Live	Oak	Bank 1

Mr.	James	Williams Micah	Davis

Manager,	Flight	Standards	Service Marketing	Director

Unmanned	Aircraft	Systems	integration	Office Live	Oak	Bank

Federal	Aviation	Administration Wilmington,	NC	28403

800	Independence	Avenue,	SW 910.550.2255

Washington,	DC	20591 Micah.Davis@liveoakbank.com

U.S.	Department of	Transportation,	Docket	Operation

West	Building	Ground	Floor,	Room	w12-140

1200	New	Jersey	Avenue,	SE

Washington,	DC	20590

Request	for	exemption	from	multiple	regulatory	provisions	to allow	the	use	of	small	

unmanned	aerial	systems	controlled	by	employees of	Live	Oak	Bank marketing	to	assist	in	

the	safe	operation	of	aerial	video	production	showcasing projects	we	are	involved	with.

Dear	Mr.	Williams:

Live	Oak	Bank	respectfully	requests an	exemption	from	several	provisions	of	Title	14	of	the	

Code of	Federal	Regulations	(C.F.R.) to	permit	the	use	of	small-unmanned aerial	systems

(sUAS)	for	our	marketing	department	to	capture	images and	showcase	the	projects	we	are	

involved	with.	Accordingly,	the	grant	of	an	exemption	and	Reform	Act	of	2012	

(Modernization	Act),	that	safe	systems	be	permitted	in	the	national	airspace	prior	to	the	

issuance	of	final	regulations	governing	general	use	of	these	systems.	

Appendix	A provides	the	manufactures	information	regarding the	design,	aircraft	

performance,	and	fail-safe	features.	We	have	provided	manufacturer	information	related	to	

operating	limitations,	normal	and	emergency	procedures,	and	maintenance	and	inspection	

procedures.	

Granting	an	Exemption	will not	Adversely	Affect	Safety	

Live	Oak	Bank notes	that	there	is	no	applicable	standard	for	an	equivalency	determination.	

Some	have	argued	that	the	appropriate	standard	is	that	for	model	aircraft,	noting	that	their	

operations,	if	conducted	for	recreational	purposes,	would	fall	completely	within	the	

allowable	operations	for	model	aircraft.	We	believe	it	is	difficult	to	argue	that	there	is	

sufficient	correlation	between	model	operations	controlled	by	the	Academy	of	Model	

Aeronautics	and	the	ones	contemplated	by	Live	Oak	Bank.	At	the	same	time,	it	is	clear	that	

equivalency	cannot	be	established	for	traditional,	manned	civil	aircraft	because	the	design	

and	use	profiles	between	traditional	aircraft	and	sUAS	are	simply	too	different.	As	such,	we	

believe	it	makes	more	sense	to	focus	on	why	the	contemplated	operations	would	not	

adversely	affect	safety,	which	is	all	that	§11.81(e)	requires.	

Granting	an	exemption	will	not	adversely	affect	safety.	Live	Oak	Bank contemplates	

conducting	sUAS	operations	over	client	owned	or	controlled	land,	solely	during	daylight	

hours,	at	altitudes	well	below	that	which	would	pose	a	risk	to	other	aircraft.	In	general,	
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sUAS	operations	intend	to	be	conducted	in	areas	distant	from	both	congested	areas	and	

airports.	

The	operation	of	small	UASs,	weighing	less	than	7 lbs.,	conducted	in	the	strict	conditions	

outlined	above,	will	provide	an	equivalent	level	of	safety	supporting	the	grant	of	the	

exemptions	requested	herein,	including	333	Aircraft	Exemption	Status	exempting	the	

applicant	from	conventional	aircraft	requirements	and	allowing	commercial operations.	

These	lightweight	aircraft	operate	at	slow	speeds,	close	to	the	ground,	and	in	a	controlled	

environment	and,	as	a	result,	are	far	safer	than	conventional	operations	conducted	with	

turbine	helicopters	operating	in	close	proximity	to	the	ground	and	people.	

The	safety	of	those	on	the	ground	is	protected	by	the	fact	that	no	one	will	be	allowed	into	

the	area	without	the	permission	of	the	company.	Security	will	be	established	for	the	flight	

area	as	part	of	the	pre-flight control.	Each	individual	within	the	secure	area	will	be	briefed	

prior	to	flight	and	will	consent	to	being	in	the	area.	All	others	will	be	excluded	from	the	

area.	

Live	Oak	Bank	initially	intends	to	use	a	dedicated	staff	for	sUAS	operations.	All	operations

will	be	within	visual	line-of-sight	(i.e.,	no	more	than	approximately	0.5	miles	from	the	

manipulator	of	the	controls,	or	pilot	in	command	(PIC)).	Each	PIC	will	conduct	at	least	three	

take-offs	and	landings	with	the	sUAS	on	which	he	or	she	is	trained	every 90	days.	PIC’s	will	

establish	their	qualifications	thru	a	combination	of	aeronautical	knowledge,	UAS	

airmanship	skills,	and	verification	through	testing	of	flight	ability	before	flying	over	client	

locations.	Depending	on	the	type	of	operation,	additional	ground-based	visual	observers	

may	be	employed	as	well.	These	observers	will	be	within	constant	visual	line	of	sight	and	in	

constant	contact	with	the	PIC.	The	visual	observers	will	assist	the	PIC	in	avoiding	objects	

near	the	sUAS.	

