This packet includes:

• AGuidetoImplementingaLoanProgram

• LoanGuidelinesAgreementforaRetirementPlan

• SuggestedResolutionforaLegislativeBodyRelatingtoAmendingaRetirementPlantoPermitLoans

• LoanAdministrationAgreementforSection457Deferred CompensationPlans

• AmendmenttoAdoptionAgreementforSection401Plans

401/457 planloan program ImplementatIon packet for employers

loaN pRogRam implemeNtatioN at-a-glaNce

In this Loan Program Implementation Package, you will find:

• A Guide to Implementing a Loan Program –Thisbrochuredetailstheissuesyoushouldconsiderindesign-ingyourloanprogram.

• Loan Guidelines Agreement for a Retirement Plan –Theseguidelinesmustbecompletedbeforeloanscanbemadefromyourretirementplan.Thisdocumentenablesyoutoestablishthefeaturesofyourloanprogram.

• Suggested Resolution for a Legislative Body Relating to Amending a Retirement Plan to Permit Loans – We haveincludedoneversionthatcanbeusedforanyplantype–Section457DeferredCompensationplans,Section401MoneyPurchaseplans,andSection401Profit-Sharingplans.Ifyourgoverningbodyrequiresthataresolutionbepassedwhenamendmentsaremadetotheplan,wehaveincludedasuggestedresolutionforyouruse.Ifyourgoverningbodydoesnotrequirethataresolutionbepassed,pleasedisre-gardthesuggestedresolution.

• Loan Administration Agreement for 457 Plans – Thisdocumentappliesonlyto457planswheremorethanoneproviderisinvolvedinloanadministration.Ifyouhaveadoptedasingle457plandocumentunderwhichICMA-RCandoneormoreotherprovidersmustoperate,youmayultimatelyhavetoself-admin-isteryourloanprogramunlessyouagreetotherequirementsspecifiedinthisAgreement.

• Amendment to Adoption Agreement for Section 401 Plans–Thisdocumentappliesto401plansonlyandamendsyourcurrentplantoallowloans.

Steps to Implement a Loan Program for your ICMA-RC Retirement Plan:

(1) CarefullyreadA Guide to Implementing a Loan Program.

(2) CompletetheLoan Guidelines Agreement.

(3) UsingtheSuggestedResolutionasaguide,obtainaresolutionfromyourgoverningbodytoadopttheloanprovision(ifrequired).

(4) ExecutetheLoan Administration Agreement(457plansonly)ortheAmendment to Adoption Agreement (401plansonly).

(5) ReturnthecompletedLoan Guidelines Agreement,acopyoftheresolution(ifrequiredbyyourentity),andeithertheLoan Administration Agreement(457plans)ortheAmendment to Adoption Agreement(401plans)to:

ICMA-RC Attention:NewBusinessAnalyst 777NorthCapitolStreetNE Washington,DC20002-4240

Pleaseallow10businessdaystosetupyourplantoallowloans.

PleasecontactourPlanSponsorServicesTeamat800-326-7272ifyouhaveanyquestionsaboutimplementingyourRetirementPlanLoanProgram.

A Guide to Implementing a Loan Program

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a guiDe toimplemeNtiNga loaN pRogRam

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Aloanprograminyourretirementplanprovideseligibleplanparticipantstheabilitytoborrowfundsfromtheirplanaccountbalance.Addingloanstoyourretirementplanisabigstep.Astheadministratorofyourloanprogram,ICMA-RCwillat-tempttominimizetheamountofresourcesyouneedtodevotetotheprogram.

However, there are administrative and fiduciary responsibili-ties associated with offering loans which, as a practical mat-ter, cannot be delegated to ICMA-RC.Forthisreason,beforeyoudesignaprogramthatisrightforyouandyouremployees,thereareseveralissuesyoumaywishtoconsider.Andthedeci-sionsyoumakeindesigningyourloanprogramwilldeterminetheresourcesyou,astheplansponsor,willhavetocommittothatprogram.

Thisbrochuredetailstheissuesyoushouldconsiderindesign-ingyourretirementplanloanprogram.

Loan guideLines

Inordertoofferloansfromaretirementplan,theInternalRev-enueCode(theCode)requiresthatyouestablishwrittenguide-linesthatgovernthegrantingofloans.IncludedinthispacketistheLoanGuidelinesAgreementthatyoumustcompleteandformallyadopttoestablishyourloanprogram.

AlongwithcompletingtheLoan Guidelines Agreement,youmustamendyourplandocumenttoallowloans.YouwillneedtosendtoICMA-RCastatementexecutedbyadesignatedofficialorresolutionapprovedbyyourgoverningbody,asapplicabletoyourplan.Inaddition,ifyouareaddingaloanprovisiontoa401plan,theadoptionagreementapplyingtothatplanmustbeamended.Asampleresolutionandanadop-tionagreementamendmentformareincludedinthispackage.Ifyouhaveanyquestionsaboutamendingyourplandocumenttoallowforloans,pleasecallourPlanSponsorServicesTeamtoll-freeat800-326-7272.

TheCodeprovidesyouwithsomeflexibilitywhenestablishingyourLoanGuidelinesaslongastheguidelinesareconsistentwiththeplandocumentprovisionsonloansandwithsection72(p)oftheCode.

1. Eligibility (Section II in Loan Guidelines Agreement)

Youmayallowaloantobetakenfrom(1)vestedemployercontributionsand/or(2)participantaccountbalances.Youmaydesignatewhetherornotaloanmaybetaken

(A) forallpurposesor (B)onlyinthecaseofhardshiporothercertainspecified

financialsituations.

401 Plans: UndertheCode,onlyemployerscanauthorizeahardshipforloanpurposes.Uponrequest,ICMA-RCwillprovideanopiniontoyouconcerningthelikelycompli-anceofthehardshipwithintherequirementsoftheCodeandregulations.Normally,forloanpurposes,hardshipandotherspecifiedsituationsinclude,butarenotlimitedto:unreimbursedmedicalexpenses,buyingorrehabilitatingtheparticipant’sprincipalresidence,andpayingforcollegeeducationfortheparticipantorhis/herdependents.Carloan,carrepairs,andthepurchaseorrepairofavacationorrentalpropertywouldnotbeincludedinthehardshipdefinition.

Theoptionyouchoosetodefine“loanpurpose”intheEli-gibilitysectionwillhaveasignificantimpactonthenumberofloansmadefromyourplan.Obviously,ifyouchoose“forallpurposes,”moreofyouremployeeswillrequestloansthanifyouselect“hardshiporotherspecifiedfinancialsitu-ationsonly.”

457 Plans: Loansmustbecoordinatedwithunforesee-ableemergencywithdrawals.TheemergencywithdrawalregulationsunderSection457oftheCoderequirethatanemergencywithdrawalbearesourceofthe“lastresort.”IftheparticipantisabletotakealoanfromyourICMA-RC457planoranyotherplanyousponsor,theparticipanthasresourcesavailabletomeet,orpartiallymeet,thefinancialneed.Therefore,aparticipantwillberequiredtotakealoanbeforetakinganemergencywithdrawal.

