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processes that use a credit score for 

mortgage purchases. 

(3) Impact on Enterprise operations 

and risk management, and impact on 

industry. The Enterprise Business 

Assessment must evaluate the impact 

using the credit score model would have 

on Enterprise operations (including any 

impact on purchase eligibility criteria 

and loan pricing) and risk management 

(including counterparty risk 

management) in accordance with 

standards and requirements related to 

prudential management and operations 

and governance set forth at parts 1236 

and 1239 of this chapter. This 

evaluation must consider whether the 

benefits of using credit scores produced 

by that model can reasonably be 

expected to exceed the adoption and 

ongoing costs of using such credit 

scores, considering projected benefits 

and costs to the Enterprises. The 

Enterprise Business Assessment must 

evaluate the impact of using the credit 

score model on industry operations and 

mortgage market liquidity, including 

costs associated with implementation of 

a newly approved credit score. This 

evaluation must consider whether the 

benefits of using credit scores produced 

by that model can reasonably be 

expected to exceed the adoption and 

ongoing costs of using such credit 

scores, considering projected benefits 

and costs to the Enterprises and 

borrowers, including market liquidity 

and cost and availability of credit. 

(4) Competitive effects. The Enterprise 

Business Assessment must evaluate 

whether using the credit score model 

could have an impact on competition in 

the industry. This evaluation must 

consider whether use of a credit score 

model could have an impact on 

competition due to any ownership or 

other business relationship between the 

credit score model developer and any 

other institution. 

(5) Third-Party Vendor Review. The 

Enterprise Business Assessment must 

evaluate the credit score model 

developer under the Enterprise 

standards for approval of third-party 

service providers. 

(6) Other requirements. An Enterprise 

may establish requirements for the 

Enterprise Business Assessment in 

addition to the criteria established by 

FHFA. 

(c) Timing of Enterprise Business 

Assessment. The Enterprise Business 

Assessment must be completed within 

240 days. 

(d) Enterprise Business Assessment 

Determination. If an Enterprise approves 

an application for a credit score model, 

the Enterprise must implement the 

credit score model in its mortgage 

purchase systems that use a credit score 

for mortgage purchases. 

§ 1254.9 Enterprise actions on 

applications. 

(a) Types of actions. An Enterprise 

must approve or disapprove each 

application. 

(b) Approval of a credit score model. 

An Enterprise may approve an 

application upon completion of the 

Enterprise Business Assessment. An 

Enterprise must notify the applicant and 

the public of the approval of an 

application. 

(c) Disapproval of a credit score 

model. An Enterprise may disapprove 

an application at any time during the 

validation and approval process based 

on any of the criteria identified in the 

Credit Score Solicitation. If an 

Enterprise disapproves an application at 

any time, the Enterprise must provide 

written notice to the applicant within 30 

days of the disapproval determination, 

and the notice must provide a 

description of the reasons for 

disapproval. 

(d) Prior notice to FHFA. An 

Enterprise must notify FHFA of any 

decision to approve or disapprove an 

application at least 45 days prior to an 

Enterprise’s notification to an applicant 

or the public of its decision. 

§ 1254.10 Withdrawal of application. 

At any time during the validation and 

approval process, an applicant may 

withdraw its application by notifying an 

Enterprise. The Enterprise may, in its 

sole discretion, determine whether to 

return any portion of the application fee 

paid by the applicant. 

§ 1254.11 Pilots. 

(a) Pilots permitted. An Enterprise 

may undertake pilots or testing 

initiatives for a credit score model. If a 

pilot or testing initiative involves the 

use of a credit score model not in 

current use by the Enterprises, that 

credit score model is not required to be 

approved under this part. 

(b) Prior notice to FHFA. Before 

commencing a pilot or testing initiative, 

an Enterprise must submit the pilot or 

testing initiative to FHFA for review and 

approval. The Enterprise’s submission 

must include a complete and specific 

description of the pilot or testing 

initiative, including its purpose. FHFA 

may impose such terms, conditions, or 

limitations on the pilot or testing 

initiative as FHFA determines to be 

appropriate. 

