This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

4895

Vol. 62, No. 22

Monday, February 3, 1997

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 304

RIN 3064–AB89

Forms, Instructions and Reports

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Final rule.

SUMMARY: As part of the FDIC’s

systematic review of its regulations and

written policies under section 303(a) of

the Riegle Community Development and

Regulatory Improvement Act of 1994

(CDRI), the FDIC is revising its

regulations relating to forms,

instructions and reports. The regulation

was created in 1948 to satisfy the

requirement found in the

Administrative Procedure Act (APA) to

‘‘publish in the Federal Register * * *

rules of procedure, descriptions of forms

available or the places at which forms

may be obtained, and instructions as to

the scope and contents of all papers,

reports, or examinations.’’ A portion of

the regulation was added in 1992 to

implement the mandate found at section

122 of the Federal Deposit Insurance

Corporation Improvement Act of 1991

(FDICIA), which requires the FDIC to

adopt a regulation which requires the

collection of information on small farm

and small business lending from

insured depository institutions. In

addition, section 37 of the Federal

Deposit Insurance Act (FDI Act), as

added by FDICIA, requires that the FDIC

adopt regulations mandating the

inclusion of ‘‘off balance sheet’’ items in

all assets and liabilities (including

contingent assets and liabilities)

reflected on any balance sheet, financial

statement, report of condition, or other

report that insured depository

institutions file with a federal banking

agency. The additional requirement to

include contingent assets and liabilities

is being incorporated into a section of

the regulation. In an effort to streamline

its regulations and provide the public

with information about its forms,

instructions and reports (including

specific dates by which such reports

must be filed), the FDIC is revising this

regulation, by removing unneeded

language while retaining the listing of

forms and other required information to

satisfy the public information

requirements found in FOIA, section

122 of FDICIA, and section 37 of the FDI

Act.

EFFECTIVE DATE: February 3, 1997.

FOR FURTHER INFORMATION CONTACT:

Steven F. Hanft, Assistant Executive

Secretary (Regulatory Analysis), (202)

898–3907, Office of the Executive

Secretary; Karen Main, Senior Attorney,

(202) 898–8838, Legal Division; FDIC,

550 17th Street, NW, Washington, D.C.

20429.

SUPPLEMENTARY INFORMATION:

I. Discussion

The FDIC is conducting a systematic

review of its regulations and written

policies. Section 303(a) of CDRI, 12

U.S.C. 4803(a), requires each federal

banking agency to streamline and

modify its regulations and written

policies in order to improve efficiency,

reduce unnecessary costs, and eliminate

unwanted constraints on credit

availability. Section 303(a) also requires

each federal banking regulatory agency

to remove inconsistent, outmoded, or

duplicative requirements from its

regulations and written policies.

As part of this review, the FDIC has

determined that certain provisions of

part 304 contain outmoded and

unnecessary language that needs to be

revised or removed. By so doing, the

FDIC’s regulation concerning forms,

instructions and reports will be updated

and streamlined to provide accurate

information.

The FDIC published the current

version of the regulation on October 15,

1986 in the Federal Register (51 FR

36684) in accordance with the APA

(U.S.C. 551 et seq.). Section 304.4 was

later modified to implement Section 122

of FDICIA (12 U.S.C. 1817 note) on June

5, 1992 (57 FR 23932). Sections 304.4

and 304.5 are being revised to

incorporate the reporting requirement

set forth in Section 37(a)(3)(c) of the FDI

Act. 12 U.S.C. 1831n(a)(3)(C). This

statutory provision requires that the

Corporation develop a regulation which

requires that ‘‘all assets and liabilities,

including contingent assets and

liabilities’’ be reported in an insured

depository institution’s Call Reports.

