2006 New York Code - Rules Regulating Loans To Members.

 
    §  13-239 Rules regulating loans to members. Any member who shall have
  been a member continuously at least three years,  may  borrow  from  the
  pension  fund,  subject to such rules and regulations as may be approved
  by such board, an amount not exceeding ninety per centum of  the  amount
  of  his  or  her  accumulated  contributions provided that the amount so
  borrowed together with interest thereon, can be repaid before attainment
  of age sixty-three years by additional deductions of ten per centum from
  his or her compensation made at the same time compensation  is  paid  to
  the  member.  The  amount  so  borrowed  together  with regular interest
  creditable to the account of the member on any  unpaid  balance  thereof
  shall  be  repaid  to the pension fund in equal instalments by deduction
  from the compensation of the member at  the  time  the  compensation  is
  paid,  but  such  instalments  shall  be  at least two per centum of the
  member's earnable compensation and at least sufficient to  repay  before
  attainment  of  age sixty-three years, the amount borrowed with interest
  thereon. Notwithstanding anything to the contrary  in  this  subchapter,
  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 pension fund. In lieu of loan, any member whose rate of contribution
  is  cancelled,  may  withdraw  from  his  or her account and may restore
  thereto in any year as he or she may elect any  sum  in  excess  of  the
  maximum in his or her annuity savings account and due thereto at the end
  of the calendar year in which he or she became entitled to cancel his or
  her  rate.  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  except that each loan made pursuant to this
  section shall be insured by  the  pension  fund,  without  cost  to  the
  member,  against  the  death  of  such member in an amount up to but not
  exceeding twenty-five 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 credited to his or her accumulated contributions.