Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 80367 

1Public Law 111–203 (July 21, 2010). 

2The SMSIA is defined as $250,000. 12 CFR 

745.1(e). 

3Federal credit unions cannot offer interestbearing accounts; they can only pay dividends 

pursuant to the Federal Credit Union Act. Some 

State chartered, Federally insured credit unions 

may offer interest-bearing accounts pursuant to 

their State credit union acts. 

4The NCUA Board does not believe the general 

provisions of Article III, Section 5(a) of the Federal 

Credit Union Bylaws, or other similar provisions, 

affect the definition of noninterest-bearing 

transaction account or the share insurance coverage 

of this kind of account. Article III, Section 5(a) of 

the bylaws states that with respect to member 

withdrawals from share accounts, the Federal credit 

union’s board of directors has the right, at any time, 

to require members to give up to 60 days written 

notice of intention to withdraw the whole or any 

part of the amounts paid in by members. The NCUA 

Board considers this a broad, administrative 

Continued 

PART 701—ORGANIZATION AND 

OPERATIONS OF FEDERAL CREDIT 

UNIONS 

1. The authority for part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1757, 1765, 

1766, 1781, 1782, 1787, 1789; Title V, Pub. 

L. 109–351, 120 Stat. 1966. 

2. Amend § 701.34 by adding the 

following at the end of paragraph (a)(3): 

§ 701.34 Designation of low-income 

status; Acceptance of secondary capital 

accounts by low-income designated credit 

unions. 

(a) * * * 

(3) * * * A Federal credit union may 

rely on a sample of membership income 

data drawn from loan files or a member 

survey provided the federal credit union 

can demonstrate the sample is a 

statistically valid, random sample by 

submitting with its data a narrative 

describing its sampling technique and 

evidence supporting the validity of the 

analysis, including the actual data set 

used in the analysis. The random 

sample must be representative of the 

membership, must be sufficient in both 

number and scope on which to base 

conclusions, and must have a minimum 

confidence level of 95% and a 

confidence interval of 5%. 

* * * * * 

[FR Doc. 2010–32131 Filed 12–21–10; 8:45 am] 

BILLING CODE 7535–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 745 

RIN 3133–AD79 

Share Insurance and Appendix 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: Section 343 of the DoddFrank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act) 1

provides that, on a temporary basis, the 

NCUA Board shall fully insure the net 

amount that any member or depositor at 

an insured credit union maintains in a 

noninterest-bearing transaction account. 

Although this insurance coverage is selfimplementing, and therefore already in 

place, this proposed rule: clarifies the 

definition of the term ‘‘noninterestbearing transaction account;’’ provides 

that this new insurance coverage is 

separate from, and in addition to, other 

coverage provided in NCUA’s share 

insurance rules; and imposes certain 

notice and disclosure requirements. 

DATES: Comments must be received on 

or before February 22, 2011. 

ADDRESSES: You may submit comments 

by any of the following methods (Please 

send comments by one method only): 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• NCUA Web Site: http:// 

www.ncua.gov/ 

RegulationsOpinionsLaws/ 

proposed_regs/proposed_regs.html. 

Follow the instructions for submitting 

comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 

name] Comments on Proposed Rule 745, 

Share Insurance and Appendix’’ in the 

e-mail subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for e-mail. 

• Mail: Address to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Public Inspection: All public 

comments are available on the agency’s 

Web site at http://www.ncua.gov/ 

RegulationsOpinionsLaws/comments as 

submitted, except as may not be 

possible for technical reasons. Public 

comments will not be edited to remove 

any identifying or contact information. 

Paper copies of comments may be 

inspected in NCUA’s law library at 1775 

Duke Street, Alexandria, Virginia 22314, 

by appointment weekdays between 

9 a.m. and 3 p.m. To make an 

appointment, call (703) 518–6546 or 

send an e-mail to OGCMail@ncua.gov. 

