27330 Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Notices

a third party exchange (the Exchange

Property), as well as all remaining real

estate which constitutes the leased

premises (the Property), provided the

following conditions are met:

(a) The terms of the Amended Lease

remain at least as favorable to the Plans

as those obtainable in an arm’s length

transaction with an unrelated party.

(b) The independent fiduciary—

(i) Determines that the acquisition and

subsequent leasing of the Substitute

Property by the Plans under the

Amended Lease are in the best interest

of the Plans and their participants and

beneficiaries;

(ii) Monitors and enforces compliance

with the terms and conditions of the

Amended Lease, the Escrow Agreement

and the new exemption, at all times;

and

(iii) Appoints one or more

independent fiduciaries to resolve any

conflicts of interest which may develop

among the Plans with respect to the

Amended Lease, the Escrow Agreement,

the Property, or the Plans’ respective

interests therein.

(c) The fair market value of the

proportionate interests held by each

Plan in the Property as a whole

following the exchange transaction does

not exceed 25 percent of each Plan’s

assets.

(d) The Property, the Exchange

Property and the Substitute Property are

all appraised by qualified, independent

appraisers prior to the consummation of

the exchange transaction.

(e) The base rent for the Property is

adjusted annually by the independent

fiduciary based upon an independent

appraisal of such Property.

(f) FFJ incurs all real estate taxes and

other costs which are incident to the

Amended Lease.

(g) The Escrow Agreement is

maintained by M. Fortunoff of Westbury

Corporation (M. Fortunoff), in favor of

the Plans, as security for FFJ’s rental

obligations under the Amended Lease.

The availability of this 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 transactions. In the case of

continuing transactions, if any of the

material facts or representations

described in the application change, the

exemption will cease to apply as of the

date of such change. In the event of any

such change, an application for a new

exemption must be made to the

Department.

For a more complete statement of the

facts and representations supporting the

Department’s decision to grant PTE

93–8, refer to the proposed exemption,

grant notice and technical correction

notice which are cited above.

Signed at Washington, D.C., this 13th day

of May, 1998.

Ivan L. Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 98–13144 Filed 5–15–98; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

[Application No. D–10583, et al.]

Proposed Exemptions; McClain’s R.V.,

Inc. 401(k)

AGENCY: Pension and Welfare Benefits

Administration, Labor.

ACTION: Notice of Proposed Exemptions.

SUMMARY: This document contains

notices of pendency before the

Department of Labor (the Department) of

proposed exemptions 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).

Written Comments and Hearing

Requests

All interested persons are invited to

submit written comments or request for

a hearing on the pending exemptions,

unless otherwise stated in the Notice of

Proposed Exemption, within 45 days

from the date of publication of this

Federal Register Notice. Comments and

requests for a hearing should state: (1)

the name, address, and telephone

number of the person making the

comment or request, and (2) the nature

of the person’s interest in the exemption

and the manner in which the person

would be adversely affected by the

exemption. A request for a hearing must

also state the issues to be addressed and

include a general description of the

evidence to be presented at the hearing.

ADDRESSES: All written comments and

request for a hearing (at least three

copies) should be sent to the Pension

and Welfare Benefits Administration,

Office of Exemption Determinations,

Room N–5649, U.S. Department of

Labor, 200 Constitution Avenue, NW,

Washington, DC 20210. Attention:

Application No. lll, stated in each

Notice of Proposed Exemption. The

applications for exemption and the

comments received will be available for

public inspection in the Public

Documents Room of Pension and

Welfare Benefits Administration, U.S.

Department of Labor, Room N–5507,

200 Constitution Avenue, NW,

Washington, DC 20210.

Notice to Interested Persons

Notice of the proposed exemptions

will be provided to all interested

persons in the manner agreed upon by

the applicant and the Department

within 15 days of the date of publication

in the Federal Register. Such notice

shall include a copy of the notice of

proposed exemption as published in the

Federal Register and shall inform

interested persons of their right to

comment and to request a hearing

(where appropriate).

SUPPLEMENTARY INFORMATION: The

proposed exemptions were requested in

applications filed pursuant to section

408(a) of the Act and/or section

4975(c)(2) of the Code, and in

accordance with procedures set forth in

29 CFR Part 2570, Subpart B (55 FR

32836, 32847, August 10, 1990).

