4710 Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Proposed Rules 

Agency determines is necessary to cover 

projected shortfalls. 

(4) An appraisal of the project as built. 

Upon a lender’s written request, the 

Agency may exempt a project from this 

requirement if requested by the lender 

and the project meets the following 

criteria: 

(i) Original appraisal—an original 

appraisal that meets Agency’s appraisal 

requirements with a valuation date no 

older than 36 months; 

(ii) Valuation—the appraisal’s lowest 

valuation regardless of valuation 

approach and rent restrictions 

considered, is greater than the section 

538 guaranteed loan amount; and 

(iii) Guaranteed loan balance—the 

Agency’s guaranteed loan’s principal 

balance does not exceed 50 percent 

[unless a different percent has been 

announced in a Notice published in the 

Federal Register] of the project’s total 

development costs. 

(5) A certificate of substantial 

completion; 

(6) A certificate of occupancy or 

similar evidence of local approval; 

(7) A final inspection conducted by a 

qualified Agency representative; 

(8) A final cost certification in a form 

acceptable to the Agency; 

(9) A submission to the Agency of the 

complete closing docket; 

(10) A certification by the lender that 

the project has reached an acceptable 

minimum level occupancy; 

(11) An executed regulatory 

agreement; 

(12) The Lender certifies that it has 

approved the borrower’s management 

plan and assures that the borrower is in 

compliance with Agency standards 

regarding property management, 

contained in subparts E and F of this 

part; 

(13) Necessary information to 

complete an updated necessary 

assistance review by the Agency; and 

(14) Compliance with all conditions 

contained in the conditional 

commitment for guarantee. 

* * * * * 

Subpart J—Assignment, Conveyance, 

and Claims 

§ 3565.457 [Amended] 

8. Section 3565.457 is amended in 

paragraph (c)(1) by revising the word 

‘‘collectibility’’ to read ‘‘collectability.’’ 

Dated: January 21, 2010. 

Tammye Trevin ̆ o 

Administrator, Rural Housing Service. 

[FR Doc. 2010–1792 Filed 1–28–10; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–1212; Directorate 

Identifier 2008–NM–167–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus Model 

A330–200 and –300 Series Airplanes 

and A340–200, –300, –500, and –600 

Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above that would 

supersede an existing AD. This 

proposed AD results from mandatory 

continuing airworthiness information 

(MCAI) originated 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: The revision 00 

of the AIRBUS A330 ALS 

[Airworthiness Limitations Section] Part 

3 was issued primarily to introduce two 

new CMR [Certification Maintenance 

Requirements] tasks, referenced 

282400–G0001–1–C and 282400– 

P0001–1–C. ALS Part 3 Revision 01 

introduces more restrictive 

requirements for aircraft configurations 

already in service. The unsafe condition 

is safety-significant latent failures that 

would, in combination with one or more 

other specific failures or events, result 

in a hazardous or catastrophic failure 

condition. The proposed AD would 

require actions that are intended to 

address the unsafe condition described 

in the MCAI. 

DATES: We must receive comments on 

this proposed AD by March 15, 2010. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–40, 1200 New Jersey Avenue, SE., 

Washington, DC, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this proposed AD, contact Airbus SAS— 

Airworthiness Office—EAL, 1 Rond 

Point Maurice Bellonte, 31707 Blagnac 

Cedex, France; telephone +33 5 61 93 36 

96; fax +33 5 61 93 45 80, e-mail 

airworthiness.A330-A340@airbus.com; 

Internet http://www.airbus.com. You 

may review copies of the referenced 

service information at the FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue, SW., Renton, Washington. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221 or 425–227–1152. 

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 (telephone (800) 647–5527) is in 

the ADDRESSES section. Comments will 

be available in the AD docket shortly 

after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Vladimir Ulyanov, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–1138; fax (425) 227–1149. 

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–2009–1212; Directorate Identifier 

2008–NM–167–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 have lengthened the 30-day 

comment period for proposed ADs that 

address MCAI originated by aviation 

authorities of other countries to provide 

adequate time for interested parties to 

submit comments. The comment period 

for these proposed ADs is now typically 

45 days, which is consistent with the 

comment period for domestic transport 

ADs. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Proposed Rules 4711 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

On February 22, 2007, we issued AD 

2007–05–08, Amendment 39–14969 (72 

FR 9658, March 5, 2007). That AD 

required actions intended to address an 

unsafe condition on the products listed 

above. 

