Repayment Terms. You must repay principal and interest of any loan within five (5) years after its effective date. If you have certified to us that the loan proceeds will be used to acquire a principal residence for yourself, you may request a loan for up to thirty (30) years. In either case, you must repay the loan in full prior to the Annuity Date. The loan, including principal and accrued interest, must be repaid in quarterly installments that are substantially level. An installment will be due each quarter on the date corresponding to the loan effective date, beginning with the first such date following the effective date of the loan. You may, however, repay the entire loan at any time. If you do so, we will bill you for any accrued interest. The loan will be considered repaid only when the interest due has also been paid. We will treat all payments you send us as Purchase Payments, unless you specifically indicate that the payment is a loan repayment. To the extent permitted by law, any loan repayments in excess of the amount then due will be applied to the principal balance of the loan. Such repayments will not change the due dates or the periodic repayment amount due for future periods. If a loan repayment is in excess of the principal balance of the loan, any excess repayment will be refunded to you. Repayments received that are less than the amount then due will be returned to you, unless otherwise required by law. If a loan repayment is not made when due, we will declare the entire remaining loan balance in default. At that time, we will provide written notification of the amount needed to bring the loan back to the current status. You will have sixty (60) days from the date on which the loan was declared in default (the “grace period”) to make the required repayment. If the required repayment is not received by us by the end of the grace period, the defaulted loan balance plus accrued interest will be repaid by a withdrawal from the Contract Value to the extent that such values are then eligible for distribution. In order for an amount to be eligible for distribution from a Qualified Plan you must meet one of the following triggering events:
Appears in 8 contracts
Samples: Insurance Contract (Separate Account a of Pacific Life Insurance Co), Insurance Contract (Separate Account a of Pacific Life Insurance Co), Insurance Contract (Separate Account a of Pacific Life & Annuity Co)
Repayment Terms. You must repay principal and interest of any loan within five (5) years after its effective date. If you have certified to us that the loan proceeds will be used to acquire a principal residence for yourself, you may request a loan for up to thirty (30) years. In either case, you must repay the loan in full prior to the Annuity Date. The loan, including principal and accrued interest, must be repaid in quarterly installments that are substantially level. An installment will be due each quarter on the date corresponding to the loan effective date, beginning with the first such date following the effective date of the loan. You may, however, repay the entire loan at any time. If you do so, we will bill bxxx you for any accrued interest. The loan will be considered repaid only when the interest due has also been paid. We will treat all payments you send us as Purchase Payments, unless you specifically indicate that the payment is a loan repayment. To the extent permitted by law, any loan repayments in excess of the amount then due will be applied to the principal balance of the loan. Such repayments will not change the due dates or the periodic repayment amount due for future periods. If a loan repayment is in excess of the principal balance of the loan, any excess repayment will be refunded to you. Repayments received that are less than the amount then due will be returned to you, unless otherwise required by law. If a loan repayment is not made when due, we will declare the entire remaining loan balance in default. At that time, we will provide written notification of the amount needed to bring the loan back to the current status. You will have sixty (60) days from the date on which the loan was declared in default (the “grace period”) to make the required repayment. If the required repayment is not received by us by the end of the grace period, the defaulted loan balance plus accrued interest will be repaid by a withdrawal from the Contract Value to the extent that such values are then eligible for distribution. In order for an amount to be eligible for distribution from a Qualified Plan you must meet one of the following triggering events:
Appears in 1 contract
Samples: Variable Annuity Contract (Separate Account a of Pacific Life & Annuity Co)
Repayment Terms. You must repay principal and interest of any loan within five (5) years after its effective date. If you have certified to us that the your loan proceeds will be used to acquire a principal residence for yourself, you may request a loan for up to thirty (30) years. In either case, you must repay the your loan in full prior to the Annuity Date. The Your loan, including principal and accrued interest, must be repaid in quarterly installments that are substantially level. An installment will be due each quarter on the date corresponding to the your loan effective date, beginning with the first such date following the effective date of the your loan. You may, however, repay the your entire loan at any time. If you do so, we will bill you for any accrued interest. The Your loan will be considered repaid only when the interest due has also been paid. We Subject to any necessary approval of state insurance authorities, we will treat all payments you send us as Purchase Payments, Payments unless you specifically indicate that the your payment is a loan repayment. To the extent permitted allowed by law, any loan repayments repayment in excess of the amount then due will be applied to the principal balance of the loan. Such repayments will not change the due dates or the periodic repayment amount due for future periods. If a loan repayment is in excess of the principal balance of the loan, any excess repayment will be refunded to you, unless such amount is sufficient to pay the balance of your loan. Repayments received that are less than the amount then due will be returned to you, unless otherwise required by law. If a loan repayment is not made when due, we will declare the entire remaining loan balance in default. At that time, we will provide send written notification of the amount needed to bring the loan back to the current status. You will have sixty (60) days from the date on which the loan was declared in default (the “"grace period”") to make the required repayment. If the required repayment is not received by us by the end of the grace period, the defaulted loan balance plus accrued interest will be repaid by a withdrawal from the your Contract Value to the extent that such values are then eligible for distribution. In order for an amount to be eligible for distribution from a Qualified Plan you must meet one of the following six triggering events:. They are: attainment of age 59 1/2, separation from service, death, disability, plan termination, and financial hardship. To the extent such values are not then eligible for distribution, the defaulted loan balance plus accrued interest will be considered a "Deemed