Federal Register / Vol. 76, No. 189 / Thursday, September 29, 2011 / Rules and Regulations 60367 

PART 702—PROMPT CORRECTIVE 

ACTION 

■ 5. The authority citation for part 702 

continues to read as follows: 

Authority: 12 U.S.C. 1766(a), 1790(d). 

■ 6. In 702.2, revise paragraph (f)(3) and 

add paragraph (f)(4) to read as follows: 

§ 702.2 Definitions. 

* * * * * 

(f) * * * 

(3) For a credit union that acquires 

another credit union in a mutual 

combination, net worth includes the 

retained earnings of the acquired credit 

union, or of an integrated set of 

activities and assets, less any bargain 

purchase gain recognized in either case 

to the extent the difference between the 

two is greater than zero. The acquired 

retained earnings must be determined at 

the point of acquisition under generally 

accepted accounting principles. A 

mutual combination is a transaction in 

which a credit union acquires another 

credit union or acquires an integrated 

set of activities and assets that is 

capable of being conducted and 

managed as a credit union. 

(4) The term ‘‘net worth’’ also 

includes loans to and accounts in an 

insured credit union established 

pursuant to section 208 of the Act [12 

U.S.C. 1788], provided such loans and 

accounts: 

(i) Have a remaining maturity of more 

than 5 years; 

(ii) Are subordinate to all other claims 

including those of shareholders, 

creditors and the National Credit Union 

Share Insurance Fund; 

(iii) Are not pledged as security on a 

loan to, or other obligation of, any party; 

(iv) Are not insured by the National 

Credit Union Share Insurance Fund; 

(v) Have non-cumulative dividends; 

(vi) Are transferable; and 

(vii) Are available to cover operating 

losses realized by the insured credit 

union that exceed its available retained 

earnings. 

* * * * * 

PART 725—NATIONAL CREDIT UNION 

ADMINISTRATION CENTRAL 

LIQUIDITY FACILITY 

■ 7. The authority citation for part 725 

continues to read as follows: 

Authority: Secs. 301–307 Federal Credit 

Union Act, 92 Stat. 3719–3722 (12 U.S.C. 

1795–1795f). 

§ 725.18 [Amended] 

■ 8. In § 725.18, amend paragraph (c) by 

removing the words ‘‘by § 700.2(e)(1)’’ 

and adding in its place the words ‘‘in 

paragraph (1) to the definition of 

‘‘insolvency in § 700.2’’. 

PART 741—REQUIREMENTS FOR 

INSURANCE 

■ 9. The authority citation for part 741 

continues to read as follows: 

Authority: 12 U.S.C. 1757, 1766(a), 1781– 

1790, and 1790d; 31 U.S.C. 3717. 

■ 10. In § 741.4, in paragraph (b), revise 

the introductory text to the definition of 

‘‘equity ratio’’ to read as follows: 

§ 741.4 Insurance premium and one 

percent deposit. 

* * * * * 

(b) * * * 

Equity ratio, which shall be calculated 

using the financial statements of the 

NCUSIF alone, without any 

consolidation or combination with the 

financial statements of any other fund or 

entity, means the ratio of: 

* * * * * 

[FR Doc. 2011–24907 Filed 9–28–11; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0218; Directorate 

Identifier 2009–CE–006–AD; Amendment 

39–16820; AD 2009–13–06 R1] 

RIN 2120–AA64 

Airworthiness Directives; Piper 

Aircraft, Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are revising an existing 

airworthiness directive (AD) for certain 

Piper Aircraft, Inc. Models PA–23, PA– 

23–160, PA–23–235, PA–23–250, PA– 

23–250 (Navy UO–1), PA–E23–250, PA– 

31, PA–31–300, PA–31–325, PA–31– 

350, PA–31P, PA–31P–350, PA–31T, 

PA–31T1, PA–31T2, PA–31T3, PA–42, 

PA–42–720, and PA–42–1000 airplanes 

that are equipped with a baggage door 

in the fuselage nose section (a nose 

baggage door). That AD currently 

establishes life limits and replacement 

requirements for safety-critical nose 

baggage door components and repetitive 

inspections and lubrication of the nose 

baggage door latching mechanism and 

lock assembly. This new AD removes 

the requirement for the nose baggage 

door compartment interior light 

inspection and retains the other 

requirements from AD 2009–13–06, 

Amendment 39–15944. This AD was 

prompted by further investigation and a 

request for an alternative method of 

compliance (AMOC). We are issuing 

this AD to correct the unsafe condition 

on these products. 

