Shedco, Inc. - Page 28

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          administered.  Winger's Dept. Store, Inc. v. Commissioner, 82               
          T.C. at 887-888.                                                            
               Neither the Code nor the regulations provide specific rules            
          identifying the types of investments which are considered to                
          satisfy or violate the exclusive benefit rule.  Id.                         
          Notwithstanding the lack of statutory and regulatory guidance,              
          this Court and other courts have recognized that, in appropriate            
          situations, improper investment practices of the trust may                  
          warrant disqualification of the related pension plan under the              
          exclusive benefit rule.  E.g., id. at 878 and the cases cited               
          thereat.                                                                    
               ERISA section 404(a)(1) requires a plan fiduciary to                   
          discharge his or her duties for the exclusive purpose of (1)                
          providing benefits to participants and their beneficiaries and              
          (2) defraying reasonable expenses of the plan.  Additionally, the           
          fiduciary must (1) perform those duties with the care, skill,               
          prudence, and diligence that a prudent investor would exercise              
          under similar circumstances, (2) diversify investments to                   
          minimize the risk of large losses, unless diversification clearly           
          is not prudent under the circumstances, and (3) discharge those             
          duties pursuant to the terms of the plan to the extent they are             
          consistent with the provisions of title I.  Id.  The legislative            
          history of ERISA section 404(a), however, cautions:  "It is                 
          expected that courts will interpret the prudent man rule and                
          other fiduciary standards bearing in mind the special nature and            



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