[Federal Register Volume 59, Number 210 (Tuesday, November 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27055]
[[Page Unknown]]
[Federal Register: November 1, 1994]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 94-76; Exemption Application No. D-
9676, et al.]
Grant of Individual Exemptions; L.H. Chapman Investment Company
Pension Plan, et al.
AGENCY: Pension and Welfare Benefits Administration, Labor.
ACTION: Grant of individual exemptions.
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SUMMARY: This document contains exemptions issued by the Department of
Labor (the Department) from certain of the prohibited transaction
restrictions of the Employee Retirement Income Security Act of 1974
(the Act) and/or the Internal Revenue Code of 1986 (the Code).
Notices were published in the Federal Register of the pendency
before the Department of proposals to grant such exemptions. The
notices set forth a summary of facts and representations contained in
each application for exemption and referred interested persons to the
respective applications for a complete statement of the facts and
representations. The applications have been available for public
inspection at the Department in Washington, DC. The notices also
invited interested persons to submit comments on the requested
exemptions to the Department. In addition the notices stated that any
interested person might submit a written request that a public hearing
be held (where appropriate). The applicants have represented that they
have complied with the requirements of the notification to interested
persons. No public comments and no requests for a hearing, unless
otherwise stated, were received by the Department.
The notices of proposed exemption were issued and the exemptions
are being granted solely by the Department because, effective December
31, 1978, section 102 of Reorganization Plan No. 4 of 1978 (43 FR
47713, October 17, 1978) transferred the authority of the Secretary of
the Treasury to issue exemptions of the type proposed to the Secretary
of Labor.
Statutory Findings
In accordance with section 408(a) of the Act and/or section
4975(c)(2) of the Code and the procedures set forth in 29 CFR part
2570, subpart B (55 FR 32836, 32847, August 10, 1990) and based upon
the entire record, the Department makes the following findings:
(a) The exemptions are administratively feasible;
(b) They are in the interests of the plans and their participants
and beneficiaries; and
(c) They are protective of the rights of the participants and
beneficiaries of the plans.
L.H. Chapman Investment Company Pension Plan (the Plan); Located in
Columbus, Ohio
[Prohibited Transaction Exemption 94-76; Application No. D-9676]
Exemption
The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the
Act and the sanctions resulting from the application of section 4975 of
the Code, by reason of section 4975(c)(1) (A) through (E) of the Code,
shall not apply to the proposed purchase (the Purchase) by Margaret
Chapman, Loyal Chapman, and Lou Chapman Koester's individually-directed
accounts (the Accounts) in the Plan from Indianapolis Life Insurance
Company and Columbus Mutual Life Insurance Company of certain undivided
interests (the Interests) in certain promissory notes (the Notes) of
which the obligor is L.H. Chapman Investment Company, a party in
interest with respect to the Plan.
This exemption is conditioned on the following requirements: (1)
The terms of the Purchase are at least as favorable to the Accounts as
those obtainable in an arm's length transaction with an unrelated
party; (2) the Purchase price is equal to the Accounts' pro rata share
of the aggregate outstanding principal balances of the Notes on the day
of the Purchase; (3) the Purchase occurs only if such outstanding
principal balances are not greater than the fair market values of the
Interests on the day of the Purchase as determined by an independent,
qualified appraiser; (4) the Purchase does not involve more than
twenty-five percent of the assets in each of the Accounts; and (5) the
Accounts are not required to pay any fees, commissions or expenses in
connection with the Purchase.
For a more complete statement of the facts and representations
supporting the Department's decision to grant this exemption, refer to
the notice of proposed exemption published on September 19, 1994 at 59
FR 47951.
FOR FURTHER INFORMATION CONTACT: Kathryn Parr of the Department,
telephone (202) 219-8971. (This is not a toll-free number.)
BMJ Financial Corp. Deferred Savings Plan (the Plan); Located in
Bordentown, New Jersey
[Prohibited Transaction Exemption 94-77; Exemption Application No. D-
9732]
Exemption
The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the
Act and the sanctions resulting from the application of section 4975 of
the Code, by reason of section 4975(c)(1)(A) through (E) of the Code,
shall not apply to (1) the past acquisition of certain stock rights
(the Rights) by the Plan pursuant to a stock rights offering (the
Offering) by BMJ Financial Corporation (BMJ) to shareholders of record
as of February 9, 1993 of BMJ common stock (the Common Stock); (2) the
holding of the Rights by the Plan during the subscription period of the
Offering; and (3) the past exercise of the Rights by the Plan; provided
that the following conditions are satisfied:
(1) The Plan's acquisition and holding of the Rights occurred in
connection with the Offering made available to all shareholders of the
Common Stock;
(2) The Plan's acquisition and holding of the Rights resulted from
an independent act of BMJ as a corporate entity, and all holders of
Common Stock, including the Plan, were treated in the same manner with
respect to the Offering; and
(3) The authority for all decisions regarding the acquisition,
holding and control of the Rights by the Plan was exercised by an
independent fiduciary which made determinations as to whether and how
the Plan should exercise or sell the Rights acquired through the
Offering.
EFFECTIVE DATE: This exemption is effective as of February 9, 1993, the
Record Date of the Offering.
For a more complete statement of the facts and representations
supporting the Department's decision to grant this exemption, refer to
the notice of proposed exemption published on September 2, 1994 at 59
FR 45721.
FOR FURTHER INFORMATION CONTACT: Ronald Willett of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
General Information
The attention of interested persons is directed to the following:
(1) The fact that a transaction is the subject of an exemption
under section 408(a) of the Act and/or section 4975(c)(2) of the Code
does not relieve a fiduciary or other party in interest or disqualified
person from certain other provisions to which the exemptions does not
apply and the general fiduciary responsibility provisions of section
404 of the Act, which among other things require a fiduciary to
discharge his duties respecting the plan solely in the interest of the
participants and beneficiaries of the plan and in a prudent fashion in
accordance with section 404(a)(1)(B) of the Act; nor does it affect the
requirement of section 401(a) of the Code that the plan must operate
for the exclusive benefit of the employees of the employer maintaining
the plan and their beneficiaries;
(2) These exemptions are supplemental to and not in derogation of,
any other provisions of the Act and/or the Code, including statutory or
administrative exemptions and transactional rules. Furthermore, the
fact that a transaction is subject to an administrative or statutory
exemption is not dispositive of whether the transaction is in fact a
prohibited transaction; and
(3) The availability of these exemptions is subject to the express
condition that the material facts and representations contained in each
application are true and complete and accurately describe all material
terms of the transaction which is the subject of the exemption. In the
case of continuing exemption transactions, if any of the material facts
or representations described in the application change after the
exemption is granted, the exemption will cease to apply as of the date
of such change. In the event of any such change, application for a new
exemption may be made to the Department.
Signed at Washington, DC, this 27th day of October, 1994.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 94-27055 Filed 10-31-94; 8:45 am]
BILLING CODE 4510-29-P