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 requested to the Secretary of

Labor. Therefore, these notices of

proposed exemption are issued solely

by the Department.

The applications contain

representations with regard to the

proposed exemptions which are

summarized below. Interested persons

are referred to the applications on file

with the Department for a complete

statement of the facts and

representations.

McClain’s R.V., Inc. 401(k) Profit

Sharing Plan (the Plan) Located in Lake

Dallas, Texas

[Application No. D–10583]

Proposed Exemption

The Department is considering

granting an exemption under the

authority of 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, 32847, August 10, 1990). If

the exemption is granted, 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 sale of

certain unimproved real property (the

Land) by the Plan to Larry McClain (Mr.

McClain), the sole shareholder of

McClain’s R.V. Inc., the sponsor of the

Plan, and a party in interest with respect
Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Notices 27331

1 In this regard, the Department notes that section

406(a)(1)(D) of the Act prohibits, in relevant part,

a plan fiduciary from causing a plan to engage in

a transaction which constitutes a direct or indirect

transfer to, or use by or for the benefit of, a party

in interest, of any assets of the plan. However, the

Department is not providing any relief herein for

any violations of part 4 of Title I of the Act which

may have occurred during the Plan’s ownership of

the Land.

2The Department expresses no opinion in this

proposed exemption as to whether the acquisition

and the subsequent holding of the Land by the Plan

violated section 404(a) of the Act. Section 404(a) of

the Act requires, among other things, that a

fiduciary of a plan must 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.

The Department notes further that the decision to

propose this exemption is based on the applicant’s

representations, as discussed herein, that any

attempts to sell the Land to a third party would

result in further losses to the Plan.

3The applicant represents that the appraisals for

the years 1996, 1997 and 1998 have been paid by

the Employer.

4This amount represents the sum of the Plan’s

original acquisition cost of $57,000 plus the

aggregate holding costs of $3,473.23.

5The applicant represents that a portion of the

Land’s value is allocated to each participant’s

account.

to the Plan, provided that the following

conditions are satisfied:

(a) the proposed sale will be a onetime cash transaction;

(b) the Plan will receive the greater of:

(1) the original acquisition cost of the

Land plus the aggregate holding costs

incurred by the Plan; or (2) the current

fair market value of the Land (plus an

appropriate premium related to the

adjacency of the Land to other real

property owned by McClain’s R.V. Inc.),

as established by an independent

qualified appraiser at the time of the

sale; and

(c) the Plan will pay no commissions

or other expenses associated with the

proposed sale.

Summary of Facts and Representations

1. The Plan is a 401(k) profit sharing

plan that was established effective

January 1, 1981. As of December 31,

1996, the Plan had 73 participants and

beneficiaries. As of December 31, 1997,

the Plan had total assets of $3,419,103.

Chase Texas, N.A. (formerly known as

Texas Commerce Bank) is a directed

trustee of the Plan.

The sponsor of the Plan is McClain’s

R.V. Inc. (the Employer), which is a

subchapter ‘‘C’’ corporation,

incorporated in the State of Oklahoma.

The Employer sells and services

recreational vehicles and travel trailers.

Mr. McClain is the sole shareholder of

the Employer and a Plan participant.

2. On or about November 7, 1985, the

Plan purchased the Land from Mr.

Pertells, an independent third party, for

approximately $57,000. This original

purchase transaction was made in cash

with no extension of credit involved.

The Land is located at S.W. 2nd Street

and Rockwell Avenue in Oklahoma

City, Oklahoma. The Land consists of

two tracts which comprise

approximately 21,855 square feet, and is

adjacent to certain real property that is

owned by the Employer. The Land has

been used sporadically by the Employer

for overflow or customer parking. The

applicant represents that the Employer’s

customers would occasionally park on

the Land rather than in the Employer’s

main parking lot. In the interest of

maintaining good customer relations,

the Employer did not require the

customers to move their vehicles to the

regular parking area. Additionally,

when the Employer’s main parking lot

was full, the employees of the Employer

would temporarily park their vehicles

on the Land, and would move their

vehicles to the Employer’s parking lot

later in the day. The applicant

represents that the Employer does not

require its employees or customers to

pay for parking on the Land or in the

Employer’s parking lot.1 As such, there

have been no formal leases or

arrangements made between the Plan

and the Employer to compensate the

Plan for parking on the Land.

