Plan A is merging into Plan B.Plan A allows for and has outstanding loans, Plan B does not allow for loans.
Since Plan B does not have a loan policy, I would say that they should adopt a loan policy with the same provisions as Plan A that does not allow for new loans. I think it would be a mistake to not have a loan policy for Plan B and try to rely just on the loan agreement. Does this make sense?

It makes sense to me.

Plan B will need to have provisions of a loan policy, all except the rules applying to taking new loans. For example, will the loan be considered a directed investment, what are the default rules, etc.