ESOP Loans Sample Clauses
ESOP Loans. This Plan and Trust, acting through the Trustee, may, from time to time, enter into an ESOP Loan, which Loan may either be made by one or more of the Participating Employers to the Plan or made by another Lender to the Plan and guaranteed by a Participating Employer. An ESOP Loan may be a direct loan of cash, a purchase-money transaction or an assumption of an obligation of the Plan.
ESOP Loans. Each ESOP Lender hereby authorizes the Agent to ---------- enter into the ESOP Agreements on its behalf and accepts an interest in the ESOP Loans in an amount equal to the amount set forth opposite such ESOP Lender's name under the heading "ESOP Lenders" on Schedule I hereof.
ESOP Loans. The Committee may from time to time direct the Trustee to incur debt (an "ESOP Loan") on terms specified by the Committee for the purpose of acquiring Common Stock or for the purpose of repaying all or any portion of any outstanding ESOP Loan, subject to the following:
(a) Each ESOP Loan shall be for a specific term.
(b) The interest rate with respect to an ESOP Loan may be fixed or variable; provided, however, that in either case such rate shall not be in excess of a reasonable rate of interest taking into account all relevant factors, including the amount and duration of the ESOP Loan, the security and the guarantee, if any, and the credit standing of the Plan and the guarantor, if any.
(c) The only Trust assets which may be given as collateral for an ESOP Loan are Common Stock acquired with the loan proceeds, or with the proceeds of any prior ESOP Loan to the extent that such prior ESOP Loan is repaid with the proceeds of the current ESOP Loan. Any such collateral shall be released as provided in Section 6.3.
(d) Under the terms of the ESOP Loan, no person entitled to payment thereunder shall have any right to any Plan assets other than (i) collateral, if any, given for the ESOP Loan in accordance with subparagraph (c) above, (ii) Employer contributions (other than contributions of employer securities) that are made to enable the Trust to meet its obligations under the ESOP Loan, and (iii) earnings attributable to such collateral and to the investment of such contributions.
(e) Subject to paragraph (d) above, the ESOP Loan shall be without recourse against the Plan.
(f) Subject to the use of the proceeds of a new ESOP Loan to refinance (in whole or in part) an existing ESOP Loan, payments during any Plan Year on all outstanding ESOP Loans shall not exceed an amount equal to the sum for all Plan Years of all contributions described in Section 6.2(d)(ii) and earnings on assets of the ESOP, reduced by all prior payments on ESOP Loans during all prior Plan Years.
(g) In the event of a default under the ESOP Loan, the value of Plan assets transferred in satisfaction of the ESOP Loan shall not exceed the amount of the default. If the lender is a disqualified person (as defined in Section 4975(e) of the Code) or a party in interest to the Plan (as defined in Section 3(14) of ERISA), the ESOP Loan shall provide for a transfer of Plan assets upon default only upon and to the extent of the failure of the Plan to meet the payment schedule of the ESOP Loan.
(h) The...
ESOP Loans. The ESOP Trust has no outstanding indebtedness other than the ESOP Loans and the ESOP Advance.
ESOP Loans. 2 5.2 Use of ESOP Loan proceeds.................................. 2 5.3 Liability and collateral on ESOP Loan...................... 2 5.4 Default.................................................... 2 5.5 Rate of interest........................................... 2 5.6 Release of collateral for ESOP Loan........................ 2