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4852 Federal Register / Vol. 65, No.

21 / Tuesday, February 1, 2000 / Notices

1989. The applicant further represents the Plans. It is in the interest of the exemptions and transitional rules.
that he relied on the advice and counsel Plans’ participants and beneficiaries Furthermore, the fact that a transaction
of Mr. Gorman prior to engaging in the because the Plans’ assets are now more is subject to an administrative or
Sale of the Property. The applicant liquid and investments can be more statutory exemption is not dispositive of
states that Mr. Gorman was kept abreast diversified. It is protective of their rights whether the transaction is in fact a
of all developments relating to the because the parties to the transaction prohibited transaction; and
transaction. The applicant further states obtained an independent appraisal prior (4) The proposed exemptions, if
that Mr. Gorman advised that the to consummating the transaction and granted, will be subject to the express
transaction as executed would be the purchase price of the Property was condition that the material facts and
acceptable under applicable law as long equal to its fair market value. representations contained in each
as it would be documented by a 10. In summary, the Applicant application are true and complete and
qualified real estate appraiser that the represents that the requested retroactive accurately describe all material terms of
price was at its fair market value. individual exemption will satisfy the the transaction which is the subject of
6. The applicant retained the services criteria of section 408(a) of the Act for the exemption. In the case of continuing
of Mr. William R. Johnson (Mr. the following reasons: (a) the Sale was exemption transactions, if any of the
Johnson), MAI, an accredited appraiser a one time transaction for a lump sum material facts or representations
with the Johnson Real Estate Services, cash payment; (b) the Plans received the described in the application change
Inc., located in Fredericksburg, Virginia. fair market value of the Property at the after the exemption is granted, the
Mr. Johnson appraised the Property on time of the transaction; (c) the fair exemption will cease to apply as of the
April 25, 1998. Mr. Johnson represented market value of the Property was date of such change. In the event of any
that he is a certified general real estate determined by an independent, such change, application for a new
appraiser, and represented that he and qualified real estate appraiser; and (d) exemption may be made to the
his firm were independent of the parties the Plans paid no commissions or other Department.
involved. After analyzing the Property, expenses relating to the Sale.
Mr. Johnson concluded that the fair Signed at Washington, DC, this 25th day of
FOR FURTHER INFORMATION January, 2000.
market value of the Property, the ‘‘as is’’ CONTACT: J. Martin Jara of the
market value of the fee simple interest Ivan Strasfeld,
Department, telephone (202) 219–8881.
in the Property, was $125,000. In (This is not a toll-free number.) Director of Exemption Determinations,
reaching this conclusion as to the value Pension and Welfare Benefits Administration,
of the Property, Mr. Johnson used the General Information Department of Labor.
sales comparison approach. Last, Mr. The attention of interested persons is [FR Doc. 00–2122 Filed 1–31–00; 8:45 am]
Johnson indicated in his report that the directed to the following: BILLING CODE 4510–29–U