Furthermore, the Land has yielded no

other revenue for the Plan from the date

of its original acquisition to the

present.2

3. The original decision to purchase

the Land as a long term investment was

made by the trustees of the Plan in 1985.

The applicant maintains that at the time

the Land was originally purchased, land

values were stable and there was no

indication that property values would

plummet shortly thereafter. The trustees

also intended to lease the Land to the

Employer for use as necessary, thus

providing some income to the Plan.

However, the intended leasing of the

Land did not occur because the trustees

were informed that such a lease would

violate the prohibited transaction rules

of the Act.

The Plan’s estimated aggregate

holding costs relating to the Land for the

period 1985–1997 were $3,473.23. This

amount includes the property taxes that

were due on the Land for that period,

and certain periodic appraisals of the

Land that were paid for by the Plan.3

Therefore, the Plan’s total cost for the

acquisition and holding of the Land was

$60,473.23 as of April, 1998.4

4. The Land was appraised on January

15, 1998, (the Appraisal) by Bennie W.

Vowell (Mr. Vowell), an independent

qualified appraiser certified in the State

of Oklahoma. The Appraisal is an

update of an earlier appraisal of the

Land, which was also conducted by Mr.

Vowell. The Appraisal was prepared in

accordance with the Uniform Standards

of Professional Appraisal Practice and

analyzed appropriate market data for

determining the fair market of the Land,

including recent sales of similar

properties as well as the ‘‘highest and

best use’’ value of the Land. The

Appraisal also considered the adjacency

of the Land to real property owned by

the Employer and, accordingly, added a

premium to the value of the Land in any

sale to the Employer. The Appraisal

concluded that the fair market value of

the Land was $49,000, as of January 15,

1998.

5. Mr. McClain proposes to purchase

the Land from the Plan in a one-time

cash transaction. As of December 31,

1997, the Land represented

approximately 1.4 percent of the Plan’s

total assets. The applicant represents

that the Land has been declining in

value since the original acquisition.

This decline in value has been adversely

affecting the value of the participants’

accounts in the Plan.5

The applicant represents that the

amount Mr. McClain would pay for the

Land in this proposed transaction is in

excess of the Land’s current fair market

value. If the Land was sold on the open

market, it would not sell for as much as

Mr. McClain is willing to pay. In

addition, the Plan’s price in a sale of the

Land to an independent third party

would not include the adjacency

premium, which the Appraisal indicates

is appropriate in a sale to Mr. McClain

as a result of the Employer’s ownership

of adjacent property. The sale of the

Land to an independent third party at a

lower price would cause the Plan and

its participants to suffer a financial loss.

Alternatively, if the Land remains in the

Plan, the participants will not be able to

invest the portions of their accounts

which are currently attributable to the

Land in other investment vehicles with

a higher yield. The applicant thus

maintains that the terms and conditions

of the proposed sale are superior

alternatives to selling the Land to a third

party or retaining the Land as a Plan

asset.

6. Therefore, the applicant represents

that the proposed transaction is in the

best interest and protective of the Plan

because the transaction will enable the

Plan to divest of an asset that has

depreciated in value and generated no

income to the Plan. The Plan will be

able to reinvest the proceeds in other

investments with higher rates of return.

The transaction is protective of the Plan,
27332 Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Notices

6Pursuant to CFR 2510.3–3(b) and (c), the

Department has no jurisdiction with respect to the

Plans under Title I of the Act. However, there is

jurisdiction under Title II of the Act pursuant to

section 4975 of the Code.

7The applicant represents that each of the Plans

will have no other participants during the Loan’s

existence, from its initial making until the

outstanding principal balance has been paid in full,

and the Loan is terminated.

8 In this regard, section 72(p)(1) of the Code treats

a loan from a qualified plan to a participant as a

‘‘premature distribution’’ unless the loan meets

certain conditions to qualify for ‘‘exception for

certain loans’’ contained in section 72(p)(2) of the

Code. However, with respect to the Loan, the

Department has no jurisdiction to determine

whether the requirements of section 72(p) of the

Code are met.

because the Plan will receive the greater

of: (a) the total cost of the Land; or (b)

the current fair market value of the Land

(plus an appropriate premium related to

the Land’s adjacency to the Employer’s

property) as established by an

independent qualified appraiser at the

time of the sale. The Plan will not pay

any commissions or other expenses

associated with the sale. Furthermore,

the applicant represents that any

amounts received by the Plan as a result

of the proposed transaction, which are

in excess of the fair market value of the

Land will be treated as a contribution to

the Plan, but that this contribution will

not exceed limitations of section 415 of

the Internal Revenue Code.

