[Federal Register Volume 87, Number 201 (Wednesday, October 19, 2022)]
[Notices]
[Pages 63541-63543]
[FR Doc No: 2022-22655]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96060; File No. SR-DTC-2022-010]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Procedures Set Forth in the Custody Guide and the Underwriting
Guide Including the Policy Statement on the Eligibility of Foreign
Securities

October 13, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 7, 2022, The Depository Trust Company (``DTC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared by the clearing agency. DTC filed the proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(4) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change consists of amendments to Procedures \5\
set forth in the Custody Guide \6\ and the Underwriting Guide,\7\ as
well as the Policy Statement on the Eligibility of Foreign Securities
(``Policy Statement'') set forth in the Rules,8 9 to make
technical and clarifying changes, as described in greater detail below.
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    \5\ Pursuant to the Rules, the term ``Procedures'' means the
Procedures, service guides, and regulations of DTC adopted pursuant
to Rule 27, as amended from time to time. Rule 1, Section 1, infra
note 9. DTC's Procedures are filed with the Securities and Exchange
Commission (``Commission''). They are binding on DTC and each
Participant in the same manner that they are bound by the Rules.
Rule 27, infra note 9.
    \6\ The Custody Guide, infra note 9, contains Procedures for
DTC's Custody Service. The Custody Service allows a Participant to
deposit (i) Securities not eligible for DTC book-entry services,
(ii) Securities that would otherwise be eligible for DTC book-entry
services but are not registered in the name of DTC's nominee, Cede &
Co., and (iii) certain ``non-standard assets.'' Custody Guide, infra
note 9, at 7. The Custody Service also includes DTC services for
Deposit and Safekeeping, Withdrawal, Regular Transfer, Restricted
Deposits and Transfer, Reorganization, Branch Deposits, and Physical
Clearance and Settlement services. Custody Guide, infra note 9, at
8.
    \7\ The Underwriting Guide, infra note 9, contains Procedures
for DTC's Underwriting Service. The Underwriting Service allows
Participants to request eligibility for Securities and deposit
securities eligible for depository services. Underwriting Guide,
infra note 9, at 7.
    \8\ The purpose of the Policy Statement is to set forth in an
accessible manner the criteria and procedures for making the
securities of foreign issuers (``Foreign Securities'') eligible for
deposit and book-entry transfer through the facilities of DTC in
accordance with the Securities Act of 1933 and the rules and
regulations of the Commission thereunder. See Securities Exchange
Act Release No. 56277 (August 17, 2007), 72 FR 48709 (August 24,
2007) (File No. SR-DTC-2007-04).
    \9\ Each capitalized term not otherwise defined herein has its
respective meaning as set forth in the Rules, By-Laws and
Organization Certificate of The Depository Trust Company
(``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx, the DTC Custody Service Guide (``Custody Guide''),
available at https://www.dtcc.com/~/media/Files/Downloads/legal/
service-guides/Custody.pdf and the DTC Underwriting Service Guide
(``Underwriting Guide''), available at https://www.dtcc.com/~/media/
Files/Downloads/legal/service-guides/Underwriting-Service-Guide.pdf.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose
    The proposed rule change would amend the Procedures \10\ set forth
in the Custody Guide \11\ and the Underwriting Guide,\12\ as well as
the Policy Statement on the Eligibility of Foreign Securities (``Policy
Statement'') set forth in the Rules,\13\ to make technical and
clarifying changes, as described below.
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    \10\ Pursuant to the Rules, the term ``Procedures'' means the
Procedures, service guides, and regulations of DTC adopted pursuant
to Rule 27, as amended from time to time. Rule 1, Section 1, supra
note 9. DTC's Procedures are filed with the Securities and Exchange
Commission (``Commission''). They are binding on DTC and each
Participant in the same manner that they are bound by the Rules.
Rule 27, supra note 9.
    \11\ The Custody Guide, supra note 9, contains Procedures for
DTC's Custody Service. The Custody Service allows a Participant to
deposit (i) Securities not eligible for DTC book-entry services,
(ii) Securities that would otherwise be eligible for DTC book-entry
services but are not registered in the name of DTC's nominee, Cede &
Co., and (iii) certain ``non-standard assets.'' Custody Guide, supra
note 9, at 7. The Custody Service also includes DTC services for
Deposit and Safekeeping, Withdrawal, Regular Transfer, Restricted
Deposits and Transfer, Reorganization, Branch Deposits, and Physical
Clearance and Settlement services. Custody Guide, supra note 9, at
8.
    \12\ The Underwriting Guide, supra note 9, contains Procedures
for DTC's Underwriting Service. The Underwriting Service allows
Participants to request eligibility for Securities and deposit
securities eligible for depository services. Underwriting Guide,
supra note 9, at 7.
    \13\ The purpose of the Policy Statement is to set forth in an
accessible manner the criteria and procedures for making the
securities of foreign issuers (``Foreign Securities'') eligible for
deposit and book-entry transfer through the facilities of DTC in
accordance with the Securities Act of 1933 and the rules and
regulations of the Commission thereunder. See Securities Exchange
Act Release No. 56277 (August 17, 2007), 72 FR 48709 (August 24,
2007) (File No. SR-DTC-2007-04).

