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Buy an Additional Block of Shares
from AC 23 Concurrent Session 3
by NCEO
• Only if ESOP is not already 100% owner
• Non-ESOP shareholders must be prepared to sell to the ESOP
• Great potential source of new shares, but not always a viable option
Releveraging
• Redeem shares and obtain new loan for these shares (which will be held in suspense)
• Loan is repaid with regular annual ESOP contributions
• Release of shares is spread over term of the loan
• “Layering” several loans over many years could result in a significant block of shares in the suspense account
• May be a good option if a large number of shares become available in a given year
• Retirement of a participant with a large account balance
• Special distribution/diversification windows