Dated: December 12, 2018. 

Melvin L. Watt, 

Director, Federal Housing Finance Agency. 

[FR Doc. 2018–27565 Filed 12–20–18; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–1046; Product 

Identifier 2018–CE–049–AD] 

RIN 2120–AA64 

Airworthiness Directives; Piper 

Aircraft, Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for certain 

Piper Aircraft, Inc. (Piper) Model PA– 

28–140, PA–28–150, PA–28–151, PA– 

28–160, PA–28–161, PA–28–180, PA– 

28–181, PA–28–235, PA–28R–180, PA– 

28R–200, PA–28R–201, PA–28R–201T, 

PA–28RT–201, PA–28RT–201T, PA–32– 

260, and PA–32–300 airplanes. This 

proposed AD was prompted by a report 

of a fatigue crack found in a visually 

inaccessible area of the lower main wing 

spar cap. This proposed AD would 

require calculating the factored service 

hours for each main wing spar to 

determine when an inspection is 

required, inspecting the lower main 

wing spar bolt holes for cracks, and 

replacing any cracked main wing spar. 

We are proposing this AD to address the 

unsafe condition on these products. 

DATES: We must receive comments on 

this proposed AD by February 4, 2019. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, 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: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http:// 


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www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

1046; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this NPRM, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for Docket Operations 

(phone: 800–647–5527) is listed above. 

Comments will be available in the AD 

docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: Dan 

McCully, Aerospace Engineer, Atlanta 

ACO Branch, FAA, 1701 Columbia 

Avenue, College Park, Georgia 30337; 

phone: (404) 474–5548; fax: (404) 474– 

5605; email: william.mccully@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposal. Send your comments to 

an address listed under the ADDRESSES

section. Include ‘‘Docket No. FAA– 

2018–1046; Product Identifier 2018–CE– 

049–AD’’ at the beginning of your 

comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this NPRM. We will consider 

all comments received by the closing 

date and may amend this NPRM 

because of 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 we receive 

about this NPRM. 

Discussion 

We received a report of a fatigue crack 

found in the lower main wing spar cap 

on a Piper Model PA–28R–201 airplane. 

An investigation revealed that repeated 

high-load operating conditions 

accelerated the fatigue crack growth in 

the lower main wing spar cap. In 

addition, because of the structural 

configuration of the wing assembly, the 

cracked area was inaccessible for a 

visual inspection. Model PA–28–140, 

PA–28–150, PA–28–151, PA–28–160, 

PA–28–161, PA–28–180, PA–28–181, 

PA–28–235, PA–28R–180, PA–28R–200, 

PA–28R–201T, PA–28RT–201, PA– 

28RT–201T, PA–32–260, and PA–32– 

300 airplanes have similar wing spar 

structures as the Model PA–28R–201. 

Airplanes used in training and other 

high-load environments are typically 

operated for hire and have inspection 

programs that require 100-hour 

inspections. We determined the number 

of 100-hour inspections an airplane has 

undergone is the best indicator of the 

airplane’s usage history. Using the 

criteria in FAA Advisory Circular AC 

23–13A, ‘‘Fatigue, Fail-Safe, and 

Damage Tolerance Evaluation of 

Metallic Structure for Normal, Utility, 

Acrobatic, and Commuter Category 

Airplanes,’’ which you can find at 

http://rgl.faa.gov/Regulatory_and_

Guidance_Library/rgAdvisory

Circular.nsf/MainFrame?OpenFrameset, 

we developed a factored service hours 

formula based on the number of 100- 

hour inspections completed on the 

airplane. A review of the airplane 

maintenance records to determine the 

airplane’s usage and the application of 

the factored service hours formula will 

identify when an airplane meets the 

criteria for the proposed eddy current 

inspection of the lower main wing spar 

bolt holes. 

