Federal Register / Vol. 65, No. 116 / Thursday, June 15, 2000 / Rules and Regulations 37481

levels of government. Therefore, it is

determined that this final rule does not

have federalism implications under

Executive Order 13132.

For the reasons discussed above, I

certify that this action (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); 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. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (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. Section 39.13 is amended by

adding the following new airworthiness

directive:

2000–12–15 Dassault Aviation:

Amendment 39–11793. Docket 2000–

NM–56–AD.

Applicability: All Model Falcon 2000,

Mystere-Falcon 900, Falcon 900EX, Fan Jet

Falcon, Mystere-Falcon 50, Mystere-Falcon

20, Mystere-Falcon 200, and Falcon 10 series

airplanes; certificated in any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent failure of the overwing

emergency exits to open, and consequent

injury to passengers or crew members during

an emergency evacuation, accomplish the

following:

Operational Test and Inspection

(a) Within 30 days after the effective date

of this AD, perform an operational test and

detailed visual inspection of the overwing

emergency exit from inside the cabin to

detect discrepancies (including separation,

tearing, wearing, arcing, cracking) in the

areas and components listed in Chapter 5

(ATA Code 52) of the applicable airplane

maintenance manual (AMM). Accomplish

the actions in accordance with the applicable

AMM. If any discrepancy is detected during

any test or inspection required by this

paragraph, prior to further flight, repair in

accordance with Chapter 5 (ATA Code 52) of

the applicable AMM. Repeat the operational

test and inspection thereafter at intervals not

to exceed 13 months.

Note 2: For the purposes of this AD, a

detailed visual inspection is defined as: ‘‘An

intensive visual examination of a specific

structural area, system, installation, or

assembly to detect damage, failure, or

irregularity. Available lighting is normally

supplemented with a direct source of good

lighting at intensity deemed appropriate by

the inspector. Inspection aids such as mirror,

magnifying lenses, etc., may be used. Surface

cleaning and elaborate access procedures

may be required.’’

Alternative Methods of Compliance

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, International Branch,

ANM–116.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the International Branch,

ANM–116.

Special Flight Permits

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Note 4: The subject of this AD is addressed

in French airworthiness directives 1999–

213–025(B), 1999–212–024(B), 1999–211–

023(B), and 1999–210–009(B); all dated May

19, 1999.

(d) This amendment becomes effective on

July 20, 2000.

Issued in Renton, Washington, on June 9,

2000.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 00–15188 Filed 6–14–00; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8883]

RIN 1545–AW53

Guidance Under Section 1032 Relating

to the Treatment of a Disposition by an

Acquiring Entity of the Stock of a

Corporation in a Taxable Transaction;

Correction

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains a

correction to Treasury Decision 8883,

which was published in the Federal

Register on Tuesday, May 16, 2000 (65

FR 31073), which provides guidance

under section 1032 of the Internal

Revenue Code, relating to the treatment

of a disposition by an acquiring entity

of the stock of a corporation in a taxable

transaction.

EFFECTIVE DATE: This correction is

effective May 16, 2000.

FOR FURTHER INFORMATION CONTACT: Filiz

Serbes at (202) 622–7550 (not a toll-free

number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject to correction are under section

1032 of the Internal Revenue Code.

Need for Correction

As published, Treasury Decision 8883

contains an error which may prove to be

misleading and is in need of

clarification.

Correction of Publication

Accordingly, the publication of the

final regulations (TD 8883), which was

the subject of FR Doc. 00–11900, is

corrected as follows:

§ 1.1032–3 [Corrected]

On page 31076, column 3, § 1.1032–

3(c)(1), is corrected to read as follows:

37482 Federal Register / Vol. 65, No. 116 / Thursday, June 15, 2000 / Rules and Regulations

§ 1.1032–3 Disposition of stock or stock

options in certain transactions not

qualifying under any other nonrecognition

provision.

* * * * *

(c) * * *

(1) The acquiring entity acquires stock

of the issuing corporation directly or

indirectly from the issuing corporation

in a transaction in which, but for this

section, the basis of the stock of the

issuing corporation in the hands of the

acquiring entity would be determined,

in whole or in part, with respect to the

issuing corporation’s basis in the issuing

corporation’s stock under section 362(a)

or 723 (provided that, in the case of an

indirect acquisition by the acquiring

entity, the transfers of issuing

corporation stock through intermediate

entities occur immediately after one

another);

* * * * *

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 00–15036 Filed 6–14–00; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4022 and 4044

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets

in Single-Employer Plans; Interest

Assumptions for Valuing and Paying

Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulations on Benefits

Payable in Terminated Single-Employer

Plans and Allocation of Assets in

Single-Employer Plans prescribe interest

assumptions for valuing and paying

benefits under terminating singleemployer plans. This final rule amends

the regulations to adopt interest

assumptions for plans with valuation

dates in July 2000. Interest assumptions

are also published on the PBGC’s web

site (http://www.pbgc.gov).

