29344 Federal Register / Vol. 63, No. 103 / Friday, May 29, 1998 /Rules and Regulations

Done in Washington, DC, this 22nd day of

May 1998.

Charles P. Schwalbe,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 98–14259 Filed 5–28–98; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–102–AD; Amendment

39–10549; AD 98–11–24]

RIN 2120–AA64

Airworthiness Directives; Short

Brothers Model SD3–30, SD3–60, SD3–

SHERPA, and SD3–60 SHERPA Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to all Short Brothers Model

SD3–30, SD3–60, SD3–SHERPA, and

SD3–60 SHERPA series airplanes. This

amendment requires revising the

Airplane Flight Manual (AFM) to

modify the limitation that prohibits

positioning the power levers below the

flight idle stop during flight, and to

provide a statement of the consequences

of positioning the power levers below

the flight idle stop during flight. This

amendment is prompted by incidents

and accidents involving airplanes

equipped with turboprop engines in

which the ground propeller beta range

was used improperly during flight. The

actions specified by this AD are

intended to prevent loss of airplane

controllability, or engine overspeed and

consequent loss of engine power caused

by the power levers being positioned

below the flight idle stop while the

airplane is in flight.

EFFECTIVE DATE: July 6, 1998.

ADDRESSES: Information pertaining to

this amendment may be examined at the

Federal Aviation Administration (FAA),

Transport Airplane Directorate, Rules

Docket, 1601 Lind Avenue, SW.,

Renton, Washington; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Mark Quam, Aerospace Engineer,

Standardization Branch, ANM–113,

FAA, Transport Airplane Directorate,

1601 Lind Avenue SW., Renton,

Washington 98055–4056; telephone

(425) 227–2145; fax (425) 227–1149.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to all Short Brothers

Model SD3–30, SD3–60, SD3–SHERPA,

and SD3–60 SHERPA series airplanes

was published in the Federal Register

on March 27, 1998 (63 FR 14859). That

action proposed to require revising the

Limitations Section of the Airplane

Flight Manual (AFM) to modify the

limitation that prohibits positioning the

power levers below the flight idle stop

while the airplane is in flight, and to

add a statement of the consequences of

positioning the power levers below the

flight idle stop while the airplane is in

flight.

Comments

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were submitted in response

to the proposal or the FAA’s

determination of the cost to the public.

Conclusion

The FAA has determined that air

safety and the public interest require the

adoption of the rule as proposed.

Interim Action

This is considered interim action

until final action is identified, at which

time the FAA may consider further

rulemaking.

Cost Impact

The FAA estimates that 148 Short

Brothers Model SD3–30, SD3–60, SD3–

SHERPA, and SD3–60 SHERPA series

airplanes of U.S. registry will be affected

by this AD, that it will take

approximately 1 work hour per airplane

to accomplish the required actions, and

that the average labor rate is $60 per

work hour. Based on these figures, the

cost impact of the AD on U.S. operators

is estimated to be $8,880, or $60 per

airplane.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the requirements of this AD action, and

that no operator would accomplish

those actions in the future if this AD

were not adopted.

Regulatory Impact

The regulations adopted herein will

not have substantial direct effects 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. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (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)

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. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (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. Section 39.13 is amended by

adding the following new airworthiness

directive:

98–11–24 Short Brothers PLC: Amendment

39–10549. Docket 97–NM–102–AD.

Applicability: All Model SD3–30, SD3–60,

SD3–SHERPA, and SD3–60 SHERPA series

airplanes; certificated in any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent loss of airplane controllability

caused by the power levers being positioned
Federal Register / Vol. 63, No. 103 / Friday, May 29, 1998 /Rules and Regulations 29345

1See Custody of Investment Company Assets

Outside the United States, Investment Company Act

Release No. 22658 (May 12, 1997) [62 FR 26923

(May 16, 1997)].

2 Id., 62 FR at 26931.

3Letter to Dorothy M. Donohue, Associate

Counsel, Investment Company Institute, and Daniel

L. Goelzer, Baker & McKenzie, from Robert E. Plaze,

Associate Director, Division of Investment

Management (Feb. 19, 1998) (the 1997 Amendments

do not exclude compulsory depositories from rule

17f–5’s selection process, and do not preclude fund

boards from delegating to a foreign custody manager

the selection of a compulsory depository).

4See Letter to Barry P. Barbash, Director, Division

of Investment Management, from Dorothy M.

Donohue, Associate Counsel, Investment Company

Institute (Mar. 24, 1998) (placed in File No. S7–23–

95).

5 Id.

6See Custody of Investment Company Assets

Outside the United States, Investment Company Act

Release No. 21259 (July 27, 1995) [60 FR 39592

(Aug. 2, 1995)] at n.3 (a fund may incur significant

costs in maintaining securities outside the primary

market for the securities).

7See rule 17f–5(a)(1) [17 CFR 270.17f–5(a)(1)].