Since we issued AD 2007–05–08, the 

European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA 

Airworthiness Directive 2008–0138, 

dated July 23, 2008 (referred to after this 

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

condition for the specified products. 

The MCAI states: 

The Certification Maintenance 

Requirements (CMR) were given in the 

AIRBUS A330 CMR Document up to revision 

19, and referenced in the Airworthiness 

Limitations Section (ALS) Part 3 Revision 00. 

The content of the CMR Document has been 

recently transferred into the ALS Part 3, 

which is approved by the European Aviation 

Safety Agency (EASA). 

The revision 00 of the AIRBUS A330 ALS 

Part 3 was issued primarily to introduce two 

new CMR tasks, referenced 282400–G0001– 

1–C and 282400–P0001–1–C. The 

compliance times associated to these two 

tasks are re-stated in the Record Of Revisions 

(ROR) of the ALS Part 3 Revision 01. 

ALS Part 3 Revision 01 introduces more 

restrictive requirements for aircraft 

configurations already in service. 

EASA AD 2006–0224 [which corresponds 

to FAA AD 2007–05–08 and includes Model 

A340 airplanes], mandating compliance with 

the requirements of the A330 CMR Document 

at issue 19, is therefore superseded by this 

AD. 

The unsafe condition is safetysignificant latent failures that would, in 

combination with one or more other 

specific failures or events, result in a 

hazardous or catastrophic failure 

condition. The required actions also 

include deleting Airbus A330 CMR Task 

272400–00001–1–C and adding new 

Task 272400–00003–1–C. You may 

obtain further information by examining 

the MCAI in the AD docket. 

Relevant Service Information 

Airbus has issued Airbus A330 ALS 

Part 3—Certification Maintenance 

Requirements (CMR), Revision 01, 

including Appendices 1 and 2, dated 

May 7, 2008. 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 another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with the State of 

Design Authority, we have been notified 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all pertinent 

information and determined an unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Differences Between This AD and the 

MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have proposed 

different actions in this AD from those 

in the MCAI in order to follow FAA 

policies. Any such differences are 

highlighted in a Note within the 

proposed AD. 

Costs of Compliance 

Based on the service information, we 

estimate that this proposed AD would 

affect about 43 products of U.S. registry. 

The actions that are required by AD 

2007–05–08 and retained in this 

proposed AD take about 1 work-hour 

per product, at an average labor rate of 

$80 per work hour. Based on these 

figures, the estimated cost of the 

currently required actions is $80 per 

product. 

We estimate that it would take about 

1 work-hour per product to comply with 

the new basic requirements of this 

proposed AD. The average labor rate is 

$80 per work-hour. Based on these 

figures, we estimate the cost of the 

proposed AD on U.S. operators to be 

$3,440, or $80 per product. 

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. 

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 

removing Amendment 39–14969 (72 FR 

9658, March 5, 2007) and adding the 

following new AD: 

Airbus: Docket No. FAA–2009–1212; 

Directorate Identifier 2008–NM–167–AD. 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS
4712 Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Proposed Rules 

Comments Due Date 

(a) We must receive comments by March 

15, 2010. 

Affected ADs 

(b) The proposed AD supersedes AD 2007– 

05–08, Amendment 39–14969. 

Applicability 

(c) This AD applies to all Airbus Model 

A330–201, –202, –203, –223, –243, –301, 

–302, –303, –321, –322, –323, –341, –342, 

and –343 series airplanes; Model A340–211, 

–212, –213, –311, –312, –313 series airplanes; 

and Model A340–541, and –642 series 

airplanes, certificated in any category; all 

serial numbers. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 05. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

The Certification Maintenance 

Requirements (CMR) were given in the 

AIRBUS A330 CMR Document up to revision 

19, and referenced in the Airworthiness 

Limitations Section (ALS) Part 3 Revision 00. 

The content of the CMR Document has been 

recently transferred into the ALS Part 3, 

which is approved by the European Aviation 

Safety Agency (EASA). 

The revision 00 of the AIRBUS A330 ALS 

Part 3 was issued primarily to introduce two 

new CMR tasks, referenced 282400–G0001– 

1–C and 282400–P0001–1–C. The 

compliance times associated to these two 

tasks are re-stated in the Record of Revisions 

(ROR) of the ALS Part 3 Revision 01. 