FOR FURTHER INFORMATION CONTACT: 

Frank Kressman, Senior Staff Attorney, 

Office of General Counsel, at the above 

address or telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

I. The Dodd-Frank Act 

Section 343 of the Dodd-Frank Act 

amends the Federal Credit Union Act 

(FCU Act) to include full share 

insurance coverage, beyond the 

Standard Maximum Share Insurance 

Amount (SMSIA),2 for the net amount 

held in a noninterest-bearing transaction 

account by any member or depositor at 

an insured credit union. Throughout 

this proposal, the term ‘‘noninterestbearing’’ should be read as including 

‘‘nondividend-bearing’’ to translate the 

provisions of the Dodd-Frank Act into 

credit union terminology.3 Insured 

credit unions are not required to take 

any action to receive this additional 

insurance coverage. The additional 

coverage provided by Section 343 of the 

Dodd-Frank Act is temporary through 

December 31, 2012. 

II. The Proposed Rule 

Amendments to Share Insurance Rules 

Section 343 of the Dodd-Frank Act 

amends the share insurance provisions 

of the FCU Act (12 U.S.C. 1787(k)(1)) to 

provide separate insurance coverage for 

noninterest-bearing transaction 

accounts. Accordingly, as discussed in 

detail below, NCUA proposes to revise 

its share insurance regulations in 12 

CFR Part 745 to include this new 

temporary share insurance account 

category. 

Definition of Noninterest-Bearing 

Transaction Account 

The proposed rule incorporates the 

definition of noninterest-bearing 

transaction account in section 343 of the 

Dodd-Frank Act. Section 343 defines a 

noninterest-bearing transaction account 

as ‘‘an account or deposit maintained at 

an insured credit union with respect to 

which interest is neither accrued nor 

paid; on which the account holder or 

depositor is permitted to make 

withdrawals by negotiable or 

transferable instrument, payment orders 

of withdrawal, telephone or other 

electronic media transfers, or other 

similar items for the purpose of making 

payments or transfers to third parties or 

others; and on which the insured credit 

union does not reserve the right to 

require advance notice of an intended 

withdrawal.’’ This definition of 

noninterest-bearing transaction account 

encompasses only traditional, 

noninterest-bearing demand deposit 

(checking or share draft) accounts that 

allow for an unlimited number of 

deposits and withdrawals at any time,4


srobinson on DSKHWCL6B1PROD with PROPOSALS
80368 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 

provision that does not alter the nature of an 

account that otherwise satisfies the definition of a 

noninterest-bearing transaction account. 

whether held by a business, an 

individual, or other type of member. It 

does not include negotiable order of 

withdrawal (NOW) accounts, moneymarket accounts (MMA), or Interest on 

Lawyers Trust Accounts (IOLTA). 

Under this proposal, whether an 

account is considered noninterestbearing or nondividend bearing is 

determined by the terms of the account 

agreement and not by the fact that the 

dividend rate on an account may be zero 

percent at a particular point in time. For 

example, an insured credit union might 

offer an account with a dividend rate of 

zero percent except when the balance 

exceeds a prescribed threshold. 

Similarly, an account that normally 

bears dividends might have a dividend 

rate of zero for a particular period if the 

board of directors of the insured credit 

union where the account is maintained 

determines not to, or is prohibited from, 

declaring a dividend for that period. 

Such an account would not qualify as a 

noninterest-bearing transaction account 

even when the balance is less than the 

prescribed threshold or no dividend is 

declared and the dividend rate is zero 

percent for a particular period. Under 

the proposed rule, such an account 

would be treated as an interest-bearing 

or dividend-bearing account at all times 

because the account agreement provides 

for the payment of dividends under 

certain circumstances. However, the 

waiving of fees on an account would not 

be treated as the earning of dividends. 

For example, an insured credit union 

can sometimes waive fees or provide 

fee-reducing credits for members with 

share draft accounts. Under the 

proposed rule, such account features 

would not prevent an account from 

qualifying as a noninterest-bearing 

transaction account, as long as the 

account otherwise satisfies the 

definition of a noninterest-bearing 

transaction account. 

The proposed rule’s definition of 

noninterest-bearing transaction account 

would include official checks issued by 

insured credit unions, such as 

negotiable cashier’s or certified checks. 

