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1990, Morrissey became the sole remaining participant of the
Defined Benefit Plan.
Under the Agreement for the Trust,2 dated October 25, 1977,
effective November 1, 1976, section 7.01(o) provides that the
trustees shall have the power with respect to the Trust:
To lend money to a Participant at the then current
rates of interest being charged by commercial banks for
similar loans, in an amount not exceeding the value of such
Participant's Accrued Benefit and all such loans to the
extent they are secured only by the Participant's vested
Accrued Benefit shall be repaid within two (2) years from
the date of such loan. Any loans made pursuant to this sub-
paragraph to the extent they are not secured by the
Participant's vested Accrued Benefit shall be otherwise
adequately secured.
Under the second amendment, effective November 1, 1976, section
7.01(o) was amended to read as follows:
To lend money to a Participant at the then current
rates of interest being charged by commercial banks for
similar loans, in an amount not exceeding the value of such
Participant's Accrued Benefit, and all such loans to the
extent they are secured only by the Participant's vested
Accrued Benefit shall be repaid within seven (7) years from
the date of such loan. Any loans made pursuant to this sub-
paragraph to the extent they are not secured by the
Participant's vested Accrued Benefit shall be otherwise
adequately secured.
From February 8, 1984, through December 9, 1988, Morrissey,
as trustee of the Defined Benefit Plan, made a series of six
2We note that the administrative record contains an
Agreement only for the Trust and not for the Defined Benefit Plan
itself. According to this Agreement, "this Trust * * * forms
part of a Pension Plan of the Employer". Consequently, we find
the Defined Benefit Plan incorporates the Trust.
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