Only an airplane with a main wing 

spar that has a factored service life of 

5,000 hours, has had either main wing 

spar replaced with a serviceable main 

wing spar (more than zero hours TIS), 

or has airplane maintenance records 

that are missing or incomplete, must 

have the eddy current inspection. 

This condition, if not addressed, 

could result in the wing separating from 

the fuselage in flight. 

Related Service Information 

We reviewed Piper Aircraft 

Corporation Service Bulletin No. 886, 

dated June 8, 1988, and The New Piper 

Aircraft, Inc. Service Bulletin No. 978A, 

dated August 6, 1999. These service 

bulletins contain procedures for 

determining initial and repetitive 

inspection times based on the aircraft’s 

usage and visually inspecting the wing 

lower spar caps and the upper wing skin 

adjacent to the fuselage and forward of 

each main spar for cracks. We also 

reviewed Piper Aircraft Corporation 

Service Letter No. 997, dated May 14, 

1987. This service letter contains 

procedures for replacing airplane wings. 

FAA’s Determination 

We are proposing this AD because we 

evaluated all the relevant information 

and determined the unsafe condition 

described previously is likely to exist or 

develop in other products of the same 

type design. 

Proposed AD Requirements 

This proposed AD would require 

reviewing the airplane maintenance 

records to determine the number of 100- 

hour inspections completed on each 

installed main wing spar and using the 

number of 100-hour inspections to 

calculate the factored service hours for 

each main wing spar. This proposed AD 

would also require inspecting the lower 

main wing spar bolt holes for cracks 

once a main wing spar exceeds the 

specified factored service hours and 

replacing any main wing spar when a 

crack is indicated. This proposed AD 

would only apply when an airplane has 

either accumulated 5,000 or more hours 

time-in-service (TIS); has had either 

main wing spar replaced with a 

serviceable main wing spar (more than 

zero hours TIS); or has missing and/or 

incomplete maintenance records. 

Interim Action 

We consider this proposed AD 

interim action. The inspection reports 

will provide us additional data for 

determining the cause of the cracking. 

After analyzing the data, we may take 

further rulemaking action. 

Costs of Compliance 

We estimate that this proposed AD 

affects 19,696 airplanes of U.S. registry. 

We estimate the following costs to 

comply with this proposed AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Review airplane maintenance records and 

calculate factored service hours.

2 work-hours × $85 per hour = $170 ......... Not applicable ........ $170 $3,348,320 

We estimate the following costs to do 

the eddy current inspection. Because 

some airplanes are only used noncommercially and will not accumulate 

the specified factored service hours in 

the life of the airplane, we have no way 

of determining the number of airplanes 

that might need this inspection: 


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ON-CONDITION COSTS

Action Labor cost Parts cost Cost per product 

Inspect the lower main wing spar and replace 

the attach nuts and bolts.

1.5 work-hours × $85 per hour = $127.50 per 

wing spar.

$20 $147.50 per wing spar. 

Report inspection results to the FAA .................. 1 work-hour × $85 = $85 .................................... N/A $85. 

We estimate the following costs to do 

any necessary replacements that would 

be required based on the results of the 

proposed inspection. We have no way of 

determining the number of aircraft that 

might need this replacement: 

ON-CONDITION REPLACEMENT COSTS

Action Labor cost Parts cost Cost per product 

Replace main wing spar ............ 32 work-hours × $85 per hour = $2,720 per wing spar ................. $5,540 $8,260 per wing spar. 