ALS Part 3 Revision 01 introduces more 

restrictive requirements for aircraft 

configurations already in service. 

EASA AD 2006–0224 [which corresponds 

to FAA AD 2007–05–08 and includes Model 

A340 airplanes], mandating compliance with 

the requirements of the A330 CMR Document 

at issue 19, is therefore superseded by this 

AD. 

The unsafe condition is safety-significant 

latent failures that would, in combination 

with one or more other specific failures or 

events, result in a hazardous or catastrophic 

failure condition. The required actions also 

include deleting Airbus A330 CMR Task 

272400–00001–1–C and adding new Task 

272400–00003–1–C. 

Note 1: This AD requires revisions to 

certain operator maintenance documents to 

include new inspections. Compliance with 

these inspections is required by 14 CFR 

91.403(c). For airplanes that have been 

previously modified, altered, or repaired in 

the areas addressed by these inspections, the 

operator may not be able to accomplish the 

inspections described in the revisions. In this 

situation, to comply with 14 CFR 91.403(c), 

the operator must request approval for an 

alternative method of compliance according 

to paragraph (h) of this AD. The request 

should include a description of changes to 

the required inspections that will ensure the 

continued damage tolerance of the affected 

structure. The FAA has provided guidance 

for this determination in Advisory Circular 

(AC) 25–1529–1. 

Restatement of Requirements of AD 2007– 

05–08 

Revise the Airworthiness Limitations 

Section of the Instructions for Continued 

Airworthiness 

(f) Unless already done: Within 90 days 

after April 9, 2007 (the effective date of AD 

2007–05–08), revise the Airworthiness 

Limitations section of the Instructions for 

Continued Airworthiness by incorporating 

Airbus A330 Certification Maintenance 

Requirements, Document 955.2074/93, Issue 

19, dated March 22, 2006 (for all Model A330 

airplanes); or Airbus A340 Certification 

Maintenance Requirements, Document 

955.3019/92, Issue 14, dated December 19, 

2005 (for all Model A340 airplanes). 

Accomplish the actions specified in the 

applicable CMR at the times specified in the 

applicable CMR and in accordance with the 

applicable CMR, except as provided by 

paragraphs (f)(1), (f)(2), (f)(3), and (f)(4) of 

this AD. 

(1) The associated interval for any new task 

is to be counted from April 9, 2007. 

(2) The associated interval for any revised 

task is to be counted from the previous 

performance of the task. 

(3) For Model A340 airplanes that have 

exceeded the more restrictive limitations of 

Airbus A340 Certification Maintenance 

Requirements, Document 955.3019/92, Issue 

14, Maintenance Significant Items (MSI) 

21.28.00 and 21.43.00: Do the task within 

2,500 flight hours after the previous 

accomplishment. Repeat the task thereafter at 

the applicable interval in the Airbus A340 

Certification Maintenance Requirements, 

Document 955.3019/92, Issue 14. 

(4) For Model A340 airplanes that have 

accumulated more than 2,700 flight hours 

since the last maintenance done in 

accordance with Airbus A340 Certification 

Maintenance Requirements, Document 

955.3019/92, Issue 14, MSI 28.24.00: Do the 

next task within 800 flight hours after April 

9, 2007. Repeat the task thereafter at the 

applicable interval in the Airbus A340 

Certification Maintenance Requirements, 

Document 955.3019/92, Issue 14. 

New Requirements of This AD 

Actions and Compliance 

(g) Unless already done, for Airbus Model 

A330–201, –202, –203, –223, –243, –301, 

–302, –303, –321, –322, –323, –341, –342, 

and –343 series airplanes: Within 90 days of 

the effective date of this AD, revise the 

Airworthiness Limitations section (ALS) of 

the Instructions for Continued Airworthiness 

by incorporating Airbus A330 ALS, Part 3— 

Certification Maintenance Requirements 

(CMR), Revision 01, dated May 7, 2008. 

Accomplish the actions specified in Airbus 

A330 Airworthiness Limitations Section 

(ALS), Part 3—Certification Maintenance 

Requirements (CMR), Revision 01, dated May 

7, 2008, at the times specified in the Airbus 

A330 ALS—Part 3—Certification 

Maintenance Requirements (CMR), Revision 

01, dated May 7, 2008, and in accordance 

with the Airbus A330 Airworthiness 

Limitations Section (ALS), Part 3— 

Certification Maintenance Requirements 

(CMR), Revision 01, dated May 7, 2008, 

except as provided by paragraphs (g)(1), 

(g)(2), (g)(3), and (g)(4) of this AD. Doing this 

revision terminates the requirements of 

paragraph (f) of this AD for that airplane 

only. 

