Federal Register / Vol. 60, No. 42 / Friday, March 3, 1995 / Proposed Rules 11941

need not be considered in determining

the limitation contained in 12 U.S.C.

371c with respect to the aggregate

amount of loans secured by stock or

obligations of an affiliate.

(c) Federal funds transactions

between affiliates. The limitations

contained in 12 U.S.C. 371c apply to the

sale of Federal funds by a national bank

to an affiliate of such bank.

(d) Deposits between affiliated banks.

A deposit made by a national bank in

an affiliate is considered to be a loan or

extension of credit to the affiliate under

12 U.S.C. 371c, except for a deposit

made in an affiliated domestic or foreign

bank in the ordinary course of

correspondent business or as otherwise

provided in 12 U.S.C. 371c(d)(1). Loans

or extensions of credit to an affiliate are

required to be secured under 12 U.S.C.

371c. However, 12 U.S.C. 90 and

applicable case law restrict the authority

of national banks to pledge their assets

to secure private deposits. Similar

restrictions on securing deposits also

apply to many state-chartered banks.

Consequently, a national bank may not

make a deposit in an affiliated national

bank unless made in the ordinary course

of correspondent business or as

provided in 12 U.S.C. 371c(d)(1). A

national bank may not make a deposit

in an affiliated state bank unless made

in the ordinary course of correspondent

business or as provided in 12 U.S.C.

371c(d)(1) or unless the affiliated state

bank can legally offer collateral for such

deposit in conformance with the

requirements of 12 U.S.C. 371c. A

national bank may not receive a deposit

from an affiliated bank, except in the

ordinary course of correspondent

business or as provided in 12 U.S.C.

371c(d)(1), because of its legal inability

to provide the required collateral.

Dated: February 17, 1995.

Eugene A. Ludwig,

Comptroller of the Currency.

[FR Doc. 95–4703 Filed 3–2–95; 8:45 am]

BILLING CODE 4810–33–P

SMALL BUSINESS ADMINISTRATION

13 CFR Parts 120 and 122

Business Loan Policy and Business

Loans; Facsimiles of SBA Forms

AGENCY: Small Business Administration

(SBA).

ACTION: Proposed rule.

SUMMARY: This proposed rule would

authorize SBA participating lenders to

use computer generated facsimile exact

copies of SBA application and closing

forms in making SBA guaranteed loans.

SBA lenders, under the proposed rule,

would agree to accept liability for a

substantial SBA loss attributable to

deficiencies in such forms. Under the

proposed rule, SBA would deny liability

to a lender which fails to use SBA

provided forms or computerized

facsimile exact copies of the SBA forms

if this failure would contribute to a

substantial loss by the SBA on the

guaranteed loan.

DATES: Comments must be submitted on

or before April 3, 1995.

ADDRESSES: Comments may be mailed to

John R. Cox, Associate Administrator for

Financial Assistance, Small Business

Administration, 409 Third Street, SW.,

Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: John

R. Cox, 202/205–6490.

SUPPLEMENTARY INFORMATION: For many

years, the SBA has required that its

participating lenders use SBA provided

forms in the SBA guaranteed business

loan program. With advances in

technology, SBA recognizes that such

forms may be reproduced as mirror

image facsimiles by computers and that

such reproductions may be in the best

interest of expedition of the SBA

guaranteed loan program.

Under this proposed rule, lenders

participating in the SBA guaranteed

business loan program would be

authorized to use SBA application and

closing forms which are computer

generated by the lenders or from

software prepared by third parties with

whom they have contracted. Because

SBA in the past has withheld

permission to computerize some

identified SBA forms, the proposed new

§ 122.5–6 would specifically include

these forms in the general authority to

utilize computer generated facsimile

copies: SBA Forms 147 (Note), 148

(Guaranty), 155 (Standby Agreement),

601 (Applicant’s Agreement of

Compliance), 928 (Mortgage), 1050

(Settlement Sheet), 1059 (Security

Agreement).

SBA’s guaranty to a participating

lender with respect to an SBA

guaranteed business loan is conditional

on the lender’s actions in properly and

prudently making, closing, servicing,

and liquidating a loan. Accordingly,

SBA’s rules release the agency from its

obligation to the lender to purchase the

guaranteed portion of a business loan

under certain prescribed conditions.

SBA is proposing to amend § 120.202–

5 of its regulations so that it would be

released from an obligation to a

participating lender to purchase the

guaranteed portion of a loan if the

lender fails to utilize SBA provided

forms or computer exact facsimile

copies thereof, and this failure

contributes to a substantial loss on the

loan by the SBA. This means that if the

computer generated SBA forms used by

a lender are not exact facsimile copies,

and such lack of conformity contributes

or may contribute to a substantial loss

by SBA on the loan, SBA could refuse

to honor its guaranty with respect to the

lender. In no event could SBA refuse to

purchase the guaranteed portion from a

registered holder (i.e., investor) in the

secondary market. SBA’s obligation to a

registered holder always unconditional,

and this proposed rule would have no

effect on such obligation.

Compliance With Executive Orders

12612, 12778 and 12866, the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq. and

the Paperwork Reduction Act, 44 U.S.C.

Ch. 35

For purposes of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., SBA

certifies that this proposed rule, if

promulgated in final form, will not have

a significant economic impact on a

substantial numbers of small entities.