Paperwork Reduction Act 

A federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, nor shall a person be subject 

to a penalty for failure to comply with 

a collection of information subject to the 

requirements of the Paperwork 

Reduction Act unless that collection of 

information displays a currently valid 

OMB Control Number. The OMB 

Control Number for this information 

collection is 2120–0056. Public 

reporting for this collection of 

information is estimated to be 

approximately 1 hour per response, 

including the time for reviewing 

instructions, searching existing data 

sources, gathering and maintaining the 

data needed, completing and reviewing 

the collection of information. All 

responses to this collection of 

information are mandatory. Send 

comments regarding this burden 

estimate or any other aspect of this 

collection of information, including 

suggestions for reducing this burden to: 

Information Collection Clearance 

Officer, Federal Aviation 

Administration, 10101 Hillwood 

Parkway, Fort Worth, TX 76177–1524. 

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. 

This AD is issued in accordance with 

authority delegated by the Executive 

Director, Aircraft Certification Service, 

as authorized by FAA Order 8000.51C. 

In accordance with that order, issuance 

of ADs is normally a function of the 

Compliance and Airworthiness 

Division, but during this transition 

period, the Executive Director has 

delegated the authority to issue ADs 

applicable to small airplanes, gliders, 

balloons, airships, domestic business jet 

transport airplanes, and associated 

appliances to the Director of the Policy 

and Innovation Division. 

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), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) 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. 

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 airworthiness 

directive (AD): 

Piper Aircraft, Inc.: Docket No. FAA–2018– 

1046; Product Identifier 2018–CE–049– 

AD. 

(a) Comments Due Date 

We must receive comments by February 4, 

2019. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Piper Aircraft, Inc. 

airplanes, certificated in any category, with a 

model and serial number shown in Table 1 

to paragraph (c) of this AD, and that meet at 

least one of the criteria in paragraphs (c)(1), 

(2), or (3) of this AD. 

(1) Has accumulated 5,000 or more hours 

time-in-service (TIS); or 

(2) Has had either main wing spar replaced 

with a serviceable main wing spar (more than 

zero hours TIS); or 

(3) Has missing and/or incomplete 

maintenance records. 


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BILLING CODE 4910–13–C 

(d) Subject 

Joint Aircraft System Component (JASC)/ 

Air Transport Association (ATA) of America 

Code 57, Wings. 

(e) Unsafe Condition 

This AD was prompted by a report of a 

fatigue crack found in a visually inaccessible 

area of the lower main wing spar cap. We are 

issuing this AD to detect and correct fatigue 

cracks in the lower main wing spar cap bolt 

holes. The unsafe condition, if not addressed, 

could result in the wing separating from the 

fuselage in flight. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Review Airplane Maintenance Records 

and Calculate Factored Service Hours for 

Each Main Wing Spar 

(1) Within 30 days after the effective date 

of this AD, review the airplane maintenance 

records and determine the number of 100- 

hour inspections completed on the airplane 

since new and any record of wing spar 

replacement(s). 

(i) If a main wing spar has been replaced 

with a new (zero hour TIS) main wing spar, 

count the number of 100-hour inspections 

from the time of installation of the new main 

wing spar. 

(ii) If either main wing spar has been 

replaced with a serviceable main wing spar 

(more than zero hours TIS) or the airplane 

maintenance records are missing or 

incomplete, the factored service hours cannot 

be determined. Perform the eddy current 

inspection as specified in paragraph (h) of 

this AD. 

(2) Before further flight after completing 

the action in paragraph (g)(1) of this AD, 

calculate the factored service hours for each 

main wing spar using the following formula: 

(N × 100) + [T-(N × 100)]/17 = Factored 

Service Hours, where N is the number of 100- 

hour inspections and T is the total hours TIS 

of the airplane. Thereafter, after each annual 

inspection and 100-hour TIS inspection, 

recalculate the factored service hours for 

each main wing spar until the main wing 

spar has accumulated 5,000 or more factored 

service hours. 

(3) An example of determining factored 

service hours for an airplane with no 100- 

hour inspections is as follows: The airplane 

maintenance records show that the airplane 

has a total of 12,100 hours TIS, and only 

annual inspections have been done. Both 

main wing spars are original factory 

installed. In this case, N = 0 and T = 12,100. 

