Gov. Evan Mecham faced a new controversy as Arizona's attorney general investigated a $350,000 campaign loan the governor did not report, though state law required disclosure. The loan was disclosed in a copyrighted story in the Arizona Republic. The Republican governor has yet to repay about $250,000 of the loan, and the lender--target of a racketeering suit filed by the state--said he will sue to recover the money if it is not repaid by a Nov. 1 deadline. Mecham's office released a statement in which the governor said: "I do not believe any illegal act was committed."