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

33211

Vol. 66, No. 120

Thursday, June 21, 2001

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Parts 700, 701, 712, 715, 723,

725, and 790

Definitions; Organization and

Operation of Federal Credit Unions;

Credit Union Service Corporations;

Supervisory Committee Audits and

Verifications; Member Business

Loans; Central Liquidity Facility;

Description of NCUA

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Proposed rule.

SUMMARY: The NCUA Board is

proposing amendments to various rules

to make technical corrections and add

and revise certain definitions. The

Board is proposing a rule to add a scope

section and definitions of ‘‘paid-in and

unimpaired capital and surplus’’ and

‘‘unimpaired capital and surplus’’ to its

rule containing definitions. TheBoard

also proposes to remove obsolete

references from this rule and to update

its rule concerning changes in officials

of newly chartered or troubled credit

unions. The Board proposes to correct a

citation in the supervisory committee

rule and make clarifications to the credit

union service organization (CUSO) rule

and the member business loan rule. In

addition, the Board proposes to update

and clarify the definition for ‘‘paid-in

and unimpaired capital and surplus’’ in

the Central Liquidity Facility (CLF) rule.

Finally, the Board proposes to change a

reference in Part 790 from the ‘‘Office of

Community Development Credit

Unions’’ to the ‘‘Office of Credit Union

Development.’’

DATES: Comments must be received on

or before August 20, 2001.

ADDRESSES: Direct comments to Becky

Baker, Secretary of the Board. Mail or

hand-deliver comments to: National

Credit Union Administration, 1775

Duke Street, Alexandria, Virginia

22314–3428. You may fax comments to

(703) 518–6319 or email comments to

regcomments@ncua.gov. Please send

comments by one method only.

FOR FURTHER INFORMATION CONTACT:

Regina Metz, Staff Attorney, Division of

Operations, Office of General Counsel,

at the above address or telephone: (703)

518-6561, or Herbert S. Yolles, Deputy

Director, Office of Examination and

Insurance, at the above address or

telephone: (703) 518–6360.

SUPPLEMENTARY INFORMATION:

Background

NCUA has a policy of continually

reviewing its regulations to ‘‘update,

clarify and simplify existing regulations

and eliminate redundant and

unnecessary provisions.’’ Interpretive

Rulings and Policy Statement (IRPS) 87–

2, Developing and Reviewing

Government Regulations. NCUA staff’s

most recent review of NCUA’s

regulations revealed that two parts

contain references related to section 116

of the Federal Credit Union Act (FCU

Act). 12 CFR 700.1, 701.14. These

references are obsolete because

Congress, when it enacted the Credit

Union Membership Access Act

(CUMAA), repealed section 116 and

replaced it with prompt corrective

action, section 216. P.L. 105–219; 12

U.S.C. 1790d.

In the definitions part of the

regulations, the proposed rule adds a

scope section and definitions for ‘‘paidin and unimpaired capital and surplus’’

and ‘‘unimpaired capital and surplus.’’

12 CFR part 700. The proposed rule

conforms definitions of paid-in and

unimpaired capital and surplus in the

CUSO and CLF rules to the proposed

definitions in the definitions part. 12

CFR 712.2(d); 12 CFR 725.2(o). The

proposed rule also corrects a citation in

the supervisory committee audit rule

and clarifies the member business loan

rule by changing a reference from

‘‘federally insured credit unions’’ to

‘‘federally insured state-chartered credit

unions.’’ 12 CFR 715.2(l), 723.4. The

proposed rule also updates NCUA’s

regulations by changing a reference in

Part 790 from the ‘‘Office of Community

Development Credit Unions’’ to the

office’s new name, the ‘‘Office of Credit

Union Development.’’

General Changes to Definitions Part

Part 700 provides definitions for some

terms used throughout NCUA’s

regulations. NCUA’s regulations include

several parts with their own definition

provisions, such as the supervisory

committee audit rule. 12 CFR part 715.

The proposed rule adds a scope section

to part 700 to alert readers to the fact

that many other definitions appear in

the particular parts where the terms are

used.

