Interest Charged. The loan interest rate charged is 6% on an annual basis. This rate is charged for the life of the loan. • The loan interest rate earned is 3.5% on an annual basis. This rate is earned for the life of the loan. • This will result in a net rate of 2.5%. • Interest that you earn is credited to your account on a quarterly basis and is applied according to your current modal allocation (i.e., your current allocation of salary reduction and employer contributions under your Plan). If you do not have a current modal allocation, it is allocated among the same investment options and in the same proportion as when the loan was made. • If you make a scheduled loan repayment on or before the due date, earned interest is applied on the due date. If you make your payment during the grace period, earned interest is applied on the day after the grace period ends. • If you have a fully defaulted loan and you are eligible for a distribution, earned interest is credited on the date of default. If you have a fully defaulted loan and you are not eligible for a distribution, earned interest continues to accrue and will be credited to your account on the date you become eligible for a distribution. Amounts used to satisfy your loan request will be withdrawn proportionately from the investment options under the Contract, unless you specify otherwise on your loan request. However, amounts may not be taken from the ING Guaranteed Accumulation Account (GAA) or the ING GET Fund (GET). Amounts withdrawn do not share in the investment experience of the options from which they were withdrawn. If the loan amount you have requested exceeds the amount held in your Contract (not including amounts held in GAA or GET), you will first need to transfer funds from GAA or GET into other investment options under your Contract. If you wish to transfer amounts out of GAA or GET, a separate Allocation Change/Transfer Request is required. Or, you may contact a Customer Service Representative at the Service Center at ▇▇▇-▇▇▇-▇▇▇▇, visit our website at ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇, or call INGAccess at ▇▇▇-▇▇▇-▇▇▇▇. If the Transfer Request and Loan Agreement are received in Good Order on the same day, the Transfer Request will be processed that day and the Loan will be processed the next business day. Funds transferred from GAA prior to the end of the guaranteed term will be subject to a market value adjustment, which may be positive or negative. The amount available for transfers from GET may be more or less than the amount initially deposited into GET. Refer to the GAA or GET prospectuses for more complete information. Loan payments are only payable in U.S. Funds. The first quarterly payment will be due three months after the loan effective date. Future quarterly payments will be due in three month intervals from the first due date. A notice for the quarterly payment amount due will be sent to you approximately 28 days in advance of the due date. You cannot make a quarterly payment until the quarterly notice has been generated. Any payment received before a quarterly notice has been generated will be credited toward the principal. Failure to receive this notice does not extend the due date. If a loan payment is not received by our Service Center within 60 days following the due date (grace period), the entire outstanding loan balance will be in default. Each loan payment will be allocated based on the current modal allocations in effect when the payment is received unless otherwise requested. If you do not have a current modal allocation, your loan payment will be allocated among the same investment options and in the same proportion as when the loan was made, unless otherwise requested. For any loan that is paid in full within the first year of the loan effective date, we reserve the right to allocate the payment among the same investments options as when the loan was made. When we receive a payment in excess of a billed amount, the excess will be applied to the principal portion of the outstanding loan. Payments received when there is no ▇▇▇▇ outstanding, if equal to or greater than a quarterly payment will be applied to the principal portion of the outstanding loan. Payments received that are less than the amount due will be returned to you. Prepayment of the entire loan is allowed. At the time of prepayment, we will ▇▇▇▇ you for any accrued loan interest. The loan will be considered paid when our Service Center receives this amount. To avoid an additional ▇▇▇▇ for accrued interest, call ▇▇▇-▇▇▇-▇▇▇▇ to receive a loan payoff quote. The amount of a loan that is in default and remains outstanding may be repaid in part or in full. Since the defaulted loan is reported as a taxable distribution in the year of default (and subject to the IRS 10% penalty tax that applied to premature distributions, unless an exception applies), the repaid loan balance is treated as cost basis (after-tax contributions). Cost basis is an important consideration at annuitization or withdrawal. For all ILIAC sponsor contracts issued on or after January 1, 2004, any participant with an outstanding defaulted loan will not be permitted to take a subsequent loan until the outstanding defaulted loan and any accrued interest is repaid. This will not apply to ILIAC sponsor contracts issued on or before December 31, 2003. For these contracts, subsequent loans are permitted when there is an outstanding defaulted loan.
