Terminated Participant Loans

[Guest Tim Breedlove]

Professional Corporation, loan proceedures allow terminated participants to continue to pay on their loans. One x employee has a loan that has been habitually past due. The loan is currently 43 dfays past due and we have been advixed that the participant can only pay on the loan once a quarter. They want to re-amortize the loan for quarterly payments, which would not extend beyond the due date of the original note. Would this change be considered a new loan (plan does not allow for new loans to terminated participants) and should the loan be current prior to re-mortization? Thanks for any advice.