31528 Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices

1Unless otherwise noted, OLDE Financial and its

affiliates are collectively referred to herein as OLDE.

in Kosovo Province) to remain

temporarily in the United States is not

contrary to the national interest of the

United States.

Accordingly, it is ordered as follows:

(1) Kosovo Province is designated

under sections 244(b)(1) (A) and (C) of

the Act. Residents of Kosovo Province

(or aliens having no nationality who last

habitually resided in Kosovo Province)

who have been continuously physically

present and have continuously resided

in the United States since June 9, 1998,

may apply for TPS within the

registration period which begins on June

9, 1998, and ends on June 8, 1999.

(2) I estimate that there are no more

than 5,000 residents of Kosovo Province

(or aliens having no nationality who last

habitually resided in Kosovo Province)

who are currently in nonimmigrant or

unlawful status and therefore eligible

for TPS.

(3) Except as may otherwise be

provided, applications for TPS by

residents of Kosovo Province (or aliens

having no nationality who last

habitually resided in Kosovo Province)

must be filed pursuant to the provisions

of 8 CFR part 244. Aliens who wish to

apply for TPS must file an Application

for Temporary Protected Status, Form I–

821, together with an Application for

Employment Authorization, Form I–

765, during the registration period,

which begins on June 9, 1998, and will

remain in effect until June 8, 1999.

(4) A fee prescribed in 8 CFR

103.7(b)(1) (currently fifty dollars ($50))

will be charged for each Application for

Temporary Protected Status, Form I–

821, filed during the registration period.

(5) The fee prescribed in 8 CFR

103.7(b)(1) (currently seventy dollars

($70)) will be charged for each

Application for Employment

Authorization, Form I–765, filed by an

alien requesting employment

authorization. An alien who does not

wish to request employment

authorization must nevertheless file

Form I–765, together with Form I–821,

for data gathering purposes, but in such

cases Form I–765 will be without fee.

(6) Pursuant to section 244(b)(3)(A) of

the Act, the Attorney General will

review, at least 60 days before June 8,

1999, the designation of Kosovo

Province under the TPS program to

determine whether the conditions for

designation continue to exist. Notice of

that determination, including the basis

for the determination, will be published

in the Federal Register. If there is an

extension of designation, late initial

registration for TPS shall be allowed

only pursuant to the requirements of 8

CFR 244.2(f)(2).

(7) Information concerning the TPS

program for residents of Kosovo

Province (or aliens having no

nationality who last habitually resided

in Kosovo Province) will be available at

local Immigration and Naturalization

Service offices upon publication of this

notice.

Dated: June 3, 1998.

Janet Reno,

Attorney General.

[FR Doc. 98–15329 Filed 6–8–98; 8:45 am]

BILLING CODE 4410–10–M

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

[Prohibited Transaction Exemption 98–25;

Exemption Application No. D–10410, et al.]

Grant of Individual Exemptions; Smart

Retirement The OLDE 401(k) Plan

AGENCY: Pension and Welfare Benefits

Administration, Labor.

ACTION: Grant of Individual Exemptions.

SUMMARY: This document contains

exemptions issued by the Department of

Labor (the Department) from certain of

the prohibited transaction restrictions of

the Employee Retirement Income

Security Act of 1974 (the Act) and/or

the Internal Revenue Code of 1986 (the

Code).

Notices were published in the Federal

Register of the pendency before the

Department of proposals to grant such

exemptions. The notices set forth a

summary of facts and representations

contained in each application for

exemption and referred interested

persons to the respective applications

for a complete statement of the facts and

representations. The applications have

been available for public inspection at

the Department in Washington, DC. The

notices also invited interested persons

to submit comments on the requested

exemptions to the Department. In

addition the notices stated that any

interested person might submit a

written request that a public hearing be

held (where appropriate). The

applicants have represented that they

have complied with the requirements of

the notification to interested persons.

No public comments and no requests for

a hearing, unless otherwise stated, were

received by the Department.

The notices of proposed exemption

were issued and the exemptions are

being granted solely by the Department

because, effective December 31, 1978,

section 102 of Reorganization Plan No.

