Common use of Maximum Loan Clause in Contracts

Maximum Loan. The maximum amount a Participant may borrow, including the outstanding balance of existing Plan loans, is 50% of his or her vested Account balances, not to exceed $50,000. However, the $50,000 maximum is reduced by the Participant’s highest outstanding loan balance during the 12 month period ending on the day before the day the loan is processed. For purposes of this paragraph, the qualified plans of all Related Companies shall be treated as though they are part of this Plan to the extent it would decrease the maximum loan amount.