7. In summary, the applicant

represents that the transaction satisfies

the statutory criteria of section 408(a) of

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

Code because:

(a) the proposed sale will be a onetime cash transaction;

(b) the Plan will receive the greater of:

(i) the total cost of the Land; or (ii) the

current fair market value of the Land

(plus an appropriate premium related to

the Land’s adjacency to the Employer’s

property) as established by an

independent qualified appraiser at the

time of the sale;

(c) the Plan will not pay any

commissions or other expenses

associated with the proposed sale; and

(d) the sale of the Land to the

Employer will enable the Plan to divest

of an illiquid asset which has

depreciated in value and yielded no

income. Also, the sale will enable the

Plan to reinvest the sale proceeds in

investments with higher rates of return.

Tax Consequences of Transaction

The Department of the Treasury has

determined that if a transaction between

a qualified employee benefit plan and

its sponsoring employer (or an affiliate

thereof) results in the plan either paying

less or receiving more than fair market

value, such excess may be considered to

be a contribution by the sponsoring

employer to the plan, and therefore

must be examined under the applicable

provisions of the Internal Revenue

Code, including sections 401(a)(4), 404

and 415.

For Further Information Contact:

Ekaterina A. Uzlyan of the Department

at (202) 219–8883. (This is not a toll-free

number.)

Karen J. Hartley Profit Sharing Plan

(P/S Plan) and Karen J. Hartley Money

Purchase Pension Plan and Trust

Agreement (M/P Plan, Collectively; the

Plans) Located in Eugene, Oregon

[Application Nos. D–10588 and D–10589]

Proposed Exemption

The Department is considering

granting an exemption under the

authority of 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, 32847,

August 10, 1990.) If the exemption is

granted, 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 loan (the Loan) by the

Plans to Karen J. Hartley (Ms. Hartley),

the trustee and sole participant of the

Plans and, a disqualified person with

respect to the Plans; 6 provided that the

following conditions will be met:

1. The Loan will be structured such

that each Plan will lend up to 25% of

its assets. However, the aggregate

amount of the Loan will not exceed

$40,000 at any time;

2. The outstanding balance of the

Loan will at no time exceed 25% of the

Plans’ aggregate assets;

3. The Plans will bear no expenses

with respect to the proposed

transaction;

4. The terms and conditions of the

Loan will be at least as favorable to the

Plans as those obtainable in arm’slength transaction with an unrelated

party; and

5. The Loan will be adequately

secured by collateral, which at all times

will be equal to 100% of the outstanding

principal amount of the Loan plus 6

months interest at the Loan’s interest

rate of 8.2%. In the event the collateral

amount falls below this required

amount, this proposed exemption, if

granted, will no longer be available.

Summary of Facts and Representations

1. The P/S Plan was established on

January 1, 1989, and the M/P Plan was

adopted on January 1, 1993. Ms. Hartley

is the sole participant 7 and trustee of

both Plans. Ms. Hartley has investment

discretion over the Plans’ assets. Charles

Schwab and Company (Schwab) is the

current custodian of the Plans. As of

January 31, 1998, the P/S Plan had total

assets of $142,171.59, and the M/P Plan

had total assets of $35,031.71. Thus, as

of January 31, 1998, the aggregate

balance of the Plans’ assets was

$177,203.30. Ms. Hartley is a sole

proprietor engaged in the practice of law

in Eugene, Oregon.

2. The Loan will have a ten year

duration and a fixed interest rate of

8.2% per annum. The Loan will be

payable in equal monthly installments

of principal and interest. The

promissory note (the Note) which will

evidence the Loan provides for no

penalty, premium or prepayment charge

in the event of a full or partial

prepayment. The Loan will be

structured such that each Plan will lend

up to 25% of its assets. However, the

aggregate amount of the Loan will at no

time exceed $40,000. Furthermore, the

outstanding principal balance of the

Loan will at no time exceed 25% of the

Plans’ aggregate assets.

