[Federal Register Volume 61, Number 135 (Friday, July 12, 1996)]
[Notices]
[Pages 36766-36768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17806]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 96-50; Exemption Application No. D-
10039, et al.]
Grant of Individual Exemptions; San Diego National Bank
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, D.C. 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.
San Diego National Bank Deferred Savings Plan (the Plan) Located in San
Diego, California
[Prohibited Transaction Exemption 96-50; Exemption Application No. D-
10039]
Exemption
The restrictions of sections 406(a), 406(b)(1) and (b)(2), and
407(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
(E) of the Code, shall not apply to (1) the past acquisition by the
Plan of certain stock rights (the Rights) pursuant to a stock rights
offering (the Offering) by SDNB Financial Corp., a California
corporation (the Parent), which wholly-owns and is the parent company
of the San Diego National Bank (the Employer), the sponsor of the Plan
and a party in interest with respect to the Plan; (2) the past holding
of the Rights during the subscription period of the Offering; and (3)
the disposition or exercise of the Rights by the Plan; provided the
following conditions are satisfied: (a) The acquisition and holding of
the Rights by the Plan occurred in connection with the Offering made
available to all shareholders of the common stock of the Parent; (b)
all holders of the common stock of the Parent were treated in a like
manner, with respect to the Offering, including the Plan; and (c) all
decisions regarding holding and disposing of the Rights by the Plan
were made in accordance with Plan provisions for individually-directed
investment of participant accounts by the individual participant whose
account in the Plan received Rights in the Offering, and if no
instructions were received the Rights were sold.
EFFECTIVE DATE: The effective date of this exemption is May 30, 1995.
FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver of the Department,
telephone (202) 219-8881. (This is a toll-free number.)
Puckett Machinery Company Profit Sharing Plan (the Plan), Located in
Jackson, Mississippi
[Prohibited Transaction Exemption 96-51; Exemption Application No. D-
10149]
Exemption
The restrictions of sections 406(a), 406(b)(1) and 406(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 sale (the Sale) of improved real property (the
Property) by the Plan to Richard H. Puckett, a party in interest with
respect to the Plan provided that: (a) The Sale is a one time
transaction for cash; (b) the Plan will receive the greater of $315,000
or the fair market value of the Property at the time of the Sale; (c)
the Property has been appraised by an independent and qualified real
estate appraiser; (d) the Plan will pay no fees or commissions
associated with the Sale; and (e) the terms and conditions of the Sale
are at least as favorable as those obtainable with an unrelated third
party.
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 April 4, 1996 at 61 FR
15143.
For further information contact: Allison Padams of the Department,
telephone (202) 219-8971. (This is not a toll-free number.)
[[Page 36767]]
First Virginia Banks, Inc. Located in Falls Church, Virginia
[Prohibited Transaction Exemption 96-52; Application Nos. D-10175 thru
D-10177]
Exemption
Section I--Transactions
The restrictions of sections 406(a), 406(b)(1) and 406(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 following transactions provided that all of the
conditions set forth in Section II below are met:
(a) The cash sale on December 23, 1994 of certain variable rate
certificates of deposit (CDs) issued by Merrill Lynch National Bank,
Salt Lake City, Utah (the Merrill Lynch CDs) by forty (40) employee
benefit plans, Keogh plans and individual retirement accounts (IRAs),
for which First Knoxville Bank in Knoxville, Tennessee (the Bank)
serves as a fiduciary, to First Virginia Banks, Inc. (First Virginia),
a party in interest or disqualified person with respect to such plans
and IRAs;
(b) The cash sale on various dates during 1995 of certain fixed
rate CDs issued by various unrelated financial institutions (the Fixed
Rate CDs) by eighteen (18) employee benefit plans, Keogh plans and
IRAs, for which the Bank serves as a fiduciary to First Virginia, a
party in interest or disqualified person with respect to such plans and
IRAs; and
(c) The proposed cash sale of certain additional fixed rate CDs
issued by various unrelated financial institutions (the Additional
Fixed Rate CDs) by approximately twenty-one (21) employee benefit
plans, Keogh plans and IRAs, for which the Bank serves as a fiduciary,
to First Virginia, a party in interest or disqualified person with
respect to such plans and IRAs.
