PTE 98-54 Relating to Certain Employee Benefit Plan Foreign Exchange Transactions Executed Pursuant to Standing Instructions

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices
Avenue, NW, Room S–3014,
Washington, DC 20210.
Modifications to General Wage
Determination Decisions
The number of decisions listed in the
Government Printing Office document
entitled ‘‘General Wage Determinations
Issued Under the Davis-Bacon and
Related Acts’’ being modified are listed
by Volume and State. Dates of
publication in the Federal Register are
in parentheses following the decisions
being modified.
Volume I
Connecticut
CT980001 (Feb. 13, 1998)
CT980003 (Feb. 13, 1998)
CT980004 (Feb. 13, 1998)
Massachusetts
MA980018 (Feb. 13, 1998)
MA980019 (Feb. 13, 1998)
MA980020 (Feb. 13, 1998)
Maine
ME980018 (Feb. 13, 1998)
ME980026 (Feb. 13, 1998)
ME980030 (Feb. 13, 1998)
New Jersey
NJ980003 (Feb. 13, 1998)
NJ980004 (Feb. 13, 1998)
Volume II
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PA980001 (Feb. 13, 1998)
PA980002 (Feb. 13, 1998)
PA980004 (Feb. 13, 1998)
PA980007 (Feb. 13, 1998)
PA980009 (Feb. 13, 1998)
PA980014 (Feb. 13, 1998)
PA980018 (Feb. 13, 1998)
PA980020 (Feb. 13, 1998)
PA980027 (Feb. 13, 1998)
PA980033 (Feb. 13, 1998)
PA980038 (Feb. 13, 1998)
PA980051 (Feb. 13, 1998)
PA980053 (Feb. 13, 1998)
PA980060 (Feb. 13, 1998)
West Virginia
WV980002 (Feb. 13, 1998)
WV980003 (Feb. 13, 1998)
WV980006 (Feb. 13, 1998)
Volume III
Alabama
AL980008 (Feb. 13, 1998)
Kentucky
KY980001 (Feb. 13, 1998)
KY980002 (Feb. 13, 1998)
KY980003 (Feb. 13, 1998)
KY980004 (Feb. 13, 1998)
KY980006 (Feb. 13, 1998)
KY980007 (Feb. 13, 1998)
KY980025 (Feb. 13, 1998)
KY980027 (Feb. 13, 1998)
KY980028 (Feb. 13, 1998)
KY980029 (Feb. 13, 1998)
KY980035 (Feb. 13, 1998)
KY980044 (Feb. 13, 1998)
KY980054 (Feb. 13, 1998)
Volume IV
Illinois
IL980001 (Feb. 13, 1998)
IL980002 (Feb. 13, 1998)

IL980003 (Feb. 13, 1998)
IL980004 (Feb. 13, 1998)
IL980006 (Feb. 13, 1998)
IL980010 (Feb. 13, 1998)
IL980012 (Feb. 13, 1998)
IL980013 (Feb. 13, 1998)
IL980014 (Feb. 13, 1998)
IL980015 (Feb. 13, 1998)
IL980016 (Feb. 13, 1998)
IL980017 (Feb. 13, 1998)
IL980020 (Feb. 13, 1998)
IL980042 (Feb. 13, 1998)
IL980047 (Feb. 13, 1998)
IL980049 (Feb. 13, 1998)
IL980052 (Feb. 13, 1998)
IL980053 (Feb. 13, 1998)
IL980055 (Feb. 13, 1998)
IL980065 (Feb. 13, 1998)
Michigan
MI980004 (Feb. 13, 1998)
MI980007 (Feb. 13, 1998)
MI980064 (Feb. 13, 1998)
MI980077 (Feb. 13, 1998)
Minnesota
MN980003 (Feb. 13, 1998)
MN980005 (Feb. 13, 1998)
MN980007 (Feb. 13, 1998)
MN980008 (Feb. 13, 1998)
MN980012 (Feb. 13, 1998)
MN980015 (Feb. 13, 1998)
MN980027 (Feb. 13, 1998)
MN980031 (Feb. 13, 1998)
MN980035 (Feb. 13, 1998)
MN980039 (Feb. 13, 1998)
MN980047 (Feb. 13, 1998)
MN980058 (Feb. 13, 1998)
MN980059 (Feb. 13, 1998)
MN980061 (Feb. 13, 1998)
Ohio
OH980001 (Feb. 13, 1998)
OH980002 (Feb. 13, 1998)
OH980003 (Feb. 13, 1998)
OH980007 (Feb. 13, 1998)
OH980012 (Feb. 13, 1998)
OH980014 (Feb. 13, 1998)
OH980018 (Feb. 13, 1998)
OH980024 (Feb. 13, 1998)
OH980026 (Feb. 13, 1998)
OH980028 (Feb. 13, 1998)
OH980029 (Feb. 13, 1998)
OH980034 (Feb. 13, 1998)
OH980035 (Feb. 13, 1998)

63503

General Wage Determination
Publication
Gengeral Wage determinations issued
under the Davis-Bacon and related Acts,
including those noted above, may be
found in the Government Printing Office
(GPO) document entitled ‘‘General Wage
Determinations Issued Under The DavisBacon and Related Acts.’’ This
publication is available at each of the 50
Regional Government Depository
Libraries and many of the 1,400
Government Depository Libraries across
the country.
The general wage determinations
issued under the Davis-Bacon and
related Acts are available electronically
by subscription to the FedWorld
Bulletin Board System of the National
Technical Information Service (NTIS) of
the U.S. Department of Commerce at 1–
800–363–2068
Hard-copy subscriptions may be
purchased from: Superintendent of
Documents, U.S. Government Printing
Office, Washington, DC 20402, (202)
512–1800.
When ordering hard-copy
subscription(s), be sure to specify the
State(s) of interest, since subscriptions
may be ordered for any or all of the
seven separate volumes, arranged by
State. Subscriptions include an annual
edition (issued in January or February)
which includes all current general wage
determinations for the States covered by
each volume. Throughout the remainder
of the year, regular weekly updates are
distributed to subscribers.
Signed at Washington, DC this 6th day of
November 1998.
Margaret J. Washington,
Acting Chief, Branch of Construction Wage
Determinations.
[FR Doc. 98–30233 Filed 11–12–98; 8:45 am]
BILLING CODE 4510–27–M