exposure time for this value is about 10 (1) The fact that a transaction is the
months and the estimated marketing subject of an exemption under section
time to be between 9 and 12 months. 408(a) of the Act and/or section DEPARTMENT OF LABOR
7. The applicant represents that on 4975(c)(2) of the Code does not relieve
a fiduciary or other party in interest of Pension and Welfare Benefits
November 6, 1998, he purchased the
disqualified person from certain other Administration
limited partnership interests from the
Plans for $125,000, the value of the provisions of the Act and/or the Code,
Property as appraised by Mr. Johnson including any prohibited transaction [Prohibited Transaction Exemption 2000–
01; Exemption Application No. D–10755, et
within the exposure time of 10 months. provisions to which the exemption does
al.]
Mr. O’Neill allocated $49,874 to the not apply and the general fiduciary
Profit Sharing Plan for its interest and responsibility provisions of section 404 Grant of Individual Exemptions; South
$75,126 to the Money Purchase Plan for of the Act, which among other things Central New York District Council of
its interest. Mr. O’Neill determined to require a fiduciary to discharge his Carpenters Pension Fund (the Fund),
convert the Property into an office duties respecting the plan solely in the et al.
building for Cullen Inc. The cost of the interest of the participants and
conversion was $245,000. The applicant beneficiaries of the plan and in a AGENCY: Pension and Welfare Benefits
represents that Cullen Inc. currently prudent fashion in accordance with Administration, Labor.
leases the Property. section 404(a)(1)(b) of the act; nor does ACTION: Grant of Individual
8. The applicant represents that in it affect the requirement of section Exemptions.
late 1998, Cullen Inc. learned that Mr. 401(a) of the Code that the plan must
Gorman had sold his business and his operate for the exclusive benefit of the SUMMARY: This document contains
company and left the area. O’Neill employees of the employer maintaining exemptions issued by the Department of
secured the services of Phipps, the plan and their beneficiaries; Labor (the Department) from certain of
Buckholder, located in Fredericksburg, (2) Before an exemption may be the prohibited transaction restrictions of
Virginia, to provide administrative granted under section 408(a) of the Act the Employee Retirement Income
services and tax return preparation for and/or section 4975(c)(2) of the Code, Security Act of 1974 (the Act) and/or
the Plans. Phipps, Buckholder the Department must find that the the Internal Revenue Code of 1986 (the
discovered the prohibited transaction exemption is administratively feasible, Code).
during the review of the records of the in the interests of the plan and of its Notices were published in the Federal
Plans. Shortly thereafter, the applicant participants and beneficiaries and Register of the pendency before the
voluntarily sought advice from counsel protective of the rights of participants Department of proposals to grant such
and accordingly, filed this exemption and beneficiaries of the plan; exemptions. The notices set forth a
application with the Department. (3) The proposed exemptions, if summary of facts and representations
9. The applicants represent that the granted, will be supplemental to, and contained in each application for
exemption would be administratively not in derogation of, any other exemption and referred interested
feasible in that unwinding the provisions of the Act and/or the Code, persons to the respective applications
transaction would likely cause losses to including statutory or administrative for a complete statement of the facts and

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Federal Register / Vol. 65, No. 21 / Tuesday, February 1, 2000 / Notices 4853