There	are	no	standards	for	either	Private	or	Commercial	sUAS	pilot	certificates.	The	safe	

operation	and	control	of	the	UAS	as	described	in	this	application	does	not	depend	on	the	

type	of	FAA	license	held	by	the	PIC.	Given	the	restricted	and	controlled	airspace	within	

which	operations	will	take	place,	the	key	factors	needed	by	the	PIC	are	knowledge	of	the	

airspace	within	which	the	operation	will	take	place	and	how	that	airspace	fits	into	the	

National	Airspace	System	(NAS).	That	knowledge	can	be	and	is	gained	primarily	through	

ground school	and	not	through	flight	training	in	fixed	wing	or	rotor	aircraft,	nor	is	it	

dependent	on	the	acquisition	of	a	commercial	or	private	pilot’s	certificate.	Those	

certificates	demonstrate	knowledge	of	the	factors	and	skills	needed	for	the	safe	operation

of	those	types	of	aircraft	(fixed	wing	or	rotorcraft).	It	cannot	be	assumed	that	a	commercial	

pilot,	approved	to	operate	a	helicopter	or	fixed	wing	aircraft,	has	the	skill	or	ability	to	safely	

operate	a	small	unmanned aerial	vehicle,	operating	at	400 feet AGL	or	lower,	within	strictly	

controlled	pre-approved	airspace.	Besides	knowledge	of	airspace	regulations,	dexterity	in	

the	control	and	operation	of	the	sUAS	acquired	from	actual	operation	of	the	aircraft	is	the	

most	important	factor	in	establishing	an	equivalent	level	of	safety.	

If	the	PIC	has	acquired	the	necessary	knowledge	of	airspace	requirements,	the	relevant	

issues	are	(1)	where	the	aircraft	will	be	flown,	(2)	the	size	of	the	aircraft	relative	to	what	is	
Live	Oak	Bank 3

being	used	today	to	accomplish	the	same	mission,	and	(3)	what	precautions	will	be	taken	to	

ensure	the	safety	of	those	in	the	area	of	operation. We	propose	that	the	PIC	has	at	least	a	

Class	III	medical;	the	aircraft	be	operated	within	a	secure	environment;	and	that	no	one	be	

allowed	to	enter	the	secure	environment	unless	they	are	part	of	the	operation,	have	been	

fully	briefed	of	the	risks	prior	to	operation	of	the	sUAS,	and	have	consented	to	the	risks	

associated	with	being	in	the	operating	area.	Should	there	be	a	mishap,	the	sUAS	being	flown	

pose	significantly	less	of	a	threat	than	the	helicopters	and	fixed	wing	aircraft	now	being	

employed	because	they	are	a	fraction	of	the	size,	carry	no	flammable	fuel, do	not	carry	crew	

or	passengers,	and	pose	an	infinitesimal	risk	to	others.	This	is	in	stark	contrast	to	

conventional	aircraft	that	are	flown	to	the	site,	carry	explosive	fuel,	carry	passengers	and	

crew,	and	operate	in	a	much	larger	area.	

Minimum	requirements	for	the	PIC	include:

1. Have	read	and	fully	comprehended	the	drone	manual	which	the	PIC	will	be	

operating.	

2. Completed	5	successful	simulator	flights	on	the	DJI	Pilot	app	before	ever	operating	

the	Inspire	1	or	Phantom	2	outdoors.	

3. A	minimum	of	five	hours	flight	time	on	Beginner	Mode.

4. A	minimum	of	five hours	as	sUAS	pilot	with	the	make	and	model	of	sUAS	to	be	

utilized	for	operations	under	the	exemption	and	3	take	offs	and	landings	in	the	

preceding	90	days.

Live	Oak	Bank intends	to	use	commercially	available sUAS. These	sUAS	systems	will	be	

tested	for	quality	&	safety	at	our	headquarters	test	facility	before	being	deployed	in	the	

field.	The	sUAS	is	less	than	7	lbs.	fully	loaded,	carries	neither	a	pilot	nor	passenger,	and	

operates	exclusively	within	a	secured	area.	 We	have	a	routine	maintenance	schedule	to	

verify	that	the	sUAS	will	remain	in	safe	and	operational	condition.	
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Live	Oak	Bank	Operations	&	Procedures	Overview

Technology	Considerations:	

Best-in-class,	tried	and	proven	technologies	that	are	in	advanced	iterations.	Software	from	

highly	reputable	industry	partners	will	include	features:

1. Auto	descent	(landing)	if	communication	signal	were	to	be	severed.	If	the	sUAS	loses	

communications,	the	sUAS	will	have	capability	to	return	to	a	pre-determined	

location	within	the	Security	Perimeter	and	land.	

2. Auto	descent	(landing)	if	battery	were	to	drop	lower	than	nominal	level.

3. Flights	will	be	terminated	at	or	prior	to	25%	battery	power	reserve.

4. Live	video	for	operator	gives	real	time	positions	feedback.	The	PIC	can	utilize	the	

video	feed	for	potential	collision	avoidance,	and	to	maintain	spatial	orientation.	

