SECTION 9. SELF-CORRECTION

OF SIGNIFICANT OPERATIONAL FAILURES

.01 Requirements . The requirements of this section 9 are satisfied with respect to an Operational Failure (even if significant) if the Operational Failure is corrected and the correction is either completed or substantially completed (in accordance with section 9.03) by the last day of the correction period described in section 9.02.

.02 Correction period . (1) End of cor- rection period . The last day of the correction period for an Operational Failure is the last day of the second plan year following the plan year for which the failure occurred. However, in the case of a failure to satisfy the requirements of § 401(k)(3), 401(m)(2), or, for plan years beginning on or before December 31, 2001, the multiple use test of § 401(m)(9), the correction period does not end until the last day of the second plan year following the plan year that includes the last day of the additional period for correction permitted under § 401(k)(8) or 401(m)(6). If a 403(b) Plan does not have a designated plan year, the plan year is deemed to be the calendar year for purposes of this section 9.02. See section 6.02(5)(d)(ii) for a limited extension of the correction period set forth in this paragraph for Plan Sponsors taking action to locate lost participants.

(2) Extension of correction period for Transferred Assets . In the case of an Operational Failure that relates only to