SECTION 7. AVAILABILITY OF SCP FOR CERTAIN OPERATIONAL FAILURES AND PLAN DOCUMENT FAILURES

.01 In general. (1) Operational Failures . The requirements of this section 7 are satisfied with respect to an Operational Failure if the Plan Sponsor of a Qualified Plan, a 403(b) Plan, a SEP, or a SIMPLE IRA Plan satisfies the requirements of section 7.02, and either section 8 (relating to insignificant Operational Failures), or, in the case of a Qualified Plan or a 403(b) Plan, section 9 (relating to significant Operational Failures).

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(2) Plan Document Failures . The requirements of this section 7 are satisfied with respect to an eligible Plan Document Failure if the Plan Sponsor of a Qualified Plan or a 403(b) Plan satisfies the requirements of section 7.03 and section 9.

.02 Operational Failures. (1) In general . Operational Failures may be corrected under SCP in accordance with the correction principles and rules of general applicability set forth in section 6.

(2) Corrective amendments for Operational Failures . Operational Failures may be corrected under SCP by adoption of a plan amendment that conforms the terms of the plan to the plan’s prior operations, provided the requirements of section 4.05(2) are satisfied.

(3) Plan loan failures . The following plan loan failures may be corrected under SCP: defaulted loans (described in section 6.07(3)(d)); the failure to obtain spousal consent (described in section 6.07(4)(a)); and the failure to abide by a limitation on the number of plan loans permitted per participant as set forth under the terms of the plan (described in section 6.07(5)).

.03 Plan Document Fail- ures.

An eligible Plan Document Failure, as described in section 4.01(1)(b), may be corrected under SCP provided that the requirements described in section 4.05(2)(c)(i) (Favorable Letter requirement) and 4.05(2)(c)(ii) (treating Plan Document Failures under SCP as significant failures) are satisfied.