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Proposed Rule Change
Custody Guide
    The proposed rule change would make the following changes to the
text of the Custody Guide.
    First, the section of the Custody Guide titled ``Requesting Custody
Eligibility for a Security'' \14\ would be revised to delete text that
directs Participants with questions regarding the section to a phone
number for the DTC Underwriting Hotline.\15\ The more appropriate party
for a Participant to contact is its relationship manager, which is
already noted in the section.\16\ Deleting the reference to the
Underwriting Hotline would provide greater clarity as to where
Participants should direct their inquiries relating to this aspect of
the Custody Service.
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    \14\ Custody Guide, supra note 9, at 20-21.
    \15\ Custody Guide, supra note 9, at 21.
    \16\ Custody Guide, supra note 9, at 20.
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    Second, the subsection titled ``Short-Term Maturity'' \17\ under
the ``Custody Reorganization'' section of the Custody Guide would be
deleted as the functionality described in the subsection will be
retired. The functionality described in the subsection relates to a
process for the automatic redemption of Securities with short terms to
maturity, including, but not limited to, bankers' acceptances and
certificates of deposit.\18\ This functionality provides that DTC will
track payment details for short-term Securities held in the Custody
Service and provides a projection report of maturities to occur within
the next 5 Business Days to the applicable Participant for balancing
purposes. DTC then arranges for the certificate to be automatically
routed to an internal Short-Term Maturity Prep box (``Short-Term
Maturity Box'') to then be presented to the paying agent on the payable
date, along with a system-generated instruction for the paying agent to
wire the proceeds to the bank account designated by the Participant.
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    \17\ Custody Guide, supra note 9, at 24.
    \18\ See Securities Exchange Act Release No. 42597 (March 30,
2000), 65 FR 18399 (April 7, 2000) (File No. SR-DTC-99-26).
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    DTC is retiring this Short-Term Maturity functionality as it has
not been used by a Participant in over five years, and such
transactions have been rare since the implementation of the Short-Term
Maturity functionality. Based on DTC's observation of existing
Participant deposits and activity, DTC does not anticipate future
demand for this process.
    Once the Short-Term Maturity process described in the subsection is
discontinued, Participants holding any applicable Securities through
the Custody Service would need to track any such maturity details on
their own and provide appropriate instructions relating to matured
Securities through the DTC system via the general Custody Service
system functionality, as they would for other transaction types not
otherwise specified in the Custody Guide, using the Participant
Terminal System (PTS)/Participant Browser System (PBS) function CUST or
via messaging.\19\
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    \19\ Custody Guide, supra note 9, at 16.
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    In discontinuing this function, the Custody Guide would be updated
to delete, (i) a reference to the Short-Term Maturity Box under the
heading ``Custody Reorganization Boxes,'' and (ii) a reference to
short-term maturities under the heading ``Reorganization and Redemption
Activities.''
    Finally, in the ``Copyright'' section of the Custody Guide, the
date would be changed from 2021 to 2022.
Underwriting Guide
    The proposed rule change would make the following changes to the
text of the Underwriting Guide.
    First, the heading titled ``Service Topics'' \20\ would be deleted.
The heading follows a section titled ``Overview'' that explains that
the Underwriting Guide describes services offered under the
Underwriting Service and related requirements. Also, the ``Service
Topics'' heading immediately precedes descriptions of the various
service offerings that DTC provides as part of the Underwriting
Service. Because the Overview section provides sufficient context for
the reader to understand that the Underwriting Guide provides such
descriptions, the inclusion of the ``Service Topics'' heading is not
needed as a reference point for readers to understand the context or
purpose of the service descriptions that follow. In this regard, DTC
believes the elimination of this heading would enhance readability by
reducing unnecessary wording.
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    \20\ Underwriting Guide, supra note 9, at 10.
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    Second, the section of the Underwriting Guide titled ``Custody
Service'' \21\ would be deleted. Although, the section provides a brief
overview of the Custody Service and related Procedures, the Custody
Service is already described in the Custody Service Guide. So,
inclusion of the description of the Custody Service within the
Underwriting Guide is duplicative and unnecessary. The deletion of this
section from the Underwriting Guide will not affect the Custody Service
or the Procedures described in the Custody Guide.
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    \21\ Underwriting Guide, supra note 9, at 18.
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    Third, references to ``data distribution boxes'' and references to
distributions of hard copy reports \22\ would be deleted from the
Underwriting Guide. The glossary included in the Underwriting Guide
defines data distribution boxes as receptacles located in the central
delivery area of DTC used for distributing hard copy reports and
notices to Participants.\23\ A subsection titled ``About the Product''
under the ``IPO Tracking System'' section of the Underwriting Guide
provides that reports are issued daily in hard copy form and are
distributed through DTC's data distribution boxes or DTC's Interface
Department. The ``How the Product Works'' subsection of the ``IPO
Tracking System'' section also contains a cross reference regarding
instructions on data distribution boxes to the text in the ``About the
Product'' subsection described above.
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    \22\ Underwriting Guide, supra note 9, at 8, 12 and 13.
    \23\ Underwriting Guide, supra note 9, at 8.
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    Today, IPO Tracking reports are transmitted in electronic format,
and Participants no longer retrieve such reports in hard copy form. As
such, DTC would update the Underwriting Guide to delete the above-
described references to data distribution boxes and distribution of
hard copy reports from the glossary and the ``IPO Tracking System''
section.
    Finally, in the ``Copyright'' section of the Underwriting Guide,
the date would be changed from 2021 to 2022.
Policy Statement
    The proposed rule change would make a technical amendment to the
Policy Statement to align a provision of the Policy Statement with the
Procedures.
    The Policy Statement covers eligibility provisions for both Foreign
Securities deposited with DTC at the time that such Foreign Securities
are first distributed (referred to as ``new issues'') and Foreign
Securities deposited with DTC subsequent to the time that such Foreign
Securities are first distributed (referred to as ``older issues'').
    Section 3 (``Section 3'') of the Policy Statement provides for a
variety of measures designed to facilitate compliance by issuers and
Participants with their obligations to DTC and pursuant to the federal
securities laws.
    Among requirements for new issues, Section 3 references an
``Eligibility Questionnaire'' that sets forth, inter alia, the basis on
which the securities are

