30370 Federal Register / Vol. 63, No. 107 /Thursday, June 4, 1998 /Rules and Regulations

argued that the existence of the leverage

capital requirement placed domestic

institutions at a competitive

disadvantage relative to broker-dealers

and foreign banking organizations that

were not subject to minimum leverage

requirements. In the absence of

elimination of the leverage ratio,

however, these commenters supported

the proposed reduction of the minimum

required leverage ratio for bank holding

companies that have adopted the market

risk capital rule. These commenters also

requested that the Agencies: (a) apply

the leverage ratio reduction to banks

that have adopted the market risk

capital rule; and (b) exclude the leverage

ratio requirement entirely from the

prompt corrective action guidelines for

banks.

Final Rule

The Board has determined to adopt a

final rule that is consistent with the

original proposal with respect to the

bank holding company leverage capital

standard. The final rule provides that

the minimum Tier 1 leverage ratio for

the most highly-rated bank holding

companies, as well as those that have

implemented the market risk capital

rule, is 3.0 percent. The minimum

leverage ratio for all other bank holding

companies is 4.0 percent. The final rule

also incorporates certain changes in

wording to adjust for these new

provisions. These stylistic changes are

not intended to alter in any substantial

way the other provisions of the leverage

capital standard for bank holding

companies. The Board acknowledges

commenter concerns about the

usefulness of the leverage ratio as a

supervisory tool for those institutions

that have adopted the market risk

capital measure. Although further

modifications to the leverage ratio are

beyond the scope of this final rule, the

Board may consider whether the

leverage requirements should be further

modified in the future.

Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the

Regulatory Flexibility Act, the Board

has determined that this final rule

would not have a significant economic

impact on a substantial number of small

entities within the meaning of the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.). The effect of the final rule will

be to reduce regulatory burden on bank

holding companies by simplifying the

Tier 1 leverage standard. The most

highly-rated bank holding companies, as

well as those that have adopted the

market risk capital rule, will be required

to meet a lower leverage capital

standard under this rule. Accordingly, a

regulatory flexibility analysis is not

required.

Paperwork Reduction Act

The Board has determined that the

final rule does not involve a collection

of information pursuant to the

provisions of the Paperwork Reduction

Act of 1995 (44 U.S.C. 3501 et seq.).

Deferred Effective Date

The Board has determined that the

delayed effective date requirements of

the Administrative Procedure Act (5

U.S.C. 553) do not apply with respect to

this final rule. A delayed effective date

is not required with respect to agency

action that relieves a restriction (5

U.S.C. 553(d)(1)). Because this final rule

would relieve a restriction on certain

bank holding companies and would not

impose any new restrictions on bank

holding companies, the Board

concludes that the requirements of

section 553 do not apply to this final

rule.

List of Subjects in 12 CFR Part 225

Administrative practice and

procedure, Banks, banking, Federal

Reserve System, Holding companies,

Reporting and recordkeeping

requirements, Securities.

For the reasons set forth in the

preamble, part 225 of chapter II of title

12 of the Code of Federal Regulations is

amended as set forth below.

PART 225—BANK HOLDING

COMPANIES AND CHANGE IN BANK

CONTROL (REGULATION Y)

1. The authority citation for part 225

is revised to read as follows:

Authority: 12 U.S.C. 1817(j)(13), 1818,

1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b),

1972(1), 3106, 3108, 3310, 3331–3351, 3907,

and 3909.

2. In appendix D to part 225, section

II.a. is revised to read as follows:

Appendix D To Part 225—Capital

Adequacy Guidelines for Bank Holding

Companies: Tier 1 Leverage Measure

* * * * *

II. * * *

a. The Board has established a minimum

ratio of Tier 1 capital to total assets of 3.0

percent for strong bank holding companies

(rated composite ‘‘1’’ under the BOPEC rating

system of bank holding companies), and for

bank holding companies that have

implemented the Board’s risk-based capital

measure for market risk as set forth in

appendices A and E of this part. For all other

bank holding companies, the minimum ratio

of Tier 1 capital to total assets is 4.0 percent.