Volume V
Iowa
IA980004 (Feb. 13, 1998)
IA980005 (Feb. 13, 1998)
IA980038 (Feb. 13, 1998)
Louisiana
LA980001 (Feb. 13, 1998)
LA980004 (Feb. 13, 1998)
LA980005 (Feb. 13, 1998)
LA980009 (Feb. 13, 1998)
LA980016 (Feb. 13, 1998)
LA980018 (Feb. 13, 1998)
LA980055 (Feb. 13, 1998)

DEPARTMENT OF LABOR

Volume VI

AGENCY:

Alaska
AK980001 (Feb. 13, 1998)
AK980005 (Feb. 13, 1998)

Volume VII
NV980005 (Feb. 13, 1998)
NV980009 (Feb. 13, 1998)

Pension and Welfare Benefits
Administration
[Prohibited Transaction Exemption 98–54;
Application Number D–09643]

Class Exemption Relating to Certain
Employee Benefit Plan; Foreign
Exchange Transactions Executed
Pursuant to Standing Instructions
Pension and Welfare Benefits
Administration, Labor.
ACTION: Grant of class exemption.
This document contains a
final exemption from certain prohibited
transaction restrictions of the Employee
Retirement Income Security Act of 1974
SUMMARY:

63504

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices

(ERISA or the Act) and from certain
taxes imposed by the Internal Revenue
Code of 1986 (the Code). The class
exemption permits certain foreign
exchange transactions between
employee benefit plans and certain
banks and broker-dealers which are
parties in interest with respect to such
plans, pursuant to standing instructions.
The exemption affects participants and
beneficiaries of employee benefit plans
involved in such transactions, as well as
banks and broker-dealers which act as
dealers in foreign exchange.
EFFECTIVE DATES: Section II is effective
for transactions occurring from June 18,
1991 to January 12, 1999. Section III is
effective for transactions occurring after
January 12, 1999.
FOR FURTHER INFORMATION CONTACT:
Lyssa E. Hall, Office of Exemption
Determinations, Pension and Welfare
Benefits Administration, U.S.
Department of Labor, Washington, DC
20210 (202) 219–8971 (not a toll-free
number) or Susan E. Rees, Plan Benefits
Security Division, Office of the
Solicitor, (202) 219–4600, ext. 105 (not
a toll-free number).
Paperwork Reduction Act Analysis:
Pursuant to the Paperwork Reduction
Act of 1995, Pub. L. 104–13, 44 U.S.C.
Chapter 35 and 5 CFR Part 1320, the
information collection request (ICR) in
this class exemption was published for
public comment on February 3, 1997 (62
FR 5051). Based upon information
received by the Department of Labor
(the Department), the estimated
information collection burden has been
adjusted (see Respondents and Proposed
Frequency of Response and Estimated
Annual Burden, below). The Office of
Management and Budget (OMB) has
approved this ICR with the control
number OMB 1210–0111, which expires
on November 30, 2001. Persons are not
required to respond to this ICR unless
it displays a currently valid OMB
control number.
Respondents and Proposed Frequency
of Response: The Department staff
estimates that approximately 35 parties
will seek to take advantage of the class
exemption in any given year. The
respondents will be banks and brokerdealers acting as fiduciaries of plans
which engage in foreign exchange
transactions with such plans.
Estimated Annual Burden: The
Department staff estimates the annual
burden hours for preparing disclosure
materials and maintaining records
required under the class exemption to
be 4,200 hours.
Supplementary Information
The proposed exemption was initially
requested in an application dated July

18, 1984 (Application No. D–5700),
submitted by the American Bankers
Association (ABA) pursuant to section
408(a) of ERISA and section 4975(c)(2)
of the Code, and in accordance with the
procedures set forth in ERISA Procedure
75–1 (40 FR 18471, April 28, 1975).
Pursuant to the foregoing authority, the
Department proposed additional
conditions with respect to the relief
requested by the Applicant.
On February 17, 1994, the Department
granted PTE 94–20 (59 FR 8022), a class
exemption which permits purchases
and sales of foreign currencies between
employee benefit plans and certain
banks or broker-dealers which are
parties in interest with respect to such
plans provided that such transactions
are directed by a plan fiduciary who is
independent of the bank or brokerdealer and the other conditions of the
exemption are met. PTE 94–20 provides
an exemption from the prohibited
transaction restrictions of section
406(a)(1)(A) through (D) of the Act and
from the sanctions resulting from
section 4975(a) and (b) of the Code by
reason of section 4975(c)(1)(A) through
(D) of the Code. PTE 94–20 did not
provide relief for all of the transactions
described in the 1984 ABA exemption
request.
In response to the notice of proposed
exemption for PTE 94–20, a number of
commenters (the Commenters)
expressed concern regarding the lack of
relief for foreign exchange transactions
executed pursuant to standing
instructions. As explained in greater
detail in the preamble to PTE 94–20, the
Commenters requested that the
Department expand the exemption to
include retroactive and prospective
relief for foreign exchange transactions
entered into pursuant to a ‘‘standing
authorization’’ (hereinafter standing
instruction). Many of the Commenters
also requested that the Department
amend the definition of the term
‘‘directed transaction’’ by modifying the
requirement that the independent plan
fiduciary effect the foreign exchange
transaction at a specific exchange rate.
The Commenters represented that the
utilization of standing instructions is an
integral component in foreign exchange
transactions involving employee benefit
plans. In this regard, the Commenters
indicated that, without the ability to
execute foreign exchange transactions
with plans pursuant to standing
instructions, plans would lose
investment income and incur higher
exchange rates on small transactions.
Based upon the comments and
additional information received
following publication of the proposal to
PTE 94–20, the Department concluded

