This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

57841 

Vol. 75, No. 184 

Thursday, September 23, 2010 

1Where the term appears in this preamble, 

Government-funded SC refers only to SC funded by 

the Federal Government as opposed to State 

governments or their subdivisions. 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 72 

[NRC–2010–0183] 

RIN 3150–AI88 

List of Approved Spent Fuel Storage 

Casks: NAC–MPC System, Revision 6, 

Confirmation of Effective Date 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Direct final rule: Confirmation 

of effective date. 

SUMMARY: The Nuclear Regulatory 

Commission (NRC) is confirming the 

effective date of October 4, 2010, for the 

direct final rule that was published in 

the Federal Register on July 21, 2010 

(75 FR 42292). This direct final rule 

amended the NRC’s spent fuel storage 

regulations at 10 CFR 72.214 to revise 

the NAC–MPC System listing to include 

Amendment Number 6 to Certificate of 

Compliance (CoC) Number 1025. 

DATES: Effective Date: The effective date 

of October 4, 2010, is confirmed for this 

direct final rule. 

ADDRESSES: Documents related to this 

rulemaking, including any comments 

received, may be examined at the NRC 

Public Document Room, Room O–1F23, 

11555 Rockville Pike, Rockville, MD 

20852. 

FOR FURTHER INFORMATION CONTACT: 

Jayne M. McCausland, Office of Federal 

and State Materials and Environmental 

Management Programs, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555, telephone (301) 415–6219, 

e-mail Jayne.McCausland@nrc.gov. 

SUPPLEMENTARY INFORMATION: On July 

21, 2010 (75 FR 42292), the NRC 

published a direct final rule amending 

its regulations at 10 CFR 72.214 to 

include Amendment No. 6 to CoC No. 

1025. Amendment No. 6 changes the 

configuration of the NAC–MPC storage 

system by the incorporation of a single 

closure lid with a welded closure ring 

for redundant closure into the 

Transportable Storage Canister (TSC) 

design; modification of the TSC and 

basket design to accommodate up to 68 

La Crosse Boiling Water Reactor spent 

fuel assemblies (36 undamaged Exxon 

fuel assemblies and up to 32 damaged 

fuel cans (in a preferential loading 

pattern)) that may contain undamaged 

Exxon fuel assemblies and damaged 

Exxon and Allis Chalmers fuel 

assemblies and/or fuel debris; the 

addition of zirconium alloy shroud 

compaction debris to be stored with 

undamaged and damaged fuel 

assemblies; minor design modifications 

to the Vertical Concrete Cask 

incorporating design features from the 

MAGNASTOR System for improved 

operability of the system while adhering 

to as low as is reasonably achievable 

principles; an increase in the concrete 

pad compression strength from 4,000 

psi to 6,000 psi; added justification for 

the 6-ft. soil depth as being 

conservative; and other changes to 

incorporate minor editorial corrections 

in CoC No. 1025 and Appendices A and 

B of the Technical Specifications (TS). 

Also, the Definitions in TS 1.1 are 

revised to include modifications and 

newly defined terms; the Limiting 

Conditions for Operation and associated 

Surveillance Requirements in TS 3.1 

and 3.2 are revised; and editorial 

changes are made to TS 5.2 and 5.4. In 

the direct final rule, NRC stated that if 

no significant adverse comments were 

received, the direct final rule would 

become final on October 4, 2010. The 

NRC did not receive any comments on 

the direct final rule. Therefore, this rule 

will become effective as scheduled. 

Dated at Rockville, Maryland, this 17th day 

of September 2010. 

For the Nuclear Regulatory Commission. 

Cindy Bladey, 

Chief, Rules, Announcements, and Directives 

Branch, Division of Administrative Services, 

Office of Administration. 

