17586 Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices

1Section I.A. provides no relief from sections

406(a)(1)(E), 406(a)(2) and 407 for any person

rendering investment advice to an Excluded Plan

within the meaning of section 3(21)(A)(ii) and

regulation 29 CFR 2510.3–21(c).

2 For purposes of this exemption, each plan

participating in a commingled fund (such as a bank

collective trust fund or insurance company pooled

separate account) shall be considered to own the

same proportionate undivided interest in each asset

of the commingled fund as its proportionate interest

in the total assets of the commingled fund as

calculated on the most recent preceding valuation

date of the fund.

3 In the case of a private placement memorandum,

such memorandum must contain substantially the

same information that would be disclosed in a

Pension and Welfare Benefits

Administration

[Prohibited Transaction Exemption 95–26;

Exemption Application No. D–9741, et al.]

Grant of Individual Exemptions; Dillon,

Read & Co. Inc., 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, D.C. 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.

Dillon, Read & Co. Inc. (Dillon) Located

in New York, New York

[Prohibited Transaction Exemption 95–26;

Application No. D–9741]

Exemption

I. Transactions

A. The restrictions of sections 406(a)

and 407(a) of the Act and the taxes

imposed by section 4975(a) and (b) of

the Code by reason of section

4975(c)(1)(A) through (D) of the Code

shall not apply to the following

transactions involving trusts and

certificates evidencing interests therein:

(1) The direct or indirect sale,

exchange or transfer of certificates in the

initial issuance of certificates between

the sponsor or underwriter and an

employee benefit plan when the

sponsor, servicer, trustee or insurer of a

trust, the underwriter of the certificates

representing an interest in the trust, or

an obligor is a party in interest with

respect to such plan;

(2) The direct or indirect acquisition

or disposition of certificates by a plan in

the secondary market for such

certificates; and

(3) The continued holding of

certificates acquired by a plan pursuant

to subsection I.A.(1) or (2).

Notwithstanding the foregoing, section

I.A. does not provide an exemption from

the restrictions of sections 406(a)(1)(E),

406(a)(2) and 407 for the acquisition or

holding of a certificate on behalf of an

Excluded Plan by any person who has

discretionary authority or renders

investment advice with respect to the

assets of that Excluded Plan. 1

B. The restrictions of sections

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

the taxes imposed by section 4975(a)

and (b) of the Code by reason of section

4975(c)(1)(E) of the Code shall not apply

to:

(1) The direct or indirect sale,

exchange or transfer of certificates in the

initial issuance of certificates between

the sponsor or underwriter and a plan

when the person who has discretionary

authority or renders investment advice

with respect to the investment of plan

assets in the certificates is (a) an obligor

with respect to 5 percent or less of the

fair market value of obligations or assets

contained in the trust, or (b) an affiliate

of a person described in (a); if:

(i) The plan is not an Excluded Plan;

(ii) Solely in the case of an acquisition

of certificates in connection with the

initial issuance of the certificates, at

least 50 percent of each class of

certificates in which plans have

invested is acquired by persons

independent of the members of the

Restricted Group and at least 50 percent

of the aggregate interest in the trust is

acquired by persons independent of the

Restricted Group;

(iii) A plan’s investment in each class

of certificates does not exceed 25

percent of all of the certificates of that

class outstanding at the time of the

acquisition; and

(iv) Immediately after the acquisition

of the certificates, no more than 25

percent of the assets of a plan with

respect to which the person has

discretionary authority or renders

investment advice are invested in

certificates representing an interest in a

trust containing assets sold or serviced

by the same entity. 2 For purposes of

this paragraph B.(1)(iv) only, an entity

will not be considered to service assets

contained in a trust if it is merely a

subservicer of that trust;

(2) The direct or indirect acquisition

or disposition of certificates by a plan in

the secondary market for such

certificates, provided that the conditions

set forth in paragraphs B.(1)(i), (iii) and

(iv) are met; and

(3) The continued holding of

certificates acquired by a plan pursuant

to subsection I.B.(1) or (2).