that it might be appropriate, under
limited circumstances, to provide relief
from section 406(b)(1)and (b)(2) of the
Act for foreign exchange transactions
entered into pursuant to standing
instructions. However, pursuant to the
requirements of section 408(a) of the
Act, the Department is required to offer
interested persons an opportunity to
present their views and an opportunity
to request a hearing before granting an
exemption from section 406(b) of the
Act. Therefore, in order not to have
delayed the publication of PTE 94–20,
the Department determined to
separately consider exemptive relief
from sections 406(a)(1)(A) through (D),
406(b)(1) and (b)(2) of the Act for foreign
exchange transactions between a plan
and a party in interest bank or, brokerdealer where such transactions are
engaged in pursuant to a standing
instruction.
During the Department’s
consideration of the standing
instruction issue, the ABA made a
supplemental submission on September
1, 1992, in which they limited their
request for relief for standing instruction
transactions and suggested additional
conditions regarding such transactions.
Over the course of the following two
years, the Department solicited further
information from the ABA and other
interested parties. As a result of the
suggestions and comments received
from those parties, as well as the
imposition of additional conditions by
the Department, the Department
believed that a number of its concerns
regarding standing instruction 1
transactions have been addressed.
On February 3, 1997, the Department
published a notice in the Federal
Register (62 FR 5051) of the pendency
of a proposed class exemption from the
restrictions of sections 406(a)(1)(A)
through (D), 406(b)(1) and (b)(2) of
ERISA and from the taxes imposed by
section 4975(a) and (b) of the Code, by
reason of section 4975 (c)(1)(A) through
(E) of the Code for foreign exchange
transactions, between a bank or brokerdealer and an employee benefit plan
with respect to which the bank or
broker-dealer is a trustee, custodian,
fiduciary or other party in interest,
pursuant to a standing instruction.
The notice of pendency gave all
interested persons an opportunity to
submit written comments or request a
public hearing on the proposed class
exemption by April 4, 1997. The
Department received three public
comment letters and no requests for a
public hearing in response to the notice.
1 For a discussion of those Comments, see the
proposed exemption at 62 FR 5052–54.

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices
Upon consideration of the record as a
whole, the Department has determined
to grant the proposed class exemption,
subject to certain modifications. These
modifications and the comments are
discussed below.
Discussion of the Comments
Section III(i) of the proposed
exemption contains a condition which
requires that a bank or broker-dealer
which engaged in a covered transaction,
furnish the authorizing plan fiduciary
with a confirmation statement for each
covered transaction. The confirmation
statement must disclose the time of the
exchange.2 All of the Commenters
objected to this requirement. According
to the Commenters, time stamping
confirmation statements is not a current
industry practice, nor a practice which
could be easily implemented. The
Commenters indicated that the cost of
disclosing the time of the transaction on
the confirmation statements would far
outweigh any benefits to be gained.
One Commenter explained in greater
detail why the inclusion of the time on
the confirmation statement was not only
impractical but also unresponsive to our
concern that a plan fiduciary be able to
monitor the rates charged in foreign
exchange transactions. According to the
Commenter, a time-stamp enables a plan
to look at the rates available at the time
stamped, without regard to whether
those rates would have been available
for transactions the size of that
particular plan’s transaction. In
addition, the information may be
misleading because the trade may or
may not have been batched with other
trades to achieve a better rate for the
client plan. Where trades are aggregated
prior to conversion, it may take several
hours before the investment manager
desegregates the trades and allocates
pieces to each of its clients. The trade
is not time-stamped until it has been
allocated to each client and booked into
the trade entry system. The trade entry
system uses a current time-stamp and
cannot be manipulated to reflect the
time when the actual transaction
occurred. Thus, the rate at the time that
the order is stamped may have nothing
to do with the rate at which the trade
was executed.
In addressing the Department’s
concern regarding the ability of plan
fiduciaries to monitor the rates charged
in foreign exchange transactions, the
2 Under the proposal, this requirement would be
deemed satisfied if the bank or broker-dealer
engaged in the covered transactions only once a day
and the time of such conversions is set forth in the
bank’s or broker-dealer’s written policies and
procedures which are provided to the independent
plan fiduciary.

Commenter noted that there are a
variety of sources from which foreign
exchange price quotes are available.
These include Reuters, electronic
brokerage systems and the Internet. The
Commenter indicated that the foreign
exchange market is very transparent as
a result of new technologies and that
any plan which engages in foreign
exchange trading can easily access at
least one of the sources of foreign
currency rates. Thus, plan fiduciaries
have the ability to monitor prices for
trades by reviewing the highs and lows
of the day as displayed on one of the
reporting services. In addition, the
Commenter noted that in order to
comply with banking safety and
soundness requirements, banks must
have a system for detecting trades which
are off market i.e., whose currency
spreads deviate significantly from other
trades in the same currency. These
internal safeguards enable a bank to
monitor its own traders to maintain the
integrity of their foreign currency
pricing systems.
The Department has considered the
comments regarding the requirement for
inclusion of the time of the transaction
on the confirmation statement and has
determined to delete this requirement
from the final exemption.
The Department wishes to point out
that ERISA’s general standards of
fiduciary conduct would apply to the
standing instruction arrangements
permitted by this class exemption.
Section 404 of ERISA requires, among
other things, that a fiduciary discharge
his duties with respect to a plan solely
in the interest of the plan’s participants
and beneficiaries and in a prudent
fashion.3 Specifically, the investment
manager or independent plan fiduciary
must be capable of periodically
monitoring the actions taken by the
bank or broker-dealer in the course of its
execution of foreign exchange
transactions pursuant to standing
instructions. In considering whether to
authorize a bank or broker-dealer to
execute foreign exchange transactions
pursuant to standing instructions, a
fiduciary should take into account its
3 The investment manager or other independent
plan fiduciary must act prudently with respect to
the decision to enter into such an arrangement,
such as considering the effect of restrictions on
funds transfers by foreign governments, as well as
to the negotiation of the specific terms under which
the bank or broker-dealer will engage in foreign
exchange transactions on behalf of the plan
including whether the bank or broker-dealer may
use non-affiliated foreign custodians. In addition,
the investment manager or other independent plan
fiduciary must fully understand the benefits and
risks associated with engaging in foreign exchange
transactions pursuant to standing instructions,
following disclosure by the bank or broker-dealer of
all relevant information.

