31734 Federal Register / Vol. 75, No. 107 / Friday, June 4, 2010 / Proposed Rules 

of this AD. A review of airplane maintenance 

records is acceptable in lieu of this 

inspection if the symbol ‘‘24–7’’ mark can be 

conclusively determined from that review. 

(1) If the symbol ‘‘24–7’’ is marked on the 

RAT identification plate, the balance washer 

screws have already been replaced and no 

further action is required by this AD, except 

for paragraph (j) of this AD. 

(2) If the symbol ‘‘24–7’’ is not marked on 

the RAT identification plate, before further 

flight, replace all balance washer screws with 

new balance washer screws, part number 

MS24667–14, and mark the RAT 

identification plate with the symbol ‘‘24–7,’’ 

in accordance with the Accomplishment 

Instructions of the applicable service bulletin 

listed in Table 1 of this AD. 

(j) For all airplanes: As of the effective date 

of this AD, no person may install on any 

airplane a replacement or spare RAT (P/N 

GL456–1101–7; Hamilton Sundstrand P/Ns 

in the 762826 series) having one of the S/Ns 

listed in paragraph 1.A. of the applicable 

service bulletin listed in Table 1 of this AD 

unless the balance washer screws have 

already been replaced and the symbol ‘‘24– 

7’’ is marked on the RAT identification plate. 

FAA AD Differences 

Note 1: This AD differs from the MCAI 

and/or service information as follows: 

Although Canadian Airworthiness 

Directive CF–2010–01, dated January 18, 

2010, recommends accomplishing the visual 

inspection prior to the next scheduled inflight operational test of the RAT, we have 

determined that interval would not address 

the identified unsafe condition soon enough 

to ensure an adequate level of safety for the 

affected fleet in light of the degree of urgency 

associated with the subject unsafe condition. 

This difference has been coordinated with 

Transport Canada Civil Aviation (TCCA). 

Other FAA AD Provisions 

(k) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, New York Aircraft 

Certification Office (ACO), ANE–170, FAA, 

has the authority to approve AMOCs for this 

AD, if requested using the procedures found 

in 14 CFR 39.19. Send information to ATTN: 

Program Manager, Continuing Operational 

Safety, FAA, New York ACO, 1600 Stewart 

Avenue, Suite 410, Westbury, New York 

11590; telephone 516–228–7300; fax 516– 

794–5531. Before using any approved AMOC 

on any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(l) Refer to MCAI Transport Canada Civil 

Aviation (TCCA) Airworthiness Directive 

CF–2010–01, dated January 18, 2010; and 

Bombardier Service Bulletins 700–24–075, 

Revision 01, dated July 15, 2009, and 700– 

1A11–24–014, Revision 01, dated July 15, 

2009; for related information. 

Issued in Renton, Washington, on May 28, 

2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–13419 Filed 6–3–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0260; Directorate 

Identifier 2010–CE–015–AD] 

RIN 2120–AA64 

Airworthiness Directives; GROB– 

WERKE (Type Certificate Previously 

Held by BURKHART GROB Luft- und 

Raumfahrt) Models G115C, G115D and 

G115D2 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Supplemental notice of 

proposed rulemaking (NPRM); 

reopening of the comment period. 

SUMMARY: We are revising an earlier 

NPRM for the products listed above. 

This proposed AD results from 

mandatory continuing airworthiness 

information (MCAI) originated by an 

aviation authority of another country to 

identify and correct an unsafe condition 

on an aviation product. The MCAI 

describes the unsafe condition as: 

The manufacturer has received a report of 

a failed canopy jettison test, during a regular 

maintenance check. The investigation 

revealed that a cable shroud of the jettison 

system protruded the canopy structure, 

which probably caused the malfunction. 

Inability to jettison the canopy in flight 

would prevent evacuation of the aeroplane in 

case of need. 

The proposed AD would require actions 

that are intended to address the unsafe 

condition described in the MCAI. 

DATES: We must receive comments on 

this proposed AD by July 19, 2010. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Gregory Davison, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4130; fax: (816) 329–4090. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2010–0260; Directorate Identifier 

2010–CE–015–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

We proposed to amend 14 CFR part 

39 with an earlier NPRM for the 


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Federal Register / Vol. 75, No. 107 / Friday, June 4, 2010 / Proposed Rules 31735 

specified products, which was 

published in the Federal Register on 

March 16, 2010 (75 FR 12466). That 

earlier NPRM proposed to require 

actions intended to address the unsafe 

condition for the products listed above. 

