1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 10 "(2) SAVINGS AND LOAN ASSOCIATIONS.-A savings and loan association meets the requirements of this subsection if such savings and loan association— "(A) has made application for and been granted, by a State or Federal authority having supervision over savings and loan associations, trust powers to manage, acquire, or dispose of assets in a manner and to an extent necessary for maintaining a retirement universal security arrangement, and "(B) has, as of the last day of its most recent fiscal year, equity capital or net worth in excess of $1,000,000. "(3) INSURANCE COMPANIES.-An insurance company meets the requirements of this subsection if such insurance company "(A) is qualified under the laws of more than one State to manage, acquire, or dispose of assets in a manner and to an extent necessary for maintaining a retirement universal security arrangement, and "(B) has, as of the last day of its most recent fiscal year, net worth in excess of $1,000,000. "(4) INVESTMENT ADVISERS. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 "(A) IN GENERAL.-An investment adviser meets the qualification requirements of this sub section if such investment adviser— "(i) such investment adviser has shareholders' or partners' equity in excess of $750,000, or "(ii) payment of all of such investment adviser's liabilities which may arise by reason of a breach or violation of a duty de scribed in subsection (b), in section 5004, or in the provisions made applicable pursuant to section 5102 is unconditionally guaranteed by “(I) a person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is 1 2 3 4 5 6 7 8 9 10 11 12 23 13 14 15 16 12 under common control with such investment adviser, if the investment adviser and such person have, as of the last day of their most recent fiscal year, shareholders' or partners' equity, in the aggregate, in excess of $750,000, "(II) a person described in paragraph (1), (2), or (3) of subsection (a) meeting the requirements of this subsection, or "(III) a broker-dealer registered under the Securities Exchange Act of 1934 which has, as of the last day of its most recent fiscal year, a net worth in excess of $750,000. "(d) REPORTS UPON FAILURE TO MEET REQUIRE 17 MENTS.-A pension asset manager who fails to meet the re18 quirements of subsection (c) shall, not later than 60 days after 19 taking action to avoid a failure described in subsection (b)(2), 20 submit a report to the Secretary of Labor and the Secretary 21 of the Treasury describing in detail, in accordance with 22 applicable regulations, the action taken by the pension asset 23 manager. 24 "(e) DEFINITIONS.-For purposes of this section 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 8 13 "(1) CONTROL.-The term 'control' means the power to exercise a controlling influence over the management or policies of a person other than an individual. “(2) EQUITY CAPITAL.—The term 'equity capital' means common or preferred stock, surplus, undivided profits, contingency reserves, and other capital reserves. "(3) NET WORTH.-The term 'net worth' means capital, paid-in and contributed surplus, unassigned surplus, contingency reserves, group contingency reserves, and special reserves. "(4) SHAREHOLDERS' OR PARTNERS' EQUITY.— The term 'shareholders' or partners' equity' means the equity shown in the most recent balance sheet prepared in accordance with generally accepted accounting principles. 18 "SEC. 5003. TREATMENT AS A QUALIFIED PLAN. 19 “(a) IN GENERAL.-Except as provided in subsection 20 (c), for purposes of the Internal Revenue Code of 1954 and 21 any other provision of law, a retirement universal security 22 arrangement 23 "(1) shall be considered to be a trust 14 “(A) which meets the requirements for quali fication applicable to trusts under section 401(a) of such Code, and "(B) which is exempt from taxation under section 501(a) of such Code, and "(2) shall be considered to be a plan with respect to which the requirements for qualification under sec tion 401(a) of such Code have been met. "(b) QUALIFICATION DETERMINATIONS. "(1) IN GENERAL.-For purposes of meeting the qualification requirements of paragraph (2) (necessary for obtaining the determination under paragraph (3) required under section 5001(a)(4)), any pension asset manager may apply to the Secretary of the Treasury for a determination of whether, in connection with any plan established and maintained by such pension asset manager, such requirements are met. An application for such a determination shall be made in such form and manner as may be prescribed in regulations of the Secretary of the Treasury, except that such application may be made at any time before the effective date of the plan or of any amendment thereto. "(2) QUALIFICATION REQUIREMENTS.-The qualification requirements of this paragraph are the requirements relating to retirement universal security |