Federal Register / Vol. 66, No. 107 / Monday, June 4, 2001 / Notices 30021

a relationship to such employer

described in section 3(14)(E) or (G) of

the Act will not exceed 50% of the

‘‘gross premiums and annuity

considerations received’’ by ACE USA

from all lines of insurance in that

taxable year. ACE USA has received no

premiums for the Plan insurance in the

past. ACE USA wrote $416 million in

premiums in 1999. At least 80% of ACE

USA’s premiums for 1999 were derived

from insurance (or reinsurance thereon)

sold to entities other than ACE INA and

its affiliated group. In addition, ACE

USA is substantially dependent upon

insurance customers that are unrelated

to CIGNA and its affiliates for premium

income.

7. In summary, the applicant

represents that the proposed transaction

will meet the criteria of section 408(a)

of the Act because: (a) Plan participants

and beneficiaries are afforded insurance

protection by CIGNA, an ‘‘A+’’ rated

group insurer, at competitive market

rates arrived at through arm’s-length

negotiations; (b) ACE USA is a sound,

viable insurance company which does a

substantial amount of public business

outside its affiliated group of

companies; and (c) each of the

protections provided to the Plan and its

participants and beneficiaries by PTE

79–41 will be met under the proposed

reinsurance transaction.

For Further Information Contact: Gary

H. Lefkowitz of the Department,

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

a toll-free number.)

General Informaiton

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 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

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 30th day of

May, 2001.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 01–13905 Filed 6–1–01; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

[Exemption Application No. D–10918, et al.]

Prohibited Transaction Exemption

2001–19; Grant of Individual

Exemptions; Texas Instruments

Employees Pension Plan (the Plan) et

al.

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

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.

Texas Instruments Employees Pension

Plan (the Plan) Located in Dallas, Texas

[Prohibited Transaction Exemption No.

2001–19; Application No. D–10918]

Exemption

The restrictions of sections 406(a),

406(b)(1), 406(b)(2), 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

to the Sale (the Sale) by the Plan to

Texas Instruments, Inc. (the Employer)

of a parcel of improved real property

(the Property) located in Dallas, Texas.

This exemption is conditioned upon the

adherence to the material facts and

representations described herein and

upon the satisfaction of the following

requirements:

(a) All terms and conditions of the

Sale are at least as favorable to the Plan

as those which the Plan could obtain in

30022 Federal Register / Vol. 66, No. 107 / Monday, June 4, 2001 / Notices

1Because Tim H. Shoecraft is the sole

shareholder of Shoecraft and Associates and he is

the only participant in the Plan, there is no

jurisdiction under Title I of the Employee

Retirement Income Security Act of 1974 (the Act)

pursuant to 29 CFR 2510.3–3(b). However, there is

jurisdiction under Title II of the Act pursuant to

section 4975 of the Code.

an arm’s-length transaction with an

unrelated party;

(b) The Sales price is the greater of

$9,400,000 or the fair market value of

the Property as of the date of the Sale;

(c) The fair market value of the

Property has been determined by an

independent, qualified appraiser;

(d) The Sale is a one-time transaction

for cash; and

(e) The Plan does not pay any

commissions, costs or other expenses in

connection with the Sale.

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

February 15, 2001 at 66 FR 10527.

Written Comments

The Department received three

comments from interested persons on

the proposed exemption. The

Department forwarded copies of the

comments to the applicant and

requested that the subtrustee (Bank of

America) respond in writing to the

various concerns raised by the

commentators. A description of the

comments and the Bank of America’s

responses are summarized below.

One commentator urged that the

exemption not be granted because he

believed that the Property had a better

chance of appreciation than the cash

equivalent and that the increase in value

was not a fair appraisal.

Bank of America, in response

represents the following: It has

determined that the Sale of the Property

to the Employer is prudent under ERISA

and is in the best interest of the Plan

participants and beneficiaries based, in

part, on its determination that market

values for comparable properties in the

Dallas, Texas area continue to be at a

record high and that the current real

estate market presents a favorable

selling opportunity to the Plan.

Although currently selling at record

highs, real estate values can decline for

a number of reasons, such as downturns

in the economy, environmental

contamination, functional obsolescence,

and changes in use and/or the growth

patterns surrounding a property’s

location. The improvements,

constructed in 1981, are now

approximately 20 years old and have a

remaining economic life of 27 years.