[FR Doc. 2010–23875 Filed 9–22–10; 8:45 am] 

BILLING CODE 7590–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 701 

RIN 3133–AD67 

Secondary Capital Accounts 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: On February 19, 2010, NCUA 

published an interim final rule 

amending its regulation governing 

secondary capital accounts to permit 

low-income designated credit unions to 

redeem all or part of secondary capital 

accepted from the United States 

Government or any of its subdivisions at 

any time after the secondary capital has 

been on deposit for two years. The 

amendments also allowed early 

redemption, under the same terms and 

conditions, of secondary capital 

accepted as a match to the governmentfunded secondary capital. Finally, the 

amendments changed the lossdistribution provision that applies to 

secondary capital accounts so that 

secondary capital accepted under the 

2010 Community Development Capital 

Initiative is senior to any required 

matching secondary capital accepted 

from an alternative source. This rule 

confirms those amendments as final 

with some technical changes and 

clarifications. 

DATES: Effective September 23, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Kevin Tuininga, Trial Attorney, at 1775 

Duke Street, Alexandria, Virginia 

22314–3428, or telephone: (703) 518– 

6543. 

SUPPLEMENTARY INFORMATION: 

A. Background 

In February 2010, NCUA issued an 

interim final rule, with request for 

comments, to permit low-income 

designated credit unions (‘‘LICUs’’) to 

redeem all or part of secondary capital 

(‘‘SC’’) accepted from the United States 

Government or any of its subdivisions 

(‘‘government-funded SC’’) 1 and its 

matching SC, if any, at any time after 

the SC has been on deposit for two 


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57842 Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Rules and Regulations 

2The Emergency Economic Stabilization Act of 

2008 authorized the Secretary of the Treasury to 

establish the TARP for the purpose of restoring and 

sustaining the viability of financial institutions. 12 

U.S.C. 5211. 

3The CDFI Fund is operated by Treasury and 

charged with promoting economic revitalization 

and community development through investment 

in community development financial institutions. 

4At the time the interim final was approved, 

Treasury was offering to purchase only thirteenyear Senior Securities. 

5Eligibility for early redemption, however, does 

not mean early redemption is automatically 

approved. The terms of the particular government 

program, applicable SC contract, and the criteria for 

Regional Director approval could still restrict early 

redemption. 

years. 75 FR 7339 (Feb. 19, 2010). This 

amendment was intended to facilitate 

LICU participation in the United States 

Department of the Treasury’s 

(‘‘Treasury’’) Community Development 

Capital Initiative (‘‘CDCI’’), which 

offered funds under the Troubled Asset 

Relief Program (‘‘TARP’’) to LICUs in the 

form of SC (‘‘CDCI SC’’). To comply with 

the terms of the CDCI, the interim final 

also provided that CDCI SC must be 

held senior to its matching SC, if any, 

and gave LICUs two options for 

ensuring the subordination of matching 

SC. In this final rule, NCUA is 

confirming the amendments to its rule 

on the redemption and priority of 

certain SC accounts. The final rule also 

makes a number of technical 

adjustments and clarifications to reflect 

terms of the CDCI that have developed 

since the interim final rule was issued. 

1. The CDCI 

Treasury announced the CDCI on 

February 3, 2010 as a new program 

under the TARP aimed to invest lowercost capital in community development 

financial institutions.2 To qualify for 

CDCI consideration, credit unions must 

have a low-income designation pursuant 

to 12 CFR 701.34 and a Community 

Development Financial Institution 

(‘‘CDFI’’) certification from the CDFI 

Fund.3

The terms of the CDCI provide that a 

LICU accepted for participation is 

eligible to issue CDCI Senior Securities 

up to an aggregate principal amount of 

3.5 percent of the LICU’s total assets. 

The Senior Securities have either an 

eight-year or thirteen-year maturity and 

are purchased by Treasury.4 Securities 

with a thirteen-year maturity pay 

cumulative interest at an annual rate of 

two percent until the eighth anniversary 

of their date of issuance. Over the 

remaining five years to maturity, the 

securities pay cumulative interest at an 

annual rate of nine percent. Securities 

with an eight-year maturity pay 

cumulative interest at an annual rate of 

two percent through maturity. 