5. Live	positioning	of	the	aircraft	via	GPS	will	transmit	real	time	positioning	on	the	

mobile	device via	Google	maps	of	the	Master	remote	controller.	If	sight	of	the	

aircraft	is	momentarily	hindered,	the	PIC	will	utilize	the	video	monitor	and	GPS	map	

for	guiding	the	aircraft	back	into	sight.	

6. On-Screen-Display	(OSD)	contains	operating	information	to	ascertain	vehicle	health	

at	all	times:	speed,	altitude,	number	of	GPS	satellites,	heading	and	voltage.

7. GPS	lock	supplies	for	return-to-home	(RTH).	Should	Command	and	Control	(C2)	link	

failures	occur	(highly	improbable),	vehicle	returns	automatically	to	the	point	of	

launch.	

8. Altitude	information	will	be	provided	to	the	sUAS	pilot	via	a	digitally	encoded	

telemetric	data	feed,	which	downlinks	from	the	aircraft	to	a	ground-based	on-screen	

display.	 This	altitude	information	will	be	generated	by	equipment	installed	on	

board	the	aircraft,	using	GPS	triangulation,	or	digitally	encoded	barometric	

altimeter,	or	radio	altimeter,	or	any	combination	thereof.	Prior	to	each	flight,	a	zero	

altitude	initiation	point	will	be	established	and	confirmed	for	accuracy	by	the	pilot.	

9. Radio	spectrum	analysis	for	interference	on	the	frequencies	utilized	for	vehicle	

control/communication.	The	inspire	1	and	DJI	Pilot	app	will	automatically	scan	over	

44	channel	frequencies	and	select	the	most	reliable	signals	for	visual	flight	

transmission.	

10. The	remote	controller	will	communicate	with	the	sUAS	in	the	following	frequencies

under	FCC	compliance:

a. 5.725-5.825	GHz

b. 2.400-2.483	GHz

Mechanical/Physical:

1. We	will	fly	line-of-sight	(LOS)	only.	The	vehicle	will	always	remain	in	direct	LOS	to	

the	pilot,	thus	eliminating	the	concern	of	signal	severance	(flying	behind	

objects/walls).

2. The	sUAS	will	weigh	less	than	7	lbs	and	travel	at	speeds	no	greater	than	43	knots.

3. Batteries	should	far	exceed	the	capacity	required	for	actual	flight	time.

4. Flights	will	be	operated	at	an	altitude	of	no	more	than	400 feet AGL.
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Personnel

1. Spotters	ensure	safe	operation	and	act	as	a	redundant	set	of	eyes	for	operators	

(Pilot,	Camera	Operator)

2. A	briefing	will	be	conducted	in	regard	to	the	planned	sUAS	operations	prior	to	each	

day’s	activities.	It	will	be	mandatory	that	all	personnel	who	will	be	performing	

duties	within	the	boundaries	of	the	safety	perimeter	be	present	for	this	briefing.	

3. The	operator	will	obtain	the	consent	of	all	persons	involved	in	the	sUAS	operations	

and	ensure	that	only	consenting	persons	will	be	allowed	within	100	feet	of	the	flight	

operations.	

4. Observer	and	pilot	will	at	all	times	be	able	to	communicate	by	voice.	

5. Written	and/or	oral	permission	from	the	relevant	property	holders	will	be	obtained.	

6. Pilot	and	observer	will	have	been	trained	in	operation	of	UAS	general	and	received	

up-to-date	information	on	the	particular	UAS	to	be	operated.	

Operations

1. The	unmanned	aircraft	(UA)	must	weigh	less	than	7 pounds,	including	energy	

source(s)	and	equipment.	Operations	authorized	by	this	petition	of	exemption	are	

limited	to	the	following	aircraft	described	in	Appendix	A.	

2. The	UA	may	not	be	flown	at	a	ground	speed	exceeding	50	knots.	

3. Flights	must	be	operated	at	an	altitude	of	no	more	than	400 feet	above	ground	level	

(AGL),	as	indicated	by	the	procedures	specified	in	the	operator’s	manual.	All	

altitudes	reported	to	ATC	must	be	in	feet	AGL.	

4. The	UA	must	be	operated	within	visual	line	of sight	(VLOS)	of	the	PIC	at	all	times.	

This	requires	the	PIC	to	be	able	to	use	human	vision	unaided	by	any	device	other	

than	corrective	lenses,	as	specified	on	the	PIC’s	FAA-issued	medical	certificate.	

5. All	operations	must	utilize	a	visual	observer	(VO).	The	VO	may	be	used	to	satisfy	the	

VLOS	requirement	as	long	as	the	PIC	always	maintains	VLOS	capability.	The	VO	and	

PIC	must	be	able	to	communicate	verbally	at	all	times.	

