section, and shall otherwise not be ``insolvent'' as that term is
defined in paragraph (c)(16) of this section. * * *
* * * * *
    (1)(i) * * *
    (ii) * * *
    (A) Make the computation required by Sec.  240.15c3-3(e) and set
forth in Exhibit A, Sec.  240.15c3-3a, on a weekly basis;
* * * * *
    (c) * * *
    (2) * * *
    (i) Adjustments to net worth related to unrealized profit or loss,
deferred tax provisions, and certain liabilities.* * *
* * * * *
    (F) Adding to net worth any liability or expense relating to the
business of the broker-dealer for which a third party has assumed the
responsibility, unless the broker or dealer can demonstrate that the
third-party has adequate resources independent of the broker-dealer to
pay the liability or expense.
    (G) Subtracting from net worth any contribution of capital to the
broker or dealer:
    (1) Under an agreement that provides the investor with the option
to withdraw the capital; or
    (2) That is intended to be withdrawn within a period of one year
unless the withdrawal has been approved in writing by the Examining
Authority for the broker or dealer. Any withdrawal of capital made
within one year of its contribution to the broker or dealer is presumed
to be subject to this deduction.
* * * * *
    (iv) * * *
    (B) All unsecured advances and loans; deficits in customers' and
non-customers' unsecured and partly secured notes; deficits in omnibus
credit accounts maintained in compliance with the requirements of 12
CFR 220.7(f) of Regulation T under the Act, or similar accounts carried
on behalf of another broker or dealer, after application of calls for
margin, marks to the market or other required deposits that are
outstanding 5 business days or less; deficits in customers' and non-
customers' unsecured and partly secured accounts after application of
calls for margin, marks to market or other required deposits that are
outstanding 5 business days or less, except deficits in cash accounts
as defined in 12 CFR 220.8 of Regulation T under the Act for which not
more than one extension respecting a specified securities transaction
has been requested and granted, and deducting for securities carried in
any of such accounts the percentages specified in paragraph (c)(2)(vi)
of this section or Appendix A, Sec.  240.15c3-1a; the market value of
stock loaned in excess of the value of any collateral received
therefore; receivables arising out of free shipments of securities
(other than mutual fund redemptions) in excess of $5,000 per shipment
and all free shipments (other than mutual fund redemptions) outstanding
more than 7 business days, and mutual fund redemptions outstanding more
than 16 business days; and any collateral deficiencies in secured
demand notes as defined in Appendix D, Sec.  240.15c3-1d; a broker or
dealer that participates in a loan of securities by one party to
another party shall be deemed a principal for the purpose of the
deductions required under this section, unless the broker or dealer has
fully disclosed the identity of each party to the other and each party
has expressly agreed in writing that the obligations of the broker or
dealer shall not include a guarantee of performance by the other party
and that such party's remedies in the event of a default by the other
party shall not include a right of setoff against obligations, if any,
of the broker or dealer.
* * * * *
    (E) Other deductions. All other unsecured receivables; all assets
doubtful of collection less any reserves established therefore; the
amount by which the market value of securities failed to receive
outstanding longer than thirty (30) calendar days exceeds the contract
value of such fails to receive; the funds on deposit in a ``segregated
trust account'' in accordance with 17 CFR 270.27d-1 under the
Investment Company Act of 1940, but only to the extent that the amount
on deposit in such segregated trust account exceeds the amount of
liability reserves established and maintained for refunds of charges
required by sections 27(d) and 27(f) of the Investment Company Act of
1940; and cash and securities held in a securities account at another

broker-dealer if the other broker-dealer does not treat the account,
and the assets therein, in compliance with paragraphs (b)(5) and (e) of
Sec.  240.15c3-3; Provided, That any amounts deposited in special
reserve bank accounts established for the exclusive benefit of
customers or PAB accounts pursuant to Sec.  240.15c3-3(e) and clearing
deposits shall not be deducted.
* * * * *
    (vi) * * *
    (D)(1) In the case of redeemable securities of an investment
company registered under the Investment Company Act of 1940, which
assets consist of cash or money market instruments and which is
described in Sec.  270.2a-7 of this Chapter, the deduction shall be 1%
of the market value of the greater of the long or short position.
* * * * *
    (xiv) Deduction from net worth for excess deductible amounts
related to fidelity bond coverage. Deducting, with respect to fidelity
bond coverage, the excess of any deductible amount over the maximum
deductible amount permitted by the Examining Authority for the broker
or dealer.
* * * * *

Insolvent

    (16) A broker or dealer is insolvent for the purposes of this
section if the broker-dealer:
    (i) Is the subject of any bankruptcy, equity receivership
proceeding or any other proceeding to reorganize, conserve, or
liquidate such broker or dealer or its property whether commenced
voluntarily or involuntarily or is applying for the appointment or
election of a receiver, trustee, or liquidator or similar official for
such broker or dealer or its property;
    (ii) Has made a general assignment for the benefit of creditors;
    (iii) Is insolvent within the meaning of section 101 of title 11 of
the United States Code, or is unable to meet its obligations as they
mature, and has made an admission to such effect in writing or in any
court or before any agency of the United States or any State; or
    (iv) Is unable to make such computations as may be necessary to
establish compliance with this section.
* * * * *
    (e) * * *
    (3)(i) Temporary restrictions on withdrawal of net capital. The
Commission may by order restrict, for a period of up to twenty business
days, any withdrawal by the broker-dealer of equity capital or
unsecured loan or advance to a stockholder, partner, sole proprietor,
member, employee or affiliate if the Commission, based on the
information available, concludes that such withdrawal, advance or loan
may be detrimental to the financial integrity of the broker or dealer,
or may unduly jeopardize the broker or dealer's ability to repay its
customer claims or other liabilities which may cause a significant
impact on the markets or expose the customers or creditors of the
broker or dealer to loss without taking into account the application of
the Securities Investor Protection Act of 1970.
* * * * *
    3. Section 240.15c3-1a is amended by:
    a. Removing paragraph (b)(1)(iv)(B); and
    b. Redesignating paragraphs (b)(1)(iv)(A), (b)(1)(iv)(A)(1),
(b)(1)(iv)(A)(2), and (b)(1)(iv)(A)(3) as paragraphs (b)(1)(iv),
(b)(1)(iv)(A), (b)(1)(iv)(B), and (b)(1)(iv)(C) respectively.
    4. Section 240.15c3-2 is removed and reserved.

    5. Section 240.15c3-3 is amended by:
    a. Removing from paragraph (a)(1), third sentence, the citation
``220.19'' and in its place adding the citation ``220.12'';
    b. In paragraph (a)(1)(iii), revising the phrase ``(15 U.S.C. 78aaa
et seq.)'' to read ``(15 U.S.C. 78aaa et seq.) (SIPA)'';
    c. Revising paragraphs (a)(3), (a)(4), (a)(6), (a)(7) and (a)(8);
    d. Adding paragraph (a)(16);
    e. Removing from paragraph (b)(3)(iv) the text ``the Securities
Investor Protection Act of 1970'' and in its place adding the text
``SIPA'';
    f. Removing from paragraph (b)(4)(i)(C) the text ``the Securities
Investor Protection Act of 1970'' and in its place adding the text
``SIPA'';
    g. Adding paragraph (b)(5);
    h. Removing from paragraph (c)(2) the text ``special omnibus'' and
in its place adding the text ``omnibus credit'' and removing the text
``section 4(b) of Regulation T under the Act (12 CFR 220.4(b))'' and in
its place adding the text ``section 7(f) of Regulation T (12 CFR
220.7(f))'';
    i. Removing the period at the end of paragraph (d)(3) and in its
place adding ``; or'';
    j. Redesignating paragraph (d)(4) as paragraph (d)(5);
    k. Adding a new paragraph (d)(4);
    l. Revising paragraphs (e) and (f);
    m. Revising the first sentence in paragraph (g);
    n. Removing from the first sentence of paragraph (i) the text
``reserve bank account'' and in its place adding the text ``Reserve
Bank Accounts'';
    o. Adding paragraph (j);
    p. Revising paragraph (l)(2);
    q. Removing from the last sentence in paragraph (m) the text
``special omnibus'' and in its place adding the text ``omnibus credit''
and removing the text ``section 4(b) of Regulation T [12 CFR
220.4(b)]'' and in its place adding ``section 7(f) of Regulation T (12
CFR 220.7(f))''; and
    r. Removing from the first sentence in paragraph (n) the cite
``paragraphs (d)(2) and (3)'' and its place adding the cite
``paragraphs (d)(2), (3) and (4)''.
    The revisions and additions read as follows:

Sec.  240.15c3-3  Customer protection--reserves and custody of
securities.

