44396 Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 / Notices 

Name Issuance type Wachovia role Exemption 

Wachovia Bank Commercial Mortgage 

Trust, Series 2006–C27.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Sponsor: Wachovia 

Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2006–C29.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Sponsor: Wachovia 

Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–C32.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series, 2005–C22.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Sponsor: Wachovia 

Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–C33.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Sponsor: Wachovia 

Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–C34.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Sponsor: Wachovia 

Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

J.P. Morgan Chase Commercial Mortgage 

Securities Corp., Series 2002–C1.

CMBS ...................... Servicer: Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. 

Underwriter: Wachovia Securities, Inc. (but note that PTE 

96–22 is not relied on in the disclosure document).

2002–19 

Wachovia Bank Commercial Mortgage 

Trust, Series 2006 WHALE 7.

CMBS ...................... Servicer: Wachovia Bank, N.A. Special Servicer: Wachovia 

Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: 

Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2005–C21.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2005–C19.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2006–C26.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2006–C28.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–C30.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–C31.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Swap Provider: 

Wachovia Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2007–ESH.

CMBS ...................... Master Servicer: Wachovia Bank, N.A. Special Servicer: 

Wachovia Bank, N.A. Swap Provider: Wachovia Bank, N.A. 

Sponsor: Wachovia Bank, N.A. Underwriter: Wachovia Capital Markets, LLC.

96–22 

Wachovia Bank Commercial Mortgage 

Trust, Series 2005–WHALE 6.

CMBS ...................... Servicer: Wachovia Bank, N.A. Special Servicer: Wachovia 

Bank, N.A. Sponsor: Wachovia Bank, N.A. Underwriter: 

Wachovia Capital Markets, LLC.

96–22 

First Union–Lehman Brothers Wells Fargo, 

Series 1998–C2.

CMBS ...................... Master Servicer: First Union National Bank Sponsor First 

Union National Bank Underwriter: First Union Capital Markets.

96–22 

Legend: CMBS = Commercial mortgage-backed securitizations 

The availability of this amendment, if 

granted, is subject to the express 

condition that the material facts and 

representations contained in the 

Application are true and complete and 

accurately describe all material terms of 

the transactions. In the case of 

continuing transactions, if any of the 

material facts or representations 

described in the Application change, the 

amendment will cease to apply as of the 

date of such change. In the event of any 

such change, an application for a new 

amendment must be made to the 

Department. 

Signed at Washington, DC, this 24th day of 

August 2009. 

Ivan L. Strasfeld, 

Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. E9–20736 Filed 8–27–09; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Application No. L–11482] 

Notice of Proposed Individual 

Exemption Involving The Alaska 

Laborers-Construction Industry 

Apprenticeship Training Trust (the 

Plan), Located in Seattle, WA 

AGENCY: Employee Benefits Security 

Administration, U.S. Department of 

Labor. 

ACTION: Notice of proposed individual 

exemption. 

SUMMARY: This document contains a 

notice of pendency before the 

Department of Labor (the Department) of 


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1Local 942 and Local 341 are collectively referred 

to herein as the ‘‘Unions.’’ 

a proposed exemption which, if granted, 

would permit the purchase by the Plan 

of certain unimproved real property (the 

Property) from the Alaska Construction 

& General Laborers 942 Business 

Association, Inc. (the Building 

Association), an entity owned by Local 

942, Laborers International Union of 

North America (Local 942), a party in 

interest with respect to the Plan. If 

granted, the exemption would affect 

participants and beneficiaries of and 

fiduciaries with respect to the Plan. 

DATES: Effective Date: If granted, this 

proposed exemption will be effective on 

the date the grant notice is published in 

the Federal Register. 

DATES: Written comments and requests 

for a public hearing should be received 

by the Department on or before October 

27, 2009. 

ADDRESSES: All written comments and 

requests for a public hearing (preferably, 

three copies) should be sent to the 

Office of Exemption Determinations, 

Employee Benefits Security 

Administration, Room N–5700, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Washington, DC 20210, 

Attention: Application No. L–11482. 

Interested persons are also invited to 

submit comments and/or hearing 

requests to the Department by facsimile 

to (202) 219–0204 or by electronic mail 

to Broady.Jan@dol.gov by the end of the 

scheduled comment period. The 

application pertaining to the proposed 

exemption and the comments received 

will be available for public inspection in 

the Public Disclosure Room of the 

Employee Benefits Security 

Administration, U.S. Department of 

Labor, Room N–1513, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jan D. Broady, Office of Exemption 

Determinations, Employee Benefits 

Security Administration, U.S. 