Part 700 currently contains the

definitions for ‘‘remaining maturity’’

and ‘‘gross income.’’ 12 CFR 700.1(h);

700.1(j). These definitions became

obsolete when Congress repealed

section 116 of the FCU Act, containing

statutory reserve requirements for

federal credit unions. 12 U.S.C. 1762

(repealed Aug. 7, 1998). The proposed

rule retains the remaining existing

definitions and alphabetizes them for

ease of reference.

‘‘Paid-In and Unimpaired Capital and

Surplus’’ and ‘‘Unimpaired Capital and

Surplus’’

The phrases ‘‘paid-in and unimpaired

capital and surplus’’ and ‘‘unimpaired

capital and surplus’’ appear multiple

times in the FCU Act and NCUA’s

regulations, often in the context of

establishing a limit on a federal credit

union’s financial commitment in an

activity. For example, a federal credit

union’s maximum investment in loans

to other credit unions, loans or

investments in CUSOs, and the

maximum amount it may borrow are

based on a percentage of its paid-in and

unimpaired capital and surplus. 12

U.S.C. 1757(7)(C), 1757(9), 1757(5)(D),

1757(7)(I); 12 CFR 741.2. By

comparison, a federal credit union’s

investment in state and municipal

securities, purchase of eligible

obligations, and interest in a loan

participation or total indebtedness to

one person is limited to a percentage of

its unimpaired capital and surplus. 12

U.S.C. 1757(7)(K), 1757(13); 12 CFR

701.23(b)(3), 701.22(b)(1), 701.23(f).

The Federal Credit Union Bylaws

(FCU Bylaws) set out a long-standing

definition for ‘‘paid in and unimpaired

capital’’ and, also, a definition for

‘‘surplus.’’ FCU Bylaws, art.

XVIII.§ 1.(g), (h). The FCU Bylaws

define ‘‘paid in and unimpaired

capital,’’ as of a given date, as ‘‘the

balance of the paid-in share accounts as

of such date, less any losses that may

have been incurred for which there is no

reserve or which have not been charged

against undivided earnings.’’ FCU

33212 Federal Register / Vol. 66, No. 120 / Thursday, June 21, 2001 / Proposed Rules

Bylaws art. XVIII.§ 1(g). The FCU

Bylaws also state that ‘‘surplus, as of a

given date means the credit balance of

the undivided earning account on such

date, after all losses have been provided

for and net earnings or net losses have

been added thereto or deducted

therefrom, as the case may be’’ and that

‘‘[r]eserves are not considered as a part

of the surplus.’’ FCU Bylaws art.

XVIII.§ 1(h).

A definition for ‘‘paid-in and

unimpaired capital and surplus’’ in

relation to the CLF appears in the FCU

Act and in the CLF regulation. 12 U.S.C.

1795a(3); 12 CFR 725.2(o). That

definition includes ‘‘deposits’’ in the

calculation because the definition

applies to state-chartered credit unions

as well as federal credit unions, and

some state-chartered credit unions are

authorized to hold deposits. There is

currently no definition solely for

‘‘unimpaired capital and surplus’’ in the

FCU Act, FCU Bylaws, or NCUA

regulations.

NCUA’s long-standing interpretation

of both ‘‘paid-in and unimpaired capital

and surplus’’ and ‘‘unimpaired capital

and surplus’’ is that both terms

generally consist of the paid-in balance

of shares plus undivided earnings. The

distinction between ‘‘paid-in and

unimpaired capital’’ and ‘‘unimpaired

capital,’’ in the context of credit unions,

is essentially historical and has no

current effect on the relevant

calculations under NCUA regulations.

Under the FCU Act and the FCU

Bylaws, federal credit unions may

permit members to subscribe to member

shares in installments. 12 U.S.C.

1759(a); FCU Bylaws, art. II, art. III.

Article III of the FCU Bylaws, currently

titled ‘‘Shares of Members,’’ was titled

‘‘Capital and Liability,’’ from the 1930s

through 1950s. In the early years of

credit union development, new

members would often subscribe to a

five-dollar share and pay in 25-cent

monthly installments. The term ‘‘paidin and unimpaired capital’’ was used to

clarify that shares that had been

subscribed to but not yet paid (i.e.,

future installments) were not included

as member capital. Because installment

payments of shares are in little, if any,

use today, the distinction has little

relevance. In any event, only amounts

actually paid into share accounts are

included under either term. The

proposed rule defines ‘‘unimpaired

capital and surplus’’ as meaning the

same as ‘‘paid-in and unimpaired

capital and surplus’’ and crossreferences its definition.

