Xxxault Sample Clauses

Xxxault. A loan will be considered in default and the outstanding loan amount is due immediately if one or more payments are made more than 90 days late. If a payment is made late, but not more than 90 days late, the loan will not be in default. The Employer may establish and collect late fees for late payments in an amount considered reasonable by commercial lending institutions, and failure to timely pay these fees will be considered a default of the entire loan, Additionally, a loan will be considered in default if it is accelerated under Section 2(E) of this Article. The Company may also suspend the obligation to repay loans during any leave of absence or other period for which loan payments do not have to be made as permitted by Code Section 414(u) or Code Section 72(p) and final or proposed regulations issued thereunder without the loan being treated as a taxable distribution or tax purposes. Any such suspension shall be made on a uniform basis to all similarly situated Participants. If the portion of the Participant's vested Account balances securing the loan is or becomes insufficient to protect the Plan from a loss of principal or interest, the Employer will enforce its security interest as soon as practicable after default (while maintaining the Plan's qualified status). However, if the security is adequate, it is within the Employer's discretion whether it is prudent to enforce the security interest as soon as practicable, to delay this enforcement, or to accept late payments after a default occurs.