An emergency withdrawal shall only be approved by the board to the extent that:

(a) it is reasonably needed to satisfy the emergency; and

(b) severe financial hardship cannot be relieved by:

(1) reimbursement or compensation from sources other than an emergency withdrawal under the plan;

(2) cessation of deferrals under the plan; and

(3) liquidation of the participant’s assets, to the extent that the liquidation of assets would not in itself cause severe financial hardship.