Interest on loan for leverated ESOP exceeds note P&I amount

[Guest GS1100]

In 2000, the interest rate we are using is 9.5% and it causes the interest on the loan to exceed the stated P&I payment. My thinking is the plan is required to pay the entire interest amount as the required payment. As the share release formula is based on current and future payments, do I need to bump up future payments to cover the higher interest rates for the duration of the loan?

Thanks

[RLL]

Hi GS1100 ---

What do the loan documents say? The ESOP is required to make loan payments only to the extent provided in the loan documents.

In determining the number of shares to be released for allocation each year under the P + I rule, if the interest rate under the loan is variable, the interest to be paid in future years must be computed by using the interest rate applicable as of the end of the plan year.