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<br />(v) <br /> <br />(vi) <br /> <br />(vii) <br /> <br />(iv) <br /> <br />Loan Term and Interest Rate. The maximum term over which a loan <br />may be repaid is five (5) years (fifteen (15) years if the PLAN <br />SPONSOR permits loans for the purchase of a P ARTlCIP ANT's <br />principal residence). Each loan shall be amortized in substantially <br />equal payments consisting of principal and interest during the term of <br />the loan, except that the amount of the final payment may be higher or <br />lower. The ADMINISTRATOR shall establish the interest rate for any <br />loan. <br /> <br />Loan Frequency. Each Participant may have only one (1) PLAN loan <br />outstanding at any given time. A PLAN loan which is in default, even <br />if the defaulted loan was treated as a "deemed distribution" under <br />federal regulations, shall be treated as an outstanding loan until such <br />P ARTICIP ANT'S account balance is offset by the amount of principal <br />and accrued interest under the loan. A P ARTICIP ANT will be granted <br />a loan no more frequently than two (2) times in any twelve (12) month <br />period. <br /> <br />Default. The P ARTICIP ANT must pay the full amount of each loan <br />payment (principal and interest) on the date that it is due. Failure to <br />make such a payment by the due date, or within any cure period <br />established by the ADMINISTRATOR, shall cause the <br />P ARTICIP ANT to be in default for the entire amount of the loan, <br />including any accrued interest. A loan will also be in default if the <br />P ARTICIP ANT either refuses to execute, revoke, or rescind any <br />agreement necessary to comply with the provisions of this Section or <br />the loan administrative procedures established by the <br />ADMINISTRATOR or commences or has commenced against <br />P ARTICIP ANT a bankruptcy case. <br /> <br />Loan Security. By accepting a loan, the P ARTICIP ANT is giving a <br />security interest in their vested PLAN balance as of the loan process <br />date, together with all additions thereof, to the PLAN that shall at all <br />times be equal to 100% of the unpaid principal balance of the loan <br />together with accrued interest. <br /> <br />(viii) Loan Amount. The maximum amount of any loan permitted under the <br />PLAN is the lesser of (i) 50% of the PARTICIPANT'S vested account <br />balance less any outstanding loan balances under the PLAN or (ii) <br />$50,000 less the highest outstanding loan balance during the preceding <br />one-year period. The ADMINISTRATOR shall establish the <br />minimum loan amount. The P ARTICIP ANT and not the <br />ADMINISTRATOR shall at all times remain responsible for ensuring <br />that any loan received under the PLAN is in accordance with these <br /> <br />2 <br />