61046 Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Rules and Regulations 

association for a student at an 

‘‘institution of higher education,’’ as that 

term is generally defined in sections 101 

and 102 of the Higher Education Act of 

1965 (20 U.S.C. 1001 and 1002) and the 

implementing regulations published by 

the U.S. Department of Education, with 

interest rates and fees no greater than 

those of comparable education loans 

offered directly by the U.S. Department 

of Education. Such rates and fees are 

specified in section 455 of the Higher 

Education Act of 1965 (20 U.S.C. 

1087e). 

(f) Activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit 

unions. In assessing and taking into 

account the record of a nonminorityowned and nonwomen-owned savings 

association under this part, the OTS 

considers as a factor capital investment, 

loan participation, and other ventures 

undertaken by the savings association in 

cooperation with minority- and womenowned financial institutions and lowincome credit unions. Such activities 

must help meet the credit needs of local 

communities in which the minorityand women-owned financial 

institutions and low-income credit 

unions are chartered. To be considered, 

such activities need not also benefit the 

savings association’s assessment area(s) 

or the broader statewide or regional area 

that includes the savings association’s 

assessment area(s). 

■ 3. In Appendix A to Part 563e, 

paragraph (a)(1) is revised to read as 

follows: 

Appendix A to Part 563e—Ratings 

(a) * * * 

(1) In assigning a rating, the OTS evaluates 

a savings association’s performance under 

the applicable performance criteria in this 

part, in accordance with §§ 563e.21 and 

563e.28. This includes consideration of lowcost education loans provided to low-income 

borrowers and activities in cooperation with 

minority- or women-owned financial 

institutions and low-income credit unions, as 

well as adjustments on the basis of evidence 

of discriminatory or other illegal credit 

practices. 

* * * * * 

Dated: June 29, 2010. 

John C. Dugan, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, September 2, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 27th day of 

September, 2010. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

Dated: September 24, 2010. 

By the Office of Thrift Supervision. 

John E. Bowman, 

Acting Director. 

[FR Doc. 2010–24737 Filed 10–1–10; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P; 

6720–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0342; Directorate 

Identifier 2002–NE–08–AD; Amendment 39– 

16458; AD 2010–20–23] 

RIN 2120–AA64 

Airworthiness Directives; BombardierRotax GmbH Type 912 F, 912 S, and 

914 F Series Reciprocating Engines 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is superseding an 

existing airworthiness directive (AD) for 

certain serial numbers (S/Ns) of 

Bombardier-Rotax GmbH type 912 F and 

914 F series reciprocating engines. That 

AD currently requires initial and 

repetitive visual inspections of the 

engine crankcase for cracks. This AD 

requires those same inspections, adds 

the 912 S series to the affected 

population, adds a test procedure to 

determine the engine suitability for a 

special flight permit, and changes 

applicability from engine S/N to 

crankcase S/N. This AD results from an 

increase in the affected crankcase 

population. We are issuing this AD to 

prevent oil loss caused by cracks in the 

engine crankcase, which could lead to 

in-flight failure of the engine and forced 

landing. 

DATES: This AD becomes effective 

November 8, 2010. 

ADDRESSES: You can get the service 

information identified in this AD from 

BRP-Rotax GmbH & Co. KG, Welser 

Strasse 32, A–4623 Gunskirchen, 

Austria. 

The Docket Operations office is 

located at Docket Management Facility, 

U.S. Department of Transportation, 1200 

New Jersey Avenue, SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

FOR FURTHER INFORMATION CONTACT: 

Alan Strom, Aerospace Engineer, Engine 

Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

e-mail: alan.strom@faa.gov; telephone 

(781) 238–7143; fax (781) 238–7199. 

SUPPLEMENTARY INFORMATION: The FAA 

proposed to amend 14 CFR part 39 by 

superseding AD 2002–16–26, 

Amendment 39–12865 (67 FR 53296, 

August 15, 2002), with a proposed AD. 

