§ 5.26.310. Loans to Participants.

A.

Upon application by a Participant, but subject to such uniform and nondiscriminatory rules as the Administrative Committee may establish and to the provisions of this section, effective January 1, 1986, the Administrative Committee may in its discretion direct the Trustee to make a loan or loans to a Participant from his separate account in the Participant Loan Fund in an amount not exceeding the excess of:

1.

The lesser of:

a.

$50,000.00, reduced by the excess (if any) of:

(1)

The highest outstanding balance of loans to such Participant from the Plan during the one-year period ending on the day before the date on which such new loan was made,

(2)

Over the outstanding balance of loans to such Participant from the Plan on the date on which such new loan was made, or

b.

50 percent of the vested portion of the Participant's Account balance (not including amounts attributable to a Participant's After-Tax Contributions Account); or

c.

100 percent of the vested portion of the Participant's Account balance allocated to Core Funds.

2.

Over the outstanding balance of any other loan or loans from the Plan to the Participant; provided, however, that if 50 percent of the vested portion of the Participant's Account balance (not including any amounts attributable to a Participant's After-Tax Contributions Account) is less than $10,000.00, the amount in subsection A.1.b of this section shall be the lesser of $10,000.00 or 80 percent of the vested portion of the Participant's Account balance. The minimum loan that may be made from the Plan is $2,000.00 (or such other amount determined by the Administrative Committee). All loans hereunder shall be subject to such loan processing fees charged by the Trustee and Investment Manager as are approved by the Administrative Committee, which fees shall be paid by borrowing Participants.

B.

As soon as practicable after the receipt of all necessary information and directions from the Administrative Committee to make a loan and prior to making any loan pursuant to subsection A of this section, but in no event later than 30 days after the applicable Valuation Date, the Trustee or Investment Manager shall transfer, in accordance with procedures determined by the Administrative Committee, to the Participant Loan Fund from the assets invested in other Investment Funds allocated to the Account of each borrowing Participant an amount equal to the amount of such Participant's loan, which investment shall be allocated to such Participant's Account; provided, however, that no amount from the Participant's After-Tax Contributions Account shall be transferred to the Participant Loan Fund for the purpose of making a loan to the Participant. The Participant Loan Fund shall be invested solely in loans to Participants made pursuant to this section and shall at all times be at least equal to the total amount of such loans. All interest and principal payments made by such Participant shall be credited to the separate account within the Participant Loan Fund of each Participant who borrows money from the Plan. Except as otherwise provided by the Administrative Committee, as of each Valuation Date all cash in the Participant Loan Fund shall be transferred to the other Investment Funds in accordance with each borrowing Participant's investment choice under Section 5.26.200.

C.

Loans made pursuant to subsection A of this section:

1.

Shall be secured by the portion of the Participant's Account attributable to vested Matching Contributions and any or all of the following:

a.

The portion of the Participant's Account attributable to Tax Deferred Contributions,

b.

The portion of the Participant's Account attributable to Rollover Contributions,

c.

Such other collateral as the Administrative Committee may require or permit;

2.

Shall be available to all Participants on a reasonably equivalent basis that shall not result in discrimination in favor of Employees who are officers or highly compensated within the meaning of Code section 401; and

3.

Shall be evidenced by a promissory note executed by the Participant which provides for:

a.

A reasonable rate of interest determined by the Administrative Committee, and

b.

Repayment through payroll deduction or via check while a Participant is on a leave of absence without sufficient pay (except to the extent loan repayments are suspended in accordance with the loan policy and applicable law):

(1)

Within a specified period of time, which shall not extend beyond five years from the time the loan is made unless the loan proceeds are used to acquire a dwelling, which within a reasonable time is to be used as a principal residence (as determined at the time the loan is made) of the Participant, in which case the promissory note shall provide for repayment within 15 years of the time the loan is made, unless otherwise provided by the Administrative Committee at the time the loan is made, and

(2)

In substantially equal payments, at least quarterly, over the term of the loan, and

(3)

Upon such other terms and conditions as the Administrative Committee shall determine.

4.

Shall be administered in accordance with a loan policy adopted by the Administrative Committee.

Notwithstanding any other provision of the Plan, including Section 5.26.460, such loan shall be a first lien against the portion of the Participant's Account by which it is secured and any amount of principal or interest due and unpaid thereof shall be deducted insofar as possible from the portion of such Account by which it is secured before the payment of any portion thereof to the Participant or his Beneficiary. A loan shall continue to be repaid pursuant to the terms of the promissory note, even after the loan has defaulted and been reported as a deemed distribution on Form 1099-R, unless and until the loan has been repaid in full, including through offset either: (1) at the time the Participant or Beneficiary requests a distribution, or (2) to the extent provided in the promissory note and loan policy, upon the Participant's death or Separation from Employment.

D.

Notwithstanding the foregoing provisions of this section, loans made to Participants under the Plan shall be due and payable upon the Participant's termination of employment with the County, whether by death, retirement or otherwise.

(Ord. 2014-0017 § 21, 2014; Ord. 2008-0071 § 8, 2008; Ord. 2004-0064 §§ 1, 2 (part), 2004.)