The building is well maintained;

however, the structure is aging and at

some point it may be less attractive in

the market place from the standpoint of

physical plant and functionality. The

commentator’s objection to only a 50%

increase in value over the 22 years of

the lease does not recognize the actual

yield that has been produced by the

annual rental income in addition to the

sales price proceeds.

Two commentators took issue with

the selection of the appraiser for the

Property, and the subsequent

evaluation, specifically requesting

multiple appraisals and questioning

whether the appraiser specialized in

commercial real estate. Bank of America

notes that as the subtrustee of the Plan,

Bank of America has the responsibility

to make the good faith fiduciary

determination that the amount received

by the Plan upon the Sale is no less than

adequate consideration, as defined in

ERISA § 3(18). In making the good faith

determination that the Plan will receive

adequate consideration, Bank of

America, as a fiduciary, has relied on

the appraisal report of the independent

appraiser, which will be updated at the

closing date, to insure that the amount

received is no less than the then fair

market value. Furthermore, Bank of

America represents the Property has

been appraised by an independent

appraiser, the Pyles Whatley

Corporation, a respected commercial

real estate appraisal firm. It has a

national appraisal practice and has

appraised properties of large industrial

sites in more than 25 states in 1999 and

2000. The appointment of the appraiser

was made properly by Bank of America

rather than other Plan fiduciaries since

the appraisal report will be used by

Bank of America in complying with its

fiduciary responsibility with respect to

the Sale.

The appraisal follows standard

methodologies including the use of

values of comparable properties. Bank

of America has carefully reviewed the

appraisal and other information that it

has available to it and believes that the

appraisal correctly determines the fair

market value of the Property. In making

this good faith fiduciary determination

to sell the Property at this value, after

having made a prudent review of the

valuation report and the relevant

circumstances at the time of the

valuation report, Bank of America does

not believe that there is any reason to

require multiple appraisals to reach a

valuation for the Property.

Accordingly, after giving full

consideration to the entire record,

including the comments by the

commentators, and the responses of the

applicant, the Department has

determined to grant the exemption as

proposed. In this regard, the comments

submitted to the Department have been

included as part of the public record of

the exemption application. The

complete application file, including all

supplemental submissions received by

the Department, is made available for

public inspection in the Public

Documents Room of the Pension and

Welfare Benefits Administration, Room

N–1513, U.S. Department of Labor, 200

Constitution Ave. NW, Washington DC

20210.

FOR FURTHER INFORMATION CONTACT:

Khalif Ford of the Department,

telephone (202) 219–8883 (this is not a

toll-free number).

THS Profit Sharing Plan (the Plan)

Located in Bedford Hills, New York

[Prohibited Transaction Exemption No.

2001–20; Application No. D–10921]

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 sale (the Sale) by the Plan of two

life insurance policies (the Policies)

which insure Tim H. Shoecraft, the sole

participant (the Participant),1 to the

Shoecraft Family Trust dated October 9,

1991 (the Trust), which is a disqualified

party with respect to the Plan under

section 4975(e)(2) of the Code, provided

that the following conditions are met:

(a) The Participant is the insured

under the contract;

(b) Prior to the Sale, the Plan will

afford the insured notice of the Sale and

the opportunity to purchase the

Policies;

(c) The Sale will be for full and

adequate consideration, based upon the

cash surrender value of the Policies at

the time of the transaction;

(d) The Plan is authorized to purchase

and own life insurance;

(e) The amount received by the Plan

as consideration for the Sale is at least

equal to the amount necessary to put the

Plan in the same cash position as it

would have been in had it retained the

contract, surrendered it, and made any

distribution owing to the Participant of

his vested interest under the Plan; and

(f) The Plan is not required to pay any

commissions, costs or other expenses in

connection with the Sale.

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

16, 2001 at 66 FR 19533.

FOR FURTHER INFORMATION CONTACT:

Khalif Ford of the Department,

Federal Register / Vol. 66, No. 107 / Monday, June 4, 2001 / Notices 30023

telephone (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

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, DC, this 30th day of

May, 2001.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

U.S. Department of Labor.

[FR Doc. 01–13906 Filed 6–1–01; 8:45am]

BILLING CODE 4510–29–P

FEDERAL MINE SAFETY AND HEALTH

REVIEW COMMISSION

Changes in Meeting; Federal Register

Citation of Previous Announcement 66

FR 22267

TIME AND DATE: 10 a.m., Wednesday,

May 30, 2001.

PLACE: Room 6005, 6th Floor, 1730 K

Street, NW., Washington, DC.