Banking organizations with supervisory,

financial, operational, or managerial

weaknesses, as well as organizations that are

anticipating or experiencing significant

growth, are expected to maintain capital

ratios well above the minimum levels.

Moreover, higher capital ratios may be

required for any bank holding company if

warranted by its particular circumstances or

risk profile. In all cases, bank holding

companies should hold capital

commensurate with the level and nature of

the risks, including the volume and severity

of problem loans, to which they are exposed.

* * * * *

By order of the Board of Governors of the

Federal Reserve System, May 29, 1998.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 98–14808 Filed 6–3–98; 8:45 am]

BILLING CODE 6210–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–CE–09–AD; Amendment 39–

10558; AD 98–12–01]

RIN 2120–AA64

Airworthiness Directives; Pilatus

Aircraft Ltd. Models PC–6, PC–6/A,

PC–6/B, and PC–6/C Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to certain Pilatus Aircraft Ltd.

(Pilatus) Models PC–6, PC–6/A, PC–6/B,

and PC–6/C series airplanes equipped

with turbo-prop engines. This AD

requires modifying the fuel system to

improve the venting between the

collector tank, the main wing tanks, and

the engine. This AD is the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for Switzerland.

The actions specified by this AD are

intended to prevent engine fuel

starvation during maximum climb and

descent caused by poor fuel tank

venting with low fuel levels, which

could result in a loss of engine power

during critical phases of flight.

DATES: Effective July 13, 1998.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of July 13,

1998.

ADDRESSES: Service information that

applies to this AD may be obtained from

Pilatus Aircraft Ltd., Customer Liaison

Manager, CH–6370 Stans, Switzerland;

telephone: +41 41–6196 233; facsimile:

+41 41–6103 351. This information may

also be examined at the Federal
Federal Register / Vol. 63, No. 107 /Thursday, June 4, 1998 /Rules and Regulations 30371

Aviation Administration (FAA), Central

Region, Office of the Regional Counsel,

Attention: Rules Docket No. 97–CE–09–

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

Kansas City, Missouri 64106; or at the

Office of the Federal Register, 800 North

Capitol Street, NW, suite 700,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: Mr.

Roman T. Gabrys, Aerospace Engineer,

FAA, Small Airplane Directorate,

Airplane Certification Service, 1201

Walnut, suite 900, Kansas City, Missouri

64106; telephone: (816) 426–6934;

facsimile: (816) 426–2169.

SUPPLEMENTARY INFORMATION:

Events Leading to the Issuance of This

AD

A proposal to amend part 39 of the

Federal Aviation Regulations (14 CFR

part 39) to include an AD that would

apply to certain Pilatus PC–6, PC–6/A,

PC–6/B, and PC–6/C series airplanes

was published in the Federal Register

as a notice of proposed rulemaking

(NPRM) on March 25, 1998 (63 FR

14385). The NPRM proposed to require

modifying the airplane’s fuel venting

system. Accomplishment of the

proposed action as specified in the

NPRM would be in accordance with

Pilatus PC–6 Service Bulletin No. PC–6–

SB–171, dated October 18, 1995.

The NPRM was the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for Switzerland.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposed rule or the FAA’s

determination of the cost to the public.

The FAA’s Determination

After careful review of all available

information related to the subject

presented above, the FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed except for minor

editorial corrections. The FAA has

determined that these minor corrections

will not change the meaning of the AD

and will not add any additional burden

upon the public than was already

proposed.

Differences Between the Service

Information, the Federal Office for Civil

Aviation (FOCA) AD, and This AD

Action

The manufacturer recommends the

modification of the fuel venting system

and the insertion of a temporary

revision to the AFM, and FOCA of

Switzerland requires the temporary

AFM insertion and the modification of

the fuel venting system for airplanes

operated in Switzerland. The FOCA of

Switzerland requires the AFM revision

be accomplished prior to further flight

and requires the revision to remain in

the AFM until the venting modification

is accomplished. The FOCA of

Switzerland additionally requires that

the modification be accomplished

within 90 days from receipt of the

service bulletin.

