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$137,270 in real estate at the end of the plan year, we find that
Morrissey transferred no real estate to the Defined Benefit Plan.
Neither interest nor principal payments were ever made to
the Defined Benefit Plan. As trustee of the Defined Benefit
Plan, Morrissey made no attempt to collect any of the outstanding
six loans. Rather than collecting on the loans, Morrissey signed
a form titled "Employee's Waiver of Portion of Benefit Not Funded
Upon Distribution of Plan's Assets Pursuant to Plan Termination
Effective: September 26, 1990", in which he waived his right to
any unfunded benefits, to the extent that the Defined Benefit
Plan assets were insufficient to provide the actuarial equivalent
of his normal retirement benefit on the date of benefit
distributions. Consequently, Morrissey never paid any interest
or principal on the loans, and when he terminated the Defined
Benefit Plan, he intended not to repay his obligation to the
Defined Benefit Plan. It was inconsistent with the prudent
investor rule for the Defined Benefit Plan to have made those
loans and then to have allowed them to remain outstanding under
the circumstances. The purpose of ERISA is to provide retirement
benefits, not to provide a tax-free checking account to Morrissey
from which he can withdraw money at any time as loans and then
waive his obligation to repay. Morrissey's waiver of his rights
to any unfunded benefits, when most of his benefits under the
Defined Benefit Plan remained unfunded, coupled with the
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