This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

31130

Vol. 63, No. 109

Monday, June 8, 1998

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and

Stockyards Administration

9 CFR Part 205

RIN 0580–AA63

Clear Title—Protection for Purchasers

of Farm Products

AGENCY: Grain Inspection, Packers and

Stockyards Administration, USDA.

ACTION: Proposed rule.

SUMMARY: This document amends

regulations relating to the establishment

and management of statewide central

filing systems as they pertain

specifically to the filing of ‘‘effective

financing statements’’ for ‘‘farm

products’’, as defined in section 1324 of

the Food Security Act of 1985 (7 U.S.C.

1631), to allow a continuation of an

effective financing statement to be filed

without the signature of the debtor

provided State law authorizes such a

filing. This proposal responds to

comments received when the

regulations were previously amended by

a final rule published on April 1, 1997

(62 FR 15363) that brought the

regulations into conformity with

statutory amendments found in Sections

662 and 663 of the Federal Agriculture

Improvement and Reform Act of 1996.

DATES: Comments must be submitted on

or before August 7, 1998.

ADDRESSES: To help ensure that

comments are considered, send them to:

Economic/ Statistical Support, Packers

and Stockyards Programs, Grain

Inspection, Packers and Stockyards

Administration, STOP 3647, Room

3052, South Building, 1400

Independence Avenue SW, Washington,

D.C. 20250–3647. Comments may also

be sent via fax at (202) 690–1266 or via

e-mail at GGrinnell@usda.gov. Please

state that your comments refer to the

clear title regulations. Comments

received may be inspected at the above

address during regular office hours,

except holidays.

FOR FURTHER INFORMATION CONTACT:

Gerald E. Grinnell, Director, Economic/

Statistical Support, Grain Inspection,

Packers and Stockyards Administration,

(202) 720–7455. Kimberly D. Hart,

Esquire, Trade Practices Division, Office

of the General Counsel, (202) 720–8160.

SUPPLEMENTARY INFORMATION:

Background

Section 1324 of the Food Security Act

of 1985 (7 U.S.C. 1631) (the Act)

provides that certain persons may be

subject to a security interest in a farm

product created by the seller under

certain circumstances in which a lender

files an ‘‘effective financing statement’’

with the ‘‘system operator’’ in a State

that has a certified central filing system

as defined by the Act. The Act requires

the Secretary of Agriculture to prescribe

regulations ‘‘to aid States in the

implementation and management of a

central filing system.’’ Final regulations

were published on August 18, 1986 (51

FR 29450).

The Secretary’s authority and

responsibility under the Act is limited

to certification of the State central filing

systems and to prescribing regulations

to aid in the implementation and

management of certified central filing

systems. The Act does not give the

Secretary the authority or responsibility

for such matters as direct notification by

secured parties, sales of and payment

for products, procedures for payment or

procedures for personal liability

protection. Those matters are governed

by State law.

Prior to the 1996 amendment of the

Act, lenders could not file effective

financing statements or amendments to

those statements electronically with

State certified central filing systems

because such statements were required

to bear the signature of the debtor,

which could not be transmitted

electronically. Commercial lenders also

expressed concern and confusion due to

the vagueness of the provisions for

effective financing and continuation

statements contained in the Act and the

inconsistency between the Act and the

Uniform Commercial Code.

Section 662 of the Federal Agriculture

Improvement and Reform Act of 1996

(Pub. L. 104–127) (hereinafter the ‘‘FAIR

Act’’) amended the Act to allow lenders

to file ‘‘effective financing statements’’

by electronic transmission without the

necessity of obtaining the signature of

the debtor provided State law authorizes

such a filing.

The Department published interim

and final rules in the Federal Register

to implement the FAIR Act amendments

(61 FR 54727 and 62 FR 15363,

respectively). The rule allows electronic

filing of amendments to effective

financing statements without the

signature of the debtor. Comments

received in response to the rule

encouraged the Department to further

amend the regulations to allow the filing

of paper continuation statements

without the signature of the debtor as

well. Section 205.209(d) of the

regulations (9 CFR 205.209(d)) currently

provides that continuation statements

are to be treated in the same manner as

amendments to effective financing

statements. Therefore, the rule

implementing the 1996 FAIR Act

amendments allows continuation

statements to be filed electronically,

without the signature of the debtor as

well. However, because the purpose of

that rule was to bring the regulations

into conformity with the 1996

amendment (which addressed electronic

filings), the final rule did not address

the commentors’ request to eliminate

the signature requirement for paper

continuation statements.

This proposed rule would remove the

requirement from the regulations that a

filing of a continuation to an effective

financing statement bear the signature of

the debtor. Section 1324 of the Food

Security Act of 1985 does not require

that continuation statements be signed.

The proposed rule would make it easier

for lenders to file continuation

statements because lenders would no

longer be required to obtain the

signature of the debtor. The proposed

rule would also simplify the filing of

lien notices by bringing the regulations

for central filing systems into

conformity with Article 9 of the

Uniform Commercial Code, which

covers non-farm products.