representations. The applications have (b) The Fund purchases the Property would not affect the security of * * *‘‘
been available for public inspection at for cash from the Corporation for the guaranteed pension benefits.’’
the Department in Washington, D.C. The lesser of $250,000 or the fair market The Department believes that the
notices also invited interested persons value of the Property as of the date of Fund’s purchase of the Property is
to submit comments on the requested the Sale; consistent with the Fund’s investment
exemptions to the Department. In (c) the Sale is monitored and objectives, in the interests of the
addition the notices stated that any approved by an independent fiduciary participants, and is protective of the
interested person might submit a acting on behalf of the Fund; Fund and its participants. Accordingly,
written request that a public hearing be (d) The Sale is a one-time transaction based on the entire record, the
held (where appropriate). The for cash; and Department has determined to grant the
applicants have represented that they (e) The Fund pays no fees or exemption as proposed.
have complied with the requirements of commissions in connection with the FOR FURTHER INFORMATION CONTACT: J.
the notification to interested persons. Sale. Martin Jara of the Department,
No public comments and no requests for For a more complete statement of the telephone (202) 219–8883 (this is not a
a hearing, unless otherwise stated, were facts and representations supporting the toll free number).
received by the Department. Department’s decision to grant this S & S Partnership, Inc. Profit Sharing
The notices of proposed exemption exemption, refer to the notice of Plan (the Plan) Located in Stony Brook,
were issued and the exemptions are proposed exemption published on New York
being granted solely by the Department December 17, 1999 at 64 FR 70740.
because, effective December 31, 1978, [Prohibited Transaction Exemption 2000–02;
section 102 of Reorganization Plan No. Written Comments Exemption Application No. D–10807]
4 of 1978, 5 U.S.C. App. 1 (1996) The Department received one Exemption
transferred the authority of the Secretary comment from interested persons (the
of the Treasury to issue exemptions of commentator) regarding the notice of The sanctions resulting from the
the type proposed to the Secretary of proposed exemption (the Notice). application of section 4975 of the Code,
Labor. by reason of section 4975(c)(1)(A)
With respect to the comment received
through (E) of the Code, shall not apply
Statutory Findings by the Department from the
to the loan (the Loan) totaling $200,000
commentator, the letter expressed total
In accordance with section 408(a) of by the Plan to Hiramco Realty
opposition to the proposed transaction.
the Act and/or section 4975(c)(2) of the Corporation (Hiramco), a disqualified
The letter further stated that ‘‘the money
Code and the procedures set forth in 29 person with respect to the Plan,
was meant to be for pension purposes
CFR part 2570, Subpart B (55 FR 32836, provided that the following conditions
* * * ‘‘and that the commentator ‘‘will
32847, August 10, 1990) and based upon are met:
lose by this deal.’’ The commentator (a) The terms of Loan by the Plan are
the entire record, the Department makes lastly remarked that the ‘‘money could at least as favorable to the Plan as those
the following findings: grow through [other] investments. obtainable in an arm’s length
(a) The exemptions are The applicant had the Fund’s transaction with an unrelated party;
administratively feasible; independent fiduciary, Mr. John P. (b) the Loan does not exceed 20% of
(b) They are in the interests of the Jeanneret, Ph.D. (Mr. Jeanneret) respond the assets of the Plan, throughout the
plans and their participants and to the commentator * * *’’ In this duration of the Loan;
beneficiaries; and regard, Mr. Jeanneret stated that the (c) the Loan is secured by a first
(c) They are protective of the rights of purchase of the Property constitutes a mortgage on certain real property (the
the participants and beneficiaries of the prudent investment and that the Fund Property) which has been appraised by
plans. will obtain the Property at a favorable a qualified independent appraiser to
price, which is 16% less than the have a fair market value not less than
South Central New York District equalized value of the property’s tax
Council of Carpenters Pension Fund 150% of the principal amount of the
assessment and equivalent to the fair Loan;
(the Fund) Located in Johnson City, market value of the property as if it was
New York (d) the fair market value of the
vacant land and ready for collateral remains at least equal to 150%
[Prohibited Transaction Exemption 2000–01; redevelopment. In addition, Mr. of the outstanding principal balance
Exemption Application No. D–10755] Jeanneret stated that the proposed plus accrued but not unpaid interest,
Exemption transaction is an appropriate investment throughout the duration of the Loan;
for the following reasons: it represents (e) Mr. Steven C. Fuchs and his wife,
The restrictions of sections 406(a), less than 1% of the Fund’s assets, it Margaret Fuchs (the Fuchs) are the only
406(b) (1) and (2) of the Act and the would relieve the Fund of the continued Plan participants to be affected by the
sanctions resulting from the application obligation to pay rent, and it would Loan transaction; 1 and
of section 4975 of the Code, by reason provide additional income for the Fund (f) should any employee of the S & S
of section 4975(c)(1) (A) through (E) of in the form of rent from the Property’s Partnership, Inc., the Plan Sponsor,
the Code, shall not apply to: the sale other tenants. Mr. Jeanneret, lastly, become eligible for plan participation,
(the Sale) of improved real property (the reminded the commentator that ‘‘the the new plan participant will be
Property) to the Fund by the Local 281 Fund is a defined benefit plan that must enrolled in another qualified retirement
Carpenters Property Corporation (the provide promised retirement benefits to plan or Hiramco may elect to pay the
Corporation), a party in interest with its participants, regardless of investment entire balance on the Loan.
respect to the Fund, provided the downturns or depressed real estate
following conditions are met: values.’’ Mr. Jeanneret continued by 1 Since the Fuchs are the sole owners of the Plan

(a) The terms and conditions of the stating that given the ratio of plan assets sponsor and the only participants in the Plan, there
is no jurisdiction under Title I of the Act pursuant
Sale are at least as favorable to the Fund this investment represents, 1%, ‘‘the to 29 CFR 2510.3–3(b). However, there is
as those obtainable in an arm’s length impact of an investment downturn or jurisdiction under Title II of the Act pursuant to
transaction with an unrelated party; depressed real estate value * * *‘‘ section 4975 of the Code.

