Loan Repayment - Commission Employee

[52626]

Plan offers a loan provison-

Payroll deduction set up for loan payments

Employee A takes a loan and the amortization is set up for bi weekly payments.

The employee is a commission only and for the month was not paid any commission therefore no loan payments were made to the plan.

The employee is not paid a base salary.

Although the plan require loan payments via payroll deduction, if the employee is commission only, then doesn't he have to issue a check to the plan each payroll period for the loan amount. Or issue one check for the outstanding loan payments prior to the end of the cure period?

thanks

[Bird]

Although the plan require loan payments via payroll deduction, if the employee is commission only, then doesn't he have to issue a check to the plan each payroll period for the loan amount. Or issue one check for the outstanding loan payments prior to the end of the cure period?

Pretty much. I always interpret that as "...if possible, but we'll take a check if we have to."

[BG5150]

If the trustee knew or suspected there may not be enough compensation each pay period, did err in granting the loan in the first place?