[Federal Register Volume 84, Number 125 (Friday, June 28, 2019)]
[Notices]
[Pages 31056-31057]
[FR Doc No: 2019-13825]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 3273-024]

Chittenden Falls Hydropower, Inc.; Notice of Application Tendered
for Filing With the Commission and Soliciting Additional Study Requests
and Establishing Procedural Schedule for Relicensing and a Deadline for
Submission of Final Amendments

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: Subsequent Minor License.
    b. Project No.: 3273-024.
    c. Date Filed: May 31, 2019.
    d. Applicant: Chittenden Falls Hydropower, Inc.
    e. Name of Project: Chittenden Falls Hydropower Project.
    f. Location: On Kinderhook Creek, near the Town of Stockport,
Columbia County, New York. The project does not occupy federal land.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: Mark Boumansour, Chief Operating Officer,
Gravity Renewables, Inc., 1401 Walnut Street, Suite 420, Boulder, CO
80302;<PHONE_NUMBER>; email--

[email protected]gravityrenewables.com and/or Celeste N. Fay, Regulatory Manager,
Gravity Renewables, Inc., 5 Dartmouth Drive, Suite 104, Auburn, NH
03032;<PHONE_NUMBER>; [email protected]gravityrenewables.com.
    i. FERC Contact: Monir Chowdhury at<PHONE_NUMBER>; or email at
<EMAIL_ADDRESS>    j. Cooperating agencies: Federal, state, local, and tribal agencies
with jurisdiction and/or special expertise with respect to
environmental issues that wish to cooperate in the preparation of the
environmental document should follow the instructions for filing such
requests described in item l below. Cooperating agencies should note
the Commission's policy that agencies that cooperate in the preparation
of the environmental document cannot also intervene. See, 94 FERC ]
61,076 (2001).
    k. Pursuant to section 4.32(b)(7) of 18 CFR of the Commission's
regulations, if any resource agency, Indian Tribe, or person believes
that an additional scientific study should be conducted in order to
form an adequate factual basis for a complete analysis of the
application on its merit, the resource agency, Indian Tribe, or person
must file a request for a study with the Commission not later than 60
days from the date of filing of the application, and serve a copy of
the request on the applicant.
    l. Deadline for filing additional study requests and requests for
cooperating agency status: July 30, 2019.
    The Commission strongly encourages electronic filing. Please file
additional study requests and requests for cooperating agency status
using the Commission's eFiling system at http://www.ferc.gov/docs-filing/efiling.asp. For assistance, please contact FERC Online Support
at<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202)
502-8659 (TTY). In lieu of electronic filing, please send a paper copy
to: Secretary, Federal Energy Regulatory Commission, 888 First Street
NE, Washington, DC 20426. The first page of any filing should include
docket number P-3273-024.
    m. This application is not ready for environmental analysis at this
time.
    n. The Chittenden Falls Project consists of the following existing
facilities: (1) An approximately 4-foot-high, 320-foot-long overflow
concrete gravity dam, topped with 2-foot-high wooden flashboards, and
having a dam crest elevation of 59.6 feet National Geodetic Vertical
Datum of 1929 (NGVD29); (2) a reservoir with a surface area of about 18
acres and a storage capacity of 63 acre-feet at a normal pool elevation
of 61.6 feet NGVD29; (3) an 8-foot-wide, 22-foot-long intake structure
on the east side of the dam connecting to an 8-foot-wide, 118-foot-long
concrete and wooden power canal; (4) a 7.5-foot-diameter, 45-foot-long
steel penstock that conveys water from the power canal to a powerhouse
on the east side of the dam containing two turbine-generator units with
a total rated capacity of 453 kilowatts (kW); (5) an 8-foot-wide, 10-
foot-long intake structure on the west side of the dam connecting to a
6-foot-diameter, 62-foot-long steel penstock; (6) a powerhouse on the
west side of the dam containing a single turbine-generator unit with a
rated capacity of 300 kW; (7) two 40-foot-long, 480-volt generator
leads connecting the east powerhouse to a transformer yard and a 400-
foot-long, 2,300-volt generator lead connecting the west powerhouse to
the transformer yard; and (8) appurtenant facilities.
    The Chittenden Falls Project is operated in a run-of-river mode
with an estimated average annual generation of 2,300 megawatt-hours
between 2012 and 2018.
    o. A copy of the application is available for review at the
Commission in the Public Reference Room or may be viewed on the
Commission's website at http://www.ferc.gov using the ``eLibrary''
link. Enter the docket number excluding the last three digits in the
docket number field to access the document. For assistance, contact
FERC Online Support. A copy is also available for inspection and
reproduction at the address in item h above.
    You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    p. Procedural schedule and final amendments: The application will
be processed according to the following preliminary schedule. Revisions
to the schedule will be made as appropriate.

