Grant of Individual Exemptions; L.H. Chapman Investment Company Pension Plan, et al.

DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

[Prohibited Transaction Exemption 94-76; Exemption Application No. D-

9676, et al.]

Grant of Individual Exemptions; L.H. Chapman Investment Company

Pension 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 (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.

L.H. Chapman Investment Company Pension Plan (the Plan); Located in

Columbus, Ohio

[Prohibited Transaction Exemption 94-76; Application No. D-9676]

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 purchase (the Purchase) by Margaret

Chapman, Loyal Chapman, and Lou Chapman Koester's individually-directed

accounts (the Accounts) in the Plan from Indianapolis Life Insurance

Company and Columbus Mutual Life Insurance Company of certain undivided

interests (the Interests) in certain promissory notes (the Notes) of

which the obligor is L.H. Chapman Investment Company, a party in

interest with respect to the Plan.

This exemption is conditioned on the following requirements: (1)

The terms of the Purchase are at least as favorable to the Accounts as

those obtainable in an arm's length transaction with an unrelated

party; (2) the Purchase price is equal to the Accounts' pro rata share

of the aggregate outstanding principal balances of the Notes on the day

of the Purchase; (3) the Purchase occurs only if such outstanding

principal balances are not greater than the fair market values of the

Interests on the day of the Purchase as determined by an independent,

qualified appraiser; (4) the Purchase does not involve more than

twenty-five percent of the assets in each of the Accounts; and (5) the

Accounts are not required to pay any fees, commissions or expenses in

connection with the Purchase.

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 September 19, 1994 at 59

FR 47951.

FOR FURTHER INFORMATION CONTACT: Kathryn Parr of the Department,

telephone (202) 219-8971. (This is not a toll-free number.)

BMJ Financial Corp. Deferred Savings Plan (the Plan); Located in

Bordentown, New Jersey

[Prohibited Transaction Exemption 94-77; Exemption Application No. D-

9732]

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 past acquisition of certain stock rights

(the Rights) by the Plan pursuant to a stock rights offering (the

Offering) by BMJ Financial Corporation (BMJ) to shareholders of record

as of February 9, 1993 of BMJ common stock (the Common Stock); (2) the

holding of the Rights by the Plan during the subscription period of the

Offering; and (3) the past exercise of the Rights by the Plan; provided

that the following conditions are satisfied:

(1) The Plan's acquisition and holding of the Rights occurred in

connection with the Offering made available to all shareholders of the

Common Stock;

(2) The Plan's acquisition and holding of the Rights resulted from

an independent act of BMJ as a corporate entity, and all holders of

Common Stock, including the Plan, were treated in the same manner with

respect to the Offering; and

(3) The authority for all decisions regarding the acquisition,

holding and control of the Rights by the Plan was exercised by an

independent fiduciary which made determinations as to whether and how

the Plan should exercise or sell the Rights acquired through the

Offering.

EFFECTIVE DATE: This exemption is effective as of February 9, 1993, the

Record Date of the Offering.

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 September 2, 1994 at 59

FR 45721.

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, DC, this 27th day of October, 1994.

Ivan Strasfeld,

Director of Exemption Determinations, Pension and Welfare Benefits

Administration, U.S. Department of Labor.

[FR Doc. 94-27055 Filed 10-31-94; 8:45 am]

BILLING CODE 4510-29-P