STATUS: Closed in Part (Pursuant to 5

U.S.C. 552b(c)(10)).

CHANGES IN MEETING: Eagle Energy, Inc.,

Docket No. WEVA 98–123. The

Commission has granted a motion by

Eagle Energy, Inc., to exclude from

consideration at the May 30, 2001,

meeting the issue of whether the judge’s

frequent questioning of witnesses

improperly interfered with the

operator’s presentation of its case and

reflected bias.

Because agency business so requires,

the Commission has unanimously voted

to change the status of the meeting from

‘‘closed in part’’ to ‘‘open in its

entirety,’’ pursuant to 5 U.S.C.

552b(c)(10).

No earlier announcement of these

changes was possible.

CONTACT PERSON FOR MORE INFO: Jean

Ellen (202) 653–5629 / (202) 708–9300

for TDD Relay / 1–800–877–8339 for toll

free.

Jean H. Ellen,

Chief Docket Clerk.

[FR Doc. 01–14089 Filed 5–31–01; 12:56 pm]

BILLING CODE 6735–01–M

THE NATIONAL FOUNDATION ON THE

ARTS AND THE HUMANITIES

Meetings of Humanities Panel

AGENCY: The National Endowment for

the Humanities.

ACTION: Notice of meetings.

SUMMARY: Pursuant to the provisions of

the Federal Advisory Committee Act

(Pub. L. 92–463, as amended), notice is

hereby given that the following

meetings of the Humanities Panel will

be held at the Old Post Office, 1100

Pennsylvania Avenue, NW.,

Washington, DC 20506.

FOR FURTHER INFORMATION CONTACT:

Laura S. Nelson, Advisory Committee

Management Officer, National

Endowment for the Humanities,

Washington, DC 20506; telephone (202)

606–8322. Hearing-impaired individuals

are advised that information on this

matter may be obtained by contacting

the Endowment’s TDD terminal on (202)

606–8282.

SUPPLEMENTARY INFORMATION: The

proposed meetings are for the purpose

of panel review, discussion, evaluation

and recommendation on applications

for financial assistance under the

National Foundation on the Arts and the

Humanities Act of 1965, as amended,

including discussion of information

given in confidence to the agency by the

grant applicants. Because the proposed

meetings will consider information that

is likely to disclose trade secrets and

commercial or financial information

obtained from a person and privileged

or confidential and/or information of a

personal nature the disclosure of which

would constitute a clearly unwarranted

invasion of personal privacy, pursuant

to authority granted me by the

Chairman’s Delegation of Authority to

Close Advisory Committee meetings,

dated July 19, 1993, I have determined

that these meetings will be closed to the

public pursuant to subsections (c)(4)

and (6) of section 552b of Title 5, United

States Code.

Date: June 22, 2001.

Time: 8:30 a.m. to 6:00 p.m.

Room: 415.

Program: This meeting will review

applications for History, Conservation,

Other Public Programming

Organizations, submitted to the Office of

Challenge Grants at the May 1, 2001

deadline.

Date: June 28, 2001.

Time: 8:30 a.m. to 6:00 p.m.

Room: 415.

Program: This meeting will review

applications for Research Libraries,

Associations, Institutes, submitted to

the Office of Challenge Grants at the

May 1, 2001 deadline.

Laura S. Nelson,

Advisory Committee Management Officer.

[FR Doc. 01–13976 Filed 6–1–01; 8:45 am]

BILLING CODE 7536–01–M

NATIONAL SCIENCE FOUNDATION

Advisory Committee for Small

Business Industrial Innovation; Notice

of Meeting

In accordance with the Federal

Advisory Committee Act (Pub. L. 92–

463, as amended), the National Science

Foundation announces the following

meeting:

Name: Advisory Committee for Small

Business Industrial Innovation (SBIR)/Small

Business Technology Transfer (STTR)—(61).

Date/Time: June 19–20, 2001, 8:30 am–5:00

pm.

Type of Meeting: Open.

Place: Room 120, National Science

Foundation, 4201 Wilson Boulevard,

Arlington, VA.

Contact Person: Dr. Joseph Hennessey,

Acting Director, Industrial Innovation, (703)

292–7069, National Science Foundation,

4201 Wilson Boulevard, Arlington, VA

22230.

Minutes: May be obtained from the contact

person listed above.

Purpose of Committee: To provide advice

and recommendations concerning research

programs pertaining to the small business

community.

Agenda: June 19, 2001, Room 120

8:30 am—Introductions