Arkansas Supreme Court Won't Rehear Case Over $700K Magazine Loan

Mar 31, 2016

Arkansas Supreme Court

Arkansas' highest court says it won't reconsider a decision in which it said it was OK for a state university to loan $700,000 to the Oxford American literary magazine.

The state Supreme Court on Thursday denied James McCafferty's petition to rehear his lawsuit challenging the University of Central Arkansas' loan to the magazine, which is based in Little Rock. Justices last month uphold a lower court's dismissal of McCafferty's lawsuit, ruling that the funds used for the loan weren't tax dollars.

UCA loaned the money to the magazine between 2004 and 2008, drawing the funds from profits the school had made from its dorms, bookstore, cafeteria and other auxiliary operations. The school says $276,000 of the loan has been repaid.