28112 Federal Register / Vol. 61, No. 108 / Tuesday, June 4, 1996 / Proposed Rules

(6) Credit procedures address the

availability and impact of credit exposure

reduction techniques (e.g., bilateral collateral

agreements and/or mutual margining

agreements).

(7) The corporate credit union can

calculate the current mark-to-market (current

exposure) as well as projected changes in

value (potential exposure) when assessing

credit exposure per transaction and

counterparty.

(8) Reports track the aggregate and net

exposures for each counterparty.

(9) Mark-to-market calculations are

obtained independently from qualified

sources as frequently as necessary.

(10) Policies and procedures address the

issue of settlement risk and establish prudent

settlement limits where applicable.

(f) Liquidity risk management. (1) Effective

controls exist for liquidity exposures arising

from both market or product liquidity and

instrument cash flows.

(2) Policies address the exposures to cash

flow gaps arising from derivative transactions

and establish appropriate limits on the size

and duration of such gaps (e.g., concentration

of swap payments, margin calls, or early

terminations).

(3) Liquidity management procedures for

derivatives are an integral part of the day-today operations and are also incorporated into

the overall liquidity stress test and

contingency funding plan requirements of

§ 704.8.

(4) Monitoring procedures are integrated

with the overall liquidity management

process for all corporate credit union

activities.

(g) Audit and compliance. (1) An

independent risk management unit is

responsible for measuring and reporting risk

exposures taken in derivatives.

(2) Audit coverage is adequate to ensure

timely identification of internal control

weaknesses or system deficiencies. Audit

coverage is provided by competent

professionals who are knowledgeable about

the risks inherent in derivative transactions

and have commensurate experience auditing

financial institutions which utilize the same

or similar types of derivatives. The scope of

the audit includes coverage of the

accounting, legal, operating, and risk

controls.

(3) All risk measurement applications and

models are reviewed and validated annually.

(4) Controls are in place to ensure

documentation is confirmed, maintained and

safeguarded. Any documentation exceptions

are monitored and reviewed by appropriate

senior management and legal counsel.

(h) Legal issues. (1) The corporate credit

union has in-house legal counsel or has

access to outside counsel which can

reasonably ensure that any derivatives

related contracts adequately represent the

legal and business interests of the corporate

credit union.

(2) The corporate credit union has access

to outside counsel which is expert in all

financial derivatives contracts and related

matters.

PART 709—INVOLUNTARY

LIQUIDATION AND CREDITOR CLAIMS

2. The authority citation for part 709

continues to read as follows:

Authority: 12 USC 1766; Pub. L. 101–73,

103 Stat. 183, 530 (1989) (12 USC 1787 et

seq.).

3. Section 709.5 is amended by

revising paragraphs (b)(6) and (b)(7);

removing the period and adding a

semicolon and the word ‘‘and’’ at the

end of paragraph (b)(8); and adding

paragraph (b)(9) to read as follows:

§ 709.5 Payout Priorities in Involuntary

Liquidation.

* * * * *

(b) * * *

(6) Shareholders to the extent of their

respective uninsured shares and the

National Credit Union Share Insurance

Fund, to the extent of its payment of

share insurance;

(7) In a case involving liquidation of

a corporate credit union, membership

capital; and

* * * * *

(9) In a case involving liquidation of

a corporate credit union, paid-in capital.

* * * * *

PART 741—REQUIREMENTS FOR

INSURANCE

4. The authority citation for part 741

continues to read as follows:

Authority: 12 USC 1757, 1766, and 1781–

1790. Section 741.11 is also authorized by 31

USC 3717.

5. Section 741.219 is added to read as

follows:

§ 741.219 Investment requirements.

Any credit union which is insured

pursuant to Title II of the Act must

adhere to the requirements stated in part

703 of this chapter concerning

transacting business with corporate

credit unions.

