Loans to Participants. Upon written application of a Participant submitted to the Company at least (30) days (or such shorter period as the Company allows) prior to a Valuation Date, the Company may direct the Trustees to lend to such Participant such amount or amounts from his accounts under the Plan up to fifty percent (50%) of the total aggregate value of the vested portion of such Participant's accounts (determined as of such Valuation Date, provided that the aggregate amount of all outstanding loans, including accrued interest, from the Plan to a Participant shall not exceed $50,000, reduced by the amount of any loan repayment made during the one (1) year period ending on the day before the date on which such loan is to be made. The minimum amount which may be loaned to a Participant under this Section 7.10 shall be $1,000. A Participant may not have more than three loans outstanding under this Section 7.10 at any given time. Loans shall be made available to all Participants on a reasonably equivalent basis, except that the Company may make reasonable distinctions based upon credit-worthiness, other obligations of the Participant and other factors that may adversely affect the ability to assure repayment. Loans approved under this Section 7.10 shall be made as soon as reasonably practicable after the Valuation Date next following timely receipt by the Company of the Participant's written application. Each such loan shall be made at such reasonable rate of interest as the Company may determine, and shall be subject to such other terms and conditions as the Company may deem proper, and shall be evidenced by the promissory note of the Participant and secured by at least fifty percent (50%) of the Participant's interest in the Plan. Each such loan shall be repaid by such means as may be authorized by the Company, shall be amortized over the term of the loan in level payments made not less frequently than quarterly, and shall be repaid within five (5) years unless such loan is used to acquire a dwelling unit which within a reasonable period of time is to be used (determined at the time the loan is made) as the principal residence of the Participant in which case the repayment period shall not exceed twenty (20) years. Each such loan shall be deemed to be an investment made at the direction of such Participant and shall be credited to a separate investment account for the borrowing Participant. An 89 amount equal to the principal amount of such loan when made shall be charged to the interests of such Participant's accounts as designated by the Participant. Subject to such restrictions as may be applicable to the particular Investment Funds, in the event of a loan of less than the entire balance of a Participant's account, the loan amounts shall be withdrawn from the Investment Funds pro rata in proportion to the interest of such account in each of such Investment Funds. All interest and loan repayments shall be reinvested in the Investment Funds in accordance with the most recent investment election of such Participant with respect to contributions credited to such accounts. All expenses incurred by the Company and the Trustees, including reasonable attorneys' fees and court costs, as a result of a default by a Participant shall be charged against the Participant's accounts. If any loan under this Section 7.10 is in default, as determined in accordance with the procedures established by the Company, when any part or all of the amount standing to the credit of a Participant's accounts becomes distributable to such Participant or his Beneficiary, the Company shall direct the Trustees to apply the amount of such distributable amount in payment of the entire outstanding loan principal, and any interest theretofore accrued, before distributing the balance, if any, to the Participant or his Beneficiary."
Appears in 1 contract
Loans to Participants. Upon written application of a Participant submitted to the Company at least thirty (30) days (or such shorter period as the Company Committee allows) prior to a Valuation Date, the Company Committee may direct the Trustees to lend to such Participant such amount or amounts from his accounts under the Plan up to fifty percent (50%) of the total aggregate value of the vested portion of such Participant's accounts (determined as of such Valuation Date). Notwithstanding the foregoing, provided that the aggregate amount of all outstanding loans, including accrued interest, from the Plan to a Participant shall not exceed $50,000, reduced by the amount of any loan repayment made during the one (1) year period ending on the day before the date on which such loan is to be made. The minimum amount which may be loaned to a Participant under this Section 7.10 shall be $1,000. A Participant may not have more than three two loans outstanding under this Section 7.10 at any given time. Loans shall be made available to all Participants on a reasonably equivalent basis, except that the Company Committee may make reasonable distinctions based upon credit-worthiness, other obligations of the Participant and other factors that may adversely affect the ability to assure repayment. The decision as to whether a loan shall or shall not be made in any case shall rest solely within the discretion of the Committee, such discretion to be exercised consistently with the provisions of Section 9.05 and with such procedures as the Committee may establish pursuant to this Section 7.10. Loans approved under this Section 7.10 shall be made as soon as reasonably practicable after the Valuation Date next following timely receipt by the Company Committee of the Participant's written application. Each such loan shall be made at such reasonable rate of interest as the Company Committee may determine, and shall