16780 Federal Register / Vol. 60, No. 63 / Monday, April 3, 1995 / Rules and Regulations

19(b)(2)(vii)., paragraph 2. is revised to

read as follows:

Section 226.19—Certain Residential

Mortgage and Variable-Rate Transactions

* * * * *

Paragraph 19(b)(2)(vii).

* * * * *

2. Negative amortization and interest rate

carryover. A creditor must disclose, where

applicable, the possibility of negative

amortization. For example, the disclosure

might state, ‘‘If any of your payments is not

sufficient to cover the interest due, the

difference will be added to your loan

amount.’’ Loans that provide for more than

one way to trigger negative amortization are

separate variable-rate programs requiring

separate disclosures. (See the commentary to

§ 226.19(b)(2) for a discussion on the

definition of a variable-rate loan program and

the format for disclosure.) If a consumer is

given the option to cap monthly payments

that may result in negative amortization, the

creditor must fully disclose the rules relating

to the option, including the effects of

exercising the option (such as negative

amortization will occur and the principal

loan balance will increase); however, the

disclosure in § 226.19(b)(2)(viii) need not be

provided.

* * * * *

12. In Supplement I to Part 226, under

Section 226.22—Determination of the

Annual Percentage Rate, under

Paragraph 22(a)(1)., in paragraph 5., the

reference ‘‘Footnote 45a’’ is revised to

read ‘‘Footnote 45d’’.

13. In Supplement I to Part 226, under

Section 226.23—Right of Rescission, the

following amendments are made:

a. Under Paragraph 23(a)(1).,

paragraph 3.is revised;

b. Under Paragraph 23(a)(1).,

paragraph 4. is revised;

c. Under Paragraph 23(d)(2)., in

paragraph 1., the third sentence is

revised; and

d. Under 23(f) Exempt transactions.,

in paragraph 4., two new sentences are

added following the first sentence, and

a new sentence is added at the end of

the paragraph.

The additions and revisions read as

follows:

* * * * *

Section 226.23—Right of Rescission

* * * * *

Paragraph 23(a)(1).

* * * * *

3. Principal dwelling. A consumer can only

have one principal dwelling at a time. (But

see comment 23(a)(1)–4.) A vacation or other

second home would not be a principal

dwelling. A transaction secured by a second

home (such as a vacation home) that is not

currently being used as the consumer’s

principal dwelling is not rescindable, even if

the consumer intends to reside there in the

future. When a consumer buys or builds a

new dwelling that will become the

consumer’s principal dwelling within one

year or upon completion of construction, the

new dwelling is considered the principal

dwelling if it secures the acquisition or

construction loan. In that case, the

transaction secured by the new dwelling is a

residential mortgage transaction and is not

rescindable. For example, if a consumer

whose principal dwelling is currently A

builds B, to be occupied by the consumer

upon completion of construction, a

construction loan to finance B and secured

by B is a residential mortgage transaction.

Dwelling, as defined in § 226.2, includes

structures that are classified as personalty

under state law. For example, a transaction

secured by a mobile home, trailer, or

houseboat used as the consumer’s principal

dwelling may be rescindable.

4. Special rule for principal dwelling.

Notwithstanding the general rule that

consumers may have only one principal

dwelling, when the consumer is acquiring or

constructing a new principal dwelling, any

loan subject to Regulation Z and secured by

the equity in the consumer’s current

principal dwelling (for example, a bridge

loan) is subject to the right of rescission

regardless of the purpose of that loan. For

example, if a consumer whose principal

dwelling is currently A builds B, to be

occupied by the consumer upon completion

of construction, a construction loan to

finance B and secured by A is subject to the

right of rescission. A loan secured by both A

and B is, likewise, rescindable.

* * * * *

Paragraph 23(d)(2).

1. Refunds to consumer. * * * ‘‘Any

amount’’ includes finance charges already

accrued, as well as other charges, such as

broker fees, application and commitment

fees, or fees for a title search or appraisal,

whether paid to the creditor, paid directly to

a third party, or passed on from the creditor

to the third party. * * *

* * * * *

23(f) Exempt transactions.

* * * * *

4. New advances. * * * The original

creditor is the creditor to whom the written

agreement was initially made payable. In a

merger, consolidation or acquisition, the

successor institution is considered the

original creditor for purposes of the

exemption in § 226.23(f)(2). * * * The

general rescission notice (model form H–8) is

the appropriate form for use by creditors not

considered original creditors in refinancing

transactions.