C. The restrictions of sections 406(a),

406(b) and 407(a) of the Act, and the

taxes imposed by section 4975(a) and (b)

of the Code by reason of section 4975(c)

of the Code, shall not apply to

transactions in connection with the

servicing, management and operation of

a trust; provided:

(1) Such transactions are carried out

in accordance with the terms of a

binding pooling and servicing

arrangement; and

(2) The pooling and servicing

agreement is provided to, or described

in all material respects in the prospectus

or private placement memorandum

provided to, investing plans before they

purchase certificates issued by the

trust. 3 Notwithstanding the foregoing,
Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices 17587

prospectus if the offering of the certificates were

made in a registered public offering under the

Securities Act of 1933. In the Department’s view,

the private placement memorandum must contain

sufficient information to permit plan fiduciaries to

make informed investment decisions.

4The Department wishes to take the opportunity

to clarify its view that the definition of Trust

contained in III.B.(1)(a) through (e) includes a twotier trust structure under which certificates issued

by the first trust, which contains a pool of

receivables described above, are transferred to a

second trust which issues certificates that are sold

to plans. However, the Department is of the further

view that, since the exemption provides relief for

the direct or indirect acquisition or disposition of

certificates that are not subordinated, no relief

would be available if the certificates held by the

second trust were subordinated to the rights and

Continued

section I.C. does not provide an

exemption from the restrictions of

section 406(b) of the Act or from the

taxes imposed by reason of section

4975(c) of the Code for the receipt of a

fee by a servicer of the trust from a

person other than the trustee or sponsor,

unless such fee constitutes a ‘‘qualified

administrative fee’’ as defined in section

III.S.

D. The restrictions of sections 406(a)

and 407(a) of the Act, and the taxes

imposed by sections 4975(a) and (b) of

the Code by reason of sections

4975(c)(1)(A) through (D) of the Code,

shall not apply to any transactions to

which those restrictions or taxes would

otherwise apply merely because a

person is deemed to be a party in

interest or disqualified person

(including a fiduciary) with respect to a

plan by virtue of providing services to

the plan (or by virtue of having a

relationship to such service provider

described in section 3(14)(F), (G), (H) or

(I) of the Act or section 4975(e)(2)(F),

(G), (H) or (I) of the Code), solely

because of the plan’s ownership of

certificates.

II. General Conditions

A. The relief provided under Part I is

available only if the following

conditions are met:

(1) The acquisition of certificates by a

plan is on terms (including the

certificate price) that are at least as

favorable to the plan as they would be

in an arm’s length transaction with an

unrelated party;

(2) The rights and interests evidenced

by the certificates are not subordinated

to the rights and interests evidenced by

other certificates of the same trust;

(3) The certificates acquired by the

plan have received a rating at the time

of such acquisition that is in one of the

three highest generic rating categories

from either Standard & Poor’s

Corporation (S&P’s), Moody’s Investors

Service, Inc. (Moody’s), Duff & Phelps

Inc. (D&P) or Fitch Investors Service,

Inc. (Fitch);

(4) The trustee is not an affiliate of

any member of the Restricted Group.

However, the trustee shall not be

considered to be an affiliate of a servicer

solely because the trustee has succeeded

to the rights and responsibilities of the

servicer pursuant to the terms of a

pooling and servicing agreement

providing for such succession upon the

occurrence of one or more events of

default by the servicer;

(5) The sum of all payments made to

and retained by the underwriters in

connection with the distribution or

placement of certificates represents not

more than reasonable compensation for

underwriting or placing the certificates;

the sum of all payments made to and

retained by the sponsor pursuant to the

assignment of obligations (or interests

therein) to the trust represents not more

than the fair market value of such

obligations (or interests); and the sum of

all payments made to and retained by

the servicer represents not more than

reasonable compensation for the

servicer’s services under the pooling

and servicing agreement and

reimbursement of the servicer’s

reasonable expenses in connection

therewith; and

(6) The plan investing in such

certificates is an ‘‘accredited investor’’

as defined in Rule 501(a)(1) of

Regulation D of the Securities and

Exchange Commission under the

Securities Act of 1933.

