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2026-07-06 10:51:44 -04:00

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LegalText 29 U.S.C. § 1106 Prohibited transactions us united_states_code code_section 29 LABOR 18 EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM 1106 29 U.S.C. § 1106 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc29@119-100.zip /us/usc/t29/s1106 data/legal/raw/us/code/title-29/usc29.xml dc0eab149fc2c5ce72129c7660893e40e9a516061ee20330f0b988654d40a95e 123f65eaf0f6719b01d66f4a47cd03d5134b66fbd92ae96d7387b67454b98476 8c2926e52c281a03c2d52042b6e8562151183e3d452c58ae8aa8da3d6ed251e1 2026-07-04 official
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29 U.S.C. § 1106 - Prohibited transactions

Text

(a) Transactions between plan and party in interest Except as provided in section 1108 of this title:

(1) A fiduciary with respect to a plan shall not cause the plan to engage in a transaction, if he knows or should know that such transaction constitutes a direct or indirect—

(A) sale or exchange, or leasing, of any property between the plan and a party in interest;

(B) lending of money or other extension of credit between the plan and a party in interest;

(C) furnishing of goods, services, or facilities between the plan and a party in interest;

(D) transfer to, or use by or for the benefit of a party in interest, of any assets of the plan; or

(E) acquisition, on behalf of the plan, of any employer security or employer real property in violation of section 1107(a) of this title.

(2) No fiduciary who has authority or discretion to control or manage the assets of a plan shall permit the plan to hold any employer security or employer real property if he knows or should know that holding such security or real property violates section 1107(a) of this title.

(b) Transactions between plan and fiduciary A fiduciary with respect to a plan shall not—

(1) deal with the assets of the plan in his own interest or for his own account,

(2) in his individual or in any other capacity act in any transaction involving the plan on behalf of a party (or represent a party) whose interests are adverse to the interests of the plan or the interests of its participants or beneficiaries, or

(3) receive any consideration for his own personal account from any party dealing with such plan in connection with a transaction involving the assets of the plan.

(c) Transfer of real or personal property to plan by party in interest A transfer of real or personal property by a party in interest to a plan shall be treated as a sale or exchange if the property is subject to a mortgage or similar lien which the plan assumes or if it is subject to a mortgage or similar lien which a party-in-interest placed on the property within the 10-year period ending on the date of the transfer.

(Pub. L. 93406, title I, § 406, Sept. 2, 1974, 88 Stat. 879.)