6228 Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Notices

proceeds to fund cash and policy credit

consideration to policyholders.

The Department concurs with this

change and has made the requested

modification to the Summary. The

Department also wishes to note that

while both formulas would allow the

Holding Company to retain a certain

amount of cash raised in the IPO, under

the new formula, more cash will be

contributed by the Holding Company to

John Hancock.

7. Time Frame For Eligible

Policyholder Submission of Election

Form. On page 57140 of the Notice, the

first paragraph of Representation 10 of

the Summary states, in pertinent part,

that an Eligible Policyholder will be

entitled to receive Holding Company

stock if such Policyholder affirmatively

elects, on a form provided to such

Eligible Policyholder that has been

properly completed and received by

John Hancock prior to the date of the

special policyholder meeting, a

preference to receive stock. John

Hancock notes that the time within

which an Eligible Policyholder may

submit the election form, indicating a

preference to receive shares of Holding

Company stock, has been extended until

December 31, 1999.

8. Role of U.S. Trust. On pages 57136

and 57141 of the Notice, Section

II(g)(3)(ii) and (iii) and Representation

11 of the Summary describe the role of

U.S. Trust, the independent fiduciary

for the John Hancock Plans in

connection with the demutualization.

Specifically, U.S. Trust will vote and

make elections (i.e., stock or cash)

which are available to the John Hancock

Plans under the Plan of Reorganization.

However, once the demutualization is

completed, John Hancock represents

that U.S. Trust will have an ongoing role

only with respect to those John Hancock

Plans which continue to hold Holding

Company stock that is in excess of the

limitations of section 407(a) of the Act.

Thus, once the stock holdings of an

affected John Hancock Plan are brought

within the 10 percent limit, which must

occur within six months of the effective

date of the demutualization, John

Hancock explains that the retention of

U.S. Trust will no longer be required.

The Department concurs with John

Hancock’s understanding with respect

to the retention of U.S. Trust following

the demutualization.

For further information regarding the

comments and other matters discussed

herein, interested persons are

encouraged to obtain copies of the

exemption application file (Exemption

Application No. D–10718) the

Department is maintaining in this case.

The complete application file, as well as

all supplemental submissions received

by the Department, are made available

for public inspection in the Public

Documents Room of the Pension and

Welfare Benefits Administration, Room

N–5638, U.S. Department of Labor, 200

Constitution Avenue, N.W.,

Washington, D.C. 20210.

Accordingly, after giving full

consideration to the entire record,

including the written comments, the

Department has decided to grant the

exemption subject to the modifications

and clarifications described above.

FOR FURTHER INFORMATION CONTACT: Ms.

Jan D. Broady of the Department,

telephone (202) 219–8881. (This is not

a toll-free number.)

Cassano’s Inc. 401(k) Plan and Trust

(the Plan) Located in Dayton, Ohio

[Prohibited Transaction Exemption 2000–07;

Exemption Application Number D–10734]

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 sale (the

Sale) of an improved parcel of real

property (the Property) by the Plan to

Cassano’s, Inc. (Cassano’s), a party in

interest and disqualified person with

respect to the Plan, provided that the

following conditions are met:

(a) The Sale is a one-time transaction

for cash;

(b) The terms and conditions of the

Sale are at least as favorable to the Plan

as those obtainable in an arm’s length

transaction with an unrelated party;

(c) The Plan receives the greater of

$155,500 or the fair market value of the

Property as of the date of the Sale;

(d) The Plan is not required to pay

any commissions, costs or other

expenses in connection with the Sale;

and

(e) Cassano’s files Form 5330 with the

Internal Revenue Service (the Service)

and pays certain excise taxes with

respect to the past prohibited leasing of

the Property within 90 days of the date

this notice granting this exemption is

published in the Federal Register.

For a more complete statement of the

facts and representations supporting the

Department’s decision to grant this

exemption, refer to notice of proposed

exemption published on November 9,

1999 at 64 FR 61134

FOR FURTHER INFORMATION CONTACT: Mr.

J. Martin Jara, 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 accurately describes all

material terms of the transaction which

is the subject of the exemption.

Signed at Washington, D.C., this 3rd day of

Febraury, 2000.

Ivan Strasfeld,

Director of Exemption Determination,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 00–2858 Filed 2–7–00; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

Exemption Application No. D–10384;

Deutsche Bank AG, et al. (Deutsche

Bank)

AGENCY: Pension and Welfare Benefits

Administration, Labor (the Department).

ACTION: Notice of technical correction.

On February 1, 2000, the Department

published in the Federal Register (65

FR 4843) a notice of proposed

exemption for Deutsche Bank which

Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Notices 6229

1The term ‘‘Proposed Exemptions’’ refers to the

following individual exemption applications:

Application Nos. D–10119 and D–10120, Morgan

Guaranty Trust Company of New York and J.P.

Morgan Investment Management Inc.; Application

No. D–10587, Goldman, Sachs & Co.; Application

No. D–10779, The Chase Manhattan Bank;

Application No. D–10820, Citigroup Inc; and

Application No. D–10832, Morgan Stanley Dean

Witter & Co.

2All references in the remainder of the preamble

to specific provisions of Title I of the Act shall refer

also to the corresponding provisions of the Code (if

any).

3To the extent that the Applicant has more than

one asset management affiliate, all references to the

Asset Manager herein shall refer also to the other

asset management entity or entities.

