09/26/2024
cannot pay more than adequate consideration (i.e. fair market value (FMV)). and the propose this definition of adequate consideration.
“The price at which an asset would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, and both parties are able, as well as willing, to trade and are well-informed about the asset and the market for that asset.”
Ref: Title I of ERISA and the U.S. Department of Labor (“DOL”) Proposed Regulation Relating to the Definition of Adequate Consideration (Prop. Reg. Section 2510.3-18(b)(2)(i))