6. Prior	to	each	flight	the	PIC	must	inspect	the	UAS,	both	physically	and	electronically	

via	the	DJI	Pilot app (using	a	fully	charged	mobile	device), to	ensure	it	is	in	a	

condition	for	safe	flight.	If	the	inspection	reveals	a	condition	that	affects	the	safe	

operation	of	the	UAS,	the	aircraft	is	prohibited	from	operating	until	the	necessary	

maintenance	has	been	performed	and	the	UAS	is	found	to	be	in	a	condition	for	safe	

flight.	

7. Any	UAS	that	has	undergone	maintenance	or	alterations	that	affect	the	UAS	

operation	or	flight	characteristics,	e.g.	replacement	of	a	flight	critical	component,	

must	undergo	a	functional	test	flight	in	accordance	with	the	operator’s	manual.	The	

PIC	who	conducts	the	functional	test	flight	must	make	an	entry	in	the	UAS	aircraft	

records	of	the	flight.	The	requirements	and	procedures	for	a functional	test	flight	

and	aircraft	record	entry	must	be	added	to	the	operator’s	manual.	

8. The	operator	must	follow	the	manufacturer’s	UAS	aircraft/component,	

maintenance,	overhaul,	replacement,	inspection,	and	life	limit	requirements.	When	

unavailable,	aircraft	maintenance/component/overhaul,	replacement,	and	

inspection/maintenance	requirements must	be	established	and	identified	in	the	

operator’s	manual.	
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9. Prior	to	operations	conducted	for	the	purpose	of	filming	client	facilities,	the	PIC	

must	have	accumulated	and	logged,	a	minimum	of	five	hours	as	UAS	pilot	operating	

the	make	and	model	of	the	UAS	to	be	utilized	for	operations	under	the	exemption	

and	three	takeoffs	and	three	landings	in	the	preceding	90	days.		Training,	

proficiency,	experience	building,	and	takeoff and	landing	currency	flights	can	be	

conducted	under	this	petition	of	exemption	to	accomplish	the	required	flight	time	

and	90	day	currency.	During	training,	proficiency,	experience	building,	and	take	off	

and	landing	currency	flights	all	persons	not	essential	for	flight	operations	are	

considered	nonparticipants,	and	the	PIC	must	operate	the	UA	with	appropriate	

distance	from	nonparticipants.	

5. Prior	to	any	flight	operations	authorized	by	this	petition of	exemption,	the	PIC	must	

meet	the	four	minimum	requirements	to	operate	the	sUAS	(1) Have	read	and	fully	

comprehended	the	drone	manual	which	the	PIC	will	be	operating.	(2) Completed	5	

successful	simulator	flights	on	the	DJI	Pilot	app	before	ever	operating	the	Inspire	1	

or	Phantom	2	outdoors.	(3) A	minimum	of	five	hours	flight	time	on	Beginner	Mode.

(4)	A	minimum	of	five	hours	as	sUAS	pilot	with the	make	and	model	of	sUAS	to	be	

utilized	for	operations	under	the	exemption	and	3	take	offs	and	landings	in	the	

preceding	90	days.

6. Prior	to	any	flight	operations	authorized	by	this	petition	of	exemption,	the	VO	must	

be	close	enough	to	the	PIC	to	effectively	communicate	safety	concerns by	voice and

maintain	a	visual	line	of	sight	to	the	sUAS.

10. The	UA	may	not	be	operated	directly	over	any	person,	except	authorized	and	

consenting	personnel,	below	an	altitude	that	is	hazardous	to	persons	or	property	on	

the	surface	in	the	event	of	a	UAS	failure	or	emergency.	

11. Regarding	the	distance	from	participating	persons,	the	operator’s	manual	has	safety	

mitigations	for	authorized	and	consenting	personnel.	At	all	times,	those	persons	

must	be	essential	to	the	operations.	

12. Regarding	distance	from	nonparticipating	persons,	the	operator	must	ensure	that	

no	persons	are	allowed	within	500	feet	of	the	area	except	those	consenting	to	be	

involved	and	necessary	for	normal	business	operations.	This	provision	may	be	

reduced	to	no	less	than	200	feet	if	it	would	not	adversely	affect	safety	and	the	

Administrator	has	approved	it.	For	example,	an	equivalent	level	of	safety	may	be	

determined	by	an	aviation	safety	inspector’s	evaluation	of	the	infrastructure	

inspection	area	to	note	terrain	features,	obstructions,	buildings,	safety	barriers,	etc.	

Such	barriers	may	protect	nonparticipating	persons	(observers,	the	public,	news	

media,	etc.)	from	debris	in	the	event	of	an	accident.	

13. If	the	UAS	loses	communications	or	loses	its	GPS	signal,	the	UA	must	return	to	a	predetermined	location	within	the	security	perimeter	and	land	or	be	recovered	in	

accordance	with	the	operator’s	manual.	

14. The	UAS	must	abort	the	flight	in	the	event	of	unpredicted	obstacles	or	emergencies	

in	accordance	with	the	operator’s	manual.	

15. Each	UAS	operation	must	be	completed	at	or	prior	to	25%	battery	power	remaining.	

16. The	operator	must	obtain	an	Air	Traffic	Organization	(ATO)	issued	Certificate	of	

Waiver	or	Authorization	(COA)	prior	to	conducting	any	operations	under	this	

petition	of	exemption.	This	COA	will	also	require	the	operator	to	request	a	Notice	to	

Airman	(NOTAM)	not	more	than	72	hours	in	advance,	but	not	less	than	48	hours	
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prior	to	the	operation.	

