Federal Register / Vol. 78, No. 217 / Friday, November 8, 2013 / Rules and Regulations 67009 

of principal and interest on such 

security or obligation is expected; and 

(2) There is minimal risk that the 

timely payment of principal or interest 

would not occur because of adverse 

changes in economic and financial 

conditions during the projected life of 

the security or obligation. 

* * * * * 

■ 3. Amend § 1267.3 by revising 

paragraphs (a)(3) and (a)(4) to read as 

follows: 

§ 1267.3 Prohibited investments and 

prudential rules. 

(a) * * * 

(3) Debt instruments that are not 

investment quality, except: 

(i) Investments described in 

§ 1265.3(e) of this chapter; and 

(ii) Debt instruments that a Bank 

determined became less than 

investment quality because of 

developments or events that occurred 

after acquisition of the instrument by 

the Bank; 

(4) Whole mortgages or other whole 

loans, or interests in mortgages or loans, 

except: 

(i) Acquired member assets; 

(ii) Investments described in 

§ 1265.3(e) of this chapter; 

(iii) Marketable direct obligations of 

state, local, or Tribal government units 

or agencies, that are investment quality, 

where the purchase of such obligations 

by the Bank provides to the issuer the 

customized terms, necessary liquidity, 

or favorable pricing required to generate 

needed funding for housing or 

community lending; 

(iv) Mortgage-backed securities, or 

asset-backed securities collateralized by 

manufactured housing loans or home 

equity loans, that meet the definition of 

the term ‘‘securities’’ under 15 U.S.C. 

77b(a)(1) and are not otherwise 

prohibited under paragraphs (a)(5) 

through (a)(7) of this section; and 

(v) Loans held or acquired pursuant to 

section 12(b) of the Bank Act (12 U.S.C. 

1432(b)). 

* * * * * 

§ 1267.5 [Removed] 

■ 4. Remove § 1267.5. 

PART 1269—STANDBY LETTERS OF 

CREDIT 

■ 5. The authority citation for part 1269 

continues to read as follows: 

Authority: 12 U.S.C. 1429, 1430, 1430b, 

1431, 4511, 4513, 4526. 

§ 1269.1 [Amended] 

■ 6. Amend § 1269.1 by removing the 

definitions for ‘‘Investment grade’’ and 

‘‘NRSRO.’’ 

■ 7. Amend § 1269.2 by revising 

paragraph (c)(2) to read as follows: 

§ 1269.2 Standby letters of credit on behalf 

of members. 

* * * * * 

(c) * * * 

(2) A standby letter of credit issued or 

confirmed on behalf of a member for a 

purpose described in paragraphs (a)(1) 

or (a)(2) of this section may, in addition 

to the collateral described in paragraph 

(c)(1) of this section, be secured by 

obligations of state or local government 

units or agencies, where such 

obligations have a readily ascertainable 

value, can be reliably discounted to 

account for liquidation and other risks, 

and can be liquidated in due course. 

PART 1270—LIABILITIES 

■ 8. The authority citation for part 1270 

continues to read as follows: 

Authority: 12 U.S.C. 1431, 1432, 1435, 

4511, 4512, 4513, 4526. 

§ 1270.1 Definitions. 

■ 9. Amend § 1270.1 by removing the 

definition of ‘‘NRSRO.’’ 

■ 10. Amend § 1270.4 by revising 

paragraph (b) to read as follows: 

§ 1270.4 Issuance of consolidated 

obligations. 

* * * * * 

(b) Negative pledge requirement. Each 

Bank shall at all times maintain assets 

described in paragraphs (b)(1) through 

(b)(5) of this section free from any lien 

or pledge, in an amount at least equal 

to a pro rata share of the total amount 

of currently outstanding consolidated 

obligations and equal to such Bank’s 

participation in all such consolidated 

obligations outstanding, provided that 

any assets that are subject to a lien or 

pledge for the benefit of the holders of 

any issue of consolidated obligations 

shall be treated as if they were assets 

free from any lien or pledge for 

purposes of compliance with this 

paragraph (b). Eligible assets are: 

(1) Cash; 

(2) Obligations of or fully guaranteed 

by the United States; 

(3) Secured advances; 

(4) Mortgages as to which one or more 

Banks have any guaranty or insurance, 

or commitment therefor, by the United 

States or any agency thereof; and 

(5) Investments described in section 

16(a) of the Bank Act (12 U.S.C. 