Department of Labor, telephone (202) 

693–8556. (This is not a toll-free 

number.) 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given of the pendency before the 

Department of a proposed exemption 

from certain prohibited transaction 

restrictions of section 406 of the 

Employee Retirement Income Security 

Act of 1974 (the Act or ERISA). If 

granted, the exemption would permit 

the Plan to purchase the subject 

Property from Local 942, a party in 

interest with respect to the Plan. The 

proposed exemption has been requested 

in an application filed on behalf of the 

Plan pursuant to section 408(a) of the 

Act and in accordance with the 

procedures set forth in 29 CFR Part 

2570, Subpart B (55 FR 32836, 32847, 

August 10, 1990). Accordingly, this 

proposed exemption is being issued 

solely by the Department. 

Summary of Facts and Representations 

1. The Plan is an apprenticeship and 

training plan that is organized as a 

multi-employer Taft-Hartley Trust 

Fund. The Plan was established in 

October 1967, pursuant to an original 

Agreement and Declaration of Trust (the 

Trust Agreement), between labor and 

employer representatives of the 

construction industry in the State of 

Alaska. The Plan was created to provide 

classroom instruction and outside 

training classes and to simulate work 

experience needed at construction sites 

and on-the-job training for members and 

apprentices of Local 942 and Local 341 

of the Laborers International Union of 

North America (Local 341).1 Although 

the Plan has a physical presence in 

Fairbanks, Alaska and Anchorage, 

Alaska, it maintains its legal address in 

Seattle, Washington. 

2. The Plan is sponsored by the 

Unions and the Associated General 

Contractors for the State of Alaska (the 

AGC), an employer organization 

representing most of the contributing 

employers to the Plan. The AGC serves 

as the collective bargaining agent on 

behalf of the employers in Alaska. 

Besides the Unions and the AGC, 

independent employers contribute to 

the Plan, though these employers may 

not be AGC members. 

3. The Plan is administered by an 

eight member Board of Trustees (the 

Trustees), four of whom are appointed 

by the AGC and four of whom are 

appointed by the Unions. The Trustees 

have ultimate fiduciary, operational and 

investment discretion over the assets of 

the Plan. The Trustees appointed by the 

AGC are Derald Schoon, John Minder, 

Michael Brady, and Roxanna Horschel. 

The Trustees appointed by the Unions 

are Dan Simien and Tim Sharp (who 

represent Local 942), and Ron 

McPheters and Joey Merrick (who 

represent Local 341). The Trustees 

administer the Plan and certain training 

facilities described herein with the 

assistance of Les Lauinger, the Plan’s 

Training Coordinator. As of June 30, 

2008, the Plan had total net assets of 

$5,742,204. As of October 3, 2008, the 

Plan had approximately 2,000 

participants. 

4. The Building Association is an 

Alaska corporation that was 

incorporated by and on behalf of Local 

942 to hold title to real property solely 

on behalf of Local 942. The Building 

Association is located at 2740 Davis 

Road, Fairbanks, Alaska. Other than 

serving as a Plan sponsor, Local 341 has 

no other relationship to the Building 

Association or to Local 942. 

5. Among the assets of the Building 

Association is the Property, consisting 

of approximately .642 acres of 

undeveloped land. The Property is 

located at 2740 Davis Road, Fairbanks, 

Alaska and it is legally described as ‘‘the 

East half of Lot 2, Block 16 [of the 

Laborers Training Center Subdivision], 

facing the corner of Ada Street and 

Twenty-First Avenue.’’ The Property is 

adjacent to the Fairbanks Training 

School building (the Training Facility), 

which is currently owned and operated 

by the Plan for training purposes. The 

Property is also adjacent to real property 

(referred to as ‘‘Lots 1A and 1B of Block 

16’’) owned and used exclusively by the 

Building Association to conduct its 

business operations. 

The Property represents a portion of 

vacant land that was originally 

purchased by the Building Association 

from the Keith Briggs Trust, an 

unrelated party, on June 20, 1997 for 

$112,500 (the Briggs Property). Of the 

purchase price paid for the Briggs 

Property, the Building Association made 

a $50,000 cash payment and it financed 

the remaining balance of $62,500 in two 

annual installments that occurred on the 

first and second anniversary dates of the 

closing date at 8% interest per annum. 