Manyemergencywithdrawalsarenotapprovedbecausethefinancialneed,whileserious,maynotmeettheconditionsitemizedinthe457regulations.Theabilitytotakealoanwillallowparticipantsaccesstomoneythatisnototherwiseavailable.Andtherepaymentprovisionsforloansensuresthatparticipantsreplenishtheiraccounts,therebypreserv-ingtheirretirementsavings.

2. Loan Purpose and Application Process (Section III and IV in Loan Guidelines Agreement)

(A)ActiveEmployeesOnly–Loansareavailableonlytoactiveemployees.Formeremployees,beneficiaries,andalternatepayeesmaynottakealoan.

(B)RequestSubmittal–Ifyouselecttoallow loansforALLpurposes,loanrequestsmaybesubmit-

tedbyparticipantsthroughtheAccountAccesswebsite(Online)orwithanInvestorServicesrepresentativeviaLoanByCallCenter.

Ifyouselecttoallowloansforhardshippurposes,aloanapplicationmustbecompleted,signedbytheparticipantandapprovedbyyou,theemployer.

UndertheCode,theamountoftheloanmaynotexceedamaximumamount.The amount available for a loan is affected by all other loans the participant may have outstanding or has recently paid off from your ICMA-RC

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retirement plan, and any other retirement plans you spon-sor. Pleaserefertopage7foraworksheetillustratinghowmaximumloanamountsarecalculated.TheloanmodelingoptiononICMA-RC’sAccountAccessweb-siteincorporatesthiscalculationautomatically.

(C)CheckIssuance–Ifyouelecttoallowloans forALLpurposes,ICMA-RCsendsloandocuments

withtheloanchecktotheparticipant.Whenthepar-ticipantendorsesthecheck,thatendorsementsignifiesacceptanceofloanterms.

IfyouelecttoallowloansforHARDSHIPpurposes,theparticipantisrequiredtosigntheacceptanceofapromissorynoteevidencingtheloananddisclosurestatement,whichincludesanamortizationsched-ule.Uponreceiptofanapprovedloanapplication,ICMA-RCwillpreparetheseloandocumentsandsendthem,alongwiththeloancheck.Theloancheckmaynotbegiventotheparticipantuntiltheloandocu-mentshavebeensignedbytheparticipant.Becausethepromissorynoteisconsideredaplanasset,allloandoc-umentsmustbecompleteandpreservedbyICMA-RCforatleastthelifeoftheloan.

Forpayroll-deductedloanrepayments,oncealoanisissued,yourpayrolldepartmentmustensurethatloanrepaymentsarewithheldfromtheemployee’spay-checkeachpayperiod,intheamountspecifiedortheamortizationschedule,untiltheloanisrepaidinfull.Itisessentialthattheamortizationschedulecoincidewithyourpayrollcycle.ICMA-RCcanhelpyoudeterminethefirstpaydateonwhichyoushouldwithholdloanrepayments.

3. Frequency of Loans (Section V in Loan Guidelines Agreement)

Participantsmayreceiveonlyoneloanpercalendaryear.However,youmayelecttoallowparticipantstohaveeither

(A) onlyoneloanoutstandingatatimeor

(B) nomorethanfiveloansoutstandingatonetime.

TheoptionyouchooseunderFrequencyofLoanswillhaveanimpactonthenumberofloansmadefromyourplan.ItmayalsohaveadirectimpactonyourpayrollsystemifyouselectPayrollDeductionasarepaymentoptionforyourparticipants.Each loan repayment for each pay period must be accounted for separately.Repaymentsofmultipleloansareamuchlargerburdenonyourpayrollsystem(andpersonnel)thanarepaymentofasingleloan.

4. Length of Loan (Section VII in Loan Guidelines Agreement)

Generally,allloansmustberepaidwithinfiveyearsfromthedatetheloanismade.Thereisanexceptionforloansusedtobuy,butnottoimproveorrepair,aprincipalresi-dence.Inthecaseofaloanforbuyingaprincipalresidence,youmayspecifythenumberofyears,nottoexceed30,overwhichtheloanmustberepaid.

Indeterminingthemaximumrepaymentperiodforresi-dentialloans,youshouldbemindfulthattheloantermmayextendbeyondtheperiodtheparticipantisemployedbyyou.Ifyouallowemployeestocontinuetopaytheirloansaftertheyseparatefromservice(seeAccelerationofLoanRepaymentonthenextpage),repaymentswouldcontinuebytheparticipant,throughyou,fortheentiretermoftheloan(e.g.,30years).Everypayrollperiod,theparticipant(formeremployee)willberequiredtogiveyouacheckfortheperiodicloanrepaymentamount.YouthenincludethisamountwithyournextcontributionsubmittaltoICMA-RC.Loan repayments may not be made directly to ICMA-RC by the participant, unless you choose ACH debit as a repayment option.

5. Loan Repayment Process (Section VIII in Loan Guide-lines Agreement)

AllloansmustberepaideitherthroughpayrolldeductionorthroughACHdebitaslongastheemployeeisactivelyemployedbyyou.Forpayrolldeductedpayments,ICMA-RC’smedia(EZLink)usedforremittingcontributiondetail,allowsfortheinclusionofloanrepaymentdetail.ParticipantsmaypayofftheirloansearlybyrequestingthatyousubmitalargerrepaymentamountfromtheirpayontheirregularlyscheduledrepaymentdatesthroughyourcontributionsubmittalstoICMA-RC.Pleasenotethatnopaymentdatemaybe“skipped”eveniftheemployeehasmadealargepaymentorsubmittedmultiplepayments.

TheenclosedLoanGuidelinesAgreementformallowsyourplantoofferaparticipanttheoptionofmakingloanrepaymentsviadirectdebitoftheemployee’sbankaccount.DirectdebitisauthorizedbytheparticipantandallowsICMA-RCtodebitloanrepaymentsfromtheparticipant’sbankaccountviaAutomatedClearingHouse(ACH).Withthisfeature,youarefreeoftheburdenofestablishingandmonitoringpayrolldeductionandsubmittingofrepay-mentstoICMA-RC.

Pleasenotethatyouwillnotbenotifieddirectlywhenaparticipant’sbankaccounthasinsufficientfundsforacompleteloanrepayment.TheEZLinkloanreportsthatwillbeavailabletoyouonlinewillprovidethisinforma-tion.ItispossiblethatparticipantloansmaydefaultmoreoftenforlackofrepaymentwhenparticipantschooseACHrepaymentratherthanpayrolldeduction.Youmaychoosetorestrictcertainparticipantstopayrolldeductionforthisreason.

