All loans from the fund to a participant shall bear interest at a rate equal to the prime rate offered by the First National Bank of Chicago in effect on the first day of January, April, July or October coincident with or immediately preceding the time the loans are approved plus one percentage point. All loans from the fund to a participant shall by their terms be repaid in level periodic payments over a period which does not exceed five years, unless the loans are used (as determined by the Committee) to acquire, construct, reconstruct or substantially rehabilitate a dwelling unit to be used within a reasonable time (determined at the time the loan is made) as the principal residence of the participant or of a spouse, sibling, lineal ancestor or lineal descendant of the participant, in which case such loans shall be repaid within a reasonable period of time as determined by the Committee in its sole discretion. To provide security to the fund, all loans made pursuant to this §§ 33.095 through 33.101 shall be secured by a pledge of the borrowing participant’s salary deferral contribution account balance or such other security as the Committee, in its sole discretion, determines to be acceptable, which pledge shall give the Trustees a first lien on such salary deferral contribution account balance or other security to the extent of the entire outstanding amount of the loan, unpaid interest thereon and all costs of collection. Loans shall be made on such additional terms and conditions as the Committee, in its sole discretion, deems appropriate.
(Ord. MET 86-13, passed 5-30-1986)