Federal Register / Vol. 79, No. 21 / Friday, January 31, 2014 / Rules and Regulations 5247 

(2) Step #2—Convert each gross notional 

by its derivative adjustment factor to produce 

an adjusted gross notional. The derivative 

adjustment factor approximates the price 

sensitivity for each of the product groups in 

order to weight the notional amount by 

sensitivity before weighting for maturity. 

(i) For cap and floor options, the derivative 

adjustment factor is 33 percent. For example, 

an interest rate cap with a $1 million 

notional amount has an adjusted gross 

notional of $330,000 ($1,000,000 × 0.33 + 

$330,000). 

(ii) For interest rate swaps and Treasury 

futures, the derivative adjustment factor is 

100 percent. For example, an interest rate 

swap with a $1 million notional amount has 

an adjusted gross notional of $1,000,000 

($1,000,000 × 1.00 = $1,000,000). 

(iii) The total adjusted notional for all 

derivatives positions is the sum of (i) and (ii) 

above. 

(3) Step #3—Produce the weighted average 

remaining time to maturity (WARM) for all 

derivatives positions. (i) For interest rate 

caps, interest rate floors, and interest rate 

swaps, the remaining maturity is the time left 

between the reporting date and the 

contracted maturity date, expressed in years 

(round up to two decimals); 

(ii) For Treasury futures, the remaining 

maturity is the underlying deliverable 

Treasury note’s maximum maturity (e.g., a 

five-year Treasury note future has a five-year 

remaining maturity); and 

(iii) Determine the WARM using the 

adjusted gross notional, as set forth in 

subsection (2) of this section, and the 

remaining time to maturity as defined for 

each product group above in paragraphs 

(b)(3)(i) and (ii) of this appendix. 

(4) Step #4—Produce the WARMN by 

converting the WARM to a percentage and 

then multiplying the percentage by the total 

adjusted gross notional. (i) Divide the 

WARM, as calculated in paragraph (b)(3) of 

this appendix, by ten to convert it to a 

percentage (e.g., 7.75 WARMN is translated 

to 77.5 percent); and 

(ii) Multiply the WARM converted to a 

percentage, as described in paragraph (c)(4)(i) 

of this appendix, by total adjusted gross 

notional, described in paragraph (c)(2) of this 

appendix. 

(5) Compare WARMN calculation to the 

WARNM limit for compliance. The total in 

step four (4) must be less than the limit in 

paragraph (a)(1)(ii) or (a)(2)(ii) of this 

appendix, as applicable. 

(6) Example calculations for compliance 

with this subpart: WARMN. The table below 

provides an illustrative example of the 

WARMN limit calculations for a sample 

Federal credit union that has entry level 

authority. The sample Federal credit union 

has a net worth of $100 million and total 

assets of $1 billion; its notional limit 

authority is $65 million (65 percent of net 

worth). 

TABLE 4—EXAMPLE WARMN LIMIT CALCULATION

Options Swaps Futures Total 

Gross Notional (Step #1) ................................................................. $100,000,000 $50,000,000 $5,000,000 $155,000,000 

Adjustment Factor ............................................................................ 33% 100% 100% ............................

Adjusted Notional (Step #2) ............................................................ $33,000,000 $50,000,000 $5,000,000 $88,000,000 

Weighted Average Remaining Maturity (WARM) (Step #3) ............ 7.00 8.50 5.00 7.74 

Weighted Average Remaining Maturity Notional (WARMN) (Step #4): 

1 $68,100,000 

Notional Limit Authority (65% of net 

worth) 

$65,000,000 

Under/(Over) Notional Limit Authority ($3,100,000) 

1 (77.4% of Step #3.) 

PART 715—SUPERVISORY 

COMMITTEE AUDITS AND 

VERIFICATIONS 

■ 7. The authority citation for part 715 

continues to read as follows: 

Authority: 12 U.S.C. 1757, 1766(a), and 

1781–1790; 31 U.S.C. 3717. 

■ 8. In § 715.5, revise paragraph (a) to 

read as follows: 

§ 715.5 Audit of Federal Credit Unions. 

(a) Total assets of $500 million or 

greater. To fulfill its Supervisory 

Committee audit responsibility, a 

Federal credit union having total assets 

of $500 million or greater, except as 

provided in § 703.106(b)(3) of this 

chapter, must obtain an annual audit of 

its financial statements performed in 

accordance with Generally Accepted 

Auditing Standards by an independent 

person who is licensed to do so by the 

State or jurisdiction in which the credit 

union is principally located. 

