Exempt Loan. To the Borrower’s knowledge, no Loan hereunder is for any purpose of Section 406 of ERISA or Section 4975 of the Code a direct or indirect loan or other transaction between the Administrative Agent or any of the Lenders and the ESOT which, if it is assumed that the Administrative Agent and Lenders are “parties in interest” and “disqualified persons” (as defined in Section 3(14) of ERISA and Section 4975 of the Code), is a non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code.
Exempt Loan. This Section 10.03(B) specifically authorizes the Trustee to enter into an Exempt Loan transaction with respect to the Plan. The following terms and conditions will apply to any Exempt Loan authorized by this Section 10.03(B).
Exempt Loan. The Borrower will take all reasonable steps ----------- necessary to insure that the ESOP Loan qualifies as an "exempt loan" under section 4975(d) of the Code, Section 54.4975-7 of the United States Treasury Regulations and Section 408(e)
Exempt Loan. “Exempt Loan” shall mean:
Exempt Loan. This Section 10.03[C] specifically authorizes the Trustee to enter into an Exempt Loan transaction. The following terms and conditions will apply to any Exempt Loan:
Exempt Loan. The term Exempt Loan means a loan made to the Plan by a disqualified person or that is guaranteed by a disqualified person and which satisfies the requirements of income tax regulation Section 54.4975-7(b) and Department of Labor regulation Section 2550.408b-3.
Exempt Loan. The Loan is intended to be a loan exempt from the "prohibited transaction" provisions of Sections 406(a) of ERISA and Section 4975(c)(1)(A) through (c)(1)(E) of the Code by virtue of the provisions of Section 408(b)(3) of ERISA, Section 408(e) of ERISA, Sections 4975(d)(3) and (13) of the Code and the applicable regulations thereunder. The terms of this Agreement, the Notes and the other Loan Documents, and the rights and obligations of the parties hereunder and thereunder, shall be construed and interpreted so as to comply with such provisions and regulations and with rulings thereunder. -47- 42
Exempt Loan. The proceeds of the purchase and sale of the Notes are to be used to refinance the ESOP's 7.24% Senior Secured Notes due March 28, 2011, which Senior Secured Notes were intended to evidence an "exempt loan," as described in Section 4975(d)(3)) of the Code and the Treasury regulations promulgated thereunder, and Section 408(b)(3) of ERISA and the Department of Labor regulations promulgated thereunder. The Notes are also intended to evidence such an "exempt loan".
Exempt Loan. The loan made to the Trust hereunder is intended to be an "exempt loan" within the meaning of Code Section 4975(d)(3) and ERISA Section 408(b)(3). Accordingly, repayment of principal and interest thereon is restricted, and, except as otherwise allowed by Code Section 4975(d)(3) and ERISA Section 408(b)(3), shall be made only from (i) collateral given for the Loan; (ii) employer contributions (other than contributions of employer securities) made to the Trust to repay the Loan; or (iii) earnings attributable to such collateral and the investment of such contributions, including any dividends, earnings or distributions on the ESOP Shares held by the Trust (within the meaning of Treasury Regulation Section 54.4975-7(b)(5)). The Trust shall account for such assets separately on its books of account until all obligations due under this Agreement and the other Purchase Money Loan Documents have been paid in full. Except to the extent permitted herein and in the Purchase Money Pledge Agreement, the Corporation shall have no recourse whatsoever to any other assets of the Trust for repayment. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under such statutes, or regulations issued thereunder, but if any provision of this Agreement shall be prohibited by or invalid under such statutes or regulations, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