The proposed AD applies to 

Bombardier-Rotax GmbH type 912 F, 

912 S, and 914 F series reciprocating 

engines with certain serial-numbered 

crankcases. We published the proposed 

AD in the Federal Register on April 7, 

2010 (75 FR 17632). That action 

proposed to require initial visual 

inspection for cracks in the engine 

crankcase of engines with certain serialnumbered crankcases, within 50 hours 

time-in-service (TIS) after the effective 

date of that AD, and repetitive visual 

inspections at each 100-hour, annual, or 

progressive inspection, or within 110 

hours TIS since last inspection, 

whichever occurs first. If any cracks are 

found, the engine must be removed from 

service. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Operations office between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Operations office (telephone 

(800) 647–5527) is provided in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

Comments 

We provided the public the 

opportunity to participate in the 

development of this AD. We have 

considered the comment received. 

One commenter asks us to change 

paragraph (g)(4) from ‘‘If the engine 

crankcase is cracked, replace the engine 

before further flight’’ to ‘‘If the engine 

crankcase is cracked, replace, repair, or 

overhaul the engine before further 

flight’’. The commenter states that this 

would allow the option of replacing the 

crankcase as a repair or overhaul as well 

as an outright engine replacement. 

We partially agree. An owner or 

operator might interpret paragraph (g)(4) 

to mean they can’t repair the engine. We 

have changed paragraph (g)(4) to state 

‘‘If the engine crankcase is cracked, 

remove the engine from service before 

further flight.’’ 


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Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Rules and Regulations 61047 

Conclusion 

We have carefully reviewed the 

available data, including the comment 

received, and determined that air safety 

and the public interest require adopting 

the AD with the change described 

previously. We have determined that 

this change will neither increase the 

economic burden on any operator nor 

increase the scope of the AD. 

Costs of Compliance 

Based on the service information, we 

estimate that this AD will affect about 

250 products of U.S. registry. We also 

estimate that it will take about 3 workhours per inspection and 20 work hours 

to replace the crankcase to comply with 

this AD. The average labor rate is $85 

per work-hour. Required parts will cost 

about $6,500 per crankcase. Based on 

these figures and an estimate of one 

crankcase replaced per year, we 

estimate the annual cost of the AD on 

U.S. operators to be $71,950. Our cost 

estimate is exclusive of possible 

warranty coverage. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

part A, subpart III, section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this AD will 

not have federalism implications under 

Executive Order 13132. This AD 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 the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(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. 

We prepared a summary of the costs 

to comply with this AD and placed it in 

the AD Docket. You may get a copy of 

this summary at the address listed 

under ADDRESSES. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety. 

Adoption of the Amendment 

■ Accordingly, under the authority 

delegated to me by the Administrator, 

the Federal Aviation Administration 

amends 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. The FAA amends § 39.13 by 

removing Amendment 39–12865 (67 FR 

53296, August 15, 2002), and by adding 

a new airworthiness directive, 

Amendment 39–16458, to read as 

follows: 

2010–20–23 Bombardier-Rotax GmbH 

(formerly Rotax, Motorenfabrik): 

Amendment 39–16458. Docket No. 

FAA–2010–0342; Directorate Identifier 

2002–NE–08–AD. 

Effective Date 

(a) This airworthiness directive (AD) 

becomes effective November 8, 2010. 

Affected ADs 

(b) This AD supersedes AD 2002–16–26, 

Amendment 39–12865. 

Applicability 

(c) This AD is applicable to BombardierRotax GmbH type 912 F series, 912 S series, 

and 914 F series reciprocating engines that 

have a crankcase serial-numbered 27811 or 

lower, installed. These engines are installed 

on, but not limited to, Aeromot-Industria 

Mecanico Metalurgica Itda AMT–300; Aquila 

Technische Entwiklugen GmbH AQUILA 

AT01; Diamond Aircraft Industries DA– 

20A1; Diamond Aircraft Industries GmbH 

Models HK36TC, HK36TTC, HK36TTC–ECO, 

and HK36TTS; Iniziative Industriali Italiane 

S.p.A. Sky Arrow 650 series; SCHEIBE– 

Flugzeugnau GmbH SF 25C; and Stemme 

S10–VT aircraft. 

