Federal Register / Vol. 63, No. 140 /Wednesday, July 22, 1998 /Rules and Regulations 39229

assets adjusted in accordance with

§§ 615.5301(b)(3) and 615.5330(b)(2),

and weighted on the basis of risk in

accordance with § 615.5210(f).

(c) An institution shall compute its

risk-adjusted asset base, total surplus,

and core surplus ratios using average

daily balances for the most recent 3

months.

14. Section 615.5335 is revised to read

as follows:

§ 615.5335 Bank net collateral ratio.

(a) Each bank shall achieve and at all

times maintain a net collateral ratio of

at least 103 percent.

(b) At a minimum, a bank shall

compute its net collateral ratio as of the

end of each month. A bank shall have

the capability to compute its net

collateral ratio a day after the close of

a business day using the daily balances

outstanding for assets and liabilities for

that date.

Subpart L—Establishment of Minimum

Capital Ratios for an Individual

Institution

15. Section 615.5350 is amended by

adding a new paragraph (b)(7) to read as

follows:

§ 615.5350 General—Applicability.

* * * * *

(b) * * *

(7) An institution with significant

exposures to declines in net income or

in the market value of its capital due to

a change in interest rates and/or the

exercising of embedded or explicit

options.

Subpart M—Issuance of a Capital

Directive

16. Section 615.5355 is amended by

revising paragraph (a)(4) to read as

follows:

§ 615.5355 Purpose and scope.

(a) * * *

(4) Take other action, such as

reduction of assets or the rate of growth

of assets, restrictions on the payment of

dividends or patronage, or restrictions

on the retirement of stock, to achieve

the applicable capital ratios, or reduce

levels of interest rate and other risk

exposures, or strengthen management

expertise, or improve management

information and measurement systems;

or

* * * * *

PART 620—DISCLOSURE TO

SHAREHOLDERS

17. The authority citation for part 620

continues to read as follows:

Authority: Secs. 5.17, 5.19, 8.11 of the

Farm Credit Act (12 U.S.C. 2252, 2254,

2279aa–11); sec. 424 of Pub. L. 100–233, 101

Stat. 1568, 1656.

Subpart A—General

§ 620.1 [Amended]

18. Section 620.1 is amended by

removing the reference ‘‘§ 615.5201(j)’’

and adding in its place, the reference

‘‘§ 615.5201(l)’’ in paragraph (j).

Subpart B—Annual Report to

Shareholders

§ 620.5 [Amended]

19. Section 620.5 is amended by

removing the word ‘‘permanent’’ from

paragraphs (d)(2), (g)(4)(v), and

(g)(4)(vi); by revising paragraph (f)(3);

and by adding paragraph (f)(4) to read

as follows:

§ 620.5 Contents of the annual report to

shareholders.

* * * * *

(f) * * *

(3) For all banks (on a bank-only

basis):

(i) Permanent capital ratio.

(ii) Total surplus ratio.

(iii) Core surplus ratio.

(iv) Net collateral ratio.

(4) For all associations:

(i) Permanent capital ratio.

(ii) Total surplus ratio.

(iii) Core surplus ratio.

* * * * *

PART 627—TITLE V CONSERVATORS

AND RECEIVERS

20. The authority citation for part 627

continues to read as follows:

Authority: Secs. 4.2, 5.9, 5.10, 5.17, 5.51,

5.58 of the Farm Credit Act (12 U.S.C. 2183,

2243, 2244, 2252, 2277a, 2277a–7).

Subpart A—General

21. Section 627.2710 is amended by

revising paragraphs (b)(1) and (b)(3) to

read as follows:

§ 627.2710 Grounds for appointment of

conservators and receivers.

* * * * *

(b) * * *

(1) The institution is insolvent, in that

the assets of the institution are less than

its obligations to creditors and others,

including its members. For purposes of

determining insolvency, ‘‘obligations to

members’’ shall not include stock or

allocated equities held by current or

former borrowers.

