Dell 2003 Annual Report Download - page 116

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within a reasonable time is to be used (determined at the time the loan is made) as a principal residence of the Participant, in which case the loan
must be repaid over an amortization period of five to twenty years), (iii) allow prepayment without penalty at any time, provided that any
prepayment must be for the full outstanding loan balance (including interest), (iv) require that the balance of the loan (including interest) shall
become due and payable (to the extent not otherwise due and payable) within ninety days of the date the Participant or, if applicable, the
Participant's beneficiary, is first entitled to a distribution from the Plan (other than a distribution pursuant to Article VIII) irrespective of whether
such Participant or beneficiary elects or consents to such distribution, and (v) provide that such Participant's outstanding loan balance (including
interest), if not paid in accordance with the repayment provisions of the loan, shall be treated as a deemed distribution upon the end of the "cure
period" permitted by applicable Treasury Regulations and repaid by offsetting such balance against the amount in the Participant's segregated loan
fund pledged as security for the loan. With respect to the correction of a loan pursuant to the "cure period" provisions of Treas. Reg.
Section 1.72(p)-1, Q&A-10, the Employer may adopt a nondiscriminatory policy which permits Participants who have failed to make one or more
loan payments to make addition payments to the Plan's Trust prior to the end of the applicable "cure period" in the amount necessary to permit such
Participant's loan not to be treated as a deemed distribution.
(c) The above notwithstanding, a Participant who is on an unpaid leave of absence from the Employer may elect to suspend payments on his loan
during such leave of absence for a period of up to one year. Upon such Participant's return to active employment with the Employer at the
conclusion of such leave of absence, or upon the expiration of such one-year period, if earlier, such Participant shall be permitted to refinance his
loan, including all accrued and unpaid interest, over a term that does not extend beyond the expiration of the original term of the loan.
(d) Amounts tendered to the Trustee by a Participant in repayment of a loan made pursuant to this Article (i) shall initially be credited to the
Participant's segregated loan fund, (ii) then shall be transferred as soon as practicable following receipt thereof to the Account or Accounts from
which the Participant's loan was made, and (iii) finally, shall be invested in accordance with the current designation in effect as to the investment of
contributions being allocated to such Accounts pursuant to Article V.
9.6 Default and Offset.
(a) If the Participant fails in any way to comply with the repayment terms of a loan, such loan shall be repaid by offsetting the Participant's outstanding
loan balance (including interest) against the amount in the Participant's segregated loan fund pledged as security for the loan. Except as provided in
Subsection 9.6(b), any such outstanding loan balance (including interest) shall be so offset and repaid as soon as administratively feasible after
such failure to comply, and such repayment -48-