Unsafe Condition 

(d) This AD results from an increase in the 

affected engine crankcase population. We are 

issuing this AD to prevent oil loss caused by 

cracks in the engine crankcase, which could 

lead to in-flight failure of the engine and 

forced landing. 

Compliance 

(e) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Determining the Crankcase Serial Number 

(S/N) 

(f) Determine if your crankcase is affected 

by looking at the S/N in the area indicated 

by XXX, following ‘‘Made in Austria,’’ as 

shown on Figure 2 of this AD. The marking 

is on both crankcase halves. 

Initial Inspection 

(g) Within 50 hours time-in-service (TIS) 

from the effective date of this AD, perform a 

visual inspection as follows: 

(1) Inspect the engine crankcase (item 1, 

Figure 1 of this AD) for cracks especially in 

the area of cylinder 1 upper side (item 2), 

between cylinder 1 and 3 upper side (item 3), 

cylinder 4 lower-right side (item 4) and 

detailed inspection in the area identified in 

Figure 2 (item 5) of this AD. Information 

concerning this inspection can be found in 

Bombardier-Rotax Mandatory Service 

Bulletins No. SB–912–029, Revision 3, dated 

July 11, 2006 and No. SB–914–018, Revision 

3, dated July 11, 2006. 

BILLING CODE 4910–13–P 


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61048 Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Rules and Regulations 


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Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Rules and Regulations 61049 

BILLING CODE 4910–13–C 

(2) Cracks in crankcases of engines with a 

ROTAX cooling air baffle may not be easily 

visible, and oil leaks may be an indication of 

cracks. Visually inspect for oil leaks in areas 

of cylinder 1 upper side (item 2, Figure 1 of 

this AD) and between cylinder 1 and cylinder 

3 upper side (item 3). 

(3) If you find oil leaks, determine the 

source by either using a borescope or 

removing the object blocking the view such 

as the air baffle or accessory, and perform the 

inspection. 

(4) If the engine crankcase is cracked, 

remove the engine from service before further 

flight. 

Repetitive Inspections 

(h) Visually inspect the engine crankcase 

(item 1, Figure 1 of this AD) for cracks at 

each 100-hour, annual, or progressive 

inspection, or within 110 hours TIS since last 

inspection, whichever occurs first, in 

accordance with paragraphs (g)(1) through 

(g)(4) of this AD. 

Alternative Methods of Compliance 

(i) The Manager, Engine Certification 

Office, has the authority to approve 

alternative methods of compliance for this 

AD if requested using the procedures found 

in 14 CFR 39.19. 

Special Flight Permits 

(j) Under 14 CFR part 39.23, we are 

limiting the special flight permits for this AD 

by the following conditions if the crankcase 

is cracked or there is evidence of oil leakage 

from the crankcase: 

(1) Perform a leak check as follows: 

(i) Clean the crankcase surface to remove 

any oil. 

(ii) Warm up the engine to a minimum oil 

temperature of 50 degrees C (120 degrees F). 

Information about warming up the engine 

can be found in the applicable line 

maintenance manual. 

(iii) Accelerate the engine to full throttle 

and stabilize at full throttle speed for a time 

period of 5 to 10 seconds. Information about 

performing a full throttle run can be found 

in the applicable line maintenance manual. 

(iv) Shutdown after running the engine at 

idle only long enough to prevent vapor locks 

in the cooling system and fuel system. 

(v) Inspect the crankcase for evidence of oil 

leakage. Oil wetting is permitted, but oil 

leakage of more than one drip in 3 minutes 

after engine shutdown is not allowed. 

