Common use of EVIDENCE AND TERMS OF LOAN Clause in Contracts

EVIDENCE AND TERMS OF LOAN. The Committee will document every loan in the form of a promissory note signed by the participant for the face amount of the loan, together with a commercially reasonable rate of interest. The Committee must reevaluate interest rates for loans made more than one month since the last loan made by the Plan. A loan will provide a fixed rate of interest equal to the current prime interest rate as published from time to time in the Money section of USA Today, plus one percent (1%). The Committee will determine whether the interest rate is commercially reasonable at the time it approves the loan. The loan must provide for monthly payments under a level amortization schedule with payments deducted via a monthly debit to the participant's bank account with the first payment deducted no later than 30 days after the date of the note. [The Committee will suspend payments for a period not exceeding one year which occurs during an approved leave of absence.] The Committee will fix the term for repayments of any loan. However, in no instance may the term of repayment be greater than five years. The committee may fix the term for repayment of a home loan for a period not to exceed five years. A "home loan" is a loan used to acquire a dwelling unit which, within a reasonable time, the participant will use as a principal residence. Participants should note the law treats the amount of any loan not repaid five years after the date of the loan as a taxable distribution on the last day of the five year period or, if sooner, at the time the loan is in default. If a participant extends a non-home loan having a five year or less repayment term beyond five years, the balance of the loan at the time of the extension is a taxable distribution to the participant.

EVIDENCE AND TERMS OF LOAN. The Committee will document every loan in the form of a promissory note signed by the participant for the face amount of the loan, together with a commercially reasonable rate of interest. The Committee must reevaluate interest rates for loans made more than one month since the last loan made by the Plan. A loan will provide a fixed rate of interest equal to the current prime interest rate as published from time to time in the Money section of USA Today, plus one percent (1%). The Committee will determine whether the interest rate is commercially reasonable at the time it approves the loan. The loan must provide for monthly payments under a level amortization schedule with payments deducted via a monthly debit to the participant's bank account with the first payment deducted no later than 30 days after the date of the note. [The Committee will suspend payments for a period not exceeding one year which occurs during an approved leave of absence.] The Committee will fix the term for repayments of any loan. However, in no instance may the term of repayment be greater than five years. The committee Committee may fix the term for repayment of a home loan for a period not to exceed five years. A "home loan" is a loan used to acquire a dwelling unit which, within a reasonable time, the participant will use as a principal residence. Participants should note the law treats the amount of any loan not repaid five give years after the date of the loan as a taxable distribution on the last day of the five year period or, if sooner, at the time the loan is in default. If a participant extends a non-home loan having a five year or less repayment term beyond five years, the balance of the loan at the time of the extension is a taxable distribution to the participant.