This reporting requirement, which was

enacted as Section 121 of FDICIA in

1991, was initially implemented by

revising the Call Reports in 1992. The

proposed change was published for

comment in connection with the FDIC’s

Notice of Information Collection

submitted to the Office of Management

and Budget. See 57 FR 54235 (Nov. 17,

1992). Section 304.4 is being further

revised to add information which is

currently found in the instructions to

the Call Reports regarding the timely

filing of the Call Reports. This

requirement was initially issued for

notice and comment under the auspices

of the Federal Financial Institutions

Examination Council, and adopted in

final in 1988. See, 53 FR 11558 (Apr. 7,

1988) and 53 FR 32104 (Aug. 23, 1988).

Part 304 provides the public with the

information about the forms and reports

that insured financial institutions are to

submit to the FDIC. With the exception

of the provisions relating to lending to

small farms and small business and the

reporting of ‘‘off balance sheet’’ items,

there is no statutory requirement to

provide all of the information contained

in Part 304 by regulation. Thus, through

the proposed changes, the statutory

requirements will be retained, FOIA’s

publication requirements at 5 U.S.C.

552(a)(1)(C) will continue to be fulfilled,

and the regulatory framework will be

streamlined.

II. Public Comment Waiver and

Effective Date

This regulation is being issued as a

final rule. The APA requires general

notice of proposed rulemaking in the

Federal Register; however, this

regulation is exempt from the Federal

Register publication requirement

pursuant to 5 U.S.C. 553(b). This section

of the APA exempts ‘‘rules of agency

organization, procedure, or practice’’. 5

U.S.C. 553(b)(A). Notwithstanding the

fact that part 304 is a procedural rule,

some of the proposed language that will

be added to various sections appears to

impose new reporting requirements or

time constraints on affected financial

institutions. The Call Report filing

deadlines, as well as the requirement to

report the contingent assets and
4896 Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Rules and Regulations

liabilities on the Call Report have

previously been issued for notice and

comment before being adopted in final

form. These requirements have been in

place and insured depository

institutions have been complying with

them for a number of years. These preexisting supervisory requirements are

now being codified in part 304.

Moreover, several other revisions are

minor and technical in nature.

Therefore, the Board finds that there is

good cause for not providing a notice

and comment period before adopting

part 304 in final form. Under the

circumstances described above, notice

and comment would be unnecessary

and contrary to the public interest. 5

U.S.C. 553(b)(B).

In addition, the APA provides that a

substantive rule shall be published in

the Federal Register not less than 30

days before its effective date. However,

this APA requirement does not apply to

Part 304 since it is a rule of agency

procedure. 5 U.S.C. 553(d).

Alternatively, the amendments are of

such a nature that the public does not

need a delayed period of time in which

to conform or adjust to the amendments.

Thus, the Board finds that there exists

good cause for not delaying the effective

date of these amendments. 5 U.S.C.

553(d)(3).

III. Matters of Regulatory Procedure

Regulatory Flexibility Act

Part 304 is a rule relating to agency

organization, procedure, or practice, and

is therefore not subject to the provisions

of the Regulatory Flexibility Act.

Further, because the revisions to part

304 will be published in final form

without a notice of proposed

rulemaking, no regulatory flexibility

analysis is required.

Paperwork Reduction Act

No further collection of information is

required as a result of the regulatory

amendments. Therefore, no material

will be submitted to the OMB for review

pursuant to the Paperwork Reduction

Act. 44 U.S. 3501 et seq.

Contract With America/SBREFA

Analysis

The Small Business Regulatory

Enforcement Fairness Act of 1996

(SBREFA), Title II of the Contract with

America Advancement Act of 1996

(Pub. L. 104–121), provides generally for

Congressional review of final agency

rules. When required by SBREFA, the

FDIC reports rules to Congress. The

reporting requirement is triggered in

instances where the FDIC issues a final

rule as defined by the APA at 5 U.S.C.

551. The FDIC will file the appropriate

report pursuant to the statute.

The Office of Management and Budget

has determined that this final revision

to part 304 does not constitute a

‘‘major’’ rule as defined by the statute.

List of Subjects in 12 CFR Part 304

Bank deposit insurance, Bank,

banking, Freedom of information,

Reporting and recordkeeping

requirements.

