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Nationwide Retirement Solutions Governmental 457(b) Plan Loan Procedures Page 3 of 6 Plan Name: INDIAN RIVER COUNTY BOCC DEFERRED COMPENSATION PLAN 15. Suspension of Loan Repayments. a. Military Leave of Absence - A Participant's obligation to repay any loan under the Plan may be suspended as may be required by law, during the period in which the Participant is performing service in the United States military. The Participant must resume repayment of the loan upon his or her completion of military service and the outstanding loan balance, including any accrued interest and fees, must be repaid and may be re -amortized over a period that does not exceed the latest permissible term for a loan under the regulations plus the period of the military service. While the Participant is on active duty in the United States military, the interest rate on the loan shall not exceed 6%, compounded annually unless the Participant elects in writing during or after his or her military leave of absence to have the loan's higher existing interest rate, if applicable, apply to the loan. The Plan Sponsor assumes responsibility to notify NRS when a Participant begins and returns from a military leave of absence. b. Non -Military Leave of Absence - In addition, a Participant's obligation to repay any loan under the Plan may be suspended during the period (not to exceed one year) while the Participant is on an approved non-military leave of absence and the Participant provides requested documentation regarding the non-military leave of absence from his or her employer. The Participant must resume repayment of the loan upon the earlier of his or her return from non-military leave of absence, or one year of suspension. At such point the outstanding loan balance, including any accrued interest and fees, must be repaid or may be re -amortized over a period that does not exceed the latest permissible term for a loan under the regulations. The Plan Sponsor assumes responsibility to notify NRS when a Participant begins and returns from a non military leave of absence. 16. Loan Interest Rate - The interest rates for a loan shall be commensurate with interest rates being charged by entities in the business of lending money under similar circumstances. The loan interest rate will be the Prime Rate plus an additional amount expressed as a percentage elected by the Client, plus any other administrative and/or asset fees, as applicable. The Prime Rate shall be the prime rate published by the Wall Street Journal two weeks prior to the end of the most current calendar -year quarter and the new rate will be effective on the first day of the new calendar quarter. The loan interest rate may be adjusted for Participants performing service in the United States military as may be required by law (See Provision 15a.) 17. Fees - Fees described in these loan procedures will appear as administrative charges on Participant statements. These fees are subject to change by NRS upon reasonable notice to the Plan Sponsor. a. Loan Initiation Fee - A loan initiation fee of $125 will be deducted from the Participant's account at the time the loan is funded. b. Annual Loan Maintenance Fee - An annual loan maintenance fee of $0 will be deducted from the Participant's account on the anniversary date of the original loan initiation, until the loan is repaid in full or the loan has defaulted. In the event that the loan defaults, the annual loan maintenance fee will no longer be assessed and the annual loan default fee described below (See Provision 17f) will be applied. c. Asset Fees - The amount of the outstanding loan balance will be subject to the maximum asset fee, administrative charge or such other fees NRS is entitled to receive under its separate agreement with the Plan Sponsor. d. Insufficient Funds Fee - If NRS is unable to process an ACH debit repayment or personal check on the date due, through no fault of NRS, a fee of $25 will be deducted from the Participant's account. e. Loan Default Fee - At the time a loan is treated as a deemed distribution, a $50 fee will be deducted from the Participant's account. f. Annual Loan Default Fee - An annual loan default fee of $50 will be will be deducted from the Participant's account on the anniversary date of the original loan default until the loan is repaid in full or offset. P5 2 NRN-0854AO.3 (07/2015)