The FAA will not require insertion of

the temporary AFM revision; however,

the FAA will require the modification of

the fuel venting system at the calendar

compliance time that is required by the

FOCA of Switzerland.

Cost Impact

The FAA estimates that 29 airplanes

in the U.S. registry will be affected by

this AD, that it will take approximately

10 workhours per airplane to

accomplish this action, and that the

average labor rate is approximately $60

an hour. Parts cost approximately $614

per airplane. Based on these figures, the

total cost impact of this AD on U.S.

operators is estimated to be $35,206, or

$1,214 per airplane.

Compliance Time of This AD

Since the airplane’s poor fuel tank

venting causes engine fuel starvation

during flights at maximum climb and

decent, this unsafe condition is not a

result of the number of times the

airplane is operated. The chance of this

situation occurring is the same for an

airplane with 10 hours time-in-service

(TIS) as it would be for an airplane with

500 hours TIS. For this reason, the FAA

has determined that a compliance based

on calendar time should be utilized in

this AD in order to assure that the

unsafe condition is addressed on all

airplanes in a reasonable time period.

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 copy of the final

evaluation prepared for this action is

contained in the Rules Docket. A copy

of it may be obtained by contacting the

Rules Docket at the location provided

under the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Incorporation by reference,

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 a new airworthiness directive

(AD) to read as follows:

98–12–01 Pilatus Aircraft Ltd: Amendment

39–10558; Docket No. 97–CE–09–AD.

Applicability: Models PC–6, PC–6–H1, PC–

6–H2, PC–6/350, PC–6/350–H1, PC–6/350–

H2, PC–6/A, PC–6/A–H1, PC–6/A–H2, PC–6/

B–H2, PC–6/B1–H2, PC–6/B2–H2, PC–6/B2–

H4, PC–6/C–H2, and PC–6/C1–H2 airplanes,

serial numbers 001 through 915, certificated

in any category, that are equipped with

turbo-prop engines.

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 (c) 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 within the next 3

calendar months after the effective date of

this AD, unless already accomplished.

To prevent engine fuel starvation during

maximum climb and descent caused by poor

fuel tank venting with low fuel levels, which

could result in a loss of engine power during

critical phases of flight, accomplish the

following:

(a) Modify the fuel venting system in

accordance with the Accomplishment
30372 Federal Register / Vol. 63, No. 107 /Thursday, June 4, 1998 /Rules and Regulations

Instructions section in Pilatus PC–6 Service

Bulletin No. PC–6–SB–171, dated October 18,

1995.

(b) 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.

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an equivalent level of safety may be

approved by the Manager, Small Airplane

Directorate, 1201 Walnut, suite 900, Kansas

City, Missouri 64106. The request shall be

forwarded through an appropriate FAA

Maintenance Inspector, who may add

comments and then send it to the Manager,

Small Airplane Directorate.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Small Airplane

Directorate.

(d) Questions or technical information

related to Pilatus Service Bulletin No. PC–6–

SB–171, dated October 18, 1995, should be

directed to Pilatus Aircraft Ltd., Customer

Liaison Manager, CH–6370 Stans,

Switzerland; telephone: +41 41–6196 233;

facsimile: +41 41–6103 351. This service

information may be examined at the FAA,

Central Region, Office of the Regional

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

Kansas City, Missouri 64106.

(e) The modification required by this AD

shall be done in accordance with Pilatus

Service Bulletin No. PC–6–SB–171, dated

October 18, 1995. This incorporation by

reference was approved by the Director of the

Federal Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. Copies may be

obtained from Pilatus Aircraft Ltd., Customer

Liaison Manager, CH–6370 Stans,

Switzerland. Copies may be inspected at the

FAA, Central Region, Office of the Regional

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

Kansas City, Missouri, or at the Office of the

Federal Register, 800 North Capitol Street,

NW, suite 700, Washington, DC.

