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28 <br />(1) $50,000, reduced by the excess (if any) of <br />(i) The highest outstanding balance of loans from the Plan during the one (1) year period <br />ending on the day before the date on which the loan is made; or • <br />(ii) The outstanding balance of loans from the Plan on the date on which such loan is made; or <br />{2) One-half of the value of the Participant's interest in all of leis or her Accounts ut:der this Plan. <br />(g) Application fot- Loatt. The Participant must give the Employer adequate written notice, as determined by the <br />Employer, of the amount and desired time for receiving a loan. No more than one (1) loan may be made by <br />the Plan to a Participant's in any calendar year. No loan shall be approved if an existing loan from the Plan to <br />the Participant is in default to an}~ extent. <br />{h) Length of Lorttt. tiny loan issued shall require the Participant to repay the loan in substantially equal <br />installments of principal and interest, at least month(}; aver a period that does tot exceed five (5) years from <br />the dare of the loan; provided, however, that if the proceeds of the loan are applied b}~ the Participant to <br />acquire any dwelling unit that is to be used within a reasonable time (determined ar the rime of the loan is <br />made) after the loan is made as the principal residence of the Participant, the five (S} year limit shall not app(}: <br />In this event, the period of repayment shall not exceed a reasonable period determined by the Employer. <br />Principal installments and intcrest payments otherwise due may be suspended for ^p to one (I) year during <br />alt authorized leave of absence, if the promissory note so provides, but not beyond the original term permitted <br />under this subsection (h), with a revised payment schedule (within such term) instituted at the end of such <br />period of suspension. <br />(i) Prepaynzertt. The Participant shall be permitted to repay the loan in whole or in parr at any time prior to <br />maturity, without penalt}: <br />(j} Pratttissory IUote. The Ivan shall be evidenced b}~ a promissory note executed by the Participant and delivered ro <br />the Empio}'er, and shall bear interest at a reasonable rate determined by the Emplo}'er. <br />(k) Security. 'fhe loan shall be secured by an assignment of the participant's right, title and interest in and to his or <br />her tlccowu. <br />(1) llssigtrntent a• Pledge. For the purposes of paragraphs (f) and (g), assignment or pledge of any portion of the <br />Participant's intcrest in the Plan and a loan, pledge, or assignment with respect to any insurance contract <br />purchased under the Plan, will be treated as a loan. <br />(m} Other Tertrrs uttd Conditions. The Employer shall fix such other terms and conditions of the loan as it deems <br />necessary to comp(}' with legal requirements, to maintain the qualification of the Plan and Trust under Section <br />457 of the Code, or to prevent dze treatment of the loan for tax purposes as a distribution to the Participant. <br />The Employer, in its discretion for any reason, may also fix other terms and conditions of the loan, including, <br />but not limited to, the provision of grace periods following an event of default, not inconsistent with. the <br />provisions of this Article and Section 72(p) of the Code, and any applicable regulations thereunder. <br />8.03 Participant Loan Accounts. <br />{a) Upon approval of a loan to a Participant by the Employer, an amount not itz excess of the loan shall be <br />transferred from the Participant's other investment funds}, described it: Section G.05 of the Phan, to the <br />Participant's loan account as of the Accounting Date immediately preceding the agreed upon date on which <br />the loan is to be made. <br />13 <br />