2006 New York Code - Rules Regulating Loans To Members.

 
    §  13-342 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  seventy-five  per  cent  of  the
  amount   of   his  or  her  accumulated  contributions  (as  defined  in
  subdivision seven of section 13-313 of this subchapter), in the case  of
  an  original  plan  member,  or an amount not exceeding seventy-five per
  cent of the amount of his or her accumulated deductions (as  defined  in
  subdivision  seven-a of such section 13-313), in the case of an improved
  benefits plan member, provided that the amount so borrowed by  any  such
  original  plan  member  or  improved benefits plan member, together with
  interest thereon, can be repaid  before  attainment  of  age  sixty-five
  years  by  additional  deductions  of  ten  per  cent  from  his  or her
  compensation made at the same time compensation is paid to  the  member.
  Upon retirement, an original plan member may borrow up to ninety percent
  of  his  or  her  accumulated  contributions.  An improved benefits plan
  member may borrow up  to  ninety  percent  of  his  or  her  accumulated
  deductions.  The  amount  so  borrowed  together  with  regular interest
  applicable to the member (if he or she is an original  plan  member)  or
  creditable  to  his or her account (if he or she is an improved benefits
  plan member) on any unpaid  balance  thereof  shall  be  repaid  to  the
  pension fund 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 cent of the  member's  earnable  compensation
  and  at  least  sufficient  to repay before attainment of age sixty-five
  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 improved benefits plan member whose rate or 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 in the  case  of  an
  original  plan  member,  or to his or her accumulated deductions, in the
  case of an improved benefits plan member.