Ms. Hartley represents that the terms

of the Loan will comply with section

72(p) of the Code.8 The Loan proceeds

will be used by Ms. Hartley to acquire

a dwelling unit, which shall be her

principal residence.

3. The Loan will be secured by cash

or cash equivalents, such as money

market funds and/or certificates of

deposit (the Collateral). The Collateral

amount will at all times equal 100% of

the outstanding principal amount of the

Loan, plus 6 months of interest on such

principal at the rate of 8.2% per annum.

The Collateral will be maintained in a

separate account with Schwab (the

Collateral Account). The applicant

represents that at no time will the

Collateral Account contain less than the

amount of assets required to fully secure

the Loan, in accordance with this

proposed exemption. In the event that

the amount in the Collateral Account

falls below the required amount, as

specified herein, the proposed

exemption, if granted, will no longer be

available.

A security agreement (Security

Agreement) will be signed by the parties

to create a perfected security interest for

the Plans in the Collateral. Ms. Hartley

will perfect the Plans’ security interest

by a proper filing of a state financing

statement with the Corporation Division
Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Notices 27333

9The Department is providing no opinion in this

proposed exemption as to whether particular

investments or investment strategies would be

considered ‘‘socially responsible’’ in nature. In this

regard, the Department notes that the Internal

Revenue Service (IRS) has taken the view that

investment strategies for qualified retirement plans

may raise questions with regard to the exclusive

benefit rule under section 401(a) of the Code if,

among other things, the safeguards and diversity

that a prudent investor would adhere to are not

present. [See, for example, IRS Rev. Rul. 73–532,

1973–2 C.B. 128]

of the State of Oregon. Ms. Hartley will

retain rights to and possession of the

Collateral, subject to the terms of the

Security Agreement and the rights and

obligations of Schwab, through its

maintenance of the Collateral Account.

4. Ms. Hartley will monitor the

Collateral. On a monthly basis, Ms.

Hartley will receive from Schwab a

statement for the Collateral Account

(Schwab Statement). Ms. Hartley will

determine if the amount in the

Collateral Account contains at least the

required Collateral amount.

On an annual basis, Ms. Hartley will

examine the Schwab Statements for the

Collateral Account, and will determine

whether the amount in the Collateral

Account exceeds the required amount of

the Collateral. This determination may

be made using monthly interest

amortization tables, or a computer

program. If the Collateral Account

exceeds the required Collateral amount

(an Excess Amount), Ms. Hartley may

transfer the Excess Amount to her

personal account, as long as the

required Collateral amount remains in

the Collateral Account. Alternatively,

Ms. Hartley may leave any portion of

the Excess Amount in the Collateral

Account. However, any Excess Amount

in the Collateral Account shall not

modify the required Collateral amount.

If the Loan is ever in default, Ms.

Hartley as trustee for the Plans will seek

to remedy the default and use all legal

means available in the State of Oregon.

5. With respect to the rights of the

Plans as a secured creditor, the Security

Agreement contains the following

provisions. Section 4.2 of the Security

Agreement states that the Debtor (i.e.,

Ms. Hartley) shall not remove the

Collateral from the Collateral Account

without the written consent of the

Secured Party (i.e., the Plans). Section

4.3 of the Security Agreement also states

that the Debtor agrees to execute and file

a financing statement and do whatever

may be necessary under the applicable

provisions contained in the Uniform

Commercial Code for the State of

Oregon to perfect and continue the

Secured Party’s interest in the

Collateral. Section 4.4 of the Security

Agreement provides that the Debtor will

not sell or otherwise transfer or dispose

of any interest in the Collateral without

the prior written consent of the Secured

Party. Furthermore, Section 4.5 of the

Security Agreement provides that,

among other things, except where it has

received the prior written consent of the

Secured Party, the Debtor shall keep the

Collateral free from any adverse liens or

other security interests. The Debtor will

not use or permit anyone to use the

Collateral in violation of any statute,

ordinance, or state or federal regulation,

and the Secured Party may examine and

inspect the Collateral at any time.

6. Ms. Hartley desires to enter into the

loan transaction because the transaction

is administratively feasible, protective

and in the best interest of the Plans. The

Plans will bear no expenses with respect

to the proposed transaction. The Loan

will not exceed 25% of each of the

Plan’s total net assets, and the aggregate

amount of the Loan will not exceed

$40,000. In addition, the outstanding

balance of the Loan will at no time

exceed 25% of the Plans’ aggregate

assets. The Loan will be adequately

secured by the Collateral, which at all

times will be equal to 100% of the

outstanding principal amount of the

Loan plus 6 months interest. Also, Ms.

