66604 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

1Average total consolidated assets is defined in 

the Guidelines and means the average total 

consolidated assets of the bank or covered bank as 

reported on the bank’s or covered bank’s 

Consolidated Reports of Condition and Income for 

the four most recent consecutive quarters. See 12 

CFR part 30, appendix E, paragraph I.E.1. 

2 81 FR 66791 (Sep. 29, 2016). The Guidelines 

were issued pursuant to section 39 of the Federal 

Deposit Insurance Act, 12 U.S.C. 1831p-1, which 

authorizes the OCC to prescribe enforceable safety 

and soundness standards. 

3See 12 CFR 381.2(f) and 243.2(f), respectively. 

See also 12 CFR 360.10. 

4Public Law 111–203, 124 Stat. 1376 (July 21, 

2010). 

5Public Law 115–174, 132 Stat. 1296 (May 24, 

2018). 

6 83 FR 47313 (Sep. 19, 2018). 

Dated: December 18, 2018. 

Bao Nguyen, 

Acting Senior Deputy Comptroller and Chief 

Counsel. 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority, December 17, 2018. 

Ann E. Misback, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 13th day of 

December, 2018. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2018–27791 Filed 12–26–18; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 30 

[Docket ID OCC–2018–0028] 

RIN 1557–AE51 

OCC Guidelines Establishing 

Standards for Recovery Planning by 

Certain Large Insured National Banks, 

Insured Federal Savings Associations, 

and Insured Federal Branches; 

Technical Amendments 

AGENCY: Office of the Comptroller of the 

Currency, Treasury. 

ACTION: Final guidelines. 

SUMMARY: The Office of the Comptroller 

of the Currency (OCC) is amending its 

enforceable guidelines relating to 

recovery planning standards for insured 

national banks, insured federal savings 

associations, and insured federal 

branches (Guidelines) by increasing the 

average total consolidated assets 

threshold for applying the Guidelines 

from $50 billion to $250 billion. In 

addition, the OCC is changing the 

Guidelines to decrease from 18 months 

to 12 months the time within which a 

bank should comply with the 

Guidelines after the bank becomes 

subject to them. Finally, the OCC is 

making technical amendments to 

remove outdated compliance dates. 

DATES: The final guidelines are effective 

on January 28, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Andra Shuster, Senior Counsel or Rima 

Kundnani, Attorney, Chief Counsel’s 

Office, (202) 649–5490; or, for persons 

who are deaf or hard of hearing, TTY, 

(202) 649–5597, 400 7th Street SW, 

Washington, DC 20219. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The 2008 financial crisis provided 

valuable lessons about the need for 

financial institutions to have strong risk 

governance frameworks, including plans 

for how to respond to and recover from 

the financial effects of severe stress. 

This was particularly true for larger, 

more complex banks given the potential 

they pose for systemic risk. In response 

to these lessons, on September 29, 2016, 

the OCC published the Guidelines 

establishing minimum standards for 

recovery planning by insured national 

banks, insured federal savings 

associations, and insured federal 

branches of foreign banks (banks) with 

average total consolidated assets 1 equal 

to or greater than $50 billion (covered 

banks).2 The Guidelines state that a 

recovery plan should identify (1) 

quantitative or qualitative indicators of 

the risk or existence of severe stress that 

reflect a covered bank’s particular 

vulnerabilities and (2) a wide range of 

credible options that a covered bank 

could undertake in response to the 

stress to restore its financial strength 

and viability. 

Under the Guidelines, a recovery plan 

should also address: (1) Procedures for 

escalating decision-making to senior 

management or the board of directors, 

(2) management reports, and (3) 

communication procedures. In addition, 

the Guidelines explain how a bank 

should calculate its average total 

consolidated assets and reserve the 

OCC’s authority to apply the Guidelines 

to a bank below the $50 billion 

threshold if the agency determines a 

bank is highly complex or otherwise 

presents a heightened risk. Finally, the 

Guidelines set out phased-in 

compliance dates based on bank size. 

II. Description of the Proposal, 

Comments Received, and Final 

Guidelines 

The OCC received three comments on 

the proposal. One comment came from 

an individual, one from a trade 

association (Trade Association 

Comment), and the other from four 

regional national banks (Banks 

Comment). 

