Federal Register / Vol. 76, No. 118 / Monday, June 20, 2011 / Proposed Rules 35799 

efficiency measures, such as profits, 

dividends, or costs in isolation. 

Responsibilities of the Board and Senior 

Management 

5. The board of directors and senior 

management should take an active role in 

establishing and sustaining an organizational 

awareness and culture that promotes 

effective enterprise risk management. 

6. The board of directors and senior 

management should be provided with 

accurate, timely, and informative risk reports 

on a regular basis that provide an overview 

of the regulated entity’s overall risk profile, 

including its exposures to market, credit, 

liquidity, and operational risks and any 

concentration of risk. 

7. The board of directors and senior 

management should ensure that the regulated 

entity’s overall risk profile is aligned with its 

mission objectives. 

8. The board of directors and senior 

management should ensure that the regulated 

entity performs a comprehensive risk selfassessment, on an annual basis, to identify 

and evaluate all material risks. 

Independent Risk Management Function 

9. A regulated entity should have an 

independent risk management function, or 

unit, with responsibility for risk 

measurement and risk monitoring, including 

monitoring and enforcement of risk limits. 

10. The chief risk officer should head the 

risk management function. 

11. The chief risk officer should report 

directly to the chief executive officer or the 

risk committee of the board of directors. If 

the chief risk officer reports to the chief 

executive officer, he/she should also have a 

direct and independent reporting 

relationship with the risk committee of the 

board of directors. 

12. The risk management function should 

have adequate resources, including a welltrained and capable staff. 

Risk Measurement, Monitoring, and Control 

13. A regulated entity should measure, 

monitor, and control its overall risk 

exposures, reviewing market, credit, 

liquidity, and operational risk exposures on 

both a business unit (or business segment) 

and enterprise-wide basis. 

14. A regulated entity should have the risk 

management systems to generate, at an 

appropriate frequency, the information 

needed to manage risk. Such systems should 

include systems for market, credit, 

operational, and liquidity risk analysis, asset 

and liability management, regulatory 

reporting, and performance measurement. 

15. A regulated entity should have a 

comprehensive set of risk limits and 

monitoring procedures to ensure that risk 

exposures remain within established risk 

limits, and a mechanism for reporting 

violations and breaches of risk limits to 

senior management and the board of 

directors. 

16. A regulated entity should ensure that 

it has sufficient controls around risk 

measurement models to ensure the 

completeness, accuracy, and timeliness of 

risk information. 

17. A regulated entity should have 

adequate and well-tested disaster recovery 

and business resumption plans for all major 

systems and have remote facilitates to limit 

the impact of disruptive events. 

Applicable Laws, Regulations, and Policies 

18. A regulated entity should comply with 

all applicable laws, regulations, and 

supervisory guidance (e.g., advisory 

bulletins) governing the management of risk. 

Standard 9—Management of Credit and 

Counterparty Risk 

Responsibilities of the Board of Directors and 

Senior Management 

1. The board of directors and senior 

management are responsible for ensuring that 

the regulated entity has credit risk 

management policies, procedures, and 

systems that are appropriate to its business 

model and that cover all aspects of credit 

administration including credit pricing, 

underwriting, credit limits, collateral 

standards, and collateral valuation 

procedures. 

2. The board of directors and senior 

management should ensure that the regulated 

entity has appropriate policies and 

procedures governing derivatives and the use 

of clearinghouses and exchanges for 

derivatives trades. 

3. The board of director and senior 

management should ensure that the regulated 

entity has personnel that are appropriately 

trained and competent to manage credit and 

counterparty risk, and that they have the 

necessary tools, procedures, and systems for 

assessing credit and counterparty risk. 

4. Senior management should provide its 

board of directors with regular briefings and 

reports on the regulated entity’s credit 

exposures, including information on 

concentrations of credit, the level and trends 

in delinquencies and problem credits, and 

management efforts to address problem 

credits. Such briefings and reports should 

include the results of scenario analysis and 

stress tests and their effects on delinquencies 

and other key financial ratios. 

Policies, Procedures, Controls, and Systems 

5. A regulated entity should have policies 

that limit concentrations of credit risk and 

systems to identify concentrations of credit 

risk. 

6. A regulated entity should establish 

prudential limits to restrict exposures to a 

single counterparty that are appropriate to its 

business model. 

7. A regulated entity should establish 

prudential limits to restrict exposures to 

groups of related counterparties that are 

appropriate to its business model. 

8. A regulated entity should have policies, 

procedures, and systems for evaluating credit 

risk that will enable it to make informed 

credit decisions. 