Ownership of such instruments and the 

right to full insurance coverage are 

determined pursuant to § 745.11 of 

NCUA’s share insurance rules regarding 

accounts evidenced by negotiable 

instruments. 

Funds swept (or transferred) from a 

share account to either another type of 

share account or a non-deposit account 

are treated as being in the account to 

which the funds were transferred prior 

to the time of failure. For example, if 

pursuant to an agreement between an 

insured credit union and its member, 

funds are swept daily from a 

noninterest-bearing transaction account 

to an account or product that is not a 

noninterest-bearing transaction account, 

then the funds in the resulting account 

or product would not be eligible for full 

insurance coverage as a noninterestbearing transaction account. However, 

the proposed rule includes an exception 

from this treatment of swept funds in 

situations where funds are swept from 

a noninterest-bearing transaction 

account to a noninterest-bearing savings 

account, such as an MMA. Often 

referred to as ‘‘reserve sweeps,’’ these 

products could entail an arrangement in 

which a single account is divided into 

two sub-accounts, a transaction account 

and an MMA. The amount and 

frequency of sweeps are often 

determined by an algorithm designed to 

minimize required reserves. In some 

situations, members may be unaware 

that this sweep mechanism is in place. 

Under the proposed rule, such accounts 

would be considered noninterestbearing transaction accounts. Apart 

from this exception for reserve sweeps, 

MMAs and noninterest-bearing savings 

accounts do not qualify as noninterestbearing transaction accounts. 

Insurance Coverage 

As noted, pursuant to section 343 of 

the Dodd-Frank Act, all funds held in 

noninterest-bearing transaction accounts 

are fully insured, without limit. As also 

specifically provided for in section 343 

of the Dodd-Frank Act, this unlimited 

coverage is separate from, and in 

addition to, the coverage provided to 

members with respect to other accounts 

held at an insured credit union. This 

means that funds held in noninterestbearing transaction accounts will not be 

counted for purposes of determining the 

amount of share insurance on shares 

held in other accounts, and in other 

rights and capacities, at the same 

insured credit union. For example, if a 

member has a $225,000 share certificate 

and a no-dividend share draft account 

with a balance of $300,000, both held in 

a single ownership capacity, he or she 

would be fully insured for $525,000 

(plus dividends accrued on the share 

certificate), assuming the member has 

no other single-ownership funds at the 

same credit union. First, coverage of 

$225,000 (plus accrued dividends) 

would be provided for the share 

certificate as a single ownership account 

(12 CFR 745.3) up to the SMSIA of 

$250,000. Second, full coverage of the 

$300,000 share draft account would be 

provided separately, despite the share 

draft account also being held as a single 

ownership account, because the account 

qualifies for unlimited separate coverage 

as a noninterest-bearing transaction 

account. 

Disclosure and Notice Requirements 

NCUA proposes notice and disclosure 

requirements to ensure that credit union 

members are aware of and understand 

what types of accounts will be covered 

by the temporary share insurance 

coverage for noninterest-bearing 

transaction accounts. There are two 

such requirements. As explained in 

detail below, insured credit unions must 

post a prescribed notice in their main 

office, each branch and, if applicable, on 

their Web site, and insured credit 

unions must notify members 

individually of any action they take to 

affect the share insurance coverage of 

funds held in noninterest-bearing 

transaction accounts. 

1. Posted Notice 

The proposed rule would require each 

insured credit union that offers 

noninterest-bearing transaction accounts 

to post, prominently, a copy of the 

following notice in the lobby of its main 

office, in each branch and, if it offers 

Internet deposit services, on its Web 

site: 

Notice of Changes in Temporary NCUA 

Insurance Coverage for Transaction 

Accounts 

In accordance with the Dodd-Frank Wall 

Street Reform and Consumer Protection Act, 

through December 31, 2012, all funds in 

‘‘noninterest-bearing transaction accounts’’ 

are insured in full by the National Credit 

Union Administration. This unlimited 

coverage is in addition to, and separate from, 

the coverage of at least $250,000 available to 

members under the NCUA’s general share 

insurance rules. 

