Federal Register / Vol. 87, No. 129 / Thursday, July 7, 2022 / Rules and Regulations 40435 

request to your principal inspector or 

responsible Flight Standards Office, as 

appropriate. If sending information directly 

to the manager of the certification office, 

send it to ATTN: Program Manager, 

Continuing Operational Safety, FAA, New 

York ACO Branch, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; telephone 

516–228–7300. Before using any approved 

AMOC, notify your appropriate principal 

inspector, or lacking a principal inspector, 

the manager of the responsible Flight 

Standards Office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, New York ACO Branch, 

FAA; or Transport Canada Civil Aviation 

(TCCA); or Bombardier, Inc.’s TCCA Design 

Approval Organization (DAO). If approved by 

the DAO, the approval must include the 

DAO-authorized signature. 

(i) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) TCCA AD 

CF–2020–50, dated November 20, 2020, for 

related information. This MCAI may be 

found in the AD docket at https://

www.regulations.gov by searching for and 

locating Docket No. FAA–2022–0453. 

(2) For more information about this AD, 

contact Chirayu Gupta, Aerospace Engineer, 

Mechanical Systems and Administrative 

Services Section, FAA, New York ACO 

Branch, 1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; telephone 516–228– 

7300; email 9-avs-nyaco-cos@faa.gov. 

(j) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(i) Unreliable Airspeed procedure, Section 

03–12, Primary Flight Displays, Chapter 3— 

Emergency Procedures, of the Bombardier 

Global Express Airplane Flight Manual 

(AFM), Publication No. CSP 700–1, Revision 

107, dated February 22, 2021. 

Note 1 to paragraph (j)(2)(i): For obtaining 

the procedures specified in paragraphs 

(j)(2)(i) and (ii) of this AD for Bombardier 

Global Express AFM, Publication No. CSP 

700–1, use Document Identification No. GL 

700 AFM–1. 

(ii) Instruments procedure, Landing 

Distance Factors section, of the Emergency 

Procedures section of Supplement 20— 

Operations at Airport Elevations Above 

10,000 Feet, Chapter 7—Supplements, of the 

Bombardier Global Express AFM, Publication 

No. CSP 700–1, Revision 107, dated February 

22, 2021. 

(iii) Unreliable Airspeed procedure, 

Section 03–12, Primary Flight Displays, 

Chapter 3—Emergency Procedures, of the 

Bombardier Global Express AFM, Publication 

No. CSP 700–1A, Revision 107, dated 

February 22, 2021. 

Note 2 to paragraph (j)(2)(iii): For 

obtaining the procedures specified in 

paragraphs (j)(2)(iii) and (iv) of this AD for 

Bombardier Global Express AFM, Publication 

No. CSP 700–1A, use Document 

Identification No. GL 700 AFM–1A. 

(iv) Instruments procedure, Landing 

Distance Factors section, of the Emergency 

Procedures section of Supplement 20— 

Operations at Airport Elevations Above 

10,000 Feet, Chapter 7—Supplements, of the 

Bombardier Global Express AFM, Publication 

No. CSP 700–1A, Revision 107, dated 

February 22, 2021. 

(v) Unreliable Airspeed procedure, Section 

03–12, Primary Flight Displays, Chapter 3— 

Emergency Procedures, of the Bombardier 

Global 5000 AFM, Publication No. CSP 700– 

5000–1, Revision 68, dated February 22, 

2021. 

Note 3 to paragraph (j)(2)(v): For obtaining 

the procedures specified in paragraphs 

(j)(2)(v) and (vi) of this AD for Bombardier 

Global 5000 AFM, Publication No. CSP 700– 

5000–1, use Document Identification No. GL 

5000 AFM. 

(vi) Instruments procedure, Landing 

Distance Factors section, of the Emergency 

Procedures section of Supplement 20— 

Operations at Airport Elevations Above 

10,000 Feet, Chapter 7—Supplements, of the 

Bombardier Global 5000 AFM, Publication 

No. CSP 700–5000–1, Revision 68, dated 

February 22, 2021. 

(vii) Unreliable Airspeed procedure, 

Section 03–12, Instruments System, Chapter 

3—Emergency Procedures, of the Bombardier 

Global 5000 Featuring Global Vision Flight 

Deck AFM, Publication No. CSP 700–5000– 

1V, Revision 37, dated February 22, 2021. 

