Sec. 5004.3. Additional eligibility requirements for Tier 3 through 6 members

(a) Members must not have previously received a loan during the calendar year (January 1st-December 31st) in which the loan is to be issued. A member must apply by December 15th in order to assure the loan is issued by December 31st.

(b) A loan shall be at least $1,000 and, together with any outstanding loan balance, shall not exceed 75 percent of the member's total contributions. To the extent that the loan satisfies the requirements of section 72(p) of the Internal Revenue Code except that the amount loaned exceeds the limitations of section 72(p)(2)(A) of the Internal Revenue Code, the amount of the loan in excess of the limitations of section 72(p)(2)(A) shall be treated as a deemed distribution for Federal income tax purposes at the time the loan is made in accordance with Treasury Regulation section 1.72(p)-1, Q&A-4 and Q&A-12.