[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