63505

ability to provide adequate oversight of
the bank or broker-dealer.
Under section I of the proposed
exemption, relief was provided for
transactions involving income item
conversions, as well as for de minimis
purchase or sale transactions. The
definition of ‘‘income item conversion’’
under section IV(g) was limited to
transactions involving the exchange of
income conversion items into U.S.
dollars. The Department imposed this
limitation because of concerns regarding
the ability of a bank to maintain
converted funds in an interest bearing
account. The ABA requested that the
Department expand the scope of the
final exemption to include the
conversion of foreign denominated
income receipts into another foreign
currency pursuant to standing
instructions. The Commenter represents
that plans benefit from foreign exchange
conversions under standing instructions
because the foreign exchange trades can
be done quickly and the plans can begin
to earn interest on the funds as soon as
possible. The ABA further represents
that some financial institutions have
interest bearing investments or
investment pools that will accept
currencies that are not U.S. dollars.
Accordingly, the ABA suggested that the
Department modify the final exemption
to permit the conversion of income
items into non-U.S. dollars under any of
the following circumstances: (1) Income
items which are received in a foreign
currency are exchanged into another
foreign currency and the exchanged
funds are held in an interest bearing
investment vehicle pending further
investment instruction; (2) the
conversion is executed pursuant to a
standing instruction and the
reinvestment of the exchanged foreign
currency occurs within a prescribed
period of time, such as 24 hours; and (3)
the standing instruction directs that an
income item be converted from one
foreign currency into another foreign
currency. According to the ABA, plans
will receive the benefit of only going
through one conversion instead of two,
thus, saving the cost of one foreign
exchange transaction. In this regard, the
Department is unable to conclude that
income item conversions into non-U.S.
dollars should be permitted under the
final exemption if the plan is not able
to earn interest on the conversion
amounts which are held by the bank for
more than 24 hours after conversion. We
note, however, that such conversions
may be appropriate where interest is
earned on amounts held for more than
24 hours after conversion as long as the
bank does not determine the non-U.S.

63506

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices

currency into which the income item is
converted. Accordingly, the Department
has determined to modify the definition
of the term income item conversion in
the final exemption to provide relief for
transactions in which the bank has a
standing instruction that requires the
conversion of income items from one
foreign currency into another foreign
currency and either the converted funds
are transferred to an interest bearing
account within 24 hours of the
conversion and held therein pending
further investment direction from the
plan or the bank reinvests such
proceeds within 24 hours of the
conversion at the direction of the plan.
In response to the Commenter’s third
suggestion, the Department does not
believe that the Commenter has
adequately demonstrated that such
further relief is warranted. Therefore,
the Department has determined not to
adopt the Commenter’s last suggestion.
Section IV (g) and (h) of the proposed
exemption define the terms ‘‘income
item conversion’’ and ‘‘de minimis
purchase or sale transaction’’ to limit
relief to transactions involving no more
than 100,000 in U.S. dollars or the
equivalent thereof for each transaction.
Two Commenters urged the Department
to reconsider the $100,000 limitation for
such transactions. The ABA stated that
the $100,000 limitation may add costs to
employee benefit plan foreign exchange
transactions. It was explained, for
example, that banks may hold foreign
securities through a global custody
network of affiliated and non-affiliated
subcustodians. Under these
circumstances, securities issued in a
foreign country are commingled with
the securities of a number of the bank’s
clients and held in omnibus accounts at
the bank’s subcustodians in that foreign
country. For tax reasons, omnibus
accounts may be further divided into
several subaccounts maintained at the
subcustodians. According to the
Commenter, foreign exchange
conversions are transacted at either the
omnibus account level or the
subaccount level to expedite the
conversion and to enable the conversion
to be bundled. Since the process of
allocating income items to individual
accounts is not done until after the
conversion takes place, a bank would
not know the amount of any particular
plan’s assets that are involved at the
time of the foreign exchange transaction.
Thus, the Commenter noted that a bank
could not determine whether a
transaction met the $100,000 limitation
proposed by the Department for income
conversions. The Commenter argues
that, if a plan was unable to take

advantage of the omnibus or subaccount
system, the plan would be precluded
from receiving the benefit of bundling
its income conversion items with the
bank’s other customers to get a more
favorable foreign exchange rate. In
addition, the Commenters represent that
plans would incur increased custody
costs if the omnibus or subaccounts
system was not available for plan
foreign exchange transactions.
Both Commenters urged the
Department to raise the dollar limitation
for de minimis purchases and sales and
income conversions. According to the
Commenters, $100,000 is no longer an
adequate limitation for either purchase
and sale transactions or income
conversions. The ABA suggested that
the Department adopt a floating cap
based on the size of a plan’s total assets.
Under this approach, a plan with $50
million or more in total assets would be
limited to $500,000 under the
exemption. Plans with total assets of
less than $50 million would be limited
to $100,000 for each foreign exchange
transaction. As an alternative
suggestion, the Commenter urged the
Department to raise the dollar limitation
to $500,000 and inform small plans in
the preamble to the final class
exemption that it may be prudent to
utilize standing instructions with a
lower dollar limit.
One of the major reasons cited by the
ABA for the utilization of standing
instructions by plans was that obtaining
specific directions from plans for
relatively small transactions was time
consuming and not in the best interests
of plans because of increased
transaction costs. At the time the
Department proposed relief for income
item conversions and de minimis
purchases and sales, such relief was
based on the premise that the exemption
would only cover transactions involving
the receipt of relatively small amounts
of foreign currency. In this regard, the
conditions proposed by the Department
were specifically designed to address
foreign exchange transactions in the
context of small transactions. Although
the ABA initially suggested a $500,000
limitation, the Department believed at
the time that a limitation of $100,000
was a more appropriate measure for
transactions which are intended to be
relatively small. The Department
recognizes that, over the past several
years, plans have increased foreign
investments so that $100,000 may no
longer be an appropriate limitation for
income item conversions or de minimis
purchases and sales. However, the
Department is not persuaded by the
argument that a foreign exchange
transaction involving $500,000 should