B. Neither any underwriter, sponsor,

trustee, servicer, insurer, or any obligor,

unless it or any of its affiliates has

discretionary authority or renders

investment advice with respect to the

plan assets used by a plan to acquire

certificates, shall be denied the relief

provided under Part I, if the provision

of subsection II.A.(6) above is not

satisfied with respect to acquisition or

holding by a plan of such certificates,

provided that (1) such condition is

disclosed in the prospectus or private

placement memorandum; and (2) in the

case of a private placement of

certificates, the trustee obtains a

representation from each initial

purchaser which is a plan that it is in

compliance with such condition, and

obtains a covenant from each initial

purchaser to the effect that, so long as

such initial purchaser (or any transferee

of such initial purchaser’s certificates) is

required to obtain from its transferee a

representation regarding compliance

with the Securities Act of 1933, any

such transferees will be required to

make a written representation regarding

compliance with the condition set forth

in subsection II.A.(6) above.

III. Definitions

For purposes of this exemption:

A. ‘‘Certificate’’ means:

(1) a certificate

(a) that represents a beneficial

ownership interest in the assets of a

trust; and

(b) that entitles the holder to passthrough payments of principal, interest,

and/or other payments made with

respect to the assets of such trust; or

(2) a certificate denominated as a debt

instrument—

(a) that represents an interest in a Real

Estate Mortgage Investment Conduit

(REMIC) within the meaning of section

860D(a) of the Internal Revenue Code of

1986; and

(b) that is issued by and is an

obligation of a trust; with respect to

certificates defined in (1) and (2) for

which Dillon or any of its affiliates is

either (i) the sole underwriter or the

manager or co-manager of the

underwriting syndicate, or (ii) a selling

or placement agent. For purposes of this

exemption, references to ‘‘certificates

representing an interest in a trust’’

include certificates denominated as debt

which are issued by a trust.

B. ‘‘Trust’’ means an investment pool,

the corpus of which is held in trust and

consists solely of:

(1) either

(a) secured consumer receivables that

bear interest or are purchased at a

discount (including, but not limited to,

home equity loans and obligations

secured by shares issued by a

cooperative housing association);

(b) secured credit instruments that

bear interest or are purchased at a

discount in transactions by or between

business entities (including, but not

limited to, qualified equipment notes

secured by leases, as defined in section

III.T);

(c) obligations that bear interest or are

purchased at a discount and which are

secured by single-family residential,

multi-family residential and commercial

real property (including obligations

secured by leasehold interests on

commercial real property);

(d) obligations that bear interest or are

purchased at a discount and which are

secured by motor vehicles or

equipment, or qualified motor vehicle

leases (as defined in section III.U);

(e) ‘‘guaranteed governmental

mortgage pool certificates,’’ as defined

in 29 CFR section 2510.3–101(i)(2);

(f) fractional undivided interests in

any of the obligations described in

clauses (a)–(e) of this section B.(1); 4
17588 Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices

interests evidenced by other certificates issued by

the first trust.

(2) property which had secured any of

the obligations described in subsection

B.(1);

(3) undistributed cash or temporary

investments made therewith maturing

no later than the next date on which

distributions are to made to

certificateholders; and

(4) rights of the trustee under the

pooling and servicing agreement, and

rights under any insurance policies,

third-party guarantees, contracts of

suretyship and other credit support

arrangements with respect to any

obligations described in subsection

B.(1). Notwithstanding the foregoing,

the term ‘‘trust’’ does not include any

investment pool unless: (i) The

investment pool consists only of assets

of the type which have been included in

other investment pools, (ii) certificates

evidencing interests in such other

investment pools have been rated in one

of the three highest generic rating

categories by S&P’s, Moody’s, D&P, or

Fitch for at least one year prior to the

plan’s acquisition of certificates

pursuant to this exemption, and (iii)

certificates evidencing interests in such

other investment pools have been

purchased by investors other than plans

for at least one year prior to the plan’s

acquisition of certificates pursuant to

this exemption.

