[Federal Register Volume 64, Number 30 (Tuesday, February 16, 1999)]
[Notices]
[Pages 7672-7676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3564]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Application No. D-10693, et al.]
Proposed Exemptions; Standard Bank Employees Profit Sharing Plan
(the Plan)
AGENCY: Pension and Welfare Benefits Administration, Labor.
ACTION: Notice of proposed exemptions.
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SUMMARY: This document contains notices of pendency before the
Department of Labor (the Department) of proposed exemptions 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).
Written Comments and Hearing Requests
Unless otherwise stated in the Notice of Proposed Exemption, all
interested persons are invited to submit written comments, and with
respect to exemptions involving the fiduciary prohibitions of section
406(b) of the Act, requests for hearing within 45 days from the date of
publication of this Federal Register Notice. Comments and requests for
a hearing should state: (1) The name, address, and telephone number of
the person making the comment or request, and (2) the nature of the
person's interest in the exemption and the manner in which the person
would be adversely affected by the exemption. A request for a hearing
must also state the issues to be addressed and include a general
description of the evidence to be presented at the hearing.
ADDRESSES: All written comments and request for a hearing (at least
three copies) should be sent to the Pension and Welfare Benefits
Administration, Office of Exemption Determinations, Room N-5649, U.S.
Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C.
20210. Attention: Application No. stated in each Notice of Proposed
Exemption. The applications for exemption and the comments received
will be available for public inspection in the Public Documents Room of
Pension and Welfare Benefits Administration, U.S. Department of Labor,
Room N-5507, 200 Constitution Avenue, N.W., Washington, D.C. 20210.
Notice to Interested Persons
Notice of the proposed exemptions will be provided to all
interested persons in the manner agreed upon by the applicant and the
Department within 15 days of the date of publication in the Federal
Register. Such notice shall include a copy of the notice of proposed
exemption as published in the Federal Register and shall inform
interested persons of their right to comment and to request a hearing
(where appropriate).
SUPPLEMENTARY INFORMATION: The proposed exemptions were requested in
applications filed pursuant to section 408(a) of the Act and/or section
4975(c)(2) of the Code, and in accordance with procedures set forth in
29 CFR Part 2570, Subpart B (55 FR 32836, 32847, August 10, 1990).
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 requested
to the Secretary of Labor. Therefore, these notices of proposed
exemption are issued solely by the Department.
The applications contain representations with regard to the
proposed exemptions which are summarized below. Interested persons are
referred to the applications on file with the Department for a complete
statement of the facts and representations.
Standard Bank Employees Profit Sharing Plan (the Plan), Located in
Hickory Hills, Illinois
[Application No. D-10693]
Proposed Exemption
The Department is considering granting an exemption under the
authority of section 408(a) of the Act and section 4975(c)(2) of the
Code and in accordance with the procedures set forth in 29 CFR Part
2570, Subpart B (55 FR 32836, 32847, August 10, 1990.)
