CONTRACT LOANS Clause Samples
CONTRACT LOANS. Loans - If this Contract is issued under a Qualified Plan under Code Section 401 or 403 and the Qualified Plan permits, you may request a loan of a portion of the Contract Value. Loan Procedures - The loan request must be submitted on our Loan Request Form. You may submit a loan request thirty (30) days after the Contract Date and before the Annuity Date. However, before requesting a new loan, you must wait thirty (30) days after the last payment of a previous loan. If approved, the loan will usually be effective as of the end of the Business Day on which we receive all necessary documentation in a form satisfactory to us. We will normally forward proceeds of the loan to you within seven (7) calendar days after the effective date of the loan. Loan Account - On the effective date of the loan, we will transfer an amount equal to the principal amount of the loan into the Loan Account. We will transfer amounts to the Loan Account on a pro rata basis from the Investment Options based on the Account Value in each. For those Contracts issued under Qualified Plans that are exempt from the requirements of Title 1 of the Employee Retirement Income Security Act of 1974 ("ERISA"), we will credit interest on amounts in the Loan Account at an annual rate equal to 3.0%. For those Contracts issued under Qualified Plans that are subject to the requirements of Title 1 of ERISA, we will credit interest on amounts in the Loan Account at an annual rate that is two percentage points lower than the annual loan interest rate charged on the loan. Interest earned will accrue daily beginning on the day following the effective day of the loan. The interest credited will be transferred from the Loan Account to the Investment Options on a pro rata basis relative to the most recent allocation instructions. Loan Terms - You may have only one loan outstanding at any time. The minimum loan amount is $1,000 and the maximum loan amount is the lesser of: . 50% of the Contract Value; or . $50,000 less the highest outstanding Contract Debt during the 12-month period immediately preceding the effective date of the loan. You should refer to the terms of your particular Qualified Plan for any additional loan restrictions. If you have other loans outstanding pursuant to other Qualified Plans, the amount you may borrow may be further restricted. We are not responsible for making any determinations (including loan amounts permitted) or any interpretations with respect to your Qualified Plan.
CONTRACT LOANS. You may obtain a contract loan by submitting a Written Notice or Written Request to us. This contract assigned to us is the only security needed. When a loan is made, we will transfer an amount equal to the loan from the Fixed and Variable Accounts to the loan account. The loan account is part of the Fixed Account, which is part of our general account. If you do not specify allocation instructions in your loan application, we will withdraw the loan pro-rata from all Subaccounts of the Variable Account having Subaccount values and from the Fixed Account. A▇▇▇▇▇▇ transferred to the loan account do not participate in the investment experience of the Fixed or Variable Account from which they were withdrawn. Amounts in the loan account will earn interest at the minimum Fixed Account guaranteed interest rate shown in Section 1, Contract Data. Different interest rates may be applied to the loan account than the Fixed Account. Any interest credited on loaned amounts will remain in the Fixed Account. You may repay your loan balance in full or in part while your contract is in force prior to the death of the Insured. Repayments must be clearly marked as “loan repayments” or we will credit them as premiums. Each loan repayment will result in a transfer of an amount equal to the loan repayment from the loan account to the Fixed and/or Variable Account. We will use your current premium allocation schedule to allocate the loan repayments. We have the right to not accept partial loan repayments for amounts less than $50. A loan balance that exists at the end of the grace period may not be repaid unless this contract is reinstated.
CONTRACT LOANS. Loans – If this Contract is issued under a Qualified Plan under Code Section 403 and the Qualified Plan permits, you may request a loan of a portion of the Contract Value, while the Annuitant is living and the Contract is in force. Loan Procedures – The loan request must be submitted on our Loan Request Form. You may submit a loan request thirty (30) days after the Contract Date and before the Annuity Date. However, before requesting a new loan, you must wait thirty (30) days after the last payment of a previous loan. If approved, the loan will usually be effective as of the end of the Business Day on which we receive all necessary documentation in a form satisfactory to us. We will normally forward proceeds of the loan to you within seven (7) calendar days after the effective date of the loan.
CONTRACT LOANS. If your contract has been purchased as a tax sheltered annuity as described in Section 403(b) of the Internal Revenue Code, as amended, that is not part of a plan that is subject to the Employee Retirement Income Security Act of 1974, you will have the option of taking a contract loan at any time after the first contract year. If your contract has been purchased in this tax sheltered market, an endorsement attached to this contract will detail the loan requirements.
CONTRACT LOANS. (a) As further consideration for the indemnity reinsurance of the General Account Liabilities hereunder, Reinsurer shall, subject to the provisions of this Section 6.02, be entitled to all contract loan repayments (including both principal and interest) under the Coinsured Contracts.
(b) Cedent shall, from and after the Recapture Date, have the right to retain or otherwise receive all contract loan repayments under the Coinsured Contracts.
CONTRACT LOANS. If your Contract is issued under a Qualified Plan under Code Section 401 or 403 and your Qualified Plan permits, you may request a loan of a portion of your Contract Value after your first Contract Year and before your Annuity Date. If your Contract is a Non-Qualified Contract, or if your Qualified Plan does not permit loans, loans under this Contract will not be available to you.
CONTRACT LOANS. If this contract has a Loans provision, we will not consider any contract debt when we determine the amount payable, if any, at the death of a dependent child.
CONTRACT LOANS. Except for non-payment of premium, we will not contest this benefit with respect to the insurance on any dependent child's life after it has been in force during the child's lifetime for two years from the issue date. BENEFIT PREMIUMS AND CHARGES We show the premiums for this benefit in the Schedule of Premiums in the contract data pages. From each premium payment, we make the deductions shown under Schedule of Deductions from Premium Payments in these pages and the balance is the invested premium amount which is added to the contract fund. The monthly charge for this benefit is deducted on each monthly date from the contract fund. The amount of that charge is included in the Schedule of Monthly Deductions from the Contract Fund in the contract data pages. Benefit premiums and monthly charges stop on the earlier of the death of the Insured and the first contract anniversary after the Insured's 65th birthday.
CONTRACT LOANS. CAN YOU BORROW MONEY ON YOUR CONTRACT?
CONTRACT LOANS. Except for non-payment of premium, we will not contest this benefit with respect to the insurance on any dependent child's life after it has been in force during the child's lifetime for two years from: (1) the date the level term insurance benefit on dependent children began under the earliest contract; or, if later, (2) the date of any rider that added the child for coverage under any such earlier contract. But, in any case. if there was a later reinstatement of any such earlier contract, then the two years will start on the date of the most recent reinstatement. BENEFIT PREMIUMS AND CHARGES We show the premiums for this benefit in the contract data pages. From each premium payment, we make the deductions shown on those pages and the balance is the invested premium amount which is added to the contract fund. The monthly charge for this benefit is deducted on each monthly date from the contract fund. The amount of that charge is included in the contract data pages. Benefit premiums and monthly charges stop on the earlier of the death of the Insured and the first contract anniversary after the Insured's 65th birthday.