Advisory Opinion 93-35A

This document is about an advisory opinion from the U.S. Department of Labor regarding the use of proceeds from the sale of employer stock held by an employee stock ownership plan (ESOP) to repay a loan to the ESOP that is exempt under ERISA Section 408(b)(3). The Department concludes that while the ERISA regulations limit the assets that can be used to service the exempt loan, the plan fiduciary may use other plan assets to repay the loan, subject to the general fiduciary duties under ERISA.