* * * * *

14. In Supplement I to Part 226, under

Appendix J, under the heading

References, under 1981 changes:, the

last sentence is revised to read as

follows:

* * * * *

Appendix J—Annual Percentage Rate

Computations for Closed-End Credit

Transactions

* * * * *

References

* * * * *

1981 changes: * * * Paragraph (b)(5)(vi)

has been revised to permit creditors in singleadvance, single-payment transactions in

which the term is less than a year and is

equal to a whole number of months, to use

either the 12-month method or the 365-day

method to compute the number of unitperiods per year.

By order of the Board of Governors of the

Federal Reserve System, acting through the

Secretary of the Board under delegated

authority, March 28, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95–8071 Filed 3–31–95; 8:45 am]

BILLING CODE 6210–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 94–ANE–17; Amendment 39–

9182; AD 95–07–03]

Airworthiness Directives; AlliedSignal

Aerospace GTCP85 Series Auxiliary

Power Units

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to AlliedSignal Aerospace

(formerly Garrett Auxiliary Power

Division and Garrett Turbine Engine

Co.) GTCP85 series auxiliary power

units (APU), that requires modifying the

APU to install an exhaust centerbody.

This amendment is prompted by reports

of two uncontained APU failures where

turbine wheel fragments exited the APU

exhaust axially and damaged the

aircraft. The actions specified by this

AD are intended to prevent an axially

uncontained APU failure and damage to

the aircraft.

DATES: Effective May 3, 1995.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of May 3,

1995.

ADDRESSES: The service information

referenced in this AD may be obtained

from AlliedSignal Aerospace Services,

P.O. Box 52170, Phoenix, AZ 85072–

2170, Attn: Dept. 65–71, Mailstop 1802–

AA. This information may be examined

at the Federal Aviation Administration

(FAA), New England Region, Office of

the Assistant Chief Counsel, 12 New

England Executive Park, Burlington,

MA; or at the Office of the Federal

Register, 800 North Capitol Street NW.,

suite 700, Washington, DC.
Federal Register / Vol. 60, No. 63 / Monday, April 3, 1995 / Rules and Regulations 16781

FOR FURTHER INFORMATION CONTACT:

Robert Baitoo, Aerospace Engineer, Los

Angeles Aircraft Certification Office,

FAA, Transport Airplane Directorate,

3960 Paramount Blvd., Lakewood, CA

90712–4137; telephone (310) 627–5245;

fax (310) 627–5210.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to AlliedSignal

Aerospace (formerly Garrett Auxiliary

Power Division and Garrett Turbine

Engine Co.) GTCP85 series auxiliary

power units (APU) was published in the

Federal Register on July 28, 1994 (59 FR

38384). That action proposed to require

modifying the APU to install an exhaust

centerbody to contain turbine wheel

fragments from exiting the APU axially.

Due to the increased risk associated

with airborne failures, flight operable

APU’s would be required to be modified

within 24 months after the effective date

of the AD, and within 36 months after

the effective date of this AD for APU’s

that are ground operable only. These

actions would be performed in

accordance with AlliedSignal Aerospace

Alert Service Bulletin (ASB) No.

GTCP85–49–A6831, dated March 17,

1994, applicable to APU’s installed on

McDonnell Douglas DC–9/MD–80 series

aircraft, and AlliedSignal Aerospace

Service Bulletin (SB) No. GTCP85–49–

6919, dated May 17, 1994, applicable to

APU’s installed on several other aircraft

makes and models.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. Due

consideration has been given to the

comments received.

One commenter states that the APU’s

installed on Boeing 737 series aircraft

should not be affected by this AD

because APU turbine rotor axial

uncontainment does not pose a hazard

to Boeing 737 series aircraft. The FAA

concurs and has revised the AD

accordingly.

One commenter states that the APU’s

installed on British Aerospace BAC 1–

11 series aircraft should also not be

affected by this AD because APU

turbine rotor axial uncontainment does

not pose a hazard to British Aerospace

BAC 1–11 series aircraft. The FAA

concurs and has revised the AD

accordingly.

One commenter states that the AD

should be applicable only to APU’s with

the cast material MAR–M–247 turbine

wheel, as only these turbine wheels

have experienced uncontained failures.

