72650 Federal Register / Vol. 76, No. 227 / Friday, November 25, 2011 / Proposed Rules 

(2) The term ‘‘most recent financial 

statement available’’ means a covered 

financial company’s: 

(i) Most recent financial statement 

filed with the Securities and Exchange 

Commission or any other regulatory 

body; 

(ii) Most recent financial statement 

audited by an independent CPA firm; or 

(iii) Other available financial 

statements. The FDIC and the Treasury 

will jointly determine the most 

pertinent of the above financial 

statements, taking into consideration the 

timeliness and reliability of the 

statements being considered. 

(3) The term ‘‘obligation’’ means, with 

respect to any covered financial 

company: 

(i) Any guarantee issued by the FDIC 

on behalf of the covered financial 

company; 

(ii) Any amount borrowed pursuant to 

section 210(n)(5)(A) of the Dodd-Frank 

Act; and 

(iii) Any other obligation with respect 

to the covered financial company for 

which the FDIC has a direct or 

contingent liability to pay any amount. 

(4) The term ‘‘total consolidated assets 

of each covered financial company that 

are available for repayment’’ means the 

difference between: 

(i) The total assets of the covered 

financial company on a consolidated 

basis that are available for liquidation 

during the operation of the receivership; 

and 

(ii) To the extent included in 

paragraph (b)(4)(i) of this section, all 

assets that are separated from, or made 

unavailable to, the covered financial 

company by a statutory or regulatory 

barrier that prevents the covered 

financial company from possessing or 

selling assets and using the proceeds 

from the sale of such assets. 

Department of the Treasury 

Authority and Issuance 

For the reasons set forth in the 

preamble, Treasury proposes to amend 

Title 31, Chapter I of the Code of 

Federal Regulations by adding a new 

part 149 as set forth below: 

PART 149—CALCULATION OF 

MAXIMUM OBLIGATION LIMIT 

Sec. 

149.1 Authority and purpose. 

149.2 Definitions. 

149.3 Maximum obligation limitation. 

Authority: 31 U.S.C. 321 and 12 U.S.C. 

5390. 

§ 149.1 Authority and purpose. 

(a) Authority. This part is issued by 

the Federal Deposit Insurance 

Corporation (FDIC) and the Secretary of 

the Department of the Treasury 

(Treasury) under section 210(n)(7) of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Act). 

(b) Purpose. The purpose of this part 

is to issue implementing regulations as 

required by the Act. The part governs 

the calculation of the maximum 

obligation limitation which limits the 

aggregate amount of outstanding 

obligations the FDIC may issue or incur 

in connection with the orderly 

liquidation of a covered financial 

company. 

§ 149.2 Definitions. 

As used in this part: 

Fair value. The term ‘‘fair value’’ 

means the expected total aggregate value 

of each asset, or group of assets that are 

managed within a portfolio of a covered 

financial company on a consolidated 

basis if such asset, or group of assets, 

was sold or otherwise disposed of in an 

orderly transaction. 

Most recent financial statement 

available. (1) The term ‘‘most recent 

financial statement available’’ means a 

covered financial company’s— 

(i) Most recent financial statement 

filed with the Securities and Exchange 

Commission or any other regulatory 

body; 

(ii) Most recent financial statement 

audited by an independent CPA firm; or 

(iii) Other available financial 

statements. 

(2) The FDIC and the Treasury will 

jointly determine the most pertinent of 

the above financial statements, taking 

into consideration the timeliness and 

reliability of the statements being 

considered. 

Obligation. The term ‘‘obligation’’ 

means, with respect to any covered 

financial company— 

(1) Any guarantee issued by the FDIC 

on behalf of the covered financial 

company; 

(2) Any amount borrowed pursuant to 

section 210(n)(5)(A) of the Act; and 

(3) Any other obligation with respect 

to the covered financial company for 

which the FDIC has a direct or 

contingent liability to pay any amount. 

Total consolidated assets of each 

covered financial company that are 

available for repayment. The term ‘‘total 

consolidated assets of each covered 

financial company that are available for 

repayment’’ means the difference 

between: 

(1) The total assets of the covered 

financial company on a consolidated 

basis that are available for liquidation 

during the operation of the receivership; 

and 

(2) To the extent included in 

paragraph (1) of this definition, all 

assets that are separated from, or made 

unavailable to, the covered financial 

company by a statutory or regulatory 

barrier that prevents the covered 

financial company from possessing or 

selling assets and using the proceeds 

from the sale of such assets. 

§ 149.3 Maximum obligation limitation. 

The FDIC shall not, in connection 

with the orderly liquidation of a covered 

financial company, issue or incur any 

obligation, if, after issuing or incurring 

the obligation, the aggregate amount of 

such obligations outstanding for each 

covered financial company would 

exceed— 

(a) An amount that is equal to 10 

percent of the total consolidated assets 

of the covered financial company, based 

on the most recent financial statement 

available, during the 30-day period 

immediately following the date of 

appointment of the FDIC as receiver (or 

a shorter time period if the FDIC has 

calculated the amount described under 

paragraph (b) of this section); and 

(b) The amount that is equal to 90 

percent of the fair value of the total 

consolidated assets of each covered 

financial company that are available for 

repayment, after the time period 

described in paragraph (a) of this 

section. 