This provision of the amended rule generally

expands the class of eligible foreign custodians that

may hold custody of fund assets. The amended

definition of eligible foreign custodian also includes

the definitions of ‘‘qualified foreign bank’’ and

Continued

below the flight idle stop while the airplane

is in flight, accomplish the following:

(a) Within 30 days after the effective date

of this AD, revise the Limitations Section of

the FAA-approved Airplane Flight Manual

(AFM) to include the following statements.

This action may be accomplished by

inserting a copy of this AD into the AFM.

Positioning of power levers below the

flight idle stop while the airplane is in flight

is prohibited. Such positioning may lead to

loss of airplane control or may result in an

overspeed condition and consequent loss of

engine power.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

Standardization Branch, ANM–113, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Standardization

Branch, ANM–113.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Standardization Branch,

ANM–113.

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(d) This amendment becomes effective on

July 6, 1998.

Issued in Renton, Washington, on May 22,

1998.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 98–14212 Filed 5–28–98; 8:45 am]

BILLING CODE 4910–13–U

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 270

[Release Nos. IC–23201; IS–1136; File No.

S7–23–95]

RIN 3235–AE98

Custody of Investment Company

Assets Outside the United States

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule; extension of

compliance date.

SUMMARY: The Commission is extending

the compliance date for certain

amendments to the rule that governs the

custody of investment company assets

outside the United States.

DATES: The effective date of the rule

amendments published on May 16, 1997

(62 FR 26923) remains June 16, 1997. As

of May 29, 1998, the compliance date

for the rule amendments, except for the

amended definition of an ‘‘eligible

foreign custodian,’’ is extended to

February 1, 1999. The compliance date

for the amended definition of an eligible

foreign custodian remains June 16,

1998.

FOR FURTHER INFORMATION CONTACT:

Thomas M. J. Kerwin, Senior Counsel,

or C. Hunter Jones, Assistant Director,

Office of Regulatory Policy, at (202)

942–0690, in the Division of Investment

Management, Mail Stop 5–6, Securities

and Exchange Commission, 450 5th

Street, NW, Washington, DC 20549.

SUPPLEMENTARY INFORMATION: The

Commission is extending the

compliance date for certain

amendments to rule 17f–5 [17 CFR

270.17f–5] under the Investment

Company Act of 1940 [15 U.S.C. 80a]

that the Commission adopted in 1997

(the ‘‘1997 Amendments’’).1 The release

that adopted the 1997 Amendments (the

‘‘1997 Release’’) provided that the

amendments would become effective on

June 16, 1997.2 The 1997 Release further

provided that registered management

investment companies (‘‘funds’’) must

bring their foreign custody arrangements

into compliance with the amended rule

by June 16, 1998 (i.e., the fund’s board

must make the findings required by the

amended rule or appoint a delegate to

do so by that date).

After the Commission adopted the

1997 Amendments, representatives of

mutual funds and ten U.S. bank

custodians asked the Commission’s

Division of Investment Management to

clarify whether the 1997 Amendments

permit a fund board to delegate

authority to a foreign custody manager

to select a securities depository that a

fund must use if it maintains assets in

a particular country (a ‘‘compulsory

depository’’). In a letter dated February

19, 1998, the Division of Investment

Management answered that, in its view,

under the rule, fund boards can delegate

this authority.3

In a letter dated March 24, 1998,

mutual fund representatives stated that

certain requirements of the 1997

Amendments may present

unanticipated problems when a foreign

custody arrangement involves the

selection of a compulsory depository.4

They asserted that, because most

depositories are governmental or quasigovernmental organizations, it may not

be possible for funds (or their foreign

custody managers) to obtain necessary

information to make the findings

contemplated by the rule, to negotiate

terms or conditions in custody

agreements, or to assure U.S.

jurisdiction over foreign custodians. The

fund representatives stated that they

and representatives of custodian banks

will soon submit to the Commission

proposed revisions to the 1997

Amendments that would address these

problems. In the interim, the fund

representatives requested that the

Commission suspend the compliance

date for the 1997 Amendments to

facilitate consideration of this

submission.

The fund representatives state that a

suspension is necessary because many

funds have been unable to establish new

custodial arrangements under the 1997

Amendments.5 Fund representatives

also state that funds did not become

fully aware of potential difficulties in

applying the 1997 Amendments to

compulsory depositories until recently,

when they began to revise their foreign

custody arrangements to attempt to

comply with the amendments. Because

of the difficulties in applying the rule,

the fund representatives assert that

many funds may not be prepared to

comply with the 1997 Amendments as

of June 16, 1998. Some fund groups

reportedly have considered

withdrawing their assets from foreign

custodians altogether, despite the

burdens of alternative holding

arrangements.6

The Commission is extending until

February 1, 1999, the compliance date

for the 1997 Amendments, except for

the amended definition of an ‘‘eligible

foreign custodian,’’ the compliance date

for which will remain June 16, 1998.7