    (a) * * *
    (3) The term fully paid securities shall include all securities
carried for the account of a customer unless such securities are
purchased in a transaction for which the customer has not made full
payment.
    (4) The term margin securities shall mean those securities carried
for the account of a customer in a margin account as defined in section
4 of Regulation T (12 CFR 220.4), as well as securities carried in any
other account (such accounts hereinafter referred to as ``margin
accounts'') other than the securities referred to in paragraph (a)(3)
of this section.
* * * * *
    (6) The term qualified security shall mean:
    (i) A security issued by the United States or guaranteed by the
United States with respect to principal or interest; and
    (ii) A redeemable security of an unaffiliated investment company
registered under the Investment Company Act of 1940 and described in
Sec.  270.2a-7 of this chapter that:
    (A) Has assets consisting solely of cash and securities issued by
the United States or guaranteed by the United States with respect to
principal and interest;
    (B) Agrees to redeem fund shares in cash no later than the business
day following a redemption request by a shareholder; and
    (C) Has net assets (assets net of liabilities) equal to at least 10
times the value of the fund shares held by the broker-dealer in the
customer reserve account required under paragraph (e) of this section.
    (7) The term bank shall mean a bank as defined in section 3(a)(6)
of the Act and shall also mean any building and loan, savings and loan
or similar banking institution subject to supervision by a Federal
banking

authority. With respect to a broker or dealer who maintains his
principal place of business in Canada, the term bank shall also mean a
Canadian bank subject to supervision by a Canadian authority.
    (8) The term free credit balances shall mean liabilities of a
broker or dealer to customers which are subject to immediate cash
payment to customers on demand, whether resulting from sales of
securities, dividends, interest, deposits or otherwise, excluding,
however, funds in commodity accounts which are segregated in accordance
with the Commodity Exchange Act or in a similar manner, or which are
funds carried in a proprietary account as that term is defined in
regulations under the Commodity Exchange Act. The term free credit
balances also shall include such liabilities carried in a securities
account pursuant to a self-regulatory organization portfolio margining
rule approved by the Commission under section 19(b) of the Act (``SRO
portfolio margining rule''), including daily marks to market, and
proceeds resulting from closing out futures contracts and options
thereon, and, in the event the broker-dealer is the subject of a
proceeding under SIPA, the market value as of the ``filing date'' as
that term is defined in SIPA (15 U.S.C. 78lll(7)) of any long options
on futures contracts.
* * * * *
    (16) The term PAB account means a proprietary securities account of
a broker or dealer (which includes a foreign broker or dealer, or a
foreign bank acting as a broker or dealer), but shall not include an
account where the account owner is a guaranteed subsidiary of the
carrying broker or dealer, the account owner guarantees all liabilities
and obligations of the carrying broker or dealer, or the account is a
delivery-versus-payment account or a receipt-versus-payment account.
    (b) * * *
    (5) A broker or dealer shall not be required to obtain and
thereafter to maintain the physical possession or control of securities
carried for a PAB account, provided that the broker or dealer has
obtained the written permission of the account owner to use the
securities in the ordinary course of its securities business.
* * * * *
    (d) * * *
    (4) Securities included on his books or records as a proprietary
short position or as a short position for another person, excluding
positions covered by paragraph (m) of this section, for more than 10
business days (or more than 30 calendar days if the broker or dealer is
a market maker in the securities), then the broker or dealer shall, not
later than the business day following the day on which the
determination is made, take prompt steps to obtain physical possession
or control of such securities.
* * * * *
    (e) Special reserve bank accounts for the exclusive benefit of
customers and PAB accounts.
    (1) Every broker or dealer shall maintain with a bank or banks at
all times when deposits are required or hereinafter specified ``Special
Reserve Bank Account for the Exclusive Benefit of Customers''
(hereinafter referred to as the Reserve Bank Account) and a ``Special
Reserve Bank Account for Brokers and Dealers (hereinafter referred to
as the PAB Reserve Bank Account, and together with the Reserve Bank
Account, the Reserve Bank Accounts), each of which shall be separate
from the other and from any other bank account of the broker or dealer.
Such broker or dealer shall at all times maintain in the Reserve Bank
Accounts, through deposits made therein, cash and/or qualified
securities in amounts computed in accordance with the formula attached
as Exhibit A, as applied to customer and PAB accounts respectively.
    (2) With respect to each computation required pursuant to paragraph
(e)(1) of this section, it shall be unlawful for any broker or dealer
to accept or use any of the amounts under items comprising Total
Credits under the formula referred to in paragraph (e)(1) of this
section except for the specified purposes indicated under items
comprising Total Debits under the formula, and, to the extent Total
Credits exceed Total Debits, at least the net amount thereof shall be
maintained in the Reserve Bank Accounts pursuant to paragraph (e)(1) of
this section.
    (3)(i) Computations necessary to determine the amount required to
be deposited in Reserve Bank Accounts as specified in paragraph (e)(1)
of this section shall be made weekly, as of the close of the last
business day of the week, and the deposit so computed shall be made no
later than one hour after the opening of banking business on the second
following business day; provided, however, a broker or dealer which has
aggregate indebtedness not exceeding 800 per centum of net capital (as
defined in Sec.  240.15c3-1 or in the capital rules of a national
securities exchange of which it is a member and exempt from Sec.
240.15c3-1 by paragraph (b)(2) of that section) and which carries
aggregate customer funds (as defined in paragraph (a)(10) of this
section), as computed at the last required computation pursuant to this
section, not exceeding $1,000,000, may in the alternative make the
computation monthly, as of the close of the last business day of the
month, and, in such event, shall deposit not less than 105 per centum
of the amount so computed no later than one hour after the opening of
banking business on the second following business day.
    (ii) If a broker or dealer, computing on a monthly basis, has, at
the time of any required computation, aggregate indebtedness in excess
of 800 per centum of net capital, such broker or dealer shall
thereafter compute weekly as aforesaid until four successive weekly
computations are made, none of which were made at a time when his
aggregate indebtedness exceeded 800 per centum of his net capital.
    (iii) Any broker or dealer that does not carry the accounts of a
``customer'' as defined by this section or conduct a proprietary
trading business may make the computation to be performed with respect
to PAB accounts under paragraph (e)(1) of this section monthly rather
than weekly. If a broker or dealer performing the computation with
respect to PAB accounts under paragraph (e)(1) of this section on a
monthly basis is, at the time of any required computation, required to
deposit additional cash or qualified securities in the PAB Special
Reserve Account, the broker or dealer shall thereafter perform the
computation required with respect to PAB accounts under paragraph
(e)(1) of this section weekly until four successive weekly computations
are made, none of which is made at a time when the broker or dealer was
required to deposit additional cash or qualified securities in the PAB
Special Reserve Account.
    (iv) Computations in addition to the computations required in this
section, may be made as of the close of any business day, and the
deposits so computed shall be made no later than one hour after the
opening of banking business on the second following business day.
    (v) The broker or dealer shall make and maintain a record of each
such computation made pursuant to this section or otherwise and
preserve each such record in accordance with Sec.  240.17a-4.
    (4) If the computation performed under paragraph (e)(3) of this
section with respect to PAB accounts results in a deposit requirement,
the requirement may be satisfied to the extent of any excess debit in
the computation performed under paragraph (e)(3) of this

