Plan land purchase after party in interest trustee resigns

P/OPINION    76-102

                                                 406(a)

                      February 19, 1976



Dear           :

This is in reply to your exemption request of July 9, 1975
and supplemental material dated November 14, 1975.

We have carefully reviewed the information which you
provided. You have indicated the following: The land
that the plan wishes to purchase was owned at one time by
the (named) Corporation, a participating employer. A
purchase by the plan at that time would have been a
prohibited transaction. When the sole shareholder of that
corporation, Mr. (x) died, the corporation was dissolved
and the freehold interest passed to the estate of Mr. (x}.
A potential prohibited transaction remained, however,
since one of the executors of Mr. (x)'s estate was
Mr. (y), a trustee of the plan and, therefore, a party-
in-interest. Mr. (y) subsequently resigned his
trusteeship, and, thus, no party-in-interest is now
present.

Based on the above information, the Department considers
the proposed purchase of the land from the estate of Mr. (x)
not to be a prohibited transaction under section 406(a) of
ERISA. Accordingly, a 408(a) exemption is not required.

Should you have any further questions, please contact the
Division of Exemptions, Variances, and Determinations,
Room N-4716, Washington, D.C. 20216,


Sincerely,