The Hartford 2008 Annual Report Download - page 783

ARTICLE NINE
MEMBER LOANS
BEFORE TERMINATION OF EMPLOYMENT
9.1 Request for a Loan; Consequences of Request. At any time before Termination of Employment, a Member may make
a request, in a manner and by the date required by the Plan Administrator, for a loan of a whole dollar amount from his or
her Accounts. By making such a request, the Member (A) specifies the amount and the term of the loan, (B) agrees to the
annual percentage rate of interest, (C) agrees to the finance charge, (D) promises to repay the loan, and (E) authorizes the
Company to make regular payroll deductions to repay the loan. Loans will be permitted only if all of the conditions
described in the next paragraph are satisfied. Permitted loans will be deducted from Member Accounts as of the Loan
Valuation Date, and will be paid in cash as soon as practicable thereafter. Amounts so deducted will not participate in the
investment experience of the Plan.
9.2 Conditions for Taking a Loan.
(A) Minimum Loan Amount. The loan must be at least $500, but cannot exceed the lesser of: (a) 50% of the
Member’s Vested Share (determined based on the most recent information available to the Plan Administrator), or (b)
$50,000 minus the Member’s highest outstanding loan balance (if any) during the preceding one year period.
(B) Order of Sources for Loans. Loans can only be taken from the Accounts listed in Section 9.3, and they must also
be taken according to the order of sources for loans listed in that Section, such that the full amount must be borrowed
from each source on the list, beginning with the first source on the list, before any amount may be borrowed from the
next source on the list (unless otherwise stated on the list).
(C) Required Term and Repayment Schedule . The loan must be repaid no less frequently than on a monthly basis
over a period of twelve, twenty-four, thirty-six, forty-eight or sixty months, except that a Member who requests a loan
to buy his or her own principal residence may repay the loan over a period of seventy-two through one hundred-eighty
months, in twelve month increments. Extensions of loan terms will not be permitted after a loan is made. If a Member
is serving in the Armed Services of the United States and loan repayments are suspended pursuant to Section 9.5, the
term of the loan will be extended by the period of military service to the extent consistent with Code Section 414(u).
(D) Maximum Number of Loans. A Member may have no more than two loans outstanding at any time. Employees
who become Members of the Plan on January 1, 2009 as a result of the merger of the Planco Profit Sharing Plan into
this Plan shall be permitted to continue to have three loans outstanding until one of the three is repaid in full, if they
have three outstanding at the time of the plan merger.
(E) Other Conditions. The Plan Administrator may make such additional conditions or rules for taking loans as may
be determined appropriate in its sole discretion, which conditions shall be in writing and communicated to Members.
Such written conditions are incorporated herein by reference.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009