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ICMA RETIREMENT CORPORATION XI. Reamortization Any outstanding loan may be reamortized. Reamortization means changing the terms of a loan, such as length of repayment period, interest rate, and frequency of repayments. A loan may not be reamortized to extend the length of the loan repayment period to more than five (5) years from the date the loan was originally made, or in the case of a loan to secure a principal residence, beyond the number of years specified by the employer in Section V above. A participant must request the reamortization of a loan in writing on a reamortization application acceptable to the plan administrator. Upon processing the request, a new disclosure statement will be sent to the em- ployer for endorsement by the participant and approval by the employer. The executed disclosure statement must be returned to the plan administrator within 10 calendar days from the date it is signed. The new disclo- sure statement is considered an amendment to the original promissory note, therefore a new promissory note will not be required. A reamortization will not be considered a new loan for purposes of calculating the number of loans outstand- ing or the one loan per calendar year limit. XII. Refinancing existing loans If a participant has one outstanding loan, that loan may be refinanced. If a participant has more than one outstanding loan. no loans may be refinanced. Refinancing means concurrently repaying an existing loan and borrowing an additional amount through a new loan. A participant may not refinance a residential loan. In order to refinance an existing loan, a participant must r91uest a new loan in writing on an application approved by the plan administrator. Such request must be made at a time when the participant is eligible to obtain a loan as defined by the employer in Section III above. The amount of a new loan requested for the purpose of refinancing is subject to the loan limits speciped in Section IV above. " Because a refinancing is considered a new loan, only active ,employees may refinance an outstanding loan. XIII. Reduction of loan If a participant dies prior to full repayment of the outstanding loan(s), the outstanding loan balance(s) will be deducted from the account prior to distribution to the beneficiary(ies). The unpaid loan amount is a taxable distribution and may be subject to early withdrawal penalties. The participant's estate is responsible for taxes or penalties on the unpaid loan amount, if any. The beneficiary is responsible for taxes due on the amount he/she I receives. A Form 1099 will be issued to both the beneficiary and the estate for these purposes. .................................................. I...... I....'.................................. f 0 U r.