50262 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Proposed Rules

national Ministry of Agriculture. Fifty

percent of the traps were of the McPhail

type, and fifty percent of the traps were

of the Jackson type. If the average

Jackson trap catch was greater than 7

Medflies per trap per week, measures

were taken to control the Medfly

population in the production area. The

national Ministry of Agriculture kept

records of fruit fly finds for each trap,

updated the records each time the traps

were checked, and made the records

available to APHIS inspectors upon

request. The records were maintained

for at least 1 year.

(h) If the average Jackson trap catch

exceeds 14 Medflies per trap per week,

importations of papayas from that

production area must be halted until the

rate of capture drops to an average of 7

or fewer Medflies per trap per week.

(i) All shipments must be

accompanied by a phytosanitary

certificate issued by the national

Ministry of Agriculture stating that the

papayas were grown, packed, and

shipped in accordance with the

provisions of this section.

Done in Washington, DC, this 22nd day of

September 1997.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 97–25487 Filed 9–24–97; 8:45 am]

BILLING CODE 3410–34–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 725

Central Liquidity Facility

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Notice of proposed rulemaking.

SUMMARY: The National Credit Union

Central Liquidity Facility(the CLF), a

mixed-ownership government

corporation within theNCUA, serves as

a liquidity source for its member credit

unions. The current regulation requires

the CLF to secure each loan with a

security interest in all of the assets of

the member credit union. This

requirement interferes with the ability

of credit unions to establish credit

arrangements with other parties and in

some cases may preclude members from

borrowing from the CLF. In order to

accommodate credit arrangements

between the CLF member credit unions

and multiple parties, NCUA is

proposing to amend this requirement to

permit the CLF to take, in lieu of a

blanket security interest, a first priority

security interest in specific assets of the

credit union with a net book value at

least equal to 110% of the amounts

owed on the CLF advance or Agent loan.

The proposed rule is intended to

provide credit unions with greater

flexibility in their normal operations

while ensuring that the CLF is

adequately protected for any loans that

it makes.

DATES: Comments must be received on

or before November 24, 1997.

ADDRESSES: Comments should be

directed to Becky Baker, Secretary of the

Board. Mail or hand-deliver comments

to: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia 22314–3428. Fax

comments to (703) 518–6319. E-mail

comments to boardmail@ncua.gov.

Please send comments by one method

only.

FOR FURTHER INFORMATION CONTACT:

Herbert S. Yolles, President, National

Credit Union Central Liquidity Facility,

at the above address. Telephone

Number (703) 518–6391 or (703) 518–

6363.

SUPPLEMENTARY INFORMATION:

Background

Pub. L. 96–630, Title XVIII, 12 U.S.C.

1795, et seq., enacted in 1979, created

the CLF. Its purpose is to improve

general financial stability by meeting

the liquidity needs of credit unions and

thereby encourage savings, support

consumer and mortgage lending, and

provide basic financial resources to all

segments of the economy.

Most credit unions are members of a

corporate credit union. In addition,

credit unions are now eligible for

Federal Home Loan Bank membership.

Both corporate credit unions and

Federal Home Loan Banks require that

a credit union provide collateral for

borrowing. In addition, credit unions

may also borrow from other financial

institutions and are required to provide

collateral for such borrowings. While

multiple security agreements are not

prohibited under the current regulation,

the presence of competing security

interests could result in the CLF being

under-collateralized for any advances.

Collateral—Net Book Value

Currently, Section 725.19 requires

that the CLF secure each loan with a

blanket security interest in all of the

assets of the member credit union. The

proposed rule gives the CLF the option

of taking either a blanket security

interest or a first priority security

interest in specific collateral of the

credit union with a net book value at

least equal to 110% of the amounts

owed on the CLF advance or Agent loan.

This requirement would permit a credit

union to provide collateral to other

lenders and still have the ability to

borrow from the CLF, so long as it had

other assets with sufficient net book

value to support the CLF advance or

Agent loan. It also would permit the

CLF to accept a security interest in all

assets of the credit union as collateral

for a CLF advance to a Regular member.

However, the net book value of the

assets would still have to be at least

equal to 110% of the amounts amounts

owed on the CLF advance or Agent loan.

Superior Perfected Interest

In calculating the value of the assets

covered by the security interest, assets

in which any third party had a superior

perfected interest would be excluded.

Section 208 Assistance

The proposed rule also expressly

authorizes the CLF to accept the

guarantee of the National Credit Union

Share Insurance Fund as collateral for

borrowings by a credit union. This

provision would facilitate advances by

the CLF to credit unions receiving

assistance under Section 208 of the

Federal Credit Union Act.