SBA certifies that this proposed rule,

if promulgated in the final form, will

not constitute a significant regulatory

action for the purposes of Executive

Order 12866, since the proposed change

is not likely to result in an annual effect

on the economy of $100 million or

more.

SBA certifies that the proposed rule,

if promulgated in final form, would not

impose additional reporting or

recordkeeping requirements which

could be subject to the Paperwork

Reduction Act, 44 U.S.C. Chapter 35.

SBA certifies that this proposed rule

could not have federalism implications

warranting the preparation of a

Federalism Assessment in accordance

with Executive Order 12612.

Further, for purposes of Executive

Order 12778, SBA certifies that this

proposed rule, if promulgated in final

form, is drafted, to the extent

practicable, in accordance with the

standards set forth in section 2 of that

Order. (Catalog of Federal Domestic

Assistance Programs, No. 59.012)

List of Subjects

13 CFR Part 120

Loan programs-business, Small

Businesses.

13 CFR Part 122

Loan programs-business, Small

businesses.

Accordingly, pursuant to the

authority contained in section 5(b)(6) of

the Small Business Act (15 U.S.C.

634(b)(6)), SBA proposes to amend parts
11942 Federal Register / Vol. 60, No. 42 / Friday, March 3, 1995 / Proposed Rules

120 and 122, chapter I, title 13, Code of

Federal Regulations, as follows:

PART 120—BUSINESS LOAN POLICY

1. The authority citation for Part 120

would continue to read as follows:

Authority: 15 U.S.C. 634(b)(6) and 636 (a)

and (h).

2. Section 120.202–5 would be

amended by revising the introductory

text to read as follows:

§ 120.202–5 When SBA does not purchase.

SBA shall be released from its

obligation to purchase its share of the

guaranteed loan if the Lender has not

substantially complied with all of the

provisions of these regulations, the

Guaranty Agreement and the Loan

Authorization; has failed to disclose

material facts; has made material

misrepresentations to SBA with respect

to the loan; or has failed to utilize SBA

provided forms or exact computerized

facsimile copies thereof; provided that

any of these failures contributes or may

contribute to a substantial loss on the

loan by SBA; or upon the happening of

any one or more the following events:

* * * * *

PART 122—BUSINESS LOANS

1. The authority citation for part 122

would continue to read as follows:

Authority: 15 U.S.C. 634(b)(6), 636(a),

636(m).

2. Section 122.5–6 would be added to

read as follows:

§ 122.5–6 Facsimile Copies of SBA

Application Forms.

For guaranteed loans, a Participating

Lender may use computer generated

SBA application or closing forms which

are exact facsimile reproductions of

SBA’s forms. Lenders which use

computer generated application or

closing forms agree to accept liability for

a substantial SBA loss due to

deficiencies in the use of these forms.

(See § 120.202–5). All SBA Business

loan forms, including the following,

may be computer generated: 147 (Note),

148 (Guaranty), 155 (Standby

Agreement), 601 (Applicant’s

Agreement of compliance), 928

(Mortgage), 1050 (Settlement Sheet),

1059 (Security Agreement).

Dated: December 23, 1994.

Philip Lader,

Administrator.

[FR Doc. 95–5126 Filed 3–2–95; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 94–NM–226–AD]

Airworthiness Directives; Boeing

Model 747 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

certain Boeing Model 747 series

airplanes. This proposal would require

modification of the left and right

inboard elevator servo assemblies and

the hydraulic routing of the right

inboard elevator power control package

(PCP). This proposal is prompted by a

report of an uncommanded right

elevator deflection after takeoff and

reports of elevator/control column

bumps during landing gear retraction on

these airplanes. The actions specified by

the proposed AD are intended to

prevent uncommanded elevator

deflection, which could result in

structural damage and reduced

controllability of the airplane.

DATES: Comments must be received by

April 28, 1995.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 94–NM–

226–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Boeing Commercial Airplane Group,

P.O. Box 3707, Seattle, Washington

98124–2207; and Parker Hannifin

Corporation, Customer Support

Operations, 16666 Von Karman Avenue,

Irvine, California 92714. This

information may be examined at the

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington.

FOR FURTHER INFORMATION CONTACT:

Kathi N. Ishimaru, Aerospace Engineer,

Systems and Equipment Branch, ANM–

130S, FAA, Transport Airplane

Directorate, Seattle Aircraft Certification

Office, 1601 Lind Avenue, SW., Renton,

Washington 98055–4056; telephone

(206) 227–2674; fax (206) 227–1181.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 94–NM–226–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Transport Airplane Directorate,

ANM–103, Attention: Rules Docket No.

94–NM–226–AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

The FAA has received one report of

an uncommanded right elevator

deflection after takeoff and two reports

of elevator/control column bumps

during landing gear retraction on Boeing

Model 747–400 series airplanes

equipped with certain inboard elevator

Parker power control packages (PCP).

Investigation revealed that hydraulic

system number 4 is connected to the

sensitive side of the servo valve, which

may lead to an uncommanded elevator

motion when the return pressure for the

hydraulic system number 4 fluctuates.

This condition, if not corrected, could

result in structural damage and reduced

controllability of the airplane.

The FAA has reviewed and approved

Parker Service Bulletin 327400–27–171,

dated December 2, 1994, which

describes procedures for modification of