Note 3: The subject of this AD is addressed

in Swiss AD HB 95–451, dated November 1,

1995.

(f) This amendment becomes effective on

July 13, 1998.

Issued in Kansas City, Missouri, on May

22, 1998.

Michael Gallagher,

Manager, Small Airplane Directorate, Aircraft

Certification Service.

[FR Doc. 98–14607 Filed 6–3–98; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–09–AD; Amendment 39–

10561; AD 98–12–04]

RIN 2120–AA64

Airworthiness Directives; Glaser-Dirks

Flugzeugbau GmbH Model DG–500M

Gliders

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to all Glaser-Dirks Flugzeugbau

GmbH (Glaser-Dirks) Model DG–500M

gliders. This AD requires installing a

rudder gap seal and modifying the

cooling liquid reservoir mount. This AD

is the result of mandatory continuing

airworthiness information (MCAI)

issued by the airworthiness authority for

Germany. The actions specified by this

AD are intended to prevent rudder

vibrations caused by flow separation at

the rudder gap, which could result in

flutter with consequent loss of rudder

control.

DATES: Effective July 21, 1998.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of July 21,

1998.

ADDRESSES: Service information that

applies to this AD may be obtained from

DG Flugzeugbau GmbH, Postfach 4120,

D–76625 Bruchsal 4, Germany;

telephone: +49 7257–89–0; facsimile:

+49 7257–8922. This information may

also be examined at the Federal

Aviation Administration (FAA), Central

Region, Office of the Regional Counsel,

Attention: Rules Docket No. 98–CE–09–

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

Kansas City, Missouri 64106; or at the

Office of the Federal Register, 800 North

Capitol Street, NW., suite 700,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: Mr.

Mike Kiesov, Aerospace Engineer, Small

Airplane Directorate, Aircraft

Certification Service, FAA, 1201

Walnut, suite 900, Kansas City, Missouri

64106; telephone: (816) 426–6934;

facsimile: (816) 426–2169.

SUPPLEMENTARY INFORMATION:

Events Leading to the Issuance of This

AD

A proposal to amend part 39 of the

Federal Aviation Regulations (14 CFR

part 39) to include an AD that would

apply to all Glaser-Dirks Model DG–

500M gliders was published in the

Federal Register as a notice of proposed

rulemaking (NPRM) on March 20, 1998

(63 FR 13581). The NPRM proposed to

require installing a rudder gap seal and

modifying the cooling liquid reservoir

mount. Accomplishment of the

proposed installation as specified in the

NPRM would be required in accordance

with the maintenance manual.

Accomplishment of the proposed

modification to the cooling liquid

reservoir mount as specified in the

NPRM would be required in accordance

with Glaser-Dirks Working Instruction

No. 1 for TN 843/5, dated November 5,

1992, as referenced in Glaser-Dirks TN

No. 843/5, dated November 30, 1992.

The NPRM was the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for Germany.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposed rule or the FAA’s

determination of the cost to the public.

The FAA’s Determination

After careful review of all available

information related to the subject

presented above, the FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed except for minor

editorial corrections. The FAA has

determined that these minor corrections

will not change the meaning of the AD

and will not add any additional burden

upon the public than was already

proposed.

Compliance Time of This AD

Although the rudder vibrations

identified in this AD occur during flight,

this unsafe condition is not a result of

the number of times the glider is

operated. The chance of this situation

occurring is the same for a glider with

10 hours time-in-service (TIS) as it is for

a glider with 500 hours TIS. For this

reason, the FAA has determined that a

compliance based on calendar time

should be utilized in this AD in order

to assure that the unsafe condition is

addressed on all gliders in a reasonable

time period.

Cost Impact

The FAA estimates that 5 gliders in

the U.S. registry will be affected by this

AD, that it will take approximately 4

workhours per glider to accomplish this

action, and that the average labor rate is

approximately $60 an hour. Parts cost

approximately $40 per glider. Based on

these figures, the total cost impact of