March 13, 2013 

Docket Clerk 

SHELBY FINANCIAL 

CORPORATION 

Office of the General Counsel 

Department of Transportation 

Washington, DC 20590 

Re: Final Rule Regarding notice providing guidance on the review and approval of public 

charter prospectuses 77 Fed. Reg. 69,692 (2012) 

To whom it may concern: 

Shelby Financial Corporatkm, a Pennsylvania corporation,. whose customers incl'..: de 

charter operators and air carriers, is submitting this petition for rulemaking in regards to 

modifying the definition of "bank" in Part 380.34 Security and Depository Agreemeilts. 

As used in this section, the term 11bank" means a bank insured by the Federal Deposit 

Insurance Corporation (FDIC) authorized to sign Public Charter Depository Agreements 

and related OST Forms 4532 and 4533. 

We believe a gap in the definition exists for the provtston of depository services 

described in the Public Charter Depository Agreement with (a) no distinction between 

the holding of funds in an FDIC insured institution; and (b) the associated recordkeeping, 

sub-accounting, reporting, assurances and compliance activities by Escrow Agents acting 

on behalf of the "bank" as an agent, administrator or escrow manager to ensure 

compliance with the regulations. 

As the Office is aware, the number of financial institutions actively involved in charter 

industry is very limited; some banks are only providing such service for one or two large 

deposit customers as a courtesy service. Others believe that the Part 380 compliance 

requirements fall outside the scope of the bank's core business model and I or systems 

and control capabilities to address the recordkeeping and sub-accounting requirements 

pursuant to the regulations. 

In our opinion, a modification in the definition to allow Escrow Agent(s) with the 

requisite skills and experience and FDIC banking partnership to serve in the capacity 

of the "bank'' while ensuring the said funds are maintained at an FDIC insured 

institution as required under the regulations. This extension of the depository service 

will provide a higher level to safeguard passenger funds, increase the level of financial 

transparency for passengers, charter operators, air carriers and the respective 

regulatory bodies. 

5 Great Valley Parkway, Suite 110 Malvern, Pennsylvania 19355 
SHELBY FINANCIAL 

CORPORATION 

The change of allowing a "bank" or an "Escrow Agent in conjunction with a bank" to sign 

the Public Charter Depository agreement and OST Forms 4532 and 4533 would permit 

an Escrow Agent to partner with additional FDIC insured financial institutions unfamiliar 

with the charter industry. In addition, banks that have been in the past, sensitive to the 

perceived risk and related exposure of serving in the capacity of a depository institution 

as defined under the regulations would be able to partner with an Escrow Agent to 

provide a higher level of service. The risks to the banks are due in part to limitations 

regarding information technology capabilities and escrow accounting and reporting 

expertise. 

Thank you for your consideration of this petition. 

By: DavidJ. 

Its: President 

5 Great Valley Parkway, Suite 110 Malvern, Pennsylvania 19355