eligible for deposit and book-entry transfer through the facilities of
DTC that must be provided by a Participant seeking eligibility of a
Foreign Security. However, today, in accordance with the Procedures,
namely the Underwriting Guide \24\ and the Operational Arrangements
(Necessary for an Issue to Become and Remain Eligible for DTC Services)
(``OA''),\25\ Participants submit eligibility requests through DTC's
systems designated for this purpose.
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    \24\ Underwriting Guide, supra note 9, at 16.
    \25\ OA, available at https://www.dtcc.com/~/media/Files/
Downloads/legal/issue-eligibility/eligibility/operational-
arrangements.pdf at 6-19.
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    In this regard, the proposed rule change would make a technical
change to the above-referenced text in the Policy Statement to remove
the reference to an ``Eligibility Questionnaire'' and replace it with a
reference to an ``eligibility request, to be submitted to the
Corporation in accordance with the Procedures.''
2. Statutory Basis
    DTC believes that the proposed rule change is consistent with the
requirements of the Securities Exchange Act of 1934 (``Act''), and the
rules and regulations thereunder applicable to DTC, in particular
Section 17A(b)(3)(F) \26\ of the Act.
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    \26\ 15 U.S.C. 78q-1(b)(3)(F).
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    Section 17A(b)(3)(F) of the Act requires, inter alia, that the
rules of the clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions.\27\ As
described above, the proposed rule change revises the Custody Guide,
the Underwriting Guide, and the Policy Statement to remove references
to obsolete functions and make other technical changes. In this regard,
the proposed rule change helps clarify the Procedures set forth in the
Custody Guide, the Underwriting Guide, and the Policy Statement with
respect to services and functions offered by DTC to Participants for
processing of applicable transactions. Therefore, by improving the
clarity of those documents with respect to those services and
functions, the proposed rule change would help promote the prompt and
accurate clearance and settlement of securities transactions,
consistent with the requirements of the Act, in particular Section
17A(b)(3)(F) of the Act, cited above.
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    \27\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will have an
impact on competition because the proposed rule change consists of
updates relating to obsolete functions and technical changes that would
not significantly affect Participants' use of the applicable services.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    DTC has not received or solicited any written comments relating to
this proposal. If any written comments are received, they would be
publicly filed as an Exhibit 2 to this filing, as required by Form 19b-
4 and the General Instructions thereto.
    Persons submitting comments are cautioned that, according to
Section IV (Solicitation of Comments) of the Exhibit 1A in the General
Instructions to Form 19b-4, the Commission does not edit personal
identifying information from comment submissions. Commenters should
submit only information that they wish to make available publicly,
including their name, email address, and any other identifying
information.
    All prospective commenters should follow the Commission's
instructions on how to submit comments, available at https://www.sec.gov/regulatory-actions/how-to-submit-comments. General
questions regarding the rule filing process or logistical questions
regarding this filing should be directed to the Main Office of the
Commission's Division of Trading and Markets at
[email protected] or<PHONE_NUMBER>.
    DTC reserves the right to not respond to any comments received.

