2006 New York Code - Rules Regulating Loans To Members.

 
    §  13-140  Rules  regulating loans to members. * a. Any member in city
  service who shall have been a member continuously at least three  years,
  may  borrow  from the contingent reserve fund, subject to such rules and
  regulations as may be approved by such board, an  amount  not  exceeding
  seventy-five  per  centum  of  the  amount  in his or her account in the
  annuity savings fund. The rate of interest  payable  on  any  loan  made
  under  this  section  shall  be  two  per centum higher than the rate of
  regular interest creditable to the account of the member. The amount  so
  borrowed,  together with interest on any unpaid balance thereof shall be
  repaid to the retirement system in equal installments by deduction  from
  the compensation of the member at the time the compensation is paid, but
  such  installments  shall  be  at  least five per centum of the member's
  earnable compensation. All payments of principal and  interest  made  by
  such member shall be credited to the contingent reserve fund.
    * NB Amended Ch. 642/85 § 1, language juxtaposed per Ch. 907/85 § 14
    * b.  Each  loan made pursuant to this section shall be insured by the
  retirement system, without cost to the member, against the death of such
  member in an amount up to but not exceeding  ten  thousand  dollars,  as
  follows:
    1. Until thirty days have elapsed after the making thereof, no part of
  the loan shall be insured.
    2.  From  the  thirtieth  through the fifty-ninth day after the making
  thereof, twenty-five per centum of the present value of the  outstanding
  loan shall be insured.
    3.  From  the  sixtieth  through the eighty-ninth day after the making
  thereof, fifty per centum of the present value of the  outstanding  loan
  shall be insured.
    4. On and after the ninetieth day after the making thereof, all of the
  present value of the outstanding loan shall be insured.
    Upon  the  death of a member, the amount of insurance so payable shall
  be used to reduce the outstanding loan.
    * NB Amended Ch. 521/85 § 1, language juxtaposed per Ch. 907/85 § 14
    c. Notwithstanding anything to  the  contrary  in  this  chapter,  the
  additional  deductions required to repay the loan shall be made, and the
  interest paid on the loan shall be credited to the proper funds  of  the
  retirement  system.  The actuarial equivalent of any unpaid balance of a
  loan at the time any benefit may become payable shall be  deducted  from
  the  benefit  otherwise  payable.  A  retiree  whose benefit has been so
  reduced may repay the outstanding balance  of  the  loan  at  any  time.
  Benefits payable after repayment of the loan shall not be subject to the
  actuarial reduction required by this subdivision.
    d. In lieu of a loan, a member whose rate of contribution is cancelled
  may,  (i)  if  he  or  she  is not a participant in the variable annuity
  program, withdraw from his or her account in the annuity  savings  fund,
  and  may  redeposit to such account at such time as he or she may elect,
  any sum in excess of the amount due in such account at the  end  of  the
  calendar  year in which such member became entitled to cancel his or her
  rate, and (ii) if he or she is a participant in  the  variable  program,
  withdraw  from  his  or her accounts in the annuity savings fund and the
  variable annuity savings fund, and may redeposit to the  former  account
  at  such  time  as  he or she may elect, any sum in excess of the amount
  that, if he or she were not a participant, would have been  due  in  the
  former account at the end of the calendar year in which he or she became
  entitled to cancel his or her rate.
    e.   Effective   January  first,  nineteen  hundred  seventy-one,  all
  outstanding loans repayable to the annuity savings fund shall be assumed
  by the contingent reserve fund. An amount equal to the present value  of
  such  outstanding  loans,  calculated  at  regular  interest,  shall  be


  transferred from the contingent reserve  fund  to  the  annuity  savings
  fund,  and  all  repayments  shall  thereafter be made to the contingent
  reserve fund.