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Inimplementingaloanprogramyoushouldbeawarethatsomeemployerswhoofferloansthroughtheirretirementplanhavehadtocontendwiththeinabilityofsomepartici-pantstorepaytheirloan(s).Youshouldbeawarethatyoumaynotstoptakingloanrepaymentsfromtheemployee’spaycheck–eveniftheemployeeasksthatrepaymentsbestopped.Failuretopayroll-deductloanrepaymentsonsched-ulecouldbothjeopardizetheeligibilityorqualificationoftheentireplanaswellascreateataxableeventfortheparticipant.

Likewise,ifanemployeeisrepayingtheloanthroughACHdebitofhis/herbankaccount,andtheemployeefailstomakepayments,thiscouldjeopardizetheeligibilityofyourretirementplan.Employersareultimatelyresponsibleforensuringthatloansarerepaidaccordingtotheloanterms.ICMA-RCassistsyoubynotifyingbothyouandtheem-ployeeifapaymenthasnotbeenreceived.

YourplanmayallowterminatedemployeestocontinuetorepaytheirloanseitherthroughACHdebitoftheirbankaccount,orbygiving/sendingyouacheckeachrepaymentperiod(refertoAccelerationofLoanRepaymentsectiononpagethree).Ifyouadoptthislatterrepaymentmethod,youwillincludetherepaymentamountgiventoyoubytheformeremployeeinyournextregularemployeecontribu-tionremittancetoICMA-RC.

Ifaparticipanthasmorethanoneloanoutstandingatanyonetime,theneachloanrepaymentmustbeseparatelyreportedtoICMA-RC.

6. Acceleration of Loan Repayment (Section XI in Loan Guidelines Agreement)

Youhavethreeoptionsfordetermininghowoutstandingloansareaccelerated:

A. Allloansaredueandpayableinfullupontheem-ployee’sseparationfromservice.Theemployeemaynotcontinuetopayoffhis/herloanonceheorshesepa-ratesfromservice.

B. Afterseparationfromservice,allloansaredueandpay-ableinfullassoonastheparticipanttakesawithdrawalofanyamountfromtheplan.

C. Afterseparationfromservice,allloansaredueandpay-ableinfullonlywhentheparticipantwithdrawshis/herentireaccountbalance.

Youshouldconsidertheseoptionscarefully,sinceeachpro-

visioncouldresultinataxableeventfortheparticipant.Ifaparticipantdoesnotrepaytheoutstandingloanamountatthetimeitisdue,theloanis“foreclosed.”Thismeansthattheoutstandingloanamountmustbereportedbytheplanadministrator(ICMA-RC)asataxabledistributionintheyearoftheforeclosure.

Ontheotherhand,giventheburdensassociatedwithcol-lectingloanrepaymentsfromformeremployees,youmaynotwishtomaintainapotentially longterm“relationship”withformeremployees(especiallyinthecaseofresidential loans).

Youshouldcarefullyconsiderthelevelofresponsibilityeachoptionentails.

7. Deemed Distribution of Delinquent Loans (Section XV in Loan Guidelines Agreement)

InternalRevenueService(IRS)regulationsgoverningparticipantloansissuedafterDecember31,2001,haveprovidedclarificationonrequirementsforloanprocessing.Theregulationshavealwaysestablishedloancriteria,suchastermandborrowinglimitations.However,theregulationsnowspecificallyillustratehowplansponsorsshouldtreatdelinquentloans,whichviolatethespecialrulesallowingloanstobemadefromretirementplanassets.

Aloantypicallybecomesadeemeddistributionwhenscheduledpaymentsarenotmadeinadherencewiththegranted“cureperiod.”Themaximumallowablecureperiodistheendofthecalendarquarterfollowingthecalendarquarterinwhichthepaymentwasdue.Forexample,ifaparticipant’sloanpaymentisdueFebruary1st,themaxi-mumcureperiodfortherepaymentisJune30th.Iftheto-talamountofalldelinquentpaymentsisnotreceivedbytheendofthecureperiod,theloanisdeemedadistribution.Theprincipalbalance,inadditiontoanyaccruedinterest,isreportedasadistributiontotheIRS.However,thetaxabledistributionisnottheonlyeventinconjunctionwithadeemeddistribution.Thefollowingnegativeconsequencesoccurasaresultofdeemeddistribution.

•Thedeemeddistributionisataxableevent.However,itisnotanactualdistributionandthereforeremainsanassetoftheparticipant’saccount.Theoutstandingloanbalanceandaccruedinterestarereportedontheparticipant’saccountstatement.

• Repaymentofadeemeddistributionwillnotchangeorreversethetaxableevent.

•Theloancontinuestobeconsideredoutstandinguntilitisrepaidor“offset”usingtheparticipant’saccountbalance.Anoffsetcanoccuronlyiftheparticipantiseligibletoreceiveadistributionfromtheplanasout-linedinyourplandocument.

• ICMA-RCrequiresparticipantstorepayanyoutstand-ingdeemeddistributedloanbeforetheycanbecomeeligibleforanewloan.Thedeemeddistributedloanandanyinterestaccruedsincethedateitbecameatax-ableeventistakenintoaccountwhendeterminingthemaximumamountavailableforanewloan.

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• AnIRSrulingrequiresthataparticipantwhohashadapriordeemeddistributionmustmakerepaymentstoanewloanthroughpayrolldeduction,orprovideproofofadequatesecurity.

Employers,asplansponsorsandfiduciaries,haveanobliga-tiontocomplywithplandocumentandloanguidelinerequirementsapplicabletoparticipantloans.Inthisregard,loanpaymentsmustbemadeinaccordancewiththeplandocument,planloanguidelines,andasreflectedinthepromissorynotesignedbytheparticipant.Employersretainthisobligationifthereisaloanprogramassociatedwiththeirretirementplan,evenifparticipantsapplyforloansonline,andregardlessofthepayrolldeductionmethodofrepayment.

Employerswhodonotensureproperloanrepaymentpracticesintheirretirementloanprogramsrisknotonlyhavingindividualparticipantloansbeingdeemeddistribu-tions,butalsopotentiallyjeopardizethetax-favoredstatusoftheentireplan.Intheextreme,planswithmismanagedloanprograms–ahighoccurrenceofdeemeddistributedloans,and/orprogramparticipantsindefault,forexample–maybedisqualified(inthecaseof401plans)orclassifiedasineligible(for457plans)bytheIRS.Disqualificationresultsinthelossoftax-deferredstatusforallcontributionsandapossibleincreaseinthetaxableincomeforparticipat-ingemployees.

Itisaplansponsor’sandplanadministrator’sfiduciaryobli-gationtoproperlymanagetheretirementplananditsben-efits.Mismanagementofaloanprogrammaybeconsideredfailuretomeetthisfiduciaryobligationandmayexposeaplansponsortolitigation,inadditiontobeinginviolationofapplicablelawsandregulations.