4 of 1978 (43 FR 47713, October 17,

1978) transferred the authority of the

Secretary of the Treasury to issue

exemptions of the type proposed to the

Secretary of Labor.

Statutory Findings

In accordance with section 408(a) of

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

Code and the procedures set forth in 29

CFR Part 2570, Subpart B (55 FR 32836,

32847, August 10, 1990) and based upon

the entire record, the Department makes

the following findings:

(a) The exemptions are

administratively feasible;

(b) They are in the interests of the

plans and their participants and

beneficiaries; and

(c) They are protective of the rights of

the participants and beneficiaries of the

plans.

SmartRetirement: The OLDE 401(k)

Plan (the Plan), Located in Detroit, MI

[Prohibited Transaction Exemption 98–25;

Application No. D–10410]

Exemption

Section I. Covered Transactions

The restrictions of sections 406(a)(1)

(B) and (D) and 406(b) of the Act and the

sanctions resulting from the application

of section 4975 of the Code, by reason

of section 4975(c)(1) (B), (D), (E) and (F)

of the Code, shall not apply, (1) effective

October 4, 1996, to the past and

continuing receipt, by OLDE Discount

Corporation (OLDE Discount), a wholly

owned subsidiary of OLDE Financial

Corporation (OLDE Financial), the Plan

sponsor, of a portion of certain

distribution fees that are paid by third

party mutual funds (the Funds) to OLDE

Discount pursuant to Rule 12b–1 (Rule

12b–1; the 12b–1 Fees) under the

Investment Company Act of 1940 (the

1940 Act) and which are attributable to

Plan assets that are invested in the

Funds; and (2) the proposed cash rebate

of such 12b–1 Fees, by OLDE Discount,

to either the Plan or to the individuallydirected accounts (the Accounts) of the

participants in the Plan.1

The transactions are conditioned on

the requirements set forth below in

Section II.

Section II. General Conditions

(a) The decision to invest the assets of

an Account in the Funds is made by a

Plan participant and not by OLDE nor

is OLDE providing ‘‘investment advice’’

to the participant within the meaning of

section 3(21) of the Act.

(b) No sales commissions, other than

12b–1 Fees, are paid by an Account in
Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices 31529

connection with the purchase or sale of

shares in the Funds and no redemption

fees are paid by an Account with respect

to the sale of shares of the Funds.

(c) The Plan, or if applicable,

Account, receives a rebate from OLDE

Discount in the form of cash equal to

such Plan’s or Account’s pro rata

portion of all 12b–1 Fees received by

OLDE Discount from the Funds under a

rebate program (the Rebate Program).

(d) For purposes of the Rebate

Program:

(1) During the course of each calendar

year, as it receives 12b–1 Fees from the

Funds, OLDE Discount calculates that

portion of the 12b–1 Fees that are

attributable to the Plan, including

interest based on the Federal Funds Rate

plus 2 percent.

(2) Within 30 days of receipt by OLDE

Discount of the 12b–1 Fees, OLDE

Discount separates and transfers the

Plan’s allocable portion of the 12b–1

Fees, together with interest earned on

such fees (as determined in Step 1

above), to a money market account that

has been established in the Plan’s name

with an unrelated bank, Comerica Bank

of Detroit, Michigan (Comerica).

(3) The Plan may draw upon its

Comerica money market account during

the course of the year for the purpose of

paying the Plan’s administrative

expenses owed to third parties.

(4) Immediately following the end of

each calendar year, any remaining

rebated 12b–1 Fees that are not drawn

upon, after the payment of the Plan’s

administrative expenses, are allocated

by the Plan to the participant Accounts.

(5) OLDE establishes and maintains a

system of internal and external

accounting controls for the Rebate

Program.

(6) OLDE retains an independent

auditor outside of the control of OLDE

to audit, on an annual basis, OLDE

Discount’s rebating of 12b–1 Fees to

either the Plan or the Accounts.