Since that NPRM was issued, we have 

determined that additional actions are 

necessary in order to eliminate any 

confusion and to ensure pilot awareness 

of the unsafe condition. Specifically, we 

are adding a placard requirement 

prohibiting aerobatic flight before 

accomplishing the actions of the 

proposed AD. Since these actions 

impose an additional burden over that 

proposed in the NPRM, we are 

reopening the comment period to allow 

the public the chance to comment on 

these additional actions. 

Relevant Service Information 

Grob Aircraft AG has issued Service 

Bulletin No. MSB1078–164, dated July 

21, 2009. The actions described in this 

service information are intended to 

correct the unsafe condition identified 

in the MCAI. 

FAA’s Determination and Requirements 

of the Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Certain changes described above 

expand the scope of the earlier NPRM. 

As a result, we have determined that it 

is necessary to reopen the comment 

period to provide additional 

opportunity for the public to comment 

on the proposed AD. 

Differences Between This Proposed AD 

and the MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have proposed 

different actions in this AD from those 

in the MCAI in order to follow FAA 

policies. Any such differences are 

highlighted in a NOTE within the 

proposed AD. 

Costs of Compliance 

We estimate that this AD will affect 3 

products of U.S. registry. We also 

estimate that it would take about 3 

work-hours per product to comply with 

the basic requirements of this proposed 

AD. The average labor rate is $85 per 

work-hour. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 

operators to be $765 or $255 per 

product. 

In addition, we estimate that any 

necessary follow-on actions would take 

about 3 work-hours and require parts 

costing $68, for a cost of $323 per 

product. We have no way of 

determining the number of products 

that may need these actions. 

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 determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD 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. 

For the reasons discussed above, I 

certify 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. 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 regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 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 adding 

the following new AD: 

GROB–WERKE (Type Certificate Previously 

Held by BURKHART GROB Luft- und 

Raumfahrt): Docket No. FAA–2010– 

0260; Directorate Identifier 2010–CE– 

015–AD. 

Comments Due Date 

(a) We must receive comments by July 19, 

2010. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Models G115C, 

G115D, and G115D2 airplanes, all serial 

numbers, certificated in any category. 

Subject 

(d) Air Transport Association of America 

(ATA) Code 52: Doors. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

The manufacturer has received a report of 

a failed canopy jettison test, during a regular 

maintenance check. The investigation 

revealed that a cable shroud of the jettison 

system protruded the canopy structure, 

which probably caused the malfunction. 

Inability to jettison the canopy in flight 

would prevent evacuation of the aeroplane in 

case of need. 

For the reason stated above, this AD 

mandates an additional one time canopy 

jettison test and repair if necessary. 

Actions and Compliance 

(f) Unless already done, do the following 

actions: 

(1) Before further flight after the effective 

date of this AD, fabricate a placard (using at 

least 1⁄8-inch letters) with the following 

words and install the placard on the 


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instrument panel within the pilot’s clear 

view: ‘‘AEROBATIC FLIGHT PROHIBITED.’’ 

(2) Before the next aerobatic flight after the 

effective date of this AD, do a canopy jettison 

test following Grob Aircraft AG Service 

Bulletin No. MSB1078–164, dated July 21, 

2009. 

(3) If the canopy jettison fails the test 

required in paragraph (f)(2) of this AD, before 

further aerobatic flight: 

(i) Contact Grob Aircraft AG, Customer 

Service, 86874 Tussenhausen-Mattsies, 

Germany, telephone: + 49 (0) 8268–998–105; 

fax; + 49 (0) 8268–998–200; email: 

productsupport@grob-aircraft.com, for an 

FAA-approved repair scheme and 

incorporate the repair scheme; or 

(ii) Replace the canopy handle following 

Grob Aircraft AG Service Bulletin No. 

MSB1078–164, dated July 21, 2009. 

(4) Within 7 days after doing the canopy 

jettison test required in paragraph (f)(2) of 

this AD or within 7 days after the effective 

date of this AD, whichever occurs later, 

submit a report of the test results using 

Appendix 1 of Grob Aircraft AG Service 

Bulletin No. MSB1078–164, dated July 21, 

2009, to Grob Aircraft AG at the address 

specified in paragraph (f)(3)(i) of this AD. 

