49634 Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Proposed Rules

allocated equities otherwise includible

pursuant to § 615.5301(b).

(2) Each association shall compute its

core surplus ratio by deducting an

amount equal to the net investment in

the bank from its core surplus.

(3) The risk-adjusted asset base is the

total dollar amount of the institution’s

assets adjusted in accordance with

§§ 615.5301(b)(3) and 615.5330(b)(2),

and weighted on the basis of risk in

accordance with § 615.5210(f).

(c) An institution shall compute its

risk-adjusted asset base, total surplus,

and core surplus ratios using average

daily balances for the most recent 3

months.

14. Section 615.5335 is revised to read

as follows:

§ 615.5335 Bank net collateral ratio.

(a) Each bank shall achieve and at all

times maintain a net collateral ratio of

at least 103 percent.

(b) At a minimum, a bank shall

compute its net collateral ratio as of the

end of each month. A bank shall have

the capability to compute its net

collateral ratio a day after the close of

a business day using the daily balances

outstanding for assets and liabilities for

that date.

Subpart L—Establishment of Minimum

Capital Ratios for an Individual

Institution

15. Section 615.5350 is amended by

adding a new paragraph (b)(7) to read as

follows:

§ 615.5350 General—Applicability.

* * * * *

(b) * * *

(7) An institution with significant

exposures to declines in net income or

in the market value of its capital due to

a change in interest rates and/or the

exercising of embedded or explicit

options.

Subpart M—Issuance of a Capital

Directive

16. Section 615.5355 is amended by

revising paragraph (a)(4) to read as

follows:

§ 615.5355 Purpose and scope.

(a) * * *

(4) Take other action, such as

reduction of assets or the rate of growth

of assets, restrictions on the payment of

dividends or patronage, or restrictions

on the retirement of stock, to achieve

the applicable capital ratios, or reduce

levels of interest rate and other risk

exposures, or strengthen management

expertise, or improve management

information and measurement systems;

or

* * * * *

PART 620—DISCLOSURE TO

SHAREHOLDERS

17. The authority citation for part 620

continues to read as follows:

Authority: Secs. 5.17, 5.19, 8.11 of the

Farm Credit Act (12 U.S.C. 2252, 2254,

2279aa–11); sec. 424 of Pub. L. 100–233, 101

Stat. 1568, 1656.

Subpart A—General

§ 620.1 [Amended]

18. Section 620.1 is amended by

removing the reference ‘‘§ 615.5201(j)’’

and adding in its place, the reference

‘‘§ 615.5201(l)’’ in paragraph (j).

Subpart B—Annual Report to

Shareholders

§ 620.5 [Amended]

19. Section 620.5 is amended by

removing the word ‘‘permanent’’ from

paragraphs (d)(2), (g)(4)(v), and

(g)(4)(vi); by revising paragraph (f)(3);

and by adding paragraph (f)(4) to read

as follows:

§ 620.5 Contents of the annual report to

shareholders.

* * * * * *

(f) * * *

(3) For all banks (on a bank-only

basis):

(i) Permanent capital ratio.

(ii) Total surplus ratio.

(iii) Core surplus ratio.

(iv) Net collateral ratio.

(4) For all associations:

(i) Permanent capital ratio.

(ii) Total surplus ratio.

(iii) Core surplus ratio.

* * * * *

PART 627—TITLE V CONSERVATORS

AND RECEIVERS

20. The authority citation for part 627

continues to read as follows:

Authority: Secs. 4.2, 5.9, 5.10, 5.17, 5.51,

5.58 of the Farm Credit Act (12 U.S.C. 2183,

2243, 2244, 2252, 2277a, 2277a–7).

Subpart A—General

21. Section 627.2710 is amended by

revising paragraphs (b)(1) and (b)(3) to

read as follows:

§ 627.2710 Grounds for appointment of

conservators and receivers.

* * * * *

(b) * * *

(1) The institution is insolvent, in that

the assets of the institution are less that

its obligations to creditors and others,

including its members. For purposes of

determining insolvency, ‘‘obligations to

members’’ shall not include stock or

allocated equities held by current or

former borrowers.

* * * * *

(3) The institution is in an unsafe and

unsound condition to transact business,

including having insufficient capital or

otherwise. For purposes of this

regulation, ‘‘unsafe or unsound

condition’’ shall include, but shall not

be limited to, the following conditions:

(i) For banks, a net collateral ratio of

102 percent.