(e) Prior to purchasing shares of the

Funds, each Plan participant receives

full written disclosure of information

concerning the Funds, including, but

not limited to, the following:

(1) A communications document

containing a general overview of the

Plan, the types of investment Funds

available, a listing of each specific Fund

alternative and its investment objective,

which directs the participant to request,

either from the Fund or from OLDE,

prospectuses for those Funds in which

participant is interested in investing.

(2) Standard & Poor’s reports on all of

the Funds on OLDE’s company-wide

Intranet which participants may access

and print on demand.

(3) If requested by the participant,

copies of applicable prospectuses for the

Funds discussing the investment

objectives of the Funds, the policies

employed to achieve these objectives,

the relationship, if any, existing

between OLDE Discount with the

parties who act as sponsors,

distributors, administrators, investment

advisers and sub-advisers, custodians

and transfer agents to the Funds and a

statement describing the fee structure

and the 12b–1 Fees. (OLDE will

supplement such disclosures with

information describing the Rebate

Program.)

(4) Upon written or oral request to

OLDE, a statement of additional

information supplementing the

applicable prospectus, which describes

the types of securities and other

instruments in which the Funds may

invest, the investment policies and

strategies that the Funds may utilize,

including a description of the risks.

(5) Upon written request to OLDE, a

copy of OLDE Discount’s distribution

agreements pertaining to the various

Funds.

(6) Copies of the proposed exemption

and grant notice describing the

exemptive relief provided herein.

(f) After receiving the disclosures

noted above, the participant

acknowledges receipt of the documents

in writing and provides authorization to

OLDE with respect to investing in the

Funds. However, for Fund purchases

occurring prior to the date this final

exemption is granted, the

acknowledgement and authorization are

given by a participant at the time of and

as part of the next proposed investment

change by such participant.

(g) Each additional purchase or

redemption of shares in the Funds is

directed by the participant, provided

OLDE makes available to the

participant, copies of the applicable

Fund prospectus and disclosures

regarding the fee structure and the 12b–

1 Fees.

(h) Each Plan participant receives the

following written or oral disclosures

from OLDE with respect to ongoing

investment in the Funds:

(1) Written confirmations of each

purchase or redemption transaction

involving shares of a Fund.

(2) Telephone quotations of such

participant’s Account balance.

(3) A monthly statement of account

specifying the net asset value of the

assets in a participant’s Account, a

summary of current year contributions,

contributions since inception, beginning

and ending account balances,

summaries of contributions, purchases

and sales during the month, a summary

of the participant’s final Account

portfolio, aggregate 12b–1 Fees paid to

OLDE Discount, and, to the extent

applicable during one month per year

only, any rebated fees that are allocated

to the participant’s Account.

(4) Semiannual and annual reports

that include financial statements for the

Funds.

(5) Investment performance histories

and other information provided by the

Funds to OLDE;

(6) Ratings information received about

the Funds from independent sources

such as Morningstar;

(7) Responses to oral or written

inquiries of participants upon request.

(i) The terms of each purchase or

redemption of shares in the Funds

remain at least as favorable to an

Account as those obtainable in an arm’s

length transaction with an unrelated

party.

(j) OLDE maintains for a period of six

years the records necessary to enable the

persons described below in paragraph

(k) 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

OLDE, the records are lost or destroyed

prior to the end of the six year period,

and (2) no party in interest, other than

OLDE, 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

(k) below; and

(k)(1) Except as provided in paragraph

(k)(2) and notwithstanding any

provisions of section 504(a)(2) and (b) of

the Act, the records referred to in

paragraph (j) are unconditionally

available at their customary location for

examination during normal business

hours by—

(A) Any duly authorized employee or

representative of the Department, the

Internal Revenue Service or the

Securities and Exchange Commission

(the SEC), and

(B) Any participant or beneficiary of

the Plan or duly authorized employee or

representative of such participant or

beneficiary;

(2) None of the persons described in

paragraph (k)(1)(B) shall be authorized

to examine trade secrets of OLDE, or

commercial or financial information

which is privileged or confidential.

III. Definitions

For purposes of this exemption:

(a) The term OLDE means OLDE

Financial Corporation and any affiliate
31530 Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices

of OLDE Financial, as defined in

paragraph (b) of this Section III.