(5) After the corrective actions specified in 

paragraphs (f)(3)(i) or (f)(3)(ii) are done or if 

the canopy jettison passed the test required 

in paragraph (f)(2) of this AD, before further 

flight, remove the placard that was installed 

in accordance with paragraph (f)(1) of this 

AD. 

FAA AD Differences 

Note: This AD differs from the MCAI and/ 

or service information as follows: The MCAI 

does not have a placard requirement. To 

eliminate any confusion and to ensure pilot 

awareness of the unsafe condition, we added 

a temporary placard requirement to this AD. 

Other FAA AD Provisions 

(g) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Greg Davison, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4130; fax: (816) 329– 

4090. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your appropriate principal inspector 

(PI) in the FAA Flight Standards District 

Office (FSDO), or lacking a PI, your local 

FSDO. 

(2) Airworthy Product: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer or other source, 

use these actions if they are FAA-approved. 

Corrective actions are considered FAAapproved if they are approved by the State 

of Design Authority (or their delegated 

agent). You are required to assure the product 

is airworthy before it is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et.seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(h) Refer to MCAI European Aviation 

Safety Agency (EASA) AD No. 2009–0279, 

dated December 23, 2009; and Grob Aircraft 

AG Service Bulletin No. MSB1078–164, 

dated July 21, 2009, for related information. 

Issued in Kansas City, Missouri, on May 

27, 2010. 

Steven W. Thompson, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–13422 Filed 6–3–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–106750–10] 

RIN 1545–BJ30 

Modifications of Debt Instruments 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document contains 

proposed regulations relating to the 

modification of debt instruments. The 

regulations clarify the extent to which 

the deterioration in the financial 

condition of the issuer is taken into 

account to determine whether a 

modified debt instrument will be 

recharacterized as an instrument or 

property right that is not debt. The 

regulations provide needed guidance to 

issuers and holders of debt instruments. 

This document also provides notice of 

a public hearing on these proposed 

regulations. 

DATES: Written or electronic comments 

must be received by August 3, 2010. 

Outlines of topics to be discussed at the 

public hearing scheduled for 

Wednesday, September 8, 2010, at 10 

a.m. must be received by Wednesday, 

August 11, 2010. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–106750–10), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–106750– 

10), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC, or sent 

electronically, via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS and REG– 

106750–10). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Diana Imholtz, at (202) 622–3930; 

concerning submission of comments, 

the hearing, and/or to be placed on the 

building access list to attend the 

hearing, 

Richard.A.Hurst@irscounsel.treas.gov, 

at (202) 622–7180 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 1.1001–3 provides rules for 

determining when a modification of a 

debt instrument results in an exchange 

for purposes of § 1.1001–1(a). In general, 

§ 1.1001–3 defines a modification and 

provides that a modification that is 

significant results in a deemed exchange 

of the original debt instrument for a 

modified debt instrument. Section 

1.1001–3 also addresses alterations to 

the terms of a debt instrument that 

result in a modified instrument that is 

not debt. Section 1.1001–3(c)(2)(ii) 

generally provides that a modification to 

a debt instrument occurs if an alteration 

changes the instrument to an instrument 

or property right that is not debt for 

Federal income tax purposes, even if the 

alteration occurs by operation of the 

original terms of the debt instrument. 

Section 1.1001–3(e)(5)(i) generally 

provides that a modification of a debt 

instrument that results in an instrument 

or property right that is not debt for 

Federal income tax purposes is a 

significant modification. For purposes 

of making the determination prescribed 

by § 1.1001–3(e)(5)(i), the regulations 

state that any deterioration in the 

financial condition of the issuer 

between the issue date of the 

unmodified debt instrument and the 

date of modification (as it relates to the 

issuer’s obligation to repay the debt 

instrument) is not taken into account, 

unless there is a substitution of a new 

obligor or the addition or deletion of a 

co-obligor. 

In response to the proposed 

regulations published on December 2, 

1992 (57 FR 57034), taxpayers were 

concerned that taking into account the 

creditworthiness of a financially 

troubled issuer when a debt instrument 

is modified would impose a significant 

barrier to restructuring distressed debt 

instruments. The rule in § 1.1001– 

3(e)(5)(i) to disregard the financial 

condition of the issuer was intended to 

address this concern. The preamble to 

the existing regulations published on 


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