17. All	aircraft	operated	in	accordance	with	this	exemption	must	be	identified	by	serial	

number,	registered	in	accordance	with	14	CFR	part	47,	and	have	identification	(NNumber)	markings	in	accordance	with	14	CFR	part	45,	Subpart	C.	Markings	must	be	

as	large	as	practicable.	

18. The	operator	must	develop	procedures	to	document	and	maintain	a	record	of	the	

UAS	maintenance,	preventative	maintenance,	alterations,	status	of	

replacement/overhaul	component	parts,	and	the	total	time	in	service	of	the	UAS.	

These	procedures	must	be	added	to	the	operator’s	manual.	

19. Each	UAS	operated	under	this	exemption	must	comply	with	all	manufacturer	Safety	

Bulletins.	

20. The	preflight	inspection	must	account	for	all	discrepancies,	i.e.	inoperable	

components,	items,	or	equipment,	not	covered	in	the	relevant	preflight	inspection	

sections	of	the	operator’s	manual.	

21. Before	conducting	operations,	the	radio	frequency	spectrum	used	for	operation	and	

control	of	the	UA	must	comply	with	the	Federal	Communications	Commission	(FCC)	

or	other	appropriate	government	oversight	agency	requirements.	

22. At	least	three	days	before	scheduled	operation	of	flight	and	filming,	the	operator	of	

the	UAS	affected	by	this	exemption	must	submit	a	written	Plan	of	Activities	to	the	

local	FSDO	with	jurisdiction	over	the	area	of	proposed	infrastructure	inspection.	

The	3-day	notification	may	be	waived with	the	concurrence	of	the	FSDO.	The	plan	of	

activities	must	include	at	least	the	following:	

a. Dates	and	times	for	all	flights;

b. Name	and	phone	number	of	the	person	responsible	for	the on-scene	

operation	of	the	UAS;

c. Make,	model,	and	serial or	N-number	of	UAS	to	be	used;

d. Name	and	certificate	number	of	UAS	PICs	involved	in	the	marketing	project;

e. A	statement	that	the	operator	has	obtained	permission	from	property	

owners	and/or	local	officials	to	conduct	the marketing	project;	the	list	of	

those	who	gave	permission	must	be	made	available to	the	inspector	upon	

request;

f. Signature	of	exemption-holder	or	representative;	and

g. A	description	of	the	flight	activity,	including	maps	or	diagrams	of	any	area,	

city,	town,	county,	and/or	state	over	which	infrastructure	inspection	will	be	

conducted	and	the	altitudes	essential	to	accomplish	the	operation.	

23. The	UA	must	remain	clear	and	yield	the	right	of	way	to	all	other	manned	operations	

and	activities	at	all	times	(including,	but	not	limited	to,	ultralight	vehicles,	parachute	

activities,	parasailing	activities,	hang	gliders,	etc.).	

24. UAS	operations	may	not	be	conducted	during	night,	as	defined	in	14	CFR	§	1.1.	All	

operations	must	be	conducted	under	visual	meteorological	conditions	(VMC).	

Flights	under	special	visual	flight	rules	(SVFR)	are	not	authorized.	

25. The	UA	may	not	be	operated	less	than	500	feet	below	or	less	than	2,000	feet	

horizontally	from	a	cloud	or	when	visibility	is	less	than	3	statute	miles	from	the	PIC.	

26. The	UA	may	not	operate	in	Class	B,	C,	or	D	airspace	without	written	approval	from	

the	FAA.	The	UA	may	not	operate	within	5	nautical	miles	of	the	geographic	center	of	

a	non-towered	airport	as	denoted	on	a	current	FAA-published	aeronautical	chart	
Live	Oak	Bank 8

unless	a	letter	of	agreement	with	that	airport’s	management	is	obtained,	and the	

operation	is	conducted	in	accordance	with	a	NOTAM	as	required	by	the	operator’s	

COA.	The	letter	of	agreement	with	the	airport	management	must	be	made	available	

to	the	Administrator	upon	request.	

27. Any	incident,	accident,	or	flight	operation	that	transgresses	the	lateral	or	vertical	

boundaries	of	the	operational	area	as	defined	by	the	applicable	COA	must	be	

reported	to	the	FAA’s	UAS	Integration	Office	(AFS-80)	within	24	hours.	Accidents	

must	be	reported	to	the	National	Transportation	Safety	Board	(NTSB)	per	

instructions	contained	on	the	NTSB	Web	site:	www.ntsb.gov.	Further	flight	

operations	may	not	be	conducted	until	the	incident,	accident,	or	transgression	is	

reviewed	by	AFS-80	and	authorization	to	resume	operations	is	provided.	
Live	Oak	Bank 9

Support	for	Petition	for	Exemption	

In	accordance	with	the	procedural	requirements	of	14	C.F.R.	§11.81,	Live	Oak	Bank

provides	the	following	information:	

Contact	Information:	

Micah	Davis

Marketing	Director

Live	Oak	Bank

1741	Tiburon	Dr.

Wilmington,	NC	28403

910.550.2255

Micah.Davis@liveoakbank.com

Regulatory	Provisions	from	which	Live	Oak	Bank seeks	an	Exemption	

Live	Oak	Bank believes	it	may	need	an	exemption	from	the	following	provisions	to	

conduct	the	contemplated	operations.	In	some	instances,	relief	is	needed	because	relief	

from	another	provision	renders	compliance	with	the	regulation	at	hand	infeasible.	