9. A regulated entity should have policies, 

procedures, and systems for evaluating credit 

risk that will enable it to ensure that claims 

are legally enforceable. 

10. A regulated entity should have policies 

and procedures for addressing problem 

credits. 

11. A regulated entity should have a 

system of independent, ongoing credit 

review, including stress testing and scenario 

analysis to identify possible unfavorable 

events. 

Applicable Laws, Regulations, and Policies 

12. A regulated entity should manage 

credit and counterparty risk in a way that 

complies with applicable laws, regulations, 

and supervisory guidance (e.g., advisory 

bulletins). 

Standard 10—Maintenance of Adequate 

Records 

1. A regulated entity should maintain 

financial records in compliance with 

Generally Accepted Accounting Principles 

(GAAP), FHFA guidelines, and applicable 

laws and regulations. 

2. A regulated entity should ensure that 

assets are safeguarded and financial and 

operational information is timely and 

reliable. 

3. A regulated entity should have a records 

management plan consistent with laws and 

corporate policies, including accounting 

policies, as well as personnel that are 

appropriately trained and competent to 

oversee and implement the records 

management plan. 

4. A regulated entity should conduct a 

review and approval of the records 

management plan and records retention 

schedule for all types of records by the board 

of directors at least once every two years. 

5. A regulated entity should ensure that 

reporting errors or irregularities are detected 

and corrected in a timely manner. 

Applicable Laws, Regulations, and Policies 

6. A regulated entity should comply with 

all applicable laws, regulations, and 

supervisory guidance (e.g., advisory 

bulletins) governing the maintenance of 

adequate records. 

Dated: June 14, 2011. 

Edward J. DeMarco, 

Acting Director, Federal Housing Finance 

Agency. 

[FR Doc. 2011–15100 Filed 6–17–11; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2011–0280; Airspace 

Docket No. 11–ASO–16] 

Proposed Amendment of Class E 

Airspace; Shelby, NC 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to 

amend Class E Airspace at Shelby, NC, 

as new Standard Instrument Approach 

Procedures have been developed at 

Shelby-Cleveland County Regional 


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35800 Federal Register / Vol. 76, No. 118 / Monday, June 20, 2011 / Proposed Rules 

Airport. This action would enhance the 

safety and airspace management of 

Instrument Flight Rules (IFR) operations 

at the airport. This action also would 

recognize the airport name change to 

Shelby-Cleveland County Regional 

Airport. 

DATES: Effective 0901 UTC, Comments 

must be received on or before August 4, 

2011. The Director of the Federal 

Register approves this incorporation by 

reference action under title 1, Code of 

Federal Regulations, part 51, subject to 

the annual revision of FAA, Order 

7400.9 and publication of conforming 

amendments. 

ADDRESSES: Send comments on this rule 

to: U.S. Department of Transportation, 

Docket Operations, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue, SE., Washington, 

DC 20590–0001; Telephone: 1–800– 

647–5527; Fax: 202–493–2251. You 

must identify the Docket Number FAA– 

2011–0280; Airspace Docket No. 11– 

ASO–16, at the beginning of your 

comments. You may also submit and 

review received comments through the 

Internet at http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: John 

Fornito, Operations Support Group, 

Eastern Service Center, Federal Aviation 

Administration, P.O. Box 20636, 

Atlanta, Georgia 30320; telephone (404) 

305–6364. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

Interested persons are invited to 

comment on this rule by submitting 

such written data, views, or arguments, 

as they may desire. Comments that 

provide the factual basis supporting the 

views and suggestions presented are 

particularly helpful in developing 

reasoned regulatory decisions on the 

proposal. Comments are specifically 

invited on the overall regulatory, 

aeronautical, economic, environmental, 

and energy-related aspects of the 

proposal. 

Communications should identify both 

docket numbers (FAA Docket No. FAA– 

2011–0280; Airspace Docket No. 11– 

ASO–16) and be submitted in triplicate 

to the Docket Management System (see 

ADDRESSES section for address and 

phone number). You may also submit 

comments through the Internet at 

http://www.regulations.gov. 

Annotators wishing the FAA to 

acknowledge receipt of their comments 

on this action must submit with those 

comments a self-addressed stamped 

postcard on which the following 

statement is made: ‘‘Comments to 

Docket No. FAA–2011–0280; Airspace 

Docket No. 11–ASO–16.’’ The postcard 

will be date/time stamped and returned 

to the commenter. 

All communications received before 

the specified closing date for comments 

will be considered before taking action 

on the proposed rule. The proposal 

contained in this notice may be changed 

in light of the comments received. A 

report summarizing each substantive 

public contact with FAA personnel 

concerned with this rulemaking will be 

filed in the docket. 