(ii) For associations, collateral

insufficient to meet the requirements of

the association’s general financing

agreement with its affiliated bank.

(iii) For all institutions, permanent

capital of less than one-half the

minimum required level for the

institution.

(iv) For all institutions, a relevant

total surplus ratio of less than 2 percent.

(v) For associations, stock

impairment.

* * * * *

Dated: September 17, 1997.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 97–25107 Filed 9–22–97; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–126–AD]

RIN 2120–AA64

Airworthiness Directives; Saab Model

SAAB 2000 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

certain Saab Model SAAB 2000 series

airplanes. This proposal would require

inspection of the two-way check valve

on the engine fire extinguishing system

for discrepancies, and corrective action,

if necessary. This proposal is prompted

by issuance of mandatory continued

airworthiness information by a foreign

civil airworthiness authority. The

actions specified by the proposed AD

are intended to prevent discrepancies of

the check valve, which could result in

improper functioning of the engine fire

extinguishing system.
Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Proposed Rules 49635

DATES: Comments must be received by

October 21, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 97–NM–

126–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Saab Aircraft AB, S–581.88, Linko ̈ping,

Sweden. This information may be

examined at the FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

Ruth Harder, Aerospace Engineer,

Standardization Branch, ANM–113,

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington 98055–4056; telephone

(425) 227–1721; fax (425) 227–1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the rules docket number and be

submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the rules docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the rules

docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 97–NM–126–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Transport Airplane Directorate,

ANM–103, Attention: Rules Docket No.

97–NM–126–AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

The Luftfartsverket (LFV), which is

the airworthiness authority for Sweden,

advises that, during production testing,

the ball in the two-way check valve on

the engine fire extinguishing system of

certain Saab Model SAAB 2000 series

airplanes was stuck due to excessive

pressure from the test equipment.

Discrepancies of the check valve of the

fire extinguishing system, if not

corrected, could result in improper

functioning of the engine fire

extinguishing system.

Explanation of Relevant Service

Information

Saab has issued Service Bulletin

2000–26–010, dated July 5, 1996, which

describes procedures for inspection of

the two-way check valve on the engine

fire extinguishing system for

discrepancies, and corrective action, if

necessary. The LFV classified this

service bulletin as mandatory and

issued Swedish Airworthiness Directive

SAD No. 1–099, dated July 8, 1996, in

order to assure the continued

airworthiness of these airplanes in

Sweden.

FAA’s Conclusions

This airplane model is manufactured

in Sweden and is type certificated for

operation in the United States under the

provisions of section 21.29 of the

Federal Aviation Regulations (14 CFR

21.29) and the applicable bilateral

airworthiness agreement. Pursuant to

this bilateral airworthiness agreement,

the LFV has kept the FAA informed of

the situation described above. The FAA

has examined the findings of the LFV,

reviewed all available information, and

determined that AD action is necessary

for products of this type design that are

certificated for operation in the United

States.

Explanation of Requirements of

Proposed Rule

Since an unsafe condition has been

identified that is likely to exist or

develop on other airplanes of the same

type design registered in the United

States, the proposed AD would require

accomplishment of the actions specified

in the service bulletin described

previously.

Cost Impact

The FAA estimates that 3 airplanes of

U.S. registry would be affected by this

proposed AD, that it would take

approximately 4 work hours per

airplane to accomplish the proposed

actions, and that the average labor rate

is $60 per work hour. Based on these

figures, the cost impact of the proposed

AD on U.S. operators is estimated to be

$720, or $240 per airplane.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the proposed requirements of this AD

action, and that no operator would

accomplish those actions in the future if

this AD were not adopted.

Regulatory Impact

The regulations proposed herein

would not have substantial direct effects

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. Therefore,

in accordance with Executive Order

12612, it is determined that this

proposal would not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

For the reasons discussed above, I

certify that this proposed regulation (1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, 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 copy of the draft

regulatory evaluation prepared for this

action is contained in the rules docket.

A copy of it may be obtained by

contacting 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.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend 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.
49636 Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Proposed Rules

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

Saab Aircraft AB: Docket 97–NM–126–AD.