333	Aircraft	Exemption	Status	

14	C.F.R.	§61.113(a)	and	(b)	

14	C.F.R.	§91.119(c) 14	C.F.R.	§91.121	

14	C.F.R.	§91.151

14	C.F.R.	§91.405(a)

14	C.F.R.	§91.407(a)

14	C.F.R.	§91.409(a)(1)&(2)

14	C.F.R.	§91.417(a)&(b)

Live	Oak	Bank	believes	an	exemption	is	only	needed	from	the	above-listed	

regulatory	provisions.	To	the	extent	that	the	FAA	believes	that	additional	relief	is	required	

for	Live	Oak	Bank	to	conduct	the	operations	described	here,	we	request	an	exemption	from	

any	such	regulatory	provisions	as	well.	
Live	Oak	Bank 10

The	Extent	of	Requested	Relief	and	the	Reasons	Relief	is	Needed	

Section	333	Aircraft	Exemption	Status:	

Section	333	of	the	Modernization	Act	authorizes	the	FAA	to	exempt	aircraft	from	the	

requirement	for	an	airworthiness	certificate	based	on	a	consideration	of	the	size,	weight,	

speed,	operational	capability	of	the	particular	UAS,	as	well	as	its	proximity	to	airports	and	

populated	areas.	An	analysis	of	these	criteria	demonstrates	that	the	sUAS	operated	without	

an	airworthiness	certificate	in	the	areas	and	under	the	conditions	contemplated	by	Live	

Oak	Bank will	be	at	least	as	safe,	or	safer,	than	a	conventional aircraft	(fixed	wing	or	

rotorcraft)	operating	with	an	airworthiness	certificate	without	the	conditions	proposed	in	

this	request.	

The	sUAS	is	less	than	7 lbs.	fully	loaded,	carries	neither	a	pilot	nor	passenger,	and	operates	

exclusively	within	a	secured	area.	Unlike	other	civil	aircraft,	operations	under	this	

exemption	will	be	tightly	controlled	and	monitored	by	the	operator	and	observer.	Flight	

operations will	be	conducted	in	compliance	with	the	FAA	and	with	local	public	safety	

requirements	to	provide	security	for	the	area	of	operation.	Lastly,	application	of	these	same	

criteria	demonstrates	that	there	is	no	credible	threat	to	national	security	posed	by	the	

sUAS,	due	to	its	size,	speed	of	operation,	location	of	operation,	lack	of	explosive	materials	

and	inability	to	carry	a	substantial	external	load.	

Given	the	size	and	limited	operating	area	associated	with	the	aircraft	to	be	utilized	by	the	

Applicant,	this	meets	the	requirements	of	an	equivalent	level	of	safety	under	Part	11	and	

Section	333	of	the	Reform	Act.	The	Federal	Aviation	Act	(49	U.S.C.§44701	(f))	and	Section	

333	of	the	Reform	Act	both	authorize	the	FAA	to	exempt	aircraft	from	the	requirement	for	

an	airworthiness	certificate,	upon	consideration	of	the	size,	weight,	speed,	operational	

capability,	and	proximity	to	airports	and	populated	areas	of	the	particular	sUAS.	In	all	

cases,	an	analysis	of	these	criteria	demonstrates	that	the	UAS	operated	without an	

airworthiness	certificate,	in	the	restricted	environment	and	under	the	conditions	proposed	

will	be	at	least	as	safe,	or	safer,	than	a	conventional	aircraft	(fixed	wing	or	rotorcraft)	

operating	with	an	airworthiness	certificate	without	the	restrictions	and	conditions	

proposed.	

14	C.F.R.	§61.113(a)	and	(b)	

§61.113	Private	pilot	privileges	and	limitations:	Pilot	in	command.	

(a)	Except	as	provided	in	paragraphs	(b)	through	(h)	of	this	section,	no	person	who	holds	a	

private	pilot	certificate	may	act	as	pilot	in	command	of	an	aircraft	that	is	carrying	

passengers	or	property	for	compensation	or	hire;	nor	may	that	person,	for	compensation	

or	hire,	act	as	pilot	in	command	of	an	aircraft.	