Hartley represents that the Loan is

consistent with the Plans’ liquidity

needs and investment objectives,

including the Plans’ overall investment

strategy to invest only in so-called

‘‘socially responsible investments’’.9

With respect to the terms and

conditions of the Loan, Washington

Mutual Bank in Eugene, Oregon (the

Bank), in a letter dated April 2, 1998,

has certified that it would enter into a

similar loan with Ms. Hartley (the Bank

Loan). Specifically, the original amount

of the Bank loan would be $40,000. The

Bank Loan would be payable in equal

monthly payments of principal and

interest, in the same amount as the

Loan, over a 10 year period at an

interest rate of 8.2%. Therefore, Ms.

Hartley represents that the terms of the

Loan will be at least as favorable to the

Plans as those obtainable in arm’slength transaction with an unrelated

party, as indicated by the letter from the

Bank.

7. In summary, the applicant

represents that the transaction satisfies

the statutory criteria of section

4975(c)(2) of the Code because:

A. The Plans will bear no expenses

with respect to the proposed

transaction;

B. The Loan will not exceed 25% of

each of the Plan’s total net assets. In

addition, the aggregate amount of the

Loan will not exceed $40,000;

C. The outstanding principal balance

of the Loan will at no time exceed 25%

of the Plans’ aggregate assets;

D. The terms and conditions of the

Loan will be at least as favorable to the

Plans as those obtainable in arm’slength transaction with an unrelated

party;

E. The Loan will be adequately

secured by the Collateral, which at all

times will be equal to 100% of the

principal amount of the Loan plus 6

months interest at the Loan’s interest

rate of 8.2%. In the event the Collateral

Amount falls below this required

amount, the proposed exemption, if

granted, will no longer be available; and

F. Ms. Hartley is the sole participant

of the Plans and she desires that this

transaction be consummated.

Notice to Interested Persons

Because Ms. Hartley is the sole

participant of the Plans, it has been

determined that there is no need to

distribute the notice of proposed

exemption to interested persons.

Comments and requests for a hearing are

due thirty (30) days from the date of

publication of this notice in the Federal

Register.

For Further Information Contact:

Ekaterina A. Uzlyan of the Department

at (202) 219–8883. (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 of

disqualified person from certain other

provisions of the Act and/or the Code,

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 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) Before an exemption may be

granted under section 408(a) of the Act

and/or section 4975(c)(2) of the Code,

the Department must find that the

exemption is administratively feasible,

in the interests of the plan and of its

participants and beneficiaries and
27334 Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Notices

protective of the rights of participants

and beneficiaries of the plan;

(3) The proposed exemptions, if

granted, will be supplemental to, and

not in derogation of, any other

provisions of the Act and/or the Code,

including statutory or administrative

exemptions and transitional 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

(4) The proposed exemptions, if

granted, will be subject to the express

condition that the material facts and

representations contained in each

application are true and complete, and

that each application accurately

describes all material terms of the

transaction which is the subject of the

exemption.

Signed at Washington, DC, this 13th day of

May, 1998.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

Department of Labor.

[FR Doc. 98–13145 Filed 5–15–98; 8:45 am]

BILLING CODE 4510–29–P

NATIONAL CREDIT UNION

ADMINISTRATION

Agency Information Collection

Activities: Submission to OMB for

Review; Comment Request

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Request for comment.

SUMMARY: The NCUA has submitted the

following revised information collection

to the Office of Management and Budget

(OMB) for review and clearance under

the Paperwork Reduction Act of 1995

(P.L. 104–13, 44 U.S.C. Chapter 35).

This information collection is published

to obtain comments from the public. It

was originally published on January 15,

1998. No comments relating to the

information collection were received.

DATES: Comments will be accepted until

June 17, 1998.

ADDRESSES: Interested parties are

invited to submit written comments to

NCUA Clearance Officer or OMB

Reviewer listed below:

Clearance Officer: Mr. James L.