Use those values in the formula as follows: 


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(0 × 100) + [12,100¥(0 × 100)]/17 = 711 

factored service hours on each main wing 

spar. 

(4) An example of determining factored 

service hours for an airplane with both 100- 

hour and annual inspections is as follows: 

The airplane was originally flown for 

personal use, then for training for a period of 

time, then returned to personal use. The 

airplane maintenance records show that the 

airplane has a total of 5,600 hours TIS, and 

nineteen 100-hour inspections have been 

done. Both main wing spars are original 

factory installed. In this case, N = 19 and T 

= 5,600. Use those values in the formula as 

follows: (19 × 100) + [5,600¥(19 × 100)]/17 

= (1,900 + 218) = 2,118 factored service hours 

on each main wing spar. 

(h) Eddy Current Inspect 

Within the compliance time specified in 

paragraph (h)(1) or (2) of this AD, eddy 

current inspect the inner surface of each bolt 

hole on the lower main wing spar cap for 

cracks by using the procedure in appendix 1 

of this AD. 

(1) Within 100 hours TIS after complying 

with paragraph (g) of this AD or within 100 

hours TIS after a main wing spar accumulates 

5,000 factored service hours, whichever 

occurs later; or 

(2) For airplanes with an unknown number 

of factored service hours on a main wing 

spar, within the next 100 hours TIS after the 

effective date of this AD or within 60 days 

after the effective date of this AD, whichever 

occurs later. 

(i) Replace the Main Wing Spar 

If a crack is found during an inspection 

required in paragraph (h) of this AD, before 

further flight, replace the main wing spar 

with a new (zero hours TIS) main wing spar 

or with a main wing spar that has been 

inspected as specified in appendix 1 of this 

AD and no cracks were found. 

(j) Report Inspection Results 

Within 30 days after completing an 

inspection required in paragraph (h) of this 

AD, using Appendix 2, ‘‘Inspection Results 

Form,’’ of this AD, report the inspection 

results to the FAA at the Atlanta ACO 

Branch. Submit the report to the FAA using 

the contact information found in appendix 2 

of this AD. 

(k) Special Flight Permit 

A special flight permit may only be issued 

to operate the airplane to a location where 

the inspection requirement of paragraph (h) 

of this AD can be performed. This AD 

prohibits a special flight permit if the 

inspection reveals a crack in a main wing 

spar. 

(l) Paperwork Reduction Act Burden 

Statement 

A federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, nor shall a person be subject to 

a penalty for failure to comply with a 

collection of information subject to the 

requirements of the Paperwork Reduction 

Act unless that collection of information 

displays a currently valid OMB Control 

Number. The OMB Control Number for this 

information collection is 2120–0056. Public 

reporting for this collection of information is 

estimated to be approximately 1 hour per 

response, including the time for reviewing 

instructions, searching existing data sources, 

gathering and maintaining the data needed, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Send 

comments regarding this burden estimate or 

any other aspect of this collection of 

information, including suggestions for 

reducing this burden to: Information 

Collection Clearance Officer, Federal 

Aviation Administration, 10101 Hillwood 

Parkway, Fort Worth, TX 76177–1524. 

(m) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Atlanta ACO Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or local Flight Standards 

District Office, as appropriate. If sending 

information directly to the manager of the 

certification office, send it to the attention of 

the person identified in paragraph (n) of this 

AD. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(n) Related Information 

For more information about this AD, 

contact Dan McCully, Aerospace Engineer, 

Atlanta ACO Branch, FAA, 1701 Columbia 

Avenue, College Park, Georgia 30337; phone: 

(404) 474–5548; fax: (404) 474–5605; email: 

william.mccully@faa.gov. 

BILLING CODE 4910–13–C 


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Appendix 1 to this AD 

Eddy Current Inspection Procedure 

A. Equipment 

1. Equipment Requirements 

(i) Equipment used must provide impedance plane diagrams. 

