2026-03827NoticeWallet

Oklahoma Union Fund Gets Exemption for Machinery Loan

Published Date: 2/26/2026

Notice

Summary

The International Union of Operating Engineers Local 627 Training Fund in Oklahoma City got the green light to borrow money at a low interest rate to buy heavy machinery. This deal, effective February 26, 2026, helps the fund grow while protecting its members’ interests. An independent expert will watch over the loan to keep everything fair and square.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Fee and Repossession Protections

The Plan will not pay any fees or expenses (including prepayment penalties) in connection with the loans, except reasonable direct expenses for the Independent Fiduciary and Independent Appraiser. If the Plan defaults, Local 627 may repossess the equipment after 30 days' prior written notice; the Plan will not be liable for repossession costs or any remaining loan balance. If repossessed equipment's fair market value exceeds the loan balance, Local 627 must pay the excess to the Plan within 30 days.

Loans Allowed to Buy Training Equipment

As of February 26, 2026, the Department exempted the International Union of Operating Engineers Local 627 to make one or more loans to the Local 627 Training Fund so the Plan can purchase heavy machinery used solely for apprenticeship training. The exemption covers the loans, the Plan's repayment, and the Plan granting a security interest in the purchased equipment, subject to the conditions in Section II of the exemption.

Two-Point Below Prime Interest Rule

Each loan must carry an interest rate equal to two percentage points below the U.S. Prime Lending Rate, but the interest rate for any loan cannot be less than 1% nor greater than 3%. At the time a loan is made, the loan rate also may not exceed the rate on a substantially similar loan obtainable from an unrelated third-party lender.

Independent Fiduciary Oversight & Reporting

An Independent Fiduciary, prudently selected by the Employer Trustees, must approve and monitor each loan, verify ongoing compliance with the exemption, and represent the Plan's interests. The Independent Fiduciary must notify the Department by email within seven (7) calendar days if it discovers conduct violating the exemption and must prepare an Annual Summary Report delivered to the Department and the Plan's trustees by March 31 following the year covered. Employer Trustees must notify the Department within 15 business days of termination of the Independent Fiduciary and may not retain a replacement without following the Department's approval process.

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Key Dates

Published Date
2/26/2026

Department and Agencies

Department
Independent Agency
Agency
Labor Department
Employee Benefits Security Administration
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