The term ‘‘noninterest-bearing transaction 

account’’ includes a traditional share draft 

account (or demand deposit account) on 

which the insured credit union pays no 

dividend. It does not include any transaction 

account that may earn dividends, such as a 

negotiable order of withdrawal (‘‘NOW’’) 

account, money-market account, or Interest 

on Lawyers Trust Account (‘‘IOLTA’’), even if 

share drafts may be drawn on the account. 

The temporary full insurance coverage of 

‘‘noninterest-bearing transaction accounts’’ 

expires on December 31, 2012. After 

December 31, 2012, funds in noninterestbearing transaction accounts will be insured 

under the NCUA’s general share insurance 

rules, subject to the Standard Maximum 

Share Insurance Amount of $250,000. 

For more information about NCUA 

insurance coverage of transaction accounts, 

visit http://www.ncua.gov. 


srobinson on DSKHWCL6B1PROD with PROPOSALS
Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 80369 

2. Notice To Sweep Account and Other 

Members Whose Coverage on 

Noninterest-Bearing Transaction 

Accounts Is Affected by an Insured 

Credit Union Action 

Under the proposed notice 

requirements, if an insured credit union 

modifies the terms of its account 

agreement so that the account may pay 

dividends, the insured credit union 

must notify affected members that the 

account no longer will be eligible for 

full share insurance coverage as a 

noninterest-bearing transaction account. 

Though such notifications would be 

mandatory, the proposed rule does not 

impose specific requirements regarding 

the form of the notice. Rather, NCUA 

would expect insured credit unions to 

act in a commercially reasonable 

manner and to comply with applicable 

State and Federal laws and regulations 

in informing members of changes to 

their account agreements. 

III. Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact any proposed regulation may 

have on a substantial number of small 

credit unions (those under $10 million 

in assets). The proposed amendments 

enhance share insurance coverage for 

members with no significant direct cost 

to credit unions. Accordingly, the 

NCUA has determined and certifies that 

the proposed rule, if adopted, will not 

have a significant economic impact on 

a substantial number of small credit 

unions within the meaning of the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. 

Paperwork Reduction Act 

In accordance with section 3512 of 

the Paperwork Reduction Act of 1995 

(‘‘PRA’’), 44 U.S.C. 3501 et seq., an 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a currently valid Office of 

Management and Budget (‘‘OMB’’) 

control number. This Notice of 

Proposed Rulemaking (‘‘NPR’’) contains 

disclosure requirements, some of which 

implicate PRA as more fully explained 

below. 

The proposed new disclosure 

requirements are contained in sections 

745.14(c)(1) and 745.14(c)(2). More 

specifically, section 745.14(c)(1) would 

require that each insured credit union 

that offers noninterest-bearing 

transaction accounts post a ‘‘Notice of 

Changes In Temporary NCUA Insurance 

Coverage For Transaction Accounts’’ in 

the lobby of its main office and 

domestic branches and, if it offers 

Internet deposit services, on its Web 

site. Section 745.14(c)(2) would require 

that insured credit unions notify 

members of any action that affects the 

share insurance coverage of their funds 

held in noninterest-bearing transaction 

accounts. 

The disclosure requirement in section 

745.14(c)(1) would normally be subject 

to PRA. However, because NCUA has 

provided the specific text for the notice 

and allows for no variance in the 

language, the disclosure is excluded 

from coverage under PRA because ‘‘the 

public disclosure of information 

originally supplied by the Federal 

government to the recipient for the 

purpose of disclosure to the public is 

not included’’ within the definition of 

‘‘collection of information.’’ 5 CFR 

1320.3(c)(2). Therefore, NCUA is not 

submitting the section 745.14(c)(1) 

disclosure to OMB for review. 

The disclosure requirement in section 

745.14(c)(2) regarding sweep accounts 

and any action that affects the share 

insurance coverage of funds held in 

noninterest-bearing transaction accounts 

is mandatory for all insured credit 

unions, although insured credit unions 

would retain flexibility regarding the 

form of the notice. Therefore, in 

conjunction with publication of this 

NPR, NCUA is submitting to OMB a 

request to review the estimated burden 

associated with this disclosure 

requirement. 