(ii) Probes may be either absolute or differential coil configurations. 

(iii) For manual bolt hole probing: use probe collars at an increment of every 1/64 inch to 

ensure the uniform depth of rotation and to aid in reducing lift-off effects. 

(iv) Automated scanning systems may be used. 

(v) Bolt hole probes must match as closely as possible, but not exceed, the bolt hole 

diameter. Split core probes may be expanded to a maximum of0.050 inch beyond the probe's 

nominal diameter (in accordance with on the probe manufacturer's instructions). The fill factor 

must be 80 percent minimum. 

(vi) A right angle (90 degree) surface probe may be used for further detail indication, if 

needed. 

2. Equipment Examples 

The following optional inspection equipment has been shown to be adequate to conduct this 

procedure and is provided as examples only. Other equipment meeting the requirements in AI. 

may be used. 

(i) Nortec 500D Series Portable Eddy Current Flaw Detector- Olympus 

(ii) Bolt hole probe, 0.375 inch with 0.062 inch shielded coil- Olympus 

(iii) Right angle (90 degree) surface probe with 0.062 inch shielded coil- Olympus 

(iv) Calibration standard (NIST traceable) for bolt holes and surface: Air Force General 

Purpose Eddy Current Standard 

(a) Bolt hole: 0.030 x 0.030 inch corner notch, 0.030 inch radial notch 

(b) Surface: 2024-T3: 0.008, 0.020, and 0.040 inch depth EDM notches 

(c) Frequency 300KHz, EDM notch set at five (5) divisions screen height 

B. Reference Standard 

(1) Use a reference standard of the same conductivity 2024 T-3 within +/-15% lACs. It 

must have electrical discharge machining (EDM) notches for simulating defects as calibration 

references. 

(2) The surface finish must be 63 RHR or better. 

(3) The reference standard must have a corner notch size of0.030 x 0.030 inch (screen set 

at minimum of three divisions vertical with a phase signal of between 45 and 120 degrees 

separation from the horizontal liftoff). 

(4) Use a frequency between 100 and 500kHz. 
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(5) The calibration must be checked in the beginning and end and every 30 minutes of 

inspections. 

C. Personnel Qualifications 

Personnel doing the eddy current inspection must have NAS 410 Level II or Level III 

certification. 

D. Material Required 

NOTE: Hardware part numbers and torque values are contained in the Aircraft 

Maintenance Manual and Illustrated Parts Catalogue for the specific airplane model. 

For each wing inspected: 

(1) Two (2) wing to spar attach bolts 

(2) Two (2) wing to spar attach nuts 

(3) Two (2) wing to spar attach washers 

( 4) Cleaning cloth 

(5) Isopropyl alcohol or mineral spirits 

E. Conduct Inspection 

For each wing to be inspected: 

(1) Locate the two (2) lower outboard main spar attach bolts, as shown in Figure 1 of 

Appendix 1, installed on the lower cap of the main spar, on the forward and aft sides of the 

spar web. 

CAUTION: The interior surface of the bolts holes can be easily damaged during bolt 

removal and installation. Do not drive out spar to fuselage attach bolts. 

(2) Clean the inspection surfaces using a cloth dampened with isopropyl alcohol or mineral 

spirits. 

(3) Use eddy current surface and bolt hole examinations to detect surface and shallow 

subsurface cracking and discontinuities on the left and right lower outboard spar bolt holes. 

Use SAE ARP4402, "Eddy Current Inspection of Open Fastener Holes in Aluminum Aircraft 

Structure," or another FAA-approved eddy current inspection method to do these inspections. 