(1) The associated interval for any new task 

is to be counted from the effective date of this 

AD. 

(2) The associated interval for any revised 

task is to be counted from the previous 

performance of the task. 

(3) Delete the Airbus A330 CMR Task 

272400–00001–1–C ‘‘Remove Rudder Servo 

Controls for Workshop Check of Internal 

Seals.’’ 

(4) Add the new Airbus A330 CMR Task 

272400–00003–1–C ‘‘Functional Check of 

Rudder Individual Servo Controls.’’ This task 

must be accomplished before the airplane 

accumulates 50,000 total flight hours, or 

within 90 days after the effective date of this 

AD, whichever occurs later. 

FAA AD Differences 

Note 2: This AD differs from the MCAI 

and/or service information as follows: No 

differences. 

Other FAA AD Provisions 

(h) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Vladimir 

Ulyanov, Aerospace Engineer, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, 1601 Lind Avenue, SW., 

Renton, Washington 98057–3356; telephone 

(425) 227–1138; fax (425) 227–1149. Before 

using any approved AMOC on any airplane 

to which the AMOC applies, notify your 

principal maintenance inspector (PMI) or 

principal avionics inspector (PAI), as 

appropriate, or lacking a principal inspector, 

your local Flight Standards District Office. 

The AMOC approval letter must specifically 

reference this AD. AMOCs approved 

previously in accordance with AD 2007–05– 

08, Amendment 39–14969, are approved as 

AMOCs for the corresponding requirements 

of this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 


cprice-sewell on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Proposed Rules 4713 

1Securities Exchange Act Release No. 19244 

(Nov. 17, 1982), 47 FR 53333, 53334 (Nov. 26, 1982) 

(‘‘1982 Adopting Release’’). See also Gustavo 

Grullon and David L. Ikenberry, ‘‘What Do We 

Know About Stock Repurchases?,’’ 13 Journal of 

Applied Corporate Finance, pp. 31–51 (2000) 

(noting issuers repurchase their stock for several 

reasons, including to convey management’s 

expectation of future increases in earnings and cash 

flow). 

2See Securities Exchange Act Release No. 46980 

(Dec. 10, 2002), 67 FR 77594 (Dec. 18, 2002) (‘‘2002 

Proposing Release’’). 

3See id. 

4 Id. 

5 Id. 

6 1982 Adopting Release, 47 FR 53333. Since 

1967, the Commission has considered on several 

occasions the issue of whether to regulate an 

issuer’s market purchases of its own securities. The 

Commission first proposed Rule 10b–10 to govern 

issuer repurchases in connection with proposed 

legislation that became the Williams Act 

Amendments of 1968. Public Law 90–439, 82 Stat. 

454 (July 29, 1968), reprinted in Hearings on S. 510 

before Senate Committee on Banking and Currency, 

90th Cong., 1st Sess. 214–216 (1967). The 

Commission then published for public comment 

proposed Rule 13e–2 in 1970, 1973, and 1980. Rule 

13e–2, which was later withdrawn with the 

adoption of Rule 10b–18, would have been a 

prescriptive rule with mandatory disclosure 

requirements, substantive purchasing limitations, 

and general anti-fraud liability. Securities Exchange 

Act Release Nos. 8930 (July 13, 1970), 35 FR 11410 

(July 16, 1970); 10539 (Dec. 6, 1973), 38 FR 34341 

(Dec. 13, 1973); and 17222 (Oct. 17, 1980), 45 FR 

70890 (Oct. 27, 1980) (‘‘1980 Proposing Release’’). 

7The safe harbor is also available for ‘‘affiliated 

purchasers’’ of the issuer. In this Release, the term 

‘‘issuer’’ includes affiliated purchasers. See 17 CFR 

240.10b–18(a)(3), (a)(13) and (b). 