be properly viewed as a small
transaction for purposes of this
exemption. After considering the issue,
the Department has decided to modify
the final exemption to increase the
limitation to $300,000. The Department
believes that increasing the dollar
limitation to $300,000 will make it
easier for those banks which use the
omnibus/subaccount system to monitor
the amount of a plan’s assets which are
involved in a foreign exchange
transaction. In addition, a $300,000
limitation will ensure that the
transactions that a plan is permitted to
engage in pursuant to this exemption
will only be those which are relatively
small. Accordingly, the Department has
modified the definitions of the terms
‘‘income item conversion’’ and ‘‘de
minimis purchase or sale transaction’’ to
increase the dollar limitation to no more
than 300,000 in U.S. dollars or the
equivalent thereof.4
Sections II(d) and III(d) of the
proposed class exemption require banks
and broker-dealers to maintain written
policies and procedures regarding the
handling of foreign exchange
transactions for plans which assure that
the person acting for the bank or brokerdealer knows that he or she is dealing
with a plan. A Commenter represents
that, since a subaccount typically holds
the securities of a number of customers
which are not ERISA covered plans,
foreign exchange traders would not
always know whether the funds
involved in a specific foreign exchange
transaction contain plan assets. It is the
view of the Department that sections
II(d) and III(d) will be deemed satisfied
if bank policies and procedures for
handling foreign exchange transactions
require the bank or broker-dealer to
always assume that foreign exchange
trades of amounts held in subaccounts
involve plan assets.
Section III(h) of the proposed
exemption required that the written
policies and procedures provided to the
authorizing fiduciary disclose the
time(s) each day that the bank or brokerdealer will establish the specific rate of
exchange or the range of exchange rates,
as well as the time(s) that the
conversions will take place. The ABA
requested that the Department clarify
whether this condition requires that a
4 Although the Department believes that the
$300,000 limitation is appropriate for large plans
that purchase and sell foreign securities, it further
notes that such dollar limitation may not be
appropriate for smaller plans (e.g., plans with
aggregate plan assets of less than $50 million). It is
the responsibility of the investment manager or
other plan fiduciary, consistent with its duties
under section 404 of ERISA, to utilize standing
instructions with a dollar limitation that is prudent
under the particular circumstances.

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices
bank with several locations in different
time zones engage in foreign exchange
transactions at all locations at the same
time period based on a specific time
zone (i.e., 10:00 a.m. New York and 4
p.m. London).
The Department notes that the
purpose of this condition is to provide
the authorizing fiduciary with the
information necessary to effectively
monitor the rates that the plans are
charged. The Department does not
interpret this condition to require that a
bank’s foreign exchange desks located in
different time zones establish foreign
exchange rates simultaneously with
their U.S. affiliate. Accordingly, nothing
contained in section III(h) would
preclude a bank or broker-dealer from
setting exchange rate(s) at different
times if the bank or broker-dealer
engages in foreign exchange transactions
at locations in different time zones,
provided that this information is
provided to the authorizing fiduciary.
Two Commenters requested that the
Department delete the requirement
under section III(f) of the proposal that
a non-affiliated custodian provide
notice to the bank or broker-dealer that
good funds have been received no later
than two business days following
receipt of such funds by the foreign
custodian. The Commenters noted that,
while non-affiliated subcustodians are
generally required to send notice
promptly, the banks do not control the
actions of their non-affiliated
subcustodians and thus cannot monitor
or control when notice of good funds
will be provided. The Commenters also
noted that even absent this requirement,
conversions will still have to be
executed by the bank either at the next
scheduled time for such transactions
following receipt of notice from the nonaffiliated subcustodian that good funds
have been received or under some
circumstances not more than 24 hours
after receipt of such notice.
After considering the comments, the
Department has determined to delete
this requirement as it pertains to nonaffiliated custodians of the bank or
broker-dealer. In this regard, the
Department expects the bank or brokerdealer to act prudently with respect to
the selection and continued retention of
a non-affiliated foreign custodian. Any
such determination should reflect the
capability of the foreign affiliate to
promptly notify the bank or brokerdealer of its receipt of good funds.
The prospective conditional relief
under the proposal is effective for
covered transactions entered into after
May 5, 1997. The ABA urged the
Department to delay application of the
prospective conditions of the exemption

for sixty days after publication of the
final class exemption. According to the
ABA, the banking industry needs
sufficient time to change their practices
to meet the requirements and conditions
of the final exemption. The Department
finds merit in this comment and has
modified the final exemption to make
the prospective conditions effective
sixty days after publication of this final
class exemption.
The proposed exemption provided
conditional retroactive relief for foreign
exchange transactions which were
executed pursuant to standing
instructions from June 18, 1991, until
May 5, 1997. The ABA questioned why
the Department did not provide
retroactive relief for transactions which
were executed pursuant to standing
instructions prior to June 18, 1991.
The Department does not believe that
the Commenter has sufficiently
demonstrated the need for an earlier
effective date. Therefore, the
Department cannot conclude that an
earlier effective date is warranted.
One Commenter expressed concern
regarding the provision in section
III(g)(1) of the proposed class exemption
which limits the number of times per
day that a bank or broker-dealer could
establish a rate of exchange or a range
of rates to be used for transactions
covered by the exemption. The
Commenter stated that they could see
no purpose in this limitation. Moreover,
the Commenter believes that in highly
active markets it would not be in the
best interests of plans to set an arbitrary
limit.
The Department finds merit in the
Commenter’s argument and has
determined to delete this limitation
from the final exemption. We note,
however, that the written policies and
procedures provided to the authorizing
fiduciary must disclose, among other
things, the time(s) each day that the
rate(s) will be established.
One Commenter requested that the
final exemption be expanded to include
relief for ‘‘a limited standing
instruction,’’ in order to permit
transactions to occur at market prices
within one business day after the
instruction is given without the
requirement that a specific amount of
foreign currency and a specific
exchange rate be directed, provided that
a fiduciary independent of the brokerdealer specifies a price range and a
quantity range in which the transaction
should be conducted. The Department
does not believe that it has sufficient
information on the record at this time to
make the findings necessary to provide
further exemptive relief. Moreover, the
Department does not believe that a

63507

sufficient showing has been made that
the conditions suggested by the
Commenter would adequately protect
the interests of participants and
beneficiaries of plans which engage in
transactions pursuant to the limited
standing instructions. Finally, we note
that while the class exemption is only
available to banks, broker-dealers and
their domestic affiliates, many of the
conditions in the exemption apply to
both domestic and foreign affiliates.
Accordingly, we have added a new
paragraph (l) which defines the term
‘‘foreign affiliate’’, to the final class
exemption to clarify this distinction.
General Information
The attention of interested persons is
directed to the following:
(1) The fact that a transaction is the
subject of an exemption under section
408(a) of the Act and section 4975(c)(2)
of the Code does not relieve a fiduciary
or other party in interest or disqualified
person from certain other provisions of
the Act and the Code, including any
prohibited transaction provisions to
which the exemption does not apply
and the general fiduciary responsibility
provisions of section 404 of the Act
which require, among other things, that
a fiduciary discharge his duties with
respect to the plan solely in the interests
of the participants and beneficiaries of
the plan and in a prudent fashion in
accordance with section 404(a)(1)(B) of
the Act; nor does it affect the
requirement of section 401(a) of the
Code that the plan must operate for the
exclusive benefit of the employees of
the employer maintaining the plan and
their beneficiaries;
(2) In accordance with section 408(a)
of ERISA and section 4975(c)(2) of the
Code, the Department finds that the
exemption is administratively feasible,
in the interests of plans and their
participants and beneficiaries and
protective of the rights of participants
and beneficiaries of the plans.
(3) The class exemption is applicable
to a transaction only if the conditions
specified in the class exemption are
met; and
(4) The class exemption is
supplemental to, and not in derogation
of, any other provisions of ERISA and
the Code, including statutory or
administrative exemptions and
transitional rules. Furthermore, the fact
that a transaction is subject to an
administrative or statutory exemption is
not dispositive of whether the
transaction is in fact a prohibited
transaction.

