[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/09/18/art.hclinton.0918.gi.jpg caption="Clinton's campaign now has enough cash to pay off its debt."]WASHINGTON (CNN) - Secretary of State Hillary Clinton's campaign debt from her failed 2008 presidential bid has fallen below the $1 million-mark for the first time since she launched her candidacy almost three years ago, according to documents filed Thursday with the Federal Election Commission.
Clinton's campaign reported having $2 million in the bank as of September 30, more than enough to pay off the $995,500 it carried in unpaid bills.
The sole remaining creditor is the political consulting firm Penn, Schoen & Berland, which at the start of the year had been owed $5.4 million. The campaign paid the firm over $500,000 on September 30, the last day of the 3rd quarter reporting period.
Clinton's debt reached its peak in June 2008 shortly after the former New York senator suspended her campaign. At that point, her presidential committee owed $12 million to almost 500 creditors and $13.2 million to the candidate herself, who dipped into her personal funds to help finance her campaign. Campaign finance laws forced Clinton to forgive the amount she loaned her committee because she was not able to repay the funds by the required deadline.
The campaign raised only $9,300 in contributions from July through September but generated an additional $172,000 from both bank interest and from the rental of its campaign mailing lists to other organizations.
A federal law known as the "Hatch Act" prohibits Secretary Clinton and other federal government employees from personally soliciting or accepting political contributions. The law does allow others to raise funds on Clinton's behalf, without her direct involvement.