26994 Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Proposed Rules 

shall not be effective and no payments 

shall be made under such agreement or 

contract unless and until approved by 

the Director. Such notice should make 

clear that alteration of benefit plans 

subsequent to FHFA approval under 

this section, which affect final 

termination benefits of an executive 

officer, requires review at the time of the 

individual’s termination from the 

Enterprise and prior to the payment of 

any benefits. 

§ 1230.5 Submission requirements. 

(a) In general. Any information 

required to be submitted for purposes of 

obtaining approval of the Director under 

this part must be provided in a timely 

fashion by each regulated entity and the 

Office of Finance to the Director or as 

otherwise specified in guidance or other 

issuances of FHFA. 

(b) Information relating to prohibition 

and withholding of executive 

compensation. The following materials, 

unless otherwise specified, shall be 

provided by each regulated entity and 

the Office of Finance to FHFA, in a 

format deemed appropriate by FHFA, 

for review within one week after the 

specified action or event— 

(1) Resolutions, with no redactions, 

including supporting materials and 

related reports, from meetings of the 

board committee responsible for 

compensation when the committee 

takes any action regarding a 

compensation matter that under the 

committee’s authority is effective 

without further action by the committee 

or the board of directors of the regulated 

entity; 

(2) Resolutions, with no redactions, 

including supporting materials and 

related reports, not otherwise provided 

to FHFA under paragraph (b)(1) of this 

section, from meetings of the board of 

directors relating to executive 

compensation when the board of 

directors takes any action regarding a 

compensation matter that is effective 

without any further action by the board 

of directors; 

(3) Minutes, with no redactions, 

including supporting materials and 

related reports, when adopted by the 

committee responsible for compensation 

and those portions of minutes of the 

board of directors, including supporting 

materials and related reports, related to 

compensation matters, except for 

materials previously provided under 

paragraphs (b)(1) or (2) of this section; 

(4) General benefit plans applicable to 

executive officers when adopted or 

amended; 

(5) Any study conducted by or on 

behalf of a regulated entity or the Office 

of Finance with respect to compensation 

of executive officers, when delivered; 

(6) With respect to an Enterprise, the 

annual compensation report to Congress 

when submitted to Congress; 

(7) A current organizational chart 

when changes occur affecting the status 

of executive officers under this part; 

(8) Proxy statements when issued; and 

(9) Such other information as deemed 

appropriate by the Director. 

(c) Timing of submissions related to 

prior approval of termination benefits. 

An Enterprise shall provide all relevant 

information to FHFA, unless already 

provided under paragraph (b) of this 

section: 

(1) Except as provided in § 1230.4(d), 

before an Enterprise enters into any 

agreement or contract with a new or 

existing executive officer that includes 

termination benefits; 

(2) Before an Enterprise makes any 

extension or other amendment to such 

an agreement or contract; 

(3) Before an Enterprise takes any 

other action to provide termination 

benefits to a specific executive officer, 

regardless of how effected; or 

(4) When an Enterprise makes any 

changes to the termination provisions of 

any compensation or benefit program 

affecting multiple executive officers. 

(d) Specific information required for 

calculation of termination benefits. For 

submissions relating to termination 

benefits, a regulated entity and the 

Office of Finance shall submit to FHFA, 

in a format deemed appropriate by 

FHFA, the following materials: 

(1) The details of the agreement or 

program change, e.g., employment 

agreements, termination agreements, 

severance agreements, and portions of 

minutes of the board of directors 

relating to executive compensation and 

minutes and supporting materials of the 

committee of the board of directors 

responsible for compensation; 

(2) All information, data, assumptions 

and calculations for the potential total 

dollar value or range of values of the 

benefits provided, such as, but not 

limited to salary, bonus opportunity, 

short-term incentives, long-term 

incentives, special incentives and 

pension provisions or related contract or 

benefit terms; and 

(3) Such other information deemed 

appropriate by the Director, except that 

information required to be submitted 

under paragraph (c) of this section or 

under this paragraph shall not include 

information on benefit plans of general 

applicability. 

§ 1230.6 Temporary power in connection 

with executive compensation. 

Notwithstanding any provision of this 

part, effective July 30, 2008, through 

December 31, 2009, the Director may 

approve, disapprove, or modify the 

executive compensation of a regulated 

entity. For purposes of this section, the 

term ‘‘executive compensation’’ has the 

same meaning as defined under 

Regulation S–K, 17 CFR part 229. 