For the reasons set forth above, 12

CFR part 304 is amended as set forth

below:

PART 304—FORMS, INSTRUCTIONS

AND REPORTS

1. The authority citation for part 304

continues to read as follows:

Authority: 5 U.S.C. 552; 12 U.S.C. 1817,

1818, 1819, 1820; Public Law 102–242, 105

Stat. 2251 (12 U.S.C. 1817 note).

§ 304.1 [Amended]

2. Section 304.1 is amended by

removing the word ‘‘all’’ from the last

sentence.

3. Section 304.2 is revised to read as

follows:

§ 304.2 Forms and instructions—general.

Necessary forms with their related

instructions to be used in connection

with applications, reports, and other

submittals can be obtained from FDIC

regional offices—Division of

Supervision. The FDIC regional offices

are listed in the directory of the FDIC

Law, Regulations and Related Acts

looseleaf service, published by the

FDIC. A listing of FDIC forms can also

be obtained by writing to the FDIC,

Division of Supervision, 550 17th Street,

NW, Washington, D.C. 20429. The forms

are also available in the FDIC Public

Information Center at 801 17th Street,

NW, Washington, D.C. 20429.

4. Section 304.3 is revised to read as

follows:

§ 304.3 Certified statements.

The certified statements required to

be filed by insured institutions under

the provisions of section 7 of the

Federal Deposit Insurance Act (12

U.S.C. 1817), as amended, shall be filed

in accordance with part 327 of this

chapter. The applicable forms are Form

6420/07A—Form 6420/07H which show

the computation of the semiannual

assessment due to the Corporation from

an insured depository institution. As

provided for in part 327 of this chapter,

the forms will be furnished to insured

depository institutions by the

Corporation twice each calendar year

and the completed statement must be

returned to the Corporation by each

institution.

5. Section 304.4 is revised to read as

follows:

§ 304.4 Reports of condition and income.

(a) Description. Forms FFIEC 031,

032, 033, and 034, Consolidated Reports

of Condition and Income, are quarterly

reports for insured state nonmember

banks (except District banks) of different

asset sizes or with foreign offices, as

appropriate, that are required to be

prepared as of the close of business on

the following report dates: March 31,

June 30, September 30, and December

31. These reports are also known as the

‘‘Call Report.’’ The Call Report includes

a balance sheet, an income statement,

and a statement of changes in equity

capital of the reporting bank.

Supporting schedules request additional

detail with respect to charge-offs and

recoveries, income from international

operations, specific asset and liability

accounts, off-balance sheet items, past

due and nonaccrual assets, information

for assessment purposes, and regulatory

capital. All assets and liabilities,

including contingent assets and

liabilities, must be reported in, or

otherwise taken into account in the

preparation of, the Call Report.

Reporting banks must also submit

annually such information on small

business and small farm lending as the

FDIC may need to assess the availability

of credit to these sectors of the

economy. Call Reports must be prepared

in accordance with the appropriate

instructions contained in the Federal

Financial Institutions Examination

Council booklet entitled ‘‘Instructions—

Consolidated Reports of Condition and

Income’’. The report forms, the

instructions for completing the reports,

and the accompanying materials will be

furnished to all insured state

nonmember banks (except District

banks) by, or may be obtained upon

request from, the Call Reports Analysis

Unit, Division of Supervision, FDIC,

Washington, D.C. 20429.

(b) Submission of reports. All insured

state nonmember banks (except District

banks) shall file their completed reports

by the method and with the appropriate

collection agent for the FDIC as

designated in the materials

accompanying the report forms each

quarter. Completed reports must be

received no more than 30 calendar days

after the report date, subject to the

timely filing provisions set forth in the

‘‘Instructions—Consolidated Reports of

Condition and Income’’ and in the

materials accompanying the report

forms each quarter. Any bank which has

or has had more than one foreign office,
Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Rules and Regulations 4897

other than a shell branch or an

International Banking Facility, may take

an additional 15 calendar days to

submit its Call Reports. A bank using

any of these additional 15 calendar days

to complete its reports is required to

submit its reports electronically.

