Build a file on party-in-interest dealings and the plan's investment duties
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- List each proposed dealing, the other party, and whether the file says that party is a party in interest. Do not decide that an exemption applies.
- What the lawyer must review
- Except as section 1108 provides, 29 U.S.C. § 1106(a)(1) forbids a fiduciary who knows or should know the facts to cause the plan to sell, exchange or lease property with a party in interest, to lend to or borrow from a party in interest, to furnish goods, services or facilities with a party in interest, or to transfer or use plan assets for a party in interest. A transfer of property to the plan is treated as a sale or exchange under § 1106(c) if the plan assumes a mortgage or similar lien, or if a party in interest placed that lien within the 10 years ending on the transfer. Section 1106(b) forbids the fiduciary to deal with plan assets for the fiduciary's own account, to act for an adverse party, or to receive personal consideration from a party dealing with the plan. Section 1104(a)(1) still requires prudence and diversification. Section 1108 and section 1107 were not opened. Do not name an exemption or a percentage holding limit. You decide whether a dealing is prohibited and whether an exemption applies.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.