[Federal Register Volume 60, Number 184 (Friday, September 22, 1995)]
[Notices]
[Pages 49289-49291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23583]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 95-90; Exemption Application No. D-
09783, et al.]
Grant of Individual Exemptions; Texas Commerce Bank National
Association, 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.
Texas Commerce Bank National Association (Texas Commerce) Located in
Houston, TX
[Prohibited Transaction Exemption 95-90; Exemption Application No. D-
09783]
Exemption
The restrictions of section 406(a) 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 (D) of the Code, shall not apply to
the leasing, since September 15, 1993,
[[Page 49290]]
of certain office space in a building (the Building) owned by the
Maritime Association--I.L.A. Pension Fund (the Pension Plan) to Texas
Commerce, a party in interest with respect to the Pension Plan.
This exemption is conditioned on the following requirements:
(a) The trustees of the Pension Plan (the Trustees), who are
independent of Texas Commerce, believe that the leasing of office space
in the Building by the Plan to Texas Commerce is and will continue to
be in the best interest of the Pension Plan and its participants and
beneficiaries.
(b) The decision by the Pension Plan to enter into and continue
leasing office space in the Building to Texas Commerce has been made
and will continue to be made by the Trustees in consultation with an
independent property manager and an independent fiduciary.
(c) The terms of the lease have remained and will remain at least
as favorable to the Pension Plan as those obtainable in an arm's length
transaction with an unrelated party.
(d) The rental charged by the Pension Plan under the lease has been
based and will continue to be based upon arm's length negotiations with
unrelated parties.
(e) The Trustees, in conjunction with the independent fiduciary,
have and will continue to (i) Monitor the terms and conditions of the
lease as well as the terms and conditions of the exemption and (ii)
take all actions that are necessary and proper to safeguard the
interests of the Pension Plan and its participants and beneficiaries.
(f) The subject lease has involved and will continue to involve
less than 25 percent of the Pension Plan's total assets.
EFFECTIVE DATE: If granted, this exemption will be effective September
15, 1993.
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 July 31, 1995 at 60 FR
39014.
Written Comments
The Department received one written comment with respect to the
notice of proposed exemption which related to issues that were not
germane to the subject lease transaction. Accordingly, after giving
full consideration to the entire record, the Department has decided to
grant the exemption as described above. The complete application file,
including all supplemental submissions received by the Department as
well as the comment letter, is made available for public inspection in
the Public Documents Room of the Pension and Welfare Benefits
Administration, Room N-5638, U.S. Department of Labor, 200 Constitution
Avenue, NW., Washington, DC 20210.
FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Group Profit Sharing Plan and Retirement Savings Plan (the Plan)
Located in Cedar City, Utah
[Prohibited Transaction Exemption 95-91; [Exemption Application No. D-
09979]
Exemption
The restrictions of sections 406(a) and 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 cash sale (the Sale) by the Plan of
certain real property (the Property) to the Cedar Development
Corporation, a party in interest with respect to the Plan, provided
that (1) The Sale is a one-time transaction for cash; (2) the Plan does
not suffer any loss nor incur any expense from the transaction; and (3)
the Plan receives as consideration from the Sale the greater of either
$310,000 or the fair market value of the Property as determined by a
qualified, independent appraiser on the date of the Sale.
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 July 21, 1995, at 60 FR
37687.
FOR FURTHER INFORMATION CONTACT: Mr. C. E. Beaver of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Central Freight Lines Employees Profit Sharing and Retirement Plan (the
Plan) Located in Waco, TX
[Prohibited Transaction Exemption 95-92; Exemption Application No. D-
09994]
Exemption
The restrictions of section 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) shall not
apply to the cash sale by the Plan of certain unimproved real property
(the Property) to Central Freight Lines, Inc., a party in interest with
respect to the Plan.
This exemption is conditioned upon the following requirements: (1)
All terms and conditions of the sale are at least as favorable to the
Plan as those obtainable in an arm's length transaction with an
unrelated party; (2) the sale is a one-time transaction for cash; (3)
the Plan is not required to pay any real estate commissions or fees in
connection with the transaction; and (4) the Plan receives a sales
price for the Property which is not less than the greater of (a) the
fair market value of the Property as determined by a qualified,
independent appraiser, or (b) the net acquisition cost of the Property.
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 August 11, 1995 at 60 FR
41123.
FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady 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 accurately describes all material terms of the transaction
which is the subject of the exemption.
[[Page 49291]]
Signed at Washington, DC, this 19th day of September, 1995.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 95-23583 Filed 9-21-95; 8:45 am]
BILLING CODE 4510-29-P