6. On January 9, 2003, the Department 

gave final authorization to the Plan 

pursuant to the requirements of 

Prohibited Transaction Exemption 96– 

62 (61 FR 39988, July 31, 1996, as 

amended by 67 FR 44622, July 3, 2002), 

a class exemption permitting certain 

authorized transactions between plans 

and parties in interest. The 

Department’s authorization (Final 

Authorization Number 2003–01E) 

allowed the Plan to purchase 

approximately 27,907 square feet of the 

Briggs Property, including the western 

half of Lot 2 of Block 16 from the 

Building Association for $42,000. The 

property acquired constitutes the site of 

the Training Facility and it contains 

approximately 4,400 square feet of 

classroom and office space, including 

vacant land for at least 30 parking 

spaces next to the building. The 

Training Facility has been owned and 

occupied entirely by the Plan since 

2003. 

7. In 2004 and 2005, the Trustees 

determined that the Plan needed 

additional vacant land adjacent to the 


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2According to the Trust Agreement, any action 

taken by the Trustees must be performed by ‘‘unit’’ 

vote. As a result of this procedure, any decision to 

purchase the Property was made by such unit or 

group vote, which consisted of one vote by the 

Union Trustees and one vote by the Employer 

Trustees. Although Trustees Tim Sharp and Dan 

Simien, who are Union Trustees representing Local 

942, ‘‘voted’’ within their Trustee group for 

purposes of obtaining a majority, their individual 

votes did not matter because the Union Trustees 

were only entitled to exercise one vote. Similarly, 

the Trustees for Local 341 voted within their 

Trustee group. 

3The right of first refusal has not been included 

in the scope of this exemption request. If the Plan 

ever decides to resell the Property to the Building 

Association and Local 942, the applicants will 

request an administrative exemption from the 

Department. 

4According JDO, the Client Trust Account is an 

‘‘Interest On Lawyer Trust Account’’ or ‘‘IOLTA’’ 

that is established by a law firm to hold funds for 

a client that is separate from the firm’s other 

accounts or any other client accounts. The 

Professional Rules of Responsibility and the Alaska 

Bar Association rules, require for an IOLTA that all 

interest payments earned by the firm accounts or 

the Client Trust Accounts be turned over to the 

state Bar Association. 

5The Department is expressing no opinion herein 

on whether the decision by JDO to recommend that 

the Plan deposit its earnest money in a non-interest 

bearing account, has violated the provisions of 

section 404(a) of the Act. In pertinent part, section 

404(a) of the Act requires, among other things, that 

a fiduciary of a plan act prudently, solely in the 

interest of the plan’s participants and beneficiaries, 

and for the exclusive purpose of providing benefits 

to participants and beneficiaries when making 

investment decisions on behalf of a plan. 

In addition, the Department wishes to point out 

that to the extent JDO has received any direct or 

indirect benefit by recommending that the Plan’s 

earnest money be placed in a Client Trust Account 

rather than in an interest-bearing escrow account 

with an unrelated party, such action would violate 

section 406(a)(1)(D) and section 406(b)(1) and (b)(2) 

of the Act. 

Training Facility.2 An initial Earnest 

Money Receipt and Agreement (the 

Initial Agreement) was executed in 

December 2005 between Mr. Lauinger, 

the Plan’s Training Coordinator and Mr. 

Sharp, on behalf of the Building 

Association. Under the terms of the 

Initial Agreement, the Plan deposited 

$28,000 in the Client Trust Account 

held on behalf of the Plan by the law 

firm Jermain, Dunnagan and Owens, 

P.C. (JDO) of Anchorage, Alaska. JDO, 

the Plan’s legal counsel, is a party in 

interest with respect to the Plan because 

it is a service provider. JDO has also 

submitted this exemption request on 

behalf of the Plan. 

Under the terms of the Initial 

Agreement, the eastern one-half portion 

of Lot 1 of Block 16, which faces the 

corner of Ada and Davis Streets and 

consists of approximately 67,000 square 

feet of space, would be acquired by the 

Plan from the Building Association. 