be subject to such other terms and conditions as the Company Committee may deem proper, and shall be evidenced by the promissory note of the Participant and secured by at least fifty percent (50%) of the Participant's interest in the Plan. Each such loan shall be repaid by such means as may be authorized by the CompanyCommittee, shall be amortized over the term of the loan in level payments made not less frequently than quarterly, and shall be repaid within five (5) years unless such loan is used to acquire a dwelling unit which within a reasonable period of time is to be used 113 (determined at the time the loan is made) as the principal residence of the Participant in which case the repayment period shall not exceed twenty (20) years. Each such loan shall be deemed to be an investment made at the direction of such Participant and shall be credited to a separate investment account for the borrowing Participant. An 89 amount equal to the principal amount of such loan when made shall be charged to the interests of such Participant's accounts under the Plan as designated by the Participant. Subject A Participant may specify that a loan under this Section 7.10 is to be charged to his interest in one or more specific Investment Media in which his accounts are invested. Unless so specified, the loan amounts shall be made out of the interest of such account in each Investment Medium in accordance with the proportion which the interest of such account in such Investment Medium bears to the total value of such accounts, subject however to such restrictions as may be applicable to the particular Investment Funds, in the event of a loan of less than the entire balance of a Participant's account, the loan amounts shall be withdrawn from the Investment Funds pro rata in proportion to the interest of such account in each of such Investment Funds. All interest and loan repayments shall be reinvested in the Investment Funds in accordance with the most recent investment election of such Participant with respect to contributions credited to such accounts. All expenses incurred by the Company and the Trustees, including reasonable attorneys' fees and court costs, as a result of a default by a Participant shall be charged against the Participant's accounts. If any loan under this Section 7.10 is in default, as determined in accordance with the procedures established by the Company, when any part or all of the amount standing to the credit of a Participant's accounts becomes distributable to such Participant or his Beneficiary, the Company shall direct the Trustees to apply the amount of such distributable amount in payment of the entire outstanding loan principal, and any interest theretofore accrued, before distributing the balance, if any, to the Participant or his BeneficiaryMedia."
Appears in 1 contract
Loans to Participants. Upon written Subject to such rules and regulations as may from time to time be promulgated by the Committee, the Committee, upon application of a Participant submitted to the Company at least (30) days (or such shorter period as the Company allows) prior to a Valuation Datethat term is defined for purposes of this Section 12.8), the Company may may, in its sole and absolute discretion, direct the Trustees Trustee to lend make a loan or loans to such Participant such amount or amounts from his accounts Accounts, in the order and upon such terms as the Committee shall establish, and subject to the requirements of this Section 12.8. For purposes of this Section 12.8 only, the term “Participant” shall include ) ( former Participants and Beneficiaries who are “parties in interest” with respect tothe Plan, as that term is defined under the Plan up to fifty percent (50%Section 3(14) of ERISA. The maximum amount that may be loaned is the total aggregate value lesser of: (i) $50,000.00, reduced by the highest outstanding balance of the vested portion of such Participant's accounts (determined as of such Valuation Date, provided that the aggregate amount of all outstanding loans, including accrued interest, any prior loans from the Plan to a the Participant shall not exceed $50,000, reduced by the amount of any loan repayment made during the one (1) one-year period ending on the day before the date on which such loan is made, or (ii) one-half of the value of the Participant’s vested Individual Account balance as of the Valuation Date next preceding the date on which the Committee receives the Participant’s loan application. In determining the maximum amount allowed hereunder as a loan, all loans to a Participant from all plans of the Employer and any Affiliate are to be madeaggregated. The minimum amount which that may be loaned is One Thousand Dollars ($1,000.00), and no more than two loans may be outstanding at any time, except to the extent otherwise provided in the policies and procedures adopted by the Committee, the terms of which are incorporated herein, and specifically providing that the maximum number of loans that may be outstanding at any time on behalf of a Participant participant who was previously an employee of Northern Tier Energy LLC, on June 1,2017, including employees who return to active employment of any of such entities subsequent to that date following a return from an approved leave of absence, as part of the acquisition of Western Refining, Inc., and who, on the date of the merger of the Northern Tier Energy Retirement Savings Plan (the “Northern Tier Plan”) into this Plan had up to five (5) outstanding loans under this Section 7.10 the Northern Tier Plan, shall be $1,000. A Participant may not have more than three the number of outstanding loans outstanding under this Section 7.10 at any given timethe Northern Tier Plan on the date of such merger. Loans shall be made available to