Federal Register / Vol. 85, No. 234 / Friday, December 4, 2020 / Proposed Rules 78277 

prior charge-offs, depending on the condition of the 

asset, consistent with its accounting policies for 

other financial reporting purposes. 

16FASB ASC 310–40, ‘‘Troubled Debt 

Restructuring by Creditors.’’ 

17 ‘‘Re-Age’’ means returning a past due account 

to current status without collecting the total amount 

of principal, interest, and fees that are contractually 

due. 

18There may be instances where a workout loan 

is not a TDR even though the borrower is 

experiencing financial hardship. For example, a 

workout loan would not be a TDR if the fair value 

of cash or other assets accepted by a credit union 

from a borrower in full satisfaction of its receivable 

is at least equal to the credit union’s recorded 

investment in the loan, e.g., due to charge-offs. 

‘‘Charge-off’’ means a direct reduction 

(credit) to the carrying amount of a loan 

carried at amortized cost resulting from 

uncollectability with a corresponding 

reduction (debit) of the ALLL. Recoveries of 

loans previously charged off must be 

recorded when received. 

‘‘Commercial Loan’’ is defined consistent 

with Section 723.2 of the NCUA’s MEMBER 

BUSINESS LOANS; COMMERCIAL 

LENDING Rule, 12 CFR 723.2. 

‘‘Generally accepted accounting principles 

(GAAP)’’ means official pronouncements of 

the FASB as memorialized in the FASB 

Accounting Standards Codification® as the 

source of authoritative principles and 

standards recognized to be applied in the 

preparation of financial statements by 

federally insured credit unions in the United 

States with assets of $10 million or more. 

‘‘In the process of collection’’ means 

collection of the loan is proceeding in due 

course either: (1) Through legal action, 

including judgment enforcement procedures, 

or (2) in appropriate circumstances, through 

collection efforts not involving legal action 

which are reasonably expected to result in 

repayment of the debt or in its restoration to 

a current status in the near future, i.e., 

generally within the next 90 days. 

‘‘Member Business Loan’’ is defined 

consistent with Section 723.8 of the NCUA’s 

MEMBER BUSINESS LOANS; 

COMMERCIAL LENDING Rule, 12 CFR 

723.8. 

‘‘New Loan’’ means the terms of the revised 

loan are at least as favorable to the credit 

union (i.e., terms are market-based, and profit 

driven) as the terms for comparable loans to 

other customers with similar collection risks 

who are not refinancing or restructuring a 

loan with the credit union, and the revisions 

to the original debt are more than minor. 

‘‘Past Due’’ means a loan is determined to 

be delinquent in relation to its contractual 

repayment terms including formal 

restructures, and must consider the time 

value of money. Credit unions may use the 

following method to recognize partial 

payments on ‘‘consumer credit,’’ i.e., credit 

extended to individuals for household, 

family, and other personal expenditures, 

including credit cards, and loans to 

individuals secured by their personal 

residence, including home equity and home 

improvement loans. A payment equivalent to 

90 percent or more of the contractual 

payment may be considered a full payment 

in computing past due status. 

‘‘Recorded Investment in a Loan’’ means 

the loan balance adjusted for any 

unamortized premium or discount and 

unamortized loan fees or costs, less any 

amount previously charged off, plus recorded 

accrued interest. 

‘‘Troubled Debt Restructuring’’ is as 

defined in GAAP and means a restructuring 

in which a credit union, for economic or 

legal reasons related to a member borrower’s 

financial difficulties, grants a concession to 

the borrower that it would not otherwise 

consider.16 The restructuring of a loan may 

include, but is not necessarily limited to: 

(1) The transfer from the borrower to the 

credit union of real estate, receivables from 

third parties, other assets, or an equity 

interest in the borrower in full or partial 

satisfaction of the loan, 

(2) a modification of the loan terms, such 

as a reduction of the stated interest rate, 

principal, or accrued interest or an extension 

of the maturity date at a stated interest rate 

lower than the current market rate for new 

debt with similar risk, or 

(3) a combination of the above. 

A loan extended or renewed at a stated 

interest rate equal to the current market 

interest rate for new debt with similar risk is 

not to be reported as a restructured troubled 

loan. 

‘‘Well secured’’ means the loan is 

collateralized by: (1) A perfected security 

interest in, or pledges of, real or personal 

property, including securities with an 

estimable value, less cost to sell, sufficient to 

recover the recorded investment in the loan, 

as well as a reasonable return on that 

amount, or (2) by the guarantee of a 

financially responsible party. 

‘‘Workout Loan’’ means a loan to a 

borrower in financial difficulty that has been 

formally restructured so as to be reasonably 

assured of repayment (of principal and 

interest) and of performance according to its 

restructured terms. A workout loan typically 

involves a re-aging, extension, deferral, 

renewal, or rewrite of a loan.17 For purposes 

of this policy statement, workouts do not 

include loans made to market rates and terms 

such as refinances, borrower retention 

actions, or new loans.18

‘‘Extension’’ means extending monthly 

payments on a closed-end loan and rolling 

back the maturity by the number of months 

extended. The account is shown current 

upon granting the extension. If extension fees 

are assessed, they must be collected at the 

time of the extension and not added to the 

balance of the loan. 