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4854 Federal Register / Vol. 65, No. 21 / Tuesday, February 1, 2000 / Notices

For a more complete statement of the which is at all times equal to 200% of of section 4975 of the Code, by reason
facts and representations supporting the the outstanding principal balance of of section 4975(c)(1)(A) through (E) of
Department’s decision to grant this such Loan; the Code, shall not apply to the sale by
exemption, refer to notice of proposed (5) New Equipment is valued for the Plan of certain limited partnership
exemption published on December 17, collateralization purposes at 80 percent interests (the Interests) to Northern
1999 at 64 FR 70742. (80%) of the invoice price paid by the Capital Trust Company (Northern), the
For Further Information Contact: Employer to purchase such Equipment Plan’s trustee and a party in interest
J. Martin Jara of the Department, less taxes and transportation expenses. with respect to the Plan, for $185,316 in
telephone (202) 219–8881. (This is not Used Equipment and any Equipment cash, provided the following conditions
a toll-free number.) Lease pledged as collateral for the Loans are satisfied: a) the sale is a one-time
is valued by an independent qualified transaction for cash; b) no commissions
Les Olson Company, Inc. Money
appraiser; are charged in connection with the
Purchase Plan (M/P Plan) and Les
(6) Prior to the approval of each Loan, transaction; c) the Plan receives not less
Olson Company, Inc. Profit Sharing
the Independent Fiduciary determines, than the fair market value of the
Plan (P/S Plan, collectively; the Plans)
on behalf of the Plans, that each Loan Interests at the time of the transaction;
Located in Salt Lake City, Utah
is prudent and in the best interests of and d) the fair market value of the
[Prohibited Transaction Exemption 2000–03; the Plans, and protective of the Plans Interests is determined by a qualified
Exemption Application Nos. D–10810 and D– and its participants and beneficiaries; entity independent of the Plan and of
10811] (7) The Independent Fiduciary Northern.
Exemption conducts a review of all terms and For a more complete statement of the
conditions of this exemption, and the facts and representations supporting the
The restrictions of sections 406(a), Loans, including the applicable interest Department’s decision to grant this
406(b)(1) and (b)(2) of the Act and the rate; the sufficiency of the collateral exemption, refer to the notice of
sanctions resulting from the application pledged for each Loan; the financial proposed exemption published on
of section 4975 of the Code, by reason condition of the Employer; and the November 24, 1999 at 64 FR 66210.
of section 4975(c)(1)(A) through (E) of compliance with the 20% limitation for For Further Information Contact: Gary
the Code, shall not apply to the the Plans (and each Plan’s) maximum H. Lefkowitz of the Department,
proposed series of loans (the Loans), total Loan amount prior to approving telephone (202) 219–8881. (This is not
originated within a five-year period, by each disbursement under the Loan a toll-free number.)
the Plans to Les Olson Company, Inc. Agreement; and
(the Employer), a party in interest with General Information
(8) The Independent Fiduciary is
respect to the Plans, provided that the authorized to take whatever action is The attention of interested persons is
following conditions are met: necessary to protect the Plans’ interests directed to the following:
(1) The total amount of the throughout the duration of the (1) The fact that a transaction is the
outstanding Loans does not exceed 20 exemption, and throughout the duration subject of an exemption under section
percent (20%) of the Plans’ total assets of any Loan entered into under this 408(a) of the Act and/or section
at any time during the transactions and exemption. 4975(c)(2) of the Code does not relieve
each of the Plan’s allocable portion of For a more complete statement of the a fiduciary or other party in interest or
such Loans does not exceed 20 percent facts and representations supporting the disqualified person from certain other
(20%) of such Plan’s total assets; Department’s decision to grant this provisions to which the exemptions
(2) Each Loan entered into by the exemption, refer to the notice of does not apply and the general fiduciary
Plans is made pursuant to the terms and proposed exemption published on responsibility provisions of section 404
conditions of the Loan Agreement (the November 24, 1999 at 64 FR 66208. of the Act, which among other things
Loan Agreement) executed by the require a fiduciary to discharge his
parties and signed on behalf of the Plans Temporary Nature of Exemption duties respecting the plan solely in the
by the Plans’ duly appointed The exemption will be temporary and interest of the participants and
independent, qualified fiduciary (the will expire five (5) years from the date beneficiaries of the plan and in a
Independent Fiduciary); of publication in the Federal Register of prudent fashion in accordance with
(3) All terms and conditions of the this notice granting the exemption. section 404(a)(1)(B) of the Act; nor does
Loans are at least as favorable to the Subsequent to the expiration of the it affect the requirement of section
Plans as those the Plans could obtain in exemption, the Plans may hold any 401(a) of the Code that the plan must
an arms-length transaction with an Loans originating during this five-year operate for the exclusive benefit of the
unrelated third party; period until the Loans are repaid or employees of the employer maintaining
(4) Each Loan is: (i) For a maximum otherwise terminated. the plan and their beneficiaries;
term of five years pursuant to terms and FOR FURTHER INFORMATION CONTACT: (2) These exemptions are
conditions of the Loan Agreement; (ii) Ekaterina A. Uzlyan of the Department supplemental to and not in derogation
fully amortized and payable in equal at (202) 219–8883 (This is not a toll-free of, any other provisions of the Act and/
monthly installments of principal and number). or the Code, including statutory or
interest; (iii) used exclusively by the administrative exemptions and
Employer to purchase office equipment TMI Systems Design Corporation 401(k) transactional rules. Furthermore, the
(the Equipment) which will be leased by Profit Sharing Plan (the Plan) Located fact that a transaction is subject to an
the Employer in the ordinary course of in Dickinson, North Dakota administrative or statutory exemption is
its business to unrelated parties; and (iv) [Prohibited Transaction Exemption 2000–04; not dispositive of whether the
secured by duly perfected security Exemption Application No. D–10821] transaction is in fact a prohibited
interests in the new and used transaction; and (3) The availability of
Equipment, and by certain leases of Exemption these exemptions is subject to the
Equipment (Equipment Leases) where The restrictions of sections 406(a), express condition that the material facts
such Equipment Leases are assigned and 406(b)(1) and (b)(2) of the Act and the and representations contained in each
pledged as collateral for the Loans, sanctions resulting from the application application are true and complete and

