LOANS AND DIVIDENDS Clause Samples

LOANS AND DIVIDENDS. The Companies have the benefit of banking facilities and loans which may or may not have to be reimbursed as indicated in SCHEDULE 8.

LOANS AND DIVIDENDS. Section 13

LOANS AND DIVIDENDS. 13.1 ARE LOANS Loans will be available only to certain AVAILABLE? qualified contracts. The data page indicates if loans are available. The maximum loan value is 90% of the surrender value. You must specify the subaccount(s) from which the loan will be made. The amount borrowed from such subaccount(s) in connection with the loan will be transferred to the loan account. Your loan amount is equal to any amounts in your loan account, plus any accrued loan interest. Interest on your loan amount will accrue at an effective annual rate of 6.50%. Amounts in the loan account will be credited interest at an effective annual rate determined at our discretion, but not less than 3%. On each contract anniversary and on the payout date (if not on a contract anniversary), any difference between the loan amount and the amount in the loan account will be transferred pro-rata from your values in the subaccount(s) (as described above) to the loan account unless the difference is paid in cash. You may repay the loan amount in whole or in part while this contract is in force. An amount equal to the amount of the loan repayment will be transferred from the loan account to your subaccount(s) in the same proportion as the purchase payments are currently allocated, unless you request otherwise. The loan amount will be deducted from any death benefit payable. If, on any date, your loan amount causes your surrender value to be equal to or less than zero, the contract will be in default. In this case, we will send you a notice of default and tell you what payment is needed to bring your contract out of default. You will have a 60 day grace period from the date of mailing such notice during which to pay the default amount. If the required payment is not paid within the grace period, the contract will terminate without value. 13.2 WILL DIVIDENDS BE We anticipate that no dividends will be payable PAID? on your contract However, while your contract is in force, we will annually determine your contract's share in our divisible surplus. Your contract's share, if any, will be paid as a dividend on your contract anniversary. You may request that we apply your dividends by: a.) allocating them to your subaccount(s) in the same proportion as designated for purchase payments; or b.) paying them to you in cash. Unless you tell us otherwise, dividend option a.) above will be used.