4To the extent that the Applicant has more than

one registered broker-dealer affiliate that

participates in underwriting or selling syndicates,

all references to the Affiliated Broker-Dealer herein

shall refer also to the other broker-dealer entity or

entities.

would allow the assets of certain

employee benefit plans to be invested in

synthetic guaranteed investment

contracts (the Buy & Hold Synthetic

GICs) that would be offered by Deutsche

Bank. Due to a printing error, appearing

on page 4846 of the proposed exemption

in Representation 7, the formula for

computing the Crediting Rate for each

Buy & Hold Synthetic GIC, was stated as

follows:

 N

flow IRR

k = n.

BV k

k = ∑((net cash )/(( )) 1

The Department notes that the correct

formula for calculating the Crediting

Rate is

 N

flow

k = n

BV IRR k

k n = + − ∑((net cash )/(( )) 1

and it hereby amends the proposal.

FOR FURTHER INFORMATION CONTACT: Ms.

Jan D. Broady of the Department at (202)

219–8881. (This is not a toll-free

number.)

Signed at Washington, DC this 3rd day of

February, 2000.

Ivan L. Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

Department of Labor.

[FR Doc. 00–2857 Filed 2–7–00; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

[Application Nos. D–10119 and D–10120, et

al.]

Morgan Guaranty Trust Company of

New York, et al.

AGENCY: Pension and Welfare Benefits

Administration, Department of Labor.

ACTION: Notice of proposed

exemptions.1

SUMMARY: This document contains

notices of pendency before the

Department of Labor (the Department) of

proposed exemptions from the

prohibited transaction restrictions of the

Employee Retirement Income Security

Act of 1974 (the Act) and from the taxes

imposed by the Internal Revenue Code

of 1986 (the Code).

The exemptions, if granted, would

permit purchases of securities by the

applicants’ asset management affiliate

on behalf of employee benefit plans for

which such asset management affiliate

is a fiduciary, from underwriting or

selling syndicates where the applicants’

broker-dealer affiliate participates as a

manager or syndicate member. The

exemptions, if granted, would affect

participants and beneficiaries of the

plans investing in such securities.

EFFECTIVE DATE: The exemptions, if

granted, would be effective as of the

date of publication of this notice in the

Federal Register.

DATES: Written comments and/or

requests for a public hearing must be

received by the Department by March

24, 2000.

ADDRESSES: All written comments and/

or requests for a public hearing

(preferably, three copies) should be sent

to the Office of Exemption

Determinations, Pension and Welfare

Benefits Administration, Room N–5649,

U.S. Department of Labor, 200

Constitution Avenue, N.W.,

Washington, D.C. 20210, Attention:

Application Nos. D–10119 and D–

10120, et al. The applications pertaining

to the proposed exemptions and the

comments received will be available for

public inspection in the Public

Documents Room of the Pension and

Welfare Benefits Administration, U.S.

Department of Labor, Room N–5638,

200 Constitution Avenue, N.W.,

Washington, D.C. 20210.

FOR FURTHER INFORMATION CONTACT:

Andrea W. Selvaggio, Janet L. Schmidt,

or Karin Weng of the Department,

telephone (202) 219–8194. (This is not

a toll-free number.)

SUPPLEMENTARY INFORMATION: Notice is

hereby given of the pendency before the

Department of five applications for

exemption from the restrictions of

section 406 of the Act and the sanctions

resulting from the application of section

4975 of the Code, by reason of section

4975(c)(1) of the Code. The exemptions

were requested in separate applications

filed pursuant to section 408(a) of the

Act and section 4975(c)(2) of the Code,

and in accordance with the procedures

set forth in 29 CFR Part 2570, Subpart

B (55 FR 32836, August 10, 1990), by

the following entities: Morgan Guaranty

Trust Company of New York and J.P.

Morgan Investment Management Inc.,

Goldman, Sachs & Co., The Chase

Manhattan Bank, Citigroup Inc., and

Morgan Stanley Dean Witter & Co.

Effective December 31, 1978, section

102 of Reorganization Plan No. 4 of

1978, 5 U.S.C. App. 1 (1996), generally

transferred the authority of the Secretary

of the Treasury to issue exemptions of

the type requested to the Secretary of

Labor. Accordingly, this notice of

pendency is being issued solely by the

Department.2

Summary of Facts and Representations

The facts and representations

contained in the applications are

summarized below. Interested persons

are referred to the applications on file

with the Department for the complete

representations of the applicants.

The Applicants

The five applicants, diversified

financial services firms, have requested

similar exemptive relief. It is

represented that the applicants and their

various affiliates are all regulated by

other federal government agencies such

as the Securities and Exchange

Commission (the SEC), as well as state

government agencies, and securities

regulatory organizations. For

convenience, following the initial

description of each of the applicants,

below, the applicants and their affiliates

shall be referred to in the remainder of

the notice in generic terms that denote

certain roles, namely, ‘‘the Applicant,’’

‘‘the Asset Manager, ‘‘3 or ‘‘the Affiliated

Broker-Dealer.’’ 4

1. Morgan Guaranty Trust Company of

New York (MGT) is a New York Trust

Company. J.P. Morgan Investment

Management Inc. (JPMIM), is a

registered investment adviser. Both

MGT and JPMIM are wholly owned

subsidiaries of J.P. Morgan & Co. (JPM),

a Delaware corporation. MGT and

JPMIM (together, the Applicant) provide

investment management and investment

advisory services. Hereinafter, the

Applicant shall be referred to as ‘‘the

Asset Manager’’ when discussing the

Applicant’s activities relating to

investment management or investment

advisory services. J.P. Morgan Securities

Inc., a wholly owned indirect subsidiary

of JPM, is a registered broker-dealer

(hereinafter, the Affiliated BrokerDealer). It is represented that, as of

December 31, 1998, the last day of the