§ 1230.7 Compliance. 

Failure by a regulated entity or the 

Office of Finance to comply with the 

requirements of this part may result in 

supervisory action by FHFA. Such 

action may be taken in the form 

determined appropriate by the Director 

and may be taken separately from, in 

conjunction with, or in addition to any 

other corrective or remedial action, 

including an enforcement action to 

require an individual to make 

restitution to or reimbursement of 

excessive compensation or 

inappropriately paid termination 

benefits. 

CHAPTER XVII—OFFICE OF FEDERAL 

HOUSING ENTERPRISE OVERSIGHT, 

DEPARTMENT OF HOUSING AND URBAN 

DEVELOPMENT 

PART 1770—[REMOVED] 

2. Remove part 1770. 

May 29, 2009. 

James B. Lockhart III, 

Director, Federal Housing Finance Agency. 

[FR Doc. E9–13117 Filed 6–4–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0509; Directorate 

Identifier 2009–CE–029–AD] 

RIN 2120–AA64 

Airworthiness Directives; PILATUS 

Aircraft Ltd. Model PC–7 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above. This proposed 

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: 

This Airworthiness Directive (AD) is 

prompted due to reported corrosion on the 


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Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Proposed Rules 26995 

bolts and in the bores of the attachment 

fittings for the engine mounting frame. The 

corrosion is caused by damaged cadmium 

plating of the bolts or damaged surface finish 

of the attachment fitting. 

Such a condition, if left uncorrected, could 

lead to crack initiation at the bolt and the 

fitting bore and subsequently to the failure of 

the engine attachment fitting. 

The proposed AD would require actions 

that are intended to address the unsafe 

condition described in the MCAI. 

DATES: We must receive comments on 

this proposed AD by July 6, 2009. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Doug Rudolph, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4059; fax: (816) 329–4090. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2009–0509; Directorate Identifier 

2009–CE–029–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

The Federal Office of Civil Aviation 

(FOCA), which is the aviation authority 

for Switzerland, has issued FOCA AD 

HB–2009–004, dated May 12, 2009 

(referred to after this as ‘‘the MCAI’’), to 

correct an unsafe condition for the 

specified products. The MCAI states: 

This Airworthiness Directive (AD) is 

prompted due to reported corrosion on the 

bolts and in the bores of the attachment 

fittings for the engine mounting frame. The 

corrosion is caused by damaged cadmium 

plating of the bolts or damaged surface finish 

of the attachment fitting. 

Such a condition, if left uncorrected, could 

lead to crack initiation at the bolt and the 

fitting bore and subsequently to the failure of 

the engine attachment fitting. 

In order to correct and control the 

situation, this AD requires a visual 

inspection of the relevant bolts and fittings. 

Additionally, the replacement of the bolts is 

required. 

You may obtain further information by 

examining the MCAI in the AD docket. 

Relevant Service Information 

PILATUS Aircraft Ltd. has issued 

Pilatus PC–7 Service Bulletin No. 53– 

006, dated November 17, 2008, and 

Pilatus PC–7 Maintenance Manual 

Chapter 05–10–20, page 4, dated 

November 30, 2008. The actions 

described in this service information are 

intended to correct the unsafe condition 

identified in the MCAI. 

FAA’s Determination and Requirements 

of the Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Differences Between This Proposed AD 

and the MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have proposed 

different actions in this AD from those 

in the MCAI in order to follow FAA 

policies. Any such differences are 

highlighted in a NOTE within the 

proposed AD. 

Costs of Compliance 

We estimate that this proposed AD 

will affect 10 products of U.S. registry. 

We also estimate that it would take 

about 4.5 work-hours per product to 

comply with the basic requirements of 

this proposed AD. The average labor 

rate is $80 per work-hour. Required 

parts would cost about $300 per 

product. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 

operators to be $6,600, or $660 per 

product. 

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. 

We are 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 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD 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. 

For the reasons discussed above, I 

certify this proposed regulation: 


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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. 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. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 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 AD: 

PILATUS Aircraft Ltd.: Docket No. FAA– 

2009–0509; Directorate Identifier 2009– 

CE–029–AD. 

