- 9 - may be exercised only in a fiduciary capacity. The Trustee shall discharge such powers and its duties solely in the interest of the Participants and Beneficiaries for the exclusive purpose of providing benefits to them, defraying reasonable expenses of administering the Plan, and with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aim. The Trustee shall diversify the investments of the Plan so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so. The Trustee shall not make any investments outside of the jurisdiction of the United States of America and shall not engage in any prohibited transactions as defined in the Code. Petitioner made the following contributions to the plan for the years listed: Year Ended Contribution 9/30/87 $219,000 9/30/88 -0- 9/30/89 226,769 9/30/90 44,044 9/30/91 -0- 9/30/92 127,844 9/30/93 122,665 Loans to Estes Co. From the Plan Before 1986 The plan made loans to Estes Co. sometime before July 29, 1985. During 1985, respondent began an examination of petitioner's Forms 1120, U.S. Corporation Income Tax Returns, for years ended September 30, 1980 through 1983. At the same time, respondent examined the plan for plan years ended September 19, 1982 and 1983. Respondent determined that loans made to Estes Co. by the plan constituted prohibited transactions because Estes Co. was a disqualified person. Respondent determined Estes Co.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011