section with respect to customer accounts of the same date. However, a
deposit requirement resulting from the computation performed under
paragraph (e)(3) of this section with respect to customer accounts
cannot be satisfied with excess debits from the computation performed
under paragraph (e)(3) of this section with respect to PAB accounts.
    (5) In determining whether a broker or dealer maintains the minimum
deposits required under this section, the broker or dealer shall
exclude the total amount of any cash deposited with a parent or
affiliate bank. The broker or dealer also shall exclude cash deposited
with a non-parent and non-affiliated bank to the extent that:
    (i) The amount of the deposit exceeds 50% of the broker-dealer's
excess net capital, based on the broker-dealer's most recently filed
FOCUS report; or
    (ii) The amount of the deposit exceeds 10% of the bank's equity
capital as reported by the bank in its most recent Call Report or
Thrift Financial Report.
    (f) Notification of banks. A broker or dealer required to maintain
the Reserve Bank Accounts prescribed by this section or who maintains a
Special Account referred to in paragraph (k) of this section shall
obtain and preserve in accordance with Sec.  240.17a-4 a written
notification from each bank in which he has his Reserve Bank Accounts
or Special Account that the bank was informed that all cash and/or
qualified securities deposited therein are being held by the bank for
the exclusive benefit of customers of the broker or dealer (or, in the
case of the PAB Special Reserve Account, for the benefit of brokers or
dealers) in accordance with the regulations of the Commission, and are
being kept separate from any other accounts maintained by the broker or
dealer with the bank, and the broker or dealer shall have a written
contract with the bank which provides that the cash and/or qualified
securities shall at no time be used directly or indirectly as security
for a loan to the broker or dealer by the bank and, shall be subject to
no right, charge, security interest, lien, or claim of any kind in
favor of the bank or any person claiming through the bank.
    (g) Withdrawals from the reserve bank accounts. A broker or dealer
may make withdrawals from his Reserve Bank Accounts if and to the
extent that at the time of the withdrawal the amount remaining in each
Reserve Bank Account is not less than the amount then required by
paragraph (e) of this section. * * *
* * * * *
    (j) Treatment of free credit balances. (1) It shall be unlawful for
a broker or dealer to accept or use any free credit balance carried for
the account of any customer of the broker or dealer unless such broker
or dealer has established adequate procedures pursuant to which each
customer for whom a free credit balance is carried will be given or
sent, together with or as part of the customer's statement of account,
whenever sent but not less frequently than once every three months, a
written statement informing the customer of the amount due to the
customer by the broker or dealer on the date of the statement, and that
the funds are payable on demand of the customer.
    (2) It shall be unlawful for a broker or dealer to convert, invest,
or otherwise transfer to another account or institution, free credit
balances held in a customer's account except as provided in paragraphs
(j)(2)(i), (ii) and (iii).
    (i) A broker or dealer is permitted to convert, invest, or
otherwise transfer to another account or institution, free credit
balances in a customer's account only upon a specific order,
authorization, or draft from the customer, and only in the manner, and
under the terms and conditions, specified in the order, authorization,
or draft.
    (ii) A broker or dealer is permitted to transfer free credit
balances held in the account of a customer opened on or after the
effective date of this paragraph to either a money market mutual fund
product as described in Sec.  270.2a-7 of this chapter or an interest
bearing account at a bank without a specific order, authorization or
draft for each such transfer, provided:
    (A) The customer has previously affirmatively consented to such
treatment of the free credit balances after being notified of the
different general types of money market mutual fund and bank account
products in which the broker or dealer may transfer the free credit
balances and the applicable terms and conditions that will apply if the
broker or dealer changes the product or type of product in which free
credit balances are transferred;
    (B) The broker or dealer provides the customer on an ongoing basis
with all disclosures and notices regarding the investment and deposit
of free credit balances as required by the self-regulatory
organizations for which the broker or dealer is a member;
    (C) The broker or dealer provides notice to the customer as part of
the customer's quarterly statement of account that the money market
mutual funds or bank deposits to which the free credit balances have
been transferred can be liquidated on the customer's demand and held as
free credit balances; and
    (D) The broker or dealer provides the customer with at least 30
calendar days notice before the free credit balances will begin being
transferred to a different product, different product type, or into the
same product but under materially different terms and conditions. The
notice must describe the new money market fund, bank deposit type, or
terms and conditions, and how the customer can notify the broker or
dealer if the customer chooses not to have the free credit balances
transferred to the new product or product type, or under the new terms
and conditions.
    (iii) A broker or dealer is permitted to transfer free credit
balances that are held or will accumulate in the account of a customer
opened before the effective date of this paragraph to either a money
market mutual fund product as described in Sec.  270.2a-7 of this
chapter or an interest bearing account product at a bank without a
specific order, authorization or draft for each such transfer,
provided:
    (A) The broker or dealer provides the customer on an ongoing basis
with all disclosures and notices regarding the investment and deposit
of free credit balances as required by the self-regulatory
organizations for which the broker or dealer is a member;
    (B) The broker or dealer provides notice to the customer as part of
the customer's quarterly statement of account that the money market
mutual funds or bank deposits to which the free credit balances have
been transferred can be liquidated on the customer's demand and held as
free credit balances; and
    (C) The broker or dealer provides the customer with at least 30
calendar days notice before the free credit balances will begin being
transferred to a different product, different product type, or into the
same product but under materially different terms and conditions. The
notice must describe the new money market fund, bank deposit type, or
terms and conditions, and how the customer can notify the broker or
dealer if the customer chooses not to have the free credit balances
transferred to the new product or product type, or under the new terms
and conditions.
* * * * *
    (l) * * *
    (2) Margin securities upon full payment by such customer to the
broker or dealer of his indebtedness to the

broker or dealer; and, subject to the right of the broker or dealer
under Regulation T (12 CFR part 220) to retain collateral for his own
protection beyond the requirements of Regulation T, excess margin
securities not reasonably required to collateralize such customer's
indebtedness to the broker or dealer.
* * * * *
    6. Section 240.15c3-3a is revised to read as follows:

Sec.  240.15c3-3a  Exhibit A--Formula for determination of customer and
PAB account reserve requirements of brokers and dealers under Sec.
240.15c3-3.

------------------------------------------------------------------------
                                                  Credits       Debits
------------------------------------------------------------------------
1. Free credit balances and other credit               $XXX  ...........
 balances in customers' security accounts.
 (See Note A).................................
2. Monies borrowed collateralized by                    XXX  ...........
 securities carried for the account of
 customers (See Note B).......................
3. Monies payable against customers'                    XXX  ...........
 securities loaned (See Note C)...............
4. Customers' securities failed to receive              XXX  ...........
 (See Note D).................................
5. Credit balances in firm accounts which are           XXX  ...........
 attributable to principal sales to customers.
6. Market value of stock dividends, stock               XXX  ...........
 splits and similar distributions receivable
 outstanding over 30 calendar days............
7. Market value of short security count                 XXX  ...........
 difference over 30 calendar days old.........
8. Market value of short securities and                 XXX  ...........
 credits (not to be offset by longs or by
 debits) in all suspense accounts over 30
 calendar days................................
9. Market value of securities which are in              XXX  ...........
 transfer in excess of 40 calendar days and
 have not been confirmed to be in transfer by
 the transfer agent or the issuer during the
 40 days......................................
10. Debit balances in customers' cash and       ...........         $XXX
 margin accounts excluding unsecured accounts
 and accounts doubtful of collection. (See
 Note E)......................................
11. Securities borrowed to effectuate short     ...........          XXX
 sales by customers and securities borrowed to
 make delivery on customers' securities failed
 to deliver...................................
12. Failed to deliver of customers' securities  ...........          XXX
 not older than 30 calendar days..............
13. Margin required and on deposit with the     ...........          XXX
 Options Clearing Corporation for all option
 contracts written or purchased in customer
 and PAB accounts. (See Note F)...............
14. Margin required and on deposit with a       ...........          XXX
 clearing agency registered with the
 Commission under section 17A of the Act (15
 U.S.C. 78q-1) or a derivatives clearing
 organization registered with the Commodity
 Futures Trading Commission under section 5b
 of the Commodity Exchange Act (7 U.S.C. 7a-1)
 related to the following types of positions
 written, purchased or sold in customer
 accounts: (1) Security futures products and
 (2) futures contracts (and options thereon)
 carried in a securities account pursuant to
 an SRO portfolio margining rule (See Note G).
                                               ==============
    Total credits.............................  ...........  ...........
    Total debits..............................  ...........  ...........
15. Excess of total credits (sum of items 1-9)  ...........          XXX
 over total debits (sum of items 10-14)
 required to be on deposit in the ``Reserve
 Bank Account'' (Sec.   240.15c3-3(c)). If the
 computation is made monthly as permitted by
 this section, the deposit shall be not less
 than 105% of the excess of total credits over
 total debits.................................
------------------------------------------------------------------------

Notes Regarding the Customer Reserve Computation

    Note A. Item 1 shall include all outstanding drafts payable to
customers which have been applied against free credit balances or
other credit balances and shall also include checks drawn in excess
of bank balances per the records of the broker or dealer.