* * * * * 

PART 741—REQUIREMENTS FOR 

INSURANCE 

■ 9. The authority citation for part 741 

is revised to read as follows: 

Authority: 12 U.S.C. 1757, 1766(a), 1781– 

1790, and 1790d; 31 U.S.C. 3717. 

■ 10. Revise § 741.219 to read as 

follows: 

§ 741.219 Investment requirements. 

(a) Any credit union which is insured 

pursuant to Title II of the Act must 

adhere to the requirements stated in part 

703 of this chapter concerning 

transacting business with corporate 

credit unions. 

(b) Any credit union which is insured 

pursuant to Title II of the Act must 

notify the applicable NCUA Regional 

Director or the Director of the Office of 

National Examinations and Supervision 

in writing at least 30 days before it 

begins engaging in derivatives. 

[FR Doc. 2014–01703 Filed 1–30–14; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0501; Directorate 

Identifier 2011–SW–036–AD; Amendment 

39–17732; AD 2014–02–04] 

RIN 2120–AA64 

Airworthiness Directives; Eurocopter 

France Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for 

Eurocopter France (Eurocopter) Model 

EC 155B and EC155B1 helicopters. This 

AD requires repetitively inspecting the 

lower and upper front and rear fittings 

(fittings) that attach the upper fin to the 

fenestron for a crack and, if there is a 

crack, removing all four fittings from 

service. This AD also requires, within a 

specified time, removing all fittings 

from service, and the fittings would not 

be eligible to be installed on any 


emcdonald on DSK67QTVN1PROD with RULES
5248 Federal Register / Vol. 79, No. 21 / Friday, January 31, 2014 / Rules and Regulations 

helicopter. This AD was prompted by 

the loss of an upper fin in flight. The 

actions of this AD are intended to detect 

a crack in the fittings to prevent loss of 

the upper fin and subsequent loss of 

control of the helicopter. 

DATES: This AD is effective March 7, 

2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain document listed in this AD 

as of March 7, 2014. 

ADDRESSES: For service information 

identified in this AD, contact American 

Eurocopter Corporation, 2701 N. Forum 

Drive, Grand Prairie, TX 75052; 

telephone (972) 641–0000 or (800) 232– 

0323; fax (972) 641–3775; or at http://

www.eurocopter.com/techpub. You may 

review the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

2601 Meacham Blvd., Room 663, Fort 

Worth, Texas 76137. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov or in person at the 

Docket Operations Office between 9 

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

Friday, except Federal holidays. The AD 

docket contains this AD, the European 

Aviation Safety Agency (EASA) AD, any 

incorporated-by-reference service 

information, the economic evaluation, 

any comments received, and other 

information. The street address for the 

Docket Operations Office (phone: 800– 

647–5527) is U.S. Department of 

Transportation, Docket Operations 

Office, M–30, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Robert Grant, Aviation Safety Engineer, 

Safety Management Group, FAA, 2601 

Meacham Blvd., Fort Worth, Texas 

76137; telephone 817–222–5110; email 

robert.grant@faa.gov. 

SUPPLEMENTARY INFORMATION:

Discussion 

On June 11, 2013, at 78 FR 34960, the 

Federal Register published our notice of 

proposed rulemaking (NPRM), which 

proposed to amend 14 CFR part 39 to 

include an AD that would apply to 

Model EC 155B and EC155B1 

helicopters. The NPRM proposed 

inspecting certain part-numbered 

fittings for a crack and, if there is a 

crack, removing the fittings from service 

before further flight. Also, the NPRM 

proposed removing certain partnumbered fittings from service within 

180 hours time-in-service (TIS) and 

prohibiting the fittings from being 

eligible for installation on any 

helicopter. The proposed requirements 

were intended to detect a crack in the 

fittings to prevent loss of the upper fin 

and subsequent loss of control of the 

helicopter. 

The NPRM was prompted by AD No. 