1436(a)). 

■ 11. Revise § 1270.5 to read as follows: 

§ 1270.5 Bank operations. 

The Banks, individually and 

collectively, shall operate in such 

manner and take any actions necessary, 

including without limitation reducing 

leverage, to ensure that consolidated 

obligations maintain a high level of 

acceptance by financial markets and are 

generally perceived by investors as 

presenting a low level of credit risk. 

Dated: October 31, 2013. 

Edward J. DeMarco, 

Acting Director, Federal Housing Finance 

Agency. 

[FR Doc. 2013–26775 Filed 11–7–13; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0514; Directorate 

Identifier 2012–SW–068–AD; Amendment 

39–17647; AD 2013–22–15] 

RIN 2120–AA64 

Airworthiness Directives; Sikorsky 

Aircraft Corporation (Sikorsky) 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for 

Sikorsky Model S–76A, B, and C 

helicopters to require certain 

inspections of each spindle cuff 

assembly or blade fold cuff assembly for 

a crack. If there is a crack, this AD 

requires replacing the cracked part. If 

there is no crack, this AD requires 

applying white paint to the inspection 

area to enhance the existing inspection 

procedure. This AD was prompted by 

discovery of cracks in the spindle cuffs. 

The actions are intended to prevent 

failure of a spindle cuff assembly or 

blade fold cuff assembly, loss of a rotor 

blade, and subsequent loss of control of 

the helicopter. 

DATES: This AD is effective December 

13, 2013. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain document listed in this AD 

as of December 13, 2013. 

ADDRESSES: For service information 

identified in this AD, contact Sikorsky 

Aircraft Corporation, Attn: Manager, 

Commercial Technical Support, 

mailstop s581a, 6900 Main Street, 

Stratford, CT 06614; telephone (800) 

562–4409; email tsslibrary@

sikorsky.com; or at http://

www.sikorsky.com.http://

www.eurocopter.com/techpub. You may 


wreier-aviles on DSK5TPTVN1PROD with RULES
67010 Federal Register / Vol. 78, No. 217 / Friday, November 8, 2013 / Rules and Regulations 

review a copy of the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

2601 Meacham Blvd., Room 663, Fort 

Worth, Texas 76137. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov or in person at the 

Docket Operations Office between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, any 

incorporated-by-reference service 

information, the economic evaluation, 

any comments received, and other 

information. The street address for the 

Docket Operations Office (phone: 800– 

647–5527) is U.S. Department of 

Transportation, Docket Operations 

Office, M–30, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Nicholas Faust, Aviation Safety 

Engineer, Boston Aircraft Certification 

Office, Engine & Propeller Directorate, 

12 New England Executive Park, 

Burlington, Massachusetts 01803; 

telephone (781) 238–7763; email 

nicholas.faust@faa.gov. 

SUPPLEMENTARY INFORMATION:

Discussion 

On June 20, 2013, at 78 FR 37160, the 

Federal Register published our notice of 

proposed rulemaking (NPRM), which 

proposed to amend 14 CFR part 39 to 

include an AD that would apply to 

Sikorsky Model S–76A, B, and C 

helicopters. The NPRM proposed either 

a one-time nondestructive inspection 

(NDI) or a visual inspection of each 

spindle cuff assembly or blade fold cuff 

assembly for a crack and replacing any 

cracked part. If there was no crack in the 

part, the NPRM proposed applying 

white paint to a portion of each spindle 

cuff assembly or blade fold cuff 

assembly lower cuff plate to enhance 

the existing inspection procedure. The 

NPRM was prompted by the discovery 

of five cracked spindle cuffs found 

during aircraft overhaul. The proposed 

requirements were intended to prevent 

failure of a spindle cuff assembly or 

blade fold cuff assembly, loss of a rotor 

blade, and subsequent loss of control of 

the helicopter. 

