WITH THE TRUSTEE'S APPROVAL, MAY AUTHORIZE THE TRUSTEE TO ACT
ON ANY ADMINISTRATIVE MATTER OR CLASS OF MATTERS WITH RESPECT TO WHICH DIRECTION
OR INSTRUCTION TO THE TRUSTEE BY THE ADMINISTRATOR IS CALLED FOR HEREUNDER
WITHOUT SPECIFIC DIRECTION OR OTHER INSTRUCTION FROM THE ADMINISTRATOR;
(U)
TO SELL, PURCHASE AND ACQUIRE PUT OR CALL OPTIONS IF THE OPTIONS
ARE TRADED ON AND PURCHASED THROUGH A NATIONAL SECURITIES EXCHANGE REGISTERED
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, OR, IF THE OPTIONS ARE
NOT TRADED ON A NATIONAL SECURITIES EXCHANGE, ARE GUARANTEED BY A MEMBER FIRM OF
THE NEW YORK STOCK EXCHANGE REGARDLESS OF WHETHER SUCH OPTIONS ARE COVERED;
(V)
TO APPOINT A NONFIDUCIARY AGENT OR AGENTS TO ASSIST THE TRUSTEE IN
CARRYING OUT ANY INVESTMENT INSTRUCTIONS OF PARTICIPANTS AND OF ANY INVESTMENT
MANAGER OR FIDUCIARY, AND TO COMPENSATE SUCH AGENT(S) FROM THE ASSETS OF THE
PLAN, TO THE EXTENT NOT PAID BY TEXAS REGIONAL BANCSHARES, INC.;
(W)
TO DO ALL SUCH ACTS AND EXERCISE ALL SUCH RIGHTS AND PRIVILEGES,
ALTHOUGH NOT SPECIFICALLY MENTIONED HEREIN, AS THE TRUSTEE MAY DEEM NECESSARY TO
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CARRY OUT THE PURPOSES OF THE PLAN.
9.4
LOANS TO PARTICIPANTS
(A)
THE TRUSTEE MAY, IN THE TRUSTEE'S DISCRETION, MAKE LOANS TO
PARTICIPANTS AND BENEFICIARIES UNDER THE FOLLOWING CIRCUMSTANCES: (1) LOANS
SHALL BE MADE AVAILABLE TO ALL PARTICIPANTS AND BENEFICIARIES ON A REASONABLY
EQUIVALENT BASIS; (2) LOANS SHALL NOT BE MADE AVAILABLE TO HIGHLY COMPENSATED
EMPLOYEES IN AN AMOUNT GREATER THAN THE AMOUNT MADE AVAILABLE TO OTHER
PARTICIPANTS AND BENEFICIARIES; (3) LOANS SHALL BEAR A REASONABLE RATE OF
INTEREST; (4) LOANS SHALL BE ADEQUATELY SECURED; AND (5) LOANS SHALL PROVIDE FOR
PERIODIC REPAYMENT OVER A REASONABLE PERIOD OF TIME.
(B)
LOANS MADE PURSUANT TO THIS SECTION (WHEN ADDED TO THE OUTSTANDING
BALANCE OF ALL OTHER LOANS MADE BY THE PLAN TO THE PARTICIPANT) SHALL, IN
ACCORDANCE WITH A UNIFORM AND NONDISCRIMINATORY POLICY ESTABLISHED BY THE
ADMINISTRATOR, BE LIMITED TO THE LESSER OF:
(1)
$50,000 REDUCED BY THE EXCESS (IF ANY) OF THE HIGHEST OUTSTANDING
BALANCE OF LOANS FROM THE PLAN TO THE PARTICIPANT DURING THE ONE YEAR PERIOD
ENDING ON THE DAY BEFORE THE DATE ON WHICH SUCH LOAN IS MADE, OVER THE
OUTSTANDING BALANCE OF LOANS FROM THE PLAN TO THE PARTICIPANT ON THE DATE ON
WHICH SUCH LOAN WAS MADE, OR
(2)
ONE-HALF (1⁄2) OF THE PRESENT VALUE OF THE NON-FORFEITABLE ACCRUED
BENEFIT OF THE PARTICIPANT UNDER THE PLAN.
For purposes of this limit, all plans of the Employer shall be considered one
plan.
(C)
LOANS SHALL PROVIDE FOR LEVEL AMORTIZATION WITH PAYMENTS TO BE
MADE NOT LESS FREQUENTLY THAN QUARTERLY OVER A PERIOD NOT TO EXCEED FIVE
(5) YEARS FROM THE DATE OF THE LOAN.
HOWEVER, LOANS USED TO ACQUIRE ANY
DWELLING UNIT WHICH, WITHIN A REASONABLE TIME, IS TO BE USED (DETERMINED AT THE
TIME THE LOAN IS MADE) AS A "PRINCIPAL RESIDENCE" OF THE PARTICIPANT SHALL
PROVIDE FOR PERIODIC REPAYMENT OVER A REASONABLE PERIOD OF TIME THAT MAY EXCEED
FIVE (5) YEARS.