58648 Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations

submitting such written data, views, or

arguments as they may desire.

Communications should identify the

Rules Docket number and be submitted

in triplicate to the address specified

under the caption ADDRESSES. All

communications received on or before

the closing date for comments will be

considered, and this rule may be

amended in light of the comments

received. Factual information that

supports the commenter’s ideas and

suggestions is extremely helpful in

evaluating the effectiveness of the AD

action and determining whether

additional rulemaking action would be

needed.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the rule that might suggest a need to

modify the 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 that

summarizes each FAA-public contact

concerned with the substance of this AD

will be filed in the Rules Docket.

Commenters wishing the FAA to

acknowledge receipt of their mailed

comments submitted in response to this

rule must submit a self-addressed,

stamped postcard on which the

following statement is made:

‘‘Comments to Docket No. 2000–SW–

21–AD.’’ The postcard will be date

stamped and returned to the

commenter.

The regulations adopted herein 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. Therefore, it is

determined that this final rule does not

have federalism implications under

Executive Order 13132.

The FAA has determined that this

regulation is an emergency regulation

that must be issued immediately to

correct an unsafe condition in aircraft,

and that it is not a ‘‘significant

regulatory action’’ under Executive

Order 12866. It has been determined

further that this action involves an

emergency regulation under DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979). If it is

determined that this emergency

regulation otherwise would be

significant under DOT Regulatory

Policies and Procedures, a final

regulatory evaluation will be prepared

and placed in the Rules Docket. A copy

of it, if filed, may be obtained from the

Rules Docket at the location provided

under the caption ADDRESSES.

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:

2000—20–06 Agusta S.p.A.: Amendment 39–

11917. Docket No. 2000–SW–21–AD.

Applicability: Model A109K2 with serial

number (S/N) up to and including 10036 and

Model A109E with S/N up to and including

11069, excluding A109E helicopters with

serial number 11049, 11055, 11056, or 11067,

certificated in any category.

Note 1: This AD applies to each helicopter

identified in the preceding applicability

provision, regardless of whether it has been

otherwise modified, altered, or repaired in

the area subject to the requirements of this

AD. For helicopters that have been modified,

altered, or repaired so that the performance

of the requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (d) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent a crack in a main transmission

aft support fitting (aft support fitting) that

could result in excessive displacement of the

main gearbox, failure of an engine to main

gearbox drive shaft, loss of power to the main

rotor, and a subsequent forced landing,

accomplish the following:

(a) Remove each main transmission aft

support fitting, part number (P/N) 109–0325–

08–01 and replace it with an airworthy

support fitting, P/N 109–0325–08–109, as

follows:

(1) For an aft support fitting, P/N 109–

0325–08–01, with less than 140 hours timein-service (TIS), replace it at or before 150

hours TIS.

(2) For an aft support fitting, P/N 109–

0325–08–01, with 140 or more hours TIS,

replace it within 10 hours TIS.

Note 2: Agusta Alert Bollettino Tecnico

(Technical Bulletin) No. 109K–25 and No.

109EP–7, both dated March 3, 2000, pertain

to the subject of this AD.

(b) This AD revises the Airworthiness

Limitations Section of the applicable

maintenance manual by establishing a life

limit of 150 hours TIS for the aft support

fitting, P/N 109–0325–08–01.

(c) Replacing all aft support fittings, P/N

109–0325–08–01, with support fittings, P/N

109–0325–08–109, constitutes terminating

action for the requirements of this AD.

(d) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Regulations

Group, Rotorcraft Directorate, FAA.

Operators shall submit their requests through

an FAA Principal Maintenance Inspector,

who may concur or comment and then send

it to the Manager, Regulations Group.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Regulations Group.

(e) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the helicopter

to a location where the requirements of this

AD can be accomplished.

(f) This amendment becomes effective on

October 17, 2000.

Note 4: The subject of this AD is addressed

in Ente Nazionale per l’Aviazione Civile

(Italy) AD No. 2000–128, dated March 6,

2000.