63508

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices

Exemption
Accordingly, the following exemption
is granted under the authority of section
408(a) of the Act and section 4975(c)(2)
of the Code, and in accordance with the
procedures set forth in 29 ERISA
Procedure 75–1 (40 FR 18471, April 28,
1975).
Section I Covered Transactions
(a) For the period from June 18, 1991
to January 12, 1999, the restrictions of
sections 406(a)(1)(A) through (D) and
406(b)(1) and (b)(2) of the Employee
Retirement Security Act of 1974 (ERISA
or the Act) and the taxes imposed by
section 4975(a) and (b) of the Internal
Revenue Code of 1986 (the Code), by
reason of Code section 4975(c)(1)(A)
through (E), shall not apply to the
following foreign exchange transactions,
between a bank or broker-dealer and an
employee benefit plan with respect to
which the bank or broker-dealer is a
trustee, custodian, fiduciary or other
party in interest, pursuant to a standing
instruction, if the conditions set forth in
section II below are met:
(1) An income item conversion; or
(2) A de minimis purchase or sale
transaction.
(b) Effective after January 12, 1999,
the restrictions of sections 406(a)(1)(A)
through (D) and 406(b)(1) and (b)(2) of
the Act and the taxes imposed by
section 4975(a) and (b) of Code, by
reason of Code section 4975(c)(1)(A)
through (E), shall not apply to the
following foreign exchange transactions,
between a bank or broker-dealer, and an
employee benefit plan with respect to
which the bank or broker-dealer is a
trustee, custodian, fiduciary or other
party in interest, pursuant to a standing
instruction, if the conditions set forth in
section III below are met:
(1) An income item conversion; or
(2) A de minimis purchase or sale
transaction.
Section II Retroactive Conditions
(a) At the time the foreign exchange
transaction is entered into, the terms of
the transaction are not less favorable to
the plan than the terms generally
available in comparable arm’s length
foreign exchange transactions between
unrelated parties.
(b) At the time the foreign exchange
transaction is entered into, the terms of
the transaction are not less favorable to
the plan than the terms afforded by the
bank or the broker-dealer in comparable
arm’s length foreign exchange
transactions involving unrelated parties.
(c) Neither the bank, the broker-dealer
nor any foreign affiliate thereof, has any
discretionary authority or control with

respect to the investment of the plan
assets involved in the transaction or
renders investment advice (within the
meaning of 29 CFR 2510.3–21(c)) with
respect to the investment of those assets.
(d) The bank or broker-dealer
maintains at all times written policies
and procedures regarding the handling
of foreign exchange transactions for
plans with respect to which the bank or
broker-dealer is a trustee, custodian,
fiduciary or other party in interest or
disqualified person which assure that
the person acting for the bank or brokerdealer knows that he or she is dealing
with a plan.
(e) The exchange rate used by the
bank or broker-dealer for a particular
foreign exchange transaction did not
deviate by more than 10% (above or
below) the interbank bid and asked rates
at the time of the transaction as
displayed on Reuters or another
independent service in the foreign
currency market for such currency;
provided, however, that a prohibited
transaction shall not be deemed to have
occurred solely because records
demonstrating compliance with this
section with respect to specific
transactions have been lost, destroyed or
are not available to the bank or brokerdealer. Nothing in this section shall be
deemed to relieve the bank or brokerdealer of its responsibility to
demonstrate compliance with the
conditions of this exemption.
(f) A written confirmation statement is
furnished with respect to each covered
transaction to the independent plan
fiduciary that authorized the standing
instruction. The confirmation statement
shall include:
(A) Account name;
(B) Transaction date;
(C) Exchange rates;
(D) Settlement date;
(E) Currencies exchanged;
(i) Identity of foreign currency sold;
(ii) Amount sold;
(iii) Identity of currency purchased;
and
(iv) Amount purchased.
The confirmation shall be issued in
no event more than 5 business days after
execution of the transaction.
Section III Prospective Conditions
(a) At the time the foreign exchange
transaction is entered into, the terms of
the transaction are not less favorable to
the plan than the terms generally
available in comparable arm’s-length
foreign exchange transactions between
unrelated parties.
(b) At the time the foreign exchange
transaction is entered into, the terms of
the transaction are not less favorable to
the plan than the terms afforded by the

bank or broker-dealer in comparable
arm’s-length foreign exchange
transactions involving unrelated parties.
(c) Neither the bank, the brokerdealer, nor any foreign affiliate thereof
has any discretionary authority or
control with respect to the investment of
the plan assets involved in the
transaction or renders investment
advice (within the meaning of 29 CFR
2510.3–21(c)) with respect to the
investment of those assets.
(d) The bank or broker-dealer
maintains at all times written policies
and procedures regarding the handling
of foreign exchange transactions for
plans with respect to which the bank or
broker-dealer is a trustee, custodian,
fiduciary or other party in interest or
disqualified person which assure that
the person acting for the bank or brokerdealer knows that he or she is dealing
with a plan.
(e) The covered transaction is
performed under a written authorization
executed in advance by a fiduciary of
the plan whose assets are involved in
the transaction, which plan fiduciary is
independent of the bank or brokerdealer engaging in the covered
transaction or any foreign affiliate
thereof. The written authorization must
specify:
(1) The identities of the currencies in
which covered transactions may be
executed; and (2) That the authorization
may be terminated by either party
without penalty on no more than ten
days notice.
(f)(1) Income item conversions are
executed within no more than one
business day from the date of receipt of
notice by the bank or broker-dealer that
such items are good funds, and a foreign
custodian which is an affiliate of the
bank or broker-dealer, provides such
notice to the bank or broker-dealer
within ‘‘one business day’’ of its receipt
of good funds;
(2) De minimis purchase and sale
transactions are executed within no
more than one business day from the
date that either the bank or brokerdealer receives notice from a foreign
custodian that the proceeds of a sale of
foreign securities denominated in
foreign currency are good funds, or the
direction to acquire foreign currency
was received by the bank or brokerdealer, and a foreign custodian which is
an affiliate of the bank or broker-dealer,
provides such notice to the bank or
broker-dealer within one business day
of its receipt of good funds from a sale.
(g)(1) At least once each day, at the
time(s) specified in its written policies
and procedures, the bank or brokerdealer establishes either a rate of
exchange or a range of rates to be used

