Federal Register / Vol. 62, No. 214 / Wednesday, November 5, 1997 / Rules and Regulations 59779

(iii) The Board and the Federal

Reserve Banks will not hold a passthrough correspondent responsible for

guaranteeing the accuracy of the reports

of deposits submitted by its

respondents.

(3) Allocation of low reserve tranche

and exemption from reserve

requirements. A depository institution,

a foreign bank, or an Edge or Agreement

corporation shall, if possible, assign the

low reserve tranche and reserve

requirement exemption prescribed in

§ 204.9(a) to only one office or to a

group of offices filing a single

aggregated report of deposits. The

amount of the reserve requirement

exemption allocated to an office or

group of offices may not exceed the

amount of the low reserve tranche

allocated to such office or offices. If the

low reserve tranche or reserve

requirement exemption cannot be fully

utilized by a single office or by a group

of offices filing a single report of

deposits, the unused portion of the

tranche or exemption may be assigned

to other offices or groups of offices of

the same institution until the amount of

the tranche (or net transaction accounts)

or exemption (or reservable liabilities) is

exhausted. The tranche or exemption

may be reallocated each year concurrent

with implementation of the indexed

tranche and exemption, or, if necessary

during the course of the year to avoid

underutilization of the tranche or

exemption, at the beginning of a reserve

computation period.

(b) Form and location of reserves. (1)

A depository institution, a U.S. branch

or agency of a foreign bank, and an Edge

or Agreement corporation shall hold

reserves in the form of vault cash, a

balance maintained directly with the

Federal Reserve Bank in the Federal

Reserve District in which it is located,

or, in the case of nonmember

institutions, with a pass-through

correspondent in accordance with

§ 204.3(i).

(2) (i) For purposes of this section, a

depository institution, a U.S. branch or

agency of a foreign bank, or an Edge or

Agreement corporation is located in the

Federal Reserve District that contains

the location specified in the institution’s

charter, organizing certificate, or license

or, if no such location is specified, the

location of its head office, unless

otherwise determined by the Board

under paragraph (b)(2)(ii) of this section.

* * * * *

(i) Pass-through rules. (1) Procedure.

(i) A nonmember depository institution,

a U.S. branch or agency of a foreign

bank, or an Edge or Agreement

corporation required to maintain reserve

balances (respondent) may select only

one institution to pass through its

required reserve balances, unless

otherwise permitted by Federal Reserve

Bank in whose district the respondent is

located. Eligible institutions through

which respondent required reserve

balances may be passed

(correspondents) are Federal Home Loan

Banks, the National Credit Union

Administration Central Liquidity

Facility, and depository institutions,

U.S. branches or agencies of foreign

banks, and Edge and Agreement

corporations that maintain required

reserve balances at a Federal Reserve

office. In addition, the Board reserves

the right to permit other institutions, on

a case-by-case basis, to serve as passthrough correspondents. The

correspondent chosen must

subsequently pass through the required

reserve balances of its respondents

directly to a Federal Reserve Bank. The

correspondent placing funds with a

Federal Reserve Bank on behalf of

respondents will be responsible for

account maintenance as described in

paragraphs (i)(2) and (i)(3) of this

section.

(ii) Respondents or correspondents

may institute, terminate, or change passthrough arrangements for the

maintenance of required reserve

balances by providing all

documentation required for the

establishment of the new arrangement

or termination of the existing

arrangement to the Federal Reserve

Banks involved within the time period

provided for such a change by those

Reserve Banks.

(2) Account maintenance. A

correspondent that passes through

required reserve balances of

respondents shall maintain such

balances, along with the

correspondent’s own required reserve

balances (if any), in a single

commingled account at the Federal

Reserve Bank in whose District the

correspondent is located, unless

otherwise permitted by the Reserve

Bank. The balances held by the

correspondent in an account at a

Reserve Bank are the property of the

correspondent and represent a liability

of the Reserve Bank solely to the

correspondent, regardless of whether

the funds represent the reserve balances

of another institution that have been

passed through the correspondent.

(3) Responsibilities of parties. (i) Each

individual depository institution, U.S.

branch or agency of a foreign bank, or

Edge or Agreement corporation is

responsible for maintaining its required

reserve balance either directly with a

Federal Reserve Bank or through a passthrough correspondent.

(ii) A pass-through correspondent

shall be responsible for assuring the

maintenance of the appropriate

aggregate level of its respondents’

required reserve balances. A Federal

Reserve Bank will compare the total

reserve balance required to be

maintained in each account with the

total actual reserve balance held in such

account for purposes of determining

required reserve deficiencies, imposing

or waiving charges for deficiencies in

required reserves, and for other reserve

maintenance purposes. A charge for a

deficiency in the aggregate level of the

required reserve balance will be

imposed by the Reserve Bank on the

correspondent maintaining the account.

(iii) Each correspondent is required to

maintain detailed records for each of its

respondents in a manner that permits

Federal Reserve Banks to determine

whether the respondent has provided a

sufficient required reserve balance to

the correspondent. A correspondent

passing through a respondent’s reserve

balance shall maintain records and

make such reports as the Board or

Reserve Bank requires in order to insure

the correspondent’s compliance with its

responsibilities for the maintenance of a

respondent’s reserve balance. Such

records shall be available to the Reserve

Banks as required.