    Note B. Item 2 shall include the amount of options-related or
security futures product-related Letters of Credit obtained by a
member of a registered clearing agency or a derivatives clearing
organization which are collateralized by customers' securities, to
the extent of the member's margin requirement at the registered
clearing agency or derivatives clearing organization. Item 2 shall
also include the amount of such Letters of Credit related to other
futures contracts (and options thereon) carried in a securities
account pursuant to an SRO portfolio margining rule.

    Note C. Item 3 shall include in addition to monies payable
against customers' securities loaned the amount by which the market
value of securities loaned exceeds the collateral value received
from the lending of such securities.

    Note D. Item 4 shall include in addition to customers'
securities failed to receive the amount by which the market value of
securities failed to receive and outstanding more than thirty (30)
calendar days exceeds their contract value.

    Note E. (1) Debit balances in margin accounts shall be reduced
by the amount by which a specific security (other than an exempted
security) which is collateral for margin accounts exceeds in
aggregate value 15 percent of all securities which collateralize all
margin accounts receivable; provided, however, the required
reduction shall not be in excess of the amounts of the debit balance
required to be excluded because of this concentration rule. A
specified security is deemed to be collateral for a margin account
only to the extent it represents in value not more than 140 percent
of the customer debit balance in a margin account.
    (2) Debit balances in special omnibus accounts, maintained in
compliance with the requirements of Section 7(f) of Regulation T (12
CFR 220.7(f)) or similar accounts carried on behalf of another
broker or dealer, shall be reduced by any deficits in such accounts
(or if a credit, such credit shall be increased) less any calls for
margin, mark to the market, or other required deposits which are
outstanding 5 business days or less.
    (3) Debit balances in customers' cash and margin accounts
included in the formula under Item 10 shall be reduced by an amount
equal to 1 percent of their aggregate value.
    (4) Debit balances in cash and margin accounts of household
members and other persons related to principals of a broker or
dealer and debit balances in cash and margin accounts of affiliated
persons of a broker or dealer shall be excluded from the Reserve
Formula, unless the broker or dealer can demonstrate that such debit
balances are directly related to credit items in the formula.
    (5) Debit balances in margin accounts (other than omnibus
accounts) shall be reduced by the amount by which any single
customer's debit balance exceeds 25% (to the extent such amount is
greater than $50,000) of the broker-dealer's tentative net capital
(i.e., net capital prior to securities haircuts) unless the broker
or dealer can demonstrate that the debit balance is directly related
to credit items in the Reserve Formula. Related accounts (e.g., the
separate accounts of an individual, accounts under common control or
subject to cross guarantees) shall be deemed to be a single
customer's accounts for purposes of this provision.
    If the registered national securities exchange or the registered
national securities association having responsibility for examining
the broker or dealer (``designated examining authority'') is
satisfied, after

taking into account the circumstances of the concentrated account
including the quality, diversity, and marketability of the
collateral securing the debit balances of margin accounts subject to
this provision, that the concentration of debit balances is
appropriate, then such designated examining authority may grant a
partial or plenary exception from this provision. The debit balance
may be included in the reserve formula computation for five business
days from the day the request is made.
    (6) Debit balances of joint accounts, custodian accounts,
participation in hedge funds or limited partnerships or similar type
accounts or arrangements of a person who would be excluded from the
definition of customer (``noncustomer'') with persons included in
the definition of customer shall be included in the Reserve Formula
in the following manner: if the percentage ownership of the non-
customer is less than 5 percent then the entire debit balance shall
be included in the formula; if such percentage ownership is between
5 percent and 50 percent then the portion of the debit balance
attributable to the non-customer shall be excluded from the formula
unless the broker or dealer can demonstrate that the debit balance
is directly related to credit items in the formula; or if such
percentage ownership is greater that 50 percent, then the entire
debit balance shall be excluded from the formula unless the broker
or dealer can demonstrate that the debit balance is directly related
to credit items in the formula.

    Note F. Item 13 shall include the amount of margin deposited
with the Options Clearing Corporation to the extent such margin is
represented by cash, proprietary qualified securities and letters of
credit collateralized by customers' securities.

    Note G. (a) Item 14 shall include the amount of margin required
and on deposit with a clearing agency registered with the Commission
under section 17A of the Act (15 U.S.C. 78q-1) or a derivatives
clearing organization registered with the Commodity Futures Trading
Commission under section 5b of the Commodity Exchange Act (7 U.S.C.
7a-1) for customer accounts to the extent that the margin is
represented by cash, proprietary qualified securities, and letters
of credit collateralized by customers' securities.

    (b) Item 14 shall apply only if the broker or dealer has the margin
related to security futures products or futures (and options thereon)
carried in a securities account pursuant to an approved SRO portfolio
margining program on deposit with:
    (1) A registered clearing agency or derivatives clearing
organization that:
    (i) Maintains the highest investment-grade rating from a nationally
recognized statistical rating organization; or
    (ii) Maintains security deposits from clearing members in
connection with regulated options or futures transactions and
assessment power over member firms that equal a combined total of at
least $2 billion, at least $500 million of which must be in the form of
security deposits. For the purposes of this Note G, the term ``security
deposits'' refers to a general fund, other than margin deposits or
their equivalent, that consists of cash or securities held by a
registered clearing agency or derivative clearing organization; or
    (iii) Maintains at least $3 billion in margin deposits; or
    (iv) Does not meet the requirements of paragraphs (b)(1)(i) through
(b)(1)(iii) of this Note G, if the Commission has determined, upon a
written request for exemption by or for the benefit of the broker or
dealer, that the broker or dealer may utilize such a registered
clearing agency or derivatives clearing organization. The Commission
may, in its sole discretion, grant such an exemption subject to such
conditions as are appropriate under the circumstances, if the
Commission determines that such conditional or unconditional exemption
is necessary or appropriate in the public interest, and is consistent
with the protection of investors; and
    (2) A registered clearing agency or derivatives clearing
organization that, if it holds funds or securities deposited as margin
for security futures products or portfolio margin account futures in a
bank, as defined in section 3(a)(6) of the Act (15 U.S.C. 78c(a)(6)),
obtains and preserves written notification from the bank at which it
holds such funds and securities or at which such funds and securities
are held on its behalf. The written notification shall state that all
funds and/or securities deposited with the bank as margin (including
customer security futures products and portfolio margin account futures
margin), or held by the bank and pledged to such registered clearing
agency or derivatives clearing agency as margin, are being held by the
bank for the exclusive benefit of clearing members of the registered
clearing agency or derivatives clearing organization (subject to the
interest of such registered clearing agency or derivatives clearing
organization therein), and are being kept separate from any other
accounts maintained by the registered clearing agency or derivatives
clearing organization with the bank. The written notification also
shall provide that such funds and/or securities shall at no time be
used directly or indirectly as security for a loan to the registered
clearing agency or derivatives clearing organization by the bank, and
shall be subject to no right, charge, security interest, lien, or claim
of any kind in favor of the bank or any person claiming through the
bank. This provision, however, shall not prohibit a registered clearing
agency or derivatives clearing organization from pledging customer
funds or securities as collateral to a bank for any purpose that the
rules of the Commission or the registered clearing agency or
derivatives clearing organization otherwise permit; and
    (3) A registered clearing agency or derivatives clearing
organization establishes, documents, and maintains:
    (i) Safeguards in the handling, transfer, and delivery of cash and
securities;
    (ii) Fidelity bond coverage for its employees and agents who handle
customer funds or securities. In the case of agents of a registered
clearing agency or derivatives clearing organization, the agent may
provide the fidelity bond coverage; and
    (iii) Provisions for periodic examination by independent public
accountants; and
    (iv) A derivatives clearing organization that, if it is not
otherwise registered with the Commission, has provided the Commission
with a written undertaking, in a form acceptable to the Commission,
executed by a duly authorized person at the derivatives clearing
organization, to the effect that, with respect to the clearance and
settlement of the customer securities futures products and portfolio
margin account futures of the broker or dealer, the derivatives
clearing organization will permit the Commission to examine the books
and records of the derivatives clearing organization for compliance
with the requirements set forth in Sec.  240.15c3-3a, Note G (b)(1)
through (3).
    (c) Item 14 shall apply only if a broker or dealer determines, at
least annually, that the registered clearing agency or derivatives
clearing organization with which the broker or dealer has on deposit
margin related to securities future products or portfolio margin
account futures meets the conditions of this Note G.

