John A Posted December 14, 1999 Share Posted December 14, 1999 What would the maximum loan amount be in the following situation: 1-1-99 Participan borrows $14,000 - Loan 1. 3-1-99 Repays $10,000, Outstanding Balance $4,000. 5-1-99 Repays $3,000, Outstanding Balance $1,000. 7-1-99 Borrows $21,000 - Loan 2. 12-1-99 Repays $5,000 - Outstanding Balance of Loan 2 - $16,000. Participant wants to take the maximum possible as Loan 3. What would the maximum be on: 2-28-2000 2-29-2000 3-01-2000 3-02-2000 6-01-2000 Any explanations would also be appreciated. Link to comment Share on other sites More sharing options...
Dawn Hafner Posted December 14, 1999 Share Posted December 14, 1999 From your message I calculate the following outstanding loan balances: 1/1/99 $14,000 3/1/99 $4,000 5/1/99 $1,000 7/1/99 $22,000 12/1/99 $17,000 For each of your dates listed, the $22,000 would be the highest outstanding loan balance in the last 12 months. It also depends on the outstanding loan balance as of the date of the third loan. We don't know this given the facts. If when the third loan is taken the other loans are outstanding for $17,000, then if the participant has a vested balance over $90,000 they could take a maximum loan of $28,000. ($50,000-$22,000) The $90,000 is calculated by $28,000 + $17,000 = $45,000, so must have $90,000 to support this loan level. DMH Link to comment Share on other sites More sharing options...
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