Comments Due Date 

(a) We must receive comments by July 6, 

2009. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to PC–7 airplanes, all 

manufacturer serial numbers, certificated in 

any category. 

Subject 

(d) Air Transport Association of America 

(ATA) Code 53: Fuselage. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

This Airworthiness Directive (AD) is 

prompted due to reported corrosion on the 

bolts and in the bores of the attachment 

fittings for the engine mounting frame. The 

corrosion is caused by damaged cadmium 

plating of the bolts or damaged surface finish 

of the attachment fitting. 

Such a condition, if left uncorrected, could 

lead to crack initiation at the bolt and the 

fitting bore and subsequently to the failure of 

the engine attachment fitting. 

In order to correct and control the 

situation, this AD requires a visual 

inspection of the relevant bolts and fittings. 

Additionally, the replacement of the bolts is 

required. 

Actions and Compliance 

(f) Unless already done, do the following 

actions: 

(1) Visually inspect the bolts and the bores 

(with boroscope) of the attachment fittings 

for the engine mounting frame following 

paragraph 3.A of PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008, at whichever of 

the following occurs later: 

(i) Upon accumulating 5,000 hours total 

time-in-service (TIS) or 5 years from the date 

of manufacture, whichever occurs first; or 

(ii) Within the next 6 months after the 

effective date of this AD. 

(2) If no sign of corrosion is found during 

the inspection required in paragraph (f)(1) of 

this AD, before further flight, replace the 

bolts. Repetitively inspect thereafter at 

intervals not to exceed every 5 years 

following PILATUS Aircraft Ltd. Pilatus PC– 

7 Maintenance Manual Chapter 05–10–20, 

page 4, dated November 30, 2008. 

(3) If any sign of corrosion is found during 

any of the inspections required in paragraphs 

(f)(1) and (f)(2) of this AD, before further 

flight, do the corrective actions following 

paragraph 3.A. of PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008. Repetitively 

inspect thereafter at intervals not to exceed 

every 5 years following PILATUS Aircraft 

Ltd. Pilatus PC–7 Maintenance Manual 

Chapter 05–10–20, page 4, dated November 

30, 2008. 

FAA AD Differences 

Note: This AD differs from the MCAI and/ 

or service information as follows: No 

differences. 

Other FAA AD Provisions 

(g) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Doug Rudolph, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4059; fax: (816) 329– 

4090. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your appropriate principal inspector 

(PI) in the FAA Flight Standards District 

Office (FSDO), or lacking a PI, your local 

FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(h) Refer to MCAI FOCA AD HB–2009–004, 

dated May 12, 2009; PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008; and Pilatus PC–7 

Maintenance Manual Chapter 05–10–20, page 

4, dated November 30, 2008, for related 

information. 

Issued in Kansas City, Missouri, on May 

29, 2009. 

Scott A. Horn, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–13139 Filed 6–4–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 103 

RIN 1506–AA93 

Financial Crimes Enforcement 

Network; Amendment to the Bank 

Secrecy Act Regulations; Defining 

Mutual Funds as Financial Institutions 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Notice of proposed rulemaking 

and request for comments. 

SUMMARY: FinCEN is proposing to 

include mutual funds within the general 

definition of ‘‘financial institution’’ in 

rules implementing the Bank Secrecy 

Act (‘‘BSA’’). The proposal would 

subject mutual funds to rules under the 

BSA on the filing of Currency 

Transaction Reports (‘‘CTRs’’) and on 

the creation, retention, and transmittal 

of records or information for 

transmittals of funds. 

DATES: Written comments on all aspects 

of this notice are welcome and must be 

received on or before September 3, 

2009. 

ADDRESSES: Those submitting comments 

are encouraged to do so via the Internet. 

Comments submitted via the Internet 

may be submitted at http:// 

www.regulations.gov/search/index.jsp 

with the caption in the body of the text, 

Attention: Comment Request; Defining 

Mutual Funds as Financial Institutions. 

Comments also may be submitted by 

written mail to: Financial Crimes 

Enforcement Network, Department of 

the Treasury, P.O. Box 39, Vienna, VA 

22183, Attention: Comment Request; 

Defining Mutual Funds as Financial 

Institutions. Please submit comments by 

one method only. All comments 

submitted in response to this notice of 

proposed rulemaking will become a 


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