C. ‘‘Underwriter’’ means:

(1) Dillon;

(2) any person directly or indirectly,

through one or more intermediaries,

controlling, controlled by or under

common control with Dillon; or

(3) any member of an underwriting

syndicate or selling group of which

Dillon or a person described in (2) is a

manager or co-manager with respect to

the certificates.

D. ‘‘Sponsor’’ means the entity that

organizes a trust by depositing

obligations therein in exchange for

certificates.

E. ‘‘Master Servicer’’ means the entity

that is a party to the pooling and

servicing agreement relating to trust

assets and is fully responsible for

servicing, directly or through

subservicers, the assets of the trust.

F. ‘‘Subservicer’’ means an entity

which, under the supervision of and on

behalf of the master servicer, services

assets contained in the trust, but is not

a party to the pooling and servicing

agreement.

G. ‘‘Servicer’’ means any entity which

services assets contained in the trust,

including the master servicer and any

subservicer.

H. ‘‘Trustee’’ means the trustee of the

trust, and in the case of certificates

which are denominated as debt

instruments, also means the trustee of

the indenture trust.

I. ‘‘Insurer’’ means the insurer or

guarantor of, or provider of other credit

support for, a trust. Notwithstanding the

foregoing, a person is not an insurer

solely because it holds securities

representing an interest in a trust which

are of a class subordinated to certificates

representing an interest in the same

trust.

J. ‘‘Obligor’’ means any person, other

than the insurer, that is obligated to

make payments with respect to any

obligation or receivable included in the

trust. Where a trust contains qualified

motor vehicle leases or qualified

equipment notes secured by leases,

‘‘obligor’’ shall also include any owner

of property subject to any lease included

in the trust, or subject to any lease

securing an obligation included in the

trust.

K. ‘‘Excluded Plan’’ means any plan

with respect to which any member of

the Restricted Group is a ‘‘plan sponsor’’

within the meaning of section 3(16)(B)

of the Act.

L. ‘‘Restricted Group’’ with respect to

a class of certificates means:

(1) Each underwriter;

(2) Each insurer;

(3) The sponsor;

(4) The trustee;

(5) Each servicer;

(6) Any obligor with respect to

obligations or receivables included in

the trust constituting more than 5

percent of the aggregate unamortized

principal balance of the assets in the

trust, determined on the date of the

initial issuance of certificates by the

trust; or

(7) Any affiliate of a person described

in (1)–(6) above.

M. ‘‘Affiliate’’ of another person

includes:

(1) Any person directly or indirectly,

through one or more intermediaries,

controlling, controlled by, or under

common control with such other

person;

(2) Any officer, director, partner,

employee, relative (as defined in section

3(15) of the Act), a brother, a sister, or

a spouse of a brother or sister of such

other person; and

(3) Any corporation or partnership of

which such other person is an officer,

director or partner.

N. ‘‘Control’’ means the power to

exercise a controlling influence over the

management or policies of a person

other than an individual.

O. A person will be ‘‘independent’’ of

another person only if:

(1) such person is not an affiliate of

that other person; and

(2) The other person, or an affiliate

thereof, is not a fiduciary who has

investment management authority or

renders investment advice with respect

to any assets of such person.

P. ‘‘Sale’’ includes the entrance into a

forward delivery commitment (as

defined in section Q below), provided:

(1) The terms of the forward delivery

commitment (including any fee paid to

the investing plan) are no less favorable

to the plan than they would be in an

arm’s length transaction with an

unrelated party;

(2) The prospectus or private

placement memorandum is provided to

an investing plan prior to the time the

plan enters into the forward delivery

commitment; and

(3) At the time of the delivery, all

conditions of this exemption applicable

to sales are met.