Toassistplansponsorswhoseplanoptionsincludeloans,ICMA-RCwillprovidereportsofparticipantswithpay-mentsdelinquentby30to89days,90ormoredaysbutnotyetdeemed,andthosewhoseloanshavebeendeemeddistributed.ICMA-RCiscommittedtosupportingemploy-erswhorequestassistancewiththeirloanprogramsinordertoreducethenumberofdelinquentloansanddecreasetheoccurrenceofdeemeddistributions.

speciaL circumstances

Ifyouhavemorethanoneretirementplan,ICMA-RCwillad-ministeryourloanprogram,butyouwillhavetoperformsomeloanverificationactivities.Youwillalsohavetoperformtheseactivitiesifloansareavailabletoyouremployeesfromseverallikeretirementplans,suchastwodifferentqualifiedplans,orifyouhavedifferenttypesofretirementplans(e.g.Section457deferredcompensationandsection401qualifiedplan).Thedegreeofyourinvolvementwilldependonyoursituation.

1. Multiple Plans

Ifyouoffer several retirement plans, eachwithitsownplandocumentandprovisionsuniquetoeachadministrator,ICMA-RCandyourotheradministratorsshouldbeabletoadministerloansbecausethesearedistinctplansandtheloanprovisionappliesattheplan level.However,theCodesetsamaximumontheaggregateofallloansfromallretirementplansinwhichtheemployeeparticipates.Noproviderwillbeabletocalculate,byitself,themaximumamountthataparticipantmayborrowatanypointintime.Sinceonlyyou,theemployer,candeterminethecur-rentoutstandingloanbalanceandthehighestoutstandingloanbalanceinthepast12monthsfromallloansfromanyretirementplans,youwillhavetocalculatethemaximumamountthatmaybeborrowed.Thiswillinvolveobtain-ingallloanamountscurrentlyoutstandingandrepaidinthelast12months.Foryourconvenience,ICMA-RChasdevelopedaworksheettoillustratethemaximumloanamountavailable.[SeePage7,“CalculatingtheAmountAvailableforaLoan.”]

Ifyouelectonlineloans,participantsareaskedtoinputalloutstandingloanbalancesintheironlineworksheetsothattheprogramcanproperlycalculatethemaximumamount.Participantsareonthe“honorsystem”whentheyenterotherloanamounts;ICMA-RCisunabletoverifyanyloanamountsassociatedwithplansadministeredbyotherpro-viders.However,ifthereareanyoutstandingloansinotherplansadministeredbyICMA-RC,ouronlineprogramwilltakethemintoaccount.

2. Single Retirement Plan/Multiple Providers

Ifyouhaveadoptedasingleretirement planwithonemasterplandocumentunderwhichICMA-RCandyourotheradministrator(s)mustoperate,thenyoumayulti-matelyhavetoself-administeryourloanprogram,unless yourequire:

• thatthemaximumthatmaybeborrowedfromanyprovideris50percentofthebalancewiththatproviderand

• thattheloanmustberepaidonlytotheprovider fromwhichtheloanwasmade.

Ifyoudonotimposetheserequirements,youmayhavetoself-administeryourloanprogram.Thisisbecauseof:

• Problemscalculatingtheloanamount.

Theamountavailableforaloanisbased,inpart,onthetotalaccountbalanceinthe plan. Sinceemployeesmay havebalanceswithmorethanoneoftheadmin-istrators,onlyyou,theemployer,candeterminetheactualaccountbalancebyaggregatingthebalanceforeachadministrator.

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TheCodesetsamaximumontheaggregateofall loansfromallretirementplansinwhichtheparticipantpar-ticipates.Sinceonlyyoucandeterminethecurrentout-standingloanbalanceandthehighestoutstandingloanbalanceinthepast12monthsfromallloansfromanyretirementplans,youwillhavetocalculatethemaxi-mumamountthatmaybeborrowed.Thiswillinvolveobtainingallloanamountscurrentlyoutstandingandrepaidinthelast12months.Foryourconvenience,ICMA-RChasdevelopedaworksheettoillustratethemaximumloanamountavailable.[SeePage7,“Calcu-latingtheAmountAvailableforaLoan.”]

• Problemspreparingloandocuments.

Eachloanhastermsandconditionsthatarereflectedinthepromissorynote,disclosurestatementandamortiza-tionschedulefortheloan.Otherprovidersmaybeabletopreparethesedocumentsifgivenallthepertinentinformationabouttheloanbyyou.However,theotherprovidermaybereluctanttoprovidedocumentsforaloantowhichitisnotaparty.Anditmaybedifficultfortheotherprovider’ssystemtoprovidedocumentsforaloaninanamountthatexceedswhatitssystemshowsisavailable.

• Problemskeepingaccurateloanrecords.

Sinceloansaregenerallymadeandrecordkeptonaplanlevelbasis,theoretically,aparticipantcouldtakealoanintheamountofhis/herentirebalancewithoneadministratorbecausetheloaniscollateralizedbythebalancewithanotheradministrator.Andthepartici-pantmayelecttoallocateloanrepaymentseitherbe-tweenadministratorsortoanadministratorotherthantheadministratorwhomadetheloan.Unlessaloanisuniquetooneoftheadministrators,bothinamountandrepaymentterms,onlyyou,theemployer,willbeabletotrackloanrepayments,especiallyifrepaymentsarebeingmadetomorethanoneadministrator.

3. Multiple Types of Retirement Plans/Multiple Providers

Ifyoumakeloansavailabletoyouremployeesfromallofyourretirementplans(e.g.Section457deferredcompen-sationplanandSection401qualifiedplan),eachplanadministratorshouldbeabletoadministerloansbecausethesearedistinctplansandtheloanprovisionappliesattheplanlevel.However,noadministratorwillbeabletocalculate,byitself,themaximumamountthatapartici-pantmayborrowatanypointintime.ThisisbecausetheCodesetsamaximumontheaggregateofallloansfromall401and457plansinwhichtheparticipantpartici-pates.Sinceonlyyou,theemployer,candeterminethecurrentoutstandingloanbalanceandthehighestout-standingloanbalanceinthepast12monthsfromallloansfromany401or457plans,youwillhavetocalculate

themaximumamountthatmaybeborrowed.Thiswillinvolveobtainingallloanamountscurrentlyoutstandingandrepaidinthelast12months.Foryourconvenience,ICMA-RChasdevelopedaworksheettoillustratethemaximumloanamountavailable.[SeePage7,“Calculat-ingtheAmountAvailableforaLoan.”]

Many457plansarewhatarereferredtoas“co-adminis-tered”plans.Thereareactuallytwodifferenttypesofar-rangementbothofwhicharereferredtoasco-administeredorco-providerplans:

(1) multiple457plansofferedbyanemployerthroughtwoormoreadministrators,eachadministratorhavingitsownplandocumentandfeatures.

(2) asingle457planwithmultipleadministratorsprovid-ingessentiallydifferentinvestmentoptions.

Inbothofthesesituations,itwillbedifficultforanad-ministratortocorrectlyadministeraloanprovisionacrossmultipleplans.Itwillalsobedifficultforyoutocorrectlyadministeraloan’sprovisionsinsituationswhereyoumakeloansavailabletoemployeesfromyour457plan(s)andanotherretirementplan(e.g.Section401moneypurchaseorprofitsharingplan).

concLusion

Youmaybeabletominimizeyourinvolvementinadminister-ingaloanprogramundereitherasingleplan/multipleproviderarrangementoramultipleplanarrangement.However,youcannotavoidhavingtodeterminewhethereachloanamountrequestedisconsistentwiththeaggregatemaximum.