Note 4 to paragraph (j)(2)(vii): For 

obtaining the procedures specified in 

paragraphs (j)(2)(vii) and (viii) of this AD for 

Bombardier Global 5000 Featuring Global 

Vision Flight Deck AFM, Publication No. 

CSP 700–5000–1V, use Document 

Identification No. GL 5000 GVFD AFM. 

(viii) Instruments procedure, Landing 

Distance Factors section, of the Emergency 

Procedures section of Supplement 20— 

Operations at Airport Elevations Above 

10,000 Feet, Chapter 7—Supplements, of the 

Bombardier Global 5000 Featuring Global 

Vision Flight Deck AFM, Publication No. 

CSP 700–5000–1V, Revision 37, dated 

February 22, 2021. 

(ix) Unreliable Airspeed procedure, 

Section 03–12, Instruments System, Chapter 

3—Emergency Procedures, of the Bombardier 

Global 5500 AFM, Publication No. CSP 700– 

5500–1, Revision 8, dated November 11, 

2020. 

Note 5 to paragraph (j)(2)(ix): For 

obtaining the procedure specified in 

paragraph (j)(2)(ix) of this AD for Bombardier 

Global 5500 AFM, Publication No. CSP 700– 

5500–1, use Document Identification No. GL 

5500 AFM. 

(x) Unreliable Airspeed procedure, Section 

03–12, Instruments System, Chapter 3— 

Emergency Procedures, of the Bombardier 

Global 6000 AFM, Publication No. CSP 700– 

1V, Revision 37, dated February 22, 2021. 

Note 6 to paragraph (j)(2)(x): For obtaining 

the procedures specified in paragraphs 

(j)(2)(x) and (xi) of this AD for Bombardier 

Global 6000 AFM, Publication No. CSP 700– 

1V, use Document Identification No. GL 6000 

AFM. 

(xi) Instruments procedure, Landing 

Distance Factors section, of the Emergency 

Procedures section of Supplement 20— 

Operations at Airport Elevations Above 

10,000 Feet, Chapter 7—Supplements, of the 

Bombardier Global 6000 AFM, Publication 

No. CSP 700–1V, Revision 37, dated February 

22, 2021. 

(xii) Unreliable Airspeed procedure, 

Section 03–12, Instruments System, Chapter 

3—Emergency Procedures, of the Bombardier 

Global 6500 AFM, Publication No. CSP 700– 

6500–1, Revision 8, dated November 11, 

2020. 

Note 7 to paragraph (j)(2)(xii): For 

obtaining the procedure specified in 

paragraph (j)(2)(xii) of this AD for 

Bombardier Global 6500 AFM, Publication 

No. CSP 700–6500–1, use Document 

Identification No. GL 6500 AFM. 

(3) For service information identified in 

this AD, contact Bombardier Business 

Aircraft Customer Response Center, 400 CoˆteVertu Road West, Dorval, Que ́bec H4S 1Y9, 

Canada; telephone 1–514–855–2999; email 

ac.yul@aero.bombardier.com; internet 

https://www.bombardier.com. 

(4) You may view this service information 

at the FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 216th 

St., Des Moines, WA. For information on the 

availability of this material at the FAA, call 

206–231–3195. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email fr.inspection@nara.gov, or go to: 

https://www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

Issued on June 13, 2022. 

Christina Underwood, 

Acting Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2022–14274 Filed 7–6–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0450; Project 

Identifier MCAI–2021–00854–A; Amendment 

39–22092; AD 2022–13–06] 

RIN 2120–AA64 

Airworthiness Directives; Diamond 

Aircraft Industries Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

Diamond Aircraft Industries Inc. Model 

DA 40, DA 40 F, and DA 40 NG 

airplanes. This AD was prompted by 

mandatory continuing airworthiness 


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40436 Federal Register / Vol. 87, No. 129 / Thursday, July 7, 2022 / Rules and Regulations 

information (MCAI) originated by an 

aviation authority of another country to 

identify and correct an unsafe condition 

on an aviation product. The MCAI 

describes the unsafe condition as 

baggage nets installed with defective 

buckles, which may result in failure of 

the baggage net to restrain the baggage 

or cargo, which could lead to injury to 

the occupants in the case of an 

emergency landing. This AD requires 

identifying and replacing the affected 

part. The FAA is issuing this AD to 

address the unsafe condition on these 

products. 

