Bank Directed Trustee and also lender to Employer not the plan.

[Guest DUKE C]

I know you should not be trustee, if your banking organization has the loan for the shares, but are there any problems in a situation like this?

The plan is not a leveraged ESOP. Employer wants us to take over as a Directed Trustee. Employer also has a relationship with the commercial side of our banking organization. The current trustee apparently does not want to continue the relationship. The Information I have received states this plan is too small for current trustee. I don't know of any other problems in this plan.

What pitfalls would you foresee in a relationship like this?

[Kirk Maldonado]

You might want to look at DOL Advisory Opinion 76-32 (January 13, 1976).