* * * * *

(3) The institution is in an unsafe or

unsound condition to transact business,

including having insufficient capital or

otherwise. For purposes of this

regulation, ‘‘unsafe or unsound

condition’’ shall include, but shall not

be limited to, the following conditions:

(i) For banks, a net collateral ratio

below 102 percent.

(ii) For associations, a default by the

association of one or more terms of its

general financing agreement with its

affiliated bank that the Farm Credit

Administration determines to be a

material default.

(iii) For all institutions, permanent

capital of less than one-half the

minimum required level for the

institution.

(iv) For all institutions, a total surplus

ratio of less than 2 percent.

(v) For associations, stock

impairment.

* * * * *

Dated: July 15, 1998.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 98–19394 Filed 7–21–98; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–31–AD; Amendment 39–

10671; AD 98–15–20]

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 inspecting the

center of gravity (C.G.) tow release cable

pulley for correct positioning, and

replacing the C.G. tow release cable

pulley with one made of aluminum

either immediately or eventually

depending on the results of the

inspection. 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 the C.G. tow release

cable from coming off the pulley

because of incorrect positioning, which

could result in the pilot being unable to

release from tow operations.

DATES: Effective September 9, 1998.
39230 Federal Register / Vol. 63, No. 140 /Wednesday, July 22, 1998 /Rules and Regulations

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of September

9, 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–31–

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 Glaser-Dirks Model DG–500M

gliders was published in the Federal

Register as a notice of proposed

rulemaking (NPRM) on April 27, 1998

(63 FR 20545). The NPRM proposed to

require inspecting the C.G. tow release

cable pulley for correct positioning, and

replacing the C.G. tow release cable

pulley with one made of aluminum, part

no. S 30, either immediately or

eventually depending on the results of

the inspection. Accomplishment of the

proposed action as specified in the

NPRM would be in accordance with

Glaser-Dirks Technical Note No. 843–9,

dated November 21, 1997.

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 C.G. tow release cable

coming off the pulley would only be an

unsafe condition during flight and

would only occur after repeated glider

operation, the FAA has no basis to

determine the approximate number of

hours time-in-service (TIS) when the

unsafe condition is likely to occur. For

example, the unsafe condition

referenced in this AD could occur on a

glider with 10 hours TIS, but not occur

until 500 hours TIS on another glider.

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 2

workhours per glider to accomplish this

action, and that the average labor rate is

approximately $60 an hour. Parts cost

approximately $20 per glider. Based on

these figures, the total cost impact of

this AD on U.S. operators is estimated

to be $700, or $140 per glider.

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:

98–15–20 Glaser-Dirks Flugzeugbau GmbH:

Amendment 39–10671; Docket No. 98–

CE–31–AD.

Applicability: Model DG–500M gliders, all

serial numbers, certificated in any category.

Note 1: This AD applies to each glider

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

gliders 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 (e) 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 in the

body of this AD, unless already

accomplished.

To prevent the center of gravity (C.G.) tow

release cable from coming off the pulley

because of incorrect positioning, which could

result in the pilot being unable to release

from tow operations, accomplish the

following:

(a) Within the next 30 calendar days after

the effective date of this AD, inspect the C.G.

tow release cable pulley for correct

positioning in accordance with the

Instructions section of Glaser-Dirks Technical

Note No. 843–9, dated November 21, 1997. If

any tow release pulley is found out-of-center

during this inspection, prior to further flight,

replace the C.G. tow release cable pulley with

one made of aluminum, part no. S 30.

Accomplish this replacement in accordance

with the technical note.

(b) Within the next 6 calendar months after

the effective date of this AD, unless already

accomplished as required by paragraph (a) of

this AD, replace the C.G. tow release cable

pulley with one made of aluminum, part no.
Federal Register / Vol. 63, No. 140 /Wednesday, July 22, 1998 /Rules and Regulations 39231

S 30. Accomplish this replacement in

accordance with the Instructions section of

Glaser-Dirks Technical Note No. 843–9, dated

November 21, 1997.