DATES: This AD is effective August 11, 

2022. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of August 11, 2022. 

ADDRESSES: For service information 

identified in this final rule, contact 

Diamond Aircraft Industries Inc., Att: 

Thit Tun, 1560 Crumlin Road, London, 

N5V 1S2, Canada; phone: (519) 457– 

4000; email: T.Tun@

diamondaircraft.com. You may view 

this referenced service information at 

the FAA, Airworthiness Products 

Section, Operational Safety Branch, 901 

Locust, Kansas City, MO 64106. For 

information on the availability of this 

material at the FAA, call (817) 222– 

5110. Service information that is 

incorporated by reference is also 

available at https://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2022–0450. 

Examining the AD Docket 

You may examine the AD docket at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2022–0450; or in person at Docket 

Operations between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. The AD docket contains this 

final rule, the MCAI, any comments 

received, and other information. The 

address for Docket Operations is U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE, Washington, DC 

20590. 

FOR FURTHER INFORMATION CONTACT: 

Chirayu Gupta, Aviation Safety 

Engineer, New York ACO Branch, FAA, 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; phone: (516) 228– 

7300; email: Chirayu.A.Gupta@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all Diamond Aircraft Industries 

Inc. Model DA 40, DA 40 F, and DA 40 

NG airplanes. The NPRM published in 

the Federal Register on April 8, 2022 

(87 FR 20781). The NPRM was 

prompted by MCAI originated by 

Transport Canada, which is the aviation 

authority for Canada. Transport Canada 

issued AD CF–2021–24, dated July 21, 

2021 (referred to after this as ‘‘the 

MCAI’’), to address an unsafe condition 

on all Diamond Aircraft Industries Inc. 

Model DA 40, DA 40 D, DA 40 F, DA 

40 NG, and DA 62 airplanes. The MCAI 

states: 

Diamond Aircraft Industries Inc. (DAI) has 

received reports of defective buckles 

installed as part of the baggage nets on DA 

40 NG and DA 62 aeroplanes. An 

investigation revealed a quality escape in the 

manufacturing of the Quick Fix Baggage Net 

Assembly, part number (P/N) D44–2550–90– 

00 and P/N D67–2550–90–00_02, by the 

supplier. P/N D44–2550–90–00 baggage nets 

can also be installed on DA 40, DA 40 D and 

DA 40 F aeroplanes. The baggage nets 

installed with defective buckles may not 

maintain sufficient holding force to restrain 

the baggage or cargo that is carried in the 

same compartment as passengers, and 

consequently, may not provide adequate 

means to protect the passengers from injury. 

This condition, if not corrected, could 

result in the failure of the baggage net to 

restrain the baggage or cargo, which could 

lead to injury to the occupants in the case of 

an emergency landing. 

DAI undertook a voluntary campaign to 

replace all defective Quick Fix Baggage Net 

Assemblies. However, DAI was unable to 

complete the campaign in its entirety, and 

therefore, a number of aeroplanes with 

defective baggage nets that have not yet been 

replaced, remain in operation. 

As a result, DAI issued Mandatory Service 

Bulletin (MSB) 40–093, MSB D4–110, MSB 

F4–039, MSB 40NG–065 and MSB 62–028, 

providing accomplishment instructions to 

replace the defective Quick Fix Baggage Net 

Assemblies. 

This [Transport Canada] AD mandates the 

removal and replacement of the affected 

baggage nets. This [Transport Canada] AD 

also renders any affected baggage nets not 

eligible for installation as a replacement part 

on DA 40, DA 40 D, DA 40 F, DA 40 NG and 

DA 62 aeroplanes. 

You may examine the MCAI in the 

AD docket at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2022– 

0450. 

In the NPRM, the FAA proposed to 

require identifying and replacing 

affected baggage nets. The FAA is 

issuing this AD to prevent failure of the 

baggage net to restrain the baggage or 

cargo. This unsafe condition, if not 

corrected, could result in injury to 

occupants in the case of an emergency 

landing. 

Discussion of Final Airworthiness 

Directive 

Comments 

The FAA received one comment on 

the NPRM from an individual. The 

commenter supported the NPRM 

without change. 

