Page:United States Statutes at Large Volume 120.djvu/1001

 120 STAT. 970

PUBLIC LAW 109–280—AUG. 17, 2006 in subparagraph (F), (G), (H), or (I) of section 3(14), or both, but only if in connection with such transaction the plan receives no less, nor pays no more, than adequate consideration. ‘‘(B) For purposes of this paragraph, the term ‘adequate consideration’ means— ‘‘(i) in the case of a security for which there is a generally recognized market— ‘‘(I) the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934, taking into account factors such as the size of the transaction and marketability of the security, or ‘‘(II) if the security is not traded on such a national securities exchange, a price not less favorable to the plan than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of the party in interest, taking into account factors such as the size of the transaction and marketability of the security, and ‘‘(ii) in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by a fiduciary or fiduciaries in accordance with regulations prescribed by the Secretary.’’. (2) AMENDMENT TO INTERNAL REVENUE CODE OF 1986.— (A) IN GENERAL.—Subsection (d) of section 4975 of the Internal Revenue Code of 1986 (relating to exemptions), as amended by subsection (c), is amended by striking ‘‘or’’ at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting ‘‘, or’’, and by adding at the end the following new paragraph: ‘‘(20) transactions described in subparagraphs (A), (B), and (D) of subsection (c)(1) between a plan and a person that is a party in interest other than a fiduciary (or an affiliate) who has or exercises any discretionary authority or control with respect to the investment of the plan assets involved in the transaction or renders investment advice (within the meaning of subsection (e)(3)(B)) with respect to those assets, solely by reason of providing services to the plan or solely by reason of a relationship to such a service provider described in subparagraph (F), (G), (H), or (I) of subsection (e)(2), or both, but only if in connection with such transaction the plan receives no less, nor pays no more, than adequate consideration.’’. (B) SPECIAL RULE RELATING TO SERVICE PROVIDERS.— Subsection (f) of section 4975 of such Code (relating to other definitions and special rules), as amended by subsection (a), is amended by adding at the end the following new paragraph: ‘‘(10) ADEQUATE CONSIDERATION.—The term ‘adequate consideration’ means— ‘‘(A) in the case of a security for which there is a generally recognized market— ‘‘(i) the price of the security prevailing on a national securities exchange which is registered under

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

PO 00001

Frm 00968

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

APPS06

PsN: PUBL001

