Before he guaranteed more than $500,000 in loans for Tuck in 1999, Scruggs had guaranteed a $75,000 campaign loan for Musgrove four years earlier. Both were Democratic candidates for lieutenant governor when they received the loans.

Tuck, who switched her political allegiance to the Republican Party last year, succeeded Musgrove when he was elected governor.

Under the state's constitution, the lieutenant governor is a powerful executive who makes all appointments to state Senate committees and refers bills to committees. Important legislation can die in a committee without the full Senate ever having the opportunity to vote on a bill. The position has been characterized by some political observers as having more power than the governor.

On Wednesday, the manager of Musgrove's gubernatorial re-election committee said he took out the $75,000 loan guaranteed by Scruggs from Merchants & Marine Bank, which is based in Pascagoula.

“Gov. Musgrove provided full disclosure and reported this loan,” said Lisa McMurray, manager of the governor's re-election campaign. Although Musgrove reported the loan, he did not disclose on his campaign finance report the name of the bank or that Scruggs had guaranteed the loan.

Scruggs, a trial lawyer, earned $1.2 billion for his law firm in court settlements with tobacco companies. He has also made millions of dollars from asbestos lawsuits.

State law defines contributions as “any gift, subscription, loan, advance, deposit of money or anything of value made by any person or political committee for the purpose of influencing the election for elective office or balloted measure.”

Unlike Tuck, Musgrove's campaign retired the debt when several contributors assumed his loan. Musgrove reported the names of those who helped pay off the loan. Scruggs wound up paying all of Tuck's $510,000 loan, she said. Tuck said Wednesday she had a verbal agreement with Scruggs to pay him back.

Gov. Ronnie Musgrove received a more than $75,000 personal loan from a Pascagoula bank that was guaranteed by lawyer Richard “Dickie” Scruggs. But several lawyers assumed the loan, which was made in 1995 when Musgrove ran for lieutenant governor. They were:

Bill Liston: $5,000
Crymes Pittman: $5,000
Danny Cupit: $5,000
David McCormick: $10,013
David Nutt: $12,000
Jim Brantley: $5,000
Tom Rhoden: $2,500
Paul Benton: $7,000
Paul Minor: $7,000
Richard Scruggs: $10,000
Payment from campaign: $7,000
— MUSGROVE CAMPAIGN