(b) An affiliate of OLDE includes—

(1) Any person directly or indirectly

through one or more intermediaries,

controlling, controlled by, or under

common control with OLDE.

(2) Any officer, director or employee

or relative of such person, or partner in

any such person; and

(3) Any corporation or partnership of

which such person is an officer,

director, partner or employee.

(c) The term control means the power

to exercise a controlling influence over

the management or policies of a person

other than an individual.

(d) The term participant includes

participants in the Plan and their

beneficiaries who may invest in the

Funds.

(e) The term Fund or Funds means

any open-end management investment

company or companies registered under

the 1940 Act for which OLDE Discount

provides distribution and related

services.

(f) The term net asset value means the

amount calculated by dividing the value

of all securities, determined by a

method as set forth in a Fund’s

prospectus and statement of additional

information, and other assets belonging

to each of the portfolios in such fund,

less the liabilities chargeable to each

portfolio, by the number of outstanding

shares.

(g) The term relative means a relative

as that term is defined in section 3(15)

of the Act (or a member of the family as

that term is defined in section 4975(e)(6)

of the Code), or a brother, a sister, or a

spouse of a brother or a sister.

EFFECTIVE DATE: This exemption is

effective as of October 4, 1996 with

respect to transactions involving the

past and continuing receipt, by OLDE

Discount, of 12b–1 Fees that are

attributable to the Plan from the Funds.

However, it is prospective for

transactions involving the cash rebate,

by OLDE Discount, of such fees to either

the Plan or to the Accounts.

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 (the Notice)

published on February 26, 1998 at 63 FR

9863.

Written Comments

The Department received two written

comments with respect to the Notice

and no requests for a public hearing.

The first comment, which was

submitted by employees of OLDE

Discount, was in favor of the exemption

and urged that it be granted. The second

comment was submitted by OLDE and

suggested clarifications to ambiguities

in the conditional language of the

Notice and the Summary of Facts and

Representations (the Summary).

Presented below are OLDE’s comments

and the Department’s accompanying

responses.

1. Section 406(a) Exemptive Relief

The operative language of the Notice

provides exemptive relief from the

restrictions of section 406(b) of the Act

and the sanctions resulting from the

application of section 4975 of the Code,

by reason of section 4975(c)(1)(E) and

(F) for the covered transactions.

However, in its comment, OLDE has

requested that the Department expand

the scope of the Notice to include

exemptive relief from section 406(a) of

the Act and the corresponding sections

of the Code.

The Department agrees with OLDE’s

comment and has revised the operative

language of the Notice to include

exemptive relief from section 406(a) of

the Act and the corresponding sections

of the Code. Specifically, the

Department has amended the Notice to

include exemptive relief from section

406(a)(1)(B) of the Act and section

4975(c)(1)(B) of the Code under the

theory that the 30 day time lag between

OLDE Discount’s receipt of 12b–1 Fees

from the Funds that are attributable to

the Plan and the transfer of such fees to

the Comerica money market established

in the Plan’s name, could be construed

as a prohibited extension of credit

between the Plan and OLDE Discount.

In addition, the Department has revised

the Notice to include exemptive relief

from section 406(a)(1)(D) of the Act and

section 4975(c)(1)(D) of the Code under

the premise that the covered

transactions may be considered

prohibited transfers to OLDE Discount

of assets of the Plan inasmuch as the

Plan’s allocable portion of the 12b–1

Fees are ultimately borne by the Plan

through internal mutual fund expenses

that reduce the Plan’s earnings.

2. Section II(c)

Section II(c) of the Notice refers to

‘‘12b–1 Fees charged by OLDE Discount

to the Funds.’’ As a technical matter

relating to the nature of 12b–1 Fees,

OLDE wishes to clarify that OLDE

Discount does not charge the Funds for

12b–1 Fees. Instead, OLDE suggests that

the Department reword this phrase to

read as follows: ‘‘12b–1 Fees received by

OLDE Discount from the Funds.’’ In

response, the Department has made the

requested change to Section II(c) of the

Notice.