Therefore, it was understood that the 

Plan would need to obtain an 

administrative exemption from the 

Department in order for this transaction 

to proceed. The Building Association 

was also willing to refrain from selling 

or marketing this tract of property until 

the Plan had received an administrative 

exemption from the Department. If the 

proposed exemption was not approved 

by the Department, the Initial 

Agreement would terminate and no sale 

would be consummated. Although the 

Initial Agreement required that the 

exemption be obtained within a 

reasonable period of time, no specific 

date was indicated. 

8. Subsequently, the Trustees 

determined that it would not be prudent 

for the Plan to purchase the entire 

eastern half of Lot 1 of Block 16. 

Instead, the Plan would purchase only 

half of the parcel or approximately 

27,907 square feet of land. As a result, 

and at full cost to Local 942 and the 

Building Association, the land and lots 

were replatted to show the Property as 

the ‘‘East half of Lot 2 as an extension 

of Lot 2 of Block 16, of the Laborers 

Training Trust Subdivision.’’ 

In November 2007, a Revised and 

Final Earnest Money Receipt and 

Agreement (the Revised Agreement) was 

executed between Mr. Sharp for the 

Building Association and Mr. Lauinger 

on behalf of the Plan. Under the Revised 

Agreement, the amount of the Plan’s 

earnest money was reduced to $26,500. 

In addition, the parties executed an 

addendum to allow the Building 

Association and Local 942 a right of first 

refusal if the Plan decided to resell the 

vacant lot. As with the Initial 

Agreement, the primary condition of the 

Revised Agreement required the 

Department’s approval of both 

transactions.3 The Plan has received no 

interest on its earnest money under 

either the Initial Agreement or the 

Revised Agreement, nor has it paid any 

servicing or administrative fees to JDO.4

Nevertheless, given the amount of time 

that has elapsed since such funds have 

been held in the Client Trust Account, 

JDO has agreed to compensate the Plan 

for all back interest at the time the 

proposed transaction is consummated.5

Such interest amount will be 

determined by the independent 

fiduciary for the Plan, as discussed in 

Representation 12. 

9. The Plan proposes to purchase the 

Property from the Building Association. 

The Plan will acquire the Property for 

the lesser of $62,791 or the fair market 

value of such Property at the time of the 

transaction, as determined by a 

qualified, independent appraiser. The 

Plan will pay the consideration in cash 

and it will not be required to pay any 

real estate commissions, fees or other 

expenses in connection with the 

transaction. Accordingly, an 

administrative exemption is requested 

from the Department. 

Further, the proposed transaction will 

be consummated only after a qualified, 

independent fiduciary, acting on behalf 

of the Plan, negotiates the relevant terms 

and conditions of such transaction and 

determines that proceeding with the 

transaction is in the best interests of the 

Plan and its participants and 

beneficiaries. The independent 

fiduciary will monitor the proposed 

transaction on behalf of the Plan to 

ensure compliance with the agreed 

upon terms. 

10. The Trustees seek this exemption 

so that the Plan will own real property 

that is adjacent to the Training Facility 

and it will give the Plan more direct 

road access. The Property will be used 

by the Plan to store training equipment 

and provide a place to conduct outdoor 

training classes. Also, due to the 

distances involved, it is represented that 

the Training Facility needs to operate 

independently from an Anchorage 

training facility and have sufficient 

physical space and training capabilities 

to hold classes for members and 

apprentices living in Northern Alaska. 

In the past, large and specialized classes 

needed for certification required that 

residents from Fairbanks fly to 

Anchorage and find temporary housing 

to take training classes, at considerable 

expense. 

11. The Property has been appraised 

by Chris Guinn, MAI, SRA, SR/WA, a 

qualified, independent appraiser 

affiliated with the real appraisal firm of 

Street, Guinn & Associates, located in 

Fairbanks, Alaska. Mr. Guinn certifies in 

an appraisal report dated September 23, 

2008 that he has no present or 

prospective interest in the Property nor 

any personal interest or bias with 

respect to the parties involved and that 

he has received no income, at any time, 

from the Building Association or from 

any other parties in interest. 

Mr. Guinn represents that he has been 

a real estate professional in interior 

Alaska for over 25 years and has a 

Master’s degree in business 

administration. He states that he 

maintains several professional 

affiliations as a member of the Appraisal 

Institute and the Greater Fairbanks 

Board of Realtors, among other things. 

