31500 Federal Register / Vol. 60, No. 115 / Thursday, June 15, 1995 / Notices

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.

Bank of Ashland, Inc. (the Bank)

Located in Ashland, Kentucky

[Prohibited Transaction Exemption 95–45;

Application Nos. D–09841 thru D–09843]

Exemption

The restrictions of sections 406(a),

406(b)(1) and 406(b)(2) of the Act and

the sanctions resulting from the

application of section 4975 of the Code,

by reason of section 4975(c)(1)(A)

through (E) of the Code, shall not apply

as of December 23, 1994, to the cash sale

of certain collateralized mortgage

obligations (CMOs) by six employee

benefit plans for which the Bank acts as

trustee (the Plans) to Ashland

Bankshares, Inc. (the Holding

Company), a party in interest with

respect to the Plans, provided that the

following conditions were met:

(a) Each sale was a one-time

transaction for cash;

(b) Each Plan received an amount

which was equal to the greater of (i) the

outstanding principal balance for the

CMOs owned by the Plan, plus accrued

but unpaid interest, at the time of sale,

(ii) the amortized cost for the CMOs

owned by the Plan, plus accrued but

unpaid interest, as determined by the

Bank based on the outstanding principal

balance for each CMO on the date of

sale, or (iii) the fair market value of the

CMOs owned by the Plan as determined

by an independent, qualified appraiser

at the time of the sale;

(c) The Plans did not pay any

commissions or other expenses with

respect to the sale;

(d) The Bank, as trustee of the Plans,

determined that the sale of the CMOs is

in the best interests of each Plan and

their participants and beneficiaries at

the time of the transaction;

(e) The Bank took all appropriate

actions necessary to safeguard the

interests of the Plans and their

participants and beneficiaries in

connection with the transactions; and

(f) Each Plan received a reasonable

rate of interest on the CMOs during the

period of time it held the CMOs.

EFFECTIVE DATE: This exemption is

effective as of December 23, 1994.

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

14, 1995, at 60 FR 19090.

FOR FURTHER INFORMATION CONTACT: Mr.

E.F. Williams of the Department,

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

a toll-free number.)

Simplex Time Recorder Co., Employee

Savings Plan (the Plan), Located in

Gardner, Massachusetts

[Prohibited Transaction Exemption 95–46;

Exemption Application No. D–09935]

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 (1) the

extension of credit (the Loan) to the

Plan by Simplex Time Recorder Co., a

party in interest with respect to the

Plan, with regard to a group annuity

contract (the GAC) issued by Executive

Life Insurance Company of California

(ELIC), and (2) the Plan’s potential

repayment of the Loan (the Repayment);

provided the following conditions are

satisfied:

(A) No interest or expenses are paid

by the Plan in connection with the

transaction;

(B) The Loan will be repaid only out

of amounts paid to the Plan by ELIC, its

successors, or any other responsible

third party making payment with

respect to ELIC’s obligations under the

GAC (the GAC Proceeds); and

(C) Repayment of the Loan is waived

with respect to the amount by which the

Loan exceeds GAC proceeds.

For a more complete statement of the

facts and representations supporting

this exemption, refer to the notice of

proposed exemption published on April

27, 1995 at 60 FR 20769.

FOR FURTHER INFORMATION CONTACT:

Ronald Willett of the Department,

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

a toll-free number.)

General Information

The attention of interested persons is

directed to the following:

(1) The fact that a transaction is the

subject of an exemption under section

408(a) of the Act and/or section

4975(c)(2) of the Code does not relieve

a fiduciary or other party in interest or

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 are true and complete and

accurately describe all material terms of

the transaction which is the subject of

the exemption. In the case of continuing

exemption transactions, if any of the

material facts or representations

described in the application change

after the exemption is granted, the

exemption will cease to apply as of the

date of such change. In the event of any

such change, application for a new

exemption may be made to the

Department.

Signed at Washington, D.C., this 9th day of

June, 1995.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 95–14575 Filed 6–14–95; 8:45 am]

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