‘‘Deferral’’ means deferring a contractually 

due payment on a closed-end loan without 

affecting the other terms, including maturity, 

of the loan. The account is shown current 

upon granting the deferral. 

‘‘Renewal’’ means underwriting a matured, 

closed-end loan generally at its outstanding 

principal amount and on similar terms. 

‘‘Rewrite’’ means significantly changing the 

terms of an existing loan, including payment 

amounts, interest rates, amortization 

schedules, or its final maturity. 

[FR Doc. 2020–25988 Filed 12–3–20; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–1107; Project 

Identifier 2019–SW–049–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for all 

Airbus Helicopters Model SA330J 

helicopters. This proposed AD was 

prompted by a report of failure of a 

second stage planet gear of the main 

gear box (MGB). This proposed AD 

would require replacement of the MGB 

particle detector assembly with an 

improved, elongated MGB particle 

detector assembly, as specified in a 

European Union Aviation Safety Agency 

(EASA) AD, which is proposed for 

incorporation by reference. The FAA is 

proposing this AD to address the unsafe 

condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by January 19, 

2021. 

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 

https://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. 

For material that will be incorporated 

by reference (IBR) in this AD, contact 

the EASA, Konrad-Adenauer-Ufer 3, 

50668 Cologne, Germany; phone: +49 

221 8999 000; email: ADs@

easa.europa.eu; internet: 

www.easa.europa.eu. You may find this 

IBR material on the EASA website at 

https://ad.easa.europa.eu. You may 

view this IBR material at the FAA, 

Office of the Regional Counsel, 

Southwest Region, 10101 Hillwood 

Pkwy, Room 6N–321, Fort Worth, TX 

76177. For information on the 

availability of this material at the FAA, 

78278 Federal Register / Vol. 85, No. 234 / Friday, December 4, 2020 / Proposed Rules 

call 817–222–5110. It is also available in 

the AD docket on the internet at https:// 

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

1107. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

1107; 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, any 

comments received, and other 

information. The street address for 

Docket Operations is listed above. 

Comments will be available in the AD 

docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Mahmood G. Shah, Aviation Safety 

Engineer, Fort Worth ACO Branch, 

FAA, 10101 Hillwood Pkwy., Fort 

Worth, TX 76177; phone: 817–222– 

5538; email: mahmood.g.shah@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2020–1107; Project Identifier 

2019–SW–049–AD’’ at the beginning of 

your comments. The most helpful 

comments reference a specific portion of 

the proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend this proposal 

because of those comments. 

Except for Confidential Business 

Information (CBI) as described in the 

following paragraph, and other 

information as described in 14 CFR 

11.35, the FAA will post all comments 

received, without change, to https://

www.regulations.gov, including any 

personal information you provide. The 

agency will also post a report 

summarizing each substantive verbal 

contact received about this proposal. 

Confidential Business Information 

CBI is commercial or financial 

information that is both customarily and 

actually treated as private by its owner. 

Under the Freedom of Information Act 

(FOIA) (5 U.S.C. 552), CBI is exempt 

from public disclosure. If your 

comments responsive to this NPRM 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 

page of your submission containing CBI 

as ‘‘PROPIN.’’ The FAA will treat such 

marked submissions as confidential 

under the FOIA, and they will not be 

placed in the public docket of this 

NPRM. Submissions containing CBI 

should be sent to Mahmood G. Shah, 

Aviation Safety Engineer, Fort Worth 

ACO Branch, FAA, 10101 Hillwood 

Pkwy., Fort Worth, TX 76177; phone: 

817–222–5538; email: 

mahmood.g.shah@faa.gov. Any 

commentary that the FAA receives that 

is not specifically designated as CBI will 

be placed in the public docket for this 

rulemaking. 

Discussion 

The EASA, which is the Technical 

Agent for the Member States of the 

European Union, has issued EASA AD 

2019–0108, dated May 17, 2019 (EASA 

AD 2019–0108) (also referred to as the 

Mandatory Continuing Airworthiness 

Information, or the MCAI), to correct an 

unsafe condition for all Airbus 

Helicopters Model SA330J helicopters. 

This proposed AD was prompted by 

a report of failure of a second stage 

planet gear of the MGB on a Model 

EC225 helicopter. Following a review of 

design similarities, it was determined 

that such an event might also occur on 

Model SA330J helicopters. The FAA is 

proposing this AD to address failure of 

a second stage planet gear of the MGB, 

which could lead to loss of control of 

the helicopter. See the MCAI for 

additional background information. 

Related Service Information Under 1 

CFR Part 51 

EASA AD 2019–0108 describes 

procedures for replacement of the MGB 

particle detector assembly with an 

improved, elongated MGB particle 

detector assembly. 

This material is reasonably available 

because the interested parties have 

access to it through their normal course 

of business or by the means identified 

in the ADDRESSES section. 