Issued in Fort Worth, Texas, on September

25, 2000.

Eric Bries,

Acting Manager, Rotorcraft Directorate,

Aircraft Certification Service.

[FR Doc. 00–25151 Filed 9–29–00; 8:45 am]

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 4

RIN 3038–AB60

Profile Documents for Commodity

Pools

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rules.

SUMMARY: The Commodity Futures

Trading Commission (‘‘CFTC’’ or

‘‘Commission’’) is adopting

amendments to its rules to permit

commodity pool operators (‘‘CPOs’’) to

provide a summary profile document to

prospective commodity pool

participants prior to giving them the

pool’s complete disclosure document.

Certain technical changes to rules

relating to CPOs and commodity trading

advisors (‘‘CTAs’’) are also being

adopted.

EFFECTIVE DATE: November 1, 2000.

Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations 58649

1 65 FR 46122 (July 27, 2000).

2 47 FR 18618–18621 (April 30, 1982).

3 47 FR 18619–18620.

4 47 FR 18618–18620.

5See 60 FR 38146, 38181 (July 25, 1995) and 48

FR 35248 (August 3, 1983).

6Pub. L. 104–13 (May 13, 1995).

7 44 U.S.C. 3504(h).

FOR FURTHER INFORMATION CONTACT:

Eileen R. Chotiner, Futures Trading

Specialist, (202) 418–5467, electronic

mail: ‘‘echotiner@cftc.gov,’’ Division of

Trading and Markets, Commodity

Futures Trading Commission, 1155 21st

Street, NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On July

27, 2000, the Commission proposed to

amend its rules to allow CPOs to use a

profile document to solicit prospective

commodity pool participants prior to

providing them with the pool’s

Disclosure Document.1 The Commission

also proposed amendments to

Commission Rule 4.26 to establish

procedures for the use, amendment and

filing of profile documents that are

parallel to those applicable to disclosure

documents. The proposed rule changes

are intended to accommodate National

Futures Association’s (‘‘NFA’’) proposed

Compliance Rule 2–35(d). In addition,

certain technical amendments related to

filings by CPOs and commodity trading

advisors (‘‘CTAs’’) were proposed.

The 30-day comment period expired

on August 28, 2000. The Commission

received one comment letter, from NFA,

which supported the proposed rule

changes. Accordingly, the Commission

has determined to adopt the changes to

Rules 4.2, 4.21, 4.26 and 4.36,

essentially as proposed.

Related Matters

A. Regulatory Flexibility Act

The Regulatory Flexibility Act

(‘‘RFA’’), 5 U.S.C. 601–611 (1994),

requires that agencies, in proposing

rules, consider the impact of those rules

on small businesses. The Commission

has previously established certain

definitions of ‘‘small entities’’ to be used

by the Commission in evaluating the

impact of its rules on such entities in

accordance with the RFA.2 The

Commission previously has determined

that registered CPOs are not small

entities for the purpose of the RFA.3

With respect to CTAs, the Commission

has stated that it would evaluate within

the context of a particular rule proposal

which all or some affected CTAs would

be considered to be small entities and,

if so, the economic impact on them of

any rule.4 In this regard, the

Commission notes that the sole effect on

CTAs of the rule revisions adopted

herein is to reduce the filing

requirement for disclosure documents.

The Commission has previously

determined that the disclosure

requirements governing this category of

registrant will not have a significant

economic impact on a substantial

number of small entities.5 Therefore, the

Chairman, on behalf of the Commission,

hereby certifies, pursuant to 5 U.S.C.

605(b), that these regulations will not

have a significant economic impact on

a substantial number of small entities.

B. Paperwork Reduction Act

This rule (Sections 4.31 and 4.33)

contains information collection

requirements. As required by the

Paperwork Reduction Act of 1995,6 the

Commission has submitted a copy of

this rule to the Office of Management

and Budget (OMB) for its review.7 In

response to the Commission’s invitation

in the proposed rulemaking to comment

on any potential paperwork burden

associated with this regulation, no

comments were received.