Distribution" and that portion of any Contract Value needed to repay the Contract Debt will be withdrawn when such Contract Values become eligible for distribution. The withdrawal will be subject to the withdrawal charge. If there is a "Deemed Distribution" under your Contract any future withdrawals will first be applied as repayment of the defaulted Contract Debt, including accrued interest and withdrawal charges and charges for applicable taxes, to the extent allowed by law. Any amounts withdrawn and applied as repayment of Contract Debt will be withdrawn first from your Loan Account and then from your Investment Options on a proportionate basis relative to the Account Value in each Investment Option. If you have an outstanding loan that is in default, the defaulted Contract Debt will be considered a withdrawal for the purpose of calculating any death benefit proceeds payable under this Contract. The terms of any such loan are intended to qualify for the exception in Code Section 72(p)(2) so that the distribution of the loan proceeds will not constitute a distribution that is taxable to you. To that end, these loan provisions will be interpreted to ensure and maintain such tax qualification, despite any other provisions to the contrary. We reserve the right to amend your Contract to reflect any clarifications that may be needed or are appropriate to maintain such tax qualification or to conform any terms of our loan arrangement with you to any applicable changes in the tax qualification requirements. We will send you a copy of any such amendment. If you refuse such an amendment, it may result in adverse tax consequences to you. Adverse tax consequences may result if you fail to meet the repayment requirements of your loan. A "Deemed Distribution" will be considered a currently taxable distribution, and may be subject to federal tax withholding and a federal early withdrawal penalty tax, regardless of when such unpaid amounts are repaid. The tax and other Qualified Plan rules relating to Contract loans are complex and in many cases unclear. For these reasons, and because the rules vary depending on the individual circumstances of each Contract, we advise that you consult with a qualified tax adviser before exercising the loan provisions of your Contract. If your Contract is a Non-Qualified Contract, or if your Qualified Plan does not permit loans, loans under this Contract will not be available to you.
Appears in 1 contract
Repayment Terms. You must repay principal and interest of any loan within five (5) years after its effective date. If you have certified to us that the loan proceeds will be used to acquire a principal residence for yourself, you may request a loan for up to thirty (30) years. In either case, you must repay the loan in full prior to the Annuity Date. The loan, including principal and accrued interest, must be repaid in quarterly installments that are substantially level. An installment will be due each quarter on the date corresponding to the loan effective date, beginning with the first such date following the effective date of the loan. You may, however, repay the entire loan at any time. If you do so, we will bill xxxx you for any accrued interest. The loan will be considered repaid only when the interest due has also been paid. We will treat all payments you send us as Purchase Payments, Payments unless you specifically indicate that the payment is a loan repayment. To the extent permitted by law, any loan repayments in excess of the amount then due will be applied to the principal balance of the loan. Such repayments will not change the due dates or the periodic repayment amount due for future periods. If a loan repayment is in excess of the principal balance of the loan, any excess repayment will be refunded to you. Repayments received that are less than the amount then due will be returned to you, unless otherwise required by law. If a loan repayment is not made when due, we will declare the entire remaining loan balance in default. At that time, we will provide written notification of the amount needed to bring the loan back to the current status. You will have sixty (60) days from the date on which the loan was declared in default (the “"grace period”") to make the required repayment. If the required repayment is not received by us by the end of the grace period, the defaulted loan balance plus accrued interest will be repaid by a withdrawal from the Contract Value to the extent that such values are then eligible for distribution. In order for an amount to be eligible for distribution from a Qualified Plan you must meet one of the following six triggering events:. They are: (a) attainment of age 59 1/2; (b) separation from service; (c) death; (d) disability; (e) plan termination; and (f) financial hardship. To the extent such values are not then eligible for distribution, the defaulted loan balance plus accrued interest will be considered a "Deemed Distribution" and that portion of any Contract Value needed to repay the Contract Debt will be withdrawn when such Contract Values become eligible for distribution. The withdrawal will be subject to the withdrawal charge. If there is a Deemed Distribution under the Contract any future withdrawals will first be applied as repayment of the defaulted Contract Debt, including accrued interest, withdrawal charges and charges for applicable taxes, to the extent allowed by law. Any amounts withdrawn and applied as repayment of Contract Debt will be withdrawn first from the Loan Account and then from your Investment Options on a proportionate basis relative to the Account Value in each Investment Option. If you have an outstanding loan that is in default, the defaulted Contract Debt will be considered a withdrawal for the purpose of calculating any death benefit proceeds payable under this Contract. The terms of any such loan are intended to qualify for the exception in Code Section 72(p)(2) so that the distribution of the loan proceeds will not constitute a distribution that is taxable to you. To that end, these loan provisions will be interpreted to ensure and maintain such tax qualification, despite any other provisions to the contrary. We reserve the right to amend the Contract to reflect any clarifications that may be needed or are appropriate to maintain such tax qualification or to conform any terms of our loan arrangement with you to any applicable changes in the tax qualification requirements. We will provide you with a copy of any such amendment. If you refuse such an amendment, it may result in adverse tax consequences to you. Adverse tax consequences may result if you fail to meet the repayment requirements of the loan. A Deemed Distribution will be considered a currently taxable distribution, and may be subject to federal tax withholding and a federal early withdrawal penalty tax, regardless of when such unpaid amounts are repaid. The tax and other Qualified Plan rules relating to Contract loans are complex and in many cases unclear. For these reasons, and because the rules vary depending on the individual circumstances of each Contract, we advise that you consult with a qualified tax adviser before exercising the loan provisions of this Contract. If this Contract is a Non-Qualified Contract, or if your Qualified Plan does not permit loans, loans under this Contract will not be available to you.