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 the 

bilateral agreement with the State of 

Design Authority, the FAA has been 

notified of the unsafe condition 

described in the MCAI referenced 

above. The FAA is proposing this AD 

because the FAA 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 

accomplishing the actions specified in 

EASA AD 2019–0108, described 

previously, as incorporated by 

reference, except for any differences 

identified as exceptions in the 

regulatory text of this proposed AD. 

Explanation of Required Compliance 

Information 

In the FAA’s ongoing efforts to 

improve the efficiency of the AD 

process, the FAA initially worked with 

Airbus and EASA to develop a process 

to use certain EASA ADs as the primary 

source of information for compliance 

with requirements for corresponding 

FAA ADs. The FAA has since 

coordinated with other manufacturers 

and civil aviation authorities (CAAs) to 

use this process. As a result, EASA AD 

2019–0108 will be incorporated by 

reference in the FAA final rule. This 

proposed AD would, therefore, require 

compliance with EASA AD 2019–0108 

in its entirety, through that 

incorporation, except for any differences 

identified as exceptions in the 

regulatory text of this proposed AD. 

Using common terms that are the same 

as the heading of a particular section in 

the EASA AD does not mean that 

operators need comply only with that 

section. For example, where the AD 

requirement refers to ‘‘all required 

actions and compliance times,’’ 

compliance with this AD requirement is 

not limited to the section titled 

‘‘Required Action(s) and Compliance 

Time(s)’’ in the EASA AD. Service 

information specified in EASA AD 

2019–0108 that is required for 

compliance with EASA AD 2019–0108 

will be available on the internet at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2020–1107 after the FAA final 

rule is published. 

Costs of Compliance 

The FAA estimates that this proposed 

AD affects 15 helicopters of U.S. 

registry. The FAA estimates the 

following costs to comply with this 

proposed AD: 

Federal Register / Vol. 85, No. 234 / Friday, December 4, 2020 / Proposed Rules 78279 

ESTIMATED COSTS FOR REQUIRED ACTIONS

Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

4 work-hours × $85 per hour = $340 .......................................................................................... $6,795 $7,135 $107,025 

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. 

The FAA is 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 

The FAA 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) Will not affect intrastate aviation 

in Alaska, 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. 

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: 

Airbus Helicopters: Docket No. FAA–2020– 

1107; Project Identifier 2019–SW–049– 

AD. 

(a) Comments Due Date 

The FAA must receive comments by 

January 19, 2021. 

(b) Affected Airworthiness Directives (ADs) 

None. 

(c) Applicability 

This AD applies to all Airbus Helicopters 

Model SA330J helicopters, certificated in any 

category. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 6320, Main rotor gearbox. 

(e) Reason 

This AD was prompted by a report of 

failure of a second stage planet gear of the 

main gear box (MGB). The FAA is issuing 

this AD to address failure of a second stage 

planet gear of the MGB, which could lead to 

loss of control of the helicopter. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Requirements 

Except as specified in paragraph (h) of this 

AD: Comply with all required actions and 

compliance times specified in, and in 

accordance with, European Union Aviation 

Safety Agency (EASA) AD 2019–0108, dated 

May 17, 2019 (EASA AD 2019–0108). 

(h) Exceptions to EASA AD 2019–0108 

(1) Where EASA AD 2019–0108 refers to its 

effective date, this AD requires using the 

effective date of this AD. 

(2) The ‘‘Remarks’’ section of EASA AD 

2019–0108 does not apply to this AD. 

(3) Where EASA AD 2019–0108 refers to 

flight hours (FH), this AD requires using 

hours time-in-service. 

(4) Although the service information 

referenced in EASA 2019–0108 specifies to 

discard certain parts, this AD does not 

include that requirement. 

(i) Special Flight Permit 

Special flight permits may be issued in 

accordance with 14 CFR 21.197 and 21.199 

to operate the helicopter to a location where 

the helicopter can be modified (if the 

operator elects to do so), provided that no 

passengers are onboard. 

(j) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Rotorcraft Standards Branch, 

FAA, may approve AMOCs for this AD. Send 

your proposal to: Manager, Rotorcraft 

Standards Branch, FAA, 10101 Hillwood 

Pkwy., Fort Worth, TX 76177; phone: 817– 

222–5110; email: 9-ASW-FTW-AMOCRequests@faa.gov. 

(k) Related Information 

(1) For EASA AD 2019–0108, contact the 

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; internet: 

www.easa.europa.eu. You may find this 

EASA AD on the EASA website at https://

ad.easa.europa.eu. You may view this 

material at the FAA, Office of the Regional 

Counsel, Southwest Region, 10101 Hillwood 

Pkwy, Room 6N–321, Fort Worth, TX 76177. 

For information on the availability of this 

material at the FAA, call 817–222–5110. This 

material may be found in the AD docket on 

the internet at https://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2020–1107. 

(2) For more information about this AD, 

contact Mahmood G. Shah, Aviation Safety 

Engineer, Fort Worth ACO Branch, FAA, 

10101 Hillwood Pkwy., Fort Worth, TX 

76177; phone: 817–222–5538; email: 

mahmood.g.shah@faa.gov. 

Issued on November 30, 2020. 

Lance T. Gant, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2020–26672 Filed 12–3–20; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–1106; Project 

Identifier MCAI–2020–01065–T] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT.