Trust Deed

[Lori Foresz]

I'm not sure where to post this but came across a unique situation. A DB plan purchased a trust deed from a participant who happens to be the 100% owner of the employer who sponsors the plan.

1. Is this a participant loan subject to the rules of 72p?

2. If not, then is this a prohibited transaction (sale between the plan and a party in interest).

I don't see trust deeds much and wasn't able to find any information in any of my research guides.

If anyone has experiene with trust deeds and the rules, please let me know what you think.

Many thanks