Theaboveinformationisintendedtoprovideanoverviewoftheissuesandcomplexitiesofestablishingandmaintain-ingaloanprogramunderthemostcommontypesofretire-mentplanarrangements.Itisnotintendedtobeallinclusive.Otherissuesmayariseandsomeissuesmaybemitigatedbyaplan’sindividualdesign.Specialsituationsand/orsolutionsnotdiscussedabovewillhavetobeanalyzedonacase-by-casebasis.PleasecontactICMA-RC’sPlanSponsorServicesTeamat800-326-7272withanyquestionsrelatedtotheseissues.

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caLcuLating the amount avaiLabLe for a Loan

Theminimumloanamountis$1,000.

ThemaximumamountofallloanstotheparticipantfromthePlanandallotherplanssponsoredbytheEmployerthatarequalifiedemployerplansundersection72(p)(4)oftheCodeisthelesserof:

(1)$50,000,reducedbythehighestoutstandingbalanceofallloansfromany401or457plansforthatparticipantduringtheone-yearperiodendingonthedaybeforethedatealoanistobemade,or

(2) 50%oftheparticipant’svestedaccountbalance,reducedbythecurrentoutstandingbalanceofall401and457loansfromallplansforthatparticipant.

Ifaparticipanthasanyloansoutstandingatthetimeanewloanisrequested,thenewloanwillbelimitedtothemaxi-mumamountcalculatedabovereducedbythetotaloftheoutstandingloans.

Inaddition,eachloanmustbecollateralized,atthetimeitismade,byonehalfoftheparticipant’svestedaccountbal-anceintheplanfromwhichtheloanisbeingmade.Therefore,theactualamountaparticipantmaytakeasaloanistheLESSERofthemaximumdollaramountdescribedaboveor50percentoftheaccountbalance.

Maximum Loan Amount Worksheet (RequiredundertheInternalRevenueCode)

Toestimatethemaximumamountofaloanforwhichaparticipantmaybeeligible,calculateeachstepandselectthelesser ofthetotalofStep1orStep2.Iftheparticipanthashadnooutstanding401or457planloansinthelast12months,youmayenter$50,000asthetotalinStep1andproceedtoStep2.

Step 1. ___________ A. $50,000isthemaximum.

___________ B. Enterthehighestoutstandingloanbalanceduringtheprevious12 monthsfrom457and401planloans.

Step 1 Total ___________ Subtract Line B from Line A.

Step 2. ____________ C. Enter50%ofthepresentvalueofthetotalaccountbalance intheplanfromwhichtheloanwillbeissued,includingany

outstandingloanbalance.

____________ D. Enterthecurrentoutstanding401and/or457planloan balance(s).

Step 2 Total ____________ Subtract Line D from Line C.

Step 3. _____________ E. EnterthelesserofStep1andStep2totals.

Maximum Loan Amount = Line E

the actual amount that may be borrowed will be calculated using the participant’s account balance on the day the loan is made.

$50,000

Loan Guidelines Agreement

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loaN guiDeliNeS agReemeNt foR a RetiRemeNt plaN

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InstructIons(Please refer to the previous section, “A Guide to Implementing a Loan Program”)

TheseLoanGuidelinesmustbecompletedbeforeloanscanbemadefromyourretirementplan.Youshouldconsidereachoptioncarefullybeforemakingyourselectionsbecauseyourselectionswillapplytoallloansmadewhiletheselectionisineffect.Ifyoulaterchangeanyprovision,thechangeswillapplyonlytoloansmadeafterthechangeisadopted.Loansinexistenceatthetimeofanyfuturechangeswillcontinuetooperateundertheguidelinesthatwereineffectatthetimetheloanwasoriginallymade.

Note:Ifloansareavailabletoyouremployeesfromotherplans(e.g.otherSection457deferredcompensationplansorotherSec-tion401plans),calculationofthemaximumloanamountmustconsidertheaggregateofallloansfromall401and457plansinwhichtheemployeeparticipates.SeetheMaximumLoanAmountWorksheetonpage7ofA Guide to Implementing a Loan Program,foundinthispacket.

Loan Guidelines Agreement

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Name of Plan (please state the Employer’s complete name, including state): ____________________________________________

__________________________________________________________________________________________________________

Plan Type: p 401(a)MoneyPurchasePlan p 401Profit-SharingPlan p 457DeferredCompensationPlan

ICMA-RC Plan Number: _________________________

I. Purpose

ThepurposeoftheseguidelinesistoestablishthetermsandconditionsunderwhichtheEmployerwillgrantloanstoparticipants.ThisistheonlyofficialLoanProvisionDocumentoftheabovenamedPlan.

II. Eligibility

Loansareavailabletoallactiveemployees.Loanswillnotbegrantedtoparticipantswhohaveanexistingloanindefault.Loanswillbepro-ratedamongallthefundsinwhichtheparticipantisinvestedatthetimetheloanismade.

for 401 plans only:

Loansareavailablefromthefollowingsources:[selectoneorboth]

p EmployerContributionAccount(vestedbalancesonly)

p ParticipantContributionAccounts(pre-andpost-tax,ifapplicable,includingEmployeeMandatory,EmployeeVoluntary,EmployerRollover,andPortableBenefitsAccounts,butexcludingtheDeductibleEmployeeContribution/QualifiedVolun-taryEmployeeContributionAccount)

for Roth 401(k) plans only:

Aparticipant’sDesignatedRothAccountbalancecanbeusedtosecureaparticipantloan.

DesignatedRothAccountbalances[selectone]

p willnot(defaultoption)beavailableasasourceforloansunderthePlan.

p willbeavailableasasourceforloansunderthePlan.(Note: Using the Roth source for loans may have negative tax conse-quences for participants.)

for all plan types:

III. Loan Purpose

Loansareavailableforthefollowingpurposesandmustberequestedinthecorrespondingmethod(selectone): p All purposes Online and Loans by Call Center: AllloansmustberequestedeitheronlinebyemployeesthroughICMA-RC’sAccount

Accesssiteatwww.icmarc.orgordirectlyoverthephonewithanInvestorServicesassociate(viatheLoansbyCallCenterservice),bothofwhichrequirepreauthorizationbytheEmployerasoutlinedinitalicsunderSectionIV.ApplicationProcess.

p Hardship Only: Loansshallonlybegrantedintheeventofaparticipant’shardshiporforthepurposeofenablingaparticipanttomeet

certainspecifiedfinancialsituations.Theemployershallapprovetheparticipant’sloanapplicationafterdetermining,basedonallrelevantfactsandcircumstances,thattheamountoftheloanisnotinexcessoftheamountrequiredtorelievethefi-nancialneed.Forthispurpose,financialneedshallinclude,butnotbelimitedto:unreimbursedmedicalexpensesofthepar-

I c m a - r c

4

ticipantormembersoftheparticipant’simmediatefamily,establishingorsubstantiallyrehabilitatingtheprincipalresidenceoftheparticipant,orpayingforacollegeeducation(includinggraduatestudies)fortheparticipantorhis/herdependents. (Note: Online or Loans by Call Center not applicable with this option. Participant must complete the loan application for employer approval.)

