§ 350 — Loans

§ 350. Loans. a. The following may borrow from the police and fire\nretirement system:\n 1. Any member in government service or on leave of absence who has\ncredit for at least one year of member service, provided the comptroller\nshall approve such loan. The total of any such loans shall not exceed\nseventy-five per centum of his accumulated contributions.\n 2. Any member absent on military duty, as defined in section two\nhundred forty-three of the military law. The amount of any such loan,\nhowever, shall not exceed the total of his accumulated contributions,\nless one dollar. Such nominal sum of one dollar shall be left in the\nannuity savings fund to his credit as a token of his continuing\nmembership. Any member who:\n (a) While absent on such military duty and prior to October first,\nnineteen hundred forty-six, withdrew his accumulated contributions, and\n (b) Re-entered into government service within one year after the\ntermination of such military duty, may redeposit and repay such\nwithdrawn amount, with interest thereon at the rate of six per centum\nper annum to October first, nineteen hundred forty-six, and thereafter\nat the general rate or rates fixed by the comptroller pursuant to this\nsection. In such event such member shall be entitled to the same status,\nrights and privileges as if he had left the nominal sum of one dollar in\nthe annuity savings fund as a token of his continuing membership.\n b. Repayment of loans.\n 1. An amount so borrowed, together with interest on any unpaid\nbalances thereof, shall be repaid in equal installments which shall be\ndeducted from the member's compensation. Such additional contributions\nshall be in such amount as the comptroller shall approve. They shall,\nhowever, be at least equal to the member's normal contribution to the\npolice and fire retirement system, or ten dollars per month, whichever\nis lower.\n 2. In the case of repayment by a member on leave of absence without\npay, however, any such loan shall be repaid in such installments of\nprincipal and interest as the comptroller shall determine.\n c. The comptroller, at any time, while the borrowing member is in\ngovernment service or on leave of absence therefrom, may accept payments\non account of any loan in addition to the installments fixed for\nrepayment thereof.\n d. The rate of interest payable upon loans made under this section\nshall be fixed by the comptroller. He shall have power, from time to\ntime and at any time, to decrease such rate to not less than regular\ninterest or to increase the same to not more than six percentum per\nannum. Any such decrease or increase shall apply, from the effective\ndate thereof, to unpaid balances or loans outstanding on such date and\nto new loans made thereafter. The comptroller shall adjust any prepaid\nand unearned interest on balances of loans outstanding as of the\neffective date of a change in the interest rate.\n e. The borrowing member's annuity savings account shall not be reduced\nby the loan obtained but a subsidiary record shall be maintained\nreflecting the outstanding balance on such loan, as well as the\nallocation of the payroll deductions to principal and interest. Upon the\nmember's withdrawal of his accumulated contributions or retirement, the\nbalance due on his loan shall be deducted from the amount to his credit\nat such time in the annuity savings fund. Upon the death of the member\nprior to the loan being fully insured, that portion thereof which is\nuninsured, shall similarly be deducted from the amount to his credit at\nthe time of his death in the annuity savings fund.\n f. In the case of any benefit wherein the amount of pension will be\ndetermined, in part, by the amount of annuity, such annuity shall be\ncomputed upon the basis of accumulated contributions as if there were no\nloan or no additional contributions. The resulting retirement allowance\nshall then be reduced by the actuarial equivalent of the present value\nof any outstanding loan.\n g. Insurance of loans. Each loan made pursuant to this section shall\nbe insured against the death of the member. Such insurance shall be\nprovided by the comptroller through the police and fire retirement\nsystem upon the following basis:\n 1. Amount of insurance. Each loan made pursuant to this section shall\nbe insurable in its entirety and shall be insured thirty days after the\nmaking thereof.\n 2. Premiums. In March of each year, premiums at the rate established\nby the directive of the comptroller, in effect during such year, shall\nbe charged to the member's annuity savings account. In pro-rating\npremiums, the major part of a month shall be considered as a whole\nmonth. If the member during this period withdraws his contributions,\ndies or retires, the premium to be charged at the time of such\nwithdrawal, death or retirement shall be based on the number of months\nwhich had elapsed since the beginning of the fiscal year.\n 3. Loans heretofore made. Each loan made pursuant to law prior to the\neffective date of this section shall be insured from that date upon the\nterms and conditions set forth in this section, as hereby amended.\nPremiums after such date shall be deducted in accordance with the\nprovisions of this section.\n 4. Funds. The comptroller is authorized to establish such funds as may\nbe necessary to carry out the provisions of this subdivision g.\n 5. Power of comptroller. The comptroller, in his discretion and at the\nend of any fiscal year, may increase or reduce the premium; modify the\nterms and conditions of coverage or discontinue the insurance of loans.\n 6. Continuity of insurance not obligatory. This subdivision shall not\nimpose any obligation whatsoever upon the police and fire retirement\nsystem or any employer to continue to insure loans of members upon the\nterms and conditions herein provided or upon any other terms and\nconditions.\n h. Loans made to certain police officers and firefighters. Each loan\nmade to police officers and firefighters while such persons were members\nof the New York state and local employees' retirement system shall be\nrepaid according to the provisions of subdivision b of this section.\n