KJohnson Posted January 11, 2001 Posted January 11, 2001 I can't put my hands on any surveys, but I seem to recall that roughly 70% or more of plans use prime or prime plus one as an interest rate for plan loans. A local savings and loan is quoting prime minus one for a loan secured by a savings account balance. Given this "local rate" what do you feel the exposure, if any, would be if such a rate were used for a plan loan secured by a plan account balance?
Jon Chambers Posted January 11, 2001 Posted January 11, 2001 I've heard (anecdotally only) that DOL doesn't like below prime loans. Jon C. Chambers Schultz Collins Lawson Chambers, Inc. Investment Consultants
Alf Posted January 12, 2001 Posted January 12, 2001 I think that the labor regs require the use of whatever lenders in that area are charging on a comparable loan. If my memory is correct, aren't you required to use the prime minus one?
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