all Participants on a reasonably equivalent basis, except that the Company may make reasonable distinctions based upon credit-worthiness, other obligations of the Participant and other factors that may adversely affect the ability to assure repayment. Loans approved under this Section 7.10 shall be made as soon as reasonably practicable after the Valuation Date next following timely receipt granted by the Company of the Participant's written applicationCommittee in a uniform and nondiscriminatory manner. Each such loan shall be made at such bear a reasonable rate of interest interest, as determined by the Company may determineCommittee, and shall be subject to such other terms adequately secured, with substantially level amortization and conditions as the Company may deem proper, and shall be evidenced by the promissory note of the Participant and secured by at least fifty percent (50%) of the Participant's interest in the Plan. Each such loan shall be repaid by such means as may be authorized by the Company, shall be amortized over the term of the loan in level payments made not less frequently than quarterly, and shall be repaid within by its terms require repayment in no later than five (5) years unless such years. Notwithstanding the foregoing, a loan is used made prior to acquire December 2, 2014 from a dwelling unit which within qualified plan of QEP Resources, Inc. (a reasonable period “QEP Plan”) to a Participant who was previously an employee of time is QEP Resources, Inc. (or its affiliates) hired by an Employer on December 2, 2014 (or subsequent to be used (determined at the time the loan is made) that date following a return from an approved leave of absence), as the principal residence part of the Participant in acquisition by Tesoro Logistics LP from QEP Resources, Inc. of its wholly owned natural gas pipeline and processing business, QEP Field Services, LLC, which case loan satisfied the repayment period shall not exceed twenty (20) years. Each such loan shall be deemed provisions under the QEP Plan for a “home loan”, within the meaning of Section 72(p)(2)(B)(ii), and which is contributed to be an investment made at the direction of such Participant and shall be credited to a separate investment account for the borrowing Participant. An 89 amount equal to the principal amount of such loan when made shall be charged to the interests of such Participant's accounts this Plan as designated by the Participant. Subject to such restrictions as may be applicable to the particular Investment Funds, in the event all or any portion of a loan of less than the entire balance of a Participant's accountRollover Contribution, the loan amounts shall be withdrawn from the Investment Funds pro rata in proportion to the interest of such account in each of such Investment Funds. All interest and loan repayments shall be reinvested in the Investment Funds in accordance with the most recent investment election provisions of such Participant with respect Section 4.11 hereof, may continue to contributions credited to such accounts. All expenses incurred by the Company and the Trustees, including reasonable attorneys' fees and court costs, as a result of a default by a Participant shall be charged against the Participant's accounts. If any loan under this Section 7.10 is in defaultrepaid over its term, as determined in accordance with on the procedures established by the Company, when any part or all of the amount standing date on which it is contributed to the credit Plan as a Rollover Contribution. Furthermore, notwithstanding the foregoing, a loan made prior to June 29, 2018 from a qualified plan of Western Refining or its wholly- owned subsidiary, Northern Tier Energy LLC (each, a Participant's accounts becomes distributable “Western Plan”) to such a Participant who was previously an employee of Western Refining, Inc. (or his Beneficiaryits affiliates), the Company shall direct the Trustees including its wholly-owned subsidiary, Northern Tier Energy LLC, on ‘ June 1, 2017, including employees who return to apply the amount active employment of such distributable amount in payment of the entire outstanding loan principal, and any interest theretofore accrued, before distributing the balance, if any, to the Participant or his Beneficiary."of
Appears in 1 contract
Samples: Marathon Petroleum Corp
Loans to Participants. Upon written application of The Administrator may, in its sole discretion, establish a loan program and direct the Trustee to make a loan to a Participant submitted or Beneficiary, other than shareholder-Employees or Owner-Employees. (A) Loans made pursuant to the Company at least (30) days (or this program shall be subject to such shorter period rules as the Company allows) prior to a Valuation DateAdministrator, the Company may direct the Trustees to lend to such Participant such amount or amounts from his accounts under the Plan up to fifty percent (50%) of the total aggregate value of the vested portion of such Participant's accounts (determined as of such Valuation Datein its sole discretion, shall adopt, provided that such rules and regulations do not discriminate in favor of officers, shareholders or highly compensated Employees of the aggregate amount Employer and that loans shall be available to all Participants or Beneficiaries on a non-discriminatory basis. No loans shall be made under this Section 7.1 to any shareholder-Employees or Owner-Employees. (B) Any loan to a Participant made under this program shall comply with the following terms and conditions: (1) An application for a loan shall be made in writing to the Administrator, whose action thereon shall be final. (2) The loan shall be adequately secured, pursuant to Section 5, below. (3) The loan shall bear a reasonable rate of interest, as