6. Section 304.5 is revised to read as

follows:

§ 304.5 Other forms.

The forms described in this section

have been prepared for the use of banks.

(a) Form 8020/05: Summary of

Deposits. Form 8020/05 is a report on

the amount of deposits for each

authorized office of an insured bank

with branches; unit banks do not report.

Reports as of June 30 of each year must

be submitted no later than the

immediately succeeding July 31. The

report is filed with the appropriate

collection agent for the FDIC as

designated in the materials

accompanying the survey forms each

year. The report forms and the

instructions for completing the reports

will be furnished to all such banks by,

or may be obtained upon request from

the Trust and Survey Group, Division of

Supervision, FDIC, 550 17th Street, NW,

Washington, D.C. 20429.

(b) Form 6120/06: Notification of

Performance of Bank Services. Form

6120/06 may be used to satisfy the

notice requirement for bank service

arrangements that is contained in

section 7 of the Bank Service

Corporation Act (12 U.S.C. 1867), as

amended. In lieu of the form, a bank

may satisfy the requirement by

submitting a letter stating: The name of

the servicer; the address at which the

service is performed; the service being

performed; and the date the service

commenced. Either the form or the letter

containing the notice information must

be submitted to the regional director—

Division of Supervision of the region in

which the bank’s main office is located

within 30 days of the making of the

bank service contract or the

performance of the bank service,

whichever occurs first.

(c) Form FFIEC 001: Annual Report of

Trust Assets. This report must be filed

by all insured state nonmember

commercial and savings banks operating

trust departments or banks granted

consent by the Corporation to exercise

trust powers, and their trust

subsidiaries. The report must be filed no

later than February 15th of each year.

When circumstances necessitate,

additional information may be required

about certain operations of the trust

department. The report must be

prepared and submitted in accordance

with the appropriate instructions. The

report is filed with the appropriate

collection agent for the FDIC as

designated in the report form and

instructions. The report forms and

instructions for completing the report

will be furnished automatically to all

such banks by, or may be obtained upon

request from the Trust and Survey

Group, Division of Supervision, FDIC,

550 17th Street, NW, Washington, D.C.

20429.

(d) Form FFIEC 002: Report of Assets

and Liabilities of U.S. Branches and

Agencies of Foreign Banks. Form FFIEC

002 is a report in the form of a statement

of the assets and liabilities of U.S.

branches and agencies of foreign banks

together with supporting schedules that

request additional detail with respect to

selected assets and liabilities, offbalance sheet items, and, in the case of

insured branches, information for

assessment purposes. All assets and

liabilities, including contingent assets

and liabilities, must be reported in, or

otherwise taken into account in the

preparation of, this report. Insured

branches must also submit annually

such information on small business and

small farm lending as the FDIC may

need to assess the availability of credit

to these sectors of the economy. The

report must be prepared in accordance

with the instructions contained in the

instruction booklet for the report, copies

of which are furnished to all U.S.

branches and agencies of foreign banks

by the Federal Reserve System. The

Board of Governors of the Federal

Reserve System collects and processes

the report on behalf of FDIC-supervised

branches. The report is submitted

quarterly to the appropriate Federal

Reserve district bank.

(e) Form FFIEC 004: Report on

Indebtedness of Executive Officers and

Principal Shareholders and their

Related Interests to Correspondent

Banks. Form FFIEC 004 is a

recommended form that may be used by

the executive officers and principal

shareholders of an insured state

nonmember bank to report to the board

of directors of their bank on their

indebtedness (and that of their related

interests) to correspondent banks, as

required by part 349 of this chapter. The

reports or any form containing identical

information must be submitted to the

bank’s board of directors by January 31

of each year and cover indebtedness to

correspondent banks during the

preceding calendar year. Form FFIEC

004 is mailed annually by the FDIC to

each insured state nonmember bank.

7. Appendix A to part 304 is revised

to read as follows:

Appendix A to Part 304—List of Forms

[Note: See footnotes at end of table.]

