EFFECT OF LOAN ON PARTICIPANT'S ACCOUNT. When a Participant takes a loan, LL&A will subdivide his Participant's Account balance in the Guaranteed Interest Division by establishing a loan reserve account in an amount initially equal to the initial loan amount. Funds held in the loan reserve account are held as security for the loan and will accrue interest at a rate which is three percent (3.0%) below the loan interest rate but will never be less than the minimum interest rate of three percent (3.0%) as specified in Section 4.
Appears in 3 contracts
Samples: Group Variable Annuity Contract (Lincoln Life & Annuity Var Ann Sep Acct L Group Var Ann Ii), Group Variable Annuity Contract (Lincoln Life & Annuity Var Ann Sep Acct L Group Var Ann Ii), Group Variable Annuity Contract (Lincoln Life & Annuity Var Ann Sep Acct L Group Var Ann Ii)
EFFECT OF LOAN ON PARTICIPANT'S ACCOUNT. When a Participant takes a loan, LL&A will subdivide his Participant's Account balance in the Guaranteed Interest Division by establishing a loan reserve account in an amount initially equal to the initial loan amount. Funds held in the loan reserve account are held as security for the loan and will accrue interest at a rate which is three percent (3.03%) below the loan interest rate but will never be less than the minimum interest rate of three percent (3.0%) as specified in Section 4.
Appears in 1 contract
Samples: Group Variable Annuity Contract (Lincoln Life & Annuity Var Ann Sep Acct L Group Var Ann Iii)
