§ 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)

§ 33.028 OTHER PROVISIONS.

   The Plan Administrator shall make such reasonable rules, requirements and provisions as the Plan Administrator, in his or her sole discretion, may find necessary or desirable to ensure that all plan loans meet the requirements of I.R.C. § 72(p) and that the use of plan loans is consistent with all the purposes and provisions of the plan.

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

PLAN-APPROVED DOMESTIC RELATIONS ORDER

§ 33.040 QDRO PROCEDURES.

   The Plan Administrator may (but is not required to) establish written procedures for determining whether an order directed to the plan is a plan-approved domestic relations order.

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