Asset Threshold. The OCC noted in 

the SUPPLEMENTARY INFORMATION section 

of the Guidelines that large, complex 

institutions should undertake recovery 

planning to be able to respond quickly 

to and recover from the financial effects 

of severe stress on the institution. Based 

on its experience to date in reviewing 

recovery plans, the OCC believes that it 

is appropriate to raise the threshold for 

the Guidelines to focus on those 

institutions that present greater risk to 

the banking system. These larger, more 

complex, or potentially more 

interconnected banks present the types 

of risks that could benefit most from 

having the types of governance and 

planning processes that identify and 

assist in responding to significant stress 

events. 

In addition, at the time the Guidelines 

were published, the $50 billion recovery 

planning threshold was consistent with 

the scope of Federal Deposit Insurance 

Corporation and Board of Governors of 

the Federal Reserve System regulations 3

that require certain entities to prepare 

resolution plans under section 165 of 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act.4 On May 24, 

2018, the Economic Growth, Regulatory 

Relief, and Consumer Protection Act 

(Act) was enacted to promote economic 

growth, provide tailored economic 

relief, and enhance consumer 

protections.5 Section 401 of the Act 

raises from $50 billion to $250 billion 

the section 165 resolution planning 

threshold. 

Accordingly, the OCC proposed to 

increase from $50 billion to $250 billion 

the average total consolidated assets 

threshold at which the Guidelines apply 

to banks.6 This change would reduce 

the number of covered banks to which 

the Guidelines apply from 25 to 8, based 

on the most recent data available. 

All three of the comments received 

addressed the threshold change. The 

individual commenter expressed 

concern that raising the Guidelines’ 

asset threshold would provide too much 

leniency for banks in light of the 2008 

financial crisis. The Trade Association 

Comment strongly supported the OCC’s 

proposal to raise the threshold for the 

Guidelines from $50 billion to $250 

billion in average total consolidated 

assets because it provides burden relief 

to the affected banks and permits the 

OCC to allocate its resources over a 

smaller number of banks. The Banks 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66605 

7Appendix E to part 30, II.A. See also 

Comptroller’s Handbook for Recovery Planning, 

version 1.0 April 2018 at p. 6. 

8 81 FR 66797 (Sept. 29, 2016). 

9Appendix E to part 30, III.B. 

Comment suggested that the OCC 

replace the threshold with a risksensitive alternative that more 

accurately reflects a bank’s business 

model and risk profile, like the systemic 

indicator score, which was described as 

a more useful and better-calibrated 

measure of the complexity and risk 

inherent in a bank’s business model. 

The OCC believes this threshold 

change is consistent with providing 

necessary and appropriate burden relief 

to the affected banks while retaining the 

requirements for the largest, most 

complex institutions. Furthermore, the 

increased threshold is consistent with 

section 401 of the Act’s increase in the 

section 165 resolution planning 

threshold applicable to systemically 

important bank holding companies. 

Therefore, the OCC is adopting as final 

the proposed Guidelines’ $250 billion 

average total consolidated assets 

threshold. 

Tailoring Approach for Banks Subject 

to the Guidelines. Both the Trade 

Association Comment and the Banks 

Comment requested that the OCC 

consider a tailored approach to the 

application of the Guidelines to covered 

banks in order to focus recovery 

planning on issues that are most 

relevant to the bank based on its risk 

profile and business model. The trade 

association also requested that the OCC 

consider whether the Guidelines should 

be applicable to all covered banks given 

the varying degree of riskiness and 

complexity of these banks. 

The Guidelines already recognize that 

each covered bank is unique and 

expressly permit a bank to tailor its 

recovery plan so that it is ‘‘specific to 

that covered bank and appropriate for 

its individual size, risk profile, 

activities, and complexity, including the 

complexity of its organizational and 

legal entity structure.’’ 7 Therefore, a 

covered bank that is less complex or has 

less risk may tailor its recovery plan 

under the Guidelines accordingly. Given 

this flexibility, the OCC does not think 

it is necessary to specifically tailor the 

Guidelines based on different business 

models and risk profiles of the covered 

banks nor do we think it is appropriate 

to further reduce the number of banks 

subject to the Guidelines. In fact, it may 

be even more important for a covered 

bank that is less complex or has less risk 

due to fewer interconnections to have a 

robust recovery plan. Such a bank may 

have identified fewer options for 

recovery and therefore may be 

constrained in its ability to restore 

financial strength in severe stress. 