Regulatory Procedures

Regulatory Flexibility Act

The NCUA Board certifies that this

proposed rule, if adopted, will not have

a significant impact on a substantial

number of small credit unions (those

under $1 million in assets). The

proposed rule will make it easier for

credit unions to obtain loans from both

CLF and other sources. Accordingly, a

regulatory flexibility analysis is not

required.

Paperwork Reduction Act

The proposed rule has no information

collection requirements; therefore, no

Paperwork Reduction Act analysis is

required.

Executive Order 12612

The NCUA Board has determined that

the proposed rule, if adopted, 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 various levels of

government.

List of Subjects in 12 CFR Part 725

Credit, Credit unions, Reporting and

recordkeeping requirements.
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Proposed Rules 50263

By the National Credit Union

Administration Board on September 17,

1997.

Becky Baker,

Secretary of the Board.

For the reasons set forth in the

preamble, NCUA proposes to amend 12

CFR part 725 as set forth below:

PART 725—NATIONAL CREDIT UNION

ADMINISTRATION CENTRAL

LIQUIDITY FACILITY

1. 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).

2. Section 725.19 is revised to read as

follows:

§ 725.19 Collateral requirements.

(a) Each CLF advance and each Agent

loan shall be secured by a first priority

security interest in collateral of the

credit union with a net book value at

least equal to 110% of all amounts due

under the applicable CLF advance or

Agent loan, or by guarantee of the

National Credit Union Share Insurance

Fund.

(b) The CLF may accept as collateral

for each CLF advance to a Regular

member, a security interest in all assets

of the Regular member; provided

however, that the value of any assets in

which any third party has a perfected

security interest that is superior to the

security interest of the CLF shall be

excluded for purposes of complying

with the requirements of paragraph (a)

of this section.

(c) The CLF may accept as collateral

for each CLF advance to an Agent

member, a security interest in the Agent

loans for which the CLF advance was

made; provided however, that the

collateral for such Agent loan meets the

requirements of paragraph (a) of this

section.

[FR Doc. 97–25359 Filed 9–24–97; 8:45 am]

BILLING CODE 7535–01–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–54–AD]

RIN 2120–AA64

Airworthiness Directives; Boeing

Model 757–200 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 Boeing Model 757–200 series

airplanes. This proposal would require

the application of a sealant, secondary

fuel barrier, and corrosion-inhibiting

compound to certain portions of the

wing center section. This proposal is

prompted by reports indicating that,

during manufacture, the secondary fuel

barrier was not applied to certain

portions of the wing center section. The

actions specified by the proposed AD

are intended to prevent leakage of fuel

through the fasteners, sealant, or

structural cracks in the center section

structure, which could result in fuel or

fuel vapors entering the cargo or

passenger compartment of the airplane.

DATES: Comments must be received by

November 5, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 97–NM–

54–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

Boeing Commercial Airplane Group,

P.O. Box 3707, Seattle, Washington

98124–2207. This information may be

examined at the FAA, Transport

Airplane Directorate, 1601 Lind Avenue

SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

Kathrine Rask, Aerospace Engineer,

Propulsion Branch, ANM–140S, FAA,

Seattle Aircraft Certification Office,

1601 Lind Avenue SW., Renton,

Washington; telephone (425) 227–1547;

fax (425) 227–1181.

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–54–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–54–AD, 1601 Lind Avenue SW.,

Renton, Washington 98055–4056.

Discussion

The FAA has received reports

indicating that, during manufacture, the

secondary fuel barrier was not applied

on the outboard corners of the front spar

of the wing center section on certain

Boeing Model 757–200 series airplanes.

The secondary fuel barrier is applied to

areas of the wing center section that are

exposed to cabin pressure. If the

secondary barrier is not applied, fuel

could leak through the fasteners,

sealant, or structural cracks in the center

section structure, which could result in

fuel or fuel vapors entering the cargo or

passenger compartment of the airplane.

Explanation of Relevant Service

Information

The FAA has reviewed and approved

Boeing Service Bulletin 757–57–0053,

dated February 6, 1997, which describes

procedures for the application of a

sealant, secondary fuel barrier, and

corrosion-inhibiting compound to areas

on the front spar of the wing center

section. Accomplishment of this

application will ensure that any fuel

leaks through the tank structure do not

enter the cargo or passenger

compartments of the airplane.

Explanation of Requirements of

Proposed Rule

Since an unsafe condition has been

identified that is likely to exist or

develop on other products of this same

type design, the proposed AD would

require the application of a sealant,