N.J. Admin. Code § 17:1-1.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:1-1.9 - Bankruptcy; subsequent loans

(a) Any member of a State-administered retirement system, which permits loans to its members, who has payroll deductions for an outstanding loan balance in suspense as a result of bankruptcy proceedings prior to October 31, 2008, will not be permitted to obtain another loan from that retirement system during the pendency of the suspended original loan.

(b) A member or retired member's outstanding loan balance is not discharged by bankruptcy.

(c) A review of all existing suspended loans will be conducted by the Division and those members with a suspended loan balance will have their loan recalculated with accrued interest. For those members whose loans were suspended prior to October 31, 2008, pursuant to a bankruptcy filing, a written notice of the continued pendency of the bankruptcy action shall be submitted to the Division. The loan deductions will resume unless the member whose loan was suspended prior to October 31, 2008 informs the Division of the continued pendency of the bankruptcy action by providing an official document from the courts. Until the member's loan deductions are reinstated, no additional pension loans are permitted.

(d) No loans will be suspended due to bankruptcy.

N.J. Admin. Code § 17:1-1.9

Amended by R.2009 d.25, effective 1/5/2009.
See: 40 N.J.R. 4928(a), 41 N.J.R. 277(a).
In (b), deleted the last two sentences.
Amended by R.2011 d.257, effective 10/17/2011.
See: 43 N.J.R. 1509(a), 43 N.J.R. 2672(a).
Rewrote (a) and (c); and added (d).