DATES: This AD is effective November 3, 

2011. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of July 24, 2009 (74 FR 29118, June 

19, 2009). 

ADDRESSES: For service information 

identified in this AD, contact Piper 

Aircraft, Inc., 2926 Piper Drive, Vero 

Beach, Florida 32960; telephone: (772) 

567–4361; fax: (772) 978–6573; Internet: 

http://www.newpiper.com/company/ 

publications.asp. You may review 

copies of the referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

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 AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Document Management Facility, U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue, SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Gregory K. Noles, Aerospace Engineer, 

FAA, Atlanta Aircraft Certification 

Office, 1701 Columbia Avenue, College 

Park, Georgia 30337; telephone: (404) 

474–5551; fax: (404) 474–5606; e-mail: 

gregory.noles@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to revise AD 2009–13–06, 

amendment 39–15944 (74 FR 29118, 

June 19, 2009). That AD applies to the 

specified products. The NPRM 

published in the Federal Register on 

May 20, 2011 (76 FR 29176). That 

NPRM proposed to continue to require 

establishment of life limits for safetycritical nose baggage door components. 

That NPRM also proposed to continue 

to require replacement of those safetycritical nose baggage door components 


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60368 Federal Register / Vol. 76, No. 189 / Thursday, September 29, 2011 / Rules and Regulations 

and repetitive inspections and 

lubrications of the nose baggage door 

latching mechanism and lock assembly. 

The NPRM also proposed to remove the 

requirement for the nose baggage door 

compartment interior light inspection. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. Ed 

Keith of Wright Air Service, the Aircraft 

Owners and Pilots Association, Gary 

King, and several others commented 

that they support the NPRM. The 

following presents a comment received 

on the proposal and the FAA’s response 

to the comment: 

Revised Compliance Time 

Ben Stevens and another commenter 

requested we revise the compliance 

time in paragraph (f)(2) for the repetitive 

interval to allow for a 10 percent (110 

hours) overrun for return to a 

maintenance base for inspection. The 

commenters stated this would match 

program extensions for aircraft that are 

in for-hire or instructional usage per 14 

CFR 91.409(b) and that similar 

allowance had been allowed in other 

ADs. 

We agree with this comment because 

the requested extension provides an 

acceptable level of safety for this class 

of aircraft. We revised paragraph (f)(2) of 

this AD to include the following text: 

‘‘Initially within 100 hours TIS after 

July 24, 2009 (the effective date retained 

from AD 2009–13–06, amendment 

39–15944 (74 FR 29118, June 19, 2009); 

and repetitively thereafter at intervals of 

100 hours TIS. The 100-hour interval 

may be exceeded by not more than 10 

hours TIS to reach a place where the 

inspection can be done, per 14 CFR 

91.409(b). The excess time used to reach 

a place where the inspection can be 

done must be included in computing 

the next 100 hours of TIS.’’ 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting the AD 

with the change described previously 

and minor editorial changes. We have 

determined that these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

correcting the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

We also determined that these 

changes will not increase the economic 

burden on any operator or increase the 

scope of the AD. 

Costs of Compliance 

We estimate that this AD affects 8,000 

airplanes of U.S. registry. 

We estimate the following costs to 

comply with this AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Inspection and parts replacement of nose 

baggage door.