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices
for income item conversions and de
minimis purchase and sale transactions
covered by this exemption.
(2) Income item conversions are
executed at the next scheduled time for
conversions following receipt of notice
by the bank or broker-dealer from the
foreign custodian that such funds are
good funds. If it is the policy of the bank
or broker-dealer to aggregate small
amounts of foreign currency until a
specified minimum threshold amount is
received, then the conversion may take
place at a later time but in no event
more than 24 hours after receipt of
notice.
(3) De minimis purchase and sale
transactions are executed at the next
scheduled time for such transactions
following receipt of either notice that
the sales proceeds denominated in
foreign currency are good funds, or a
direction to acquire foreign currency. If
it is the policy of the bank or brokerdealer to aggregate small transactions
until a specified threshold amount is
received, then the execution may take
place at a later time but in no event
more than 24 hours after receipt of
either notice that the sales proceeds
have been received by the foreign
custodian as good funds, or a direction
to acquire foreign currency.
For purposes of this paragraph (g), the
range of exchange rates established by
the bank or broker-dealer for a particular
foreign currency cannot deviate by more
than three percent [above or below] the
interbank bid and asked rates as
displayed on Reuters or another
nationally recognized independent
service in the foreign exchange market,
for such currency at the time such range
of rates is established by the bank or
broker-dealer.
(h) Prior to the execution of the
authorization referred to in paragraph
(e), the bank or broker-dealer provides
the independent fiduciary with a copy
of the bank’s or broker-dealer’s written
policies and procedures regarding the
handling of foreign exchange
transactions involving income item
conversions and de minimis purchase
and sale transactions. The policies and
procedures must, at a minimum, contain
the following information:
(1) Disclosure of the time(s) each day
that the bank or broker-dealer will
establish the specific rate of exchange or
the range of exchange rates for the
covered transactions to be executed and
the time(s) that such covered
transactions will take place. The bank or
broker-dealer shall include a description
of the methodology that the bank or
broker-dealer uses to determine the
specific exchange rate or range of
exchange rates;

(2) Disclosure that income item
conversions and de minimis purchase
and sale transactions will be executed at
the first scheduled transaction time after
notice that good funds from an income
item conversion or a sale have been
received, or a direction to purchase
foreign currency has been received. To
the extent that the bank or broker-dealer
aggregates small amounts of foreign
currency until a specified minimum
threshold amount is met, a description
of this practice and disclosure of the
threshold amount; and
(3) A description of the process by
which the bank’s or broker-dealer’s
foreign exchange policies and
procedures for income item conversions
and de minimis purchase and sale
transactions may be amended and
disclosed to plans.
(i) The bank or broker-dealer engaging
in the covered transaction furnishes to
the independent fiduciary a written
confirmation statement with respect to
each covered transaction not more than
five business days after execution of the
transaction.
1. With respect to income item
conversions, the confirmation shall
disclose the following information:
(A) Account name;
(B) Date of notice that good funds
were received;
(C) Transaction date;
(D) Exchange rate;
(E) Settlement date;
(F) Identity of foreign currency;
(G) Amount of foreign currency sold;
(H) Amount of U.S. dollars or other
currency credited to the plan; and
2. With respect to de minimis
purchase and sale transactions, the
confirmation shall disclose the
following information:
(A) Account name;
(B) Date of notice that sales proceeds
denominated in foreign currency are
received as good funds or direction to
acquire foreign currency was received;
(C) Transaction date;
(D) Exchange rates;
(E) Settlement date;
(F) Currencies exchanged:
i. Identity of the currency sold;
ii. The amount sold;
iii. Identity of the currency
purchased; and
iv. The amount purchased;
(j) The bank or broker-dealer,
maintains, within territories under the
jurisdiction of the United States
Government, for a period of six years
from the date of the transaction, the
records necessary to enable the persons
described in paragraph (l) of this section
to determine whether the applicable
conditions of this exemption have been
met, including a record of the specific

63509

exchange rate or range of exchange rates
the bank or broker-dealer established
each day for foreign exchange
transactions effected under standing
instructions for income item
conversions and de minimis purchase
and sale transactions. However, a
prohibited transaction will not be
considered to have occurred if, due to
circumstances beyond the bank’s or
broker-dealer’s control, the records are
lost or destroyed prior to the end of the
six-year period, and no party in interest
other than the bank or broker-dealer
shall be subject to the civil penalty that
may be assessed under section 502(i) of
the Act, or the taxes imposed by section
4975(a) and (b) of the Code, if the
records are not maintained by the bank
or broker-dealer, or are not made
available for examination by the bank or
broker-dealer, or its affiliate as required
by paragraph (k) of this section.
(k)(1) Except as provided in
subparagraph (2) of this paragraph and
notwithstanding any provisions of
subsection (a)(2) and (b) of section 504
of the Act, the records referred to in
paragraph (j) of this Section are
available at their customary location for
examination, upon reasonable notice,
during normal business hours by:
(A) Any duly authorized employee or
representative of the Department of
Labor or the Internal Revenue Service.
(B) Any fiduciary of a plan who has
authority to acquire or dispose of the
assets of the plan involved in the foreign
exchange transaction or any duly
authorized employee or representative
of such fiduciary.
(C) Any contributing employer to the
plan involved in the foreign exchange
transaction or any duly authorized
employee or representative of such
employer.
(2) None of the persons described in
subparagraphs (B) and (C) shall be
authorized to examine a bank’s or
broker-dealer’s trade secrets or
commercial or financial information of
a bank or broker-dealer, which is
privileged or confidential.
Section IV Definitions and General
Rules
For purposes of this exemption,
(a) A foreign exchange transaction
means the exchange of the currency of
one nation for the currency of another
nation.
(b) The term standing instruction
means a written authorization from a
plan fiduciary, who is independent of
the bank or broker-dealer engaging in
the foreign exchange transaction and
any foreign affiliate thereof, to the bank
or broker-dealer to effect the
transactions specified therein pursuant