Conclusion 

These products have been approved 

by the aviation authority of another 

country and are approved for operation 

in the United States. Pursuant to the 

FAA’s bilateral agreement with this 

State of Design Authority, it has notified 

the FAA of the unsafe condition 

described in the MCAI referenced 

above. The FAA reviewed the relevant 

data, considered the comment received, 

and determined that air safety requires 

adopting this AD as proposed. 

Accordingly, the FAA is issuing this AD 

to address the unsafe condition on these 

products. This AD is adopted as 

proposed in the NPRM. 

Related Service Information Under 1 

CFR Part 51 

The FAA reviewed the following 

service information issued by Diamond 

Aircraft Industries Inc., which specify 

procedures for identifying, removing, 

and replacing the affected baggage nets. 

• Mandatory Service Bulletin No. 

MSB 40–093, Rev. 0, dated July 6, 2021. 

• Mandatory Service Bulletin No. 

MSB F4–039, Rev. 0, dated July 6, 2021. 

• Mandatory Service Bulletin No. 

MSB 40NG–065, Rev. 1, dated July 6, 

2021. 

These documents are distinct since 

they apply to different airplane models. 

This service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in the ADDRESSES section. 

Differences Between This AD and the 

MCAI or Service Information 

The MCAI applies to Diamond 

Aircraft Industries Inc. Model DA 40, 

DA 40 D, DA 40 F, DA 40 NG, and DA 

62 airplanes. This AD does not apply to 

Model DA 62 airplanes. The FAA plans 

to address Model DA 62 airplanes in 

future rulemaking. 

In addition, the MCAI applies to the 

Model DA 40 D airplanes and this AD 

does not because it does not have an 

FAA type certificate. 

Costs of Compliance 

The FAA estimates that this AD 

affects 800 airplanes of U.S. registry. 

The FAA estimates the following 

costs to comply with this AD: 


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Federal Register / Vol. 87, No. 129 / Thursday, July 7, 2022 / Rules and Regulations 40437 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

airplane 

Cost on U.S. 

operators 

Replace Model DA 40, DA 40 F, and DA 40 

NG baggage net.

0.25 work-hour × $85 per hour = $21.25 ....... $382 $403.25 $322,600 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII: 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

The FAA is issuing this rulemaking 

under the authority described in 

Subtitle VII, Part A, Subpart III, Section 

44701: General requirements. Under 

that section, Congress charges the FAA 

with promoting safe flight of civil 

aircraft in air commerce by prescribing 

regulations for practices, methods, and 

procedures the Administrator finds 

necessary for safety in air commerce. 

This regulation is within the scope of 

that authority because it addresses an 

unsafe condition that is likely to exist or 

develop on products identified in this 

rulemaking action. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect 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. 

For the reasons discussed above, I 

certify this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Will not affect intrastate aviation 

in Alaska, 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. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 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. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive: 

2022–13–06 Diamond Aircraft Industries 

Inc.: Amendment 39–22092; Docket 

No. FAA–2022–0450; Project Identifier 

MCAI–2021–00854–A. 

(a) Effective Date 

This airworthiness directive (AD) is 

effective August 11, 2022. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Diamond Aircraft 

Industries Inc. Model DA 40, DA 40 F, and 

DA 40 NG airplanes (including Model DA 40 

D airplanes that have been converted to 

Model DA 40 NG airplanes), all serial 

numbers, certificated in any category. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 2550, Cargo Compartments. 

(e) Unsafe Condition 

This AD was prompted by mandatory 

continuing airworthiness information (MCAI) 

originated by an aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as baggage 

nets installed with defective buckles. The 

FAA is issuing this AD to prevent failure of 

the baggage net to restrain the baggage or 

cargo. This unsafe condition, if not corrected, 

could result in injury to occupants in the 

case of an emergency landing. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Definitions 

The following are ‘‘affected baggage nets’’ 

for purposes of this AD: 

(1) Quick fix baggage net assembly part 

number (P/N) D44–2550–90–00 with a date 

of manufacture of December 2015, November 

2016, or March 2017; and 

(2) Quick fix baggage net assembly P/N 

D67–2550–90–00_02 with a date of 

manufacture of June 2016. 

(h) Required Actions 

(1) Within 12 months after the effective 

date of this AD or within 50 hours time-inservice (TIS) after the effective date of this 

AD, whichever occurs first, inspect each 

baggage net to determine whether an affected 

baggage net is installed on your airplane. 

