Exempt Loan Sample Clauses

Exempt Loan. This Section 10.03(B) specifically authorizes the Trustee to enter into an Exempt Loan transaction with respect to the Plan. The following terms and conditions will apply to any Exempt Loan authorized by this Section 10.03(B). (1) The Trustee will use the proceeds of the loan within a reasonable time after receipt only for any or all of the following purposes: (i) to acquire Employer Securities, (ii) to repay such loan, or (iii) to repay a prior Exempt Loan. Except as provided under Article XI, no Employer Security acquired with the proceeds of an Exempt Loan may be subject to a put, call or other option, or buy-sell or similar arrangement while held by and when distributed from this Plan, whether or not this Plan is then an employee stock ownership plan. (2) The interest rate of the loan may not be more than a reasonable rate of interest. (3) Any collateral the Trustee pledges to the creditor must consist only of the assets purchased by the borrowed funds and those assets the Trust used as collateral on the prior Exempt Loan repaid with the proceeds of the current Exempt Loan. (4) The creditor may have no recourse against the Trust under the loan except with respect to such collateral given for the loan, contributions (other than contributions of Employer Securities) made to the Trust to meet its obligations under the loan, and earnings attributable to such collateral and the investment of such contributions. The payment made with respect to an Exempt Loan by the Plan during a Plan Year must not exceed an amount equal to the sum of such contributions and earnings received during or prior to the year less such payments in prior years. The Advisory Committee and the Trustee must account separately for such contributions and earnings in the books of account of the Plan until the Trust repays the loan. (5) In the event of default upon the loan, the value of Plan assets transferred in satisfaction of the loan must not exceed the amount of the default, and if the lender is a Disqualified Person, the loan must provide for transfer of Plan assets upon default only upon and to the extent of the failure of the Plan to meet the payment schedule of the loan. (6) The Trustee must add and maintain all assets acquired with the proceeds of an Exempt Loan in a

Exempt Loan. To the Borrower’s knowledge, no Loan hereunder is for any purpose of Section 406 of ERISA or Section 4975 of the Code a direct or indirect loan or other transaction between the Administrative Agent or any of the Lenders and the ESOT which, if it is assumed that the Administrative Agent and Lenders are “parties in interest” and “disqualified persons” (as defined in Section 3(14) of ERISA and Section 4975 of the Code), is a non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code.

Exempt Loan. The Lender will take all reasonable steps necessary to insure that the ESOP Loan qualifies as an exempt loan under section 4975(d) of the Code (or any successor section thereto), Section 54.4975-7 of the United States Treasury Regulations (or any successor section thereto) and Section 408(e) of ERISA (or any successor section thereto).

Exempt Loan. “Exempt Loan” shall mean:

Exempt Loan. The term Exempt Loan means a loan made to the Plan by a disqualified person or that is guaranteed by a disqualified person and which satisfies the requirements of income tax regulation Section 54.4975-7(b) and Department of Labor regulation Section 2550.408b-3.

Exempt Loan. The Loan is intended to be a loan exempt from the "prohibited transaction" provisions of Sections 406(a) of ERISA and Section 4975(c)(1)(A) through (c)(1)(E) of the Code by virtue of the provisions of Section 408(b)(3) of ERISA, Section 408(e) of ERISA, Sections 4975(d)(3) and (13) of the Code and the applicable regulations thereunder. The terms of this Agreement, the Notes and the other Loan Documents, and the rights and obligations of the parties hereunder and thereunder, shall be construed and interpreted so as to comply with such provisions and regulations and with rulings thereunder. -47- 42

Exempt Loan. The indebtedness of the Trust under the ESOP Loan Documents qualifies for the exemptions set forth in Section 408(b)(3) of ERISA and Section 4975(d)(3) of the Code (and the regulations promulgated under each thereof).

Exempt Loan. Any direct or indirect loan made to the Trust by a "Disqualified Person" (as defined in Section 4975(e)(2) of the Code) or a "Party in Interest" (as defined in Section 3(14) of the Act), or any loan to the Trust the repayment of which is guaranteed by a Disqualified Person or Party in Interest. The term "Exempt Loan" includes, but is not limited to, a direct lending of cash, a purchase-money transaction, and an assumption of Trust obligation.

Exempt Loan. The Loan will be an “exempt loan”, as that phrase is defined in Treasury Regulation section 54.4975-7 and Department of Labor Regulation section 2550.408h-3, and the transaction contemplated by the Loan Documents is not a nonexempt “prohibited transaction” under section 4975 of the Code and section 406 of ERISA.

Exempt Loan. The Employer Contributions and earnings described herein must be accounted for separately on the books of account of the Plan and Trust until any Exempt Loan is repaid, as is provided in the other provisions of Article 5 of this Plan.