(2) Check the crankcase mean pressure to 

confirm that it is 1.46 pounds-per-square 

inch gage (psig) (0.1 bar) or higher when 

checked at takeoff power to ensure proper 

return of oil from the crankcase to the oil 

tank. Information about checking crankcase 

mean pressure is available in the Lubrication 

System section of the applicable engine 

installation manual. 

(3) A ferry flight is not allowed if oil 

leakage exceeds one drip in 3 minutes or if 

crankcase mean pressure is below 1.46 psig. 

Optional Terminating Action 

(k) Installing a crankcase that has a S/N 

above 27811 terminates the inspection 

requirements of paragraphs (g)(1) through 

(g)(4) and (h) of this AD. 


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61050 Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Rules and Regulations 

1 17 CFR 243.100(b)(2)(iii). 

2 17 CFR 243.100 et seq. 

3 17 CFR 243.100(a). See Selective Disclosure and 

Insider Trading, Release No. 34–43154 (Aug. 15, 

2000) [65 FR 51716] at 51716 (the ‘‘Regulation FD 

Adopting Release’’). 4Pub. L. 111–203 (July 21, 2010). 

5Regulation FD Adopting Release, supra note 3, 

at 51719. 6 17 CFR 249.308. 

7 17 CFR 243.101(e). 

8 17 CFR 240.17g–5(a)(3). 

9Regulation FD also provides exemptions for 

communications made to a person who owes the 

issuer a duty of trust or confidence—i.e., a 

‘‘temporary insider’’—such as an attorney, 

investment banker, or accountant (17 CFR 

243.100(b)(2)(i)), to any person who expressly 

agrees to maintain the information in confidence 

(17 CFR 243.100(b)(2)(ii)), and in connection with 

most offerings of securities registered under the 

Securities Act (17 CFR 243.100(b)(2)(iv)). These 

exemptions are unaffected by the Act. 

10See 5 U.S.C. 553(b). 

11 5 U.S.C. 553(b). 

12The Regulatory Flexibility Act requires 

agencies to prepare analyses for rulemaking only 

when the APA requires general notice of proposed 

rulemaking. 5 U.S.C. 603(a). The Regulatory 

Flexibility Act does not apply to the rules we adopt 

today because, as noted above, the Commission is 

Related Information 

(l) Contact Alan Strom, Aerospace 

Engineer, Engine Certification Office, FAA, 

Engine & Propeller Directorate, 12 New 

England Executive Park, Burlington, MA 

01803; e-mail: alan.strom@faa.gov; telephone 

(781) 238–7143; fax (781) 238–7199, for more 

information about this AD. 

(m) EASA airworthiness directive 2007– 

0025, dated February 1, 2007, also addresses 

the subject of this AD. 

(n) Bombardier-Rotax Mandatory Service 

Bulletins No. SB–912–029, Revision 3, dated 

July 11, 2006 and No. SB–914–018, Revision 

3, dated July 11, 2006, pertain to the subject 

of this AD. Contact BRP-Rotax GmbH & Co. 

KG, Welser Strasse 32, A–4623 Gunskirchen, 

Austria, or go to rotax-aircraft-engines.com 

for a copy of this service information. 

Material Incorporated by Reference 

(o) None. 

Issued in Burlington, Massachusetts, on 

September 24, 2010. 

Francis A. Favara, 

Manager, Engine and Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–24629 Filed 10–1–10; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 243 

[Release Nos. 33–9146; 34–63003; IC– 

29448; File No. S7–23–10] 

Removal From Regulation FD of the 

Exemption for Credit Rating Agencies 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: This amendment implements 

Section 939B of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act of 2010, which requires that the 

Securities and Exchange Commission 

amend Regulation FD to remove the 

specific exemption from the rule for 

disclosures made to nationally 

recognized statistical rating 

organizations and credit rating agencies 

for the purpose of determining or 

monitoring credit ratings. 