Note to paragraph (h)(1): The date of 

manufacture is located on the label with the 

abbreviation ‘‘DMF.’’ 

(i) If an affected baggage net is installed, 

before further flight, remove the baggage net 

from service. 

(ii) Before the next flight carrying baggage 

or cargo in the baggage compartment, install 

a baggage net that is not an affected baggage 

net in accordance with Figure 1 of the 

Accomplishment Instructions in the 

applicable service information in paragraph 

(i) of this AD. 

(2) As of the effective date of this AD, do 

not install an affected baggage net on any 

airplane. 

(i) Service Information 

(1) Diamond Aircraft Industries Mandatory 

Service Bulletin No. MSB 40–093, Rev. 0, 

dated July 6, 2021, for Model DA 40 

airplanes. 

(2) Diamond Aircraft Industries Mandatory 

Service Bulletin No. MSB F4–039, Rev. 0, 

dated July 6, 2021, for Model DA 40 F 

airplanes. 

(3) Diamond Aircraft Industries Mandatory 

Service Bulletin No. MSB 40NG–065, Rev. 1, 

dated July 6, 2021, for Model DA 40 NG 

airplanes. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, New York ACO Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or local Flight Standards 

District Office, as appropriate. If sending 

information directly to the manager of the 

certification office, send it to the attention of 

the person identified in paragraph (k)(1) of 

this AD. 

(2) For any requirement in this AD to 

obtain corrective actions from a 

manufacturer, the action must instead be 

accomplished using a method approved by 

the Manager, New York ACO Branch, FAA; 

or Transport Canada Civil Aviation (TCCA); 

or Diamond Aircraft Industries Inc.’s Design 

Organization Approval (DAO). If approved by 

the DAO, the approval must include the 

DAO-authorized signature. 

(k) Related Information 

(1) For more information about this AD, 

contact Chirayu Gupta, Aviation Safety 

Engineer, New York ACO Branch, FAA, 1600 

Stewart Avenue, Suite 410, Westbury, NY 


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40438 Federal Register / Vol. 87, No. 129 / Thursday, July 7, 2022 / Rules and Regulations 

1The Uniform Offering Circular was published as 

a final rule on January 5, 1993 (58 FR 412). 

2 In 2009, Treasury amended the UOC to remove 

a provision regarding auction bids that fulfilled a 

guarantee. The guarantee provision was intended 

for multiple-price auctions which Treasury no 

longer conducts. 74 FR 26084 (June 1, 2009). 

3On March 1, 2011, Treasury published in the 

Federal Register a final amendment to the UOC that 

established a minimum interest rate of 1⁄8 of one 

percent for all new Treasury note and bond issues, 

including inflation-protected securities (76 FR 

11079). 

11590; phone: (516) 228–7300; email: 

chirayu.a.gupta@faa.gov. 

(2) Refer to Transport Canada AD CF– 

2021–24, dated July 21, 2021, for more 

information. You may view the Transport 

Canada AD at https://www.regulations.gov in 

Docket No. FAA–2022–0450. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Diamond Aircraft Industries Mandatory 

Service Bulletin No. MSB 40–093, Rev. 0, 

dated July 6, 2021. 

(ii) Diamond Aircraft Industries Mandatory 

Service Bulletin No. MSB 40NG–065, Rev. 1, 

dated July 6, 2021. 

(iii) Diamond Aircraft Industries 

Mandatory Service Bulletin No. MSB F4–039, 

Rev. 0, dated July 6, 2021. 

(3) For service information identified in 

this AD, contact Diamond Aircraft Industries 

Inc., Att: Thit Tun, 1560 Crumlin Road, 

London, N5V 1S2, Canada; phone: (519) 457– 

4000; email: T.Tun@diamondaircraft.com. 

(4) You may view this service information 

at the FAA, Airworthiness Products Section, 

Operational Safety Branch, 901 Locust, 

Kansas City, MO 64106. For information on 

the availability of this material at the FAA, 

call (817) 222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email: fr.inspection@nara.gov, or go to: 

https://www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

Issued on June 13, 2022. 

Christina Underwood, 

Acting Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2022–14335 Filed 7–6–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 356 

Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds 

AGENCY: Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury (Treasury) is issuing in final 

form several technical amendments to 

the terms and conditions for the sale 

and issuance to the public of marketable 

Treasury securities. These amendments 

are designed to modernize the 

regulations, enhance clarity, and 

improve consistency in the use of 

terminology. 

