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* * * * * * *
Except as otherwise provided in * * * [the Adoption
Agreement](relating to accounting duties), the Trustee
shall not be responsible for administration or
interpretation of the Plan, but shall be responsible
solely for the investment and safekeeping of the Trust
Fund.
On August 28, 1982, petitioner, as plan administrator,
requested the trustee, Union National Bank, to lend $60,000 to
Tag Land, Inc. (Tag Land). In connection with this loan, Tag
Land executed a note and granted the Plan a first lien on a tract
of land in Pennsylvania with a value of at least $375,000. On
September 3, 1982, the Trust Investment Committee of Union
National Bank approved this investment and forwarded the $60,000
to petitioner to send to Tag Land. When the Plan lent the
$60,000 to Tag Land, petitioner owned 18 percent of Tag Land's
stock. Petitioner has owned this 18-percent interest since 1982.
The loan bore interest at the rate of 15 percent per year
and was payable quarterly, until September 1, 1985, when the
principal was due. Since the execution of the loan, Tag Land has
made the following payments on the loan:
Oct. 4, 1982: quarterly interest payment
Feb. 25, 1983: quarterly interest payment
July 21, 1989: $2,000
Apr. 30, 1990: $5,643
Petitioner has never filed a Form 5330, Return of Excise Taxes
Related to Employee Benefit Plans.
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Last modified: May 25, 2011