Biennial Cycle. Both the Trade 

Association Comment and the Banks 

Comment suggested that the OCC 

should consider moving from an annual 

to a biennial recovery plan cycle. The 

Trade Association Comment noted that 

as was the case with resolution 

planning, this would give the OCC more 

time to provide feedback and would 

give the covered banks more time to 

prepare the plans, likely resulting in a 

better quality plan. Both commenters 

also requested that the OCC allow each 

covered bank to elect the timing of its 

two-year recovery plan cycle. This 

would permit each bank to make a 

determination of whether or not to align 

the preparation of its recovery plan with 

the preparation of its resolution plan. 

Further, the Trade Association 

Comment requested that the OCC not 

require re-approval of the recovery plan 

by the board of directors if there has 

been no material change or event that 

has had a fundamental and major 

impact on the covered bank’s recovery 

plan since the board previously 

approved the recovery plan. 

The recovery plan and the recovery 

planning framework are important to a 

bank’s safety and soundness and 

enterprise governance and, thus, the 

OCC believes that covered banks should 

review and revise the recovery plan as 

necessary at least annually. With regard 

to electing the timing of the recovery 

plan cycle, the preamble to the 

Guidelines noted that ‘‘management 

should have flexibility to conduct its 

annual reviews on its preferred 

schedule’’ and that ‘‘OCC examiners 

will assess the appropriateness and 

adequacy of the covered bank’s ongoing 

recovery planning process as part of the 

agency’s regular supervisory activities 

. . . [to] provide covered banks with the 

flexibility they need.’’ 8 In addition to 

this flexibility, the Guidelines already 

permit an appropriate committee of the 

board, rather than the entire board, to 

review and approve the recovery plan.9

Therefore, no change has been made to 

this part of the Guidelines. 

Transparency of Standards and 

Horizontal Review. The Trade 

Association Comment suggested that 

recovery planning standards should be 

more transparent in the future and that 

a supervisory horizontal review of 

recovery plans may be difficult and less 

meaningful given the differences in risk 

profiles and business models among the 

covered banks. The OCC believes that 

the current process, which includes 

discussion between the examiners and 

the covered banks, provides the 

necessary transparency for recovery 

planning standards. While other 

agencies may use horizontal review for 

resolution planning purposes, the OCC 

does not intend to use such reviews in 

connection with recovery planning. 

Clarification for Banks under $250 

Billion. The Trade Association 

Comment requested that the OCC 

immediately clarify that no recovery 

plans are expected of banks on or after 

January 1, 2019 if they do not meet the 

$250 billion average total consolidated 

assets threshold in order to avoid the 

significant and needless burden 

associated with preparing the recovery 

plan. Given that these revised final 

Guidelines will be effective in a short 

period of time, the OCC would not 

expect banks with less than $250 billion 

in average total consolidated assets to 

complete the annual process for review 

by management and review and 

approval by the board of their 2018 

recovery plans or to begin preparing a 

2019 recovery plan. 

Compliance Date. Under the current 

Guidelines, a bank with less than $50 

billion in average total consolidated 

assets that subsequently becomes a 

covered bank is required to comply with 

the Guidelines within 18 months. The 

OCC proposed amending this provision 

so that a bank that has less than $250 

billion in average total consolidated 

assets on the effective date of the final 

rule and subsequently becomes a 

covered bank should comply with the 

Guidelines within 12 months. Based 

upon supervisory experience, the OCC 

has observed that 12 months is a 

sufficient period of time for any bank 

that becomes a covered bank to comply 

with the Guidelines. Finally, the OCC 

proposed technical amendments to 

remove the compliance dates listed in 

the current Guidelines, as the dates have 

all passed. The OCC did not receive any 

comments on these changes. Therefore, 

these amendments will be adopted as 

proposed. 