Part I. Purchases of Residential Mortgage Notes
If the exemption is granted, 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, as of October
1, 1998, to the purchases by the Plan of certain residential mortgage
notes (the Notes) from Standard Bank and Trust Company (the Employer),
a party in interest with respect to the Plan; provided that the
following conditions are satisfied:
(1) An independent qualified fiduciary will decide which Notes will
be purchased for the Plan;
(2) Only first mortgage Notes will be purchased by the Plan;
(3) The Notes which will be purchased by the Plan will have: (a) a
borrower payment history with the Employer of at least three months;
(b) a maximum 15 year maturity; and (c) the loan to value ratio of the
collateral will be at least 150% of the principal amount of the Note;
(4) If the mortgage loan is an original acquisition mortgage loan,
the Note will not exceed two-thirds of the lower of the purchase price
or of the appraised value of the collateral mortgaged by the borrower
to the Employer to secure the Note;
(5) If the mortgage loan is a refinancing of the original
acquisition mortgage loan, the Note will not exceed two-thirds of the
appraised value of the collateral mortgaged by the borrower to the
Employer to secure the Note;
(6) No more than twenty-five percent (25%) of the value of the
Plan's total assets will be invested in the Notes;
(7) No more than ten percent (10%) of the value of the Plan's total
assets will be invested in any one Note or Notes to any one borrower;
(8) The fees received by the independent fiduciary for serving in
that capacity with respect to the Plan for the transactions described
herein, combined with any other fees derived from the Employer or
related parties,
[[Page 7673]]
will not exceed one percent (1%) of his gross annual income for each
fiscal year that he continues to serve in the independent fiduciary
capacity with respect to the transactions described herein; and
(9) The conditions of Prohibited Transaction Exemption (PTE) 93-71
(58 FR 51109, September 30, 1993) have been met. PTE 93-71, which
expired September 30, 1998, provided prospective relief for the
purchases by the Plan of certain Notes from the Employer.1
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\1\ The applicant represents that, as mandated by PTE 93-71, the
Employer has filed Form 5330 (Return of Initial Excise Taxes for
Pension and Profit Sharing Plans) and paid the applicable excise
taxes for certain past purchases by the Plan of the Notes from the
Employer which occurred prior to the effective date of PTE 93-71.
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Part II. Repurchases of Residential Mortgage Notes
If the exemption is granted, 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
repurchases of the Notes (the Repurchases) by the Employer: (a) in the
event of default; (b) if the limitations set forth in Part I (6) and/or
(7) are exceeded; and (c) at other times as determined by the
independent fiduciary,2 provided that the Repurchases will
be at a price which is equal to the greater of the outstanding
principal balance of the Note plus accrued interest through the date of
repurchase, or the current fair market value of the Note as determined
by the independent fiduciary.
\2\ The Department notes that if a violation of any of the terms
and conditions of Part I occurs, the exemptive relief provided by
Part I for purchases of the Notes by the Plan will no longer be
available. However, the Department further notes that the loss of
exemption under Part I will not affect the use of Part II to dispose
of the Notes previously acquired by the Plan pursuant to the
exemption.
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EFFECTIVE DATE: The proposed exemption, if granted, will be effective
as of October 1, 1998.
Summary of Facts and Representations
1. The Plan is a profit sharing plan, which, as of December 31,
1997, had approximately 202 participants and beneficiaries. As of
September 22, 1998, the Plan had $4,233,826 in total assets. The Plan
trustee and administrator is Standard Bank and Trust Company located at
2400 West 95th Street, Evergreen Park, Illinois. The Plan is audited on
an annual basis by Deloitte & Touche, a certified public accounting
firm. The Employer is a licensed Illinois State bank, and is a
recognized mortgage lender. The Employer is a member of the Federal
Deposit Insurance Corporation (FDIC), and is examined annually by the
Illinois Commissioner of Banks and every eighteen months by the FDIC.
2. Among its banking activities, the Employer serves as a mortgage
lender wherein the Employer makes loans to borrowers to purchase a
residential dwelling unit (RDU) or to refinance mortgage loans on the
RDU. The borrower signs or guarantees a mortgage note payable to the
Employer secured with a mortgage or a trust deed and, if appropriate,
an assignment of rents recorded against the RDU. In the case of a
purchase or refinancing, an appraisal is obtained from a certified
independent appraiser establishing the market value of the RDU being
pledged as collateral for the mortgage note. A title insurance policy
insuring the first and paramount lien of the mortgage on the RDU is
obtained from a licensed title insurance company, and hazard insurance
is also obtained naming the Employer as a mortgagee. In compiling its
mortgage portfolio, the Employer reviews the following criteria:
(a) The credit record of the borrower showing that the borrower is
a good credit risk and has a record of paying bills in a timely manner;
(b) A verification of the borrower's employment or source of
income, indicating that the gross income is adequate to service the
mortgage debt;
(c) The ratio of mortgage payments to borrower's income; and
(d) An appraisal by a certified independent appraiser establishing
the market value of the RDU to be pledged as collateral for the
mortgage note.