The Board believes it would improve

the clarity of NCUA’s regulations to

include definitions for ‘‘paid-in and

unimpaired capital and surplus’’ and

‘‘unimpaired capital and surplus’’ in the

general definitions part of the

regulations. The proposed definition for

‘‘paid-in and unimpaired capital and

surplus’’ is a refined statement of the

definitions currently in the FCU Bylaws,

but does not change the meaning of

those definitions or the agency’s longstanding interpretation. Placement of

the definitions in the regulations will

provide easier and more logical access

to users of the regulations than having

the definitions solely in the FCU

Bylaws. In addition, the Board believes

the proposed rule simplifies the

definitions by using appropriate

accounting terminology familiar to

persons who are referring to the

regulations. Proposed 12 CFR 700.1(f),

(j).

The proposed definition for paid-in

and unimpaired capital and surplus is

shares plus post-closing, undivided

earnings. The term ‘‘post-closing’’ is

simpler terminology that a credit union

person, an examiner, and an accounting

professional would understand to

encompass the closing of the books and

posting of all relevant and required

period losses to undivided earnings.

Post-closing undivided earnings

incorporates and means the same as the

language in the Bylaw provisions that

define surplus (‘‘after all losses have

been provided for and net earnings or

net losses have been added thereto or

deducted therefrom’’) and define

unimpaired capital (‘‘less any losses that

may have been incurred for which there

is no reserve or which have not been

charged against undivided earnings’’).

The proposed definition further

clarifies the meaning of paid-in and

unimpaired capital and surplus by

including the statement that: ‘‘This does

not include regular reserves or special

reserves required by law, regulation or

special agreement between the credit

union and its regulator or share

insurer.’’ This may seem redundant

since the term ‘‘undivided earnings’’

already excludes those regular and

special reserves. However, the Board

believes that this statement will lessen

possible confusion by distinguishing

between ‘‘retained earnings,’’ in the

prompt corrective action rule, which

include regular and special reserves,

and ‘‘undivided earnings’’ which do not

include them. The term ‘‘retained

earnings’’ is used in the prompt

corrective action rule in the definition

of the term ‘‘net worth.’’ 12 CFR

702.2(f). The prompt corrective action

rule requires federally insured credit

unions to maintain regular and special

reserves in 12 CFR 702.401.

Amendment to Definition of ‘‘Paid-In

and Unimpaired Capital and Surplus’’

in the CUSO Rule

NCUA’s CUSO regulation currently

states that ‘‘paid-in and unimpaired

capital and surplus means shares and

undivided earnings.’’ 12 CFR 712.2(d).

As noted previously, the term is

relevant because a federal credit union’s

lending or investment in CUSOs is

limited as a percentage of its paid-in

and unimpaired capital and surplus. 12

U.S.C. 1757(5)((D); 12 CFR 712.2(b); 12

U.S.C. 1757(7)(I); 12 CFR 712.2(a).

The Board believes it is helpful to

keep a definition for paid-in and

unimpaired capital and surplus in the

CUSO rule for easy reference. The

proposed definition in § 712.2(d)

conforms the CUSO provision so that it

mirrors the new proposed definition in

the general definition part. The

proposed rule revises the current rule

into two subsections for further clarity,

stating the requirement for GAAP

accounting for investments and loans as

a separate subsection.

Amendment to Definition of ‘‘Paid-In

and Unimpaired Capital and Surplus’’

in the CLF Rule

The CLF is a mixed-ownership

government corporation created to

improve the general financial stability of

credit unions by meeting their liquidity

needs. 12 CFR 725.1. Both state and

federally chartered credit union may

become members. 12 CFR 725.3.