Regulatory Analysis 

Regulatory Flexibility Act 

In general, the Regulatory Flexibility 

Act (RFA) (5 U.S.C. 601 et seq.) requires 

that in connection with a rulemaking, 

an agency prepare and make available 

for public comment a regulatory 

flexibility analysis that describes the 

impact of the rule on small entities. 

Under section 605(b) of the RFA, this 

analysis is not required if an agency 

certifies that the rule will not have a 

significant economic impact on a 

substantial number of small entities and 


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66606 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

publishes its certification and a brief 

explanatory statement in the Federal 

Register along with its rule. 

As part of its analysis, the OCC 

considered whether these revised final 

Guidelines will have a significant 

economic impact on a substantial 

number of small entities, pursuant to 

the RFA. Because these revised final 

Guidelines will generally have no 

impact on banks with less than $50 

billion in total consolidated assets, no 

OCC-supervised small entities will be 

affected. Therefore, the OCC certifies 

that these revised final Guidelines will 

not have a significant economic impact 

on a substantial number of small 

entities. 

Paperwork Reduction Act of 1995 

These revised final Guidelines 

include changes to an approved 

collection of information pursuant to 

the provisions of the Paperwork 

Reduction Act of 1995 (PRA) (44 U.S.C. 

3501 et seq.). In accordance with the 

PRA, the OCC may not conduct or 

sponsor, and an organization is not 

required to respond to, an information 

collection unless the information 

collection displays a currently valid 

Office of Management and Budget 

(OMB) control number. 

The OCC submitted the information 

collection requirements contained in the 

rule to the OMB at the proposed rule 

stage. Pursuant to 5 CFR 1320.11(c), the 

OMB filed a comment on the 

submission directing the OCC to 

examine any public comment in 

response to the information collection 

requirements, prepare a description of 

how the OCC has responded to the 

comments (including comments on 

maximizing the practical utility of the 

collection and minimizing the burden), 

and resubmit the information collection 

requirements in connection with these 

revised final Guidelines. 

The Guidelines found in 12 CFR part 

30, appendix E, sections II.B., II.C., and 

III contain information collection 

requirements previously approved by 

the OMB. Section II.B. specifies the 

elements of the recovery plan, including 

an overview of the covered bank; 

triggers; options for recovery; impact 

assessments; escalation procedures; 

management reports; and 

communication procedures. Section 

II.C. addresses the relationship of the 

plan to other covered bank processes 

and coordination with other plans, 

including the processes and plans of its 

bank holding company. Section III 

outlines management’s and the board’s 

responsibilities. The threshold 

triggering these requirements is being 

changed under these revised final 

Guidelines, resulting in a reduction in 

the number of respondents under this 

collection. 

The following revised information 

collection was submitted to OMB for 

review. 

Title: OCC Guidelines Establishing 

Standards for Recovery Planning by 

Certain Large Insured National Banks, 

Insured Federal Savings Associations, 

and Insured Federal Branches 

OMB Control No.: 1557–0333. 

Frequency of Response: On occasion. 

Affected Public: Businesses or other 

for-profit organizations. 

Burden Estimates: 

Total Number of Respondents: 8 

National Banks. 

Total Burden per Respondent: 7,543 

hours. 

Total Burden for Collection: 60,344 

hours. 

Comments were invited on: (1) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the OCC’s functions, 

including whether the information has 

practical utility; (2) the accuracy of the 

OCC’s estimate of the burden of the 

proposed information collection, 

including the cost of compliance; (3) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (4) ways to minimize the 

burden of information collection on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

We received no comments on the 

proposed information collection. 

Unfunded Mandates Reform Act of 1995 

The OCC analyzed these revised final 

Guidelines under the factors set forth in 

the Unfunded Mandates Reform Act of 

1995 (UMRA) (2 U.S.C. 1532). Under 

this analysis, the OCC considered 

whether these revised final Guidelines 

include a Federal mandate that may 

result in the expenditure by State, local, 

and tribal governments, in the aggregate, 

or by the private sector, of $100 million 

or more in any one year (adjusted for 

inflation). The OCC has determined that 

these revised final Guidelines do not 

impose new mandates. Therefore, we 

conclude that these revised final 

Guidelines will not result in an 

expenditure of $100 million or more 

annually by State, local, and tribal 

governments, or by the private sector. 

