Federal Register / Vol. 65, No. 227 / Friday, November 24, 2000 / Proposed Rules 70533

(j) Stored value products. Stored value

products are alternate media to currency

in which you transfer monetary value to

the product and create a medium of

exchange for your members’ use.

Examples of stored value products

include stored value cards, public

transportation tickets, event and

attraction tickets, gift certificates,

prepaid phone cards, postage stamps,

electronic benefits transfer script, and

similar media.

(k) Trustee or custodial services.

Trustee or custodial services are

services in which you are authorized to

act under any written trust instrument

or custodial agreement created or

organized in the United States and

forming part of a pension or profitsharing plan, as authorized under the

Internal Revenue Code. These services

may include acting as a trustee or

custodian for member retirement and

education accounts.

§ 721.4 How may a credit union apply to

engage in an activity that is not

preapproved as within a credit union’s

incidental powers?

(a) Application contents. To engage in

an activity that may be within an FCU’s

incidental powers but not fall within a

preapproved category listed in § 721.3,

you may submit an application by

certified mail, return receipt requested,

to the NCUA Board. Your application

must describe the activity, including

your proposed investment in the

activity and the financial and

operational impact of the activity on

you, your explanation, consistent with

the test provided in paragraph (c) of this

section, of why this activity is within

your incidental powers, your plan for

implementing the proposed activity, any

state licenses you must obtain to

conduct the activity, and any other

information necessary to describe the

proposed activity adequately. Before

you engage in the petition process you

should seek advisory opinions from

NCUA’s Office of General Counsel, as to

whether a proposed activity fits into one

of the authorized categories without

filing a petition to amend the regulation.

(b) Processing of application. Your

application must be filed with the

Secretary of the NCUA Board. NCUA

will review your application for

completeness and will notify you

whether additional information is

required or whether the activity

requested is permissible under one of

the categories listed in § 721.3. If the

activity falls within a category provided

in § 721.3, NCUA will notify you that

the activity is permissible and treat the

application as withdrawn. If the activity

does not fall within a category provided

in § 721.3, NCUA staff will consider

whether the proposed activity is legally

permissible. Upon a recommendation by

NCUA staff that the activity is within a

credit union’s incidental powers, the

NCUA Board may amend § 721.3 and

will request public comment on the

establishment of a new category of

activities within § 721.3. If the activity

proposed in your application fails to

meet the criteria established in

paragraph (c) of this section, NCUA will

notify you within a reasonable period of

time.

(c) Decision on application. In

determining whether an activity is

authorized as an appropriate exercise of

a federal credit union’s incidental

powers, the Board will consider:

(1) whether the activity is convenient

or useful in carrying out the mission or

business of credit unions consistent

with the Act;

(2) whether the activity is the

functional equivalent or logical

outgrowth of activities that are part of

the mission or business of credit unions;

and

(3) whether the activity involves risks

similar in nature to those already

assumed as part of the business of credit

unions.

§ 721.5 What limitations apply to a credit

union engaging in activities approved as

within a credit union’s incidental powers?

You must comply with any applicable

NCUA regulations, policies, and legal

opinions, as well as applicable state and

federal law, if an activity authorized

under this part is otherwise regulated or

conditioned.

§ 721.6 May a credit union derive income

from activities approved under this part?

You may earn income for those

activities determined to be incidental to

your business.

§ 721.7 What are the potential conflicts of

interest for officials and senior

management employees when credit unions

engage in activities approved under this

part?

(a) Conflicts. No senior management

employee, official, or their immediate

family member may receive any

compensation or benefit, directly or

indirectly, in connection with your

engagement in an activity authorized

under this part.

(b) Commissions. No employee, not

otherwise covered in paragraph (a) of

this section, may receive a commission,

fee, or other similar compensation that

is directly related to the sale of group

purchasing or insurance products to

your members, unless your board of

directors determines that a conflict of

interest does not exist and complies

with paragraph (d)(3) of this section

when appropriate.

