Common use of Actions Upon Default Clause in Contracts

Actions Upon Default. In the event of default, the Administrator will direct the Trustee to report the default as a taxable distribution. As soon as a Plan withdrawal or distribution to such Participant would otherwise be permitted, the Administrator will direct the Trustee to execute upon its security interest in the Participant’s Account by segregating the unpaid loan balance from the Account, including interest to the date of default, and to distribute the note to the Participant.