Effective Date 

The Administrative Procedure Act 

(APA) requires that a substantive rule 

must be published not less than 30 days 

before its effective date, unless, among 

other things, the rule grants or 

recognizes an exemption or relieves a 

restriction. Section 302 of the Riegle 

Community Development and 

Regulatory Improvement Act of 1994 

(RCDRIA) requires that regulations 

imposing additional reporting, 

disclosure, or other requirements on 

insured depository institutions take 

effect on the first day of the calendar 

quarter after publication of the final 

rule, unless, among other things, the 

agency determines for good cause that 

the regulations should become effective 

before such time. These revised final 

Guidelines will be effective 30 days 

after publication in the Federal 

Register, which meets the APA effective 

date requirements. Given that these 

revised final Guidelines do not impose 

any additional reporting, disclosure, or 

other requirements on insured 

depository institutions, but rather 

reduce reporting requirements, the 

effective date of 30 days after 

publication in the Federal Register, 

rather than the first day of the calendar 

quarter following publication, is 

consistent with RCDRIA. 

Section 302 of RCDRIA also requires 

the OCC to consider, consistent with the 

principles of safety and soundness and 

the public interest, any administrative 

burdens these revised final Guidelines 

would place on insured depository 

institutions, including small depository 

institutions, and their customers as well 

as the benefits of such regulations when 

determining the effective date and 

administrative compliance requirements 

of new regulations that impose new 

reporting, disclosure, or other 

requirements on insured depository 

institutions. The OCC has considered 

the changes made by these revised final 

Guidelines and believes that the 

effective date of 30 days after 

publication in the Federal Register is 

appropriate. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act (12 U.S.C. 4809(a)), requires 

the OCC to use plain language in all 

proposed and final rules published after 

January 1, 2000. The OCC received no 

comment on these matters and believes 

that these revised final Guidelines are 

written plainly and clearly. 

List of Subjects in 12 CFR Part 30 

Banks, Banking, Consumer protection, 

National banks, Privacy, Safety and 

soundness, Reporting and 

recordkeeping requirements. 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66607 

2See http://rgl.faa.gov/. 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

For the reasons set forth in the 

preamble, and under the authority of 12 

U.S.C. 93a and 12 U.S.C. 1831p–1, 

chapter I of title 12 of the Code of 

Federal Regulations is amended as 

follows: 

PART 30—SAFETY AND SOUNDNESS 

STANDARDS 

■ 1. The authority citation for part 30 

continues to read as follows: 

Authority: 12 U.S.C. 1, 93a, 371, 1462a, 

1463, 1464, 1467a, 1818, 1828, 1831p–1, 

1881–1884, 3102(b) and 5412(b)(2)(B); 15 

U.S.C. 1681s, 1681w, 6801, and 6805(b)(1). 

■ 2. Appendix E to part 30 is amended 

by: 

■ a. Removing the phrase ‘‘$50 billion’’ 

and adding in its place the phrase ‘‘$250 

billion’’ everywhere that it appears; 

■ b. Revising section I.B.1; 

■ c. Removing section I.B.2 and I.B.3; 

■ d. Redesignating section I.B.4 as 

section I.B.2; 

■ e. In newly redesignated section I.B.2: 

■ i. Removing ‘‘January 1, 2017’’ and 

adding in its place the words‘‘January 

28, 2019’’; and 

■ ii. Removing the phrase ‘‘18 months’’ 

and adding in its place the phrase ‘‘12 

months’’. 

The revision reads as follows: 

Appendix E to Part 30—OCC 

Guidelines Establishing Standards for 

Recovery Planning by Certain Large 

Insured National Banks, Insured 

Federal Savings Associations, and 

Insured Federal Branches 

* * * * * 

I. * * * 

B. * * * 

1. A covered bank with average total 

consolidated assets, calculated according to 

paragraph I.E.1. of this appendix, equal to or 

greater than $250 billion as of January 28, 

2019 should be in compliance with this 

appendix on January 28, 2019. 

* * * * * 

Dated: December 18, 2018. 

William A. Rowe, 

Chief Risk Officer. 