(c) Business associates and immediate

family members. All transactions with

business associates or immediate family

members not specifically prohibited by

paragraph (a) of this section must be

conducted at arm’s length and in the

interest of the credit union.

(d) Permissible payments. This

section does not prohibit:

(1) Payment, by you, of salary to your

employees;

(2) Payment, by you, of an incentive

or bonus to an employee based on your

overall financial performance;

(3) Payment, by you, of an incentive

or bonus to an employee, other than a

senior management employee or paid

official, in connection with an activity

authorized by this part, provided that

your board of directors establishes

written policies and internal controls for

the incentive program and monitors

compliance with such policies and

controls at least annually.

(e) Definitions. For purposes of this

part, the following definitions apply.

(1) Senior management employee

means your chief executive officer

(typically, this individual holds the title

of President or Treasurer/Manager), any

assistant chief executive officers (e.g.

Assistant President, Vice President, or

Assistant Treasurer/Manager), and the

chief financial officer (Comptroller).

(2) Official means any member of your

board of directors, credit committee or

supervisory committee.

(3) Immediate family member means

a spouse or other family member living

in the same household.

[FR Doc. 00–29838 Filed 11–22–00; 8:45 am]

BILLING CODE 7535–01–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–NE–30–AD]

RIN 2120–AA64

Airworthiness Directives; General

Electric Company (GE) CF6–50

Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This amendment proposes the

adoption of a new airworthiness

directive (AD) that applies to GE CF6–

50 turbofan engines. This proposal

would require removal of old high

70534 Federal Register / Vol. 65, No. 227 / Friday, November 24, 2000 / Proposed Rules

pressure compressor (HPC) air ducts

and mating hardware and replacement

with newly designed air ducts and

reworked mating hardware. This

proposal is prompted by reports of an

uncontained low pressure turbine (LPT)

disk failure that resulted from an air

duct failure that caused a fan mid shaft

(FMS) separation. The actions specified

by the proposed AD are intended to

prevent HPC air duct failures that could

result in FMS failures, that in turn could

result in rejected takeoffs or

uncontained LPT events.

DATES: The FAA must receive comments

on this proposal by January 23, 2001.

ADDRESSES: Submit comments to Docket

No. 2000–NE–30–AD in one of the

following ways:

Mail comments to the Federal

Aviation Administration (FAA), Office

of the Regional Counsel, New England

Region, Attention: Rules Docket No.

2000–NE–30–AD, 12 New England

Executive Park, Burlington, MA 01803–

5299. You may also send a request for

a copy of the proposal or regulatory

evaluation from that address. If you

want us to acknowledge receipt of your

comments, you must include a selfaddressed, stamped postcard on which

the Docket No. is written. We will datestamp your postcard and mail it back to

you. OR

E-mail comments to 9-aneadcomment@faa.gov. You must include

Docket No. 2000–NE–30–AD in the

subject line.

You can get the service information

referenced in this proposal from General

Electric Company via Lockheed Martin

Technology Services, 10525 Chester

Road, Suite C, Cincinnati, Ohio 45215,

telephone: (513) 672–8400; fax: (513)

672–8422. You may examine the AD

docket (including any comments and

service information) at the FAA, New

England Region, Office of the Regional

Counsel, 12 New England Executive

Park, Burlington, MA between 8:00 a.m.

and 4:30 p.m., Monday through Friday,

except Federal holidays. You may also

examine the service information at the

Office of the Federal Register, 800

North Capitol Street, NW., suite 700,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Karen Curtis, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803–5299; telephone: (781) 238–7192,

fax: (781) 238–7199.