In some circumstances, the CDCI 

terms may require LICUs to obtain 

matching funds from non-government 

sources. Where match is required, a 

LICU must agree to hold the matching 

SC subordinate to the CDCI SC. In 

particular, the subordination terms 

require that all of a LICU’s CDCI SC be 

redeemed before any of its match may 

be redeemed. CDCI SC along with its 

matching SC is subject to NCUA’s 

regulation governing SC accounts. 

§ 701.34(b)–(d). 

2. The Interim Final Rule 

The interim final rule sought to 

remove any regulatory disincentive for 

LICUs to apply for participation in the 

CDCI and to make other changes 

necessary to alleviate conflicts between 

NCUA’s regulation and the terms of the 

CDCI. To do so, the interim final rule 

exempted all government-funded SC 

from the limits of the redemption 

schedule in § 701.34(d)(3). It also 

exempted SC accepted as a match to 

government-funded SC from the 

redemption schedule limits. The 

exemption was intended to give LICUs 

the opportunity to avoid the ninepercent interest rate over the last five 

years to maturity on CDCI SC that was 

initially offered with only a 13-year 

maturity. The exception also sought to 

avoid subjecting LICUs to potentially 

high interest rates on SC accepted as a 

match to CDCI SC. In contemplation of 

similar future opportunities, the 

exemption language was drafted to 

encompass the early redemption of 

government-funded SC accepted under 

programs other than the CDCI that could 

arise in response to adverse economic 

conditions. 

The interim final rule also amended 

the loss distribution procedures 

applicable to SC accounts to ensure that 

CDCI SC would be held senior to any 

matching SC required under the 

Initiative. In particular, the interim final 

rule authorized LICUs to choose 

between two different methods of match 

subordination. 

The two subordination methods apply 

only to CDCI SC and its match accepted 

under the CDCI of 2010 and not to 

government-funded SC accepted under 

other programs that do not require 

seniority status. LICUs eligible to accept 

CDCI SC without any match must follow 

the pro-rata loss distribution procedure 

that makes the CDCI SC available to 

cover a loss at the same rate as any other 

SC. The interim final rule did not affect 

in any manner the SC redemption 

procedures for non-government-funded 

SC that is not accepted as a match to 

government-funded SC. 

B. Summary of Public Comments 

NCUA received two comment letters 

on the interim final rule: One from a 

national trade association and one on 

behalf of two State credit union leagues. 

One comment letter expressed support 

for the interim final rule and did not 

suggest any changes. The other 

comment letter also expressed support 

but advised clarification on whether 

early redemption would be permitted 

where government-funded SC is only 

partially matched. 

NCUA believes the interim final rule 

in its current form guards against 

ambiguity to the extent possible with 

regard to early redemption. The rule 

states, without reference to ratio, that 

matching SC is eligible for early 

redemption under the same terms and 

conditions as the government-funded 

SC with which it is matched. Under the 

plain meaning of the rule, to be 

‘‘matching secondary capital,’’ the 

account in question must necessarily 

have met all the requirements to qualify 

as matching SC pursuant to the terms of 

the program under which the 

government-funded SC was offered. 

Assuming the SC qualified as match, the 

rule makes the match eligible for early 

redemption. Rather than eliminating 

ambiguity, addressing amounts or ratios 

in clarifying circumstances where 

matching SC is eligible for early 

redemption could raise further 

questions with regard to the congruity of 

rate, term, priority, or some other 

unanticipated variable. Divergence in 

these variables does not affect whether 

SC accepted as a match to governmentfunded SC is eligible for early 

redemption.5

C. Final Rule 

This final rule confirms the 

amendments made in the interim final 

rule. It also includes some technical 

changes and clarifications that respond 

to considerations that arose during 

development and implementation of the 

CDCI. 

At the time of the interim final’s 

issuance, Treasury referred to what is 

now the CDCI as the ‘‘CDC Program.’’ To 

account for this name change, in 

§ 701.34(b)(7), this final rule replaces 

‘‘Community Development Capital 

Program’’ and its abbreviation with 

‘‘Community Development Capital 

Initiative’’ or ‘‘CDCI.’’ 