[FR Doc. 2018–27952 Filed 12–26–18; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 23 

[Docket No.FAA–2018–0918; Notice No. 23– 

291–SC] 

Special Conditions: Innovative 

Solutions & Support, Inc.; Textron 

Aviation, Inc. Model B200-Series 

Airplanes; Autothrust Functions 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions. 

SUMMARY: These special conditions are 

issued for Textron Aviation, Inc. B200- 

series airplanes. These airplanes as 

modified by Innovative Solutions & 

Support, Inc., will have a novel or 

unusual design feature associated with 

an autothrust system. The applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for this design feature. These special 

conditions contain the additional safety 

standards the Administrator considers 

necessary to establish a level of safety 

equivalent to that established by the 

existing airworthiness standards. 

DATES: These special conditions are 

effective December 27, 2018. 

FOR FURTHER INFORMATION CONTACT: Jeff 

Pretz, AIR–691, Regulations & Policy 

Section, Small Airplane Standards 

Branch, Policy & Innovation Division, 

Aircraft Certification Service, Federal 

Aviation Administration, 901 Locust; 

Kansas City, Missouri 64106; telephone 

(816) 329–3239; facsimile (816) 329– 

4090; email Jeff.Pretz@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On December 14, 2017, Innovative 

Solutions & Support, Inc. (Innovative 

Solutions), applied for a supplemental 

type certificate for installation of an 

autothrust system (ATS)—also known as 

an autothrottle system—in Textron 

Aviation, Inc., (Textron) B200-series 

airplanes. The B200-series airplanes are 

powered by two Pratt & Whitney PT6A 

turbo-propeller engines—depending on 

airplane model—that can carry thirteen 

passengers, including two flightcrew 

members. These airplanes have a service 

ceiling up to 35,000-feet and a 

maximum takeoff weight of up to 12,500 

pounds in the normal category. These 

airplanes are approved for single-pilot 

operation. 

The installation of an ATS in Textron 

B200-series airplanes is intended to 

reduce pilot workload. The ATS is 

useable in all phases of flight except 

below decision height on approach. The 

system includes torque control and 

airspeed modes along with monitors to 

prevent the system from exceeding 

critical engine or airspeed limits. 

Throttle movement is provided by a 

stepper motor acting through a linear 

actuator, which acts as a link between 

the stepper motor and throttle. The liner 

actuator can be overridden by pilot 

movement of the throttle and 

automatically disengages upon 

disagreement in the expected throttle 

position versus its actual position. 

Section 23.1329, amendment 23–49, 

only contained requirements for 

automatic pilot systems that act on the 

airplane flight controls. Autothrust 

systems are automatic systems that act 

on the thrust controls. These systems 

provide enhanced automation and 

safety, but may also introduce pilot 

confusion, countering the safety benefit. 

Transport Airplane regulation 14 CFR 

25.1329, amendment 25–119, addresses 

these concerns. Therefore, these special 

conditions are based on § 25.1329 and 

provide additional requirements to 

standardize the pilot interface and 

system behavior and enhance pilot 

awareness of system active and armed 

modes. 

Type Certification Basis 

Under the provisions of § 21.101, 

Innovative Solutions must show that 

B200-series airplanes, as changed, 

continue to meet the applicable 

provisions of the regulations 

incorporated by reference in Type 

Certificate (TC) No. A24CE 2 or the 

applicable regulations in effect on the 

date of application for the change. The 

regulations incorporated by reference in 

the type certificate are commonly 

referred to as the ‘‘original type 

certification basis.’’ The regulations 

incorporated by reference in TC No. 

A24CE are as follows: 14 CFR part 23, 

amendments 23–1 through 23–9, plus 

various later part 23 amendments— 

depending on the model and serial 

number of the airplane—as noted on 

Type Certification Data Sheet A24CE. 

If the Administrator finds the 

applicable airworthiness regulations 

(i.e., 14 CFR part 23) do not contain 

adequate or appropriate safety standards 

for B200-series airplanes because of a 

novel or unusual design feature, special 

conditions are prescribed under the 

provisions of § 21.16. 

Special conditions are initially 

applicable to the model(s) for which 

they are issued. Should the applicant 

apply for a supplemental type certificate 

to modify any other model included on 


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