Issue Deficiency Letter (if necessary)--July 2019
Request Additional Information--July 2019
Issue Acceptance Letter--October 2019
Issue Scoping Document 1 for comments--November 2019
Request Additional Information (if necessary)--January 2020
Issue Scoping Document 2--February 2020
Issue notice of ready for environmental analysis--February 2020
Commission issues EA--August 2020
Comments on EA--September 2020

    Final amendments to the application must be filed with the
Commission no later than 30 days from the issuance date of the notice
of ready for environmental analysis.

    Dated: June 13, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-13825 Filed 6-27-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 165 (Thursday, August 25, 2011)]
[Notices]
[Pages 53121-53123]
[FR Doc No: 2011-21689]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC11-104-000.
    Applicants: FirstEnergy Solutions Corp., FirstEnergy Generation
Corp., Richland-Stryker Generation LLC.
    Description: Application of FirstEnergy Generation Corp., et al.
for Authorization Pursuant to Section 203 of the Federal Power Act and
Requests for Waivers of Filing Requirements, Confidential Treatment,
and Expedited Review.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5147.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG11-115-000.
    Applicants: Caney River Wind Project, LLC.
    Description: Self-Certification of EG of Caney River Wind Project,
LLC.
    Filed Date: 08/09/2011.
    Accession Number: 20110809-5060.
    Comment Date: 5 p.m. Eastern Time on Tuesday, August 30, 2011.

    Docket Numbers: EG11-116-000.
    Applicants: Mesquite Solar 1, LLC.
    Description: Mesquite Solar 1, LLC Notice of Self-Certification of
Exempt Wholesale Generator Status.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5114.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER10-1801-001.
    Applicants: The Connecticut Light and Power Company.
    Description: The Connecticut Light and Power Company submits tariff
filing per 35: Market Based Rate Triennial Compliance Order issued 7-
13-11 to be effective 7/13/2011.
    Filed Date: 08/09/2011.
    Accession Number: 20110809-5018.
    Comment Date: 5 p.m. Eastern Time on Tuesday, August 30, 2011.

    Docket Numbers: ER10-1811-001.
    Applicants: Select Energy, Inc.
    Description: Select Energy, Inc submits tariff filing per 35:
Market Based Rate Triennial Compliance Order issued 7-13-11 to be
effective 7/13/2011.
    Filed Date: 08/09/2011.
    Accession Number: 20110809-5019.
    Comment Date: 5 p.m. Eastern Time on Tuesday, August 30, 2011.

    Docket Numbers: ER10-2627-004.
    Applicants: FirstLight Hydro Generating Company.
    Description: FirstLight Hydro Generating Company submits tariff
filing per 35: Revised FL Hydro Tariff to be effective 9/16/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5155.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER10-2629-004.
    Applicants: FirstLight Power Resources Management, LLC.
    Description: FirstLight Power Resources Management, LLC submits
tariff filing per 35: FLPRM Revised Tariff to be effective 9/16/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5149.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER10-2636-004.
    Applicants: Mt. Tom Generating Company, LLC.
    Description: Mt. Tom Generating Company, LLC submits tariff filing
per 35: Mt Tom Revised Tariff to be effective 9/16/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5158.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-3572-001.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.
submits tariff filing per 35: 08-11-11 DAMAP Compliance to be effective
5/14/2011.
    Filed Date: 08/11/2011.
    Accession Number: 20110811-5064.
    Comment Date: 5 p.m. Eastern Time on Tuesday, August 23, 2011.