The estimated burden for the 

proposed new disclosure under section 

745.14(c)(2) is as follows: 

Title: ‘‘Disclosure of Share Account 

Status.’’ 

Affected Public: Insured credit 

unions. 

Estimated Number of Respondents: 

150. 

Frequency of Response: On occasion 

(average of once per year per credit 

union). 

Average Time per Response: 8 hours. 

Estimated Annual Burden: 1,200 

hours. 

Comments are invited on: 

(a) Whether this collection of 

information is necessary for the proper 

performance of NCUA functions, 

including whether the information has 

practical utility; 

(b) The accuracy of the estimates of 

the burden of the information 

collection, including the validity of the 

methodologies and assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the information collection on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology; 

and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

All comments will become a matter of 

public record. Comments may be 

submitted to NCUA by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: Address to 

regcomments@ncua.gov. Include ‘‘[Your 

name] Comments on PRA Collection for 

Proposed Rule 745, Share Insurance and 

Appendix’’ in the e-mail subject line. 

• Fax: (703) 518–6319. Use the 

subject line described above for e-mail. 

• Mail: Address to Mary Rupp, 

Secretary of the Board, National Credit 

Union Administration, 1775 Duke 

Street, Alexandria, Virginia 22314– 

3428. 

• Hand Delivery/Courier: Same as 

mail address. 

Comments may also be submitted to 

the OMB Desk Officer for the NCUA, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, New Executive Office Building, 

Washington, DC 20503 with a copy to 

Mary Rupp, Secretary of the Board, 

NCUA, 1775 Duke Street, Alexandria, 

VA 22314. All comments should refer to 

the ‘‘Share Insurance Regulations— 

Unlimited Coverage for NoninterestBearing Transaction Accounts.’’ 

Executive Order 13132 

Executive Order 13132 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

State and local interests. In adherence to 

fundamental federalism principles, 

NCUA, an independent regulatory 

agency as defined in 44 U.S.C. 3502(5), 

voluntarily complies with the executive 

order. The proposed rule would not 

have substantial direct effect on the 

States, on the connection between the 

national government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. NCUA has 

determined that this proposed rule does 

not constitute a policy that has 

federalism implications for purposes of 

the executive order. 

The Treasury and General Government 

Appropriations Act, 1999—Assessment 

of Federal Regulations and Policies on 

Families 

NCUA has determined that this 

proposed rule would not affect family 


srobinson on DSKHWCL6B1PROD with PROPOSALS
80370 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 

well-being within the meaning of 

section 654 of the Treasury and General 

Government Appropriations Act, 1999, 

Public Law 105–277, 112 Stat. 2681 

(1998). 

Agency Regulatory Goal 

NCUA’s goal is to promulgate clear 

and understandable regulations that 

impose minimal regulatory burden. We 

request your comments on whether the 

proposed amendments are 

understandable and minimally intrusive 

if implemented as proposed. 

List of Subjects in 12 CFR Part 745 

Credit unions, Share insurance. 

By the National Credit Union 

Administration Board on December 16, 2010. 

Mary F. Rupp, 

Secretary of the Board. 

For the reasons discussed above, 

NCUA proposes to amend 12 CFR Part 

745 as follows: 

PART 745—SHARE INSURANCE AND 

APPENDIX 

1. The authority citation for Part 745 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1757, 1765, 

1766, 1781, 1782, 1787, 1789. 

2. Amend § 745.1 by adding a new 

paragraph (f) to read as follows: 

§ 745.1 Definitions. 

* * * * * 

(f) The term noninterest-bearing 

transaction account means an account 

or deposit maintained at an insured 

credit union— 

(1) With respect to which either 

interest or dividends are neither accrued 

nor paid; 

(2) On which the account holder or 

depositor is permitted to make 

withdrawals by negotiable or 

transferable instrument, payment orders 

of withdrawal, telephone or other 

electronic media transfers, or other 

similar items for the purpose of making 

payments or transfers to third parties or 

others; and 

(3) On which the insured credit union 

does not reserve the right to require 

advance notice of an intended 

withdrawal. 