EFFECTIVE DATE: July 1, 2000.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The

PBGC’s regulations prescribe actuarial

assumptions—including interest

assumptions—for valuing and paying

plan benefits of terminating singleemployer plans covered by title IV of

the Employee Retirement Income

Security Act of 1974. The interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Three sets of interest assumptions are

prescribed: (1) A set for the valuation of

benefits for allocation purposes under

section 4044 (found in Appendix B to

Part 4044), (2) a set for the PBGC to use

to determine whether a benefit is

payable as a lump sum and to determine

lump-sum amounts to be paid by the

PBGC (found in Appendix B to Part

4022), and (3) a set for private-sector

pension practitioners to refer to if they

wish to use lump-sum interest rates

determined using the PBGC’s historical

methodology (found in Appendix C to

Part 4022). (See the PBGC’s two final

rules published March 17, 2000, in the

Federal Register (at 65 FR 14752 and

14753). Effective May 1, 2000, these

rules changed how the interest

assumptions are used and where they

are set forth in the PBGC’s regulations.)

Accordingly, this amendment (1) adds

to Appendix B to Part 4044 the interest

assumptions for valuing benefits for

allocation purposes in plans with

valuation dates during July 2000, (2)

adds to Appendix B to Part 4022 the

interest assumptions for the PBGC to

use for its own lump-sum payments in

plans with valuation dates during July

2000, and (3) adds to Appendix C to

Part 4022 the interest assumptions for

private-sector pension practitioners to

refer to if they wish to use lump-sum

interest rates determined using the

PBGC’s historical methodology for

valuation dates during July 2000.

For valuation of benefits for allocation

purposes, the interest assumptions that

the PBGC will use (set forth in

Appendix B to part 4044) will be 7.40

percent for the first 25 years following

the valuation date and 6.25 percent

thereafter. These interest assumptions

represent an increase (from those in

effect for June 2000) of 0.30 percent for

the first 25 years following the valuation

date and are otherwise unchanged.

The interest assumptions that the

PBGC will use for its own lump-sum

payments (set forth in Appendix B to

part 4022) will be 5.50 percent for the

period during which a benefit is in pay

status, 4.75 percent during the sevenyear period directly preceding the

benefit’s placement in pay status, and

4.00 percent during any other years

preceding the benefit’s placement in pay

status. These interest assumptions

represent an increase (from those in

effect for June 2000) of 0.25 percent for

the period during which a benefit is in

pay status and for the seven-year period

directly preceding the benefit’s

placement in pay status and are

otherwise unchanged.

For private-sector payments, the

interest assumptions (set forth in

Appendix C to part 4022) will be the

same as those used by the PBGC for

determining and paying lump sums (set

forth in Appendix B to part 4022).

The PBGC has determined that notice

and public comment on this amendment

are impracticable and contrary to the

public interest. This finding is based on

the need to determine and issue new

interest assumptions promptly so that

the assumptions can reflect, as

accurately as possible, current market

conditions.

Because of the need to provide

immediate guidance for the valuation

and payment of benefits in plans with

valuation dates during July 2000, the

PBGC finds that good cause exists for

making the assumptions set forth in this

amendment effective less than 30 days

after publication.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866.

Because no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility

Act of 1980 does not apply. See 5 U.S.C.

601(2).

List of Subjects

29 CFR Part 4022

Employee benefit plans, Pension

insurance, Pensions, Reporting and

recordkeeping requirements.

29 CFR Part 4044

Employee benefit plans, Pension

insurance, Pensions.

In consideration of the foregoing, 29

CFR parts 4022 and 4044 are amended

as follows:

PART 4022—BENEFITS PAYABLE IN

TERMINATED SINGLE-EMPLOYER

PLANS

1. The authority citation for part 4022

continues to read as follows:

Authority: 29 U.S.C. 1302, 1322, 1322b,

1341(c)(3)(D), and 1344.

2. In appendix B to part 4022, Rate Set

81, as set forth below, is added to the

table. (The introductory text of the table

is omitted.)