Section II--Conditions
(a) Each sale is a one-time transaction for cash;
(b) Each plan or IRA (hereafter referred to as ``Plan'') receives
an amount which is equal to the greater of (i) the face amount of the
CDs owned by the Plan, plus accrued but unpaid interest, at the time of
sale, or (ii) the fair market value of the CDs owned by the Plan as
determined by an independent, qualified appraiser at the time of the
sale;
(c) The Plans do not pay any commissions or other expenses with
respect to the sale of such CDs;
(d) The Bank, as trustee of the Plans, determines that the sale of
the CDs is in the best interests of each Plan and its participants and
beneficiaries at the time of the transaction;
(e) The Bank takes all appropriate actions necessary to safeguard
the interests of the Plans and their participants and beneficiaries in
connection with the transactions;
(f) Each Plan receives a reasonable rate of interest on the CDs
during the period of time such CDs are held by the Plan;
(g) The Bank or an affiliate maintains for a period of six years
the records necessary to enable the persons described below in
paragraph (h) to determine whether the conditions of this exemption
have been met, except that (1) a prohibited transaction will not be
considered to have occurred if, due to circumstances beyond the control
of the Bank or affiliate, the records are lost or destroyed prior to
the end of the six-year period, and (2) no party in interest other than
the Bank or affiliate shall be subject to the civil penalty that may be
assessed under section 502(i) of the Act or to the taxes imposed by
section 4975 (a) and (b) of the Code if the records are not maintained
or are not available for examination as required by paragraph (h)
below; and
(h)(1) Except as provided below in paragraph (h)(2) and
notwithstanding any provisions of section 504(a)(2) of the Act, the
records referred to in paragraph (g) are unconditionally available at
their customary location for examination during normal business hours
by--
(i) Any duly authorized employee or representative of the
Department or the Internal Revenue Service,
(ii) Any fiduciary of the Client Plans who has authority to acquire
or dispose of shares of the Funds owned by the Client Plans, or any
duly authorized employee or representative of such fiduciary, and
(iii) Any participant or beneficiary of the Client Plans or duly
authorized employee or representative of such participant or
beneficiary;
(2) None of the persons described in paragraph (h)(1) (ii) and
(iii) shall be authorized to examine trade secrets of the Bank, or
commercial or financial information which is privileged or
confidential.
EFFECTIVE DATE: This exemption is effective as of December 23, 1994,
for the transactions described in Section I(a) above, and the various
appropriate sale dates in 1995 for the transactions described above in
Section I(b).
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 April 25, 1996, at 61 FR
18430.
FOR FURTHER INFORMATION CONTACT: Mr. E.F. Williams of the Department,
telephone (202) 219-8194. (This is not a toll-free number.)
AmSouth Bancorporation Thrift Plan (the Plan) Located in Birmingham,
Alabama
[Prohibited Transaction Exemption 96-53; Exemption Application No. D-
10185]
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) of Guaranteed
Investment Contract No. 62531 and Guaranteed Investment Contract No.
62651 (collectively, GICs), both issued by Confederation Life Insurance
of Atlanta, Georgia, by the Plan to AmSouth Bancorporation, a Delaware
corporation, the sponsor of the Plan and a party in interest with
respect to the Plan; provided that (1) The Sale is a one-time
transaction for cash; (2) the Plan experiences no losses nor incurs any
expenses from the Sale; and (3) the Plan receives as consideration from
the Sale an amount, as expressed in paragraph No. 4 of the Notice of
Proposed Exemption, that is equal to the total amount expended by the
Plan when acquiring the GICs plus all interest earnings occurring under
the terms of the GICs until 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 May 6, 1996, at 61 FR
20283.
COMMENTS: The Department received two written comments, both of which
were in favor of granting the proposed exemption. Accordingly, after
giving full consideration to the entire record, the Department has
determined to grant the exemption.
FOR FURTHER INFORMATION CONTACT: Mr. C.E. Beaver 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
[[Page 36768]]
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.
Signed at Washington, DC, this 9th day of July, 1996.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, Department of Labor.
[FR Doc. 96-17806 Filed 7-11-96; 8:45 am]
BILLING CODE 4510-29-P