Defined Contribution Plan Document

ARTICLE X
PARTICIPANT LOANS

Section 1. Loans to Participants.

  1. The Plan Administrator shall make loans to Participants under the following circumstances:
    1. Loans shall be made available to all Participants and Beneficiaries on a reasonably equivalent basis;
    2. Loans shall be made for the following purposes only:
      1. Unreimbursed medical, dental or legal expenses incurred by the Participant or be a member of the Participant's immediate family;
      2. Acquisition of Participant's primary residence;
      3. Home improvement loan on Participant's primary residence;
      4. Prevention of foreclosure on Participant's primary residence;
      5. Automobile loan for Participant or a member of the Participant's immediate family;
      6. Payment of books, tuition and related education expenses of Participant or a member of Participant's immediately family; or
      7. This section modified by: Amendment 12. View Previous Language.
        For loan applications received by NYLIM on or after May 1, 2009, loans may be made for purposes of debt consolidation by the Participant and/or the Participant's Spouse.
    3. Loans shall not be made available to Highly Compensated Employees in an amount greater than the amount made available to other Participants.
  2. Loans shall not be granted to any Participant that provide for a repayment period extending beyond such Participant's Normal Retirement Date.
  3. The minimum loan amount which shall be made pursuant to this Section is $1,000.00.
  4. The interest rate charged on loans made pursuant to this Section shall be the prime rate plus one percentage point. The interest rate shall be fixed at the inception of the loan and remain constant thereafter.
  5. Loans made pursuant to this Section shall be limited to the lesser of:
    1. $50,000.00; or
    2. One-half (½) of the present value of the non-forfeitable accrued benefit of the Participant's Account under the Plan.
  6. Loans shall provide for level amortization with payments to be made not less frequently than quarterly over a period not to exceed five (5) years. However, loans used to acquire any dwelling unit which, within a reasonable time, is to be used (determined at the time the loan is made) as a principal residence of the participant shall provide for periodic repayment over a reasonable period of time that may exceed five (5) years.
  7. Any loans granted or renewed on or after the last day of the first Plan year beginning January 1, 1998, shall be made pursuant to a Participant loan program. Such loan program shall be established in writing and must include, but need not be limited to, the following:
    1. The identity of the person or persons authorized to administer the Participant loan program;
    2. A procedure for applying for loans;
    3. The events constituting default and the steps that will be taken to preserve Plan assets.
  8. An outstanding or defaulted loan will be required to be repaid in full upon retirement or at the time a full distribution of an Individual Account is made under Article VI of the Plan. Repayment shall occur in the form of a reduction in the amount of the distribution by the amount of the outstanding or defaulted loan balance.
  9. A Participant may have only one loan outstanding at any time.
  10. A Participant's income shall not include interest that accrues on a Plan loan after a deemed distribution is made under the provisions of the Internal Revenue Regulations.
  11. The Plan Administrator may allow a limited grace period to repay unpaid installments. The Plan Administrator has adopted the last day of the calendar quarter following the calendar quarter in which the loan installment payment was due as the grace period. Therefore, if a Participant fails to make an installment payment when due under the terms of the loan, the Participant shall have until the last day of the calendar quarter following the calendar quarter in which the loan installment payment was due to make the installment payment. If the Participant fails to make the installment payment before the last day of the calendar quarter following the calendar quarter in which the loan installment payment was due, then the loan shall be deemed to be in default. In the event a loan is deemed to be in default, then there is a deemed distribution of the entire outstanding balance of the loan as of the date of the default.
  12. Effective for any loan application received by the Plan Administrator on or after April 1, 2008, if a Participant has defaulted on a prior loan and received a deemed distribution of said loan under the Plan, the Participant will not be eligible for a subsequent loan until the prior outstanding loan has been repaid in full, including accrued interest.
  13. In accordance with Section 414(u)(4) of the Code, payments on a loan will be suspended for any part of a period during which the Participant is performing service in the uniformed services, whether or not such service is qualified military service. Such suspension shall not cause the loan to be deemed distributed even if the suspension exceeds one year and even if the term of the loan is extended. However, upon the Participant's completion of such period of military service, loan repayments shall resume and the loan shall be repaid thereafter by amortization in substantially level installments over a period that ends not later than the latest permissible term of the loan. The latest permissible term of the loan means the date that the last payment of the original loan is due plus any additional period of suspension permitted due to the performance of service in the uniformed services by the Participant.
  14. All loans administered under this Plan shall comply with the following requirements:
    1. No more than ninety (90) days before the date of the loan, the Participant and the Participant's spouse, if any, shall file a written consent to the loan and to the possible forfeiture of benefits, responsibility for the tax liability therefore in the event of a default and acknowledging the potential impact on their benefits, in the form prescribed by the Board of Trustees and witnessed by a notary public, or

      Spousal consent to a loan under this Plan shall continue to remain in full force and effect regardless of any change in the Participant's marital status after the date of the loan.
    2. No more than ninety (90) days before the date of the loan, the Participant shall file a statement, on the prescribed form and witnessed by a notary public, acknowledging the possible forfeiture of benefits, responsibility for the tax liability therefore in the event of a default and representing that he or she is (and by the date of the loan will continue to
      be):
      1. Not married, or
      2. Unable to locate his or her Spouse and provides supporting documentation as required by the Plan Administrator.

In no event shall the Plan permit a loan to be made under Paragraph 2(B) of this Section if the Spouse has previously joined the Plan in a dissolution proceeding, served a notice of adverse interest on the Plan or served the Plan with another claim or Court order relating to the benefits accrued by the Participant under the Plan.