IV. Application Process

IfanemployeeismarriedatthetimeoftheapplicationandyourplanhaselectedtheQualifiedJointandSurvivorAnnuityOption,spousalconsentisrequiredfortheloan.Theemployee’sspousemustconsent,inwriting,totheloanandtheconsentmustbewitnessedbyaplanrepresentativeornotarypublic.SuchconsentmustbereceivedinwritingbyICMA-RCnomorethanninety(90)daysbeforetheloanrequestissubmittedthroughAccountAccess.InthecaseoftheDirectLoanApplication,spousalconsentshouldbesentalongwiththeapplication.

Thepromissorynote,truth-in-lendingrescissionnotice,anddisclosurestatementaremailedtotheemployeealongwiththeissuedloancheck.Theemployeeconfirmsreceiptandacceptanceofthesedocumentsandtermsatthetimetheendorsedcheckispresentedforpayment.

The Employer hereby authorizes all future loans requested through the online process via Account Access, as well as any re-quests that employees submit on paper forms, pending review of the application by ICMA-RC. Notice of loan issuance will be provided to the Employer via reports posted on the EZLink site.

Theloanamountwillgenerallyberedeemedfromtheemployee’saccountonthesamedayaseitherICMA-RCreceiptofloanapplication(completeandingoodorder),thecompletionofaloanrequestviatelephonewithanInvestorServicesrepresentative,ortheemployee’ssuccessfulsubmissionoftheloanrequestthroughAccountAccess,ifitissubmittedpriorto4:00p.m.ETonabusinessday.Ifnot,theloanamountwillberedeemedonthenextbusinessdayfollowingsubmission.Theloancheckisgenerallyissuedonthenextbusinessdayfollowingredemption,andwillbemaileddirectlytotheemployee.Theemployee’spresentmentoftheloancheckforpaymentconstitutesanacknowl-edgmentthattheemployeehasreceivedandreadtheloandisclosureinformationprovidedbyICMA-RCandagreestothetermstherein.

Loanrepaymentwillbeginassoonaspracticablefollowingtheemployee’spresentmentoftheloancheckforpayment.

V. Frequency of loans [selectone]

p Participantsmayreceiveoneloanpercalendaryear.Moreover,participantsmayhaveonlyone(1)outstandingloanatatime.

p Participantsmayreceiveoneloanpercalendaryear.Moreover,noparticipantmayhavemorethanfive(5)loansoutstandingatonetime.

VI. Loan amount

Theminimumloanamountis$1,000.

ThemaximumamountofallloanstotheparticipantfromtheplanandallotherplanssponsoredbytheEmployerthatarequalifiedem-ployerplansundersection72(p)(4)oftheCodeisthelesserof:

(1)$50,000,reducedbythehighestoutstandingbalanceofallloansfromany401or457plansforthatparticipantduringtheone-yearperiodendingonthedaybeforethedatealoanistobemade,or

(2)onehalfoftheparticipant’svestedaccountbalance,reducedbythecurrentoutstandingbalanceofall401and457loansfromallplansforthatparticipant.

Ifaparticipanthasanyloansoutstandingatthetimeanewloanisrequested,thenewloanwillbelimitedtothemaximumamountcalcu-latedabovereducedbythetotaloftheoutstandingloans.

Aloancannotbeissuedformorethantheaboveamount.Theparticipant’srequestedloanamountissubjecttodownwardadjustmentwithoutnoticeduetomarketfluctuationbetweenthetimeofapplicationandthetimetheloanismade.

Loan Guidelines Agreement

5

VII. Length of loan

Aloanmustberepaidinsubstantiallyequalinstallmentsofprincipalandinterest,atleastmonthly,overaperiodthatdoesnotexceedfive(5)years.

Loansforaprincipalresidencemustberepaidinsubstantiallyequalinstallmentsofprincipalandinterest,atleastmonthly,overaperiodthatdoesnotexceed_____________________[statenumberofyears]years(maximum30years).

VIII. Loan repayment process

Loanrepaymentsforactiveemployeesmustbethrough:

p Payrolldeductiononly. PL642(2)=2

p ACHdebitonly.* PL642(2)=0

p EmployeemaychooseeitherpayrolldeductionorACHdebit.* PL642(2)=1

* Pleasenotea$20processingfeewillbeassessedtoaparticipant’sICMA-RCaccountwhenascheduledloanrepayment(s)viaACHisrejectedduetoinsufficientfunds,invalidbankaccountinformation,oraccountclosureintheparticipant’sdesignatedpaymentaccount.

If payroll deduction repayment is allowed,andtheemployeewishestousethismethod,theemployeemustnotifytheEmployersothattheEmployercanensurethatrepaymentwillbeginassoonaspracticableonadatedeterminedbytheEmployer’spayrollcycle.Failuretobeginpayrolldeductioninatimelywaycouldleadtotheemployee’sloanenteringdelinquencystatus.Payrolldeductionshouldbeginwithintwopayrollcyclesfollowingtheemployee’sreceiptoftheloan.

RepaymentsthroughpayrolldeductionwillbesentviacheckorwirebytheEmployertoICMA-RConthefollowingcycle (chooseone):

p Weekly(52peryear) p Bi-weekly(26peryear) p Semi-monthly(24peryear) p Monthly(12peryear)

IfACHdebitrepaymentisallowed,debitsfromtheemployee’sdesignatedbankaccountwillbeginapproximatelyonemonthfol-lowingthedatetheemployee’ssignedACHauthorizationformisreceivedandprocessedbyICMA-RC,or,inthecaseofonlineloans,approximatelyonemonthfollowingthedatetheloancheckhasbeenclearedforpayment.Debitswillnormallybemadeonamonthlybasis.

Loansoutstandingforformeremployeesoremployeesonaleaveofabsencemustberepaidonthesamescheduleasifpayrolldeductionswerestillbeingmadeunlesstheyreamortizetheirloansandestablishanewrepaymentschedulethatprovidesthatsub-stantiallyequalpaymentsaremadeatleastmonthlyovertheremainingperiodoftheloan.

Loanpayments,includingloanpaymentsfromformeremployees,areallocatedtotheparticipant’scurrentelectionofinvestmentoptionsonfilewithICMA-RC.

Theparticipantmaypayoffalloraportionoftheprincipalandinterestearlywithoutpenaltyoradditionalfee.Extrapaymentsareappliedforwardtobothprincipalandinterestasspecifiedintheoriginalrepaymentschedule,unlesstheadditionalpaymentisforthebalancedue.