SUPPLEMENTARY INFORMATION:

Comments Invited

You are invited to participate in the

proposed rule making by submitting

written data, views, or arguments as you

may desire. Your communications

should identify the Rules Docket

number and be sent to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before we take action on the

proposed rule. The proposals contained

in this action 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 sent

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 action

must send a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 2000–NE–30–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRM’s

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, New England Region, Office of the

Regional Counsel, Attention: Rules

Docket No. 2000–NE–30–AD, 12 New

England Executive Park, Burlington, MA

01803-5299.

Discussion

The FAA was recently made aware of

a CF6–50 engine installed on a Boeing

747 airplane that experienced an

uncontained LPT disk failure caused by

an HPC air duct failure, which resulted

in a FMS separation. This was the first

documented air duct failure that has

resulted in a disk separation. There have

been 51 occurrences of air duct

cracking, six of which have resulted in

fan mid shaft (FMS) separation, and two

of which have resulted in partial

rupture of the HPC stage 14-bolted joint.

All six FMS separations have also

resulted in uncontained LPT blade

failures. Although air duct failures were

first documented in 1976, two

subsequent redesigns have failed to

correct the cracking problem.

The FAA has reviewed General

Electric Aircraft Engines Service

Bulletin (SB) CF6–50 72–1200, dated

May 8, 2000; General Electric Aircraft

Engines Alert Service Bulletin (ASB)

CF6–50 72–A1200, Revision 1, dated

July 20, 2000; and Revision 2, dated

November 2, 2000 which describe

procedures for removal of the HPC air

duct assembly part number

99128M36G03/G04/G05/G06/G08/G20/

G21 or 1644M16G03 and mating

hardware (rear shaft or 11–14 spool

shaft) and replace with the new design

air duct and reworked mating hardware.

Proposed Actions

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 removal of old HPC air ducts

and mating hardware and replacement

with newly designed air ducts and

reworked mating hardware. This

proposal is prompted by reports of an

uncontained LPT disk failure that

resulted from an air duct failure that

caused a FMS separation. The FAA is

proposing this AD to prevent HPC air

duct failures that could result in FMS

failures that in turn could result in

rejected takeoffs or uncontained LPT

events.

Economic Impact

There are about 1730 engines of the

affected design in the worldwide fleet.

The FAA estimates that 469 engines

installed on aircraft of U.S. registry

would be affected by this proposed AD,

that it would take about 70 work hours

per engine to disassemble and

reassemble the HPC module, that it

would take 19 hours to rework the

mating hardware and that the average

labor rate is $60 per work hour. Each

new air duct assembly will cost $32,985.

Based on these figures, the total

proposed AD cost impact on U.S.

operators is estimated to be $17,974,425.

Regulatory Impact

This proposal does not have

federalism implications, as defined in

Executive Order 13132, because it

would 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.

Accordingly, the FAA has not consulted

with state authorities prior to

publication of this proposal.

For the reasons discussed above, I

certify that this proposed regulation (1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Federal Register / Vol. 65, No. 227 / Friday, November 24, 2000 / Proposed Rules 70535

Flexibility Act. A copy of the draft

regulatory evaluation prepared for this

action is contained in the Rules Docket.

A copy of it may be obtained by

contacting 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.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend 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 the following new airworthiness

directive:

General Electric Company: Docket No.

2000–NE–30–AD.

Applicability: This airworthiness directive

(AD) is applicable to CF6–50 turbofan

engines with high pressure compressor (HPC)

rotor air duct assemblies P/N’s 9128M36G03/

G04/G05/G06/G08/G20/G21, or 1644M16G03

installed. These engines are installed on but

not limited to Boeing 747, Airbus A300, and

McDonnell Douglas DC10 airplanes.