Appears in 1 contract
Sources: Loan Agreement
Interest Charged. The loan interest rate Loan Interest Rate charged is 6% on an annual basis. This rate is charged for the life of the loan. • The Interest earned on the remaining loan balances is at a rate which is not less than the loan interest rate earned is 3.5% on an annual basis. This rate is earned for the life of the loan. • This will result in a net rate of 2.5charged, less 2%. • Interest that you earn The interest is calculated daily, accrues in the Loan Account and is credited quarterly to your account on a quarterly basis and is applied according to your current modal allocation (i.e., your current allocation of salary reduction and employer contributions under your Plan). If you do not have a current modal allocation, it is allocated among the same investment options and in the same proportion as when the loan was made. • If you make a scheduled loan repayment on or before the due date, earned interest is applied on the due date. If you make your payment during the grace period, earned interest is applied on the day after the grace period ends. • If you have a fully defaulted loan and you are eligible for a distribution, earned interest is credited on the date of default. If you have a fully defaulted loan and you are not eligible for a distribution, earned interest continues to accrue and will be credited to your account on the date you become eligible for a distribution. Amounts used to satisfy your loan request will be withdrawn proportionately from the investment options under the Contract, unless you specify otherwise on your loan request. However, amounts may not be taken from the ING Guaranteed Accumulation Account (GAA) or the ING GET Fund (GET). Amounts withdrawn do not share in the investment experience of the options from which they were withdrawn. If the loan amount you have requested exceeds the amount held in your Contract (not including amounts held in GAA or GET), you will first need to transfer funds from GAA or GET into other investment options under your Contract. If you wish to transfer amounts out of GAA or GET, a separate Allocation Change/Transfer Request is required. Or, you may contact a Customer Service Representative at the Service Center at ▇▇▇-▇▇▇-▇▇▇▇, visit our website at ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇, or call INGAccess at ▇▇▇-▇▇▇-▇▇▇▇. If the Transfer Request and Loan Agreement are received in Good Order on the same day, the Transfer Request will be processed that day and the Loan will be processed the next business day. Funds transferred from GAA prior to the end of the guaranteed term will be subject to a market value adjustment, which may be positive or negative. The amount available for transfers from GET may be more or less than the amount initially deposited into GET. Refer to the GAA or GET prospectuses for more complete information. Loan payments are only payable in U.S. Fundsaccount. The first quarterly payment will be due three months after the loan effective date. Future quarterly payments will be due in three month intervals from the first due date. A notice for the quarterly payment amount due will be sent to you approximately 28 days in advance of before the due date. You cannot make a quarterly payment until the quarterly notice has been generated. Any payment received before a quarterly notice has been generated will be credited toward the principal. Failure to receive this notice does not extend the due date. Any payments received in between the quarterly payment schedule will be applied to the principal portion of the outstanding loan. If a loan payment is not received by our Service Center the designated location within 60 days following the due date (grace period), the entire outstanding loan balance will be in default. Each loan payment will be allocated based on among the current modal allocations investment options in effect when the payment is received unless otherwise requested. If you do not have a current modal allocation, your loan payment will be allocated among the same investment options and in the same proportion as when the loan payment was made, unless otherwise requestedreceived. For any loan that is paid in full within the first year of the loan effective date, we reserve the right to allocate the payment among the same investments options as when the loan was made. When we receive You may make a payment in excess of a billed amount, or make an extra payment of at least the regular quarterly payment, at any time. Such excess or extra payments will be applied to the principal portion of the outstanding loan. Payments received when there is no ▇▇▇▇ outstanding, if equal to or greater than a quarterly payment will be applied to reduce the principal portion of the outstanding loan. Payments received that are less than the amount due will be returned to you. Prepayment of the entire loan is allowed. At the time of prepayment, we We will ▇▇▇▇ bill you for any accrued loan interestinterest in your next bill. The loan will be considered paid when our Service Center receives we receive this amount. To avoid an additional ▇▇▇▇ bill for accrued interest, call ▇▇▇-▇▇▇-▇▇▇▇ the number provided to receive a loan payoff quote. The amount of a You may elect to repay the loan that is in default. We will accept partial payments on a defaulted loan. We will retain the portion of the payment consisting of accrued interest and the 5% default and remains outstanding may be repaid in part or in fullcharge on the Fixed Plus Account, if applicable. Since the defaulted loan is reported as a taxable distribution in the year of default (and subject to the IRS 10% premature distribution penalty tax that applied to premature distributionstax, unless an exception applies), the repaid loan balance is treated as cost basis (after-tax contributions). Cost Any cost basis is an important consideration not taxed at annuitization or withdrawal. For all ILIAC sponsor Voya Retirement Insurance and Annuity Company contracts issued on or after January 1, 2004, any participant Account Holder with an outstanding defaulted loan will not be permitted to take a subsequent loan until the outstanding defaulted loan and any accrued interest is repaidrepaid in full. This will not apply to ILIAC sponsor Voya Retirement Insurance and Annuity Company contracts issued on or before December 31, 2003. For these contracts, subsequent loans are permitted when there is an outstanding defaulted loan.. Voya Retirement Insurance and Annuity Company PO Box 1515 New York, NY 10116-1515 • The 15 digit account number • The words LOAN PAYMENT • Loan ID # • Plan ID #
Appears in 1 contract
Sources: Loan Agreement