Common use of Policy Loans Clause in Contracts

Policy Loans. The Owner may obtain a loan from the Company in an amount that, when added to existing policy debt, is not more than the loan value. On the date a loan is made, the amount invested for this policy in the Separate Account will be reduced by the amount of the loan. The reduction will be allocated to each Division in proportion to the amounts in each Division. On the date a loan repayment is made, or the date accrued interest is paid, the amount invested for this policy in the Separate Account will be increased by the amount of the payment. The increase will be allocated to the Divisions of the Separate Account according to the allocation of net premiums currently in effect.