The Board proposes to revise the

current definition in the CLF rule for

paid-in and unimpaired capital and

surplus. The current CLF rule combines

the Bylaw definition for paid-in and

unimpaired capital with the Bylaw

definition of surplus and is

substantively identical to those

provisions. 12 CFR 725.2(o). The

proposed rule essentially would

conform this definition to the definition

provided in the general definitions part

with the exception that deposits are

included. As noted previously, deposits

are included because some statechartered credit unions are authorized

to accept deposits. The proposed rule

states that paid-in and unimpaired

capital and surplus means shares and

deposits plus post-closing, undivided

earnings. The definition further states

that the term does not include regular

reserves or special reserves required by

law, regulation or special agreement

between the credit union and its

regulator or share insurer.

Technical Amendments to § 701.14

Section 701.14 requires a credit union

that is newly chartered or in troubled

Federal Register / Vol. 66, No. 120 / Thursday, June 21, 2001 / Proposed Rules 33213

condition to report any changes in its

board of directors, committee members,

or senior executive officers to NCUA.

NCUA first issued this regulation in

1990 and updated it in 1999. 55 FR

43084, Oct. 26, 1990; 64 FR 28715, May

27, 1999. The proposed rule deletes the

two obsolete references in § 701.14 to

section 116 of the FCU Act and replaces

them with references to section 216 of

the FCU Act, prompt corrective action.

Technical Amendments to § 715.2

Part 715 contains the rules for

federally insured credit unions for

supervisory committees’ audits and

verifications. Section 715.2(l) refers to

the definition of supervisory committee

in section 111(b) of the FCU Act. The

citation for that provision was incorrect

and should be 12 U.S.C. 1761(b).

Technical Amendments to § 723.4

Part 723 contains the rules for

federally insured credit unions’ member

business loans. If a federal credit union

has granted a member business loan,

paragraphs (a) through (g) of NCUA’s

general lending rule, § 701.21, also

apply to the loan to the extent that the

paragraphs are not inconsistent with the

member business loans rule. 12 CFR

723.4. If a federally insured statechartered credit union has granted a

member business loan, paragraphs (a)

through (g) of § 701.21 do not apply

unless the credit union is required to

comply with them under part 741. The

Board proposes to clarify § 723.4 by

changing the reference in the section

from ‘‘federally insured credit unions’’

to ‘‘federally insured state-chartered

credit unions.’’

Technical Amendments to

§ 790.2(b)(13)

The proposed rule updates NCUA’s

regulations by changing a reference in

part 790 from the ‘‘Office of Community

Development Credit Unions’’ to the

office’s new name, the ‘‘Office of Credit

Union Development.’’

Regulatory Procedures

Regulatory Flexibility Act

The Regulatory Flexibility Act

requires NCUA to prepare an analysis to

describe any significant economic

impact a proposed rule may have on a

substantial number of small entities

(primarily those under one million

dollars in assets). The proposed rule

will not have a significant economic

impact on a substantial number of small

credit unions, and therefore, a

regulatory flexibility analysis is not

required.

Paperwork Reduction Act

NCUA has determined that the

proposed rule would not increase

paperwork requirements under the

Paperwork Reduction Act of 1995 and

regulations of the Office of Management

and Budget.

Executive Order 13132

Executive Order 13132 encourages

independent regulatory agencies to

consider the impact of their actions on

state and local interests. In adherence to

fundamental federalism principles,

NCUA, an independent regulatory

agency as defined in 44 U.S.C. 3502(5),

voluntarily complies with the executive

order. This proposed rule would 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. NCUA has

determined that this proposed rule does

not constitute a policy that has

federalism implications for purposes of

the executive order.

The Treasury and General Government

Appropriations Act, 1999—Assessment

of Federal Regulations and Policies on

Families

The NCUA has determined that this

proposed rule will not affect family

well-being within the meaning of

section 654 of the Treasury and General

Government Appropriations Act, 1999,

Pub. L. 105–277, 112 Stat. 2681 (1998).

Agency Regulatory Goal

NCUA’s goal is to promulgate clear

and understandable regulations that

impose minimal regulatory burden. We

request your comments on whether the

proposed rule is understandable and

minimally intrusive.

List of Subjects

12 CFR Part 700

Credit unions, Definitions.

12 CFR Part 701

Credit unions.

