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to 457 Plan Loan Guidelines XIV. Loan default If a required payment of principal and interest is not made within 90 days of the date such payment is due. the loan is considered in default. If a loan is in default, the loan will be foreclosed during the calendar year in which the participant separates from service. If a participant has separated from service and defaults on a loan, then the loan will be foreclosed during the calendar year in which the default occurs. If the employer has elected in Section X, and the promissory note so provides, a loan becomes due and payable when the participant separates from service. If the terms of the loan contain this provision, the outstanding loan amount is "deemed" in default as of the date of separation from service. The amount of the outstanding loan. including accrued interest, will be reported to the IRS as a distribution that may be subject to taxes. If the employer has so elected in Section X, and the promissory note so provides, a loan becomes due and payable when the participant takes a distribution of some or all of the balance in his/her account after separa- tion from service. If the terms of the loans contain such a provision and the outstanding loan balance is not paid prior to the distribution from the account, the outstanding loan amount will be considered in default upon issuance of the distribution check. The amount of the outstanding loan, including accrued interest, will be reported to the IRS as a distribution that may be subject to taxes. Participants who have an existing loan in default will not be eligible for additional loans. XV. Fees Fees may be charged for various services associated, with the application for and issuance of loans. All appli- cable fees will be debited from the participant's account balance and/or from the participant's loan repayments prior to crediting the repayment of principal and interest to the participant's account. A schedule of fees applicable to this plan is available from the plan administrator. XVI. Other u ~" The employer has the right to set other terms and conditions as it deems necessary for loans from the plan in order to comply with any legal requirements. All terms and conditions will be administered in a uniform and non-discriminatory manner. In Witness Whereof, the employer hereby caused these Guidelines to be executed this II of , 19 . day EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: City Manaqer Title: Attest: Attest: ..................................................,............................................. . f i v e