He explains that he has owned Street 

Guinn & Associates since 1986, and 

during this time he has acted as an 

independent professional fee appraiser 

specializing in condemnation, rural and 

commercial income property. Further, 

Mr. Guinn states that he has 

participated in numerous arbitration 


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issues, not only as the appraiser of 

record, but also as a chairman of a panel 

charged with the resolution of such 

matters. 

Using the Sales Comparison 

Approach to valuation, Mr. Guinn has 

placed the fair market value of a fee 

simple interest in the Property at 

$70,000, as of September 10, 2008. 

Thus, the Property represents less than 

1.3% of the Plan’s assets. Mr. Guinn 

also physically inspected the Property. 

He explains that his estimate of the fair 

market value of the Property is as a 

‘‘stand-alone property’’ and he 

concludes that the Plan will be engaging 

in an arm’s length transaction. Mr. 

Guinn will update his appraisal on the 

date the purchase transaction is 

consummated. 

12. Washington Capital Management, 

Inc. (WCM) of Seattle, Washington will 

serve as the independent fiduciary for 

the Plan with respect to the proposed 

transaction. Specifically, Cory Carlson, 

Director of Equity Real Estate of WCM 

and Mel Morgan, MAI and Vice 

President of WCM have prepared the 

representations required of the 

independent fiduciary. WCM has been a 

registered investment adviser for over 

31 years. As a real estate investment 

manager, WCM has handled real estate 

investments for many Taft-Hartley 

multiemployer plans, including the 

Alaska Laborers-Employers Retirement 

Trust. As of September 30, 2008, WCM 

had $3.3 billion under management, in 

both separate accounts and commingled 

open ended portfolio strategies for 

stocks, bonds, mortgages or real estate 

equity. WCM is also a ‘‘Qualified 

Professional Asset Manager’’ and it has 

six offices, including an office in 

Anchorage, Alaska and a staff of 55 

employees. WCM states that it has 

received no income, at any time, from 

the parties in interest involved in the 

proposed transaction and has no other 

relationships with these parties. 

WCM represents that it understands 

and accepts the duties, responsibilities 

and liabilities in acting as a fiduciary 

with respect to the Plan. In this regard, 

WCM states that it has a compliance 

department which reviews all ongoing 

actions for compliance with ERISA 

duties and responsibilities. In addition, 

WCM states that it has a ‘‘corporate 

culture’’ and an ‘‘individual value 

system’’ which is attentive to the intent 

and obligations of ERISA and the 

resulting rules. 

Based on Mr. Guinn’s appraisal of the 

Property, WCM concludes that the 

purchase price of $62,791 is acceptable 

and it does not exceed the $70,000 fair 

market value price that would be 

expected in an arm’s length transaction. 

WCM also states that the acquisition of 

the Property would provide certain nonmonetary benefits to the Plan because it 

would allow the Plan to expand its 

training operations. Since the purchase 

price is so low, WCM does not believe 

the acquisition of the Property would 

affect the Plan’s liquidity needs. WCM 

notes that two of the biggest risks to the 

Plan in acquiring a vacant parcel of 

industrial land, such as the Property, are 

environmental liability and 

depreciation. However, it states that it 

has been informed that there are no 

environmental concerns with the 

Property and that it has held value. 

Therefore, the proposed purchase 

transaction, according to WCM, would 

be in the best interests of the Plan and 

its participants and beneficiaries. 

In addition, WCM has addressed the 

amount of the earnest money given by 

the Plan to secure the Property and the 

appropriateness of JDO’s placing such 

funds in the law firm’s Client Trust 

Account instead of in an interestbearing account maintained on behalf of 

the Plan by an unrelated party. With 

respect to the amount of the earnest 

money, WCM states that the $26,500 

deposit, though substantial, is not 

unusual considering the $62,791 

purchase price for the Property. WCM 

explains that earnest money deposits are 

negotiated to encourage the timely 

completion of a transaction and to 

provide sufficient funds to cover 

damages if a dispute arises. When the 

total price is small, WCM further 

explains that the deposits tend to be a 

larger percentage. Thus, the deposit 

amount is within a market standard 

range, according to WCM. 

