[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: 29CFR2580.412-34]

[Page 569]
 
                             TITLE 29--LABOR
 
CHAPTER XXV--PENSION AND WELFARE BENEFITS ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580--TEMPORARY BONDING RULES--Table of Contents
 
Subpart G--Prohibition Against Bonding by Parties Interested in the Plan
 
Sec. 2580.412-34  General.

    The purpose of section 13(c), as shown by its legislative history, 
is similar to a closely related provision contained in section 502(a) of 
the Labor-Management Reporting and Disclosure Act of 1959 (73 Stat. 536; 
29 U.S.C. 502(a)). The fundamental purpose of Congress under 13(c) is to 
insure against potential abuses arising from significant financial or 
other influential interests affecting the objectivity of the plan or 
parties in interest in the plan and agents, brokers, or surety or other 
companies, in securing and providing the bond specified in section 
13(a). As will be explained more fully below, this prohibition, however, 
was not intended to preclude the placing of bonds through or with 
certain parties in interest in plans which provide a variety of services 
to the plan, one of which is a bonding service.