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Full Version: Bank Directed Trustee and also lender to Employer not the plan.
BenefitsLink Message Boards > Retirement Plans > Employee Stock Ownership Plans (ESOPs)
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).
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