3. The Employer was granted an individual exemption by the
Department in 1993 (PTE 93-71), for prospective purchases of certain
residential mortgage notes (i.e., the Notes) by the Plan from the
Employer, a party in interest with respect to the Plan. PTE 93-71
provided temporary relief, and remained effective for a five year
period beginning on September 30, 1993, which was the date the final
grant was published in the Federal Register. Thus, PTE 93-71 expired
September 30, 1998. The applicant requests herein that this proposed
exemption, if granted, be effective as of October 1, 1998, for the sake
of continuity, although no new purchases of the Notes by the Plan have
occurred since September 30, 1998. This proposed exemption contains
conditions that are substantially similar to the conditions contained
in PTE 93-71.
4. The Employer proposes to prospectively continue selling the
Notes originated by the Employer to the Plan.3
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\3\ The Department notes that the decisions to acquire and hold
the Notes are governed by the fiduciary responsibility requirements
of Part 4, Subtitle B, Title I of the Act. In this regard, the
Department is not proposing relief for any violations of Part 4
which may arise as a result of the acquisition and holding of the
Notes by the Plan.
Furthermore, this exemption, if granted, does not apply to any
prohibited transactions which may arise as a result of the Employer
receiving origination fees from the borrowers in connection with the
Notes which in the future will be purchased by the Plan.
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William J. Duffner (Mr. Duffner), CPA, of Evergreen Park, Illinois,
will serve as an independent fiduciary for the Plan with respect to the
proposed transactions and will have investment discretion regarding any
new purchases of the Notes by the Plan. In this regard, Mr. Duffner
also served as the Plan's independent Fiduciary under PTE 93-71.
Mr. Duffner represents that he is self-employed as a Certified
Public Accountant (CPA) as well as a real estate and financial
consultant. Mr. Duffner and the accounting firm of Duffner & Company,
P.C., provide a wide range of services including, but not limited to,
investment analysis for pension and profit sharing plans, Keogh plans
and individual retirement accounts (IRAs). Mr. Duffner and his firm
also provide assistance to such plans and other investors in
residential mortgage and land title matters. Mr. Duffner represents
that he is unrelated to the Plan and the Employer 4 and is
experienced with mortgage investments and related matters. Mr. Duffner
states that by virtue of his education and experience he is qualified
to serve as an independent fiduciary for the Plan for the transactions
described herein.
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\4\ Mr. Duffner does acknowledge that he personally maintains
deposit and loan accounts with the Employer. However, such accounts
represent a de minimus amount of the total accounts maintained by
the Employer.
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Mr. Duffner has been advised by legal counsel as to the duties and
responsibilities of an ERISA fiduciary and assumes those
responsibilities for the Plan in regard to the transactions described
herein. Mr. Duffner also states that the fees received by him for
serving as the Plan's independent fiduciary, combined with any other
fees derived from the Employer or related parties, will not exceed one
percent (1%) of his annual gross income from all sources for each
fiscal year that he serves as independent fiduciary.
5. As the independent fiduciary, Mr. Duffner will verify
information, review documents and make computations as
[[Page 7674]]
necessary for each proposed sale of a Note by the Employer to the Plan.
The Notes will represent original acquisition mortgage loans or
mortgage loan refinancings. The Notes will be first mortgage Notes and
will be seasoned for at least three months. The Notes to be offered to
the Plan will be selected by the Employer. However, Mr. Duffner will
have discretion with respect to whether a purchase of the Notes will be
made by the Plan. Prior to any prospective purchase by the Plan, Mr.
