DOL makes loans less laborious.
The U.S. Department of Labor has removed the final obstacle to allowing interest-free loans to employee benefit plans facing a cash crunch.
The DOL DOL - Display Oriented Language. Subsystem of DOCUS. Sammet 1969, p.678. finalized See finalization. an amendment to omit o·mit
tr.v. o·mit·ted, o·mit·ting, o·mits
1. To fail to include or mention; leave out: omit a word.
2.
a. To pass over; neglect.
b. a three-day repayment requirement from the interest-free, unsecured loans Unsecured Loan
A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.
Notes:
Generally, a borrower must have a high credit rating to receive an unsecured loan. it permits for plans when the ability to pay benefits is in jeopardy. This allows the employer or other party to make an emergency loan when the plan faces liquidity problems.
[ILLUSTRATION OMITTED]
Review the amendment at www.dol.gov/ebsa/regs/fedreg/notices/2006005075.htm.
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