12 CFR Part 712

Credit unions, Credit union service

organizations.

12 CFR Part 715

Audits, Credit unions, Supervisory

committees.

12 CFR Part 723

Credit, Credit unions.

12 CFR Part 725

Credit unions, Liquidity.

12 CFR Part 790

Credit unions.

By the National Credit Union

Administration Board on June 14, 2001.

Becky Baker,

Secretary of the Board.

Accordingly, the NCUA proposes to

amend 12 CFR parts 700, 701, 715, 723,

725, and 790 as follows:

PART 700—DEFINITIONS

1. The authority citation for part 700

continues to read as follows:

Authority: 12 U.S.C. 1752, 1757(6), 1766.

2. Redesignate current § 700.1 as

§ 700.2 and add a new § 700.1 to read

as follows:

§ 700.1 Scope.

The definitions in § 700.2 apply to

terms used in this chapter. Many

additional definitions appear in the

parts where the terms are used.

3. In newly designated § 700.2:

A. Remove paragraphs (h) and (j);

B. Redesignate paragraphs (e), (f), (g)

and (i) as paragraphs (g), (h), (i) and (e)

respectively; and

C. Add new paragraphs (f) and (j).

§ 700.2 Definitions.

* * * * *

(f) Paid-in and unimpaired capital

and surplus means shares plus postclosing, undivided earnings. This does

not include regular reserves or special

reserves required by law, regulation or

special agreement between the credit

union and its regulator or share insurer.

‘‘Paid-in and unimpaired capital and

surplus’’ for purposes of the Central

Liquidity Facility is defined in

§ 725.2(o) of this chapter.

* * * * *

(j) Unimpaired capital and surplus

means the same as ‘‘paid-in and

unimpaired capital and surplus,’’ as

defined in paragraph (f) of this section.

* * * * *

PART 701—ORGANIZATION AND

OPERATION OF FEDERAL CREDIT

UNIONS

4. The authority citation for part 701

continues to read as follows:

Authority: 12 U.S.C. 1752(5), 1755, 1756,

1757, 1759, 1761a, 1761b, 1766, 1767, 1782,

1784, 1787, and 1789. Section 701.6 is also

authorized by 31 U.S.C. 3717. Section 701.31

is also authorized by 15 U.S.C. 1601 et seq.,

42 U.S.C. 1861 and 42 U.S.C. 3601–3610.

Section 701.35 is also authorized by 42

U.S.C. 4311–4312.

5. In § 701.14, revise paragraphs

(b)(3)(ii) and (b)(4)(ii) to read as follows:

33214 Federal Register / Vol. 66, No. 120 / Thursday, June 21, 2001 / Proposed Rules

§ 701.14 Change in official or senior

executive officer in credit unions that are

newly chartered or are in troubled

condition.

* * * * *

(b) * * *

(3) * * *

(ii) Has been granted assistance as

outlined under sections 208 or 216 of

the Federal Credit Union Act.

(4) * * *

(ii) Has been granted assistance as

outlined under sections 208 or 216 of

the Federal Credit Union Act.

* * * * *

PART 712—CREDIT UNION SERVICE

ORGANIZATIONS (CUSOs)

6. The authority citation for part 712

continues to read as follows:

Authority: 12 U.S.C. 1756, 1757(5)(d) and

(7)(I), 1766, 1782, 1784, 1785, and 1786.

7. Amend § 712.2 by revising

paragraph (d) to read as follows:

§ 712.2 How much can an FCU invest in or

loan to CUSOs, and what parties may

participate?

* * * * *

(d) Measurement for calculating

regulatory limitation. For purposes of

paragraphs (a) and (b) of this section:

(1) Paid-in and unimpaired capital

and surplus means shares plus postclosing, undivided earnings (this does

not include regular reserves or special

reserves required by law, regulation or

special agreement between the credit

union and its regulator or share insurer);

and

(2) Total investments in and total

loans to CUSOs will be measured

consistent with GAAP.

* * * * *

PART 715—SUPERVISORY

COMMITTEE AUDITS AND

VERIFICATIONS

8. Revise the authority citation for

part 715 to read as follows:

Authority: 12 U.S.C. 1761(b), 1761d,

1782(a)(6).