The FAA concurs and the applicability

paragraph of this final rule has been

revised accordingly.

Two commenters state that the AD

should clearly specify the APU model

numbers affected and agree with the

model numbers listed in the applicable

service bulletins. The FAA concurs and

the applicability paragraph of this final

rule has been revised accordingly.

One commenter states that the AD

should not be applicable to APU’s

installed on Boeing 727 aircraft, as the

APU is ground operable only. The FAA

does not concur. An APU turbine wheel

axial uncontainment may pose an

unsafe condition even with the aircraft

on the ground.

One commenter states that the

AlliedSignal Aerospace ASB No.

GTCP85–49–A6707, mandated by AD

93–07–13, provides adequate

containment capability, and that

requiring implementation of

AlliedSignal Aerospace SB No.

GTCP85–49–6919 is unnecessary. The

FAA does not concur. Airworthiness

directive 93–07–13 mandates

compliance with Garrett SB No.

GTCP85–49–A6706, not AlliedSignal

Aerospace ASB No. GTCP85–49–A6707

(Garrett has recently undergone a name

change to AlliedSignal Aerospace). Even

reading the comment as referring to

AlliedSignal Aerospace ASB No.

GTCP85–49–A6707, that SB only

addresses radial, not axial,

uncontainment. AlliedSignal Aerospace

SB No. GTCP85–49–6919 addresses

axial uncontainment.

One commenter states that the final

rule should allow use of subsequent

revisions to the SB’s in order to avoid

unnecessary alternate method of

compliance requests. The FAA does not

concur. If the SB’s incorporated by

reference in this AD are further revised,

those revisions can be reviewed by the

FAA in advance of publication and

authorized as constituting alternate

methods of compliance, thereby

alleviating the need for each individual

operator to obtain a separate approval to

use the revised SB. Until those future

revisions exist, however, the FAA

cannot incorporate them into this AD.

One commenter states that the AD

should not be applicable to APU’s with

the standard two-piece turbine wheel.

The two-piece turbine wheel has not

experienced the failure mode addressed

in the AD. The FAA concurs and has

revised the applicability paragraph to

limit the AD to APU’s equipped with

one-piece cast turbine wheels.

Two commenters concur with the rule

as proposed.

Since issuance of the NPRM, the FAA

has increased its labor estimate to $60

per work hour. The economic analysis

of this AD has been revised accordingly.

In addition, AlliedSignal Aerospace

has issued Revision 1 to SB No.

GTCP85–49–6919, and ASB No.

GTCP85–49–A6831, both dated January

15, 1995. This final rule now references

these revised service documents.

After careful review of the available

data, including the comments noted

above, the FAA has determined that air

safety and the public interest require the

adoption of the rule with the changes

described previously. The FAA has

determined that these changes will

neither increase the economic burden

on any operator nor increase the scope

of the AD.

There are approximately 3,000 APU’s

of the affected design in the worldwide

fleet. The FAA estimates that 1,500

APU’s installed on aircraft of U.S.

registry will be affected by this AD, that

it will take approximately 5 work hours

per APU to accomplish the proposed

actions, and that the average labor rate

is $60 per work hour. Required parts

will cost approximately $7,055 per APU

if the exhaust duct is not reworkable,

$3,254 per APU if the exhaust duct is

reworkable, and the FAA estimates that

1,050 domestic APU’s are reworkable.

Based on these figures, the total cost

impact of the AD on U.S. operators is

estimated to be $7,041,450.

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 final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from 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.
16782 Federal Register / Vol. 60, No. 63 / Monday, April 3, 1995 / Rules and Regulations

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. App. 1354(a), 1421

and 1423; 49 U.S.C. 106(g); and 14 CFR

11.89.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

95–07–03 AlliedSignal Aerospace:

Amendment 39–9182. Docket 94–ANE–

17.

Applicability: AlliedSignal Aerospace

(formerly Garrett Auxiliary Power Division

and Garrett Turbine Engine Co.) GTCP85

series auxiliary power units (APU’s) with

model numbers listed in AlliedSignal

Aerospace Service Bulletin (SB) No.

GTCP85–49–6919, Revision 1, dated January

15, 1995, except those APU’s installed on

Boeing 737 and British Aerospace BAC 1–11

series aircraft; and Alert Service Bulletin

(ASB) No. GTCP85–49–A6831, Revision 1,

dated January 15, 1995, having a one-piece

cast turbine rotor with part numbers (P/N)

3842072–1, -2, -3, and P/N 3604604–1, -2, -3,

P/N 3606982–1, and P/N 96895–1 through -8.

