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determining eligibility of employees, and maintaining all Plan
records.
In contrast, the trustee had "sole discretion" to make
investment decisions for the Plan. The trustee was "responsible
solely for the investment and safekeeping of the Trust Fund."
The trustee had the broad power to "invest and reinvest the Trust
Fund, without distinction between principal and income, and
without liability for the payment of interest thereon, in such
property as the Trustee in it sole discretion deems advisable".
This power included the power to withdraw funds from the Plan's
trust, the power to diversify its investments, the power to
invest in mortgages and evidences of indebtedness, and the power
to value its investments. The trustee would generally not be
liable for "any loss sustained by the Trust Fund".
The trustee had the discretion and authority to accept or
reject petitioner's recommendation. When the Trust Investment
Committee of the trustee approved the loan, it did so
independently of petitioner's suggestion. It conditioned its
decision on petitioner's forwarding of the recorded mortgage and
appraisal. Petitioner did not "[deal] with the income or assets
of a plan in his own interest or for his own account" and
accordingly, did not engage in a prohibited transaction. See
sec. 4975(c)(1)(E).
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Last modified: May 25, 2011