Executive Order 12866

This rule has been determined to be

nonsignificant for the purpose of

Executive Order 12866 and, therefore,

has not been reviewed by the Office of

Management and Budget.

Executive Order 12988

This proposal has been reviewed

under Executive Order 12988, Civil

Justice Reform. This action is not
Federal Register / Vol. 63, No. 109 / Monday, June 8, 1998 / Proposed Rules 31131

intended to have retroactive effect. This

rule would not preempt any State or

local laws, regulations, or policies,

unless they present an irreconcilable

conflict with this rule. There are no

administrative procedures which must

be exhausted prior to any judicial

challenge to the provisions of this rule.

Regulatory Flexibility Act and

Information Collection

The Administrator, Grain Inspection,

Packers and Stockyards Administration

(GIPSA) has determined that this action

will not have a significant economic

impact on a substantial number of small

entities, as defined in the Regulatory

Flexibility Act (5 U.S.C. 601). Few small

entities would be affected. The

proposed rule would remove the

requirement from the regulations that a

filing of a continuation to an effective

financing statement contain the

signature of the debtor. The proposed

rule would make it easier for lenders,

few of which are small entities, to file

continuation statements because lenders

would no longer be required to obtain

the signature of the debtor. Lenders

would have the option of filing effective

financing continuation statements

electronically or in paper form, either

without the signature of the debtor.

Furthermore, the proposed rule would

also simplify the filing of lien notices by

bringing the regulations for central filing

systems into conformity with Article 9

of the Uniform Commercial Code, which

covers non-farm products. The

Administrator has determined that this

rule will not have a significant

economic impact on a substantial

number of small entities.

In compliance with the Paperwork

Reduction Act (44 U.S.C. 35), the

information collection and

recordkeeping requirements for 9 CFR

part 205 have previously been approved

by the Office of Management and

Budget under control number 0580–

0016.

List of Subjects in 9 CFR Part 205

Agriculture, Central filing system.

For reasons set out in the preamble,

the Grain Inspection, Packers and

Stockyards Administration proposes to

amend 9 CFR part 205 as set forth

below.

PART 205—CLEAR TITLE—

PROTECTION FOR PURCHASERS OF

FARM PRODUCTS

1. The authority citation for Part 205

is revised to read as follows:

Authority: 7 U.S.C. 1631 and 7 CFR 2.22,

2.81.

2. Section 205.209 is amended by

revising paragraph (d) to read as

follows:

§ 205.209 Amendment or continuation of

EFS.

* * * * *

(d) An effective financing statement

remains effective for a period of 5 years

from the date of filing and may be

continued in increments of 5-year

periods beyond the initial 5-year filing

period by refiling an effective financing

statement or by filing a continuation

statement within 6 months before

expiration of the effective financing

statement. A continuation statement

may be filed electronically or as a paper

document, and need not contain the

signature of the debtor.

Dated: June 1, 1998.

James R. Baker,

Administrator, Grain Inspection, Packers and

Stockyards Administration.

[FR Doc. 98–15112 Filed 6–5–98; 8:45 am]

BILLING CODE 3410–EN–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–17–AD]

RIN 2120–AA64

Airworthiness Directives; Raytheon

Aircraft Company 200 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to Raytheon

Aircraft Company (Raytheon) 200 series

airplanes. The proposed AD would

require revising the FAA-approved

Airplane Flight Manual (AFM) to

specify procedures that would prohibit

flight in severe icing conditions (as

determined by certain visual cues), limit

or prohibit the use of various flight

control devices while in severe icing

conditions, and provide the flight crew

with recognition cues for, and

procedures for exiting from, severe icing

conditions. The proposed AD is

prompted by the results of a review of

the requirements for certification of

these airplanes in icing conditions, new

information on the icing environment,

and icing data provided currently to the

flight crew. The actions specified by the

proposed AD are intended to minimize

the potential hazards associated with

operating these airplanes in severe icing

conditions by providing more clearly

defined procedures and limitations

associated with such conditions.

DATES: Comments must be received on

or before July 17, 1998.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Central Region,

Office of the Regional Counsel,

Attention: Rules Docket No. 98–CE–17–

AD, Room 1558, 601 E. 12th Street,

Kansas City, Missouri 64106. Comments

may be inspected at this location

between 8 a.m. and 4 p.m., Monday

through Friday, holidays excepted.

This information also may be

examined at the Rules Docket at the

address above.

FOR FURTHER INFORMATION CONTACT: Mr.

John P. Dow, Sr., Aerospace Engineer,

Small Airplane Directorate, Aircraft

Certification Service, 1201 Walnut, suite

900, Kansas City, Missouri 64106,

telephone: (816) 426–6932, facsimile:

(816) 426–2169.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications

should identify the Rules Docket

number and be submitted in triplicate to

the address specified above. All

communications received on or before

the closing date for comments, specified

above, will be considered before taking

action on the proposed rule. The

proposals contained in this notice may

be changed in light of the comments

received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report that

summarizes each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket No. 98–CE–17–AD.’’ The

postcard will be date stamped and

returned to the commenter.