[FR Doc. 96–13518 Filed 6–3–96; 8:45 am]

BILLING CODE 7535–01–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 95–ANE–65]

RIN 2120–AA64

Airworthiness Directives; CFM

International CFM56–5/-5B/-5C Series

Turbofan Engines

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 CFM

International (CFMI) CFM56–5/–5B/–5C

series turbofan engines. This proposal

would require initial and repetitive

borescope inspections of the stage 1 disk

bore of certain high pressure compressor

rotor (HPCR) stage 1–2 spools for rubs

and scratches, and replacement, if found

rubbed or scratched, with a serviceable

part. This proposal would also require

removal and replacement of certain

stationary number 3 bearing aft air/oil

seals as terminating action to the

inspection program. This proposal is

prompted by a report of an engine found

with a rub on the forward corner of the

HPCR stage 1 disk bore due to contact

with the stationary number 3 bearing aft

air/oil seal. The actions specified by the

proposed AD are intended to prevent a

failure of the stage 1 disk of the HPCR

stage 1–2 spool, which could result in

an uncontained engine failure and

damage to the aircraft.

DATES: Comments must be received by

August 5, 1996.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), New England

Region, Office of the Assistant Chief

Counsel, Attention: Rules Docket No.

95– ANE–65, 12 New England Executive

Park, Burlington, MA 01803- 5299.

Comments may also be submitted to the

Rules Docket by using the following

Internet address:

‘‘epdodcomments@mail.hq.faa.gov’’.

Comments may be inspected at this

location between 8:00 a.m. and 4:30

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

CFM International, Technical

Publications Department, One Neumann

Way, Cincinnati, OH 45215; telephone

(513) 552–2981, fax (513) 552–2816.

This information may be examined at

the FAA, New England Region, Office of

the Assistant Chief Counsel, 12 New

England Executive Park, Burlington,

MA.

FOR FURTHER INFORMATION CONTACT:

Robert J. Ganley, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803–5299; telephone (617) 238–7138,

fax (617) 238–7199.
Federal Register / Vol. 61, No. 108 / Tuesday, June 4, 1996 / Proposed Rules 28113

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

should 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 95– ANE–65.’’ 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, New England Region, Office of the

Assistant Chief Counsel, Attention:

Rules Docket No. 95–ANE– 65, 12 New

England Executive Park, Burlington, MA

01803– 5299.

Discussion

This proposed airworthiness directive

(AD) is applicable to CFM International

(CFMI) CFM56–5/–5B/–5C series

turbofan engines. The Federal Aviation

Administration (FAA) has received a

report of an engine found with a rub on

the forward corner of the high pressure

compressor rotor (HPCR) stage 1 disk

bore due to contact with the stationary

number 3 bearing aft air/oil seal. The

manufacturer has discovered a potential

lack of clearance condition between the

HPCR stage 1 disk bore and certain

stationary number 3 bearing aft air/oil

seals. This potential lack of clearance

may result in contact between the two

parts during engine operation. The

manufacturer has determined that this

lack of clearance condition is limited to

engines that have a certain stationary

number 3 bearing aft air/oil seal

installed. This condition, if not

corrected, could result in a failure of the

stage 1 disk of the HPCR stage 1–2

spool, which could result in an

uncontained engine failure and damage

to the aircraft.

The FAA has reviewed and approved

the technical contents of CFM56–5

Service Bulletin (SB) No. 72–440,

CFM56– 5B SB No. 72–064, and

CFM56–5C SB No. 72–229, all Revision

2, dated June 23, 1995, that describes

procedures for borescope inspections of

the stage 1 disk bore of certain HPCR

stage 1–2 spools for rubs and scratches.

Since an unsafe condition has been

identified that is likely to exist or

develop on other products of this same

type design, the proposed AD would

require initial and repetitive borescope

inspections of the stage 1 disk bore of

certain HPCR stage 1–2 spools for rubs

and scratches, and replacement, if found

rubbed or scratched, with a serviceable

part. This proposal would also require

removal and replacement of certain

stationary number 3 bearing aft air/oil

seals as terminating action to the

inspection program. The actions would

be required to be accomplished in

accordance with the SB’s described

previously.