In addition, finalized seniority terms 

with respect to SC accepted as a match 

to CDCI SC will be such that no amount 

of the match can be redeemed until 

every dollar of the CDCI SC has been 


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Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Rules and Regulations 57843 

6The language of the interim final rule states that 

CDCI SC becomes available to cover losses only 

after its matching SC has been depleted or ‘‘properly 

redeemed.’’ During initial development of the CDCI, 

it was unclear whether Treasury would require 

matching funds to be on hand for the entire term 

of the CDCI SC or whether a shorter, minimum term 

might apply to matching SC. Since the interim 

final’s approval, Treasury has confirmed that it will 

not allow redemption of any SC accepted as a 

match to CDCI SC until all of the CDCI SC has been 

redeemed. 

7Treasury agreed to offer LICUs the option of 

issuing eight-year securities to ease concerns 

investors would be unwilling to contribute 

matching SC to LICUs with a maturity as long as 

thirteen years. 

8Application of the net-worth schedule has no 

effect on how losses are distributed among accounts 

under the pro-rata loss distribution procedure of 

§ 701.34(b)(7). 

returned to Treasury.6 Thus, the final 

rule eliminates the interim final rule’s 

now-unnecessary language in 

§ 701.34(b)(7)(i)–(ii) that contemplates 

the possibility matching SC could be 

properly redeemed prior to redemption 

of CDCI SC. 

Although Treasury’s more recent 

articulation of the CDCI contemplates 

issuance of eight-year securities bearing 

two percent interest for the entire term, 

the final rule retains the exceptions for 

early redemption of both governmentfunded SC and its match.7 Doing so will 

allow LICUs who are able to recruit 

match with a longer maturity or that do 

not require matching SC to choose to 

accept the thirteen-year CDCI SC. These 

LICUs can later decide whether to seek 

early redemption or retain the CDCI SC 

despite the interest rate spike to ninepercent. 

The final change relates to the 

schedule for recognizing net-worth 

value set forth in § 701.34(c)(2). Without 

an adjustment in this final rule, a 

problem arises with literal application 

of the net-worth recognition schedule in 

some instances where a LICU suffers a 

loss to, or redeems all or part of, 

government-funded SC and/or its 

matching SC before or during the last 

five years to maturity. To illustrate, if a 

LICU redeems half of its governmentfunded SC in year eight of its thirteenyear maturity, the net-worth recognition 

schedule directs the LICU to recognize 

80 percent of the original account 

balance as net worth although the LICU 

retains only half of the account’s 

original balance. 

To correct this problem, the final rule 

expressly provides that a LICU’s 

recordation of the net-worth value of an 

account in its financial statement may 

never exceed the remaining balance of 

the account after early redemptions or 

losses. For SC accounts with less than 

five years remaining maturity, a LICU 

must record the net-worth value of the 

accounts in its financial statement in 

accordance with the lesser of the 

following: (1) The remaining balance of 

the account after early redemptions and 

losses; or (2) the declining percentage 

calculations set forth in the net-worth 

schedule that are based on the original 

balance of the account.8

D. Immediate Effective Date 

NCUA is issuing this rulemaking as a 

final rule effective upon publication. 

The Administrative Procedure Act 

(‘‘APA’’), 5 U.S.C. 553, requires that, 

once finalized, a substantive rulemaking 

must have a delayed effective date of 30 

days from the date of publication, 

except for good cause. In this regard, 

NCUA believes the 30-day delayed 

effective date is inapplicable because 

the final rule makes only technical 

adjustments and clarifications to the 

interim final rule and to § 701.34. As 

such, the rule is not substantive and is 

not subject to the 30-day publication 

requirement. Even if the rule were 

otherwise subject to the 30-day 

requirement, NCUA believes good cause 

exists for waiving the 30-day delayed 

effective date because the interim final 

rule is already in effect and is not 

significantly altered by this final rule. 