List of Subjects in 17 CFR Part 4

Brokers, Commodity futures,

Commodity pool operators, Commodity

trading advisors.

For the reasons stated in the

preamble, the Commission amends 17

CFR Part 4 as follows:

PART 4—COMMODITY POOL

OPERATORS AND COMMODITY

TRADING ADVISORS

1. The authority citation for Part 4

continues to read as follows: Authority:

7 U.S.C. 1a, 2, 4, 6b, 6c, 6l, 6m, 6n, 6o,

12a and 23.

2. Section 4.2 is amended by revising

paragraph (a) to read as follows:

§ 4.2 Requirements as to filing.

(a) All material filed with the

Commission under this part 4 must be

filed with the Commission at its

Washington, DC office (Att: Managed

Funds Branch, Division of Trading and

Markets, CFTC, Three Lafayette Centre,

1155 21st Street, NW., Washington, DC

20581); Provided, however, that

Disclosure Documents, profile

documents, and amendments thereto

may be filed at the following electronic

mail address: ddoc-efile@cftc.gov.

* * * * *

3. Section 4.21 is amended by revising

paragraph (a) to read as follows:

§ 4.21 Required delivery of pool

Disclosure Document.

(a)(1) No commodity pool operator

registered or required to be registered

under the Act may, directly or

indirectly, solicit, accept or receive

funds, securities or other property from

a prospective participant in a pool that

it operates or intends to operate unless,

on or before the date it engages in that

activity, the commodity pool operator

delivers or causes to be delivered to the

prospective participant a Disclosure

Document for the pool containing the

information set forth in § 4.24.

(2) Notwithstanding the requirements

regarding solicitation specified in

paragraph (a)(1) of this section, a

commodity pool operator may provide

to a prospective participant either of the

following documents prior to delivery of

a Disclosure Document, subject to

compliance with rules promulgated by a

registered futures association pursuant

to section 17(j) of the Act:

(i) A profile document;

(ii) Where the prospective participant

is an accredited investor, as defined in

17 CFR 230.501(a), a notice of intended

offering and statement of the terms of

the intended offering.

* * * * *

4. Section 4.26 is amended by revising

paragraphs (a), (b) and (d) to read as

follows:

§ 4.26 Use, amendment and filing of

Disclosure Document.

(a)(1) Subject to paragraph (c) of this

section, all information contained in the

Disclosure Document and, where used,

profile document, must be current as of

the date of the Document; Provided,

however, that performance information

may be current as of a date not more

than three months prior to the date of

the Document.

(2) No commodity pool operator may

use a Disclosure Document or profile

document dated more than nine months

prior to the date of its use.

(b)(1) If the commodity pool operator

knows or should know that the

Disclosure Document or profile

document is materially inaccurate or

incomplete in any respect, it must

correct that defect and must distribute

the correction to:

(i) All existing pool participants

within 21 calendar days of the date

upon which the pool operator first

knows or has reason to know of the

defect; and

(ii) Each previously solicited

prospective pool participant prior to

accepting or receiving funds, securities

or other property from any such

prospective participant.

(2) The pool operator may furnish the

correction by any of the following

means:

(i) An amended Disclosure Document

or profile document;

58650 Federal Register / Vol. 65, No. 191 / Monday, October 2, 2000 / Rules and Regulations

(ii) With respect to a hard copy of the

Disclosure Document, a sticker affixed

to the Disclosure Document; or

(iii) Other similar means.

(3) The pool operator may not use the

Disclosure Document or profile

document until such correction has

been made.

* * * * *

(d) Except as provided by § 4.8:

(1) The commodity pool operator

must file with the Commission one copy

of the Disclosure Document and, where

used, profile document for each pool

that it operates or that it intends to

operate not less than 21 calendar days

prior to the date the pool operator first

intends to deliver such Document or

documents to a prospective participant

in the pool; and

(2) The commodity pool operator

must file with the Commission one copy

of the subsequent amendments to the

Disclosure Document and, where used,

profile document for each pool that it

operates or that it intends to operate

within 21 calendar days of the date

upon which the pool operator first

knows or has reason to know of the

defect requiring the amendment.