Q. ‘‘Forward delivery commitment’’

means a contract for the purchase or

sale of one or more certificates to be

delivered at an agreed future settlement

date. The term includes both mandatory

contracts (which contemplate obligatory

delivery and acceptance of the

certificates) and optional contracts

(which give one party the right but not

the obligation to deliver certificates to,

or demand delivery of certificates from,

the other party).

R. ‘‘Reasonable compensation’’ has

the same meaning as that term is

defined in 29 CFR section 2550.408c–2.

S. ‘‘Qualified Administrative Fee’’

means a fee which meets the following

criteria:

(1) The fee is triggered by an act or

failure to act by the obligor other than

the normal timely payment of amounts

owing in respect of the obligations;

(2) The servicer may not charge the

fee absent the act or failure to act

referred to in (1);

(3) The ability to charge the fee, the

circumstances in which the fee may be

charged, and an explanation of how the

fee is calculated are set forth in the

pooling and servicing agreement; and

(4) The amount paid to investors in

the trust will not be reduced by the

amount of any such fee waived by the

servicer.

T. ‘‘Qualified Equipment Note

Secured By A Lease’’ means an

equipment note:

(a) Which is secured by equipment

which is leased;

(b) Which is secured by the obligation

of the lessee to pay rent under the

equipment lease; and

(c) With respect to which the trust’s

security interest in the equipment is at

least as protective of the rights of the

trust as the trust would have if the
Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices 17589

equipment note were secured only by

the equipment and not the lease.

U. ‘‘Qualified Motor Vehicle Lease’’

means a lease of a motor vehicle where:

(a) The trust holds a security interest

in the lease;

(b) The trust holds a security interest

in the leased motor vehicle; and

(c) The trust’s security interest in the

leased motor vehicle is at least as

protective of the trust’s rights as the

trust would receive under a motor

vehicle installment loan contract.

V. ‘‘Pooling and Servicing

Agreement’’ means the agreement or

agreements among a sponsor, a servicer

and the trustee establishing a trust. In

the case of certificates which are

denominated as debt instruments,

‘‘Pooling and Servicing Agreement’’ also

includes the indenture entered into by

the trustee of the trust issuing such

certificates and the indenture trustee.

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

January 30, 1995 at 60 FR 5720.

FOR FURTHER INFORMATION CONTACT:

Virginia J. Miller of the Department,

telephone (202) 219–8971. (This is not

a toll-free number.)

PACCAR Inc Savings Investment Plan

(the Plan) Located in Bellevue,

Washington

[Prohibited Transaction Exemption 95–27;

Exemption Application No. D–09855]

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

guarantee by PACCAR Inc (the

Employer), the sponsor of the Plan, of

the Plan’s investment in a guaranteed

investment contract (the GIC) issued by

Confederation Life Insurance Company

(Confederation Life), including the

potential extensions of credit to the Plan

by the Employer (the Advances)

pursuant to the Guarantee; and (2) the

potential repayment of the Advances

(the Repayments); provided that the

following conditions are satisfied:

(A) All terms and conditions of the

transactions are no less favorable to the

Plan than those which the Plan could

obtain in an arm’s length transaction

with an unrelated party;

(B) The Repayments are made only

from GIC Proceeds, defined as the

amounts actually received by the Plan

(1) From Confederation Life or any

other entity making payment with

respect to Confederation Life’s

obligations under the terms of the GIC,

or (2) from the sale or transfer of the GIC

to unrelated third parties;

(C) The Repayments will be made

only after the Plan has recovered,

through the Advances plus GIC

Proceeds, the amount guaranteed by the

Employer with respect to the GIC; and

(D) To the extent the Advances exceed

GIC Proceeds, Repayment of the

difference will be waived.

For a more complete statement of the

facts and representations supporting

this exemption, refer to the notice of

proposed exemption published on

February 10, 1995 at 60 FR 8088.

WRITTEN COMMENTS: The Department

received one written comment and no

requests for a hearing. The comment

was submitted by Plan participants who

expressed support for the proposed

exemption. After careful consideration

of the entire record, the Department has

determined to grant the exemption.