Availability of NPRMs 

An electronic copy of this document 

may be downloaded from and 

comments submitted through http:// 

www.regulations.gov. Recently 

published rulemaking documents can 

also be accessed through the FAA’s Web 

page at http://www.faa.gov/ 

airports_airtraffic/air_traffic/ 

publications/airspace_amendments/. 

You may review the public docket 

containing the proposal, any comments 

received and any final disposition in 

person in the Dockets Office (see the 

ADDRESSES section for address and 

phone number) between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal Holidays. An informal docket 

may also be examined during normal 

business hours at the office of the 

Eastern Service Center, Federal Aviation 

Administration, Room 210, 1701 

Columbia Avenue, College Park, Georgia 

30337. 

Persons interested in being placed on 

a mailing list for future NPRM’s should 

contact the FAA’s Office of Rulemaking, 

(202) 267–9677, to request a copy of 

Advisory circular No. 11–2A, Notice of 

Proposed Rulemaking Distribution 

System, which describes the application 

procedure. 

The Proposal 

The FAA is considering an 

amendment to Title 14, Code of Federal 

Regulations (14 CFR) part 71 to amend 

Class E airspace extending upward from 

700 feet above the surface to support 

new standard instrument approach 

procedures developed at ShelbyCleveland County Regional Airport, 

Shelby, NC. Airspace reconfiguration is 

necessary for continued safety and 

management of IFR operations at the 

airport. Also, the airport name would be 

changed from Shelby Municipal Airport 

to Shelby-Cleveland County Regional 

Airport. 

Class E airspace designations are 

published in Paragraph 6005 of FAA 

Order 7400.9U, dated August 18, 2010, 

and effective September 15, 2010, which 

is incorporated by reference in 14 CFR 

71.1. The Class E airspace designation 

listed in this document will be 

published subsequently in the Order. 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. It, 

therefore, (1) is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under DOT Regulatory Policies 

and Procedures (44 FR 11034; February 

26, 1979); and (3) does not warrant 

preparation of a Regulatory Evaluation 

as the anticipated impact is so minimal. 

Since this is a routine matter that will 

only affect air traffic procedures and air 

navigation, it is certified that this 

proposed rule, when promulgated, 

would not have a significant economic 

impact on a substantial number of small 

entities under the criteria of the 

Regulatory Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

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. This proposed 

rulemaking is promulgated under the 

authority described in Subtitle VII, Part, 

A, Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This proposed regulation is 

within the scope of that authority as it 

would amend Class E airspace at 

Shelby-Cleveland County Regional 

Airport, Shelby, NC. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (Air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9U, 


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Federal Register / Vol. 76, No. 118 / Monday, June 20, 2011 / Proposed Rules 35801 

Airspace Designations and Reporting 

Points, dated August 18, 2010, effective 

September 15, 2010, is amended as 

follows: 

Paragraph 6005 Class E airspace areas 

extending upward from 700 feet or more 

above the surface of the earth. 

* * * * * 

ASO NC E5 Shelby, NC [AMENDED] 

Shelby-Cleveland County Regional Airport, 

NC 

(Lat. 35°15′21′′ N., long. 81°36′02′′ W.) 

That airspace extending upward from 700 

feet above the surface within a 7.8-mile 

radius of Shelby-Cleveland County Regional 

Airport. 

Issued in College Park, Georgia, on June 1, 

2011. 

Mark D. Ward, 

Manager, Operations Support Group, Eastern 

Service Center, Air Traffic Organization. 

[FR Doc. 2011–15110 Filed 6–17–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF LABOR 

Mine Safety and Health Administration 

30 CFR Parts 75 and 104 

RIN 1219–AB75, 1219–AB73 

Examinations of Work Areas in 

Underground Coal Mines and Pattern 

of Violations 

AGENCY: Mine Safety and Health 

Administration, Labor. 

ACTION: Proposed rule; notice of public 

hearing; notice of extension of comment 

period. 

SUMMARY: The Mine Safety and Health 

Administration (MSHA) will hold 

additional public hearings on the 

Agency’s proposed rules for 

Examinations of Work Areas in 

Underground Coal Mines (Examinations 

of Work Areas) and for Pattern of 

Violations. 

DATES: The hearings will be held on July 

12, 2011, at the location listed in the 

ADDRESSES section of this document. 

Post-hearing comments must be 

received or postmarked by midnight 

Eastern Daylight Saving Time on August 

1, 2011. 