These APU’s are installed on but not limited

to Boeing 707 series and 727 series aircraft;

Lockheed L382 series aircraft; and

McDonnell Douglas DC–8–70 series and DC–

9/MD–80 series aircraft.

Compliance: Required as indicated, unless

accomplished previously.

To prevent an axially uncontained APU

failure and damage to the aircraft,

accomplish the following:

(a) For flight-operable APU’s, within 24

months after the effective date of this

airworthiness directive (AD), install an

exhaust centerbody in accordance with

AlliedSignal Aerospace ASB No. GTCP85–

49–A6831, Revision 1, dated January 15,

1995, or ASB No. GTCP85–49–A6831, dated

March 17, 1994; or SB No. GTCP85–49–6919,

Revision 1, dated January 15, 1995, or SB No.

GTCP85–49–6919, dated May 17, 1994, as

applicable.

(b) For APU’s that are ground-operable

only, within 36 months after the effective

date of this AD, install an exhaust centerbody

in accordance with AlliedSignal Aerospace

SB No. GTCP85–49–6919, Revision 1, dated

January 15, 1995, or SB No. GTCP85–49–

6919, dated May 17, 1994.

(c) No action is required if the APU is

installed on a Boeing 737 or British

Aerospace BAC 1–11 series aircraft until the

APU is removed and installed on a different

type aircraft.

(d) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles Aircraft Certification Office. The

request should be forwarded through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Los Angeles Aircraft

Certification Office.

Note: Information concerning the existence

of approved alternative methods of

compliance with this airworthiness directive,

if any, may be obtained from the Los Angeles

Aircraft Certification Office.

(e) 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 aircraft to

a location where the requirements of this AD

can be accomplished.

(f) The installation of the exhaust center

body shall be done in accordance with the

following service documents:

Document No. Pages Revision Date

ASB No. GTCP85–49–A6831

Revision Transmittal Sheet ......................................................................................................... 1 1 ................. January 15, 1995.

1 1 ................. January 15, 1995.

2–5 Original ....... May 17, 1994.

6 1 ................. January 15, 1995.

7–8 Original ....... May 17, 1994.

9–10 1 ................. January 15, 1995.

Total pages: 11.

SB No. GTCP85–49–6919 ............................................................................................................. 1 1 ................. January 15, 1995.

2 Original ....... May 17, 1994.

3 1 ................. January 15, 1995.

4 Original ....... May 17, 1994.

5 1 ................. January 15, 1995.

6 Original ....... May 17, 1994.

7–10 1 ................. January 15, 1995.

Total Pages: 10.

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 AlliedSignal Aerospace Services, P.O.

Box 52170, Phoenix, AZ 85072–2170, Attn:

Dept. 65–71, Mailstop 1802–AA. Copies may

be inspected at the FAA, New England

Region, Office of the Assistant Chief Counsel,

12 New England Executive Park, Burlington,

MA; or at the Office of the Federal Register,

800 North Capitol Street NW., suite 700,

Washington, DC.

(g) This amendment becomes effective on

May 3, 1995.

Issued in Burlington, Massachusetts, on

March 23, 1995.

James C. Jones,

Acting Manager, Engine and Propeller

Directorate, Aircraft Certification Service.

[FR Doc. 95–7682 Filed 3–31–95; 8:45 am]

BILLING CODE 4910–13–P

14 CFR Part 39

[Docket No. 94–ANE–46; Amendment 39–

9178; AD 94–26–07]

Airworthiness Directives; AlliedSignal

Inc. TPE331 Series Turboprop Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule, request for

comments.

SUMMARY: This document publishes in

the Federal Register an amendment

adopting Airworthiness Directive (AD)

94–26–07 that was sent previously to all

known U.S. owners and operators of

AlliedSignal Inc. TPE331 series

turboprop engines by individual letters.

This AD requires an amendment to the

Emergency Procedures section of the

applicable FAA Approved Airplane

Flight Manual (AFM) for each

applicable engine installation in an

aircraft, and initial and repetitive

dimensional inspections of the fuel

control drive shaft splines for wear, or

replacing the affected fuel controls with