Comments 

We gave the public the opportunity to 

participate in developing this AD, but 

we did not receive any comments on the 

NPRM (78 FR 37160, June 20, 2013). 

FAA’s Determination 

We have reviewed the relevant 

information and determined that an 

unsafe condition exists and is likely to 

exist or develop on other products of 

these same type designs and that air 

safety and the public interest require 

adopting the AD requirements as 

proposed. 

Related Service Information 

Sikorsky issued S–76 Alert Service 

Bulletin ASB 76–65–67A, Revision A, 

dated July 18, 2012 (ASB), which 

specifies performing an NDI of the 

upper and lower cuff plate on each 

spindle cuff assembly or blade fold cuff 

assembly for a crack, either by eddy 

current, fluorescent penetrant, or 

ultrasonic inspection. If a crack 

indication is detected and not verified, 

the ASB specifies performing a different 

NDI to verify a crack. If there is a crack, 

the ASB specifies removing the spindle 

cuff assembly or blade fold cuff 

assembly from service. If a crack cannot 

be verified, the ASB specifies contacting 

Sikorsky for further instruction. Finally, 

if no crack is found, the ASB specifies 

applying white paint to a portion of the 

spindle cuff assembly or blade fold cuff 

assembly lower cuff plate to enhance 

the existing inspection procedure. 

Differences Between This AD and the 

Service Information 

The ASB specifies contacting the 

manufacturer if suspect cracks are not 

confirmed in the spindle cuff assembly 

or blade fold cuff assembly; this AD 

does not require contacting the 

manufacturer. This AD applies to 

spindle cuff assembly, part number (P/ 

N) 76102–08001–043, which was 

inadvertently omitted in the ASB. The 

manufacturer has since revised the ASB 

to apply to this spindle cuff assembly. 

The ASB applies to spare parts; this AD 

does not. 

Costs of Compliance 

We estimate that this AD will affect 

181 helicopters of U.S. Registry. 

We estimate that operators may incur 

the following costs in order to comply 

with this AD, based on an average labor 

cost of $85 per work hour: It will take 

2.5 work hours to do an NDI and 2 work 

hours to apply the white paint. It will 

cost $15 in materials for the paint for 

each helicopter. Based on these 

estimates, it will cost a total of $398 per 

helicopter and $72,038 for the fleet. 

If it is necessary to replace a spindle 

cuff assembly or a blade cuff assembly, 

it will take 2.5 work hours and an 

estimated parts cost of $54,000, for a 

total cost of $54,212 for each helicopter. 

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 

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 to the extent that it justifies 

making a regulatory distinction; 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. 

We prepared an economic evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

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: 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 78, No. 217 / Friday, November 8, 2013 / Rules and Regulations 67011 

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 (AD): 

2013–22–15 Sikorsky Aircraft Corporation: 

Amendment 39–17647; FAA–2013–0514; 

Directorate Identifier 2012–SW–068–AD. 

(a) Applicability 

This AD applies to Model S–76A, S–76B, 

and S–76C helicopters with a serial number 

up to and including 760822 and with a 

spindle cuff assembly, part number (P/N) 

76102–08001–043, –045 or –046, or a blade 

fold cuff assembly, P/N 76150–09601–041, 

installed, certificated in any category. 

(b) Unsafe Condition 

This AD defines the unsafe condition as a 

crack in a spindle cuff assembly or blade fold 

cuff assembly. This condition could result in 

failure of a spindle cuff assembly or blade 

fold cuff assembly, loss of a rotor blade, and 

subsequent loss of control of the helicopter. 

(c) Effective Date 

This AD becomes effective December 13, 

2013. 

(d) Compliance 

You are responsible for performing each 

action required by this AD within the 

specified compliance time unless it has 

already been accomplished prior to that time. 

