/Vol. 63, No. 17/Tuesday, January 27, 1998/Notices
Section I.A. provides no relief from sections406(a)(1)(E), 406(a)(2) and 407 for any personrendering investment advice to an Excluded Planwithin the meaning of section 3(21)(A)(ii) andregulation 29 CFR 2510.3–21(c).
DEPARTMENT OF LABORPension and Welfare BenefitsAdministration
[Application No. D–10304, et al.]
Proposed Exemptions; MBNA AmericaBank, National Association (MBNA)
Pension and Welfare BenefitsAdministration, Labor.
Notice of Proposed Exemptions.
This document containsnotices of pendency before theDepartment of Labor (the Department) of proposed exemptions from certain of theprohibited transaction restrictions of theEmployee Retirement Income SecurityAct of 1974 (the Act) and/or the InternalRevenue Code of 1986 (the Code).
Written Comments and HearingRequests
Unless otherwise stated in the Noticeof Proposed Exemption, all interestedpersons are invited to submit writtencomments, and with respect toexemptions involving the fiduciaryprohibitions of section 406(b) of the Act,requests for hearing within 45 days fromthe date of publication of this
Notice. Comments and requestsfor a hearing should state: (1) The name,address, and telephone number of theperson making the comment or request,and (2) the nature of the person’sinterest in the exemption and themanner in which the person would beadversely affected by the exemption. Arequest for a hearing must also state theissues to be addressed and include ageneral description of the evidence to bepresented at the hearing.
All written comments andrequest for a hearing (at least threecopies) should be sent to the Pensionand Welfare Benefits Administration,Office of Exemption Determinations,Room N–5649, U.S. Department of Labor, 200 Constitution Avenue, NW.,Washington, DC 20210. Attention:Application No. stated in each Notice of Proposed Exemption. The applicationsfor exemption and the commentsreceived will be available for publicinspection in the Public DocumentsRoom of Pension and Welfare BenefitsAdministration, U.S. Department of Labor, Room N–5507, 200 ConstitutionAvenue, NW., Washington, DC 20210.
Notice to Interested Persons
Notice of the proposed exemptionswill be provided to all interestedpersons in the manner agreed upon bythe applicant and the Departmentwithin 15 days of the date of publicationin the
. Such noticeshall include a copy of the notice of proposed exemption as published in the
and shall informinterested persons of their right tocomment and to request a hearing(where appropriate).
Theproposed exemptions were requested inapplications filed pursuant to section408(a) of the Act and/or section4975(c)(2) of the Code, and inaccordance with procedures set forth in29 CFR Part 2570, Subpart B (55 FR32836, 32847, August 10, 1990).Effective December 31, 1978, section102 of Reorganization Plan No. 4 of 1978 (43 FR 47713, October 17, 1978)transferred the authority of the Secretaryof the Treasury to issue exemptions of the type requested to the Secretary of Labor. Therefore, these notices of proposed exemption are issued solelyby the Department.The applications containrepresentations with regard to theproposed exemptions which aresummarized below. Interested personsare referred to the applications on filewith the Department for a completestatement of the facts andrepresentations.
MBNA America Bank, National Association(MBNA), Located in Newark, Delaware,(Application No. D–10304)
The Department is consideringgranting an exemption under theauthority of section 408(a) of the Actand section 4975(c)(2) of the Code andin accordance with the procedures setforth in 29 CFR part 2570, subpart B (55FR 32836, 32847, August 10, 1990).
A. Effective as of the date thisproposed exemption is granted, therestrictions of sections 406(a) and 407(a)of the Act and the taxes imposed bysection 4975(a) and (b) of the Code, byreason of section 4975(c)(1)(A) through(D) of the Code, shall not apply to thefollowing transactions involving trustsand certificates evidencing intereststherein:(1) The direct or indirect sale,exchange or transfer of certificates in theinitial issuance of certificates betweenthe trust, the sponsor or an underwriterand an employee benefit plan subject tothe Act or section 4975 of the Code (aplan) when the sponsor, servicer, trusteeor insurer of a trust, the underwriter of the certificates representing an interestin the trust, or an obligor is a party ininterest with respect to such plan;(2) The direct or indirect acquisitionor disposition of certificates by a plan inthe secondary market for suchcertificates; and(3) The continued holding of certificates acquired by a plan pursuantto Section I.A.(1) or (2).Notwithstanding the foregoing,Section I.A. does not provide anexemption from the restrictions of sections 406(a)(1)(E), 406(a)(2) and 407for the acquisition or holding of acertificate on behalf of an ExcludedPlan, as defined in Section III.K. below,by any person who has discretionaryauthority or renders investment advicewith respect to the assets of theExcluded Plan that are invested incertificates.
B. Effective as of the date thisproposed exemption is granted, therestrictions of sections 406(b)(1) and406(b)(2) of the Act and the taxesimposed by section 4975(a) and (b) of the Code, by reason of section4975(c)(1)(E) of the Code, shall notapply to:(1) The direct or indirect sale,exchange or transfer of certificates in theinitial issuance of certificates betweenthe trust, the sponsor or an underwriterand a plan when the person who hasdiscretionary authority or rendersinvestment advice with respect to theinvestment of plan assets in thecertificates is (a) an obligor with respectto receivables contained in the trustconstituting 0.5 percent or less of thefair market value of the obligations orreceivables contained in the aggregateundivided interest in the trust allocatedto the certificates of the relevant series,or (b) an affiliate of a person describedin (a); if (i) The plan is not an Excluded Plan;(ii) Solely in the case of an acquisitionof certificates in connection with theinitial issuance of the certificates, atleast 50 percent of each class of certificates in which plans haveinvested is acquired by personsindependent of the members of theRestricted Group, as defined in SectionIII.L., and at least 50 percent of theaggregate undivided interest in the trustallocated to the certificates of a series isacquired by persons independent of theRestricted Group;(iii) A plan’s investment in each classof certificates of a series does not exceed25 percent of all of the certificates of that class outstanding at the time of theacquisition;(iv) Immediately after the acquisitionof the certificates, no more than 25percent of the assets of a plan with