63510

Federal Register / Vol. 63, No. 219 / Friday, November 13, 1998 / Notices

to the instructions provided in such
authorization.
(c) A bank means a bank which is
supervised by the United States or a
State thereof, or any domestic affiliate
thereof.
(d) A broker-dealer means a brokerdealer registered under the Securities
Exchange Act of 1934, or any domestic
affiliate thereof.
(e) A domestic affiliate of a bank or
broker-dealer means any entity which is
supervised by the United States or a
State thereof and which is directly or
indirectly, through one or more
intermediaries, controlling, controlled
by, or under common control with such
bank or broker-dealer.
(f) The term control means the power
to exercise a controlling influence over
the management or policies of a person
other than an individual.
(g) An income item conversion means:
(1) The conversion into U.S. dollars of
an amount which is the equivalent of no
more than 300,000 U.S. dollars of
interest, dividends or other distributions
or payments with respect to a security,
tax reclaims, proceeds from dispositions
of rights, fractional shares or other
similar items denominated in the
currency of another nation that are
received by the bank or broker-dealer on
behalf of the plan from the plan’s
foreign investment portfolio; or (2) the
conversion into any currency as
required and specified by the standing
instruction of an amount which is the
equivalent of no more than 300,000 U.S.
dollars of interest, dividends, or other
distributions or payments with respect
to a security, tax reclaims, proceeds
from dispositions of rights, fractional
shares or other similar items
denominated in the currency of another
nation that are received by the bank or
broker-dealer on behalf of the plan from
the plan’s foreign investment portfolio,
provided that the converted funds are
either transferred to an interest bearing
account which provides a reasonable
rate of interest within 24 hours of the
conversion and held therein pending
reinvestment by the plan or the bank
reinvests such proceeds within 24 hours
of the conversion at the direction of the
plan.
(h) A de minimis purchase or sale
transaction means the purchase or sale
of foreign currencies in an amount of no
more than 300,000 U.S. dollars or the
equivalent thereof in connection with
the purchase or sale of foreign securities
by a plan.
(i) For purposes of this exemption the
term employee benefit plan refers to a
pension plan described in 29 CFR

§ 2510.3–2 and/or a welfare benefit plan
described in 29 CFR § 2510.3–1.
(j) For purposes of this exemption, the
term good funds means funds
immediately available in cash with no
sovereign or other governmental
impediments or restrictions to the
exchange or transfer of such funds.
(k) For purposes of this exemption,
the term business day means a banking
day as defined by federal or state
banking regulations.
(l) For purposes of this exemption, the
term foreign affiliate of a bank or brokerdealer means any non-U.S. entity which
is directly or indirectly, through one or
more intermediaries, controlling,
controlled by, or under common control
with such bank or broker-dealer.
Signed at Washington, DC this 6th day of
November 1998.
Alan D. Lebowitz,
Deputy Assistant Secretary for Program
Operations, Pension and Welfare Benefits
Administration, Department of Labor.
[FR Doc. 98–30291 Filed 11–12–98; 8:45 am]
BILLING CODE 4510–29–P

THE NATIONAL BIPARTISAN
COMMISSION ON THE FUTURE OF
MEDICARE PUBLIC MEETING
Establishment of the Medicare
Commission Included in Chapter 3,
Section 4021 of the Balanced Budget
Act of 1997 Conference Report
The Medicare Commission is charged
with holding public meetings and
publicizing the date, time and location
in the Federal Register.
The National Bipartisan Commission
on the Future of Medicare will hold a
public meeting on Wednesday,
December 2 and possibly on Thursday,
December 3, 1998 at the Dirksen Senate
Office Building, Room 106, Washington,
DC. Please check the Commission’s web
site for additional information: http://
Medicare.Commission.Gov
Wednesday, December 2, 1998
1:00 pm–5:00 pm
Tentative Agenda:
Members of the Commission to discuss
pending issues.
(Tentative date for additional meeting)
Thursday, December 3, 1998
9:30 pm–11:30 am
Tentative Agenda:
Members of the Commission to discuss
pending issues.
If you have any questions, please
contact the Bipartisan Medicare
Commission, ph: 202–252–3380.
Authorized for publication in the
Federal Register by Julie Hasler, Office

Manager, The National Bipartisan
Commission on the Future of Medicare.
I hereby authorize publication of the
Medicare Commission meetings in the
Federal Register.
Julie Hasler,
Office Manager, National Bipartisan Medicare
Commission.
[FR Doc. 98–30342 Filed 11–12–98; 8:45 am]
BILLING CODE 1132–00–M

NUCLEAR REGULATORY
COMMISSION
[Docket No. 50–388]

PP&L, Inc.; Notice of Withdrawal of
Application for Amendment to Facility
Operating License
The U.S. Nuclear Regulatory
Commission (the Commission) has
granted the request of PP&L, Inc. (the
licensee) to withdraw its June 17, 1998,
application for proposed amendment to
Facility Operating License No. NPF–22
for the Susquehanna Steam Electric
Station, Unit 2, located in Luzerne
County, Pennsylvania.
The proposed amendment would
have revised the Susquehanna Steam
Electric Station’s Technical
Specifications (TSs) to add notations to
TSs 3.3.7.5, 4.3.7.5, 3.4.2, and 4.4.2 that
the acoustic monitor for safety relief
valve ‘‘J’’ may be inoperable beginning
June 15, 1998, until the next unit
shutdown of sufficient duration to allow
for containment entry, not to exceed the
ninth refueling and inspection outage
(spring 1999). .
The Commission had previously
issued a Notice of Consideration of
Issuance of Amendment published in
the Federal Register on June 23, 1998
(63 FR 34200). However, by letter dated
July 13, 1998, the licensee withdrew the
proposed change.
For further details with respect to this
action, see the application for
amendment dated June 17, 1998, and
the licensee’s letter dated July 13, 1998,
which withdrew the application for
license amendment. The above
documents are available for public
inspection at the Commission’s Public
Document Room, the Gelman Building,
2120 L Street, NW., Washington, DC,
and at the local public document room
located at the Osterhout Free Library,
Reference Department, 71 South
Franklin Street, Wilkes-Barre, PA 18701.
Dated at Rockville, Maryland, this 5th day
of November 1998.