DATES: Effective Date: October 4, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Steven G. Hearne, Special Counsel in 

the Office of Rulemaking, Division of 

Corporation Finance, at (202) 551–3430, 

100 F Street, NE., Washington, DC 

20549. 

SUPPLEMENTARY INFORMATION: The 

Commission is deleting Rule 

100(b)(2)(iii) 1 under Regulation FD.2

I. Overview of the Amendment 

Regulation FD provides that when an 

issuer, or person acting on its behalf, 

discloses material nonpublic 

information to certain enumerated 

persons (in general, securities market 

professionals and holders of the issuer’s 

securities who may trade on the basis of 

the information), it must make public 

disclosure of that information.3 Section 

939B of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 

2010 (the ‘‘Act’’) requires the 

Commission to ‘‘revise Regulation FD 

(17 CFR 243.100) to remove from such 

regulation the exemption for entities 

whose primary business is the issuance 

of credit ratings (17 CFR 

243.100(b)(2)(iii))’’ within 90 days after 

the date of enactment.4 The effective 

date of the legislation is July 21, 2010 

and our revised rule will be effective for 

disclosure made on or after October 4, 

2010. 

II. Discussion of the Amendment 

As required by the Act, we are 

amending Regulation FD to remove the 

specific exemption provided to 

nationally recognized statistical rating 

organizations and credit rating agencies 

for disclosure made to them for the 

purpose of determining or monitoring a 

credit rating. To effectuate this change, 

we are removing Rule 100(b)(2)(iii) of 

Regulation FD. Due to the removal of 

Rule 100(b)(2)(iii), we are re-designating 

Rule 100(b)(2)(iv) as Rule 100(b)(2)(iii). 

Regulation FD is designed to address 

the problem of selective disclosure 

made to those who would reasonably be 

expected to trade securities on the basis 

of the information or provide others 

with advice about securities trading.5

Under Regulation FD, the timing of the 

required public disclosure of material 

nonpublic information that is provided 

by an issuer, or persons acting on its 

behalf, to certain enumerated persons 

depends on whether the selective 

disclosure was intentional. For an 

intentional selective disclosure, the 

issuer must make public disclosure 

simultaneously. In other circumstances, 

the issuer must make public disclosure 

promptly. Under the regulation, the 

required public disclosure may be made 

by filing or furnishing a Form 8–K,6 or 

by another method or combination of 

methods that is reasonably designed to 

provide broad, non-exclusionary 

distribution of the information to the 

public.7

Under Rule 100(b)(2)(iii) of 

Regulation FD, the issuer or person 

acting on the issuer’s behalf need not 

make the public disclosure if the 

disclosure of material nonpublic 

information is made to a credit rating 

agency that makes its credit ratings 

publicly available, or is made pursuant 

to Rule 17g–5(a)(3) 8 to a nationally 

recognized statistical rating 

organization. As required by Section 

939B of the Act, we are removing the 

exemption specifically available to these 

entities under Regulation FD.9

III. Procedural and Other Matters 

The Administrative Procedure Act 

(‘‘APA’’) generally requires an agency to 

publish notice of a proposed rulemaking 

in the Federal Register.10 This 

requirement does not apply, however, if 

the agency ‘‘for good cause finds * * * 

that notice and public procedure 

thereon are impracticable, unnecessary, 

or contrary to the public interest.’’ 11 The 

revision to Regulation FD that the 

Commission is adopting is required by 

Section 939B of the Act by the 

legislatively required date. Unless the 

rule and form amendments become 

effective by that date, issuers may be 

confused regarding their disclosure and 

reporting obligations. The Commission 

is required by statute to remove the 

specific exemption for disclosure 

provided to nationally recognized 

statistical rating organizations and 

credit rating agencies. Because this 

revision is required by Congress, it does 

not involve the exercise of Commission 

discretion or policy judgments. For 

these reasons, the Commission finds 

that good cause exists to dispense with 

a public notice and comment period for 

these amendments because notice and 

comment would be unnecessary, 

impracticable and contrary to the public 

interest.12


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