(c) The replacement required by paragraph

(b) of this AD may be accomplished at any

time prior to the required time, including in

lieu of the inspection required by paragraph

(a) of this AD.

(d) 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 glider to a

location where the requirements of this AD

can be accomplished.

(e) An alternative method of compliance or

adjustment of the compliance times that

provides an equivalent level of safety may be

approved by the Manager, Small Airplane

Directorate, FAA, 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 Small Airplane Directorate.

(f) Questions or technical information

related to Glaser-Dirks Technical Note No.

843–9, dated November 21, 1997, should be

directed to DG Flugzeugbau GmbH, Postfach

4120, D–76625 Bruchsal 4, Germany;

telephone: +49 7257–89–0; facsimile: +49

7257–8922. 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.

(g) The inspection and replacement

required by this AD shall be done in

accordance with Glaser-Dirks Technical Note

No. 843–9, dated November 21, 1997. 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 DG

Flugzeugbau GmbH, Postfach 4120, D–76625

Bruchsal 4, Germany. 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 German AD 1998–023, dated January 15,

1998.

(h) This amendment becomes effective on

September 9, 1998.

Issued in Kansas City, Missouri, on July 14,

1998.

Marvin R. Nuss,

Acting Manager, Small Airplane Directorate,

Aircraft Certification Service.

[FR Doc. 98–19333 Filed 7–21–98; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–27–AD; Amendment 39–

10670; AD 98–15–19]

RIN 2120–AA64

Airworthiness Directives; AeromotIndustria Mecanico Metalurgica Ltda.

Model AMT–200 Powered Gliders

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to certain Aeromot-Industria

Mecanico Metalurgica Ltda. (Aeromot)

Model AMT–200 powered gliders. This

AD requires replacing certain flexible

hoses in the engine oil system with

flexible hoses with a larger internal

diameter. This AD is the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for Brazil. The

actions specified by this AD are

intended to prevent inefficiency of the

engine lubricating system because of

ineffective flexible hoses, which could

result in an in-flight engine shutdown

with consequent loss of powered glider

controllability.

DATES: Effective September 7, 1998.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of September

7, 1998.

ADDRESSES: Service information that

applies to this AD may be obtained from

Grupo Aeromot, Aeromot-Industria

Mecanico Metalurgica Ltda., Av. das

Industrias-1210, Bairro Anchieta, Caixa

Postal 8031, 90200-Porto Alegre-RS,

Brazil. 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–27–

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.

Curtis Jackson, Aerospace Engineer,

FAA, Atlanta Aircraft Certification

Office, One Crown Center, 1895 Phoenix

Blvd., suite 450, Atlanta, Georgia 30349;

telephone: (770) 703–6083; facsimile:

(770) 703–6097.

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 Aeromot Model AMT–

200 powered gliders was published in

the Federal Register as a notice of

proposed rulemaking (NPRM) on April

30, 1998 (63 FR 23685). The NPRM

proposed to require replacing any

engine oil system hose, part number

10702, 10703, or 10704, with a hose

with a larger internal diameter, part

number 10706, 10707, or 10708.

Accomplishment of the proposed action

as specified in the NPRM would be in

accordance with Aeromot Service

Bulletin B.S. No. 200–79–036, Issue

Date: January 30, 1997. The NPRM was the result of

mandatory continuing airworthiness

information (MCAI) issued by the

airworthiness authority for Brazil. 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.

Cost Impact

The FAA estimates that 18 powered

gliders in the U.S. registry will be

affected by this AD, that it will take

approximately 7 workhours per

powered glider to accomplish the

replacements, and that the average labor

rate is approximately $60 an hour.

Based on these figures, the total cost

impact of this AD on U.S. operators is

estimated to be $7,560, or $420 per

powered glider.

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