Dated at Washington, DC, this 6th day of 

July 2011. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Valerie J. Best, 

Assistant Executive Secretary. 

Dated: November 14, 2011. 

By the Department of the Treasury. 

Alastair Fitzpayne, 

Deputy Chief of Staff and Executive Secretary. 

[FR Doc. 2011–29993 Filed 11–23–11; 8:45 am] 

BILLING CODE 6714–01–P; 4810–25–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2011–0959; Directorate 

Identifier 2011–NE–25–AD] 

RIN 2120–AA64 

Airworthiness Directives; Rolls-Royce 

plc (RR) RB211 Trent 800 Series 

Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 


wreier-aviles on DSK7SPTVN1PROD with PROPOSALS
Federal Register / Vol. 76, No. 227 / Friday, November 25, 2011 / Proposed Rules 72651 

products listed above. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

issued by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

Routine inspections have revealed cracking 

on the head sections of two Trent 800 front 

combustion liners. 

We are proposing this AD to prevent 

uncontained engine failure and damage 

to the airplane. 

DATES: We must receive comments on 

this proposed AD by January 24, 2012. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the instructions for sending your 

comments electronically. 

• Mail: Docket Management Facility, 

U.S. Department of Transportation, 1200 

New Jersey Avenue SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. 

• Fax: (202) 493–2251. 

Contact Rolls-Royce plc, P.O. Box 31, 

Derby, DE24 8BJ, United Kingdom; 

phone: 011 44 1332 242424; fax: 011 44 

1332 249936; email: http://www.rollsroyce.com/contact/civil_team.jsp; or 

Web: https://www.aeromanager.com., 

for the service information identified in 

this proposed AD. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Operations office between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Operations 

office (phone: (800) 647–5527) is the 

same as the Mail address provided in 

the ADDRESSES section. Comments will 

be available in the AD docket shortly 

after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Alan Strom, Aerospace Engineer, Engine 

Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park; Burlington, MA 01803; 

email: alan.strom@faa.gov; phone: (781) 

238–7143; fax: (781) 238–7199. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2011–0959; Directorate Identifier 

2011–NE–25–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD based on those comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact with FAA 

personnel concerning this proposed AD. 

Using the search function of the Web 

site, anyone can find and read the 

comments in any of our dockets, 

including, if provided, the name of the 

individual who sent the comment (or 

signed the comment on behalf of an 

association, business, labor union, etc.). 

You may review the DOT’s complete 

Privacy Act Statement in the Federal 

Register published on April 11, 2000 

(65 FR 19477–78). 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA 

Airworthiness Directive 2011–0080, 

dated May 6, 2011 (referred to after this 

as ‘‘the MCAI’’), to correct an unsafe 

condition for the specified products. 

The MCAI states: 

Routine inspections have revealed cracking 

on the head sections of two Trent 800 front 

combustion liners. 

This condition, if not detected and 

corrected, could lead to hot gas breakout with 

subsequent downstream component release 

potentially leading to uncontained high 

energy debris, possibly resulting in damage 

to the aeroplane or injury to persons on the 

ground. 

We are proposing this AD to prevent 

uncontained engine failure and damage 

to the airplane. 

Relevant Service Information 

Rolls-Royce plc has issued Alert 

Service Bulletin RB.211–72–AG456, 

dated September 9, 2010. The actions 

described in this service information are 

intended to correct the unsafe condition 

identified in the MCAI. 

FAA’s Determination and Requirements 

of This Proposed AD 

This product has been approved by 

the aviation authority of the United 

Kingdom, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with the United 

Kingdom, they have notified us of the 

unsafe condition described in the MCAI 

and service information referenced 

above. We are proposing this AD 

because we evaluated all information 

provided by EASA, and determined the 

unsafe condition exists and is likely to 

exist or develop on other products of the 

same type design. 

Costs of Compliance 

We estimate that this proposed AD 

would affect about 125 products of U.S. 

registry. We also estimate that it would 

take about 10 work-hours per product to 

inspect and 10 additional work-hours 

for those combustion liners that require 

replacement. The average labor rate is 

$85 per work-hour. Required parts 

would cost about $525,000 per product. 

We expect that four front combustion 

liners will require replacement. Based 

on these figures, we estimate the cost of 

the proposed AD on U.S. operators to be 

$2,209,650. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 


wreier-aviles on DSK7SPTVN1PROD with PROPOSALS
72652 Federal Register / Vol. 76, No. 227 / Friday, November 25, 2011 / Proposed Rules 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

Rolls-Royce plc: Docket No. FAA–2011– 

0959; Directorate Identifier 2011–NE– 

25–AD. 

(a) Comments Due Date 

We must receive comments by January 24, 

2012. 

(b) Affected Airworthiness Directives (ADs) 

None. 