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IX. Loan interest rate

Therateofinterestforloansoffive(5)yearsorlesswillbebasedonprimeplus0.5%.

TherateofinterestforloansforaprincipalresidencewillbebasedontheFHA/VArate.

Interestratesaredeterminedonthelastbusinessdayofthemonthprecedingthemonththeloanisdisbursed.Theinterestrateislockedinatthetimealoanisapprovedandremainsconstantthroughoutthelifeoftheloan.

Theprimeinterestrateisdeterminedonthelastbusinessdayofeachmonthusingwww.nfsn.com asthesource.TheFHA/VAinterestrateisalsodeterminedonthelastbusinessdayofeachmonthusingwww.bankofamerica.comasthesource.Loaninterestratesfornewloanstakenindifferentmonthsmayfluctuateupwardordownwardmonthly,dependingonthemove-mentoftheprimeandFHA/VAinterestrates.

Theemployermaymodifythemannerinwhichloaninterestrateswillbedetermined,butonlywithrespecttofutureloans.

X. security/collateral

Thatportionofaparticipant’saccountbalancethatisequaltotheamountoftheloanisusedascollateralfortheloan.Thecollat-eralamountmaynotexceed50percentoftheparticipant’saccountbalanceatthetimetheloanistaken.Onlytheportionoftheaccount-balancethatcorrespondstotheamountoftheoutstandingloanbalanceisusedascollateral.

XI. Acceleration [selectone]

p Allloansaredueandpayableinfulluponseparationfromservice.

p Allloansaredueandpayablewhenaparticipantreceivesadistributionofall ofhis/heraccountbalanceaftersepara-tionfromservice.Theamountoftheoutstandingloanbalancewillbereportedasadistributioninadditiontotheamountofcashdistributedfromtheplan.

p Allloansaredueandpayablewhenaparticipantreceivesadistributionofpartofhis/heraccountbalanceaftersepara-

tionfromservice.Theamountoftheoutstandingloanbalancewillbereportedasadistributioninadditiontotheamountofcashdistributedfromtheplan.

XII. reamortization

Anyoutstandingloanmaybereamortized.Reamortizationmeanschangingthetermsofaloan,suchaslengthofrepaymentperi-od,interestrate,andfrequencyofrepayments.Aloanmaynotbereamortizedtoextendthelengthoftheloanrepaymentperiodtomorethanfive(5)yearsfromthedatetheloanwasoriginallymade,orinthecaseofaloantosecureaprincipalresidence,beyondthenumberofyearsspecifiedbytheemployerinSectionVabove.

Aparticipantmustrequestthereamortizationofaloaninwritingonareamortizationapplicationacceptabletotheplanadminis-trator.Uponprocessingtherequest,anewdisclosurestatementwillbesenttotheemployerforendorsementbytheparticipantandapprovalbytheemployer.Theexecuteddisclosurestatementmustbereturnedtotheplanadministratorwithin10calendardaysfromthedateitissigned.Thenewdisclosurestatementisconsideredanamendmenttotheoriginalpromissorynote;thereforeanewpromissorynotewillnotberequired.

Areamortizationwillnotbeconsideredanewloanforpurposesofcalculatingthenumberofloansoutstandingortheoneloanpercalendaryearlimit.

XIII. refinancing existing loans

Ifaparticipanthasoneoutstandingloan,thatloanmayberefinanced.Ifaparticipanthasmorethanoneoutstandingloan,noloansmayberefinanced.Refinancingmeansconcurrentlyrepayinganexistingloanandborrowinganadditionalamountthroughanewloan.Refinancingincludesanysituationinwhichoneloanreplacesanotherloanandthetermofthereplacementloandoesnotexceedthelatestpermissabletermofthereplacedloan.

Loan Guidelines Agreement

7

TherequestmustbemadeatatimewhentheparticipantiseligibletoobtainaloanasdefinedbytheemployerinSectionIIIabove.TheamountoftheadditionalloanamountrequestedforthepurposeofrefinancingissubjecttotheloanlimitsspecifiedinSectionIVabove.

Becausearefinancingisconsideredanewloan,onlyactiveemployeesmayrefinanceanoutstandingloan.Residentialloansarenoteligibleforrefinance.

XIV. reduction of Loan

Ifaparticipantdiespriortofullrepaymentoftheoutstandingloan(s),theoutstandingloanbalance(s)willbedeductedfromtheaccountpriortodistributiontothebeneficiary(ies).Theunpaidloanamountisataxabledistributionandmaybesubjecttoearlywithdrawalpenalties.Theparticipant’sestateisresponsiblefortaxesorpenaltiesontheunpaidloanamount,ifany.Abeneficiaryisresponsiblefortaxesdueontheamountheorshereceives.AForm1099willbeissuedtoboththebeneficiaryandtheestateforthesepurposes.

XV. Deemed Distribution

Loanrepaymentsmustbemadeinaccordancewiththeplandocument,planloanguidelines,andasreflectedinthepromissorynotesignedbytheparticipant.Ifascheduledpaymentisnotpaidwithin30,60,and/or90daysoftheduedate,anoticewillbesenttoboththeemployeeandtheemployer.

Aloanwillbedeemeddistributedwhenascheduledpaymentisstillunpaidattheendofthecalendarquarterfollowingthecalen-darquarterinwhichthepaymentwasdue.IfthetotalamountofanydelinquentpaymentisnotreceivedbyICMA-RCbytheendofthecalendarquarterfollowingthecalendarquarterinwhichtheypaymentwasdue,theloanisconsideredataxabledistribution,andtheprincipalbalance,inadditiontoanyaccruedinterest,isreportedasadistributiontotheIRS.However,nomoneyispaidinthisdistribution,becausetheparticipantalreadyhastheloanproceeds.

Theloanisdeemeddistributedfortaxpurposes,butitisnotanactualdistributionandthereforeremainsanassetofthepartici-pant’saccount.Interestcontinuestoaccrue.Theoutstandingloanbalanceandaccruedinterestarereportedontheparticipant’saccountstatement.

Repaymentofadeemeddistributionwillnotchangeorreversethetaxableevent.

Theloancontinuestobeoutstanding,andtoaccrueinterest,untilitisrepaidoroffsetusingtheparticipant’saccountbalance.Anoffsetcanoccuronlyiftheparticipantiseligibletoreceiveadistributionfromtheplanasoutlinedintheplandocument.Participantsarerequiredtorepayanyoutstandingloanwhichhasbeendeemeddistributedbeforetheycanbeeligibleforanewloan.Thedeemeddistributionandanyinterestaccruedsincethedateitbecameataxableeventistakenintoaccountwhendeter-miningthemaximumamountavailableforanewloan.Newloansmustberepaidthroughpayrolldeduction.

Theemployerisobligatedbyfederalregulationtocomplywiththeloanguidelinerequirementsapplicabletoparticipantloans,andtoensureagainstdeemeddistributionbymonitoringloanrepayments,regardlessofthemethodofrepayment,andbyadvisingem-ployeesifloansareindangerofbeingdeemeddistributed.Thetax-qualifiedstatusoreligibilityoftheentireplanmayberevokedincasesoffrequentrepaymentdelinquencyordeemeddistribution.

