Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Proposed Rules 7725

73.37(f) also issued under sec. 301, Pub.

L. 96–295, 94 Stat. 789 (42 U.S.C. 5841

note). Section 73.57 is issued under sec.

606, Pub. L. 99–399, 100 Stat. 876 (42

U.S.C. 2169).

2. Section 73.55 is amended by

revising paragraphs (d)(1), (d)(4), (d)(5),

(d)(7)(i)(A), and (d)(8) to read as follows:

§ 73.55 Requirements for physical

protection of licensed activities in nuclear

power reactors against radiological

sabotage.

* * * * *

(d) * * *

(1) The licensee shall control all

points of personnel and vehicle access

into a protected area. Identification and

search of all individuals unless

otherwise provided herein must be

made and authorization must be

checked at these points. The search

function for detection of firearms,

explosives, and incendiary devices must

be accomplished through the use of both

firearms and explosive detection

equipment capable of detecting those

devices. The licensee shall subject all

persons except bona fide Federal, State,

and local law enforcement personnel on

official duty to these equipment

searches upon entry into a protected

area. Armed security guards who are on

duty and have exited the protected area

on official business may reenter the

protected area without being searched

for firearms.

* * * * *

(4) All vehicles, except under

emergency conditions, must be searched

for items which could be used for

sabotage purposes prior to entry into the

protected area. Vehicle areas to be

searched must include the cab, engine

compartment, undercarriage, and cargo

area. All vehicles, except as indicated in

this paragraph, requiring entry into the

protected area must be escorted by a

member of the security organization

while within the protected area and, to

the extent practicable, must be off

loaded in the protected area at a specific

designated materials receiving area that

is not adjacent to a vital area. Escort is

not required for designated licensee

vehicles or licensee-owned vehicles

entering the protected area and driven

by licensee employees having

unescorted access.

(5) A numbered picture badge

identification system must be used for

all individuals who are authorized

access to protected areas without escort.

Badges must be displayed by all

individuals while inside the protected

area. An individual not employed by the

licensee but who requires frequent and

extended access to protected and vital

areas may be authorized access to such

areas without escort provided that he or

she displays a licensee-issued picture

badge upon entrance into the protected

area which indicates:

(i) Non-employee—no escort required;

(ii) Areas to which access is

authorized; and

(iii) The period for which access has

been authorized.

* * * * *

(7) * * *

(i) * * *

(A) Establish a current authorization

access list for all vital areas. The access

list must be updated by the cognizant

licensee manager or supervisor at least

once every 31 days and must be

reapproved at least quarterly. The

licensee shall include on the access list

only individuals whose specific duties

require access to vital areas during

nonemergency conditions.

* * * * *

(d)(8) All keys, locks, combinations,

and related access control devices used

to control access to protected areas and

vital areas must be controlled to reduce

the probability of compromise.

Whenever there is evidence or suspicion

that any key, lock, combination, or

related access control devices may have

been compromised, it must be changed

or rotated. The licensee shall issue keys,

locks, combinations and other access

control devices to protected areas and

vital areas only to persons granted

unescorted facility access. Whenever an

individual’s unescorted access is

revoked due to his or her lack of

trustworthiness, reliability, or

inadequate work performance, keys,

locks, combinations, and related access

control devices to which that person

had access must be changed or rotated.

* * * * *

Dated at Rockville, Maryland, this 14th day

of February, 1997.

For the Nuclear Regulatory Commission.

John C. Hoyle,

Secretary of the Commission.

[FR Doc. 97–4219 Filed 2–19–97; 8:45 am]

BILLING CODE 7590–01–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 360

RIN 3064–AB92

Resolution and Receivership Rules

AGENCY: Federal Deposit Insurance

Corporation.

ACTION: Notice of proposed rulemaking

and request for comments.

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

(CDRIA) the FDIC is proposing to amend

its regulation addressing ‘‘least cost

resolutions’’ to correct a typographical

error. The provisions of the regulation

relating to the security interests of

Federal Home Loan Banks (Banks) in

FDIC-administered receiverships, is

being removed because of its limited

applicability and the federal statutory

protections provided to the Banks make

it unnecessary to continue to address

the issues contained therein by

regulation. To the extent specific issues

arise regarding the Banks’ extensions of

credit or security interests in FDICadministered receiverships, they can be

addressed on a case by case basis within

the existing statutory structure.

DATES: Comments must be submitted on

or before April 21, 1997.