Form Title

Section of FDICs regulations

(12 CFR chapter III) where

the form is referenced

OMB No.

FDIC 6112/01 ........................... Initial Statement of Beneficial Ownership of Equity Securities

(Form F–7).

335.413 ................................... 3064–0030

FDIC 6112/02 ........................... Statement of Changes in Beneficial Ownership of Equity Securities (Form F–8).335.414 ................................... 3064–0030

FDIC 6120/06 ........................... Notification of Bank Services ................................................... 304.5(b) .................................. 3064–0029

FDIC 6200/05 ........................... Application for Federal Deposit Insurance (Commercial

Banks).

303.1 ....................................... 3064–0001

FDIC 6200/06 ........................... Financial Report ....................................................................... (1) ............................................ 3064–0006

FDIC 6200/07 ........................... Application for Federal Deposit Insurance for Operating Noninsured Institutions.303.1 ....................................... 3064–0069

FDIC 6200/09 ........................... Application for Consent to Exercise Trust Powers .................. (2) ............................................ 3064–0025

FDIC 6220/01 ........................... Application for a Merger or Other Transaction Pursuant to

Section 19(c) of the Federal Deposit Insurance Act.

303.3 ....................................... 3064–0016

FDIC 6220/07 ........................... Application for a Merger or Other Transaction Pursuant to

Section 18(c) of the Federal Deposit Insurance Act (Phantom or Corporate Reorganization).

303.7(b)(1) and 303.3 ............. 3064–0015

FDIC 6342/12 ........................... Request for Deregistration Registered Transfer Agent ........... 341.5 ....................................... 3064–0027

FDIC 6420/07 ........................... Certified Statement .................................................................. 304.3(a) .................................. 3064–0057

FDIC 6440/12 ........................... Loan/Application Register ........................................................ 338.8(3) ................................... 7100–0247
4898 Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Rules and Regulations

Form Title

Section of FDICs regulations

(12 CFR chapter III) where

the form is referenced

OMB No.

FDIC 6710/06 ........................... Suspicious Activity Report ....................................................... 353.1 ....................................... 3064–0077

FDIC 6710/07 ........................... Application Pursuant to Section 19 of the Federal Deposit Insurance Act.(4) ............................................ 3064–0018

FDIC 6810/01 ........................... Notification of Addition of a Director or Employment of a

Senior Executive Officer.

333.2 ....................................... 3064–0097

FDIC 6822/01 ........................... Notice of Acquisition of Control ............................................... 303.4(b) .................................. 3064–0019

FDIC 8020/05 ........................... Summary of Deposits .............................................................. 304.5(a) .................................. 3064–0061

FFIEC 001 ................................ Annual Report of Trust Assets ................................................ 304.5(c) ................................... 3064–0024

FFIEC 002 ................................ Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks.304.5(d) .................................. 7100–0032

FFIEC 004 ................................ Report on Indebtedness of Executive Officers and Principal

Shareholders and their Related Interests to Correspondent

Banks.

304.5(e) .................................. 3064–0023

FFIEC 009 ................................ Country Exposure Report ........................................................ 351.3(b) .................................. 3064–0017

FFIEC 009a .............................. Country Exposure Information Report ..................................... 351.3 ....................................... 3064–0017

FFIEC 019 ................................ Country Exposure Report for U.S. Branches and Agencies of

Foreign Banks.

(5) ............................................ 3064–0017

FFIEC 030 ................................ Foreign Branch Report of Condition ........................................ 347.6(b) .................................. 3064–0011

FFIEC 031 ................................ Consolidated Reports of Condition and Income for a Bank

with Domestic and Foreign Offices.

304.4 ....................................... 3064–0052

FFIEC 032 ................................ Consolidated Reports of Condition and Income for a Bank

with Domestic Offices Only and Total Assets of $300 Million or More.

304.4 ....................................... 3064–0052

FFIEC 033 ................................ Consolidated Reports of Condition and Income for a Bank

with Domestic Offices Only and Total Assets of $100 Million or More But Less Than $300 Million.