(c) Applicability 

This AD applies to Rolls-Royce plc (RR) 

RB211 Trent 800 turbofan engines, all 

models, all serial numbers. 

(d) Reason 

(1) This AD results from mandatory 

continuing airworthiness information (MCAI) 

issued by an aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as: 

Routine inspections have revealed cracking 

on the head sections of two Trent 800 front 

combustion liners. 

This condition, if not detected and 

corrected, could lead to hot gas breakout with 

subsequent downstream component release 

potentially leading to uncontained high 

energy debris, possibly resulting in damage 

to the aeroplane or injury to persons on the 

ground. 

(2) We are issuing this AD to prevent 

uncontained engine failure and damage to 

the airplane. 

(e) Actions and Compliance 

Unless already done, do the following 

actions. 

(f) Initial Inspection 

(1) Within 1,000 flight cycles (FCs) after 

the effective date of this AD, inspect the front 

combustion liner head section for cracking. 

Use paragraph 3.A, except for 3.A.(1)(a)(i), of 

the On-Wing Accomplishment Instructions of 

RR Alert Service Bulletin (ASB) RB.211–72– 

AG456, dated September 9, 2010, to do your 

inspections. 

(2) If you find cracking, remove the front 

combustion liner head section from service at 

the next shop visit. Until the next shop visit, 

take the corrective actions listed in Table 1 

of this AD, as applicable. 

TABLE 1—INSPECTION FINDINGS AND FOLLOW-ON ACTIONS

Inspection findings Action(s) and compliance time(s) 

(i) Cumulative crack length up to 150 mm (up to 2 heatshields) .......................... Reduce the inspection intervals to 250 FCs. 

(ii) Cumulative crack length 150 mm to 300 mm (up to 4 heatshields) ................ Reduce the inspection intervals to 100 FCs. 

(iii) Cumulative crack length 300 mm to 450 mm (up to 6 heatshields) ............... Remove the engine within 50 FCs. 

(iv) Cumulative crack length 450 mm to 900 mm (up to 12 heatshields) ............. Replace the engine within 5 FCs. 

(v) Cumulative crack length greater than 900 mm (more than 12 heatshields) ... Replace the engine before next flight. 

(g) Repetitive Inspections 

(1) At intervals not to exceed 2,000 FCs, 

inspect the front combustion liner head 

section for cracking. Use paragraph 3.A, 

except for 3.A.(1)(a)(i), of the On-Wing 

Accomplishment Instructions of RR ASB 

RB.211–72–AG456, dated September 9, 2010, 

to do your inspection. 

(i) If you find cracking, remove the front 

combustion liner head section at the next 

shop visit. Until the next shop visit, take the 

corrective actions as detailed in Table 1 of 

this AD, as applicable. 

(2) For engines not found to have cracks in 

the front combustion liner head section in 

accordance with paragraphs (f)(1), (f)(2), or 

(g)(1) of this AD, at every shop visit after the 

effective date of this AD, inspect the front 

combustion liner head section for cracking. 

Use paragraph B.(2), except B.(2)(a)(i), of the 

In-shop Accomplishment Instructions of RR 

ASB RB.211–72–AG456, dated September 9, 

2010, to do the inspections. 

(3) Accomplishment of a shop visit 

inspection as required by paragraph (g)(2) of 

this AD may substitute for the 

accomplishment of an on-wing inspection as 

required by paragraph (f)(1) or (g)(1) of this 

AD. 

(h) Definition of Shop Visit 

For the purpose of this AD, the term shop 

visit means the induction of an engine into 

the shop for maintenance where the front 

combustion liner is exposed or when the 

engine has been removed from service as a 

result of paragraph (f)(2) or (g)(1)(i) of this 

AD. 

(i) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. 

(j) Related Information 

(1) Refer to MCAI Airworthiness Directive 

2011–0080, dated May 6, 2011, and RR ASB 

RB.211–72–AG456, dated September 9, 2010, 

for related information. Contact Rolls-Royce 

plc, P.O. Box 31, Derby, DE24 8BJ, United 

Kingdom; phone: 011 44 1332 242424; fax: 

011 44 1332 249936; email: http://www.rollsroyce.com/contact/civil_team.jsp; or Web: 

https://www.aeromanager.com., for a copy of 

this service information. 

(2) Contact Alan Strom, Aerospace 

Engineer, Engine Certification Office, FAA, 

Engine & Propeller Directorate, 12 New 

England Executive Park; Burlington, MA 

01803; email: alan.strom@faa.gov; phone: 

(781) 238–7143; fax: (781) 238–7199, for 

more information about this AD. 

Issued in Burlington, Massachusetts, on 

November 10, 2011. 

Peter A. White, 

Manager, Engine & Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2011–30060 Filed 11–23–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–102988–11] 

RIN 1545–BK05 

Basis Reporting by Securities Brokers 

and Basis Determination for Debt 

Instruments and Options 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 


wreier-aviles on DSK7SPTVN1PROD with PROPOSALS