Common use of Loans to Former Members Clause in Contracts

Loans to Former Members. Notwithstanding any other provisions of this Article VIII, a member who terminates Employment for any reason shall be permitted to continue making scheduled repayments with respect to any loan balance outstanding at the time he becomes a terminated Member. In addition, a terminated Member may elect to initiate a new loan from his Account, subject to the conditions otherwise described in this Article VIII. If any terminated Member who continues to make repayments or who borrows from his Account pursuant to this Section 8.8 fails to make a scheduled monthly installment payment within 60 days of the scheduled payment date, he will be deemed to have received a distribution of the outstanding balance of the loan.