2011–0108, dated June 7, 2011, issued 

by EASA, which is the Technical Agent 

for the Member States of the European 

Union, to correct an unsafe condition 

for Eurocopter Model EC 155B and 

EC155B1 helicopters. EASA advises of 

an in-flight loss of a fin on a Model 

EC155B1 helicopter. According to 

EASA, a crack in the fittings attaching 

the upper fin to the fenestron (tail rotor 

assembly) was discovered during an 

investigation. As a result, EASA issued 

an emergency AD to mandate repetitive 

inspections of the upper fin attachment 

fittings. EASA states that Eurocopter 

developed modification (MOD) 0754B40 

to increase the strength of the fuselagefin junction fittings by installing two 

reinforced single-piece fittings to 

replace the affected fittings, which is 

terminating action for the repetitive 

inspection requirements. EASA 

subsequently issued AD No. 2011–0108, 

which superseded its emergency AD, to 

require installation of MOD 0754B40 

and to retain the repetitive inspection 

requirements until the MOD is installed. 

Comments 

We gave the public the opportunity to 

participate in developing this AD, but 

we did not receive any comments on the 

NPRM (78 FR 34960, June 11, 2013). 

FAA’s Determination 

These helicopters have been approved 

by the aviation authority of France and 

are approved for operation in the United 

States. Pursuant to our bilateral 

agreement with France, EASA, its 

technical representative, has notified us 

of the unsafe condition described in the 

EASA AD. We are issuing this AD 

because we evaluated all information 

provided by EASA and determined the 

unsafe condition exists and is likely to 

exist or develop on other helicopters of 

these same type designs and that air 

safety and the public interest require 

adopting the AD requirements as 

proposed. 

Differences Between this AD and the 

EASA AD 

This AD does not require replacing 

the upper fin to fenestron fittings with 

reinforced fittings in accordance with 

MOD 0754B40 within 6 calendar 

months as stated in the EASA AD, but 

rather requires removing the affected 

fittings from service within the 

equivalent 180 hours TIS. 

Related Service Information 

Eurocopter has issued Emergency 

Alert Service Bulletin No. 05A017, 

Revision 2, dated December 9, 2010, 

which specifies repetitively inspecting 

the fittings for a crack and replacing 

each fitting if there is a crack. 

Eurocopter has also issued Service 

Bulletin No. 53–029, Revision 1, dated 

March 10, 2011, which specifies 

replacing the fittings with reinforced 

fittings in accordance with MOD 

0754B40. 

Costs of Compliance 

We estimate that this AD will affect 9 

helicopters of U.S. Registry. We estimate 

that operators will incur the following 

costs in order to comply with this AD 

based on an average labor rate of $85 per 

work hour. It will take 1 work hour to 

inspect the fittings and about 3 

inspections before replacement. It will 

take 8 work hours to replace the fittings, 

and required parts will cost $3,311. 

Based on these figures, the total cost 

will be $4,246 per helicopter and 

$38,214 for the U.S. fleet. 

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 

helicopters identified in this rulemaking 

action. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will 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 that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 


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Federal Register / Vol. 79, No. 21 / Friday, January 31, 2014 / Rules and Regulations 5249 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); 

(3) Will not affect intrastate aviation 

in Alaska to the extent that it justifies 

making a regulatory distinction; and 

(4) 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 an economic evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 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 airworthiness 

directive (AD): 

2014–02–04 Eurocopter France 

Helicopters: Amendment 39–17732; Docket 

No. FAA–2013–0501; Directorate Identifier 

2011–SW–036–AD. 

(a) Applicability 

This AD applies to Model EC 155B and 

EC155B1 helicopters with lower front fitting 

part number (P/N) 365A23–4240–01, upper 

front fitting P/N 365A23–4242–01, lower rear 

fitting P/N 365A23–4241–01, or upper rear 

fitting P/N 365A23–4243–01 (fittings), 

installed, certificated in any category. 

(b) Unsafe Condition 

This AD defines the unsafe condition as a 

crack in a fitting. This condition could result 

in loss of the upper fin during flight and 

subsequent loss of control of the helicopter. 

(c) Effective Date 

This AD becomes effective March 7, 2014. 

(d) Compliance 

You are responsible for performing each 

action required by this AD within the 

specified compliance time unless it has 

already been accomplished prior to that time. 

(e) Required Actions 

(1) Within 15 hours time-in-service (TIS) 

and thereafter at intervals not to exceed 55 

hours TIS: 

(i) Using an appropriate light source and a 

10x or higher power magnifying glass, 

inspect each front (item c) and rear (item d) 

upper fitting and each front (item e) and rear 

(item f) lower fitting for a crack as depicted 

in Detail A of Figure 1 of Eurocopter 

Emergency Alert Service Bulletin No. 