Baylen (703) 518–6411, National Credit

Union Administration, 1775 Duke

Street, Alexandria, Virginia 22314–

3428, Fax No. 703–6433. E-mail:

jbaylen@ncua.gov

OMB Reviewer: Alexander T. Hunt

(202) 395–7860, Office of Management

and Budget, Room 10226, New

Executive Office Building, Washington,

DC 20503.

FOR FURTHER INFORMATION CONTACT:

Copies of the information collection

requests, with applicable supporting

documentation, may be obtained by

calling the NCUA Clearance Officer,

James L. Baylen, (703) 518–6411.

SUPPLEMENTARY INFORMATION: Proposal

for the following collection of

information:

OMB Number: 3133–0004.

Form Number: NCUA 5300.

Type of Review: Revision of a

currently approved collection.

Title: Semiannual and Quarterly

Financial and Statistical Report.

Description: The financial and

statistical information collected is

essential to NCUA in carrying out its

responsibility for supervising federal

credit unions. The information also

enables NCUA to monitor all federally

insured credit unions whose accounts

are insured by the National Credit

Union Share Insurance Fund.

Respondents: All credit unions.

Estimated Number of Respondents/

Recordkeepers: 11,500.

Estimated Burden Hours Per

Response: 8 hours.

Frequency of Response: Quarterly and

semiannually.

Estimated Total Annual Burden

Hours: 204,800.

Estimated Total Annual Cost: N/A.

By the National Credit Union

Administration Board on March 19, 1998.

Becky Baker,

Secretary of the Board.

[FR Doc. 98–13132 Filed 5–15–98; 8:45 am]

BILLING CODE 7535–01–M

OFFICE OF PERSONNEL

MANAGEMENT

Proposed Collection; Comment

Request for Review of A New Generic

Clearance Plan

AGENCY: Office of Personnel

Management.

ACTION: Notice.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995

(Public Law 104–13, May 22, 1995), this

notice announces that the Office of

Personnel Management (OPM) intends

to submit to the Office of Management

and Budget a request for review of a

new Generic Clearance Plan to measure

customer satisfaction with the

Retirement and Insurance Services’

(RIS) programs and services. This Plan

satisfies the requirements of Executive

Order 12862 and the guidelines set forth

in OMB’s ‘‘Resource Manual for

Customer Surveys.’’ RIS is requesting

approval for conducting these voluntary

customer satisfaction surveys in fiscal

years 1998, 1999, and 2000.

Comments are particularly invited on:

whether this collection of information is

necessary for the proper performance of

functions of the Office of Personnel

Management, and whether it will have

practical utility; whether our estimate of

the public burden of this collection of

information is accurate, and based on

valid assumptions and methodology;

and ways in which we can minimize the

burden of the collection of information

on those who are to respond, through

the use of appropriate technological

collection techniques or other forms of

information technology.

For RIS survey questionnaires, we

estimate surveying approximately

464,975 customers per year for an

annual burden of 109,101 hours for FY

1998 and 94,517 hours each for fiscal

years 1999 and 2000; for our telephone

surveys, including Interactive Voice

Response (IVR) technology, we estimate

surveying 264,080 customers per year

for an annual burden of 22,072 hours;

for Internet surveys, we estimate

surveying 1,000 Internet readers for an

annual burden of 167 hours; for Focus

Groups, we estimate that we may have

10–20 focus groups consisting of 10–15

participants (300 total per year), lasting

up to about two hours each for an

annual burden of 600 hours; and for

Comment Card/Postcard surveys that

the RIS Washington, DC, Retirement

Information Office may use, we estimate

that it would take about 7 minutes to

complete and 3,000 customers may

respond for an annual burden of 350

hours. The total annual estimated

burden is 132,498 hours in FY 1998 and

117,914 hours each for fiscal years 1999

and 2000.

For copies of this proposal, contact

Jim Farron on (202) 418–3208, or E-mail

to jmfarron@opm.gov.

DATES: Comments on this proposal

should be received on or before July 17,

1998.

ADDRESSES: Send or deliver comments

to Christopher G. Brown, Acting Chief,

Quality Assurance Division, Retirement

and Insurance Service, U.S. Office of

Personnel Management, 1900 E Street,

NW, Room 4316, Washington, DC

20415.

FOR INFORMATION REGARDING

ADMINISTRATIVE COORDINATION CONTACT:

Mary Beth Smith-Toomey, Budget &

Administrative Services Division, (202)

606–0623.