III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \28\ of the Act and paragraph (f) \29\ of Rule 19b-4
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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    \28\ 15 U.S.C. 78s(b)(3)(A).
    \29\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-DTC-2022-010 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-DTC-2022-010. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of DTC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-DTC-2022-010 and should be submitted on
or before November 9, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-22655 Filed 10-18-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 137 (Wednesday, July 17, 2013)]
[Proposed Rules]
[Pages 42720-42722]
[FR Doc No: 2013-17138]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2013-0546; Directorate Identifier 2013-NM-050-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain The Boeing Company Model 727 airplanes. This proposed AD is
intended to complete certain mandated programs intended to support the
airplane reaching its limit of validity (LOV) of the engineering data
that support the established structural maintenance program. For
certain airplanes, this proposed AD would require modification of the
web of the horizontal stabilizer center section rear spar. For the
other airplanes, this proposed AD would require an inspection for
cracks in the web, and repair or modification as applicable. We are
proposing this AD to prevent cracking at the upper fastener holes in
the riveted web in the horizontal stabilizer center section rear spar,
which could result in failure of the spar forging and lead to
horizontal stabilizer separation and loss of control of the airplane.

DATES: We must receive comments on this proposed AD by September 3,
2013.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone 206-544-
5000, extension 1; fax<PHONE_NUMBER>; Internet https://

www.myboeingfleet.com. You may review copies of the referenced service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, Washington. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

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 (phone:<PHONE_NUMBER>) is in the ADDRESSES
section. Comments will be available in the AD docket shortly after
receipt.

FOR FURTHER INFORMATION CONTACT: Chandraduth Ramdoss, Aerospace
Engineer, Airframe Branch, ANM-120L, FAA, Los Angeles Aircraft
Certification Office (ACO), 3960 Paramount Boulevard, Lakewood,
California 90712-4137; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2013-0546;
Directorate Identifier 2013-NM-050-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

    As described in FAA Advisory Circular 120-104 (http://www.faa.gov/documentLibrary/media/Advisory_Circular/120-104.pdf), several programs
have been developed to support initiatives that will ensure the
continued airworthiness of aging airplane structure. The last element
of those initiatives is the requirement to establish a limit of
validity (LOV) of the engineering data that support the structural
maintenance program under 14 CFR 26.21. This proposed AD is the result
of an assessment of the previously established programs by Boeing
during the process of establishing the LOV for Model 727 airplanes. The
actions specified in this proposed AD are necessary to complete certain
programs to ensure the continued airworthiness of aging airplane
structure and to support an airplane reaching its LOV.
    Fatigue tests on Model 727 airplanes indicated that cracking can
occur at the upper fastener holes in the riveted web in the horizontal
stabilizer center section rear spar, because under-gauge material was
used for the web. Such cracking could result in damage to the rear spar
forging and lead to horizontal stabilizer separation and loss of
control of the airplane.

Relevant Service Information

    We reviewed Boeing Service Bulletin 55-46, dated April 8, 1970. For
information on the procedures and compliance times, see this service
information at http://www.regulations.gov by searching for Docket No.
FAA-2013-0546.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the same type design.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in the service information identified previously, except as discussed
under ``Differences Between the Proposed AD and the Service
Information.''

Differences Between the Proposed AD and the Service Information

    The effectivity of Boeing Service Bulletin 55-46, dated April 8,
1970, includes four groups of Model 727 airplanes. We have determined
that only airplanes in Group III and Group IV are still in service. The
applicability of this proposed AD therefore is limited to Group III and
Group IV airplanes.
    Boeing Service Bulletin 55-46, dated April 8, 1970, specifies a
compliance time for the modification at a ``major overhaul nearest to
20,000 hours.'' But a Structures Task Group (STG) recommended a
threshold of 60,000 total flight cycles for the modification. This
proposed AD specifies that threshold, with a grace period of 24 months
or 2,500 flight cycles. We have coordinated this compliance time with
Boeing.
    Boeing Service Bulletin 55-46, dated April 8, 1970, specifies to
contact the manufacturer for instructions on how to repair certain
conditions, but this proposed AD would require repairing those
conditions in one of the following ways:
     In accordance with a method that we approve; or
     Using data that meet the certification basis of the
airplane, and that have been approved by the Boeing Commercial
Airplanes Organization Designation Authorization (ODA) whom we have
authorized to make those findings.