3. Add § 745.14 to read as follows: 

§ 745.14 Noninterest-bearing transaction 

accounts. 

(a) Separate insurance coverage. 

Through December 31, 2012, a 

member’s funds in a ‘‘noninterestbearing transaction account’’ (as defined 

in § 745.1(f) of this part) are fully 

insured, irrespective of the SMSIA. 

Such insurance coverage shall be 

separate from the coverage provided for 

other accounts maintained at the same 

insured credit union. 

(b) Certain swept funds. NCUA will 

treat funds swept from a noninterestbearing transaction account to a 

noninterest-bearing savings deposit 

account as being in a noninterestbearing transaction account. 

(c) Disclosure and notice 

requirements. (1) Each insured credit 

union that offers noninterest-bearing 

transaction accounts must post 

prominently the following notice in the 

lobby of its main office, in each branch 

and, if it offers Internet deposit services, 

on its Web site: 

Notice of Changes in Temporary NCUA 

Insurance Coverage for Transaction 

Accounts 

In accordance with the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act, through December 31, 

2012, all funds in ‘‘noninterest-bearing 

transaction accounts’’ are insured in full 

by the National Credit Union 

Administration. This unlimited 

coverage is in addition to, and separate 

from, the coverage of at least $250,000 

available to members under the NCUA’s 

general share insurance rules. 

The term ‘‘noninterest-bearing 

transaction account’’ includes a 

traditional share draft account (or 

demand deposit account) on which the 

insured credit union pays no interest or 

dividend. It does not include any 

transaction account that may earn 

interest or dividends, such as a 

negotiable order of withdrawal (‘‘NOW’’) 

account, money-market account, or 

Interest on Lawyers Trust Account 

(‘‘IOLTA’’), even if share drafts may be 

drawn on the account. 

The temporary full insurance 

coverage of ‘‘noninterest-bearing 

transaction accounts’’ expires on 

December 31, 2012. After December 31, 

2012, funds in noninterest-bearing 

transaction accounts will be insured 

under the NCUA’s general share 

insurance rules, subject to the Standard 

Maximum Share Insurance Amount of 

$250,000. 

For more information about NCUA 

insurance coverage of transaction 

accounts, visit http://www.ncua.gov. 

(2) If an insured credit union uses 

sweep arrangements, modifies the terms 

of an account, or takes other actions that 

result in funds no longer being eligible 

for full coverage under this section, the 

insured credit union must notify 

affected members and clearly advise 

them, in writing, that such actions will 

affect their share insurance coverage. 

[FR Doc. 2010–32129 Filed 12–21–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–1024; Directorate 

Identifier 2010–NE–34–AD] 

RIN 2120–AA64 

Airworthiness Directives; General 

Electric Company GE90–76B; GE90– 

77B; GE90–85B; GE90–90B; and 

GE90–94B Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above. This proposed 

AD would require initial and repetitive 

fluorescent penetrant inspections (FPIs) 

and eddy current inspections (ECIs) of 

the high-pressure compressor rotor 

(HPCR) 8–10 stage spool, part numbers 

(P/Ns) 1844M90G01 and 1844M90G02, 

for cracks between the 9–10 stages, at 

each piece-part exposure. This proposed 

AD was prompted by cracks discovered 

on one HPCR 8–10 spool between the 

9–10 stages in the weld joint. We are 

proposing this AD to prevent failure of 

the HPCR 8–10 stage spool, uncontained 

engine failure, and damage to the 

airplane. 

DATES: We must receive comments on 

this proposed AD by February 7, 2011. 

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: 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:// 

www.regulations.gov; or in person at the 

Docket Management Facility 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 Office 

(phone: 800–647–5527) is in the 

ADDRESSES section. Comments will be 


srobinson on DSKHWCL6B1PROD with PROPOSALS