304.4 ....................................... 3064–0052

FFIEC 034 ................................ Consolidated Reports of Condition and Income for a Bank

with Domestic Offices Only and Total Assets of Less than

$100 Million.

304.4 ....................................... 3064–0052

FFIEC 035 ................................ Monthly Consolidated Foreign Currency Report of Banks in

the United States.

(6) ............................................ 1557–0156

GFIN ......................................... Notice of Government Securities Broker or Government Securities Dealer Activities to be Filed by a Financial Institution Under Section 15C(a)(1)(B).(7) ............................................ 1535–0089

GFIN–W ................................... Notice by Financial Institutions of Termination of Activities as

a Government Securities Broker or Government Securities

Dealer.

(7) ............................................ 7100–0224

GFIN–4 ..................................... Disclosure Form for Person Associated With a Financial Institution Government Securities Broker or Dealer.(7) ............................................ 1535–0089

GFIN–5 ..................................... Uniform Termination Notice for Person Associated With a Financial Institution Government Securities Broker or Dealer.(7) ............................................ 1535–0089

MSD 4 ...................................... Uniform Application for Municipal Securities Principal or Municipal Securities Representative Associated With a Bank

Municipal Securities Dealer.

343.3 ....................................... 3064–0022

MSD 5 ...................................... Uniform Termination for Municipal Securities Principal or Municipal Securities Representative Associated With a Bank

Municipal Securities Dealer.

343.3 ....................................... 3064–0022

TA–1 ......................................... Transfer Agent Registration and Amendment Form ................ 341.6 ....................................... 3064–0026

Notes:

1 Not referenced in 12 CFR chapter III. The report form is submitted by each individual director or officer of a proposed or operating bank applying to the FDIC for federal deposit insurance as a state nonmember bank, or by a person proposing to acquire ownership or control of an insured state nonmember bank. 2The report form can be obtained from the HMDA Assistance line by telephoning (202) 452–2016.

3 Not referenced in 12 CFR chapter III. The application form is submitted by insured state nonmember banks applying for FDIC consent to exercise trust powers. 4 Not referenced in 12 CFR chapter III. The application form is submitted by FDIC-insured banks applying for FDIC consent to employ persons

who have been convicted of crimes involving dishonesty or breach of trust. 5 Not referenced in 12 CFR chapter III. The report form is submitted by state chartered and federally-licensed branches and agencies of foreign

banks in the U.S. with $30 million or more in total direct claims on foreign residents. The Federal Reserve Board collects and processes the report on behalf of FDIC-supervised branches. The report is submitted quarterly to the appropriate Federal Reserve district bank. 6 Not referenced in 12 CFR chapter III. The report form is submitted by banks (other than savings banks) and bank holding companies with a

dollar equivalent of $100 million or more in assets, liabilities, foreign exchange contracts bought and foreign exchange contracts sold in any six

specific foreign currencies as of the end of a month. The Office of the Comptroller of the Currency collects and processes this monthly report on

behalf of insured state nonmember banks. 7 Not referenced in 12 CFR chapter III. The report form is submitted by banks or persons associated with banks required to file under section

15C of the Securities and Exchange Act of 1934.
Federal Register / Vol. 62, No. 22 / Monday, February 3, 1997 / Rules and Regulations 4899

Appendix B to Part 304—[Removed]

8. Appendix B to part 304 is removed.

By Order of the Board of Directors.

Dated at Washington, D.C., this 21st day of

January, 1997.

Federal Deposit Insurance Corporation.

Jerry L. Langley,

Executive Secretary.

[FR Doc. 97–2530 Filed 1–31–97; 8:45 am]

BILLING CODE 6714–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–ANE–09; Amendment 39–

9897; AD 97–02–12]

RIN 2120–AA64

Airworthiness Directives; Rolls-Royce

plc RB211–535E4 and –535E4–B Series

Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to Rolls-Royce plc RB211–

535E4 and –535E4–B series turbofan

engines, that requires installation of an

improved fuel flow governor that

incorporates revised minimum

compressor discharge P4 stop settings.

