2006 New York Code - Loans.

 
    § 50. Loans.  a. The following may borrow from the retirement system:
    1.  Any  member  in  government service or on leave of absence who has
  credit for at least one year of member service, provided the comptroller
  shall approve such loan. The total of any such loans  shall  not  exceed
  seventy-five per centum of his accumulated contributions.
    2.  Any  member  absent  on  military  duty, as defined in section two
  hundred forty-three of the military law. The amount of  any  such  loan,
  however,  shall  not  exceed  the total of his accumulated contributions
  less one dollar. Such nominal sum of one dollar shall  be  left  in  the
  annuity  savings  fund  to  his  credit  as  a  token  of his continuing
  membership. Any member who:
    (a) While absent on such military duty and  prior  to  October  first,
  nineteen hundred forty-six, withdrew his accumulated contributions, and
    (b)  Re-entered  into  government  service  within  one year after the
  termination  of  such  military  duty,  may  redeposit  and  repay  such
  withdrawn  amount,  with  interest thereon at the rate of six per centum
  per annum to October first, nineteen hundred forty-six,  and  thereafter
  at  the  general rate or rates fixed by the comptroller pursuant to this
  section. In such event such member shall be entitled to the same status,
  rights and privileges as if he had left the nominal sum of one dollar in
  the annuity savings fund as a token of his continuing membership.
    b. Repayment of loans.
    1. An amount  so  borrowed,  together  with  interest  on  any  unpaid
  balances  thereof,  shall be repaid in equal installments which shall be
  deducted from the member's compensation. Such  additional  contributions
  shall  be  in  such amount as the comptroller shall approve. They shall,
  however, be at least equal to the member's normal  contribution  to  the
  retirement system, or ten dollars per month, whichever is lower.
    2.  In  the  case of repayment by a member on leave of absence without
  pay, however, any such loan shall be  repaid  in  such  installments  of
  principal and interest as the comptroller shall determine.
    c.  The  comptroller,  at  any  time, while the borrowing member is in
  government service or on leave of absence therefrom, may accept payments
  on account of any  loan  in  addition  to  the  installments  fixed  for
  repayment thereof.
    d.  The  rate  of  interest payable upon loans made under this section
  shall be fixed by the comptroller. He shall have  power,  from  time  to
  time  and  at  any  time, to decrease such rate to not less than regular
  interest or to increase the same to not more than  six  per  centum  per
  annum.  Any  such  decrease  or increase shall apply, from the effective
  date thereof, to unpaid balances or loans outstanding on such  date  and
  to  new  loans made thereafter. The comptroller shall adjust any prepaid
  and unearned interest  on  balances  of  loans  outstanding  as  of  the
  effective date of a change in the interest rate.
    e. The borrowing member's anuuity savings account shall not be reduced
  by  the  loan  obtained  but  a  subsidiary  record  shall be maintained
  reflecting the  outstanding  balance  on  such  loan,  as  well  as  the
  allocation of the payroll deductions to principal and interest. Upon the
  member's  withdrawal of his accumulated contributions or retirement, the
  balance due on his loan shall be deducted from the amount to his  credit
  at  such  time in the annuity savings fund. Upon the death of the member
  prior to the loan being fully insured, that  portion  thereof  which  is
  uninsured,  shall similarly be deducted from the amount to his credit at
  the time of his death in the annuity savings fund.
    f. In the case of any benefit wherein the amount of  pension  will  be
  determined,  in  part,  by  the amount of annuity, such annuity shall be
  computed upon the basis of accumulated contributions as if there were no
  loan or no additional contributions. The resulting retirement  allowance
  shall  then  be reduced by the actuarial equivalent of the present value
  of any oustanding loan.
    g.  Insurance  of loans. Each loan made pursuant to this section shall
  be insured against the death of the member.   Such  insurance  shall  be
  provided  by  the  comptroller  through  the  retirement system upon the
  following basis:
    1. Amount of insurance. Each loan made pursuant to this section  shall
  be  insurable in its entirety and shall be insured thirty days after the
  making thereof.
    2. Premiums. In March of each year, premiums at the  rate  established
  by  the  directive of the comptroller, in effect during such year, shall
  be charged to  the  member's  annuity  savings  account.  In  pro-rating
  premiums,  the  major  part  of  a  month shall be considered as a whole
  month. If the member during this  period  withdraws  his  contributions,
  dies  or  retires,  the  premium  to  be  charged  at  the  time of such
  withdrawal, death or retirement shall be based on the number  of  months
  which had elapsed since the beginning of the fiscal year.
    3.  Loans heretofore made. Each loan made pursuant to law prior to the
  effective date of this section as hereby amended, shall be insured  from
  that  date  upon  the terms and conditions set forth in this section, as
  hereby amended. Premiums after such date shall be deducted in accordance
  with the provisions of this section.
    4. Funds. The comptroller is authorized to establish such funds as may
  be necessary to carry out the provisions of this subdivision g.
    5. Power of comptroller. The comptroller, in his discretion and at the
  end of any fiscal year, may increase or reduce the premium;  modify  the
  terms and conditions of coverage or discontinue the insurance of loans.
    6.  Continuity  of  insurance not obligatory. This subdivision g shall
  not impose any obligation whatsoever upon the retirement system  or  any
  employer  to  continue  to  insure  loans  of members upon the terms and
  conditions herein provided or upon any other terms and conditions.