8 In other words, an issuer will not be deemed to 

have violated Sections 9(a)(2) and 10(b) of the 

Exchange Act or Rule 10b–5 under the Exchange 

Act, solely by reason of the timing, price, volume, 

or manner of its repurchases, if the repurchases are 

made within the limitations of the rule. However, 

some repurchase activity that meets the safe harbor 

Continued 

Related Information 

(i) Refer to EASA Airworthiness Directives 

2006–0224, dated July 27, 2006, and 2008– 

0138, dated July 23, 2008; Airbus A330 

Certification Maintenance Requirements, 

Document 955.2074/93, Issue 19, dated 

March 22, 2006; Airbus A340 Certification 

Maintenance Requirements, Document 

955.3019/92, Issue 14, dated December 19, 

2005; and Airbus A330 ALS, Part 3— 

Certification Maintenance Requirements 

(CMR), including Appendices 1 and 2, 

Revision 01, dated May 7, 2008; for related 

information. 

Issued in Renton, Washington, on January 

22, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–1924 Filed 1–28–10; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 240 

[Release No. 34–61414; File No. S7–04–10] 

RIN 3235–AH37 

Purchases of Certain Equity Securities 

by the Issuer and Others 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’) is 

proposing amendments to Rule 10b–18 

under the Securities Exchange Act of 

1934 (‘‘Exchange Act’’), which provides 

issuers with a ‘‘safe harbor’’ from 

liability for manipulation when they 

repurchase their common stock in the 

market in accordance with the Rule’s 

manner, timing, price, and volume 

conditions. The proposed amendments 

are intended to clarify and modernize 

the safe harbor provisions in light of 

market developments since Rule 10b– 

18’s adoption in 1982. 

DATES: Comments should be received on 

or before March 1, 2010. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/proposed.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number S7–04–10 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov). Follow the 

instructions for submitting comments. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number S7–04–10. This file number 

should be included on the subject line 

if e-mail is used. To help us process and 

review your comments more efficiently, 

please use only one method. The 

Commission will post all comments on 

the Commission’s Internet Web site 

(http://www.sec.gov/rules/ 

proposed.shtml). Comments are also 

available for public inspection and 

copying in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. All comments received 

will be posted without change; we do 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

FOR FURTHER INFORMATION CONTACT: 

Josephine Tao, Assistant Director, 

Elizabeth Sandoe, Branch Chief, Joan 

Collopy, Special Counsel, Jeffrey 

Dinwoodie, Staff Attorney, Office of 

Trading Practices and Processing, 

Division of Trading and Markets, at 

(202) 551–5720, at the Securities and 

Exchange Commission, 100 F Street, 

NE., Washington, DC 20549–7010. 

SUPPLEMENTARY INFORMATION: The 

Commission is requesting public 

comment on proposed amendments to 

Rule 10b–18 (the safe harbor rule for 

issuer repurchases) [17 CFR 240.10b–18] 

under the Exchange Act. 

I. Introduction 

Issuers repurchase their securities for 

many legitimate business reasons. For 

example, issuers may repurchase their 

stock in order to have shares available 

for dividend reinvestment, stock option 

and employee stock ownership plans, or 

to reduce the outstanding capital stock 

following the cash sale of operating 

divisions or subsidiaries.1 Issuers may 

believe that a repurchase program is 

preferable to paying dividends as a way 

of returning capital to shareholders.2

Issuer repurchases also provide 

liquidity in the marketplace, which 

benefits shareholders.3

At the same time, an issuer has a 

strong interest in the market 

performance of its securities. Among 

other things, an issuer’s securities may 

be the consideration in an acquisition, 

or serve as collateral for financing. Since 

the market price determines the price of 

offerings of additional securities, an 

issuer may have an incentive to 

manipulate the price of its securities.4

One way that an issuer can positively 

affect the price of its securities is to 

purchase the securities in the open 

market.5 Because issuer repurchases 

could affect the market price of an 

issuer’s stock, an issuer may be exposed 

to claims that the repurchases were 

made in a manipulative manner even 

when the repurchases were not 

intended to move market prices. 

Rule 10b–18 addresses this concern. 

In 1982, the Commission adopted Rule 

10b–18,6 which provides issuers 7 with 

a safe harbor from liability for 

manipulation under Sections 9(a)(2) and 

10(b) of the Exchange Act, and Rule 

10b–5 under the Exchange Act, when 

they repurchase their common stock in 

the market in accordance with the 

Rule’s manner, timing, price, and 

volume conditions.8 Rule 10b–18’s safe 


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