ADDRESSES: Send written comments to

the Office of the Executive Secretary,

Federal Deposit Insurance Corporation,

550 17th Street, N.W., Washington, D.C.,

20429. Comments may be handdelivered to Room F–400, 1776 F Street,

N.W. 20429, on business days between

8:30 a.m. and 4:30 p.m.; sent by

facsimile: (202) 898–3838; or by

Internet: Comments@fdic.gov.

Comments may be inspected and

photocopied in the FDIC Public

Information Center, Room 100, 801 17th

Street, N.W., Washington, D.C. 20429,

between 9:00 a.m. and 4:30 p.m. on

business days.

FOR FURTHER INFORMATION CONTACT:

Mitchell Glassman, Deputy Director,

Division of Resolutions and

Receiverships, (202) 898–6525; Rodney

D. Ray, Counsel, Legal Division, (202)

898–3556; Catherine A. Ribnick,

Counsel, Legal Division, (202) 736–

0117, Federal Deposit Insurance

Corporation, Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

Background

As part of the FDIC’s review of its

regulations pursuant to section 303 of

CDRIA, the FDIC reviewed its

receivership regulations to assure that

there was a need for their continued

existence. If it was determined that a

regulation should be retained, it also

was reviewed for accuracy and clarity.

As part of the review process, the FDIC

determined that § 360.1 should be

retained but amended to correct a

typographical error. It was determined

that § 360.2 should be removed because

the regulation is of limited applicability

and addresses only the concerns of a

discrete and limited group of secured

creditors, whose interests are already
7726 Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Proposed Rules

1The regulation was originally designated 12 CFR

569c.8–1.

2See 54 FR 19155 (May 4, 1989).

3Section 10(e), footnote 1, provides:

Notwithstanding any other provision of law, any

security interest granted to a Federal Home Loan

Bank by any member of any Federal Home Loan

Bank or any affiliate of any such member shall be

entitled to priority over the claims and rights of any

party (including any receiver, conservator, trustee,

or similar party having rights of a lien creditor)

other than claims and rights that

(1) Would be entitled to priority under otherwise

applicable law; and

(2) Are held by actual bona fide purchasers for

value or by actual parties that were secured by

actual perfected security interests.

4The paragraph essentially tracks section 306(d)

of CEBA but adds ‘‘whether such security interest

is in specifically designated assets or a blanket

interest in all assets or categories of assets’’.

5Section 212(a) of FIRREA amended section 11(c)

through (j) of the FDI Act (12 U.S.C. 1821(c)–(j)). In

the process, it added section 11(e)(13) (12 U.S.C.

1821(e)(13)) to the FDI Act, which states:

No provision of this subsection shall apply with

respect to:

(A) Any extension of credit from any Federal

home loan bank or Federal Reserve bank to any

insured depository institution; or

(B) Any security interest in the assets of the

institution securing any such extension of credit.

6Section 141(b) of FDICIA amended section

11(d)(5)(D) (12 U.S.C. 1821(d)(5)(D)) of the FDI Act

to add section 11(d)(5)(D)(iii) (12 U.S.C.

1821(d)(5)(D)(iii)), which states:

No provision of this paragraph shall apply with

respect to:

(I) Any extension of credit from any Federal home

loan bank or Federal Reserve bank to any institution

described in paragraph (3)(A); or

(II) Any security interest in the assets of the

institution securing any such extension of credit.

addressed by federal statutes.

Additionally, the regulation was the

product of an increasing number of

liquidating receiverships precipitated by

the nation’s thrift crisis, which has since

subsided, making it unnecessary to

continue to address the issues contained

therein by regulation.

I. Section 360.1 Least-Cost Resolution

Section 13(c)(4)(E)(i) of the Federal

Deposit Insurance Act (FDI Act) (12

U.S.C. 1823(c)(4)(E)(i)) generally

prohibits the FDIC, after August 31,

1994, from taking any action directly or

indirectly, with respect to a depository

institution which would have the effect

of increasing losses to any deposit

insurance fund by protecting the

institution’s uninsured depositors or

other creditors. Section 360.1 was

promulgated in compliance with the

statutory mandate, contained in section

13(c)(4)(E)(ii) of the FDI Act (12 U.S.C.

1823(c)(4)(E)(ii)), that the FDIC issue

regulations implementing clause (i) not

later than January 1, 1994. Because the

regulation was issued pursuant to

statute, it is being retained.