With respect to the issue of whether 

the earnest money was appropriately 

deposited, WCM states that although the 

earning of interest varies according to 

regional and local practices, it would 

recommend that the Plan’s earnest 

money be placed in an interest-bearing 

escrow account, particularly for future 

long-term transactions involving the 

Plan. WCM also notes that the amount 

of potential interest earned by the Plan 

would have been relatively small. Using 

one month CD rates published by the 

Federal Reserve, WCM has initially 

determined that the Plan’s earnest 

money deposit of $26,500 would have 

earned $3,840 between December 2004 

and April 2009. WCM will update this 

calculation on the date the proposed 

transaction is consummated. 

In addition to the foregoing duties, 

WCM will monitor the purchase 

transaction on behalf of the Plan. 

Further, WCM will ensure compliance 

with all agreed upon terms and 

conditions. 

13. In summary, it is represented that 

the proposed transaction will satisfy the 

statutory criteria for an exemption 

under section 408(a) of the Act because: 

(a) The terms and conditions of the 

proposed transaction will be no less 

favorable to the Plan than those which 

the Plan would receive in an arm’s 

length transaction with an unrelated 

party. 

(b) The purchase of the Property will 

be a one-time transaction for cash. 

(c) The Plan will not pay any real 

estate commissions, fees, or other 

similar expenses to any party as a result 

of the proposed transaction. 

(d) The Plan will purchase the 

Property from the Building Association 

for the lesser of (1) $62,791 or (2) the 

fair market value of the Property as 

determined on the date of such 

transaction by a qualified, independent 

appraiser. 

(e) The proposed transaction will be 

consummated only after an independent 

fiduciary (1) determines that proceeding 

with the transaction is in the best 

interests of the Plan and its participants 

and beneficiaries and (2) negotiates the 

relevant terms and conditions of such 

transaction. 

(f) The independent fiduciary has 

calculated and will calculate to the date 

of sale, using the applicable certificate 

of deposit rate in effect, the amount of 

interest owed to the Plan based upon its 

earnest money deposit for the Property. 

(g) On the date of the transaction, the 

Plan’s legal counsel will pay all interest 

owed the Plan resulting from counsel’s 

placement of the Plan’s earnest money 

deposit for the Property in a noninterest bearing account. 

(h) The independent fiduciary will 

monitor the proposed transaction on 

behalf of the Plan to ensure compliance 

with the agreed upon terms. 

Notice to Interested Persons 

The Trustees will provide notice of 

the proposed exemption to interested 

persons within 30 days of the 

publication of the notice of proposed 

exemption in the Federal Register. The 

interested persons to whom the Trustees 

would provide notice would include, 

but would not be limited to, Plan 

participants, Union members, and all 

active laborers reported to the Plan on 

contribution remittance reports filed 

with the Plan’s Trust Administration 

Office. Such notice will be provided to 

interested persons by first-class mail 

and will include a copy of the notice of 

proposed exemption as published in the 

Federal Register as well as a 

supplemental statement, as required 

pursuant to 29 CFR 2570.43(b)(2). The 

supplemental statement will inform 


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interested persons of their right to 

comment on and/or to request a hearing. 

Comments and requests for a hearing 

with respect to the proposed exemption 

are due within 60 days of the 

publication of this pendency notice in 

the Federal Register. 

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 does not relieve a 

fiduciary or other party in interest from 

certain other provisions of the Act, 

including any prohibited transaction 

provisions to which the exemption does 

not apply and the general fiduciary 

responsibility provisions of section 404 

of the Act, which require, among other 

things, a fiduciary to discharge his or 

her 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; 

(2) The proposed exemption, if 

granted, will not extend to any 

transaction prohibited under section 

406(b)(3); 

(3) Before an exemption can be 

granted under section 408(a) of the Act, 

the Department must find that the 

exemption is administratively feasible, 

in the interest of the plan and of its 

participants and beneficiaries and 

protective of the rights of participants 

and beneficiaries of the plan; 

(4) The proposed exemption, if 

granted, will be supplemental to, and 

not in derogation of, any other 

provisions of the Act, including 

statutory or administrative exemptions. 

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 

(5) This proposed exemption, if 

granted, is subject to the express 

condition that the facts and 

representations set forth in the notice of 

proposed exemption accurately 

describe, where relevant, the material 

terms of the transaction that will be 

consummated if this exemption is 

granted. 