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Federal Register / Vol. 65, No. 21 / Tuesday, February 1, 2000 / Notices 4855

accurately describe all material terms of scheduling priorities of the key NATIONAL FOUNDATION ON THE
the transaction which is the subject of participants. Visitors will be requested ARTS AND THE HUMANITIES
the exemption. In the case of continuing to sign a visitor’s register.
exemption transactions, if any of the National Endowment for the Arts;
Dated: January 24, 2000.
material facts or representations Leadership Initiatives Advisory Panel
described in the application change Matthew M. Crouch,
after the exemption is granted, the Advisory Committee Management Officer, Pursuant to Section 10(a)(2) of the
exemption will cease to apply as of the National Aeronautics and Space Federal Advisory Committee Act (Public
date of such change. In the event of any Administration. Law 92–463), as amended, notice is
such change, application for a new [FR Doc. 00–2052 Filed 1–31–00; 8:45 am] hereby given that a meeting of the
exemption may be made to the Leadership Initiatives Advisory Panel
BILLING CODE 7510–01–P
Department. (Visual Arts-Millennium Projects
Section) to the National Council on the
Signed at Washington, D.C., this 25th day Arts will be held on February 22, 2000.
of January, 2000.
The panel will meet from 2:00 to 2:30
Ivan Strasfeld, NATIONAL CREDIT UNION
p.m. via teleconference from room 726
Director of Exemption Determinations, ADMINISTRATION
at the Nancy Hanks Center, 1100
Pension and Welfare Benefits Administration, Pennsylvania Avenue, NW, Washington,
U.S. Department of Labor. Sunshine Act Meeting
DC, 20506.
[FR Doc. 00–2123 Filed 1–31–00; 8:45 am]
This meeting is for the purpose of
BILLING CODE 4510–29–P TIME AND DATE: 2 p.m., Thursday,
Panel review, discussion, evaluation,
February 3, 2000.
and recommendations on financial
PLACE: Board Room, 7th Floor, Room assistance under the National
NATIONAL AERONAUTICS AND 7047, 1775 Duke Street, Alexandria, VA Foundation on the Arts and the
SPACE ADMINISTRATION 22314–3428. Humanities Act of 1965, as amended,
[Notice 00–014] including information given in
STATUS: Open. confidence to the agency. In accordance
NASA Advisory Council (NAC), Space MATTERS TO BE CONSIDERED: 1. Proposed with the determination of the Chairman
Science Advisory Committee (SScAC), Rule: Part 702, NCUA’s Rules and of May 12, 1999, these sessions will be
Astronomical Search for Origins and Regulations, Prompt Corrective closed to the public pursuant to
Planetary Systems (ORIGINS); Action—Definition of Complex Credit subsection (c)(4),(6) and (9)(B) of section
Subcommittee Meeting Union and Risk-Based Net Worth 552b of Title 5, United States Code.
AGENCY: National Aeronautics and Standards. Further information with reference to
Space Administration. this meeting can be obtained from Ms.
2. Final Rule: Parts 702, 741 and 747, Kathy Plowitz-Worden, Office of
ACTION: Notice of Meeting. NCUA’s Rules and Regulations, Prompt Guidelines and Panel Operations,
SUMMARY: In accordance with the
Corrective Action. National Endowment for the Arts,
Federal Advisory Committee Act, Pub. RECESS: 2:45 p.m. Washington, DC, 20506, or call 202/
L. 92–463, as amended, the National 682–5691.
Aeronautics and Space Administration TIME AND DATE: 3 p.m., Thursday,
Dated: January 21, 2000.
announces a forthcoming meeting of the February 3, 2000.
Kathy Plowitz-Worden,
NASA Advisory Council, Space Science PLACE: Board Room, 7th Floor, Room Panel Coordinator, Panel Operations,
Advisory Committee, ORIGINS 7047, 1775 Duke Street, Alexandria, VA National Endowment for the Arts.
Subcommittee. 22314–3428. [FR Doc. 00–2056 Filed 1–31–00; 8:45 am]
DATES: Tuesday, February 15, 2000, 8 BILLING CODE 7537–01–M
a.m. to 5 p.m.; Wednesday, February 16, STATUS: Closed.
2000, 8 a.m. to 5 p.m.; Thursday, MATTERS TO BE CONSIDERED: 1. Two (2)
February 17, 2000, 8 a.m. to 2 p.m. Administrative Actions under Section
ADDRESSES: Ames Research Center,
NATIONAL TRANSPORTATION
206 of the Federal Credit Union Act.
Building 240, room 202, Moffett Field, SAFETY BOARD
Closed pursuant to exemptions (8),
California 94035–1000. (9)(A)(ii) and (9)(B). Sunshine Act Meeting
FOR FURTHER INFORMATION CONTACT: Dr. 2. Administrative Action under Part
Anne L. Kinney, Code S, National 703 of NCUA’s Rules and Regulations. NATIONAL TRANSPORTATION SAFETY BOARD
Aeronautics and Space Administration, Closed pursuant to exemptions (8), TIME AND DATE: 9:30 a.m., Tuesday,
Washington, DC 20546, 202/358–0362. (9)(A)(ii) and (9)(B). February 8, 2000.
SUPPLEMENTARY INFORMATION: The PLACE: NTSB Board Room, 5th Floor,
meeting will be open to the public up 3. Two (2) Personnel Actions. Closed
pursuant to exemptions (2), (5), (6), (7), 490 L’Enfant Plaza, SW, Washington,
to the capacity of the room. The agenda DC 20594.
for the meeting includes the following and (9)(B).
STATUS: Open to the Public.
topics: FOR FURTHER INFORMATION CONTACT:
MATTERS TO BE CONSIDERED:
—Update of Office of Space Science Becky Baker, Secretary of the Board,
—Update on Origins ‘‘Presentation on the NTSB International
Telephone (703) 518–6304. Aviation Safety Program.’’
—Present Science Content
—Astrobiology (The Institute and the Robert M. Fenner, NEWS MEDIA CONTACT: Telephone: (202)
Program) Acting Secretary of the Board. 314–6100.
—Hubble Space Telescope Status [FR Doc. 00–2216 Filed 1–28–00; 11:39 am] Individuals requesting specific
It is imperative that the meeting be BILLING CODE 7535–01–M
accommodation should contact Mrs.
held on these dates to accommodate the

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