Upon review, however, an erroneous

statutory citation was discovered in

§ 360.1(b) and the regulation is being

amended to change the reference from

‘‘12 U.S.C. 13(c)(4)(A)’’ to ‘‘12 U.S.C.

1823(c)(4)(A)’’.

II. Section 360.2 Federal Home Loan

Banks as Secured Creditors

Section 360.2 was originally

promulgated by the Federal Home Loan

Bank Board (FHLBB) on April 27, 1989.1

At the time, the FHLBB recognized that

the incidence of liquidating receivership

(liquidating receivership or liquidating

receiverships) insurance actions was

increasing. Against this background, the

FHLBB determined that the regulation

was needed, among other reasons, to set

forth expressly the Banks’ rights

regarding collateral securing Federal

Home Loan Bank (Bank) advances in

situations where a receiver was

appointed, not to effect a purchase and

assumption agreement, but to liquidate

the institution’s assets over time,

accompanied by a Federal Savings and

Loan Insurance Corporation (FSLIC)

deposit insurance payment of the

deposit accounts.2 The regulation was

subsequently transferred to the FDIC,

pursuant to section 402(a) of the

Financial Institutions Reform, Recovery,

and Enforcement Act of 1989 (FIRREA)

Pub. L. 101–73, 103 Stat. 183 (1989),

when the FHLBB and FSLIC were

abolished. Since its transfer on August

9, 1989, the regulation has remained

unchanged.

The section implements and amplifies

upon the priority accorded to the Banks’

security interests in section 306(d) of

the Competitive Equality Banking Act of

1987, Pub. L. 100–86, 101 Stat. 552

(CEBA) (1988) (section 10(e), footnote 1,

of the Federal Home Loan Bank Act

(FHLB Act) (12 U.S.C. 1430(e), footnote

1).3 Section 360.2(a) requires the

receiver to recognize the priority of any

security interest held by a Bank for a

loan to a member or its affiliate, when

the member is placed in receivership.4

The remaining paragraphs, (b) through

(e), address issues related to the Banks’

security interests and collateral, which

were not addressed in CEBA.

In addition to the priority accorded

the Banks’ security interests by CEBA,

other federal statutory provisions were

enacted subsequent to promulgation of

the regulation which provide the Banks’

extensions of credit and security

interests additional receivership

protections. For example, an

amendment contained in section 212(a)

of FIRREA excepted the Banks’

extensions of credit or security interests

from FIRREA’s detailed provisions

addressing contracts entered into before

a receiver’s or conservator’s

appointment.5 Additionally, section

141(b) of the Federal Deposit Insurance

Corporation Improvement Act of 1991

(FDICIA) excepted the Banks’

extensions of credit or security interests

from section 11(d)(5) (12 U.S.C.

1821(d)(5)) of the receivership claims

process.6

Based upon a review of the section

and its history, it appears that the

section is of limited applicability

because the FHLBB intended for it to

address issues related solely to the

Banks’ security interests in liquidating

receiverships. Since the regulation was

promulgated, Congress also has

conferred significantly more benefits

upon the Banks than are enjoyed by

most other secured creditors in FDICadministered receiverships. Finally, the

section was the product of an increasing

number of institutions being placed in

liquidating receiverships in the late

1980’s, when the nation was confronted

with a crisis in the thrift industry,

which has since subsided. Therefore,

the Board of Directors has determined

that there is insufficient justification for

the section’s continued existence and

that the matters addressed therein can

be adequately addressed on a case by

case basis within the existing statutory

structure. Although the regulation is

being removed as part of the CDRIA

process, however, the FDIC intends to

continue to assist the Banks with the

resolution of specific issues regarding

their extensions of credit or security

interests, on a case by case basis, as the

need arises.

Paperwork Reduction Act

No collections of information

pursuant to section 3504(h) of the

Paperwork Reduction Act (44 U.S.C.

3501 et. seq.) are contained in this

notice. Consequently, no information

has been submitted to the Office of

Management and Budget for review.

Regulatory Flexibility Act

The Board of Directors certifies that

the proposed rule does not have a

significant economic impact on a

substantial number of small entities

within the meaning of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.).

The Board of Directors action is being

taken to correct a statutory citation in an

existing regulation and to remove a

section of the regulation addressing

certain aspects of secured claims held

by Banks in FDIC-administered

receiverships. The Banks are not within

the Regulatory Flexibility Act’s

definition of ‘‘small entities’’.