Note 1: This AD applies to each engine

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

engines 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 (c) 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 HPC air duct failures that could

result in fan mid shaft (FMS) failures and

uncontained LPT events, accomplish the

following:

(a) At next HPC rotor exposure, remove the

HPC air duct assembly part number

99128M36G03/G04/G05/G06/G08/G20/G21

or 1644M16G03 and mating hardware (rear

shaft or 11–14 spool shaft) and replace with

the new design air duct and reworked mating

hardware in accordance with the

accomplishment instructions of General

Electric Aircraft Engines Service Bulletin

(SB) CF6–50 72–1200, dated May 8, 2000;

General Electric Aircraft Engines Alert

Service Bulletin (ASB) CF6–50 72–A1200,

Revision 1, dated July 20, 2000; or General

Electric Aircraft Engines Alert Service

Bulletin (ASB) CF6–50 72–A1200, Revision

2, dated November 2, 2000.

(b) For the purposes of this proposal, HPC

rotor exposure is defined as disassembly of

the HPC stage 2 disk flange or removal of the

HPC stage 1 disk.

Alternative Methods of Compliance

(c) 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, Engine

Certification Office (ECO). Operators shall

submit their request through an appropriate

Federal Aviation Administration (FAA)

Principal Maintenance Inspector, who may

add comments and then send it to the

Manager, ECO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this airworthiness directive,

if any, may be obtained from the ECO.

Issued in Burlington, Massachusetts,

November 15, 2000.

Robert Mann,

Acting Manager, Engine and Propeller

Directorate, Aircraft Certification Service.

[FR Doc. 00–29940 Filed 11–22–00; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–CE–31–AD]

RIN 2120–AA64

Airworthiness Directives; Aerostar

Aircraft Corporation Models PA–60–

600 (Aerostar 600), PA–60–601

(Aerostar 601), PA–60–601P (Aerostar

601P), PA–60–602P (Aerostar 602P),

and PA–60–700P (Aerostar 700P)

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to all Aerostar

Aircraft Corporation (Aerostar) Models

PA–60-600, PA–60–601, PA–60–601P,

PA–60–602P and PA–60–700P

airplanes. The proposed AD would

require you to replace both of the

existing main landing gear lower side

brace assemblies with parts of improved

design. The proposed AD is the result of

several reports of cracking of the main

landing gear lower side brace at the

upper bolt lug discovered on preflight

inspection. The actions specified by the

proposed AD are intended to correct

damage or cracks in the main landing

gear lower side brace at the upper bolt

lug where the upper and lower side

braces connect. This could result in

cracking and failure of the main landing

gear lower side brace. Such failure

could lead to loss of control of the

airplane.

DATES: The Federal Aviation

Administration (FAA) must receive any

comments on this rule by December 29,

2000.

ADDRESSES: Send comments in triplicate

to the Federal Aviation Administration

(FAA), Central Region, Office of the

Regional Counsel, Attention: Rules

Docket No. 2000–CE–31–AD, 901

Locust, Room 506, Kansas City,

Missouri 64106. You may look at

comments at this location between 8

a.m. and 4 p.m., Monday through

Friday, except holidays.

You may get the service information

referenced in the proposed AD from

Aerostar Aircraft Corporation, 10555

Airport Drive, Hayden Lake, ID 83835;

telephone: (208) 762–0338; facsimile:

(208) 762–8349. You may read this

information at the Rules Docket at the

address above.

FOR FURTHER INFORMATION CONTACT:

Richard Simonson, Aerospace Engineer,

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW, Renton,

Washington 98055; telephone: (425)

227–2597; facsimile: (425) 227–1181.

SUPPLEMENTARY INFORMATION:

Comments Invited

How do I comment on this proposed

AD?

We invite your comments on the

proposed rule. You may send whatever

written data, views, or arguments you

choose. You need to include the rule’s

docket number and send your

comments in triplicate to the address

mentioned under the caption

ADDRESSES. We will consider all

comments received by the closing date

mentioned above, before acting on the

proposed rule. We may change the

proposals contained in this notice

because of the comments received.

Are there any specific portions of the

proposed AD I should pay attention to?

The FAA specifically invites

comments on the overall regulatory,

economic, environmental, and energy

aspects of the proposed rule that might

call for a need to change the proposed

rule. You may examine all comments