Schedule E (Form 5500) - Esop Annual Information - 1998 Page 2

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2
Schedule E (Form 5500) 1998
Page
15
Complete the following table for each class of stock owned by the ESOP:
(f)
(c)
(e)
(d)
Dividends used
(b)
Readily
Dividends
(a)
Dividend rate
to repay exempt loan
Common stock (C)
tradable*
paid to
Class of stock
during plan
Preferred stock (P)
Yes (Y)
participants***
year**
(1) allocated
(2) unallocated
No (N)
stock
stock
$
$
$
$
$
$
$
$
$
$
$
$
Totals
$
$
$
*If the stock is readily tradable on an established securities market within the meaning of Code section 409(l), enter “Y,” otherwise enter “N.”
**Dividend rate paid for each class of stock during the plan year.
***Dividends paid directly to or distributed to participants.
General Instructions
under Excise Tax Regulations sections
3. Any loan made on or before July 10,
54.4975-7 and 54.4975-11;
1992, pursuant to a written agreement
entered into before July 10, 1989, if the
Note
b. The repayment terms of the loan from
agreement evidences the intent of the
the corporation to the ESOP are
The Small Business Job Protection Act
borrower to enter, on a periodic basis, into
“substantially similar” (as defined in
(SBJPA) repealed the partial interest exclusion
securities acquisition loans described in Code
Temporary Income Tax Regulations section
of Code section 133 effective, in general, with
section 133(b)(1)(B) (as in effect before
1.133-1T) to the repayment terms of the loan
respect to loans made after August 20, 1996.
December 19, 1989). This rule applies only if
from the corporation to the lender; and
However, Schedule E (Form 5500) must be
one or more securities acquisition loans were
c. If the loan from the corporation to the
filed for securities acquisition loans made to
made to the borrower on or before July 10,
ESOP provides for more rapid repayment of
ESOPs before August 21, 1996, loans made
1989.
principal and interest, the allocations under
pursuant to a written binding contract in
See Act section 7301(f)(2) to determine the
the ESOP attributable to such repayments do
effect before June 10, 1996, and at all times
specific requirements of the transition rules
not discriminate in favor of highly
thereafter before the loan was made, and
described above. See Act section 7301(f)(3)
compensated employees (within the meaning
certain loans made after August 20, 1996, to
through (6) for additional transition rules on
of Code section 414(q)).
refinance a securities acquisition loan
refinancings, collective-bargaining agreements,
originally made on or before August 20, 1996.
Line 7.—An immediate allocation loan is any
filings with the United States, and the 30%
loan to an employer corporation to the extent
test for certain loans.
Purpose of Form
that, within 30 days, employer securities are
Line 9.—If the loan is a back to back loan or
transferred to the ESOP maintained by the
Use this schedule to satisfy the requirements
an immediate allocation loan, enter the
corporation in an amount equal to the
under Code section 6047(e) for an annual
amount of interest paid by the employer
proceeds of the loan and the securities are
information return for an employee stock
corporation to the lender(s) during the plan
allocable to the accounts of plan participants
ownership plan (ESOP).
year.
within one year of the date of the loan. (See
Code section 133(b)(1)(B).)
Line 11b.—The repeal of Code section 133
Who Must File
by Act section 1602 of SBJPA 1996 does not
Line 8c.—The transition rules of Act section
Every employer or plan administrator of a
apply to a refinancing of an ESOP securities
7301(f)(2) through (6) of the Omnibus Budget
pension benefit plan that contains ESOP
acquisition loan made after August 20, 1996
Reconciliation Act of 1989 (OBRA), P.L.
benefits must file a Schedule E (Form 5500).
or pursuant to a binding contract in effect
101-239, provide that the amendments made
before June 10, 1996, if:
to Code section 133 by OBRA will not apply
How To File
to certain loans that satisfy the requirements
1. the refinancing loan meets the
of those paragraphs. In general, the
requirements of Code section 133 in effect on
File Schedule E (Form 5500) annually as an
amendments made by OBRA will not apply
August 20, 1996,
attachment to Form 5500, 5500-C/R, or
to:
5500-EZ.
2. the outstanding principal amount of the
loan is not increased, and
1. Loans made pursuant to a binding
Specific Instructions
written commitment in effect on June 6,
3. the term of the original loan is not
1989, and at all times thereafter before the
extended.
Lines 6 through 11.—A “securities
loan was made, or pursuant to a written
Line 15, column (d).—In determining the
acquisition loan” is an exempt loan to an
binding contract (or tender offer registered
dividend rate for a class of common stock,
ESOP to the extent that the proceeds are
with the Securities and Exchange
use the percentage of the average dividends
used to acquire employer securities for the
Commission (SEC)) in effect on June 6, 1989,
paid on the class of common stock during
plan.
and at all times thereafter before such
the plan year over the average value of the
Line 6.—A “back to back loan” is a securities
securities were acquired;
class of common stock during the plan year.
acquisition loan from a lender to an employer
2. If subparagraph 1 does not apply, loans
In determining the dividend rate for a class
corporation followed by a loan from the
made pursuant to a binding written
of preferred stock, use the dividend rate
corporation to the ESOP maintained by the
commitment in effect on July 10, 1989, and
stated in the terms of the stock, or if a
employer corporation. A “back to back loan”
at all times thereafter before the loan was
dividend rate is not stated, use the
constitutes a “securities acquisition loan”
made, but only to the extent that the
percentage of the average dividends paid on
under Code section 133 if the following
proceeds were used to acquire employer
the class of preferred stock during the plan
requirements are satisfied:
securities pursuant to a certain binding
year over the par value of the class of
a. The loan from the employer corporation
written contract; (or tender offer registered
preferred stock.
to the ESOP qualifies as an exempt loan
with the SEC) in effect on July 10, 1989, and
at all times thereafter before the securities are
acquired;

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