Accordingly, the Act’s requirements
Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Proposed Rules 7727

regarding an initial and final regulatory

flexibility analysis are inapplicable.

List of Subjects in 12 CFR Part 360

Savings associations.

For the reasons set out in the

preamble, part 360 of chapter III of title

12 of the Code of Federal Regulations is

proposed to be amended as follows:

PART 360—RESOLUTION AND

RECEIVERSHIP RULES

1. The authority citation for part 360

continues to read as follows:

Authority: 12 U.S.C. 1821(d)(11),

1821(e)(8)(D)(i), 1823(c)(4); Sec. 401(h), Pub.

L. 101–73, 103 Stat. 357.

2. Section 360.1 is amended by

revising paragraph (b) to read as follows:

§ 360.1 Least-cost resolution.

* * * * *

(b) Purchase and assumption

transactions. Subject to the requirement

of section 13(c)(4)(A) of the FDI Act (12

U.S.C. 1823(c)(4)(A)), paragraph (a) of

this section shall not be construed as

prohibiting the FDIC from allowing any

person who acquires any assets or

assumes any liabilities of any insured

depository institution, for which the

FDIC has been appointed conservator or

receiver, to acquire uninsured deposit

liabilities of such institution as long as

the applicable insurance fund does not

incur any loss with respect to such

uninsured deposit liabilities in an

amount greater than the loss which

would have been incurred with respect

to such liabilities if the institution had

been liquidated.

§ 360.2 [Removed and reserved]

3. Section 360.2 is removed and

reserved.

By order of the Board of Directors.

Dated at Washington, D.C., this 4th day of

February, 1997.

Federal Deposit Insurance Corporation

Jerry L. Langley,

Executive Secretary.

[FR Doc. 97–4019 Filed 2–19–97; 8:45 am]

BILLING CODE 6714–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–NM–106–AD]

RIN 2120–AA64

Airworthiness Directives; Airbus Model

A320 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 Airbus Model A320 series

airplanes. This proposal would require

an initial inspection of fastener holes on

certain outer frames of the fuselage to

detect fatigue cracking, and

modification of this area by cold

expanding these holes and installing

oversized fasteners. This proposal is

prompted by a report from the

manufacturer indicating that, during

full-scale fatigue testing of the test

article, fatigue cracking was detected in

the area where the center fuselage joins

the wing. The actions specified by the

proposed AD are intended to prevent

fatigue cracking and consequent

reduced structural integrity of this area,

which could lead to rapid

depressurization of the fuselage.

DATES: Comments must be received by

March 31, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 96–NM–

106–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

Airbus Industrie, 1 Rond Point Maurice

Bellonte, 31707 Blagnac Cedex, France.

This information may be examined at

the FAA, Transport Airplane

Directorate, 1601 Lind Avenue, SW.,

Renton, Washington.

FOR FURTHER INFORMATION CONTACT: Tim

Backman, Aerospace Engineer,

Standardization Branch, ANM–113,

FAA, Transport Airplane Directorate,

1601 Lind Avenue SW, Renton,

Washington 98055–4056; telephone

(206) 227–2797; fax (206) 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 96–NM–106–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.

96–NM–106–AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

The Direction Ge ́ne ́rale de l’Aviation

Civile (DGAC), which is the

airworthiness authority for France,

recently notified the FAA that an unsafe

condition may exist on certain Airbus

Model A320 series airplanes. The DGAC

advises that it has received a report from

the manufacturer indicating that fatigue

cracks were detected during full-scale

fatigue testing of the test article after

90,001 simulated flights. These cracks

were found in fastener holes in the

flange caps of outer right frame 40 and

outer left frame 41, adjacent to Stringer

23; this is the area where the center

fuselage joins the wing. This condition,

if not prevented, consequently could

reduce the structural integrity of this

area, and lead to rapid decompression of

the fuselage.

Explanation of Related and Relevant

Service Information

Airbus has issued Service Bulletin

A320–53–1026, dated August 5, 1994,

which describes procedures for

conducting repetitive eddy current

rotating probe inspections of fastener

holes on certain outer frames of the

fuselage to detect fatigue cracking and

repair, if necessary. These holes are

located on the forward and aft faces of

the flange caps on outer left and right

frames 37 through 41, adjacent to

Stringer 23; this is the area where the

center fuselage joins the wing.