DATES: Effective August 8, 2022. 

ADDRESSES: This final rule is available at 

http://www.treasurydirect.gov. 

FOR FURTHER INFORMATION CONTACT: Lori 

Santamorena (Executive Director), Kurt 

Eidemiller (Associate Director), Kevin 

Hawkins (Associate Director) or John 

Garrison (Associate Director), 

Government Securities Regulations 

Staff, Bureau of the Fiscal Service, 

Department of the Treasury, (202) 504– 

3632 or email us at govsecreg@

fiscal.treasury.gov. 

SUPPLEMENTARY INFORMATION: Chapter 

31 of Title 31 of the United States Code 

authorizes the Secretary of the Treasury 

to issue United States obligations, and 

to offer them for sale under such terms 

and conditions as the Secretary may 

prescribe. Title 31 CFR part 356, also 

referred to as the Uniform Offering 

Circular (UOC), sets out the terms and 

conditions for the sale and issuance by 

Treasury to the public of marketable, 

book-entry Treasury bills, notes, and 

bonds.1 The UOC, together with the 

auction announcement for each 

Treasury security auction, represents a 

comprehensive statement of those terms 

and conditions. Following a review of 

the UOC, Treasury is issuing in final 

form eight technical amendments. 

The first change removes specific 

references to the Legacy Treasury Direct 

and TreasuryDirect systems. This 

change removes outdated references to 

legacy technology and reduces the 

likelihood that Treasury would need to 

make future regulation changes based 

on technological developments. 

The second change removes 

references to ‘‘press release’’ throughout 

part 356 to allow for a range of 

distribution methods for Treasury 

auction announcements and results. 

The third change modifies § 356.5 

paragraphs (b)(2) and (c)(2) to clarify 

that Treasury does not conduct 

unscheduled reopenings of Treasury 

inflation-protected securities (TIPS). In 

a reopening, Treasury auctions an 

additional amount of an outstanding 

security. Treasury’s planned auction 

schedule includes regularly scheduled 

reopenings. In an unscheduled 

reopening, the highest accepted yield 

determined in the auction of a new, 

non-indexed note or bond 

coincidentally aligns with the yield of 

an outstanding non-indexed note or 

bond with the same maturity date. In 

that situation, Treasury reopens the 

outstanding non-indexed note or bond 

rather than issuing a new security. 

Because TIPS have a 6-digit, inflationindex ratio set when each security is 

issued, there is an extremely low 

probability that a previously issued 

TIPS will have an initial index ratio, 

coupon rate, and maturity date that 

coincidentally aligns with a newly 

issued TIPS. Therefore, Treasury does 

not conduct unscheduled reopenings of 

TIPS. 

The fourth change increases the 

noncompetitive bid limit for all 

marketable Treasury securities auctions 

from $5 million to $10 million 

considering the increase in auction sizes 

and inflation over several decades. This 

change aims to encourage participation 

by smaller investors by expanding their 

opportunities to bid noncompetitively. 

The fifth change adds clarifying 

language at § 356.14(a) to confirm that 

the bidder has been properly identified 

when submitting a customer bid in an 

auction. Currently, the UOC does not 

directly address the identification of 

customers on bids that satisfy guarantee 

arrangements.2 To eliminate any 

potential ambiguity regarding such bids, 

the UOC is being amended to explicitly 

require the identification of customers 

on bids that satisfy guarantee 

arrangements. Treasury expects any 

entity guaranteeing bids to confirm that 

the customer has been properly 

identified on the bid and raise any 

questions with Treasury staff. 

The sixth change revises paragraph 

§ 356.20(b) to clarify that new inflationprotected notes and bonds are issued 

with a minimum interest rate of 1⁄8 of 

one percent.3

The seventh change revises certain 

examples in Appendix B to part 356 to 

replace references to ‘‘inflationindexed’’ with ‘‘inflation-protected’’ for 

consistency. 

The eighth change adds clarifying 

language in Appendix B to part 356 to 

the examples for calculating the 

investment rate (coupon-equivalent 

yield) for Treasury bills. The clarifying 

language explains how to calculate 

variable y when the year following the 

issue date of a Treasury bill is a leap 

year. 

To provide market participants and 

Treasury sufficient time to modify their 

systems and to make any other 


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