Duffner will review alternative Plan investments. Mr. Duffner will
determine whether the purchase of a specific Note would be in the best
interest of the Plan as an investment for the Plan's portfolio. In this
regard, Mr. Duffner will review Employer's credit and security files
maintained on the specific mortgage loan evidenced by the Note and any
other relevant documents to ascertain:
(a) The borrower's employment or source of income by reference to
the borrower's financial statement, loan application and tax
information;
(b) The ratio of mortgage payments to the borrower's income;
(c) The credit worthiness and payment history of the borrower by
reference to credit, employment and financial information;
(d) That the borrower is not an employee of the Employer and is
independent of the Plan and the Employer;
(e) Any required guaranty or assignment of rents;
(f)(1) If the mortgage loan is an original acquisition mortgage
loan, that the Note does not exceed two-thirds of the lower of the
purchase price or the appraised value of the RDU mortgaged by the
borrower to the Employer to secure the Note; or
(2) If the mortgage loan is a refinancing of the original
acquisition mortgage loan, that the Note does not exceed two-thirds of
the appraised value of the RDU mortgaged by the borrower to the
Employer to secure the Note;
(g) That the Note has been seasoned for at least three months and
is secured by a first mortgage on a single-family RDU and specifies a
maximum fifteen (15) year maturity with a fixed interest rate per annum
on the principal balance;
(h) That a title insurance policy has been issued to the Employer
insuring the mortgage on the RDU as a first and paramount lien and
designating the Employer, its successors and assigns as the named
insured;
(i) That a hazard insurance policy and flood insurance policy, if
applicable, have been issued insuring the Employer and its successors
and assigns as mortgagee of the RDU in an amount not less than the
principal amount of the Note; and
(j) That the Employer, as servicer of the Notes, will charge the
Plan only for its direct costs in connection with such services, as
permitted by section 408(b)(2) of the Act.
Mr. Duffner can also require the Employer to repurchase any Notes
from the Plan to meet liquidity needs of the Plan. Such repurchases
will be for the greater of the outstanding principal balance of the
Note plus accrued interest through the date of repurchase, or the
current fair market value of the Note. The fair market value will be
determined based on computations described below.
6. On the date of any sale, Mr. Duffner will also verify that the
sale price of the Note to the Plan is equal to the current fair market
value of the Note. In this regard, Mr. Duffner will rely on the
following method in determining the fair market value of the Note:
(a) The average yield of comparable RDU mortgage loans will be
determined based upon the interest rates offered by direct federally
insured lenders in the Employer's market area. Such interest rate
information will be obtained from independent published sources or the
Employer's in-house survey of mortgage loan interest rates offered by
other direct federally insured lenders in the Employer's market area;
(b) The fair market value of the Note will then be determined by
adjusting the principal amount of the Note to a sum which will result
in a yield equal to the average yield computed by reference to the
published sources or the Employer's in-house survey referred to in (a)
above. The current fair market value of the Note may result in a sale
at a premium or a discount from the outstanding principal balance on
the Note. However, differences between average market yield and the
yield on the Note of less than \1/4\% will be considered a de minimis
variance and no adjustment will be made for such variance; and
(c) Once the fair market value of the Note is determined, that
amount will be increased to reflect accrued interest due the Employer
from the borrower through the date of the sale of the Note to the Plan,
to arrive at the sale price of the Note.5
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\5\ When determining the purchase price to the Plan of a Note
originated by the Employer, the independent fiduciary will consider
prepaid interest in the form of origination fees or points charged
to the borrower by the Employer and retained by the Employer.
Origination fees or points will be considered in the comparison of
the nominal yield of the Note to the average yield in the Employer's
market area for comparable residential dwelling unit mortgage loans
offered by other federally insured lenders. The average yield
figures from other federally insured lenders will include prepaid
interest in the form of origination fees or points. By making this
comparison, any prepaid interest in the form of origination fees or
points retained by the Employer will be considered in the
computation of the purchase price of the Note to the Plan when the
purchase price of the Note is adjusted to reflect an average market
yield.
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The Plan will then pay the Employer the sales price in cash. Any
Note being evaluated by Mr. Duffner would have been originated by the
Employer for its own portfolio and not as an agent for the Plan. The
Plan will pay no transfer charges or other costs in relation to these
transactions. It is represented that any risks and burdens involved in
the origination, closing, booking and servicing of the mortgage loans
will be borne by the Employer at no cost to the Plan.