(b)	A	private	pilot	may,	for	compensation	or	hire,	act	as	pilot	in	command	of	an	aircraft	in	

connection	with	any	business	or	employment	if: (1)	The	flight	is	only	incidental	to	that	

business	or	employment;	and (2)	The	aircraft	does	not	carry	passengers	or	property	for	

compensation	or	hire.	*****
Live	Oak	Bank 11

Live	Oak	Bank anticipates	initially	using	a	cadre	of	specially	trained	staff	to	conduct	

the	sUAS	operations.	While	these	individuals	will	not	hold	commercial	pilot	licenses.	The	

sUAS	will	not	carry	property	for	compensation	or	hire	since	they	will	be	used	to	utilize	

Marketing	and	showcase	the	projects	we	are	involved	with;	however,	the	employees’	

operation	of	the	sUAS	will	not	be	incidental	to	their	employment	with	Live	Oak	Bank,	and	

they	will	be	compensated	for	such	work.	Without	an	exemption,	the	pilot	would	be	

required	to	hold	a	commercial	pilot	certificate	under	§61.133.	However,	the	risk	associated	

with	the	contemplated	operations	is	less	than	the	risk	posed	by	a	traditional	aircraft.	The	

sUAS	will	fly	at	altitudes	well	below	the	permissible	limits	for	other	civil	aircraft,	

eliminating	the	risk	to	other	aircraft,	and	within	a	geographical	envelope	under	the	sole	

control	of	Live	Oak	Bank clients.	Accordingly,	the	risk	would	be	limited	to	Live	Oak	Bank

personnel,	who	will	be	appropriately	outfitted	in	safety	gear.	Requiring	a	commercial	pilot	

certificate	would	provide	no	appreciable	safety	benefit	and	would	needlessly	impose	

additional	cost	on	Live	Oak	Bank.	Because	the	contemplated	operations	would	not	comply	

with	§61.113(b)(1)	and	none	of	the	other	exceptions	to	paragraph	(a)	apply,	relief	is	

needed	from	both	paragraphs	(a)	and	(b).	

14	C.F.R.	91.119(c)	

§91.119	Minimum	safe	altitudes:	General.	

Except	when	necessary	for	takeoff	or	landing,	no	person	may	operate	an	aircraft below	the	

following	altitudes:

(c)	Over	other	than	congested	areas.	An	altitude	of	500	feet	above	the	surface,	except	over	

open	water	or	sparsely	populated	areas.	In	those	cases,	the	aircraft	may	not	be	operated	

closer	than	500	feet	to	any	person,	vessel,	vehicle,	or	structure.	

Live	Oak	Bank submits	that	the	only	relief	it	requires	from	§91.119	is	from	the	

minimum	altitudes	listed	in	paragraph	(c).	Relief	is	required	from	paragraph	(c)	for	fixed	

wing	operations	because	asset	evaluation	conducted	at	500	feet	or	higher	is	insufficiently	

distinct	to	be	meaningful.	Since	operations	at	this	altitude	also	pose	a	heightened	risk	of	

collision	with	another	aircraft,	safety	can	only	be	assured	through	the	grant	of	an	

exemption.	The	anticipated	rotorcraft	operations	should	be	adequately	addressed	by	

paragraph	(d)	(1).	Additionally,	relief	should	not	be	needed	from	paragraph	(a)	because	an	

emergency	landing	of	the	aircraft	due	to	a	power	failure	will	not	create	an	undue	hazard	to	

persons	or	property	on	the	surface.	As	noted	in	the	explanation	of	why	an	exemption	will	

not	adversely	affect	safety,	Live	Oak	Bank clients	have exclusive	use	of	the	land	over	which	

the	sUAS	will	be	operated,	and	public	access	is	limited.	Live	Oak	Bank’s clients	tightly	

control	access	to	land	and	have	the	ability	to	assure	that	no	individuals	unassociated with	

the	planned	operations	are	on	the	affected	land.	As	such,	the	risk	of	injury	is	minimal.	Live	

Oak	Bank does	not	contemplate	conducting	operations	over	congested	areas,	so	relief	is	not	

requested	from	paragraph	(b).	

14	C.F.R.	91.121	

14	C.F.R.	§91.121	Altimeter	Settings	
Live	Oak	Bank 12

This	regulation	requires	each	person	operating	an	aircraft	to	maintain	cruising	altitude	by	

reference	to	an	altimeter	that	is	set	“...to	the	elevation	of	the	departure	airport	or	an	

appropriate	altimeter	setting	available	before	departure.”

As	the	sUAS	may	not	have	a	barometric	altimeter,	but	instead	a	GPS	altitude	read	out,	an	

exemption	may	be	needed.	An	equivalent	level	of	safety	will	be	achieved	by	the	operator,	

pursuant	to	the	Manual	and	Safety	Check	list,	confirming	the	altitude of	the	launch	site	

shown	on	the	GPS	altitude	indicator	before	flight.	 Altitude	information	will	be	provided	to	

the	sUAS	pilot	via	a	digitally	encoded	telemetric	data	feed,	which	downlinks	from	the	

aircraft	to	a	ground-based	on-screen	display.	This	altitude	information	will	be	generated	by	

equipment	installed	on	board	the	aircraft,	using	GPS	triangulation,	or	digitally	encoded	

barometric	altimeter,	or	radio	altimeter,	or	any	combination	thereof.	Prior	to	each	flight,	a	

zero	altitude	initiation	point	will	be	established	and	confirmed	for	accuracy	by	the	pilot.	

14	C.F.R.	91.151	

§91.151	Fuel	requirements	for	flight	in	VFR	conditions.	

