LOAN FORECLOSURE Clause Samples

LOAN FORECLOSURE. LL&A will foreclose on a loan in default by liquidating the value in the Participant's Guaranteed Interest Division to pay off the loan. The amount liquidated shall equal the sum of the outstanding loan balance which includes unpaid principal and interest due and accrued. In no event shall the amount liquidated exceed the Participant's value in the Guaranteed Interest Division. As provided for by Federal tax law, LL&A may foreclose on the loan as soon as one or more of the following events has occurred: (a) the Participant has attained age fifty-nine and one-half (59-1/2); (b) the Participant has died; (c) the Participant has incurred a disability for which he is receiving Social Security payments; (d) the Participant has separated from service with the Contractholder; or (e) the Participant has a financial hardship. However, in no event will LL&A foreclose on a loan in default until the original loan term ends. Form No.: GAC 96-101 (NYA) 28 LL&A will notify the Participant at least thirty-one (31) days in advance of the effective date of such Loan Foreclosure to provide the Participant an opportunity to take action to remove the loan from its default status. On the effective date of such Loan Foreclosure, LL&A will deduct from the Participant's loan reserve account and from his Participant's Account balance in the Guaranteed Interest Division an amount sufficient to pay off the loan principal and interest due and accrued.