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garnishment, sequestration, execution, injunction or any other decree, order, process or proceeding in any court for the payment of any debt of the beneficiary and the benefits shall be held and distributed for the purpose of this chapter, and for no other purpose whatsoever. 2.62.710 Loans to Employees A. In accordance with and subject to any terms, conditions and procedures set forth in guidelines adopted by the board of trustees, or as amended by the board from time to time, loans shall be made available to all employees for whom an investment account has been established under Section 2.62.630 on a reasonably equivalent basis. Any such loan shall be treated as an investment of the employee's investment account, and all payments of principal and interest made by the employee shall be credited only to the employee's investment account. B. Loans must be adequately secured and bear a reasonable rate of interest. C. No loan shall exceed the lesser of (1) fifty thousand dollars ($50,000), reduced by the excess, if any, of the highest outstanding balance of any loans to the employee under this Section 2.62.710 and under any other retirement system maintained by the city during the one year period ending on the day before such loan is made, over the outstanding balance of such loans on the day such loan is made, or (2) one-half of the employee's investment account. The term and payment schedule of each loan shall satisfy the repayment period and level amortization requirements of the Internal Revenue Code, Section 72(p), and the regulations thereunder. Each loan shall be evidenced by a legally enforceable agreement which demonstrates compliance with the requirements of this Section 2.62.710.C. D. In the event of default, the loan will be foreclosed, and the outstanding balance thereof may be offset against any portion of the employee's investment account used as security, upon the occurrence of a distributable event under Section 2.62.407. 2.62.720 Falsifying Records Any person who shall knowingly or willfully makes any false statement for the purpose of securing benefits under the terms of this chapter, or shall falsify, cause or permit to be falsified, any record or records of such retirement plan in any attempt to defraud, shall be guilty of a misdemeanor and shall be punishable therefor under the laws of the state, and all the person's rights, interests and privileges under and by virtue of this chapter shall be forfeited.