Joshua Freed, the former Bothell mayor and developer who placed third in the Aug. 4 gubernatorial primary, has agreed to pay $25,000 for violating campaign-finance law.

In a settlement approved by the state Public Disclosure Commission (PDC), Freed, a Republican, was assessed a $50,000 penalty, with $25,000 suspended if he has no new violations for four years.

The violations stem from a $500,000 campaign loan Freed made to his gubernatorial campaign — in an apparent effort to scare off potential GOP primary rivals.

Freed later repaid $450,000 to himself in violation of a law that limits candidate loan repayments to $6,000 per election, according to the PDC.

Freed has said the money was mistakenly reported as a loan instead of a contribution. But he stipulated to three violations of campaign-finance law for failing to file accurate and timely financial reports and follow rules on candidate loans.

The stipulated settlement was unanimously approved by the PDC at a meeting Thursday, said commission spokeswoman Kim Bradford.

Freed is currently running as a write-in candidate for Washington lieutenant governor.