(a)	No	person	may	begin	a	flight	in	an	airplane	under	VFR	conditions	unless	(considering	

wind	and	forecast	weather	conditions)	there	is	enough	fuel	to	fly	to	the	first	point	of	

intended	landing	and,	assuming	normal	cruising	speed	– (1)	During	the	day,	to	fly	after	that	

for	at	least	30	minutes.	

(b)	No	person	may	begin	a	flight	in	a	rotorcraft	under	VFR	conditions	unless	(considering	

wind	and	forecast	weather	conditions)	there	is	enough	fuel	to	fly	to	the	first	point	of	

intended	landing	and,	assuming	normal	cruising	speed,	to	fly	after	that	for	at	least	20	

minutes.	

Operating	the	sUAS	in	a	pre-defined	area	with	less	than	30	minutes	of	reserve	fuel	does	not	

raise	the	type	of	risk	contemplated	by	§91.151,	i.e.,	that	an	aircraft	could	run	out	of	fuel	in	

the	event	it	has	to	be	flown	to	an	alternate	airport	or	circle	the	planned	airport	in	the	event	

of	unanticipated	conditions.	Live	Oak	Bank does	not	intend	to	use	the	sUAS	for	point-topoint	flights	and	will	not	operate	the	sUAS	beyond	visual	line	of	sight.	Nor	will	the	sUAS	

require	an	airport	in	order	to	land.	Rather,	Live	Oak	Bank will	operate	the	sUAS	using	preplanned	flight	paths	(taking	into	account	weather	conditions)	designed	to	allow	the	sUAS	to	

fly	to	the	point	of	intended	landing.	As	such,	there	is	no	need	for	a	time-based	excess	fuel	

requirement.	Rather	it	should	be	sufficient	to	require	only	as	much	additional	excess	flight	

capacity	as	necessary	to	safely	land	the	sUAS.	We	believe	that	a	25%	battery	reserve	is	

more	than	sufficient	to	meet	this	objective.

14	C.F.R.	91.405(a),	91.407(a)	(1),	14	C.F.R.	91.409(a)	(1)&(2)	and	14	C.F.R.	91.417(a)	&	(b)	

§91.405	Maintenance	required.	

Each	owner	or	operator	of	an	aircraft	– (a)	Shall	have	that	aircraft	inspected	as	prescribed	

in	subpart	E	of	this	part	and	shall	between	required	inspections,	except	as	provided	in	

paragraph	(c)	of	this	section,	have	discrepancies	repaired	as	prescribed	in part	43	of	this	
Live	Oak	Bank 13

chapter;

§91.407	Operation	after	maintenance,	preventive	maintenance,	rebuilding,	or	

alteration.

(a)	No	person	may	operate	any	aircraft	that	has	undergone	maintenance,	rebuilding,	or	

alteration	unless	–

(1)	It	has	been	approved	for	return to	service	by	a	person	authorized	under	§43.7	of	this	

chapter;

§91.409	Inspections.

(a) Except	as	provided	in	paragraph	(c)	of	this	section,	no	person	may	operate	an	aircraft	

unless,	within	the	preceding	12 calendar	months,	it	has	had

(1)	An	annual	inspection	in	accordance	with	part	43	of	this	chapter	and	has	been	

approved	for	return	to	service	by	a	person	authorized	by	§43.7	of	this	chapter;	or

(2)	An	inspection	for	the	issuance	of	an	airworthiness	certificate	in	accordance	with	

part	21	of	this	chapter.

§91.417	(a)	&	(b) 

Live	Oak	Bank believes	that	an	exemption	from	these	three	maintenance	requirements	

is	appropriate	because	the	FAA	has	not	developed	maintenance	standards	that	would	allow	

an	operator	to	meet	the	part	91	maintenance	requirements.	In	particular,	there	are	no	

individuals	authorized	by	the	FAA	to	approve	a	sUAS	for	return	to	service	under	§91.407(a)	

or	to	conduct	the	initial	airworthiness	and	annual	return	to	service	inspections	required	by	

§91.409(a).	Live	Oak	Bank will	maintain	the	aircraft	as	instructed	in	the	owner’s	manual,	

where	applicable,	and	will	not	operate	the	aircraft	until	it	has	reasonably	determined	that	

any	needed	repairs	have	been	made.	However,	because	of	the	technical	impossibility	of	

meeting	the	requirements	of	§§91.405(a),	407(a),	409(a)	and	417(a)&(b),	we	believe	an	

exemption	from	these	provisions	is	appropriate.	

Please	do	not	hesitate	to	contact	me	at	the	phone	number	or	via	email	address	provided	

above	should	you	have	any	questions	or	concerns.

Respectfully	submitted,

Micah	Davis

Marketing	Director,	Live	Oak	Bank
Live	Oak	Bank 14

Appendix	A

Specific	types,	make,	and	model

#1	– DJI	Inspire	1

See	Attached	Flight	Manuals:

• Inspire_1_User_Manual_v1.0_en

• Inspire_1_Safety_Guidlines_en

#2	– DJI	Phantom	2

See	Attached	Flight	Manuals

• Phantom2_User_manual_v1.4_en