Plan mortgage to purchase land

[Guest jrc]

This is my first post ever but I frequently read other posts. I'm not that experienced in plans outside the perverbial box so I'm struggling with this one.

Potential client in Kansas has a 401k/PS Plan for his LLC. Owner is only participant/employee. Uses plan to purchase land but plan takes a mortgage out to pay for land. We understand the PT issues of all expenses/income go thru plan, owner can't be involved in anyway, etc. Also understand that we need to watch for UBTI potential issues. Bank wants the client and client wants bank to take care of plan AND lend the plan the money. Can anyone give me guidance on where in the code sections I might find any reference to how a plan takes out a mortgage?

Currently, owner is trustee. Can owner sign the mortgage papers as trustee and still be considered to keep an arm's length away? Would the loan be a nonrecourse loan to the plan as they can't come back on the plan if land prices dive and can't recoup loan principal in case of default? Is there a limit to how much liability a plan can have?

Probably most important question - does anyone know of a good resource to contact to help navigate thru this in Kansas or Missouri without spending a ton of $$?

Thanks.