FOR FURTHER INFORMATION CONTACT:

Ronald Willett of the Department,

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

a toll-free number.)

Manke Lumber Company, Inc. Profit

Sharing Plan (the Plan) Located in

Tacoma, Washington

[Prohibited Transaction Exemption 95–28;

Application No. D–09897]

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

proposed cash sale (the Sale) by the

Plan of certain real property (the

Property) to Manke Family Resources,

Limited Partnership.

This exemption is conditioned upon

the following requirements: (1) All

terms and conditions of the Sale are at

least as favorable to the Plan as those

obtainable in an arm’s length

transaction with an unrelated party; (2)

the Sale is a one-time cash transaction;

(3) the Plan is not required to pay any

commissions, costs or other expenses in

connection with the Sale; and (4) the

Plan receives a sales price equal to the

greater of: (a) the fair market value of the

Property on the date of the Sale; or (b)

the Plan’s aggregate costs of acquiring

and holding 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

February 10, 1995 at 60 FR 8090.

FOR FURTHER INFORMATION CONTACT:

Kathryn Parr of the Department,

telephone (202) 219–8971. (This is not

a toll-free number.)

Virginia Fibre Corporation Employees

Retirement Savings Plan (the Plan)

Located in Amherst, Virginia

[Prohibited Transaction Exemption 95–29;

Exemption Application No. D–09901]

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, effective

February 1, 1995, to (1) the purchase

from the Plan (the Purchase) by the

Virginia Fibre Corporation (the

Employer), the sponsor of the Plan, of a

guaranteed investment contract (the

GIC) issued by the Confederation Life

Insurance Company (Confederation

Life); or, in the alternative, (2) the

interest-free loan to the Plan by the

Employer (the Loan) with respect to the

GIC, including repayment of the Loan;

provided that the following conditions

are satisfied:

(A) All terms and conditions of the

transactions are at least as favorable to

the Plan as those which the Plan could

obtain in an arm’s-length transaction

with an unrelated party;

(B) In the event of the Purchase, the

Plan receives a cash purchase price

which is no less than the greater of (1)

the fair market value of the GIC as of the

sale date, or (2) the GIC’s Maturity

Payment, as described in the Notice of

Proposed Exemption;

(C) In the event of the Loan: (1) The

Loan is in the amount of the GIC’s

Maturity Payment, as described in the

Notice of Proposed Exemption; (2) the

Loan is repaid only from GIC Proceeds,

defined as the amounts paid by or on

behalf of Confederation Life or any other

entity making payment with respect to

Confederation Life’s obligations under

the GIC; (3) the Plan incurs no expenses

or interest with respect to the Loan; and

(4) repayment of the Loan is waived to

the extent the Loan exceeds the GIC

Proceeds.

EFFECTIVE DATE: This exemption is

effective as of February 1, 1995.

For a more complete statement of the

facts and representations supporting

this exemption, refer to the notice of

proposed exemption published on

February 10, 1995 at 60 FR 8091.

FOR FURTHER INFORMATION CONTACT:

Ronald Willett of the Department,

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

a toll-free number.)
17590 Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Notices

Employee Benefit Capital Preservation

Fund of Central Fidelity National Bank

(the Fund) Located in Richmond,

Virginia

[Prohibited Transaction Exemption 95–30;

Exemption Application No. D–09905]

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 past sale by

the Fund of three Guaranteed Income

Contracts (the GICs) of Confederation

Life Insurance Company to Central

Fidelity Bank, Inc., a party in interest

with respect to the Fund, provided the

following conditions are satisfied: (1)

the sale was a one-time transaction for

cash; (2) the Fund received no less than

the fair market value of the GICs at the

time of the transaction; (3) the purchase

price was not less than the GICs’

accumulated book values (defined as

total deposits plus interest accrued but

unpaid at the GICs’ stated rates of

interest through the date of sale, less

withdrawals) as of the date of 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

January 30, 1995 at 60 FR 5730.