XVI. Fees

Feesmaybechargedforvariousservicesassociatedwiththeapplicationforandissuanceofloans.Allapplicablefeeswillbedebitedfromtheparticipant’saccountbalanceand/orfromtheparticipant’sloanrepaymentspriortocreditingtherepaymentofprincipalandinteresttotheparticipant’saccount.AscheduleoffeesapplicabletothisplanisspecifiedinICMA-RC’scurrentpublicationofMaking Sound Investment Decisions: A Retirement Investment Guide.

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XVII. other

Theemployerhastherighttosetothertermsandconditionsasitdeemsnecessaryforloansfromtheplaninordertocomplywithanylegalrequirements.Alltermsandconditionswillbeadministeredinauniformandnon-discriminatorymanner.

InWitnessWhereof,theemployerherebycausedtheseGuidelinestobeexecutedthis____________________________day

of_________________________,20___________.

EMPLOYER Accepted:ICMARETIREMENTCORPORATION

By:_______________________________________ By:_________________________________________

Title:_____________________________________ Title:_______________________________________

Attest:____________________________________ Attest:_______________________________________

Suggested Resolution

SuggeSteD ReSolutioN

Suggested Resolution

sUggesteD resolUtIon for a legIslatIVe BoDyrelatIng to amenDIng a retIrement plan to permIt loans

Section 401 money purchase plan or Section 457 Deferred compensation planSection 401 profit-Sharing plan ICMA-RCPlan#30____________ICMA-RCPlan#10____________

NameofEmployer:______________________________State:_________________________

ResolutionoftheabovenamedEmployer(“Employer”)

WHEREAS,theEmployerhasemployeesrenderingvaluableservices;and

WHEREAS,theEmployerhasestablishedaretirementplan(the“Plan”)forsuchemployeeswhichservestheinterestoftheEmployerbyenablingittoprovidereasonableretirementsecurityforitsemployees,byprovidingincreasedflex-ibilityinitspersonnelmanagementsystem,andbyassistingintheattractionandretentionofcompetentpersonnel;and

WHEREAS,theEmployerhasdeterminedthatpermittingparticipantsintheretirementplantotakeloansfromthePlanwillservetheseobjectives;

NOWTHEREFOREBEITRESOLVEDthatthePlanwillpermitloans.

I,________________________,Clerkofthe(City,County,etc.)of______________________,doherebycertify

thattheforegoingresolution,proposedby(CouncilMember,Trustee,etc.)_________________________,wasduly

passedandadoptedinthe(Council,Board,etc.)ofthe(City,County,etc.)of_____________________________

ataregularmeetingthereofassembledthis__________________________dayof________________________,

20____,bythefollowingvote:

AYES:

NAYS:

ABSENT:

(seal)

________________________________

Clerkofthe(City,County,etc.)

Thisresolutionshouldbereturnedto:

NewBusinessAnalyst

ICMARetirementCorporation

777N.CapitolSt.,NE

Washington,DC20002-4240

Phone800-326-7272

Loan Administration Agreement for Section 457 Deferred Compensation Plans

loaN aDmiNiStRatioN agReemeNtfoR SectioN 457 DefeRReD compeNSatioN plaNS

Loan Administration Agreement for Section 457 Deferred Compensation Plans

IcMA-rc 457 LoAn ADMInIstrAtIon AGrEEMEnt

ThisAgreementisnotrequiredifyouhave1)onlyone457planprovideror2)morethanoneplanprovidereachwithitsownplandocumentandprovisionsuniquetoeachprovider.The Agreement only applies if you have adopted a single 457 plan document under which ICMA-RC and one or more other provider(s) must operate.Pleaserefertopages5-6ofA Guide to Implementing a Loan Programformoredetails.

ThisAgreementshallserveasanAddendumtotheLoanGuidelinesestablishedbytheEmployeridentifiedbelowasanAddendumtotheAdministrativeServicesAgreement(ASA)madebyandbetweentheICMARetirementCorporation(ICMA-RC)andtheEmployer.

TheEmployercurrentlysponsorsasection457deferredcompensationplanadministeredbytwoormoreproviders(co-providerplan).InordertoensuretheefficientadministrationoftheloanprogramestablishedbytheEmployer,theEmployerherebyagreesanddeclaresthat

(1) Forpurposesofissuingloansfromtheplan,thatportionoftheplan’sassetsadministeredby ICMA-RCwillbetreatedasthoughitwereaseparateanddistinctplan.

(2) TheEmployershallcalculatetheamountaparticipantmayborrowfromtheICMA-RCadministeredportionoftheplan.Noloanamountmayexceedthelesserof(a)themaximumloanamountspecifiedinInternalRevenueCodesection72(p)(2)(A)or(b)50%oftheparticipant’sICMA-RC-administeredaccountbalance.

(3) Allloanrepaymentsmustbemadetotheparticipant’sICMA-RC-administeredaccountforthelifeoftheloan.

AGREED asofthe__________dayof______________________,20_______:

NameofEmployer:___________________________________________________________________ AuthorizedOfficial-PrintNameState:___________________________

EmployerPlanNumber3 0 ______________________ SignatureofAuthorizedOfficial

ICMARETIREMENTCORPORATION

____________________________AngelaMontezAssistantSecretary

Mail this Agreement and the completed 457 Plan Loan Guidelines to:ICMA-RC

Attention: New Business Analyst777 North Capitol Street, NE

Washington, DC 20002-4240

Amendment to Adoption Agreement for Section 401 Plans

ameNDmeNt to aDoptioN agReemeNt foR SectioN 401 plaNS

Amendment to Adoption Agreement for Section 401 Plans

ICMARETIREMENTCORPORATIONGOVERNMENTALSECTION401PLAN&TRUST

ADOPTIONAGREEMENT

Belowisanamendmenttoanexistingdefinedcontribution401qualifiedplan.

_____ Yes _____ No

Ifyes,pleasespecifythenameoftheplantowhichthisamendmentapplies: ____________________________________________________________________

I.Employer:_________________________________________________________ II.Loansarepermittedundertheplan,asprovidedinArticleXIIIoftheAdoptionAgreementandintheexecutedLoanGuidelinesAgreement:

_____ Yes _____ No

InWitnessWhereof,theEmployerherebycausesthisAgreementtobeexecutedonthis_____dayof_________________,20_____.

EMPLOYER ICMARETIREMENTCORPORATION By: ___________________________________ By:________________________________ Title: ___________________________________ Name:AngelaMontez

Attest:___________________________________ Title:AssistantSecretary

1

AMENDMENT

ICMA-RCPlan#:________________________1 0

icma-Rc777 NoRth capitol StReet, NeWaShiNgtoN, Dc 20002-4240

800-669-7400WWW.icmaRc.oRg

pKt5010-006-201110-489