Notes Regarding the PAB Reserve Computation

    Note 1. Broker-dealers should use the formula in Exhibit A for
the purposes of computing the PAB reserve requirement substituting
the term ``brokers or dealers'' for the term ``customers.''

    Note 2. Any credit (including a credit applied to reduce a
debit) that is included in the computation required by Sec.
240.15c3-3 with respect to customer accounts (the ``customer reserve
computation'') may not be included as a credit in the computation
required by Sec.  240.15c3-3 with respect to PAB accounts (the ``PAB
reserve computation'').

    Note 3. Note E(1) to Sec.  240.15c3-3a shall not apply to the
PAB reserve computation.

    Note 4. Note E(3) to Sec.  240.15c3-3a which reduces debit
balances by 1% shall not apply to the PAB reserve computation.

    Note 5. Commissions receivable and other receivables of another
broker or dealer from the broker or dealer (excluding clearing
deposits) that are otherwise allowable assets under Sec.  240.15c3-1
shall not be included in the PAB reserve computation, provided the
amounts have been clearly identified as receivables on the books and
records of the other broker or dealer and as payables on the books
of the broker or dealer. Commissions receivable and other
receivables of another broker or dealer from the broker or dealer
that are otherwise non-allowable assets under Sec.  240.15c3-1 and
clearing deposits of another broker or dealer may be included as
``credit balances'' for purposes of the PAB reserve computation,
provided the commissions receivable and other receivables are
subject to immediate cash payment to the other broker or dealer and
the clearing deposit is subject to payment within 30 days.

    Note 6. Credits included in the PAB reserve computation that
result from the use of securities held for a PAB account (``PAB
securities'') that are pledged to meet intra-day margin calls in a
cross-margin account established between The Options Clearing
Corporation and any regulated commodity exchange may be reduced to
the extent that the excess margin held by the other clearing
corporation in the cross-margin relationship is used the following
business day to replace the PAB securities that were previously
pledged. In addition, balances resulting from a portfolio margin
account that are segregated pursuant to Commodity Futures Trading
Commission regulations need not be included in the PAB reserve
computation.

    Note 7. Deposits received prior to a transaction pending
settlement which are $5 million or greater for any single
transaction or $10 million in aggregate may be excluded as credits
from the PAB reserve computation if such balances are placed and
maintained in a separate PAB Reserve Account by 12 noon Eastern Time
on the following business day. Thereafter, the money representing
any such deposits may be withdrawn to complete the related
transactions without performing a new PAB reserve computation.

    Note 8. A credit balance resulting from a PAB reserve
computation may be reduced by the amount that items representing
such credits are swept into money market funds or mutual funds of an
investment company registered under the Investment Company Act of
1940 on or prior to 10 a.m. Eastern Time on the deposit date
provided that the credits swept into any such fund are not subject
to any right, charge, security interest, lien, or claim of any kind
in favor of the investment company or the broker or dealer. Any
credits that have been swept into money market funds or mutual funds
must be maintained in the name of a particular broker or for the
benefit of another broker.

    Note 9. Clearing deposits required to be maintained at
registered clearing agencies may be included as debits in the PAB
reserve computation to the extent the percentage of the deposit,
which is based upon the clearing agency's aggregate deposit
requirements (e.g., dollar trading volume), that relates to the
proprietary business of other brokers and dealers can be identified.

    Note 10. A broker or dealer that clears PAB accounts through an
affiliate or third party clearing broker must include these PAB
account balances and the omnibus PAB account balance in its PAB
reserve computation.

    7. Section 240.17a-3 is amended by adding paragraph (a)(23) and to
read as follows:

Sec.  240.17a-3  Records to be made by certain exchange members,
brokers and dealers.

    (a) * * *
    (23) A record documenting the internal risk management controls
established and maintained by the member, broker or dealer to assist it
in analyzing and managing the risks associated with its business
activities, Provided, That the records required by this paragraph
(a)(23) need only be made if the member, broker or dealer has more
than:
    (i) $1,000,000 in aggregate credit items as computed under Sec.
240.15c3-3a; or
    (ii) $20,000,000 in capital, which includes debt subordinated in
accordance with Sec.  240.15c3-1d.
* * * * *
    8. Section 240.17a-4 is amended by:
    a. Removing from paragraph (b)(1) the citation ``Sec.  240.17a-
3(f)'' and its place adding the citation ``Sec.  240.17a-3(g)'';
    b. Removing from paragraph (b)(9) the citation ``Sec.  240.15c3-
3(d)(4)'' and in its place adding the citation ``Sec.  240.15c3-
3(d)(5)''; and
    c. Adding paragraph (e)(9).
    The addition reads as follows:

Sec.  240.17a-4  Records to be preserved by certain exchange members,
brokers and dealers.

* * * * *
    (e) * * *
    (9) All records required pursuant to paragraph (a)(23) of Sec.
240.17a-3 until three years after the termination of the use of the
system of controls or procedures documented therein.
* * * * *
    9. Section 240.17a-11 is amended by:
    a. Revising the first sentence of paragraph (b)(1);
    b. Removing from the introductory text of paragraph (c) the text
``or (c)(4)'' and in its place adding the text ``(c)(4) or (c)(5)'';
and
    c. Adding paragraph (c)(5).
    The revision and addition read as follows:

Sec.  240.17a-11  Notification provisions for brokers and dealers.

* * * * *
    (b)(1) Every broker or dealer whose net capital declines below the
minimum amount required pursuant to Sec.  240.15c3-1, or is insolvent
as that term is defined in paragraph (c)(16) of Sec.  240.15c3-1, shall
give notice of such deficiency that same day in accordance with
paragraph (g) of this section. * * *
* * * * *
    (c) * * *
    (5) If a computation made by a broker or dealer pursuant to Sec.
240.15c3-1 shows that the total amount of money payable against all
securities loaned or subject to a repurchase agreement or the total
contract value of all securities borrowed or subject to a reverse
repurchase agreement is in excess of 2500 percent of its tentative net
capital; provided, however, that for purposes of this leverage test
transactions involving government securities, as defined in section
3(a)(42) of the Act (15 U.S.C. 78c(a)(42), shall be excluded from the
calculation; provided further, however, that a broker or dealer shall
not be required to send the notice required by this paragraph if it
submits a monthly report of its securities lending and borrowing and
repurchase and reverse repurchase activity (including the total amount
of money payable against securities loaned or subject to a repurchase
agreement and the total contract value of securities borrowed or
subject to a reverse repurchase agreement) to its designated examining
authority.
* * * * *

    By the Commission.