Regulatory Procedures 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

requires NCUA to prepare an analysis to 

describe any significant economic 

impact a rule may have on a substantial 

number of small entities (primarily 

those under ten million dollars in 

assets). This final rule does not impose 

any regulatory burden, instead 

providing LICUs with the flexibility to 

redeem SC accepted from the United 

States Government or any of its 

subdivisions, along with its matching 

SC, at any time after the SC has been on 

deposit for two years. The rule will not 

have a significant economic impact on 

a substantial number of small credit 

unions. Thus, a Regulatory Flexibility 

Analysis is not required. 

Paperwork Reduction Act 

NCUA has determined this rule will 

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 regulatory 

actions on State and local interests. 

NCUA, an independent regulatory 

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

voluntarily adheres to the fundamental 

federalism principles addressed by the 

Executive Order. This rule would 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. Accordingly, this 

rule does not constitute a policy that has 

federalism implications for purposes of 

the Executive Order. 

Treasury and General Government 

Appropriations Act, 1999 

NCUA has determined the final rule 

will not affect family well-being within 

the meaning of section 654 of the 

Treasury and General Government 

Appropriations Act, 1999, Public Law 

105–277, 112 Stat. 2681 (1998). 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 (Pub. 

L. 104–121) (‘‘SBREFA’’) provides 

generally for congressional review of 

agency rules. A reporting requirement is 

triggered in instances where NCUA 

issues a final rule as defined by Section 

551 of the Administrative Procedure 

Act. 5 U.S.C. 551. The Office of 

Information and Regulatory Affairs, an 

office within the Office of Management 

and Budget, has determined that this is 

not a major rule for purposes of 

SBREFA. 

List of Subjects in 12 CFR Part 701 

Credit, Credit unions, Mortgages. 

By the National Credit Union 

Administration Board, this 16th day of 

September, 2010. 

Mary F. Rupp, 

Secretary of the Board. 

■ For the reasons discussed above, the 

interim final rule amending 12 CFR part 

701 published on February 19, 2010 (75 

FR 7339), which was effective February 

19, 2010, is confirmed as final with the 

following changes: 

PART 701—ORGANIZATION AND 

OPERATION OF FEDERAL CREDIT 

UNIONS 

■ 1. The authority citation for part 701 

continues to read as follows: 

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

1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 

1782, 1784, 1786, 1787, 1789. Section 701.6 

is also authorized by 15 U.S.C. 3717. Section 

701.31 is also authorized by 15 U.S.C. 1601 

et seq.; 42 U.S.C. 1981 and 3601–3610. 

Section 701.35 is also authorized by 42 

U.S.C. 4311–4312. 

■ 2. Amend § 701.34 by revising 

paragraphs (b)(7) and (c)(2) introductory 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
57844 Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Rules and Regulations 

text and adding paragraphs (c)(2)(i) and 

(c)(2)(ii) introductory text prior to the 

table to read as follows: 

§ 701.34 Designation of low income status; 

Acceptance of secondary capital accounts 

by low-income designated credit unions. 

* * * * * 

(b) * * * 

(7) Availability to cover losses. Funds 

deposited into a secondary capital 

account, including interest accrued and 

paid into the secondary capital account, 

must be available to cover operating 

losses realized by the LICU that exceed 

its net available reserves (exclusive of 

secondary capital and allowance 

accounts for loan and lease losses), and 

to the extent funds are so used, the LICU 

must not restore or replenish the 

account under any circumstances. The 

LICU may, in lieu of paying interest into 

the secondary capital account, pay 

accrued interest directly to the investor 

or into a separate account from which 

the secondary capital investor may 

make withdrawals. Losses must be 

distributed pro-rata among all secondary 

capital accounts held by the LICU at the 

time the losses are realized. In instances 

where a LICU accepted secondary 

capital from the United States 

Government or any of its subdivisions 

under the Community Development 

Capital Initiative of 2010 (‘‘CDCI 

secondary capital’’) and matching funds 

were required under the Initiative and 

are on deposit in the form of secondary 

capital at the time a loss is realized, a 

LICU must apply either of the following 

pro-rata loss distribution procedures to 

its secondary capital accounts with 

respect to the loss: 

