[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2570.5]

[Page 526-527]
 
                             TITLE 29--LABOR
 
CHAPTER XXV--PENSION AND WELFARE BENEFITS ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2570--PROCEDURAL REGULATIONS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT--Table of Contents
 
Subpart A--Procedures for the Assessment of Civil Sanctions Under ERISA 
                             Section 502(i)
 
Sec. 2570.5  Consequences of default.

    For prohibited transaction penalty proceedings, this section shall 
apply in lieu of Sec. 18.5(b) of this title. Failure of the respondent 
to file an answer within the 30 day time period provided in Sec. 18.5 of 
this title shall be deemed to constitute a waiver of his right to appear 
and contest the allegations of the notice, and such failure shall be 
deemed

[[Page 527]]

to be an admission of the facts as alleged in the notice for purposes of 
the prohibited transaction penalty proceeding. Such notice shall then 
become the final order of the Secretary, except that the administrative 
law judge may set aside a default entered under this provision where 
there is proof of defective notice.