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5310, Application for Determination Upon Termination; Notice of
Merger, Consolidation or Transfer of Plan Assets or Liabilities;
Notice of Intent to Terminate, with the PBGC. See sec. 2616.3,
PBGC Regs. With the Form 5310, GCI sought a favorable
determination letter from respondent, and it applied for a Notice
of Sufficiency from the PBGC upon the Plan’s termination.
On or about December 30, 1985, GCI opened an interest-
bearing account at Republic Bank (the Republic Bank account).
Petitioner and J. Ray Haynes (Mr. Haynes) of First American were
the designated signatories on the Republic Bank account, and all
withdrawals or disbursements required both individuals to sign.
On the same day, First American deposited $771,000 of funds from
the Plan into the Republic Bank account.4
On January 8, 1986, the PBGC issued a Notice of Sufficiency
to GCI in accordance with GCI’s first application. On or about
January 15, 1986, the funds were withdrawn, including accrued
interest (total of $772,996.44). GCI filed a second Form 5310 on
or about March 5, 1986, to notify respondent and the PBGC of
GCI’s plans to transfer the remaining assets from the Plan to the
GCI profit-sharing plan. On July 17, 1986, First American had
transferred all those assets from the Plan trust, payable to all
4 Approximately $400,000 of petitioner’s balance in the Plan
went towards paying suppliers, which we find was distributed to
petitioner in 1986. The remainder, $771,000, was deposited into
the Republic Bank account, which petitioner claims was to be used
at some point for GCI’s expansion into the Inland Empire. The
record is unclear whether such a property was ever purchased.
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