     Dated: March 9, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7-4693 Filed 3-16-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54101-54102]
[FR Doc No: 2016-19312]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-N-0001]

Request for Nominations on the Tobacco Products Scientific
Advisory Committee

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Food and Drug Administration (FDA) is requesting that any
industry organizations interested in participating in the selection of
a nonvoting member to represent the interests of tobacco growers to
serve on the Tobacco Products Scientific Advisory Committee for the
Center for Tobacco Products (CTP), notify FDA in writing. FDA is also
requesting nominations for a nonvoting member to represent the
interests of tobacco growers to serve on the Tobacco Products
Scientific Advisory Committee, and an alternate to this representative.
A nominee may either be self-nominated or nominated by an organization
to serve as a nonvoting industry representative. Nominations

will be accepted for current vacancies effective with this notice.

DATES: Any industry organization interested in participating in the
selection of an appropriate nonvoting member to represent the interests
of tobacco growers must send a letter stating that interest to FDA by
September 14, 2016 (see sections I and II of this document for further
details). Concurrently, nomination materials for prospective candidates
should be sent to FDA by September 14, 2016.

ADDRESSES: All statements of interest from industry organizations
interested in participating in the selection process should be sent to
Caryn Cohen (see FOR FURTHER INFORMATION CONTACT). All nominations for
nonvoting industry representatives should be submitted electronically
by accessing the FDA Advisory Committee Membership Nomination Portal
at: https://www.accessdata.fda.gov/scripts/FACTRSPortal/FACTRS/index.cfm or by mail to Advisory Committee Oversight and Management
Staff, Food and Drug Administration, 10903 New Hampshire Ave., Bldg.
32, Rm. 5103, Silver Spring, MD 20993-0002. Information about becoming
a member of an FDA advisory committee can also be obtained by visiting
FDA's Web site at: http://www.fda.gov/AdvisoryCommittees/default.htm.

FOR FURTHER INFORMATION CONTACT: Caryn Cohen, Office of Science, Center
for Tobacco Products, Food and Drug Administration, Center for Tobacco
Products, Document Control Center, Bldg. 71, Rm. G335, 10903 New
Hampshire Ave., Silver Spring, MD 20993-0002, 1-877-287-1373 (choose
Option 5), email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Agency intends to add nonvoting industry
representatives to the following advisory committee:

I. Tobacco Products Scientific Advisory Committee

    The Tobacco Products Scientific Advisory Committee (the Committee)
advises the Commissioner of Food and Drugs (the Commissioner) or
designee in discharging responsibilities related to the regulation of
tobacco products. The Committee reviews and evaluates safety,
dependence, and health issues relating to tobacco products and provides
appropriate advice, information, and recommendations to the
Commissioner.

II. Selection Procedure

    Any industry organization interested in participating in the
selection of an appropriate nonvoting member to represent the interests
of tobacco growers should send a letter stating that interest to the
FDA contact (see FOR FURTHER INFORMATION CONTACT) within 30 days of
publication of this document (see DATES). Within the subsequent 30
days, FDA will send a letter to each organization that has expressed an
interest, attaching a complete list of all such organizations, and a
list of all nominees along with their current r[eacute]sum[eacute]s.
The letter will also state that it is the responsibility of the
interested organizations to confer with one another and to select a
candidate, within 60 days after the receipt of the FDA letter, to serve
as the nonvoting member to represent the interests of tobacco growers
for the committee. The interested organizations are not bound by the
list of nominees in selecting a candidate. However, if no individual is
selected within 60 days, the Commissioner will select the nonvoting
member to represent the interests of tobacco growers.

III. Application Procedure

    Individuals may self-nominate and/or an organization may nominate
one or more individuals to serve as a nonvoting member to represent the
interests of tobacco growers. Contact information, current curriculum
vitae, and the name of the committee of interest should be sent to the
FDA Advisory Committee Membership Nomination Portal (see ADDRESSES)
within 30 days of publication of this document (see DATES). FDA will
forward all nominations to the organizations expressing interest in
participating in the selection process for the committee. (Persons who
nominate themselves as nonvoting industry representatives will not
participate in the selection process.)
    FDA seeks to include the views of women, and men, members of all
racial and ethnic groups, and individuals with and without disabilities
on its advisory committees and, therefore encourages nominations of
appropriately qualified candidates from these groups.
    This notice is issued under the Federal Advisory Committee Act (5
U.S.C. app. 2) and 21 CFR part 14, relating to advisory committees.

    Dated: August 9, 2016.
Janice M. Soreth,
Acting Associate Commissioner, Special Medical Programs.
[FR Doc. 2016-19312 Filed 8-12-16; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 76, Number 164 (Wednesday, August 24, 2011)]
[Rules and Regulations]
[Pages 52879-52880]
[FR Doc No: C1-2011-20963]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 65

[Docket ID FEMA-2011-0002]

Changes in Flood Elevation Determinations

Correction

    In rule document 2011-20963 appearing on pages 50915-50918 in the
issue of Wednesday, August 17, 2011, make the following correction:

Sec.  65.4  [Amended]

0
1. On page 50917, in the untitled table, the second through the sixth
entries should read:

--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Colorado:
    Adams (FEMA Docket No.: B-      City of Commerce City  February 1, 2011;     The Honorable Paul         June 8, 2011...................       080006
     1186).                          (10-08-0226P).         February 8, 2011;     Natale, Mayor, City of
                                                            The Commerce City     Commerce City, 7887 East
                                                            Sentinel Express.     60th Avenue, Commerce
                                                                                City, CO 80022.
    Adams (FEMA Docket No.: B-      City of Thornton (10-  February 17, 2011;    The Honorable Mack         June 24, 2011..................       080007
     1191).                          08-0748P).             February 24, 2011;    Goodman, Mayor Pro Tem,
                                                            The Northglenn-       City of Thornton, 9500
                                                            Thornton Sentinel.    Civic Center Drive,
                                                                                Thornton, CO 80229.
    Adams (FEMA Docket No.: B-      Unincorporated areas   February 17, 2011;    The Honorable W.R.         June 24, 2011..................       080001
     1191).                          of Adams County (10-   February 24, 2011;    ``Skip'' Fischer,
                                     08-0748P).             The Northglenn-       Chairman, Adams County
                                                            Thornton Sentinel.    Board of Commissioners,
                                                                                4430 South Adams County
                                                                                Parkway, Brighton, CO
                                                                                80601.
    Douglas (FEMA Docket No. B-     Unincorporated areas   February 10, 2011;    The Honorable Jill         June 17, 2011..................       080049
     1191).                          of Douglas County      Feburary 17, 2011;    Repella, Chair, Douglas
                                     (11-08-0030P).         The Douglas County    County Board of
                                                            News-Press.           Commissioners, 100 3rd
                                                                                Street, Castle Rock, CO
                                                                                80104.
    Douglas (FEMA Docket No.: B-    Unincorporated areas   March 10, 2011;       The Honorable Jill         February 28, 2011..............       080049
     1195).                          of Douglas County      March 17, 2011; The   Repella, Chair, Douglas
                                     (11-08-0287P).         Douglas County News-  County Board of
                                                            Press.                Commissioners, 100 3rd
                                                                                Street, Castle Rock, CO
                                                                                80104.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
2. On the same page, in the same table, the fourteenth entry should
read:

--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Oklahoma: Tulsa (FEMA Docket No.:   City of Broken Arrow,  February 23, 2010;    The Honorable Mike         March 18, 2010.................       400236
 B-1113).                            (09-06-3069P).         March 2, 2010;        Lester, Mayor, City of
                                                            Tulsa Daily           Broken Arrow, 220 South
                                                            Commerce and Legal    1st Street, Broken
                                                            News.                 Arrow, OK 74012.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
3. On the same page, in the same table, the twentieth entry should
read:

--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Texas: Bexar (FEMA Docket No.: B-   City of San Antonio    April 23, 2010;       The Honorable Julian       April 26, 2010.................       480045
 1135).                              (09-06-3107P).         April 30, 2010; The   Castro, Mayor, City of
                                                            San Antonio Express-  San Antonio, P.O. Box
                                                            News.                 839966, San Antonio, TX
                                                                                78283.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
4. On page 50918, in the same table, the first through the third
entries should read:

--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Texas:
    Collin (FEMA Docket No.: B-     City of Allen (09-06-  November 6, 2009;     The Honorable Stephen      October 28, 2009...............       480131
     1116).                          3028P).                November 13, 2009;    Terrell, Mayor, City of
                                                            The McKinney          Allen, 305 Century
                                                            Courier-Gazette.      Parkway, Allen, TX 75013.