EFFECTIVE DATE: This exemption is

effective on December 29, 1994.

FOR FURTHER INFORMATION CONTACT: Gary

H. Lefkowitz 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 accurately describes all

material terms of the transaction which

is the subject of the exemption.

Signed at Washington, D.C., this 31st day

of March, 1995.

Ivan Strasfeld,

Director of Exemption Determinations,

Pension and Welfare Benefits Administration,

Department of Labor.

[FR Doc. 95–8394 Filed 4–5–95; 8:45 am]

BILLING CODE 4510–29–P

NUCLEAR REGULATORY

COMMISSION

[Docket No. 50–374]

Commonwealth Edison Co.; Notice of

Consideration of Issuance of

Amendment to Facility Operating

License, Proposed No Significant

Hazards Consideration Determination,

and Opportunity for a Hearing

The U.S. Nuclear Regulatory

Commission (the Commission) is

considering issuance of an amendment

to Facility Operating License No. NPF–

18, issued to Commonwealth Edison

Company (the licensee), for operation of

the LaSalle County Station, Unit 2,

located in LaSalle County, Illinois.

The proposed amendment would

revise the safety/relief valve (SRV)

safety function lift setting allowable

tolerance band from (¥3% to +1%) to

(¥3% to +3%) and include as-left SRV

lift setting tolerances of (¥1% to +1%).

Before issuance of the proposed

license amendment, the Commission

will have made findings required by the

Atomic Energy Act of 1954, as amended

(the Act) and the Commission’s

regulations.

Section 50.91(a)(6) of Title 10 of the

Code of Federal Regulations specifies

that the Commission may, where

exigent circumstances exist, allow less

than the 30 days for public comment.

Exigent circumstances have been found

to exist for this proposed amendment.

On March 18, 1995, with LaSalle Unit

2 in a shutdown condition for the

current refueling outage, the licensee

learned that two of the six SRVs tested

had lift settings that were not within the

current tolerance band allowed by the

technical specifications. This resulted in

three additional SRVs being tested and

two additional SRVs found to lift at

pressures slightly outside the existing

tolerance band. The remaining nine

SRVs are required to be tested based on

the current technical specifications.

This testing would involve a significant

financial cost, the collection of

approximately 11 person-rem of

radiation exposure by plant workers,

and a delay in the restart of Unit 2. The

history of the safety relief value testing

at LaSalle is such that the licensee did

not anticipate the immediate need for an

increased tolerance band. However, as

part of a longer range plan to reduce the

number of SRVs and increase the

allowable lift setting tolerances, the

licensee had performed much of the

analyses required to justify the proposed

amendment request. On March 27, 1995,

the licensee decided to expedite the

SRV lift setting technical specification

change for LaSalle Unit 2. The licensee

completed the review and submitted the

request on March 31, 1995. To avoid the

radiation exposures and restart delays

associated with testing the remaining

nine SRVs, the proposed amendment

would need to be issued before April 22,

1995, and therefore the request does not

afford the normal 30-day comment

period.

Pursuant to 10 CFR 50.91(a)(6) for

amendments to be granted under

exigent circumstances, the NRC staff

must determine that the amendment

request involves no significant hazards

consideration. Under the Commission’s

regulations in 10 CFR 50.92, this means

that operation of the facility in

accordance with the proposed

amendment would not (1) Involve a

significant increase in the probability or

consequences of an accident previously

evaluated; or (2) create the possibility of

a new or different kind of accident from

any accident previously evaluated; or

(3) involve a significant reduction in a

margin of safety. As required by 10 CFR

50.91(a), the licensee has provided its

analysts of the issue of no significant

hazards consideration. The staff has

reviewed the licensee’s analysis against

the standards of 10 CFR 50.92(c). The

NRC staff’s review is presented below.

1. The proposed change does not

involve a significant increase in the

probability or consequences of an

accident previously evaluated.

The probability of an accident

previously evaluated will not increase

as a result of this change, because the

only change are the tolerances for the

SRV opening setpoints and the speed of