • loans to your campaign committee for which you are personally liable
  • automobile loans
  • taxes in arrears
  • student loans
  • business debts for which you are personally liable
  • farm equipment loans for which you are personally liable
  • notes you have co-signed
  • leases for property, vehicles, machinery or other equipment or services