(i) If not inconsistent with any 

agreements governing other secondary 

capital on deposit at the time a loss is 

realized, the CDCI secondary capital 

may be excluded from the calculation of 

the pro-rata loss distribution until all of 

its matching secondary capital has been 

depleted, thereby causing the CDCI 

secondary capital to be held as senior to 

all other secondary capital until its 

matching secondary capital is 

exhausted. The CDCI secondary capital 

should be included in the calculation of 

the pro-rata loss distribution and is 

available to cover the loss only after all 

of its matching secondary capital has 

been depleted. 

(ii) Regardless of any agreements 

applicable to other secondary capital, 

the CDCI secondary capital and its 

matching secondary capital may be 

considered a single account for 

purposes of determining a pro-rata share 

of the loss and the amount determined 

as the pro-rata share for the combined 

account must first be applied to the 

matching secondary capital account, 

thereby causing the CDCI secondary 

capital to be held as senior to its 

matching secondary capital. The CDCI 

secondary capital is available to cover 

the loss only after all of its matching 

secondary capital has been depleted. 

* * * * * 

(c) * * * 

(2) Schedule for recognizing net worth 

value. The LICU’s reflection of the net 

worth value of the accounts in its 

financial statement may never exceed 

the full balance of the secondary capital 

on deposit after any early redemptions 

and losses. For accounts with remaining 

maturities of less than five years, the 

LICU must reflect the net worth value of 

the accounts in its financial statement in 

accordance with the lesser of: 

(i) The remaining balance of the 

accounts after any redemptions and 

losses; or 

(ii) The amounts calculated based on 

the following schedule: 

* * * * * 

[FR Doc. 2010–23652 Filed 9–22–10; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0555; Directorate 

Identifier 2010–NM–053–AD; Amendment 

39–16438; AD 2010–20–04] 

RIN 2120–AA64 

Airworthiness Directives; Gulfstream 

Aerospace LP (Type Certificate 

Previously Held by Israel Aircraft 

Industries, Ltd.) Model Galaxy and 

Gulfstream 200 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from 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: 

Extension of airbrakes above 360 KIAS 

[knots indicated air speed]/0.79 Mi [Mach 

indicated] results in aerodynamic driven 

vibration of the airbrake which, if not limited 

per Revision 14 to the AFM [airplane flight 

manual], can lead to high cycle fatigue failure 

of the airbrake in-board hinge. 

The unsafe condition is high cycle 

fatigue of the airbrake in-board hinge, 

which can result in loss of the airbrake, 

which in turn can lead to reduced 

controllability of the airplane. We are 

issuing this AD to require actions to 

correct the unsafe condition on these 

products. 

DATES: This AD becomes effective 

October 28, 2010. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

www.regulations.gov or in person at the 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Mike Borfitz, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–2677; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on June 25, 2010 (75 FR 36296). 

That NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states: 

Extension of airbrakes above 360 KIAS 

[knots indicated air speed]/0.79 Mi [Mach 

indicated] results in aerodynamic driven 

vibration of the airbrake which, if not limited 

per Revision 14 to the AFM [airplane flight 

manual], can lead to high cycle fatigue failure 

of the airbrake in-board hinge. 

The unsafe condition is high cycle 

fatigue of the airbrake in-board hinge, 

which can result in loss of the airbrake, 

which in turn can lead to reduced 

controllability of the airplane. The 

required action includes revising the 

Limitations section of the Gulfstream 

200 Airplane Flight Manual to prohibit 

deploying the air brakes above the 

stated speed. You may obtain further 

information by examining the MCAI in 

the AD docket. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

received no comments on the NPRM or 

on the determination of the cost to the 

public. 

Conclusion 

We reviewed the available data and 

determined that air safety and the 


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