Local News in Brief : Museum Loan Studied

The state attorney general’s office is reviewing a $972,135 low-interest loan by the private fund-raising arm of the Los Angeles County Art Museum that helped museum director Earl A. Powell III purchase a home in Hancock Park.

The nonprofit group, Museum Associates, unanimously approved the secured 3% mortgage loan three years ago to get a larger place for fund-raising events and to encourage Powell to stay with the museum, said Daniel N. Belin, president of the museum Board of Trustees, whose members also act as the board of Museum Associates.

Deputy Atty. Gen. James Cordi said the computer-triggered review would see if the loan meets state rules for nonprofit groups, which permit large loans if necessary to recruit or keep key executives.

The loan was made with proceeds from the sale of another Museum Associates house and contributions earmarked for the Powell home, Belin said. “No public funds, no membership fees, no admission fees, no operating fees were used,” he said.