    Collin (FEMA Docket No.: B-     City of McKinney (09-  November 6, 2009;     The Honorable Brian        October 28, 2009...............       480135
     1116).                          06-3028P).             November 13, 2009;    Loughmiller, Mayor, City
                                                            The McKinney          of McKinney, 222 North
                                                            Courier-Gazette.      Tennessee Street, P.O.
                                                                                Box 517, McKinney, TX
                                                                                75069.
    Collin (FEMA Docket No.: B-     City of McKinney (10-  February 4, 2010;     The Honorable Brian        June 11, 2010..................       480135
     1113).                          06-0322P).             February 11, 2010;    Loughmiller, Mayor, City
                                                            The McKinney          of McKinney, 222 North
                                                            Courier-Gazette.      Tennessee Street, P.O.
                                                                                Box 517, McKinney, TX
                                                                                75069.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
5. On the same page, in the same table, the ninth entry should read:

--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Texas: Johnson (FEMA Docket No.: B- City of Mansfield (10- July 20, 2010; July   The Honorable David Cook,  November 24, 2010..............       480606
 1162).                              06-0427P).             27, 2010; The Fort    Mayor, City of
                                                            Worth Star-Telegram.  Mansfield, 1200 East
                                                                                Broad Street, Mansfield,
                                                                                TX 76063.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. C1-2011-20963 Filed 8-23-11; 8:45 am]
BILLING CODE 1505-01-D


[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Proposed Rules]
[Pages 58062-58066]
[FR Doc No: 2019-23529]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0720; Product Identifier 2019-NM-117-AD]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

-----------------------------------------------------------------------

SUMMARY: The FAA proposes to supersede Airworthiness Directive (AD)
2003-09-04 R1, which applies to certain Bombardier, Inc., Model CL-600-
2B19 (Regional Jet series 100 & 440) airplanes. AD 2003-09-04 R1
requires revising the airworthiness limitations for certain structural
inspections; repair if necessary; and submission of inspection findings
to the airplane manufacturer. Since the FAA issued AD 2003-09-04 R1,
the agency determined that additional airplanes are affected, that new
or more restrictive airworthiness limitations are necessary, and that
the compliance time must be revised to include a phase-in time for
certain tasks. This proposed AD would revise the applicability to
include additional airplanes; revise certain compliance times; and
require revising the existing maintenance or inspection program, as
applicable, to incorporate new or more restrictive airworthiness
limitations. The FAA is proposing this AD to address the unsafe
condition on these products.

DATES: The FAA must receive comments on this proposed AD by December
16, 2019.

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 NPRM, contact
Bombardier, Inc., 200 C[ocirc]te-Vertu Road West, Dorval, Qu[eacute]bec
H4S 2A3, Canada; North America toll-free telephone 1-866-538-1247 or
direct-dial telephone 1-514-855-2999; email<EMAIL_ADDRESS>
internet http://www.bombardier.com. You may view this referenced
service information at the FAA, Transport Standards Branch, 2200 South
216th St., Des Moines, WA. 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 by searching for and locating Docket No. FAA-2019-
0720; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, the regulatory evaluation, any comments received, and other
information. The street address for Docket Operations is listed above.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Andrea Jimenez, Aerospace Engineer,
Airframe and Mechanical Systems Section, FAA, New York ACO Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites 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-2019-0720;
Product Identifier 2019-NM-117-AD'' at the beginning of your comments.
The agency specifically invites comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. The
FAA will consider all comments received by the closing date and may
amend this proposed AD based on those comments.
    The FAA will post all comments received, without change, to http://www.regulations.gov, including any personal information you provide.
The agency will also post a report summarizing each substantive verbal
contact received about this proposed AD.

Discussion

    The FAA issued AD 2003-09-04 R1, Amendment 39-13305 (68 FR 54985,
September 22, 2003) (``AD 2003-09-04 R1''), for certain Bombardier
Model CL-600-2B19 (Regional Jet series 100 & 440) airplanes. (AD 2003-
09-04 R1 revised AD 2003-09-04, Amendment 39-13133 (68 FR 22587, April
29, 2003).) AD 2003-09-04 R1 requires revising the airworthiness
limitations section of the Instructions for Continued Airworthiness to
incorporate new structural inspection intervals for the pressure floor
skin of the center fuselage at fuselage stations 460 and 513; repair if
necessary; and submission of inspection findings to the airplane
manufacturer. AD 2003-09-04 R1 resulted from a report of fatigue cracks
on the pressure floor skin of the center fuselage at fuselage stations
460 and 513. The FAA issued AD 2003-09-04 R1 to address fatigue cracks
of the pressure floor skin of the center fuselage at fuselage stations
460 and 513, which could result in failure of the pressure floor skin
and consequent rapid decompression of the airplane during flight.

Actions Since AD 2003-09-04 R1 Was Issued

    Since the FAA issued AD 2003-09-04 R1, the agency has determined
that the applicability must be revised to include additional airplane
serial numbers, that new or more restrictive airworthiness limitations
are necessary, and that the compliance time must be revised to include
a phase-in time for certain airworthiness limitations tasks.
    Transport Canada Civil Aviation (TCCA), which is the civil aviation
authority for Canada, has issued Canadian AD CF-2002-39R2, dated August
15, 2019 (referred to after this as the Mandatory Continuing
Airworthiness Information, or ``the MCAI''), to correct an unsafe
condition for certain Bombardier Model CL-600-2B19 (Regional Jet series
100 & 440) airplanes.
    This proposed AD was prompted by a report of fatigue cracks on the
pressure floor skin of the center fuselage at fuselage stations 460 and
513. The FAA is proposing this AD to address such fatigue cracks, which
could result in failure of the pressure floor skin and consequent rapid
decompression of the airplane during flight. See the MCAI for
additional background information.

Related Service Information Under 1 CFR Part 51

    Bombardier has issued Bombardier CL-600-2B19 Temporary Revision 2B-
2265, dated July 19, 2018, to Appendix B--Airworthiness Limitations, of
Part 2 of the Bombardier Maintenance Requirements Manual; and
Bombardier CL-600-2B19 Temporary Revision 2B-2266, dated July 19, 2018,
to Appendix B--Airworthiness Limitations, of Part 2 of the Bombardier
Maintenance Requirements Manual. These temporary revisions describe
airworthiness limitations for inspections of the pressure floor skin.
These documents are distinct since they describe different
airworthiness limitations.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

FAA's Determination

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the agency has been notified of the unsafe condition described in the
MCAI and service information referenced above. The FAA is proposing
this AD because the agency evaluated all the relevant information and
determined the unsafe condition described previously is likely to exist
or develop on other products of the same type design.

Proposed Requirements of This NPRM

    This proposed AD would require revising the existing maintenance or
inspection program, as applicable, to incorporate new or more
restrictive airworthiness limitations.
    This AD requires revisions to certain operator maintenance
documents to include new actions (e.g., inspections). Compliance with
these actions is required by 14 CFR 91.403(c). For airplanes that have
been previously modified, altered, or repaired in the areas addressed
by this proposed AD, the operator may not be able to accomplish the
actions described in the revisions. In this situation, to comply with
14 CFR 91.403(c), the operator must request approval for an alternative
method of compliance according to paragraph (k)(1) of this proposed AD.
The request should include a description of changes to the required
actions that will ensure the continued damage tolerance of the affected
structure.