There are approximately 131 engines

of the affected design in the worldwide

fleet. The manufacturer has advised the

FAA that there are no engines installed

on U.S. registered aircraft that would be

affected by this AD. Therefore, there is

no associated cost impact on U.S.

operators as a result of this AD.

However, should an affected engine be

imported on an aircraft and placed on

the U.S. registry in the future, it would

take approximately 402 work hours to

accomplish the required actions, and

that the average labor rate is $60 per

work hour. Required parts would cost

approximately $87,700 per engine.

Based on these figures, the cost impact

of the proposed AD is estimated to be

$111,820 per engine.

The regulations proposed herein

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. Therefore,

in accordance with Executive Order

12612, it is determined that this

proposal would not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

For the reasons discussed above, I

certify that this proposed regulation (1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, 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 draft

regulatory 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, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend 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 USC 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by adding the

following new airworthiness directive:

CFM International: Docket No. 95–ANE–65.

Applicability: CFM International (CFMI)

CFM56–5/–5B/– 5C series turbofan engines,

installed on but not limited to Airbus A320,

A321, and A340 series aircraft.

Note: This airworthiness directive (AD)

applies to each engine 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 engines that

have been modified, altered, or repaired so

that the performance of the requirements of

this AD is affected, the owner/operator must

use the authority provided in paragraph (h)

to request approval from the Federal Aviation

Administration (FAA). This approval may

address either no action, if the current

configuration eliminates the unsafe

condition, or different actions necessary to

address the unsafe condition described in

this AD. Such a request should include an

assessment of the effect of the changed

configuration on the unsafe condition

addressed by this AD. In no case does the

presence of any modification, alteration, or

repair remove any engine from the

applicability of this AD.

Compliance: Required as indicated, unless

accomplished previously.

To prevent a failure of the stage 1 disk of

the high pressure compressor rotor (HPCR)

stage 1–2 spool, which could result in an

uncontained engine failure and damage to

the aircraft, accomplish the following:
28114 Federal Register / Vol. 61, No. 108 / Tuesday, June 4, 1996 / Proposed Rules

(a) For CFM56–5/–5B/–5C engines that

have a stationary number 3 bearing aft air/oil

seal, Part Number (P/N) 1364M71G02,

installed, inspect the stage 1 disk of the

HPCR stage 1–2 spool in accordance with the

Accomplishment Instructions of CFM56–5

Service Bulletin (SB) No. 72–440, CFM56–5B

SB No. 72–064, or CFM56–5C SB No. 72–229,

all Revision 2, dated June 23, 1995, as

applicable, as follows:

(1) If the disk has been previously

inspected prior to the effective date of this

AD, inspect prior to accumulating 2,200

cycles since new (CSN).

(2) If the disk has been previously

inspected prior to the effective date of this

AD, and the disk was found not to be rubbed

or scratched, reinspect prior to accumulating

2,200 cycles since last inspection (CSLI).

(b) Thereafter, for disks that have been

inspected in accordance with paragraph

(a)(1) or (a)(2) of this AD, inspect in

accordance with the Accomplishment

Instructions of CFM56–5 SB No. 72–440,

CFM56–5B SB No. 72–064, or CFM56–5C SB

No. 72–229, all Revision 2, dated June 23,

1995, as applicable, at intervals not to exceed

2,200 CSLI.

(c) Remove from service HPCR stage 1–2

spools with rubbed or scratched stage 1 disks

and replace with a serviceable part, as

follows:

(1) For spools with less than 2,200 CSN on

the effective date of this AD, at the next

engine shop visit after the effective date of

this AD, or prior to accumulating 2,200 CSN,

whichever occurs first.

(2) For spools with 2,200 CSN or more on

the effective date of this AD, at the next

engine shop visit after the effective date of

this AD, or prior to accumulating 2,200 CSLI,

whichever occurs first.

