§ 33.021 PLAN LOAN MUST BE AVAILABLE TO ALL.

   Plan loans shall be made available without regard to any person’s race, color, religion, sex (or gender), sexual or affectional preference or orientation, age, national origin (ancestry) or any other factor to the extent that such consideration would result in discrimination prohibited by applicable state or local law. The person making or authorizing any plan may (but is not required to) include the applicant’s creditworthiness and financial need.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.022 PLAN LOAN PROVISIONS.

   (A)   When made available by the issuer, plan loans are made available solely according to the provisions of the issuer’s written contract.

   (B)   When made available by the Plan Administrator, plan loans are made available solely according to the provisions of the written procedure specified by the Plan Administrator or the agent, and each such written procedure is incorporated in and made a part of the plan.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.023 PLAN LOAN MUST BE ADEQUATELY SECURED.

   (A)   A plan loan shall not be made unless the plan loan is adequately secured.

   (B)   A participant’s account may be used as security for the plan loan to the extent of the issuer’s or the plan-trustee’s ability (consistent with the provisions of the plan) to satisfy the participant’s outstanding obligation in the event of default.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.024 PLAN LOAN MUST BEAR A REASONABLE RATE OF INTEREST.

   To the extent required by I.R.C. § 72(p), a plan loan shall not be made unless the plan loan bears a reasonable rate of interest.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.025 PLAN LOAN LIMIT.

   Consistent with I.R.C. § 72(p)(A), a plan loan shall not be made to the extent that the plan loan (when added to the outstanding balance of all other plan loans and all plan loans under all qualified plans of the employer and all affiliated employers) would exceed the lesser of $50,000, reduced by the excess (if any) of the highest outstanding loan balance during the one-year period ending on the day before the date on which the plan loan is made, over the outstanding loan balance on the date on which the plan loan is made; or the greater of one-half of the present value of the participant’s non-forfeitable accrued benefit (under this plan and all qualified plans of the employer and all affiliated employers), or $10,000; or would otherwise exceed any limit under I.R.C. § 72(p)(2)(A) or under I.R.C. § 457(b) and (g).

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.026 PLAN LOAN REPAYMENT PERIOD.

   (A)   Consistent with I.R.C. § 72(P)(B), a plan loan shall not be made unless the loan, by its terms, is required to be repaid within five years unless the loan is used to acquire the participant’s principal residence.

   (B)   To the extent permitted by I.R.C. § 414(u)(4), a plan loan may suspend the participant’s repayment obligation for any part of the period during which the participant performs service in the uniformed services, even if such service is not qualified military service.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 33.027 PLAN LOAN AMORTIZATION.

   Consistent with I.R.C. § 72(p), a plan loan shall not be made unless the loan requires substantially level amortization (with payments not less frequently than quarterly) over the term of the loan.

(Ord. NIRC 97-1, passed 1-15-1997)