Loans

You can borrow money from your account for any one of the following reasons:

1. To pay for your - or your immediate family's - unreimbursed medical, dental or legal expenses incurred;
2. To acquire a primary residence for you;
3. To make improvements to your primary residence;
4. To prevent foreclosure on your primary residence;
5. To purchase an automobile for you or a member of your immediate family;
6. To pay for books, tuition and related educational expenses for you or your immediate family members.

Term of Loan

The term of the loan shall be five (5) years. However, loans used to acquire a Participant's primary residence may be repaid over ten (10) years. The loan must be repaid in at least quarterly installments. The minimum loan amount is $1,000.00. Only one loan may be outstanding at any one time. The interest rate charged on Participant loans is the prime rate plus one point. The maximum loan amount shall be the lessor of $50,000.00 or one-half of the non-forfeitable balance of Participant's Account. In the event of a default in repayment of the loan, the Participant shall be required to pay tax on the outstanding principal balance and accrued interest at the Participant's ordinary income tax level, plus a ten percent (10%) penalty.

Loan Administration

Loans under this Plan are administered by Union Bank of California, a third-party administrator. To obtain a loan application, a Participant must call Union Bank of California at (800) 228-0292

Loans At Retirement

Loans are required to be repaid in full upon retirement under this Plan or other distribution. However, retirement under the Southern California IBEW-NECA Pension Plan, without applying for retirement benefits under this Plan, will not require repayment of a loan under this Plan.

Defaults

If you default on a loan, you will not be eligible to apply for a new loan until five years has passed since the loan went into default. If you have defaulted on two loans, you will not be permitted to take any further loans under the Plan.