This amendment is prompted by reports

of engine rundowns during low idle

descent during icing conditions. The

actions specified by this AD are

intended to prevent compressor stall

and subsequent engine rundown on one

or both engines.

DATES: Effective April 4, 1997.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of April 4,

1997.

ADDRESSES: The service information

referenced in this AD may be obtained

from Rolls-Royce plc, P.O. Box 31, Moor

Lane, Derby, DE248BJ, United Kingdom;

telephone 1332–249428, fax 1332–

249423. This information may be

examined at the Federal Aviation

Administration (FAA), New England

Region, Office of the Assistant Chief

Counsel, 12 New England Executive

Park, Burlington, MA; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., Suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Daniel Kerman, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803–5299; telephone (617) 238–7130,

fax (617) 238–7199.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to Rolls-Royce plc (R–

R) RB211–535 series turbofan engines

was published in the Federal Register

on June 12, 1996 (61 FR 29697). That

action proposed to require installation

of an improved Fuel Flow Governor

(FFG) that incorporate revised minimum

compressor discharge P4 stop settings.

This revised setting will raise the steady

state low idle schedule above the idle

conditions experienced during any of

the prior engine rundown events. This

schedule increase will result in a

substantial increase in Intermediate

Pressure Compressor (IPC) stall margin,

a moderate increase in High Pressure

Compressor (HPC) stall margin, as well

as provide the additional benefit of

increased ice accretion tolerance due to

increased compressor airflow and

increased rotor speed. This action must

be accomplished within 9 calendar

months after the effective date of this

AD. The FAA has determined the

calendar end-date based on the time

interval required for fleet modification.

The actions would be required to be

accomplished in accordance with R–R

Mandatory (SB) No. RB.211–73–B869,

Revision 1, dated May 24, 1996.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. Due

consideration has been given to the

comments received.

One commenter states that the

proposed AD should be modified to

eliminate the shop visit requirement

and to impose a calendar end-date for

compliance with the proposed FFG

modification. The FAA concurs, and has

revised this final rule to delete the shop

visit requirement. The FAA has

determined that the shop visit

requirement is not necessary and that a

calendar end-date will assure an

adequate level of safety.

One commenter states that the

compliance period for the proposed AD

should be extended from 9 months to

one year. The commenter bases this

request on the fact that there are limited

facilities available to modify the FFG.

The FAA does not concur. The

manufacturer has established sufficient

inventory and facility capability to

implement the modification program

within 9 months after the effective date

of the final rule AD. The FAA also notes

that the burden on the current inventory

and facilities will be minimized because

a large population of operators have

already voluntarily complied with the

proposed FFG modification.

One commenter states that the

modification of the FFG, as required by

the proposed AD, on one engine for

each aircraft, should be sufficient for

terminating action to AD 96–04–11,

which required selecting anti-ice prior

to initiating descent. The FAA does not

concur. The FAA is concerned that

under the circumstances in which a

rundown occurs, there could be

excessive crew workload, and that this

increased workload could lead to

potentially inappropriate actions by the

flight crew. The FAA has determined

that the interests of the flying public are

best served by requiring the proposed

FFG modification on both engines to

preclude this excessive crew workload.

After careful review of the available

data, including the comments noted

above, the FAA has determined that air

safety and the public interest require the

adoption of the rule with the changes

described previously. The FAA has

determined that these changes will

neither increase the economic burden

on any operator nor increase the scope

of the AD.

There are approximately 770 engines

of the affected design in the worldwide

fleet. The FAA estimates that 381

engines installed on aircraft of U.S.

registry will be affected by this AD, that

it will take approximately 3 work hours

per engine to accomplish the required

actions, and that the average labor rate

is $60 per work hour. The affected FFGs

will be modified to incorporate the

changes required by this AD on a freeof-charge basis per engine. Based on

these figures, the total cost impact of the

AD on U.S. operators is estimated to be

$68,580.

The regulations adopted herein will

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 final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

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