3. Section II(e)(1) and Representation 11

OLDE states that Section II(e)(1) of the

Notice and Representation 11 of the

Summary indicate that prior to

purchasing shares in the funds, each

Plan participant will receive copies of

all applicable prospectuses for the

Funds. Because there are in excess of 50

Funds available under the Plan, OLDE

represents that this would require that

OLDE provide in advance to all

participants more than 50 prospectuses.

Instead, OLDE would prefer to make all

prospectuses available to participants

upon their request. In addition, OLDE

explains that it would automatically

provide an applicable prospectus to a

participant who elects to invest in a

specific Fund.

To inform participants of Fund

options, OLDE represents that it has

developed a communications document

for employees which gives a general

overview of the Plan, the types of

investment Funds available and a listing

of each specific Fund alternative and its

investment objective. OLDE explains

that the communications document

urges participants to request, either from

the Fund houses or from OLDE’s human

resources department, prospectuses for

those Funds in which participants are

interested in investing prior to investing

in the Funds. In this way, OLDE

believes that it can provide relevant

materials to each participant. In

addition, OLDE states that it makes

available Standard & Poor’s reports on

all of the Funds on its company-wide

Intranet which participants may access

and print on demand.

The Department does not wish to

create an unwieldy result by requiring

that OLDE provide each participant

more than 50 prospectuses in advance

of such participant’s purchase of Fund

shares. Rather, the Department wishes

to clarify that this condition and the

corresponding language in

Representation 11 relate to OLDE’s

provision to a Plan participant of

‘‘applicable’’ prospectuses, meaning

prospectuses for those Funds in which

the participant may contemplate

investing and not all of the prospectuses

that may be available for the Funds

offered under the Plan. Although the

Department expects that a participant

will receive a copy of an applicable

prospectus before investing in the

Funds, it believes that the different

strategies adopted by OLDE help to

satisfy this objective. Therefore, the

Department has revised Section II(e) of

the Notice in its entirety as follows:

(e) Prior to purchasing shares of the Funds,

each Plan participant receives full written

disclosure of information concerning the
Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices 31531

Funds, including, but not limited to, the

following:

(1) A communications document

containing a general overview of the Plan, the

types of investment Funds available, a listing

of each specific Fund alternative and its

investment objective, which directs the

participant to request, either from the Fund

or from OLDE, prospectuses for those Funds

in which participant is interested in

investing.

(2) Standard & Poor’s reports on all of the

Funds on OLDE’s company-wide Intranet

which participants may access and print on

demand.

(3) If requested by the participant, copies

of applicable prospectuses for the Funds

discussing the investment objectives of the

Funds, the policies employed to achieve

these objectives, the relationship, if any,

existing between OLDE Discount with the

parties who act as sponsors, distributors,

administrators, investment advisers and subadvisers, custodians and transfer agents to

the Funds and a statement describing the fee

structure and the 12b–1 Fees. (OLDE will

supplement such disclosures with

information describing the Rebate Program.)

(4) Upon written or oral request to OLDE,

a statement of additional information

supplementing the applicable prospectus,

which describes the types of securities and

other instruments in which the Funds may

invest, the investment policies and strategies

that the Funds may utilize, including a

description of the risks.

(5) Upon written request to OLDE, a copy

of OLDE Discount’s distribution agreements

pertaining to the various Funds.

(6) Copies of the proposed exemption and

grant notice describing the exemptive relief

provided herein.

In addition, the Department has made

similar changes to Representation 11.

4. Section II(f) and Representation 11

OLDE represents that Section II(f) of

the Notice and Representation 11 of the

Summary indicate that participants will

acknowledge receipt of the disclosure

documents and will provide

authorization to OLDE with respect to

investing in the Funds. As to the timing

of this acknowledgement and

authorization, OLDE believes that most

workable mechanism is to have each

Plan participant provide the

acknowledgement and authorization on

the next occasion on which such

participant makes a written election

with regard to Plan investments, given

the retroactive nature of the exemption

request and to avoid potential

participant inaction if OLDE mailed

acknowledgment/authorization forms to

each Plan participant. Under the

alternative proposed, OLDE notes that

this would generally be the date that the

participant next elects to modify his or

her investment choices.

