§ 1431 - Assistance by corporation

CHAPTER 18— EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › SUBCHAPTER III— PLAN TERMINATION INSURANCE

(a) If, upon receipt of an application for financial assistance under section 1426(f) of this title or section 1441(d) of this title, the corporation verifies that the plan is or will be insolvent and unable to pay basic benefits when due, the corporation shall provide the plan financial assistance in an amount sufficient to enable the plan to pay basic benefits under the plan.

(b)(1) Financial assistance shall be provided under such conditions as the corporation determines are equitable and are appropriate to prevent unreasonable loss to the corporation with respect to the plan.

(b)(2) A plan which has received financial assistance shall repay the amount of such assistance to the corporation on reasonable terms consistent with regulations prescribed by the corporation.

(c) Pending determination of the amount described in subsection (a), the corporation may provide financial assistance in such amounts as it considers appropriate in order to avoid undue hardship to plan participants and beneficiaries.

Notes

Editorial Notes

Effective Date

Part effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title.