9. Amend § 715.2(l) by revising the

first sentence to read as follows:

§ 715.2 Definitions used in this part.

* * * * *

(l) Supervisory committee refers to a

supervisory committee as defined in

Section 111(b) of the Federal Credit

Union Act, 12 U.S.C. 1761(b). * * *

* * * * *

PART 723—MEMBER BUSINESS

LOANS

10. The authority citation for part 723

continues to read as follows:

Authority: 12 U.S.C. 1756, 1757, 1757A,

1766, 1785, 1789.

11. Amend § 723.4 by revising the

second sentence to read as follows:

§ 723.4 What are the other applicable

regulations?

* * * Except as required by part 741

of this chapter, federally insured statechartered credit unions are not required

to comply with the provisions of

§ 701.21(a) through (g).

PART 725—NATIONAL CREDIT UNION

ADMINISTRATION CENTRAL

LIQUIDITY FACILITY

12. The authority citation for part 725

continues to read as follows:

Authority: 12 U.S.C. 1795–1795f.

13. Amend § 725.2 by revising

paragraph (o) to read as follows:

§ 725.2 Definitions.

* * * * *

(o) Paid-in and unimpaired capital

and surplus means shares and deposits

plus post-closing, undivided earnings.

This does not include regular reserves

or special reserves required by law,

regulation or special agreement between

the credit union and its regulator or

share insurer.

* * * * *

PART 790—DESCRIPTION OF NCUA;

REQUESTS FOR AGENCY ACTION

14. The authority citation for part 790

continues to read as follows:

Authority: 12 U.S.C. 1766, 1789, 1795f.

15. Amend § 790.2(b)(13) by revising

the heading to read as follows:

§ 790.2 Central and regional office

organization.

* * * * *

(b) * * *

(13) Office of Credit Union

Development. * * *

* * * * *

[FR Doc. 01–15444 Filed 6–20–01; 8:45 am]

BILLING CODE 7535–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 90–ANE–25–AD]

Airworthiness Directives; General

Electric Company (GE) CF6–45 and

CF6–50 Series Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Proposed rule; withdrawal.

SUMMARY: This action withdraws a

notice of proposed rulemaking (NPRM)

that proposed to revise an existing

airworthiness directive (AD), applicable

to GE CF6–45 and CF6–50 series

turbofan engines. That action would

have revised an existing AD to require

the same inspections on reworked high

pressure compressor (HPC) rear shafts as

those HPC rear shafts covered by the

current amendment. That proposal was

prompted by the need to ensure that the

additional reworked HPC rear shafts

receive the same inspections as part

numbers covered by the current

amendment. Since that NPRM was

issued, the FAA has determined that the

repetitive inspections of reworked HPC

rear shafts will instead be incorporated

into the final rule, AD 2001–12–20, for

a new design HPC air duct. Accordingly,

the proposed rule is withdrawn.

FOR FURTHER INFORMATION CONTACT:

Karen Curtis, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803; telephone (781) 238–7192; fax

(781) 238–7199.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

revise an existing AD, applicable to GE

CF6–45 and CF6–50 series turbofan

engines, was published in the Federal

Register on October 12, 2000 (65 FR

60597). The proposed rule would have

revised AD 91–10–03, R1, to add HPC

rear shaft rework P/N’s to the AD. That

action was prompted by the need to

ensure that the additional HPC rear

shafts receive the same inspections as

part numbers covered by the current

amendment. The proposed actions were

intended to detect and replace cracked

HPC rear shafts, which, if not replaced,

could lead to an uncontained engine

failure.

The FAA received a comment that

notes that a new effective date of the AD

revision could be misconstrued and

result in parts continuing in service

without the required inspections, for

longer than originally intended by the

current AD.

The FAA agrees. Upon further

consideration, the FAA has determined

that the proposed addition of repetitive

inspections of reworked HPC rear shafts

will instead be incorporated into the

final rule for a new design HPC air duct.

The final rule for the new design air

duct, AD 2001–12–20, requires that

existing HPC rear shafts be reworked for

compatibility with new design air ducts,

inspected at the time of rework, and

repetitively inspected at specified