5. Section 4.36 is amended by revising

paragraph (d) to read as follows:

§ 4.36 Use, amendment and filing of

Disclosure Document.

* * * * *

(d)(1) The commodity trading advisor

must file with the Commission one copy

of the Disclosure Document for trading

program that it offers or that it intends

to offer not less than 21 calendar days

prior to the date the trading advisor first

intends to deliver the Document to a

prospective client in the trading

program; and

(2) The commodity trading advisor

must file with the Commission one copy

of the subsequent amendments to the

Disclosure Document for each trading

program that it offers or that it intends

to offer within 21 calendar days of the

date upon which the trading advisor

first knows or has reason to know of the

defect requiring the amendment.

Issued in Washington, DC, on September

25, 2000 by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 00–24984 Filed 9–29–00; 8:45 am]

BILLING CODE 6351–01–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8904]

RIN 1545–AX38

Treatment of Nonqualified Preferred

Stock and Other Preferred Stock in

Certain Exchanges and Distributions

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to nonqualified

preferred stock. The regulations address

the effective date of the definition of

nonqualified preferred stock and the

treatment of nonqualified preferred

stock and similar preferred stock

received by shareholders in certain

corporate reorganizations and

distributions. The regulations are

necessary to reflect changes to the law

concerning these types of preferred

stock that were made by the Taxpayer

Relief Act of 1997.

EFFECTIVE DATE: These regulations are

effective October 2, 2000.

FOR FURTHER INFORMATION CONTACT:

Richard E. Coss, (202) 622–7790 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background and Explanation of

Provisions

On January 26, 2000, the IRS and

Treasury published in the Federal

Register a notice of proposed

rulemaking (REG–105089–99, 2000–6

I.R.B. 580 [65 FR 4203]) relating to

nonqualified preferred stock (as defined

in section 351(g)(2) of the Internal

Revenue Code) (NQPS). The proposed

regulations address the effective date of

the definition of NQPS, and provide

rules exempting from treatment as

NQPS certain preferred stock received

by shareholders in corporate

reorganizations and distributions

subject to sections 354, 355, and 356.

No comments responding to the

notice of proposed rulemaking were

submitted, and no public hearing was

requested or held. However, one

commentator suggested that the rule in

the proposed regulations interpreting

section 351(g)(2)(C)(i)(II) (relating to

preferred stock transferred in

connection with the performance of

services) should be expanded to include

transactions subject to section 351.

The IRS and Treasury agree with this

suggestion. Accordingly, these final

regulations extend the exemption from

treatment as NQPS in § 1.356–7(c) to

preferred stock received by shareholders

in certain stock exchanges under section

351. The proposed regulations are

adopted as revised by this Treasury

decision.

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in

Executive Order 12866. Therefore, a

regulatory assessment is not required. It

has also been determined that section

553(b) of the Administrative Procedure

Act (5 U.S.C. chapter 5) does not apply

to these regulations and, because the

regulations do not impose a collection

of information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding these regulations was

submitted to the Chief Counsel for

Advocacy of the Small Business

Administration for comment on its

impact on small business.

Drafting Information

The principal author of these

regulations is Richard E. Coss of the

Office of Associate Chief Counsel

(Corporate). However, other personnel

from the IRS and Treasury participated

in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by adding the

following entries in numerical order to

read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Section 1.351–2 also issued under 26

U.S.C. 351(g)(4).

Section 1.354–1 also issued under 26

U.S.C. 351(g)(4).

Section 1.355–1 also issued under 26

U.S.C. 351(g)(4).

Section 1.356–7 also issued under 26

U.S.C. 351(g)(4). * * *

Section 1.1036–1 also issued under 26

U.S.C. 351(g)(4). * * *

Par. 2. Section 1.351–2 is amended by

adding paragraph (e) to read as follows:

§ 1.351–2 Receipt of property.

* * * * *

(e) See § 1.356–7(a) for the

applicability of the definition of