The Department has considered this

comment and has redrafted Condition

I(f) to read as follows:

(f) After receiving the disclosures noted

above, the participant acknowledges receipt

of the documents in writing and provides

authorization to OLDE with respect to

investing in the Funds. However, for Fund

purchases occurring prior to the date this

final exemption is granted, the

acknowledgement and authorization are

given by a participant at the time of and as

part of the next proposed investment change

by such participant.

5. Section II(g) and Representation 11

OLDE states that section II(g) of the

Notice requires that OLDE ‘‘makes

available to the participant, copies of

the applicable Fund prospectuses and

disclosures regarding the fee structure

and the 12b–1 Fees.’’ OLDE points out

that a similar requirement is included in

Representation 11 of the Summary.

Although OLDE interprets the phrase

makes available to mean informing

participants of the availability of these

items and providing them to

participants upon request, it wonders

whether its assumptions are correct.

In response, the Department concurs

with the construction given by OLDE to

this phrase.

6. Section II(h)(1) and Representation 11

OLDE represents that Section II(h)(1)

of the Notice and Representation 11 of

the Summary require written

confirmation of each purchase or

redemption transaction involving shares

of a Fund. OLDE proposes that the

confirmation requirement be satisfied by

the participant’s receipt of his or her

next monthly statement detailing each

transaction. The Department concurs

with this approach.

7. Section II(h)(4) and Representation 11

OLDE represents that Section II(h)(4)

of the Notice and Representation 11 of

the Summary require that semiannual

and annual reports be provided to

participants that include financial

statements for the Funds as well as fees

paid to OLDE Discount. Although the

Funds provide semiannual and annual

reports to those participants investing in

the Funds, OLDE wishes to clarify that

it intends to list aggregate 12b–1 Fees

paid to OLDE Discount as separate

informational items on monthly

statements provided to participants.

In response, the Department concurs

with this approach because it will allow

participants to review aggregate 12b–1

Fees that are paid to OLDE Discount on

a monthly basis. This should satisfy the

requirement that OLDE Discount

provide such information both

semiannually or annually to Plan

participants. Therefore, to reflect these

changes, the Department has revised

Section II(h)(3) and (4) of the Notice to

read as follows:

(3) A monthly statement of account

specifying the net asset value of the assets in

a participant’s Account, a summary of

current year contributions, contributions

since inception, beginning and ending

account balances, summaries of

contributions, purchases and sales during the

month, a summary of the participant’s final

Account portfolio, aggregate 12b–1 Fees paid

to OLDE Discount, and, to the extent

applicable during one month per year only,

any rebated fees that are allocated to the

participant’s Account.

(4) Semiannual and annual reports

that include financial statements for the

Funds.

In addition to the above, the

Department has made corresponding

modifications to Representation 11 of

the Summary.

8. Representation 1

OLDE points out that the third

sentence of Representation 1 of the

Summary states that ‘‘The Funds have

been offered to the plan at no load

pursuant to agreements with the Fund

sponsors.’’ OLDE believes that,

consistent with the disclosures under

applicable securities laws, this sentence

should be amended to read as follows:

‘‘The Funds have been offered to the

Plan at net asset value pursuant to

agreements with the Funds’ sponsors.’’

In response to OLDE’s suggestion, the

Department has revised the third

sentence of Representation 3,

accordingly.

9. Footnote 3

OLDE states that Footnote 3 of the

Summary lists sample Funds offered

under the Plan and includes a reference

to ‘‘The American Mutual Fund.’’ OLDE

represents that there is no ‘‘American

Mutual Fund’’ offered under the Plan.

In response, the Department agrees to

make this change to the Summary.

However, it notes that the reference to

‘‘The American Mutual Fund’’ was

included in a Fund listing supplied by

OLDE to the Department.

For further information regarding the

comment letters or other matters

discussed herein, interested persons are

encouraged to obtain copies of the

exemption application file (Exemption

Application No. D–10410) pertaining to

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, NW,

Washington, DC 20210.
31532 Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Notices

2Pursuant to CFR 2510.3–2(d), the Department

has no jurisdiction with respect to the IRA under

Title I of the Act. However, there is jurisdiction

under Title II of the Act pursuant to section 4975

of the Code.

