Rules Governing Plan Loans

1.  Plan document must allow for participant loans!

2.  Participant may borrow 50% of the VESTED account balance up to $50,000.

3.  Minimum loan amout is generally $1,000.

4.  Permitted uses of loan proceeds is determined by the Plan sponsor, as stated in the Plan's loan policy.

5.  Five year maximum repayment schedule, unless the loan is to acquire a principal residence which may allow up to 15 years for repayment.

6.  Payments must be made no less frequently than quarterly using a level amortization schedule.

7.  Interest rate must be reasonable under current market conditions for the type of loan being made.

8.  Normal loan origination fee - $175 (some rates may vary)

9.  REFINANCING is generally not allowed.