Loan for just one quater-is this OK

[jane123]

Loans cannot be repaid in a balloon repayment insteady of being amortized and not less than quarterly- true.

But what about the following scenario.

Participant borrowed $10,000.

Wants to repay loan in one lump-sum payment at the first quarter ( within 90-days) according to amortization schedule.

Is there anything that says a loan cannot be less than for a certain period?

I could not find anything in the code that would suggest that this is wrong.

Any help is greatly appreciated.

Thanks

Jane

[Bird]

I don't see any problem with it. I assume it wasn't set up on payroll deduction, and even if it was, as long as prepayments are permitted, it's OK.

[RCK]

The generic answer is always "what does the plan say?", but in this case, it should be "what does the promissory note say?"

RCK