7. Mr. Duffner as the independent fiduciary will be responsible for
reviewing the Plan's financial statements and the Employer's compliance
with the terms of the exemption (if granted) as set forth in this
document. Mr. Duffner will ensure that the Plan's aggregate investment
in the Notes does not at any time exceed 25% of the Plan's total
assets, and that the Plan's investment in the Notes from any one
borrower does not at any time exceed 10% of the Plan's total assets. In
this regard, Mr. Duffner will conduct annual reviews of the total
assets of the Plan in order to determine their fair market value. These
reviews will take place on each anniversary date from the date that the
final grant for this proposed exemption is published in the Federal
Register. If on those occasions, the aggregate fair market value of the
Notes in the Plan's portfolio exceeds either the 25% or the 10%
limitation as set forth herein, Mr. Duffner will require the Employer
to repurchase any Notes as necessary to comply with the 25% and 10%
limitations. Such repurchases will be completed within three (3)
business days after each annual review and will be at a price equal to
the greater of the outstanding principal balance of the Notes plus
accrued interest through the date of repurchase, or the fair market
value of the Notes on the date of review. Furthermore, Mr. Duffner will
monitor the Employer's mortgage loan servicing department to assure the
receipt of monthly payments of principal and interest due on each Note
purchased by the Plan, and the remission of such payments to the Plan.
8. Mr. Duffner will also monitor the Plan's rights in default
situations. In this regard, the Employer has agreed to repurchase any
Note (i.e., a Repurchase) which is delinquent for three
[[Page 7675]]
consecutive monthly payments of principal and interest at a price equal
to the unpaid principal balance on the Note plus accrued interest
through the date of repurchase. Such Repurchase shall occur not later
than the last business day of the third consecutive month of uncured
principal and interest payment default. Also, the Employer will remit
to the Plan any late fees assessed and collected from the borrower. Mr.
Duffner represents that a Note in default always has a fair market
value which is not greater than the unpaid principal balance plus
accrued interest through the date of repurchase. Therefore, Mr. Duffner
will not conduct any fair market value computations for the Repurchases
in the event of default. However, Mr. Duffner will verify the accuracy
of the sums received by the Plan.
9. Mr. Duffner has determined that the continued purchase by the
Plan of the Notes is administratively feasible, protective and in the
interest of the Plan. Mr. Duffner represents that, due to current
interest rate levels and other market conditions, Plan assets that are
invested in debt instruments and certificates of deposits are returning
substantially lower yields than the Notes. Traditionally, mortgage note
investments have certain inherent risks, such as the borrower's credit
risk. However, under the conditions of this proposed exemption, the
Plan will not be subject to those risks due to the Employer's
obligation to repurchase from the Plan any Notes in default. In
addition, the independent fiduciary (i.e., Mr. Duffner) can require the
Employer to repurchase any Notes from the Plan in order to satisfy the
Plan's liquidity needs and to maintain compliance with the 25% and 10%
limitations as set forth herein. Therefore, Mr. Duffner concludes that
acquisition of the Notes by the Plan will result in higher earnings for
the Plan with less risks than comparable fixed income investments.
The Employer and Mr. Duffner understand that the effectiveness of
the exemption, if granted, will be dependent on the compliance by the
parties with the terms and conditions of the exemption as set forth
herein. Furthermore, the Employer and Mr. Duffner understand that in
the event that unanticipated circumstances reduce the assets of the
Plan to the extent that a violation of any of the terms and conditions
of the exemption results, the relief provided by the exemption will no
longer be available, unless sufficient Repurchases of the Notes are
made by the Employer within three (3) business days after the annual
review described in Paragraph 7 above, or within three (3) business
days of the discovery by Mr. Duffner, as independent fiduciary, of the
unanticipated event which gave rise to any violation of the terms and
conditions of the exemption. In such instances, no additional purchases
of the Notes will be made by the Plan until the conditions of the
exemption can be met.