Appears in 1 contract
Samples: Insurance Contract (Separate Account a of Pacific Life & Annuity Co)
Repayment Terms. You must repay principal and interest of any loan within five (5) years after its effective date. If you have certified to us that the loan proceeds will be used to acquire a principal residence for yourself, you may request a loan for up to thirty (30) years. In either case, you must repay the loan in full prior to the Annuity Date. The loan, including principal and accrued interest, must be repaid in quarterly installments that are substantially level. An installment will be due each quarter on the date corresponding to the loan effective date, beginning with the first such date following the effective date of the loan. You may, however, repay the entire loan at any time. If you do so, we will bill you for any accrued interest. The loan will be considered repaid only xxxy when the interest due has also been paid. We will treat all payments you send us as Purchase Payments, Payments unless you specifically indicate that the payment is a loan repayment. To the extent permitted by law, any loan repayments in excess of the amount then due will be applied to the principal balance of the loan. Such repayments will not change the due dates or the periodic repayment amount due for future periods. If a loan repayment is in excess of the principal balance of the loan, any excess repayment will be refunded to you. Repayments received that are less than the amount then due will be returned to you, unless otherwise required by law. If a loan repayment is not made when due, we will declare the entire remaining loan balance in default. At that time, we will provide written notification of the amount needed to bring the loan back to the current status. You will have sixty (60) days from the date on which the loan was declared in default (the “"grace period”") to make the required repayment. If the required repayment is not received by us by the end of the grace period, the defaulted loan balance plus accrued interest will be repaid by a withdrawal from the Contract Value to the extent that such values are then eligible for distribution. In order for an amount to be eligible for distribution from a Qualified Plan you must meet one of the following six triggering events:. They are: (a) attainment of age 59 1/2; (b) separation from service; (c) death; (d) disability; (e) plan termination; and (f) financial hardship. To the extent such values are not then eligible for distribution, the defaulted loan balance plus accrued interest will be considered a "Deemed Distribution" and that portion of any Contract Value needed to repay the Contract Debt will be withdrawn when such Contract Values become eligible for distribution. If there is a Deemed Distribution under the Contract any future withdrawals will first be applied as repayment of the defaulted Contract Debt, including accrued interest and charges for applicable taxes, to the extent allowed by law. Any amounts withdrawn and applied as repayment of Contract Debt will be withdrawn first from the Loan Account and then from your Investment Options on a proportionate basis relative to the Account Value in each Investment Option. If you have an outstanding loan that is in default, the defaulted Contract Debt will be considered a withdrawal for the purpose of calculating any death benefit proceeds payable under this Contract. The terms of any such loan are intended to qualify for the exception in Code Section 72(p)(2) so that the distribution of the loan proceeds will not constitute a distribution that is taxable to you. To that end, these loan provisions will be interpreted to ensure and maintain such tax qualification, despite any other provisions to the contrary. We reserve the right to amend the Contract to reflect any clarifications that may be needed or are appropriate to maintain such tax qualification or to conform any terms of our loan arrangement with you to any applicable changes in the tax qualification requirements. We will provide you with a copy of any such amendment. If you refuse such an amendment, it may result in adverse tax consequences to you. Adverse tax consequences may result if you fail to meet the repayment requirements of the loan. A Deemed Distribution will be considered a currently taxable distribution, and may be subject to federal tax withholding and a federal early withdrawal penalty tax, regardless of when such unpaid amounts are repaid. The tax and other Qualified Plan rules relating to Contract loans are complex and in many cases unclear. For these reasons, and because the rules vary depending on the individual circumstances of each Contract, we advise that you consult with a qualified tax adviser before exercising the loan provisions of this Contract. If this Contract is a Non-Qualified Contract, or if your Qualified Plan does not permit loans, loans under this Contract will not be available to you.
Appears in 1 contract
Samples: Contract (Separate Account a of Pacific Life & Annuity Co)