4 work-hours × $85 per hour = $340 ............. $190 $530 $4,240,000 

The new requirements of this AD add 

no additional economic burden. The 

increased estimated cost of this AD is 

due to increased labor cost from 2009 

when AD 2009–13–06, amendment 39– 

15944 (74 FR 29118, June 19, 2009) was 

issued. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

Section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this AD will 

not have federalism implications under 

Executive Order 13132. This AD will 

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 that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

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. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing airworthiness directive AD 

2009–13–06, amendment 39–15944 (74 

FR 29118, June 19, 2009), and adding 

the following new AD: 

2009–13–06 R1 Piper Aircraft, Inc.: 

Amendment 39–16820; Docket No. 

FAA–2009–0218; Directorate Identifier 

2009–CE–006–AD. 

(a) Effective Date 

This airworthiness directive (AD) is 

effective November 3, 2011. 

(b) Affected ADs 

This AD revises AD 2009–13–06, 

amendment 39–15944 (74 FR 29118, June 19, 

2009). 

(c) Applicability 

This AD applies to Models PA–23, PA–23– 

160, PA–23–235, PA–23–250, PA–23–250 

(Navy UO–1), PA–E23–250, PA–31, PA–31– 

300, PA–31–325, PA–31–350, PA–31P, PA– 

31P–350, PA–31T, PA–31T1, PA–31T2, PA– 


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Federal Register / Vol. 76, No. 189 / Thursday, September 29, 2011 / Rules and Regulations 60369 

31T3, PA–42, PA–42–720, and PA–42–1000 

airplanes, all serial numbers, that are: 

(1) Certificated in any category; and 

(2) Equipped with a baggage door in the 

fuselage nose section (a nose baggage door). 

(d) Subject 

Joint Aircraft System Component (JASC)/ 

Air Transport Association (ATA) of America 

Code, 52, Doors. 

(e) Unsafe Condition 

This AD was prompted by several 

incidents and accidents, including fatal 

accidents, where the nose baggage door 

opening in flight was listed as a causal factor. 

We are issuing this AD to establish life limits 

for safety-critical nose baggage door 

components, replace those safety-critical 

nose baggage door components, and 

repetitively inspect and lubricate the nose 

baggage door latching mechanism and lock 

assembly. The door opening in flight could 

significantly affect the handling and 

performance of the aircraft. It could also 

allow baggage to be ejected from the nose 

baggage compartment and strike the 

propeller. This failure could lead to loss of 

control. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

Actions Compliance Procedures 

(1) For all aircraft: (i) Inspect the nose baggage 

door assembly for damaged, worn, corroded, 

or non-conforming components; (ii) Replace 

life-limited components specified in the service information; and (iii) Install or inspect, as 

applicable, the nose baggage placard following the service information.

Initially within 1,000 hours time-in-service 

(TIS) since all life-limited components were 

installed new following Piper Aircraft, Inc. 

Mandatory Service Bulletin No. 1194A, 

dated November 10, 2008, or within the 

next 100 hours TIS after July 24, 2009 (the 

effective date retained from AD 2009–13– 

06, amendment 39–15944 (74 FR 29118, 

June 19, 2009), whichever occurs later. Repetitively thereafter at intervals not to exceed 1,000 hours TIS.

Follow INSTRUCTIONS: PART I of Piper Aircraft, Inc. Mandatory Service Bulletin No. 

1194A, dated November 10, 2008. As an 

alternative to using the part number 

100700–079 placard, you may fabricate a 

placard (using at least 

1⁄8-inch letters) with the words in figure 1 of 

this AD and install the placard directly 

above the nose baggage door handle. This 

AD does not require the verification of proper functioning of the nose baggage compartment interior light set forth in the last 

sentence of PART 1, paragraph 1, of Piper 

Aircraft, Inc. Mandatory Service Bulletin No. 

1194A, dated November 10, 2008. 

(2) For all aircraft: (i) Lubricate and inspect all 

nose baggage door latching and locking components for damaged, worn, corroded, or 

non-conforming components; and (ii) Verify 

the key can only be removed from the lock 

assembly in the locked position in accordance with the service instructions.