05A017, Revision 2, dated December 9, 2010 

(ASB). Inspect the hatched area as depicted 

in Details B, C, and D of Figure 2 of the ASB. 

A high-resolution (more than 2 million 

pixels) digital camera or dye-penetrant 

inspection may be used to facilitate the crack 

inspection. 

(ii) If there is a crack in any fitting, before 

further flight, remove all four fittings from 

service. 

(2) Within 180 hours TIS, remove the 

fittings from service. 

(3) Do not install lower front fitting P/N 

365A23–4240–01, upper front fitting P/N 

365A23–4242–01, lower rear fitting P/N 

365A23–4241–01, and upper rear fitting P/N 

365A23–4243–01 on any helicopter. 

(f) Credit for Actions Previously Completed 

Inspections accomplished before the 

effective date of this AD in accordance with 

the procedures specified in Eurocopter 

Emergency Alert Service Bulletin No. 

05A017, Revision 2, dated December 9, 2010; 

Revision 1, dated January 27, 2010; and 

Revision 0, dated September 28, 2007, are 

considered acceptable for compliance with 

the initial inspection specified in paragraph 

(e)(1) of this AD. 

(g) Special flight permits 

Special flight permits will not be issued. 

(h) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Safety Management 

Group, FAA, may approve AMOCs for this 

AD. Send your proposal to: Robert Grant, 

Aviation Safety Engineer, Safety Management 

Group, FAA, 2601 Meacham Blvd., Fort 

Worth, Texas 76137; telephone 817–222– 

5110; email robert.grant@faa.gov. 

(2) For operations conducted under a 14 

CFR part 119 operating certificate or under 

14 CFR part 91, subpart K, we suggest that 

you notify your principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office or 

certificate holding district office, before 

operating any aircraft complying with this 

AD through an AMOC. 

(i) Additional Information 

(1) Eurocopter Service Bulletin No. 53–029, 

Revision 1, dated March 10, 2011, which is 

not incorporated by reference, contains 

additional information about the subject of 

this AD. For service information identified in 

this AD, contact American Eurocopter 

Corporation, 2701 N. Forum Drive, Grand 

Prairie, TX 75052; telephone (972) 641–0000 

or (800) 232–0323; fax (972) 641–3775; or at 

http://www.eurocopter.com/techpub. You 

may review the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 2601 

Meacham Blvd., Room 663, Fort Worth, 

Texas 76137. 

(2) The subject of this AD is addressed in 

European Aviation Safety Agency AD No. 

2011–0108, dated June 7, 2011, which can be 

found in Docket No. FAA–2013–0501 on the 

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

(j) Subject 

Joint Aircraft Service Component (JASC) 

Code: 5530 Vertical Stabilizer Structure. 

(k) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Eurocopter Emergency Alert Service 

Bulletin No. 05A017, Revision 2, dated 

December 9, 2010. 

(ii) Reserved. 

(3) For Eurocopter service information 

identified in this AD, contact American 

Eurocopter Corporation, 2701 N. Forum 

Drive, Grand Prairie, TX 75052; telephone 

(972) 641–0000 or (800) 232–0323; fax (972) 

641–3775; or at http://www.eurocopter.com/ 

techpub. 

(4) You may view this service information 

at FAA, Office of the Regional Counsel, 

Southwest Region, 2601 Meacham Blvd., 

Room 663, Fort Worth, Texas 76137. For 

information on the availability of this 

material at the FAA, call (817) 222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

(202) 741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Fort Worth, Texas, on January 16, 

2014. 

Lance T. Gant, 

Acting Directorate Manager, Rotorcraft 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–01461 Filed 1–30–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0525; Directorate 

Identifier 2011–SW–063–AD; Amendment 

39–17730; AD 2014–02–02] 

RIN 2120–AA64 

Airworthiness Directives; Bell 

Helicopter Textron Canada Limited 

(Bell) Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for Bell 

Model 206L, L–1, L–3, and L–4 

helicopters. This AD requires measuring 

each main rotor (M/R) blade spar space 

to determine whether it is oversized and 

reidentifying the M/R blade and 


emcdonald on DSK67QTVN1PROD with RULES