2 loan default questions

[FundeK]

1. Can a participant just choose to have their loan deemed? Say they haven't reached the end of the cure period, but want to have their loan deemed because they say they won't be able to make payments. The loan policy says that a loan will be deemed, if at the end of the cure period, missed payments have not been made up. Would it be a violation of the loan policy to default the loan early?

2. When does the cure period end for a participant who is returning from a 12 month leave of absence? Loan policy allows participant to suspend for up to one year for unpaid leave of absence. I know that a loan goes into default after the first missed payment, and will either be deemed or offset at the end of the cure period. Is the first missed payment in this case, the first payment due after the leave ends? Example....

Participant goes on leave on 2/1/03, was current on monthly loan payments when leave commenced. 12 month period ends on 2/1/04. If he does not resume payments, would you deem after 6/30/04, because the 3/1/04 payment is the 1st on missed, or do you consider the 3/1/03 payment to be the first one missed?

Thanks