ESOP note matures and employer wants a new loan?

[Guest Bristol]

Leverage ESOP note matures in two years and the Employer wants to "reload the plan" with a new ESOP note. If the employer wants to continue the ESOP, is a new loan permissable and what are the requirments? How soon is the plan allowed to purchase new shares from the employer with a new leverage loan?

[RLL]

Bristol ---

There is no specific limit to the number of loans an ESOP may incur to acquire employer stock....so long as each transaction satisfies the requirements of IRC Section 4975(d)(3) and ERISA Sections 408(B)(3), 408(e) and 404(a)(1). In fact, an ESOP may have multiple loans at the same time.