determined by the Plan Administrator in its sole discretion. The interest rate shall be comparable to the rate charged by commercial lenders in the geographical area of the Employer for similar types of loans, as determined by conditions customarily taken into account by such lenders in the making of similar types of loans. (4) A loan shall be made for fixed period of time, as determined by the Plan Administrator in its sole discretion, which in no event shall exceed five (5) Years from the date of such loan, except that such five (5) Year repayment rule shall not apply to any loan used to acquire a dwelling unit which, within a reasonable period of time, will be used as a principal residence of the Participant. Security for Loans to Participants is described in section 10.6. (5) No distribution shall be made to any Active Participant, inactive Participant, Former Participant or Beneficiary of any such Participant unless and until all outstanding unpaid loans, including accrued interestinterest thereon, from have been satisfied. (6) Loans shall be made available to all Participants and Beneficiaries on a reasonably equivalent basis. (7) No loan to any Participant or Beneficiary can be made to the Plan extent that the amount of the loan, when added to a the outstanding balance of all other loans to the Participant shall not or Beneficiary, would exceed the lesser of: (a) $50,000, 50,000 reduced by the amount excess (if any) of any loan repayment made the highest outstanding balance of loans during the one (1) year period ending on the day before the date on which such loan is to be made, over the outstanding balance of loans from the Plan on the date the loan is made, or (b) one-half the value of the vested account balance of the Participant. The minimum amount which may be loaned to For the purpose of the above limitation, all loans from all qualified plans of the Affiliated Employers are aggregated. (8) In the event of default, foreclosure on and attachment of security will not occur until a Participant under this Section 7.10 shall be $1,000distributable event occurs in the Plan. A Participant may not have more than three loans outstanding under this Section 7.10 at any given time. (9) Loans shall not be made available to all Participants on a reasonably equivalent basis, except that the Company may make reasonable distinctions based upon credit-worthiness, other obligations of the Participant and other factors that may adversely affect the ability to assure repayment. Loans approved under this highly compensated employees (as defined in Section 7.10 shall be made as soon as reasonably practicable after the Valuation Date next following timely receipt by the Company of the Participant's written application. Each such loan shall be made at such reasonable rate of interest as the Company may determine, and shall be subject to such other terms and conditions as the Company may deem proper, and shall be evidenced by the promissory note of the Participant and secured by at least fifty percent (50%414(g) of the Participant's interest Code) in the Plan. Each such loan shall be repaid by such means as may be authorized by the Company, shall be amortized over the term of the loan in level payments made not less frequently than quarterly, and shall be repaid within five (5) years unless such loan is used to acquire a dwelling unit which within a reasonable period of time is to be used (determined at the time the loan is made) as the principal residence of the Participant in which case the repayment period shall not exceed twenty (20) years. Each such loan shall be deemed to be an investment made at the direction of such Participant and shall be credited to a separate investment account for the borrowing Participant. An 89 amount equal to the principal amount of such loan when made shall be charged to the interests of such Participant's accounts as designated by the Participant. Subject to such restrictions as may be applicable to the particular Investment Funds, in the event of a loan of less greater than the entire balance amount made available to other Employees. (10) A Participant must obtain the consent of a Participant's account, the loan amounts shall be withdrawn from the Investment Funds pro rata in proportion to the interest of such account in each of such Investment Funds. All interest and loan repayments shall be reinvested in the Investment Funds in accordance with the most recent investment election of such Participant with respect to contributions credited to such accounts. All expenses incurred by the Company and the Trustees, including reasonable attorneys' fees and court costs, as a result of a default by a Participant shall be charged against the Participant's accounts. If any loan under this Section 7.10 is in default, as determined in accordance with the procedures established by the Company, when any part or all of the amount standing to the credit of a Participant's accounts becomes distributable to such Participant or his Beneficiary, the Company shall direct the Trustees to apply the amount of such distributable amount in payment of the entire outstanding loan principal, and any interest theretofore accrued, before distributing the balanceSpouse, if any, to use of the Participant Accrued Benefit as security for the loan. Spousal consent shall be obtained no earlier than the beginning of the 90-day period that ends on the date on which the loan is to be so secured. The consent must be in writing, must acknowledge the effect of the loan, and must be witnessed by a Plan representative or his Beneficiary."notary public. Such consent shall thereafter be binding with respect to the consenting Defined Contribution Plan and Trust Document
Appears in 1 contract
Samples: New England Funds Trust I