(iv) The Federal Reserve Bank may

terminate any pass-through relationship

in which the correspondent is deficient

in its recordkeeping or other

responsibilities.

(v) Interest paid on supplemental

reserves (if such reserves are required

under § 204.6) held by a respondent will

be credited to the account maintained

by the correspondent.

By order of the Board of Governors of the

Federal Reserve System, October 30, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–29203 Filed 11–4–97; 8:45 am]

BILLING CODE 6210–01–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 614 and 619

RIN 3052–AB64

Loan Policies and Operations;

Definitions; Loan Underwriting;

Effective Date

AGENCY: Farm Credit Administration.

ACTION: Notice of effective date.

SUMMARY: The Farm Credit

Administration (FCA) published a final

rule under parts 614 and 619 on
59780 Federal Register / Vol. 62, No. 214 / Wednesday, November 5, 1997 / Rules and Regulations

September 30, 1997 (62 FR 51007). The

final rule amends the regulations

relating to loan underwriting in

response to comments received from the

FCA Board’s initiative to reduce

regulatory burden and in an effort to

streamline the regulations and set clear

minimum regulatory standards where

appropriate. In accordance with 12

U.S.C. 2252, the effective date of the

final rule is 30 days from the date of

publication in the Federal Register

during which either or both Houses of

Congress are in session. Based on the

records of the sessions of Congress, the

effective date of the regulations is

November 5, 1997.

EFFECTIVE DATE: The regulation

amending 12 CFR parts 614 and 619

published on September 30, 1997 (62 FR

51007) is effective November 5, 1997.

FOR FURTHER INFORMATION CONTACT:

John J. Hays, Policy Analyst, Policy

Development and Risk Control, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4498;

or

Joy E. Strickland, Senior Attorney,

Office of General Counsel, Farm

Credit Administration, McLean, VA

22102-5090, (703) 883–4020, TDD

(703) 883–4444.

(12 U.S.C. 2252(a)(9) and (10))

Dated: October 31, 1997.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 97–29272 Filed 11–4–97; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–SW–23–AD; Amendment

39–10195; AD 97–23–07]

RIN 2120–AA64

Airworthiness Directives; Eurocopter

Deutschland GmbH Model MBB–BK

117 A–1, A–3, A–4, B–1, B–2 and C–1

Helicopters

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to Eurocopter Deutschland

GmbH (Eurocopter) Model MBB–BK 117

A–1, A–3, A–4, B–1, B–2, and C–1

helicopters, that establishes a new

retirement life for the clutch and

requires an entry into the Accessory

Replacement Record indicating the new

life limit. This amendment is prompted

by a recalculation of life limitations by

the part manufacturer, Warner Electric.

The clutch manufacturer used the

airframe load spectrum to establish the

new life limit of 3,600 hours time-inservice (TIS). The actions specified by

this AD are intended to prevent failure

of the clutch, loss of power to the main

rotor and a subsequent forced landing of

the helicopter.

EFFECTIVE DATE: December 10, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Lance T. Gant, Aerospace Engineer,

FAA, Rotorcraft Standards Staff,

Rotorcraft Directorate, 2601 Meacham

Blvd., Fort Worth, Texas 76137;

telephone (817) 222–5114, fax (817)

222–5961.

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 Eurocopter

Deutschland GmbH (Eurocopter) Model

MBB-BK 117 A-1, A–3, A–4, B–1, B–2,

and C–1 helicopters was published in

the Federal Register on February 4,

1997 (62 FR 5186). That action proposed

to establish a new retirement life for the

clutch and to require an entry into the

Accessory Replacement Record

indicating the new life limit.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. Due

consideration has been given to the

comment received.

The one commenter asked for a delay

in the issuance of this AD until Warner

Electric established a new retirement

life on the affected clutch. The

commenter indicated that an extended

retirement life would be prepared by the

clutch manufacturer by the end of May,

1997. To date, the FAA has received no

further information about an extension

to the retirement life of the clutch.

After careful review of the available

data, including the comment noted

above, the FAA has determined that air

safety and the public interest require the

adoption of the rule as proposed except

for some non-substantive word changes,

insertion of Note 3 referencing the

Luftfahrt-Bundesamt (LBA) AD, and

correction of the part number in

paragraph (b). The FAA has determined

that these changes will neither increase

the economic burden on any operator

nor increase the scope of this AD.

The FAA estimates that 130

helicopters of U.S. registry will be

affected by this AD, that it will take

approximately 12 work hours per

helicopter to accomplish the required

actions, and that the average labor rate

is $60 per work hour. Required parts

will cost approximately $6,000 per

helicopter. Based on these figures, the

total cost impact of the AD on U.S.

operators is estimated to be $873,600.

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

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.

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 a new airworthiness directive to

read as follows:

AD 97–23–07 Eurocopter Deutschland

GmbH: Amendment 39–10195. Docket

No. 96–SW–23–AD.

Applicability: Model MBB–BK 117 A–1, A–

3, A–4, B–1, and B–2 helicopters, serial

numbers (S/N) 7001 through 7250, and

Model MBB–BK 117 C–1 helicopters, S/N

7500 through 7520, with clutch, part number

(P/N) 4639302044 or P/N CL42067–1,

installed, certificated in any category.

Note 1: This AD applies to each helicopter

identified in the preceding applicability