Ralf Zacky - Page 14

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          permitted by the plan, none was a prohibited transaction.  The              
          first loan was not permitted by the plan.  In that it has yet to            
          be repaid more than 14 years after its making, the first loan               
          failed the plan’s explicit requirement that participant loans               
          “provide for level amortization with payments to be made not less           
          frequently than quarterly over a period not to exceed five (5)              
          years.”  The second and third loans, both of which are different            
          from the first loan in that they are not participant loans, were            
          specifically prohibited by the statute upon their making.  In               
          other words, even if the plan did allow the second and third                
          loans to Inland, we read nothing in section 4975 that would                 
          exempt these loans from that section’s definition of a prohibited           
          transaction.                                                                
               As to petitioner’s second assertion, the mere fact that the            
          bankruptcy court confirmed a plan under which Aspects may repay             
          each of the three loans is of no consequence to our decision.  In           
          addition to the fact that Aspects has not yet made any payment on           
          those loans, we read nothing in the confirmed plan, nor has                 
          petitioner pointed us to anything, that persuades us that Aspects           
          will eventually repay any or all amounts due on the three loans.            
          In fact, as we read the confirmed plan, the plan’s status is                
          simply that of an unsecured creditor with rights no greater than            
          those of any other unsecured creditor.  Such an unfulfilled                 
          third-party obligation does not transmute the prohibited                    






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