In this regard, the applicant makes a request regarding a successor
independent fiduciary (the Successor). Specifically, if it becomes
necessary to appoint the Successor to replace Mr. Duffner, the
applicant will send a letter to the Department thirty (30) days prior
to the appointment of the Successor. The letter will specify that the
Successor has responsibilities, experience and independence similar to
those of Mr. Duffner. If the Department does not object to the
Successor, the new appointment will become effective on the 30th day
after the Department receives such letter.
10. In summary, the applicant represents that the proposed
transactions will satisfy the statutory criteria of section 408(a) of
the Act and section 4975(c)(2) of the Code because:
(a) The independent fiduciary (i.e., Mr. Duffner) will decide which
Notes will be purchased for the Plan;
(b) Only first mortgage Notes will be purchased by the Plan;
(c) The Notes which will be purchased by the Plan will be seasoned
for at least three months, will have maximum 15 year maturity, and the
loan to value ratio of the collateral will be at least 150% of the
principal amount of the Note;
(d) In the case of an original acquisition mortgage loan, the Note
will not exceed two-thirds of the lower of the purchase price or the
appraised value of the collateral mortgaged by the borrower to the
Employer to secure the Note;
(e) In the case of a refinancing of the original acquisition
mortgage loan, the Note will not exceed two-thirds of the appraised
value of the collateral mortgaged by the borrower to the Employer to
secure the Note;
(f) In the event of a default and/or if the limitations described
in (g) and (h) below are exceeded, the independent fiduciary (i.e., Mr.
Duffner) can require the Employer to repurchase any Notes sold to the
Plan. Such Repurchases will be for the greater of the outstanding
principal balance of the Notes plus accrued interest through the date
of Repurchase, or the current fair market value of the Notes;
(g) No more than twenty-five percent (25%) of the value of the
Plan's total assets will be invested in the Notes;
(h) No more than ten percent (10%) of the value of the Plan's total
assets will be invested in any one Note or Notes to any one borrower;
(i) Mr. Duffner, as the Plan's independent fiduciary, states that
the fees received by him for serving as an independent fiduciary to the
Plan, combined with any other fees derived from the Employer or related
parties, will not exceed one percent (1%) of his annual gross income
from all sources for each fiscal year that he serves as the independent
fiduciary;
(j) The conditions of PTE 93-71 have been met. PTE 93-71, which
expired September 30, 1998, provided prospective relief for the
purchases by the Plan of certain Notes from the Employer.
(k) The Employer and Mr. Duffner, as the Plan's independent
fiduciary, understand that the effectiveness of the exemption, if
granted, will be dependent on the compliance by the parties with the
terms and conditions of the exemption as set forth herein; and
(l) The Employer and Mr. Duffner, as the Plan's independent
fiduciary, understand that in the event that unanticipated
circumstances reduce the assets of the Plan to the extent that a
violation of any of the terms and conditions of the exemption results,
the relief provided by the exemption will no longer be available unless
sufficient Repurchases of the Notes are made within three (3) business
days by the Employer, and no additional purchases of the Notes are made
by the Plan until the conditions of the exemption can be met.
FOR FURTHER INFORMATION CONTACT: Ekaterina A. Uzlyan of the Department,
telephone (202) 219-8883. (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 of disqualified
person from certain other provisions of the Act and/or the Code,
including any prohibited transaction provisions to which the exemption
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
[[Page 7676]]
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) Before an exemption may be granted under section 408(a) of the
Act and/or section 4975(c)(2) of the Code, the Department must find
that the exemption is administratively feasible, in the interests of
the plan and of its participants and beneficiaries and protective of
the rights of participants and beneficiaries of the plan;
(3) The proposed exemptions, if granted, will be supplemental to,
and not in derogation of, any other provisions of the Act and/or the
Code, including statutory or administrative exemptions and transitional
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
(4) The proposed exemptions, if granted, will be 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 9th day of February, 1999.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, Department of Labor.
[FR Doc. 99-3564 Filed 2-12-99; 8:45 am]
BILLING CODE 4510-29-P
