The Hartford 2008 Annual Report Download - page 785

9.5 Other Repayment Terms; Prepayment . Loan repayments will be made to the Accounts from which the loan was taken
in reverse order, beginning with the last source in Section 9.3 from which the loan was taken, and working backwards to the
first source. Repayments will be invested in the Investment Funds in accordance with the Member’s investment elections at
the time of repayment. No loan repayment will be credited with investment experience under the Plan until the date
designated by the Plan Administrator. The entire outstanding balance of a loan may be prepaid at any time, with interest
through the date of prepayment. The date of prepayment will be date designated by the Plan Administrator. If a Member is
serving in the Armed Services of the United States, loan repayments will be suspended during the period of active service.
Upon completion of active military service, loan repayments will resume.
9.6 Loan Default during Employment. Under certain circumstances, including, but not limited to, the failure of a Member
to make repayment of a loan for ninety (90) days, or the impending bankruptcy of the Member, the Plan Administrator may
declare a Member’s loan to be in default. In the event default is declared, the outstanding loan balance and any accrued
interest may be treated as a withdrawal before Termination of Employment under Article Ten to the extent that the Member
is eligible to make such a withdrawal.
9.7 Outstanding Loan Balance at Termination of Employment.
(A) Certain Members Eligible to Continue Loan Repayments. Upon Termination of Employment of a Member who
(i) has a Vested Share of $5,000 or more (effective March 28, 2005, more than $1,000), and (ii) has not elected a
distribution of his or her Accounts from the Plan, such Member may elect to continue to make loan repayments on his
or her outstanding loan balance in the manner approved by the Plan Administrator. If such a Member fails to make a
valid election to continue loan repayments, or elects a distribution of his or her Accounts from the Plan, then the
provisions of the next succeeding paragraph shall apply.
(B) Other Members. Upon Termination of Employment of a Member who does not satisfy the requirements of the
immediately preceding paragraph, the outstanding loan balance of such a Member shall become due and payable and
shall either be canceled or, if the Member so elects, prepaid in full to his or her Accounts with interest to the date of
prepayment. Any prepayment must be made by the Valuation Date following Termination of Employment or, if earlier,
the Valuation Date that applies to the Member’s distribution or deferral election.
9.9 Death after Request for Loan. If a Member requests a loan and dies after the issuance of any check for any part of such
loan, but before negotiation of such check, then any unpaid part of the loan as represented by the non-negotiated check will
be paid to the Member’s estate. If a Member requests a loan and dies before the issuance of any check for any part of such
loan, then the request for the loan shall be null and void with respect to the part of the loan represented by the check that was
not issued. For purposes of this Section, a check will be considered issued on the earlier of (i) the date of issuance shown on
the check, or (ii) the Loan Valuation Date.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009