Initially within 100 hours TIS after July 24, 

2009 (the effective date retained from AD 

2009–13–06, amendment 39–15944 (74 FR 

29118, June 19, 2009); and repetitively 

thereafter at intervals of 100 hours TIS. The 

100-hour interval may be exceeded by not 

more than 10 hours TIS to reach a place 

where the inspection can be done, per 14 

CFR 91.409(b). The excess time used to 

reach a place where the inspection can be 

done must be included in computing the 

next 100 hours of TIS.

Follow INSTRUCTIONS: PART II of Piper Aircraft, Inc. Mandatory Service Bulletin No. 

1194A, dated November 10, 2008. 

(3) For all aircraft with damaged, worn, corroded, or non-conforming components: Repair/replace any damaged, worn, corroded, or 

non-conforming components.

Before further flight after any inspection required in paragraphs (f)(1) and (f)(2) of this 

AD where any evidence of damaged, worn, 

corroded or non-conforming components 

was found.

Follow Piper Aircraft, Inc. Mandatory Service 

Bulletin No. 1194A, dated November 10, 

2008. 


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60370 Federal Register / Vol. 76, No. 189 / Thursday, September 29, 2011 / Rules and Regulations 

(g) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Atlanta Aircraft 

Certification Office (ACO), 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 ACO, send it to the 

attention of the person identified in the 

Related Information section 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. 

(3) AMOCs approved for AD 2009–13–06, 

amendment 39–15944 (74 FR 29118, June 19, 

2009) are approved as AMOCs for this AD. 

The format has been revised and certain 

paragraphs have been rearranged since AD 

2009–13–06 was issued, including changes to 

paragraph identifiers in this AD. Previous 

AMOCs may refer to particular paragraph 

identifiers from the original AD, however, the 

corresponding actions of the AMOC in the 

revised AD still apply even though the 

identifiers have changed. 

(h) Related Information 

For more information about this AD, 

contact Gregory K. Noles, Aerospace 

Engineer, FAA, Atlanta ACO, 1701 Columbia 

Avenue, College Park, Georgia 30337; 

telephone: (404) 474–5551; fax: (404) 474– 

5606; e-mail: gregory.noles@faa.gov. 

(i) Material Incorporated by Reference 

(1) You must use Piper Aircraft, Inc. 

Mandatory Service Bulletin No. 1194A, dated 

November 10, 2008, to do the actions 

required by this AD, unless the AD specifies 

otherwise. The Director of the Federal 

Register approved the incorporation by 

reference (IBR) under 5 U.S.C. 552(a) and 1 

CFR part 51 on July 24, 2009 (74 FR 29118, 

June 19, 2009). 

(2) For service information identified in 

this AD, contact Piper Aircraft, Inc., 2926 

Piper Drive, Vero Beach, Florida 32960; 

telephone: (772) 567–4361; fax: (772) 978– 

6573; Internet: http://www.newpiper.com/ 

company/publications.asp. 

(3) You may review copies of the 

referenced service information at the FAA, 

Central Region, Office of the Regional 

Counsel, 901 Locust, Kansas City, Missouri 

64106. For information on the availability of 

this material at the FAA, call (816) 329–3768. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at an NARA facility, call 202–741– 

6030, or go to http://www.archives.gov/ 

federal_register/code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Kansas City, Missouri on 

September 20, 2011. 

Wes Ryan, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2011–25008 Filed 9–28–11; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 200, 201, and 204 

[Release No. 34–65385] 

Consolidation of the Office of the 

Executive Director With the Office of 

the Chief Operating Officer 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

amending its rules to reflect the 

consolidation of the Office of the 

Executive Director with the Office of the 

Chief Operating Officer, including 

amendments to replace references to the 

Executive Director with references to 

the Chief Operating Officer. 

DATES: Effective Date: September 29, 

2011. 

FOR FURTHER INFORMATION CONTACT: 

Jeffery Heslop, Chief Operating Officer, 

at (202) 551–2105, Securities and 

Exchange Commission, 100 F Street, 

NE., Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: 

I. Discussion 

Until recently, the support functions 

of the Commission were allocated 

primarily to the Office of the Executive 

Director (‘‘OED’’). In 2010, however, the 

Commission established the Office of 


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