Costs of Compliance

    We estimate that this proposed AD affects 106 airplanes of U.S.
registry. We estimate the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
              Action                        Labor cost            Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
Modification......................  32 work-hours x $85 per            $7,154           $9,874       $1,036,770
                                     hour = $2,720.
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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:
    (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),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) 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.

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

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

The Boeing Company: Docket No. FAA-2013-0546; Directorate Identifier
2013-NM-050-AD.

(a) Comments Due Date

    We must receive comments by September 3, 2013.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 727 airplanes,
certificated in any category, identified as Group III and Group IV
in Boeing Service Bulletin 55-46, dated April 8, 1970.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 55, Stabilizers.

(e) Unsafe Condition

    This AD is intended to complete certain mandated programs
intended to support the airplane reaching its limit of validity
(LOV) of the engineering data that support the established
structural maintenance program. We are issuing this AD to prevent
cracking at the upper fastener holes in the riveted web in the
horizontal stabilizer center section rear spar, which could lead to
horizontal stabilizer separation and loss of control of the
airplane.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Group III Airplanes: Inspection

    For airplanes identified as Group III in Boeing Service Bulletin
55-46, dated April 8, 1970: At the later of the times specified in
paragraphs (g)(1) and (g)(2) of this AD, do an eddy-current
inspection for cracks in the web, in accordance with the
Accomplishment Instructions of Boeing Service Bulletin 55-46, dated
April 8, 1970.
    (1) Before the accumulation of 60,000 total flight cycles.
    (2) Within 24 months or 2,500 flight cycles after the effective
date of this AD, whichever occurs first.

(h) Group III Airplanes: Corrective Actions

    For airplanes identified as Group III in Boeing Service Bulletin
55-46, dated April 8, 1970: After the inspection required by
paragraph (g) of this AD, do the applicable actions specified in
paragraph (h)(1) or (h)(2) of this AD.
    (1) If no crack is found, before further flight, modify the web
of the horizontal stabilizer center section rear spar, in accordance
with the Accomplishment Instructions of Boeing Service Bulletin 55-
46, dated April 8, 1970.
    (2) If any crack is found, repair before further flight using a
method approved in accordance with the procedures specified in
paragraph (j) of this AD.

(i) Group IV Airplanes: Modification

    For airplanes identified as Group IV in Boeing Service Bulletin
55-46, dated April 8, 1970: At the later of the times specified in
paragraphs (i)(1) and (i)(2) of this AD, modify the web of the
horizontal stabilizer center section rear spar, in accordance with
the Accomplishment Instructions of Boeing 727 Service Bulletin 55-
46, dated April 8, 1970.
    (1) Before the accumulation of 60,000 total flight cycles.
    (2) Within 24 months or 2,500 flight cycles after the effective
date of this AD, whichever occurs first.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. In accordance with 14
CFR 39.19, send your request to your principal inspector or local
Flight Standards District Office, as appropriate. If sending
information directly to the manager of the ACO, send it to the
attention of the person identified in the Related Information
section of this AD. Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD if it is approved by the
Boeing Commercial Airplanes Organization Designation Authorization
(ODA) that has been authorized by the Manager, Seattle ACO, to make
those findings. For a repair method to be approved, the repair must
meet the certification basis of the airplane, and the approval must
specifically refer to this AD.

(k) Related Information

    (1) For more information about this AD, contact Chandraduth
Ramdoss, Aerospace Engineer, Airframe Branch, ANM-120L, FAA, Los
Angeles Aircraft Certification Office (ACO), 3960 Paramount
Boulevard, Lakewood, California 90712-4137; phone:<PHONE_NUMBER>;
fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) For information about AMOCs, contact Berhane Alazar,
Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft
Certification Office (ACO), 1601 Lind Avenue SW., Renton, Washington
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    (3) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone 206-544-
5000, extension 1; fax<PHONE_NUMBER>; Internet https://www.myboeingfleet.com. You may review copies of the referenced
service information at the FAA, Transport Airplane Directorate, 1601
Lind Avenue SW., Renton, Washington. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

    Issued in Renton, Washington, on July 5, 2013.
Jeffrey E. Duven,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-17138 Filed 7-16-13; 8:45 am]
BILLING CODE 4910-13-P