F. Accept/Reject Criteria 

A crack or crack-like indication with an amplitude equal to or greater than 50 percent of the 

reference level signal must be rejected and documented. Such an amplitude reading indicates 

that the spar does not meet type design. 
Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Proposed Rules 65599 


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Figure 1. Main Spar Attach Bolt Locations (RH Side Shown) 
65600 Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Proposed Rules 


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Appendix 2 to this AD 

Inspection Results Form 

Email completed form to: Or mail to: 

9-ASO-ATLCOS-Reporting@faa.gov 

SUBJECT line: Docket No. FAA-2018-1046 

Federal Aviation Administration 

Atlanta ACO Branch, AIR-7 AI 

1701 Columbia Avenue 

College Park, GA 30337 

Include photos if applicable 

Aircraft Model No.: P A- Serial Number: 

Aircraft Total Hours Time-In-Service (TIS): Registration Number: 

Factored Flight Hours Left-Hand (LH) Wing: Right-Hand (RH) Wing: 

(If both wings are factory installed original, these number should be the same) 

Inspection Results 

LH Wing Spar Fwd AcceptedD RejectedD RH Wing Spar Fwd Accepted D RejectedD 

LH Wing Spar Aft AcceptedD RejectedD RH Wing Spar Aft AcceptedD RejectedD 

Inspector Comments 

Inspector Information 

N arne (print): _____________ Signature:-------------

Certificate No.: Date: --------------- --------------
Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Proposed Rules 65601 

1See 17 CFR 240.13a–13 and 17 CFR 240.15d–13. 

2 17 CFR 249.308a. 

3See 17 CFR 210.8–03 (‘‘Rule 8–03’’) and 17 CFR 

210.10–01 (‘‘Rule 10–01’’). 

4Form 10–Q also requires a management’s 

discussion and analysis of financial condition and 

results of operations (‘‘Management’s Discussion 

and Analysis’’), along with disclosures on 

quantitative and qualitative market risk, company 

disclosure controls and procedures, legal 

proceedings, material changes to previously 

disclosed risk factors, unregistered sales of equity 

securities and the use of proceeds from such sales, 

defaults upon senior securities, mine safety 

disclosures, and any information required to be 

disclosed in a report on Form 8–K during the period 

covered by the relevant 10–Q that was not reported. 

5See 17 CFR 230.415 (‘‘Rule 415’’), Item 12(a) of 

Part I of Form S–1 [17 CFR 239.11], and Item 12(a) 

of Part I of Form S–3 [17 CFR 239.13]. All 

documents, not just a Form 10–Q, subsequently 

filed pursuant to Sections 13(a), 13(c), 14 or 15(d) 

of the Exchange Act may be forward incorporated 

by reference on Form S–3. Smaller reporting 

companies may forward incorporate by reference on 

Form S–1 all documents subsequently filed 

pursuant to Sections 13(a), 13(c), 14, or 15(d) of the 

Exchange Act. 

6 15 U.S.C. 78m; 15 U.S.C. 78o; 15 U.S.C. 78r; 15 

U.S.C. 78j(b); and 17 CFR 240.10b–5. General 

Instruction F.1. of Form 10–Q states that pursuant 

to Rule 13a–13(d) [17 CFR 240.13a–13(d)] and Rule 

15d–13(d) [17 CFR 240.15d–13(d)], the information 

presented to satisfy the requirements of Part I Items 

1, 2 and 3 shall not be deemed filed for purposes 

of Section 18 of the Exchange Act or otherwise 

subject to the liability of that section, but shall be 

subject to other provisions of the Exchange Act. 

Further, companies must submit their Form 10–Q 

financial statement disclosures in the eXtensible 

Business Reporting Language (‘‘XBRL’’) format, and 

these XBRL structured financial statement 

disclosures are subject to the same disclosure 

liability. See 17 CFR 229.601(b)(101) (‘‘Item 

601(b)(101) of Regulation S–K’’). The Commission 

recently adopted amendments requiring Inline 

XBRL, a newer XBRL technology, with phased 

compliance dates depending on filer status: Large 

accelerated filers and accelerated filers that prepare 

their financial statements in accordance with U.S. 