(e) Required Actions 

Within 150 hours time-in-service (TIS): 

(1) For each spindle cuff assembly or blade 

cuff assembly with 1,900 or more hours TIS, 

conduct a nondestructive inspection (NDI) by 

following the Accomplishment Instructions, 

paragraph 3.B., of Sikorsky S–76 Alert 

Service Bulletin ASB 76–65–67A, Revision 

A, dated July 18, 2012 (ASB), except this AD 

does not require you to contact Sikorsky 

Aircraft Corporation. This inspection must be 

done by a level 2 or higher technician with 

National Aerospace Standard 410 or 

equivalent certification. 

(2) For each spindle cuff assembly or blade 

cuff assembly with less than 1,900 hours TIS, 

visually inspect the area indicated in Figure 

4 of the ASB as ‘‘white paint application 

area’’ for a crack by using a 5x or higher 

power magnifying glass. 

(3) If there is a crack, before further flight, 

replace the cracked part. 

(4) If there is no crack, apply white paint 

by following the Accomplishment 

Instructions, paragraph 3.D., of the ASB. 

(5) Do not install an affected spindle cuff 

assembly or blade fold cuff assembly on any 

helicopter unless it has been inspected in 

accordance with paragraphs (e)(1) through 

(e)(4) of this AD. 

(f) Special Flight Permit 

Special flight permits will not be issued. 

(g) Alternative Methods of Compliance 

(AMOC) 

(1) The Manager, Boston Aircraft 

Certification Office, FAA, may approve 

AMOCs for this AD. Send your proposal to: 

Nicholas Faust, Aviation Safety Engineer, 

Engine & Propeller Directorate, 12 New 

England Executive Park, Burlington, 

Massachusetts 01803; telephone (781) 238– 

7763; email nicholas.faust@faa.gov. 

(2) For operations conducted under a 14 

CFR part 119 operating certificate or under 

14 CFR part 91, subpart K, we suggest that 

you notify your principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office or 

certificate holding district office before 

operating any aircraft complying with this 

AD through an AMOC. 

(h) Subject 

Joint Aircraft Service Component (JASC) 

Code: 6220 Main Rotor Head. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Sikorsky S–76 Alert Service Bulletin 

ASB 76–65–67A, Revision A, dated July 18, 

2012. 

(ii) Reserved. 

(3) For service information identified in 

this AD, contact Sikorsky Aircraft 

Corporation, Attn: Manager, Commercial 

Technical Support, mailstop s581a, 6900 

Main Street, Stratford, CT 06614; telephone 

(800) 562–4409; email tsslibrary@

sikorsky.com; or at http://www.sikorsky.com. 

(4) You may view this service information 

at FAA, Office of the Regional Counsel, 

Southwest Region, 2601 Meacham Blvd., 

Room 663, Fort Worth, Texas 76137. For 

information on the availability of this 

material at the FAA, call (817) 222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

(202) 741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Fort Worth, Texas, on October 24, 

2013. 

Kim Smith, 

Directorate Manager, Rotorcraft Directorate, 

Aircraft Certification Service. 

[FR Doc. 2013–26043 Filed 11–7–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0928; Directorate 

Identifier 2013–CE–036–AD; Amendment 

39–17645; AD 2013–22–13] 

RIN 2120–AA64 

Airworthiness Directives; PILATUS 

Aircraft Ltd. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

PILATUS Aircraft Ltd. Model PC–7 

airplanes. This AD results from 

mandatory continuing airworthiness 

information (MCAI) issued by the 

aviation authority of another country to 

identify and correct an unsafe condition 

on an aviation product. The MCAI 

describes the unsafe condition as 

chafing on the wiring harness attached 

to the engine mounting frame on the 

right-hand side of the engine 

compartment, which could cause a short 

circuit and could result in a fire in the 

engine compartment. We are issuing 

this AD to require actions to address the 

unsafe condition on these products. 

DATES: This AD is effective November 

29, 2013. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of November 29, 2013. 

We must receive comments on this 

AD by December 23, 2013. 

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: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

For service information identified in 

this AD, contact PILATUS AIRCRAFT 

LTD., Customer Technical Support 

(MCC), P.O. Box 992, CH–6371 STANS, 

Switzerland; telephone: +41 (0)41 619 

67 74; fax: +41 (0)41 619 67 73; Internet: 


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