Applicability: Model SAAB 2000 series

airplanes having serial numbers –002

through –043 inclusive, 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 discrepancies of the check

valve, which could result in improper

functioning of the engine fire extinguishing

system, accomplish the following:

(a) Within 2 months after the effective date

of this AD, perform an inspection of the twoway check valve on the engine fire

extinguishing system for discrepancies, in

accordance with Saab Service Bulletin 2000–

26–010, dated July 5, 1996. If any

discrepancy is found, prior to further flight,

install a new two-way check valve in

accordance with the service bulletin.

(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,

standardization Branch, ANM–113, 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, Standardization

Branch, ANM–113.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Standardization Branch,

ANM–113.

(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.

Issued in Renton, Washington, on

September 17, 1997.

James V. Devany,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 97–25168 Filed 9–22–97; 8:45 am]

BILLING CODE 4910–13–U

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

RIN 0960–AE42

Federal Old-Age, Survivors, and

Disability Insurance; Determining

Disability and Blindness; Revision to

Medical-Vocational Guidelines

AGENCY: Social Security Administration.

ACTION: Proposed rules.

SUMMARY: We propose to clarify

§ 201.00(h) of the medical-vocational

guidelines in appendix 2 of subpart P of

regulations part 404. This section

provides guidance for evaluating

disability in individuals under age 50

who have a severe impairment(s) that

does not meet or equal in severity the

criteria of any listed impairment in

appendix 1 of subpart P, but who have

a residual functional capacity for no

more than the full range of sedentary

work and cannot do any past relevant

work. The proposed revisions are

intended only to clarify the current

rules; they are not intended to change

any policies.

DATES: To be sure your comments are

considered, we must receive them no

later than November 24, 1997.

ADDRESSES: Comments should be

submitted in writing to the

Commissioner of Social Security, P.O.

Box 1585, Baltimore, MD 21235, sent by

telefax to (410) 966–2830, sent by e-mail

to ‘‘regulations@ssa.gov,’’ or delivered

to the Division of Regulations and

Rulings, Social Security Administration,

3–B–1 Operations Building, 6401

Security Boulevard, Baltimore, MD

21235, between 8:00 a.m. and 4:30 p.m.

on regular business days. Comments

may be inspected during these same

hours by making arrangements with the

contact person shown below.

FOR FURTHER INFORMATION CONTACT:

Robert Augustine, Legal Assistant,

Division of Regulations and Rulings,

Social Security Administration, 6401

Security Boulevard, Baltimore, MD

21235, (410) 966–5121 for information

about these rules. For information on

eligibility or claiming benefits, call our

national toll-free number, 1–800–772–

1213.

SUPPLEMENTARY INFORMATION: The Social

Security Act (the Act) provides in title

II for the payment of disability benefits

to workers insured under the Act. Title

II also provides, under certain

circumstances, child’s insurance

benefits for persons who become

disabled before age 22 and widow’s and

widower’s insurance benefits based on

disability for widows, widowers, and

surviving divorced spouses of insured

individuals. In addition, the Act

provides in title XVI for supplemental

security income (SSI) payments to

persons who are disabled and have

limited income and resources.

For adults under both the title II and

title XVI programs and for persons

claiming child’s insurance benefits

based on disability under title II,

‘‘disability’’ is defined in the Act as the

‘‘inability to engage in any substantial

gainful activity by reason of any

medically determinable physical or

mental impairment which can be

expected to result in death or which has

lasted or can be expected to last for a

continuous period of not less than 12

months.’’ Sections 223(d) and 1614(a) of

the Act also state that the individual

‘‘shall be determined to be under a

disability only if his physical or mental

impairment or impairments are of such

severity that he is not only unable to do

his previous work but cannot,

considering his age, education, and

work experience, engage in any other

kind of substantial gainful work which

exists in the national economy,

regardless of whether such work exists

in the immediate area in which he lives,

or whether a specific job vacancy exists

for him, or whether he would be hired

if he applied for work.’’

To implement the process for

determining whether an individual is

disabled based upon this statutory

definition, our longstanding regulations

at §§ 404.1520 and 416.920 provide for

a five-step sequential evaluation process

as follows:

1. Is the claimant engaging in

substantial gainful activity? If the

claimant is working and the work is

substantial gainful activity, we find that

he or she is not disabled. Otherwise, we

proceed to step 2 of the sequence.

2. Does the claimant have an

impairment or combination of

impairments which is severe? If the

claimant does not have an impairment

or combination of impairments which is

severe, we find that he or she is not

disabled. If the claimant has an

impairment or combination of

impairments which is severe, we

proceed to step 3 of the sequence.