ADDRESSES: The public hearings will be 

held at The Forum at the Hal Rogers 

Center, 101 Bulldog Lane, Hazard, 

Kentucky. 

Comments, requests to speak, and 

informational materials for the 

rulemaking record may be sent to 

MSHA by any of the following methods. 

Clearly identify all submissions with 

‘‘RIN 1219–AB75’’ for Examinations of 

Work Areas in Underground Coal 

Mines’ submissions, and with ‘‘RIN 

1219–AB73’’ for Pattern of Violations’ 

submissions. 

• Federal E–Rulemaking Portal: 

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

on-line instructions for submitting 

comments. 

• Electronic mail: http://zzMSHAcomments@dol.gov. Include ‘‘RIN 1219– 

AB75’’ in the subject line of the message 

for Examinations of Work Areas in 

Underground Coal Mines and ‘‘RIN 

1219–AB73’’ for Pattern of Violations. 

• Facsimile: 202–693–9441. 

• Mail or Hand Delivery: MSHA, 

Office of Standards, Regulations, and 

Variances, 1100 Wilson Blvd., Room 

2350, Arlington, VA 22209–3939. For 

hand delivery, sign in at the 

receptionist’s desk on the 21st floor. 

FOR FURTHER INFORMATION CONTACT: 

Roslyn B. Fontaine, Acting Director, 

Office of Standards, Regulations, and 

Variances, MSHA, at 

fontaine.roslyn@dol.gov (e-mail); 202– 

693–9440 (voice); or 202–693–9441 

(facsimile). 

SUPPLEMENTARY INFORMATION: 

I. Availability of Information 

Federal Register Publications: The 

proposed rule for Examinations of Work 

Areas in Underground Coal Mines, 

published on December 27, 2010 (75 FR 

81165), and the proposed rule for 

Pattern of Violations, published on 

February 2, 2011 (76 FR 5719), are 

available on http://www.regulations.gov 

and on MSHA’s Web site at http:// 

www.msha.gov/REGSPROP.HTM. 

Public Comments: MSHA posts all 

comments without change, including 

any personal information provided. 

Access comments electronically on 

http://www.regulations.gov and on 

MSHA’s Web site at http:// 

www.msha.gov/currentcomments.asp. 

Review comments in person at the 

Office of Standards, Regulations, and 

Variances, 1100 Wilson Blvd., Room 

2350, Arlington, VA. Sign in at the 

receptionist’s desk on the 21st floor. 

E-mail Notification: To subscribe to 

receive e-mail notification when MSHA 

publishes rulemaking documents in the 

Federal Register, go to http:// 

www.msha.gov/subscriptions/ 

subscribe.aspx. 

II. Public Hearings 

MSHA held four public hearings on 

its proposed rules for Examinations of 

Work Areas in Underground Coal Mines 

and for Pattern of Violations. In 

response to a request from the public, 

MSHA will hold one additional public 

hearing on its proposed rules for 

Examinations of Work Areas in 

Underground Coal Mines and for 

Pattern of Violations. Requests to speak 

at a hearing should be made prior to the 

hearing date. You do not have to make 

a written request to speak; however, 

persons and organizations wishing to 

speak are encouraged to notify MSHA in 

advance for scheduling purposes. 

MSHA requests that parties making 

presentations at the hearings submit 

their presentations to MSHA, including 

any documentation, no later than 5 days 

prior to the hearing. 

The public hearing for the 

Examinations of Work Areas proposal 

will begin at 8:30 a.m. and the public 

hearing for the Pattern of Violations 

proposal will begin immediately 

following the conclusion of the public 

hearing on the Examinations of Work 

Areas proposal. 

MSHA is holding the two hearings on 

Tuesday, July 12, 2011, at the following 

location: 

Date Location Contact No. 

Tuesday, July 12, 2011 ...................... The Forum at the Hal Rogers Center, 101 Bulldog Lane, Hazard, Kentucky 41701.City Hall: 606–436–3171. 

Each hearing will begin with an 

opening statement from MSHA, 

followed by an opportunity for members 

of the public to make oral presentations. 

The hearings will be conducted in an 

informal manner. Formal rules of 

evidence will not apply. The hearing 

panel may ask questions of speakers and 

speakers may ask questions of the 

hearing panel. Speakers and other 

attendees may present information to 

MSHA for inclusion in the rulemaking 

record. MSHA also will accept written 

comments and other appropriate 

information for the record from any 

interested party, including those not 

presenting oral statements, until the 

close of the comment period on August 

1, 2011. 

MSHA will have a verbatim transcript 

of the proceedings taken for each 


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