Laserfiche WebLink
<br />457 Plan and Trust Document <br /> <br />(g) Application for Loan. The Participant must give the Employer adequate written <br />notice, as detetmined by the Employer, of the amount and desired time for <br />receiving a loan. No more than one (1) loan may be made by the Plan to a <br />Participant's in any calendar year. No loan shall be approved if an existing loan <br />from the Plan to the Participant is in default to any extent. <br /> <br />(h) Length of Loan. Any loan issued shall require the Participant to repay the loan <br />in substantially equal installments of principal and interest, at least monthly, over <br />a period that does not exceed five (5) years from the date of the loan; provided, <br />however, that if the proceeds of the loan are applied by the Participant to acquire ~ <br />any dwelling unit that is to be used within a reasonable time (determined at the <br />time of the loan is made) after the loan is made as the principal residence of the <br />Participant, the five (5) year limit shall not apply. In this event, the period of <br />repayment shall not exceed a reasonable period determined by the Employer. <br />Principal installments and interest payments otherwise due may be suspended for <br />up to one (1) year during an authorized leave of absence, if the promissory note <br />so provides, but not beyond the original term permitted under this subsection <br />(h), with a revised payment schedule (within such term) instituted at the end of <br />such period of suspension. <br /> <br />(i) Prepayment. The Participant shall be permitted to repay the loan in whole or in <br />part at any time prior to maturity, without penalty. <br /> <br />Gl Promissory Note. The loan shall be evidenced by a promissory note executed by <br />the Participant and delivered to the Employer, and shall bear interest at a <br />reasonable tate determined by the Employer. <br /> <br />(k) Security. The loan shall be secured by an assignment of the participant's right, <br />title and interest in and to his or her Account. <br /> <br />(I) Assignment or Pledge. For the purposes of paragraphs (f) and (g), assignment or <br />pledge of any portion of the Participant's interest in the Plan and a loan, pledge, <br />or assignment with respect to any insurance contract purchased under the Plan, <br />will be treated as a loan. <br /> <br />(m) Other Terms and Conditions. The Employer shall fIX such other terms and <br />conditions of the loan as it deems necessary to comply with legal requirements, to <br />maintain the qualification of the Plan and Trust under Section 457 of the Code, <br />or to prevent the treatment of the loan for tax purposes as a distribution to the <br />Participant. <br /> <br />The Employer, in its discretion for any reason, may also fix other terms and conditions of the <br />loan, including, but nor limited to, the provision of grace periods following an event of <br />default, not inconsistent with the provisions of this Article and Section 72(p) of the Code, <br />and any applicable regulations thereunder. . <br /> <br />16 <br />