Differences Between This Proposed AD and the MCAI or Service
Information

    The MCAI specifies that if there are findings from the
airworthiness limitations section (ALS) inspection tasks, corrective
actions must be accomplished in accordance with Bombardier maintenance
documentation. However, this proposed AD does not include that
requirement. Operators of U.S.-registered airplanes are required by
general airworthiness and operational regulations to perform
maintenance using methods that are acceptable to the FAA. The FAA
considers those methods to be adequate to address any corrective
actions necessitated by the findings of ALS inspections required by
this proposed AD.

Costs of Compliance

    The FAA estimates that this proposed AD would affect 37 airplanes
of U.S. registry.
    The FAA has determined that revising the maintenance or inspection
program takes an average of 90 work-hours per operator, although the
agency recognizes that this number may vary from operator to operator.
In the past, the agency has estimated that this action takes 1 work-
hour per airplane. Since operators incorporate maintenance or
inspection program changes for their affected fleet(s), the FAA has
determined that a per-operator estimate is more accurate than a per-
airplane estimate. Therefore, the agency estimates the average total
cost per operator to be $7,650 (90 work-hours x $85 per work-hour).

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.
    The FAA is 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.
    This proposed AD is issued in accordance with authority delegated
by the Executive Director, Aircraft Certification Service, as
authorized by FAA Order 8000.51C. In accordance with that order,
issuance of ADs is normally a function of the Compliance and
Airworthiness Division, but during this transition period, the
Executive Director has delegated the authority to issue ADs applicable
to transport category airplanes and associated appliances to the
Director of the System Oversight Division.

Regulatory Findings

    The FAA 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) Will not affect intrastate aviation in Alaska, 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.

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 removing Airworthiness Directive (AD)
2003-09-04 R1, Amendment 39-13305 (68 FR 54985, September 22, 2003),
and adding the following new AD:

Bombardier, Inc.: Docket No. FAA-2019-0720; Product Identifier 2019-
NM-117-AD.

(a) Comments Due Date

    The FAA must receive comments by December 16, 2019.

(b) Affected ADs

    This AD replaces AD 2003-09-04 R1, Amendment 39-13305 (68 FR
54985, September 22, 2003) (``AD 2003-09-04 R1'').

(c) Applicability

    This AD applies to Bombardier Model CL-600-2B19 (Regional Jet
series 100 & 440) airplanes, certificated in any category, serial
numbers 7003 through 8999 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 53, Fuselage.

(e) Reason

    This AD was prompted by a report of cracks occurring on the
pressure floor skin at fuselage stations (FS) 460 and 513. The FAA
is issuing this AD to address such fatigue cracks, which could
result in failure of the pressure floor skin and consequent rapid
decompression of the airplane during flight.

(f) Compliance

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

(g) Maintenance Program Revision for Serial Numbers 7003 Through 8079

    For airplane serial numbers 7003 through 8079 inclusive: Within
30 days from the effective date this AD, revise the existing
maintenance or inspection program, as applicable, by incorporating
the information specified in Airworthiness Limitations (AWL) task
number 53-41-149 of Bombardier CL-600-2B19 Temporary Revision 2B-
2265, dated July 19, 2018, to Appendix B--Airworthiness Limitations,
of Part 2 of the Bombardier Maintenance Requirements Manual.
    (1) The initial compliance time for doing the task is at the
time specified in figure 1 to paragraph (g) of this AD, or within 90
days after the effective date of this AD, whichever occurs later.
    (2) For airplanes on which Bombardier Service Bulletin 601R-53-
067, Bombardier Service Bulletin 601R-53-077, and AWL task number
53-41-194 have been done, the inspections in AWL task number 53-41-
149 are not required in the areas covered by doublers at FS460 and
FS513.

[GRAPHIC] [TIFF OMITTED] TP30OC19.000

    (3) For airplanes on which the initial inspection has been
accomplished at 18,325 or more total flight cycles, and no cracks
were found, as of October 7, 2003 (the effective date of AD 2003-09-
04), the repetitive interval of 10,000 flight cycles starts from the
completion date of the initial inspection.
    (4) For airplanes that were previously inspected using AWL task
number 53-41-193, perform inspection in AWL task number 53-41-149
within 10,000 flight cycles from the previously accomplished
inspection.

(h) Maintenance Program Revision for Serial Numbers 8080 Through 8999

    (1) For airplane serial numbers 8080 through 8999 inclusive:
Within 30 days from the effective date of this AD, revise the
existing maintenance or inspection program, as applicable, by
incorporating the information specified in AWL task number 53-41-193
of Bombardier CL-600-2B19 Temporary Revision 2B-2266, dated July 19,
2018, to Appendix B--Airworthiness Limitations, of Part 2 of the
Bombardier Maintenance Requirements Manual. Except as specified in
paragraph (h)(2) of this AD, the initial compliance time for doing
the task is at the time specified in Bombardier CL-600-2B19
Temporary Revision 2B-2266, dated July 19, 2018, to Appendix B--
Airworthiness Limitations, of Part 2 of the Bombardier Maintenance
Requirements Manual, or within 90 days after the effective date of
this AD, whichever occurs later
    (2) For airplanes that were previously inspected using AWL task
number 53-41-149, perform inspection in AWL task number 53-41-193
within 10,000 flight cycles from the previously accomplished
inspection.

(i) Corrective Actions

    If any crack is found during any inspection required by this AD,
before further flight, do the actions specified in paragraphs (i)(1)
and (2) of this AD.
    (1) Repair using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc.'s TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.
    (2) Revise the existing maintenance or inspection program, as
applicable, by inserting a copy of the new airworthiness limitation
and inspection requirements associated with the repair approved by
the FAA, TCCA, or DAO specified in paragraph (i)(1) of this AD into
Bombardier CL-600-2B19 Temporary Revision 2B-2265, dated July 19,
2018, to Appendix B--Airworthiness Limitations, of Part 2 of the
Bombardier Maintenance Requirements Manual; or Bombardier CL-600-
2B19 Temporary Revision 2B-2266, dated July 19, 2018, to Appendix
B--Airworthiness Limitations, of Part 2 of the Bombardier
Maintenance Requirements Manual; as applicable.

(j) No Alternative Actions or Intervals

    After the maintenance or inspection program has been revised as
required by paragraphs (g), (h), and (i)(2) of this AD, as
applicable, no alternative actions (e.g., inspections) or intervals
may be used unless the actions or intervals are approved as an AMOC
in accordance with the procedures specified in paragraph (k)(1) of
this AD.

(k) Other FAA AD Provisions

    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO Branch, 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 certification
office, send it to ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
    (i) 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.
    (ii) AMOCs approved previously for AD 2003-09-04 R1 are approved
as AMOCs for the corresponding provisions of this AD.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective

actions from a manufacturer, the action must be accomplished using a
method approved by the Manager, New York ACO Branch, FAA; or TCCA;
or Bombardier, Inc.'s TCCA DAO. If approved by the DAO, the approval
must include the DAO-authorized signature.

(l) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian AD CF-2002-39R2, dated August 15, 2019, for related
information. This MCAI may be found in the AD docket on the internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2019-0720.
    (2) For more information about this AD, contact Andrea Jimenez,
Aerospace Engineer, Airframe and Mechanical Systems Section, FAA,
New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY
11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (3) For service information identified in this AD, contact
Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; Widebody Customer Response Center
North America toll-free telephone 1-866-538-1247 or direct-dial
telephone 1-514-855-2999; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet http://www.bombardier.com. You
may view this service information at the FAA, Transport Standards
Branch, 2200 South 216th St., Des Moines, WA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

    Issued in Des Moines, Washington, on October 22, 2019.
Dionne Palermo,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2019-23529 Filed 10-29-19; 8:45 am]
BILLING CODE 4910-13-P