Accordingly, after consideration of

the entire record, including the

comments, the Department has

determined to grant the exemption as

modified herein.

For Further Information Contact: Ms.

Jan D. Broady of the Department,

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

a toll-free number.)

Beer Nuts, Inc. Profit Sharing Plan (the

Plan), Located in Bloomington, Illinois

[Prohibited Transaction Exemption 98–26;

Exemption Application No. D–10531]

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) by the Plan of certain limited

partnership interests (the Interests) to

Beer Nuts, Inc., a party in interest and

a disqualified person with respect to the

Plan, provided that the following

conditions were satisfied:

(a) The terms of the Sale were at least

as favorable to the Plan as those

obtainable in an arm’s length

transaction with an unrelated party;

(b) The Sale was a one-time

transaction for cash;

(c) The Plan paid no commissions or

other expenses relating to the Sale; and

(d) The Sale price was not less than

the fair market value of the Interests as

determined by a qualified, independent

appraiser.

Effective Date: The exemption is

effective as of December 30, 1996.

For a more complete statement of the

facts and representations supporting the

Department’s decision to grant this

exemption please refer to the notice of

proposed exemption published on

March 31, 1998 at 63 FR 15462.

For Further Information Contact: Mr.

James Scott Frazier of the Department,

telephone (202) 219–8891 (This is not a

toll-free number).

James E. Jordan, Sr. Individual

Retirement Account (the IRA), Located

in Phoenix, Arizona

[Prohibited Transaction Exemption 98–27;

Exemption Application No. D–10550]

Exemption

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 purchase by the IRA of a

certain promissory note issued by

unrelated parties (the Martin Note)

which is secured by a first mortgage on

certain residential property (the

Property) from the James E. Jordan

Revocable Trust Agreement (the Trust),

a disqualified person with respect to the

IRA; 2 provided that the following

conditions are met:

1. The purchase of the Martin Note

will be a one-time cash transaction;

2. The IRA will pay no commissions

or other expenses associated with the

purchase;

3. The amount paid by the IRA for the

Martin Note will be the lesser of (i)

$63,108.97, which is the current fair

market value of the Martin Note as

determined by an independent,

qualified appraiser, or (ii) the fair

market value of the Martin Note, as

determined at the time of the purchase

by an independent, qualified appraiser;

4. Both the amount paid by the IRA

for the Martin Note and the outstanding

principal balance on such Note will

involve less than 25% of the IRA’s total

assets;

5. Mr. Jordan, as the sole participant

of the IRA, will be the only individual

affected by the proposed transaction;

and

6. On the date the IRA purchases the

Martin Note from the Trust, the IRA will

be named as loss payee under the

homeowners insurance policy on the

Property.

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

22, 1998 at 63 FR 19952.

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 or

disqualified person from certain other

provisions to which the exemptions do

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 4th day of

June, 1998.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

Department of Labor.

[FR Doc. 98–15289 Filed 6–8–98; 8:45 am]

BILLING CODE 4510–29–P

NATIONAL TRANSPORTATION

SAFETY BOARD

Sunshine Act Meeting

TIME AND DATE: 9:30 a.m., Tuesday, June

16, 1998.

PLACE: NTSB Board Room, 5th Floor,

490 L’Enfant Plaza, S.W., Washington,

D.C. 20594.

STATUS: Open.

MATTERS TO BE CONSIDERED:

6927A Aviation Accident Report—

Uncontrolled Impact with Terrain, Fine

Air, Miami, Florida, August 7, 1997.

NEWS MEDIA CONTACT: Telephone: (202)

314–6100.

FOR MORE INFORMATION CONTACT: Rhonda

Underwood, (202) 314–6065.

Dated: June 5, 1998.

Rhonda Underwood,

Federal Register Liaison Officer.

[FR Doc. 98–15489 Filed 6–5–98; 2:51 pm]

BILLING CODE 7533–01–M