Written Comments and Hearing 

Requests 

All interested persons are invited to 

submit written comments or requests for 

a hearing on the pending exemption to 

the address above, within the time 

frame set forth above, after the 

publication of this proposed exemption 

in the Federal Register. All comments 

will be made a part of the record. 

Comments received will be available for 

public inspection with the referenced 

applications at the address set forth 

above. 

Proposed Exemption 

Based on the facts and representations 

set forth in the application, the 

Department is considering granting an 

exemption under the authority of 

section 408(a) of the Act and in 

accordance with the procedures set 

forth in 29 CFR Part 2570, Subpart B (55 

FR 32836, 32847, August 10, 1990). If 

the exemption is granted, the 

restrictions of sections 406(a), 406(b)(1) 

and (b)(2) of the Act shall not apply to 

the purchase by the Plan of certain 

unimproved real property (the Property) 

from the Alaska Construction & General 

Laborers 942 Building Association, Inc. 

(the Building Association), an entity 

owned by Local 942, Laborers 

International Union of North America, a 

party in interest with respect to the 

Plan, provided that the following 

conditions are satisfied: 

(a) The terms and conditions of the 

proposed transaction are no less 

favorable to the Plan than those which 

the Plan would receive in an arm’s 

length transaction with an unrelated 

party. 

(b) The purchase of the Property is a 

one-time transaction for cash. 

(c) The Plan does not pay any real 

estate commissions, fees, or other 

similar expenses to any party as a result 

of the proposed transaction. 

(d) The Plan purchases the Property 

from the Building Association for the 

lesser of (1) $62,791 or (2) the fair 

market value of the Property as 

determined on the date of such 

transaction by a qualified, independent 

appraiser. 

(e) The proposed transaction is 

consummated only after an independent 

fiduciary (1) determines that proceeding 

with the transaction is in the best 

interests of the Plan and its participants 

and beneficiaries and (2) negotiates the 

relevant terms and conditions of such 

transaction. 

(f) The independent fiduciary 

calculates, on the date of the transaction 

(using the applicable certificate of 

deposit rate in effect), the amount of 

interest owed to the Plan based upon its 

earnest money deposit for the Property. 

(g) On the date of the transaction, the 

Plan’s legal counsel pays all interest 

owed the Plan resulting from counsel’s 

placement of the Plan’s earnest money 

deposit for the Property in a noninterest bearing account. 

(h) The independent fiduciary 

monitors the proposed transaction on 

behalf of the Plan to ensure compliance 

with the agreed upon terms. 

The availability of this proposed 

exemption is subject to the express 

condition that the material facts and 

representations contained in the 

application for exemption are true and 

complete and accurately describe all 

material terms of the Covered 

Transactions. 

Signed at Washington, DC, this 24th day of 

August 2009. 

Ivan L. Strasfeld, 

Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. E9–20737 Filed 8–27–09; 8:45 am] 

BILLING CODE 4510–29–P 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 09–15] 

Notice of the September 9, 2009 

Millennium Challenge Corporation 

Board of Directors Meeting; Sunshine 

Act Meeting 

AGENCY: Millennium Challenge 

Corporation. 

TIME AND DATE: 3 p.m. to 5 p.m., 

Wednesday, September 9, 2009. 

PLACE: Department of State, 2201 C 

Street, NW., Washington, DC 20520. 

FOR FURTHER INFORMATION CONTACT: 

Information on the meeting may be 

obtained from Romell Cummings via email at Board@mcc.gov or by telephone 

at (202) 521–3600. 

STATUS: Meeting will be closed to the 

public. 

MATTERS TO BE CONSIDERED: The Board 

of Directors (the ‘‘Board’’) of the 

Millennium Challenge Corporation 

(‘‘MCC’’) will hold a meeting to initiate 

the Fiscal Year 2010 country selection 

process by identifying countries that 

will be candidates for Millennium 

Challenge Account (‘‘MCA’’) assistance 

in Fiscal Year 2010 based on the per 

capita income and other requirements of 

606(a) of the Millennium Challenge Act 

of 2003 (Pub. L. 108–199 (Division D)) 

(the ‘‘Act’’) and to discuss other 

Compact development efforts with 

MCA-eligible countries; the MCC’s 

Threshold Program; and consider 

certain administrative matters. The 

agenda items are expected to involve the 

consideration of classified information 

and the meeting will be closed to the 

public. 


hsrobinson on DSK69SOYB1PROD with NOTICES