Exhibit D Loan Policy.docx

The Office of the Comptroller of the Currency and Office of Thrift Supervision 401(k) Savings Plans Loan Policy

DOCUMENT CHANGE CONTROL

Version 1.0[footnoteRef:1] [1: There were previous versions, however version control added to the document in June 2020, therefore numbering begins at 1.0 ]

Background and Purpose

The Office of the Comptroller of the Currency (OCC) administers two 401(k) savings plans as described below.

· The OCC 401(k) Plan is a savings plan for legacy OCC and new OCC hires.

· The Office of Thrift Supervision (OTS) 401(k) Plan is a savings plan for legacy OTS employees, including those at the OCC, Federal Deposit Insurance Corporation (FDIC) and Consumer Finance Protection Bureau (CFPB). In addition, Office of Financial Research (OFR) employees participate in the Plan.

Jointly, the OTS 401(k) Plan and the OCC 401(k) Plan are referred to as “the Plans.”

The Plans permit loans to be made to plan participants. However, before any loan is made, the Plans require that a written loan program be established which sets forth the rules and guidelines for making Participant loans. This document shall serve as the required written loan program[footnoteRef:2]. In addition, the plan administrator may use this document to serve as, or supplement, any required notice of the loan program to Participants. All references to Participants in this loan program shall include only Participants in the active employ of the employer. [2: However, the plans may from time to time adopt temporary forbearance measures in response to public emergencies or disasters, as authorized by statute or regulation.]

The Plans’ Oversight Committee may revise this loan policy from time to time. Notice of any changes to this policy will be provided by the plan administrator.

The OCC Executive Committee (EC) and Oversight Committee do NOT guarantee the performance of investment funds. Past performance of the funds does not guarantee future returns.

Eligibility Requirements

1. Two outstanding loans are allowed per Participant.[footnoteRef:3] [3: Participants with more than two outstanding loans as of 1/1/17 are grandfathered. Loan payment terms are unchanged and no early pay-offs are required.

2. Participants with a vested account balance of at least $2,000 (need to maintain at least $1,000 account balance after minimum loan; 50% rule) are eligible to apply for a loan. Beneficiaries are not eligible.

3. Terminated Participants are not permitted to take out new loans. However, terminated Participants with outstanding loans at the time of termination may continue to pay loans in accordance with the original loan terms.

4. Participants with deemed loans are not eligible to take out new loans.

5. Participants may borrow from their vested plan account balance.

6. A person who holds a valid Power of Attorney may act on behalf of a Participant in requesting a loan that qualifies under the criteria stipulated in this program.

Application Process

1. A non-refundable application fee of $75 per loan is required. The fee is also applicable to a refinanced loan with additional money. To apply for a loan and for additional details regarding the process, contact Charles Schwab at 1-800-724-7526. Participants can find information and model a loan on the Schwab Retirement Plan Center at workplace.schwab.com.

2. Upon approval of the loan application by the plan administrator, a check and loan confirmation paperwork will be mailed separately to a participant’s home address, generally within 1-2 business days of the loan origination.

Maximum and Minimum Loan Amounts

The maximum loan amounts referenced in this section apply to the loan programs under the OCC and OTS 401 (k) Plans. For this purpose, the Federal Thrift Savings Plan Loan Program is not treated as a loan program sponsored by either of the Plans.

1. The minimum loan amount is $1,000. Participants must have an account balance of at least $2,000 to qualify for the minimum loan amount.

2. Under Internal Revenue Service regulations, the maximum loan amount, is limited to the lesser of:

a. $50,000, reduced by the greatest value of all loans outstanding in the one-year period that immediately precedes the calculation (i.e., over the previous 12 months) and the balance of all outstanding loans from the plan on the date the new loan was made, or

b. ½ of the Participant’s vested accrued balance.

Interest Rate

Loans shall be charged a reasonable rate of interest, following the procedure below.[footnoteRef:4] The interest paid is credited to the Participant’s account and is not deductible for federal income tax purposes. Participants requiring further information should consult the IRS or a qualified tax advisor. [4: Certain regulations may limit interest rates and fees charged, such as those that affect active duty military personnel or veterans. In that case the Participant shall be charged the appropriate interest rate and fees to comply with such regulations. (reference the OCC policy on military service) ]

1. The interest rate on participant loans will be equal to the prime rate, as shown in the Wall Street Journal, plus 1 percent. The rate will not change during the loan repayment period.

2. The methodology on setting the interest rate on participant loans will be reviewed annually.

3. The methodology on setting the interest rate will be published on the OCC intranet.

Collateral Required

1. Each loan shall be secured by the assignment of up to 50 percent of the borrower’s vested plan account. Participants will not be required or permitted to put up additional property or other security (collateral) in order to obtain a loan.

Repayment Provisions

1. Loan repayments for active employees will be started by payroll deduction during the second month following the month in which the loan is originated (i.e., payments for loans originated in January will be started in March). Notwithstanding this policy, participants are personally responsible for ensuring that loans are repaid in accordance with the terms of the loan agreement. Participants should notify their employing agency if payments do not begin in a timely manner and may be expected to make payments directly to the Plan (via check or money order to Schwab) in certain circumstances.

2. Loan repayments will include both interest and a portion of the outstanding principal. Loan repayments will be invested according to the Participant’s investment account allocation.

3. Loans may be paid in full at any time without penalty.

4. Repayment duration will not exceed five (5) years for general purpose loans. Loans for acquisition of any dwelling unit which, within a reasonable time, is to be used as a principal residence of the Participant shall allow for a repayment of up to twenty (20) years.

5. Delinquent loans are those that are 30 days or more past due, but still within the cure period. The loan cure period ends on the last day of the quarter following the quarter in which the first missed payment occurred. Participants can restore delinquent loans to good standing by making up missed payments before the end of the cure period. If missing payments are not received by the end of the cure period, the loan will be deemed a distribution and the participant will be responsible for any taxes and penalties associated with the distribution.

6. Loan payments may be suspended for a period not longer than one year during a leave of absence, either without pay or at a rate of pay (after applicable withholdings) that is less than the loan payment. However, the loan (including interest that accrues during the leave of absence) must be repaid by the latest permissible term of the loan. If this requires the loan to be re-amortized, the new payments may not be less than the amount required under the original terms of the loan. It is the responsibility of the individual participant to notify the plan sponsor of the leave of absence and request the suspension of loan payments.

7. Loan payments may be suspended due to a participant performing service in the uniformed services (as defined in Chapter 43 of title 38 United States Code). In such cases, the latest permissible term of the loan may be extended by the period of military service, and the suspension of payments will not cause the loan to be in default. For example, if the loan were due in five years, the five-year period would be recalculated by extending the period by the length of the leave of absence.

Refinance/Re-amortize

1. Refinance: Refinancing of loans will be permitted. Refinancing will not be available to correct a defaulted loan that has exceeded its cure period. All refinancing will comply with the provisions of Internal Revenue Code §72(p) and corresponding Treasury Regulations. A Participant must execute new documentation for a refinanced loan.

2. Re-amortize: Re-amortizing of loans will be permitted in limited circumstances, typically occurring for qualified Leave of Absence (LOA), military LOA, payroll frequency changes or administrative errors.

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