(d) Remove from service stationary number

3 aft air/oil seals, P/N 1364M71G02, at the

next engine shop visit after the effective date

of this AD, and replace with a serviceable

part. Compliance with this paragraph

constitutes terminating action to the

inspection requirements of paragraphs (a)(1),

(a)(2), and (b) of this AD.

(e) For the purpose of this AD, a

serviceable HPCR stage 1–2 spool is defined

as a spool without a rub or scratch indication

on the stage 1 disk, a P/N 1834M55G01

spool, or a spool that has accomplished the

stage 1 disk rework in accordance with any

revision level of CFM56–5 SB No. 72–442,

CFM56–5B SB No. 72–066, or CFM56–5C SB

No. 72–230, as applicable.

(f) For the purpose of this AD, a serviceable

stationary number 3 bearing aft air/oil seal is

defined as any seal other than a P/N

1364M71G02 seal.

(g) For the purpose of this AD, an engine

shop visit is defined as the induction of an

engine into the shop for any reason.

(h) 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, Engine

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, Engine Certification Office.

Note: Information concerning the existence

of approved alternative methods of

compliance with this airworthiness directive,

if any, may be obtained from the Engine

Certification Office.

(i) 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.

Issued in Burlington, Massachusetts, on

May 22, 1996.

Robert E. Guyotte,

Acting Manager, Engine and Propeller

Directorate, Aircraft Certification Service.

[FR Doc. 96–13890 Filed 6–3–96; 8:45 am]

BILLING CODE 4910–13–U

14 CFR Part 39

[Docket No. 93–ANE–79]

RIN 2120–AA64

Airworthiness Directives; Pratt &

Whitney JT8D Series Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Supplemental notice of

proposed rulemaking; reopening of

comment period.

SUMMARY: This notice revises an earlier

proposed airworthiness directive (AD),

applicable to Pratt & Whitney (PW) JT8D

series turbofan engines, that would have

superseded a current AD by reducing

the rear flange inspection interval for

combustion chamber outer cases

(CCOC’s) when only the aft face of the

rear flange has been inspected, and

introducing an improved ultrasonic

probe assembly. That proposal was

prompted by reports of crack origins in

the forward face of the rear flange that

could not be detected by the inspection

methods for installed CCOC’s that were

mandated in the current AD. This action

retains the elements of the original

proposal, but simplifies the compliance

instructions, and incorporates a new PW

Alert Service Bulletin (ASB). This

action also revises the proposed rule by

introducing new non-destructive

inspection procedures (NDIP’s), and

introducing a rotating eddy current

probe for shop inspections in which the

case is removed from the engine. In

addition, this action eliminates

fluorescent penetrant inspection (FPI),

fluorescent magnetic particle inspection

(FMPI), and visual inspections from hot

section disassembly level inspection

procedures. This action also revises the

proposed rule by consolidating the

inspection requirements of an

additional current AD, 95–08–15, into

this proposed AD. The actions specified

by this proposed AD are intended to

prevent CCOC flange cracks that could

result in uncontained engine failure,

inflight engine shutdown, engine cowl

release, and airframe damage.

DATES: Comments must be received by

August 5, 1996.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), New England

Region, Office of the Assistant Chief

Counsel, Attention: Rules Docket No.

93–ANE–79, 12 New England Executive

Park, Burlington, MA 01803–5299.

Comments may also be submitted to the

Rules Docket by using the following

Internet address: ‘‘epdadcomments@mail.hq.faa.gov’’.

Comments may be inspected at this

location between 8:00 a.m. and 4:30

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Pratt & Whitney, 400 Main Street, East

Hartford, CT 06108. This information

may be examined at the FAA, New

England Region, Office of the Assistant

Chief Counsel, 12 New England

Executive Park, Burlington, MA.

FOR FURTHER INFORMATION CONTACT:

Mark A. Rumizen, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803–5299; telephone (617) 238–7137,

fax (617) 238–7199.

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

should 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