Brian, yes those are typical legal and other provisions relating to 401k "loans"(actually you're using your own money). Typically you pay prime plus 1%(current prime is 3.25%)for the privilege. As for the "pay myself" comment, that's a bit of an oversimplification. The growth on the amount taken out(hopefully more than 4.25%)is lost, the amounts paid back are with after-tax dollars, yet will be taxed again when finally withdrawn.
Possibly you took these and other factors into account, but I usually advise clients or others to dip into their 401k only if no other option(e.g. borrowing against home equity)which may be less expensive in the long run is available.