GAAP must comply with the requirements for fiscal 

periods ending on or after June 15, 2019 and June 

15, 2020, respectively; all other filers must comply 

with the requirements for fiscal periods ending on 

or after June 15, 2021. See SEC Release No. 33– 

10514 (Sept. 17, 2018). 

BILLING CODE 4910–13–P 

Issued in Kansas City, Missouri, on 

December 7, 2018. 

Melvin J. Johnson, 

Aircraft Certification Service, Deputy 

Director, Policy and Innovation Division, 

AIR–601. 

[FR Doc. 2018–27577 Filed 12–20–18; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 210, 230, 239, 240, 243, 

and 249 

[Release No. 33–10588; 34–84842; File No. 

S7–26–18] 

Request for Comment on Earnings 

Releases and Quarterly Reports 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Request for comment. 

SUMMARY: The Commission is requesting 

public comment on how we can 

enhance, or at a minimum maintain, the 

investor protection attributes of periodic 

disclosures while reducing 

administrative and other burdens on 

reporting companies associated with 

quarterly reporting. We are specifically 

requesting public comment on the 

nature and timing of the disclosures that 

reporting companies are required to 

provide in their quarterly reports filed 

on Form 10–Q, including when the 

disclosure requirements overlap with 

disclosures these companies voluntarily 

provide to the public in the form of an 

earnings release furnished on Form 8– 

K. We are interested in exploring ways 

to promote efficiency in periodic 

reporting by reducing unnecessary 

duplication in the information that 

reporting companies disclose and how 

such changes could affect capital 

formation, while enhancing, or at a 

minimum maintaining, appropriate 

investor protection. We also are 

requesting public comment on whether 

our rules should provide reporting 

companies, or certain classes of 

reporting companies, with flexibility as 

to the frequency of their periodic 

reporting. In addition, we are seeking 

comment on how the existing periodic 

reporting system, earnings releases, and 

earnings guidance, standing alone or in 

combination with other factors, may 

affect corporate decision making and 

strategic thinking—positively or 

negatively—including whether these 

factors foster an inefficient outlook 

among registrants and market 

participants by focusing on short-term 

results, sometimes referred to as ‘‘shorttermism.’’ 

DATES: Comments should be received by 

March 21, 2019. 

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/other.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number S7– 

26–18 in the subject line. 

Paper Comments 

• Send paper comments to Brent J. 

Fields, Secretary, Securities and 

Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number S7–26–18. This file number 

should be included in the subject line 

if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

other.shtml). Comments also are 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make publicly available. 

FOR FURTHER INFORMATION CONTACT: 

Courtney L. Lindsay, Attorney-Adviser, 

or Lilyanna L. Peyser, Special Counsel 

at (202) 551–3430, Division of 

Corporation Finance, 100 F Street 

NE, Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Overview of Quarterly Reporting 

In addition to annual and current 

reports, companies subject to the 

periodic reporting requirements under 

the Securities Exchange Act of 1934 

(‘‘Exchange Act’’), other than foreign 

private issuers, must file quarterly 

reports 1 on Form 10–Q,2 which include 

interim financial statements 3 and other 

disclosure items.4 Form 10–Q is often 

forward incorporated by reference into 

certain registration statements under the 

Securities Act of 1933 (‘‘Securities 

Act’’), thereby avoiding unnecessary 

duplication of information about an 

issuer’s recent financial results and 

material business developments that 

was previously filed and remains 

available electronically on EDGAR.5

This forward incorporation helps reduce 

the time and costs associated with 

frequent updating of a registration 

statement to reflect such developments. 

A company’s Form 10–Q must comply 

with the requirements of Sections 13(a) 

or 15(d) of the Exchange Act, as 

applicable, and is subject to liability 

under Sections 10(b) and 18 of the 

Exchange Act and Rule 10b–5 

thereunder.6 In addition, in certain 

circumstances, including in the offer 

and sale of securities, reporting 

companies, affiliates, and underwriters 

may be subject to liability for their 


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