    Docket Numbers: ER11-3667-002.

    Applicants: Arizona Public Service Company.
    Description: Arizona Public Service Company submits tariff filing
per 35.17(b): Amendment filing to include an integrated Service
Agreement No. 193 to be effective 4/29/2011.
    Filed Date: 08/12/2011.
    Accession Number: 20110812-5191.
    Comment Date: 5 p.m. Eastern Time on Friday, September 2, 2011.

    Docket Numbers: ER11-3715-001.
    Applicants: Morris Cogeneration, LLC.
    Description: Morris Cogeneration, LLC submits tariff filing per 35:
Supplement to Notice of Change in Status Morris Cogeneration, LLC to be
effective 4/29/2011.
    Filed Date: 08/10/2011.
    Accession Number: 20110810-5172.
    Comment Date: 5 p.m. Eastern Time on Wednesday, August 31, 2011.

    Docket Numbers: ER11-3716-001.
    Applicants: Manchief Power Company LLC.
    Description: Manchief Power Company LLC submits tariff filing per
35: Supplement to Notice of Change in Status of Manchief Power Co. to
be effective 4/29/2011.
    Filed Date: 08/10/2011.
    Accession Number: 20110810-5163.
    Comment Date: 5 p.m. Eastern Time on Wednesday, August 31, 2011.

    Docket Numbers: ER11-3717-001.
    Applicants: Frederickson Power L.P.
    Description: Frederickson Power L.P. submits tariff filing per 35:
Supplement to Notice of Change in Status of Frederickson Power L.P. to
be effective 4/29/2011.
    Filed Date: 08/10/2011.
    Accession Number: 20110810-5166.
    Comment Date: 5 p.m. Eastern Time on Wednesday, August 31, 2011.

    Docket Numbers: ER11-3720-001.
    Applicants: CPI USA North Carolina LLC.
    Description: CPI USA North Carolina LLC submits tariff filing per
35: Supplement to Notice of Change in Status of CPI USA North Carolina
LLC to be effective 4/29/2011.
    Filed Date: 08/10/2011.
    Accession Number: 20110810-5170.
    Comment Date: 5 p.m. Eastern Time on Wednesday, August 31, 2011.

    Docket Numbers: ER11-3734-001.
    Applicants: CPI Energy Services (US) LLC.
    Description: CPI Energy Services (US) LLC submits tariff filing per
35: Supplement to Notice of Change in Status of CPI Energy Services
(US) LLC to be effective 4/29/2011.
    Filed Date: 08/10/2011.
    Accession Number: 20110810-5171.
    Comment Date: 5 p.m. Eastern Time on Wednesday, August 31, 2011.

    Docket Numbers: ER11-4037-001.
    Applicants: Interstate Gas Supply, Inc.
    Description: Interstate Gas Supply, Inc. submits tariff filing per
35.17(b): Amended Market Based Rate to be effective 8/12/2011.
    Filed Date: 08/11/2011.
    Accession Number: 20110811-5089.
    Comment Date: 5 p.m. Eastern Time on Thursday, September 1, 2011.

    Docket Numbers: ER11-4151-001.
    Applicants: California Independent System Operator Corporation.
    Description: California Independent System Operator Corporation
submits tariff filing per 35.17(b): 2011-08-09 CAISO Errata to NRS-RA
Amendment to be effective 1/1/2012.
    Filed Date: 08/09/2011.
    Accession Number: 20110809-5117.
    Comment Date: 5 p.m. Eastern Time on Tuesday, August 30, 2011.

    Docket Numbers: ER11-4173-001.
    Applicants: Michigan Electric Transmission Company, Midwest
Independent Transmission System Operator, Inc.
    Description: Michigan Electric Transmission Company, LLC submits
tariff filing per 35.17(b): G479b (Errata) (2) to be effective 8/1/
2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5145.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4311-000
    Applicants: PJM Interconnection, LLC.
    Description: PJM Interconnection, LLC submits tariff filing per
35.13(a)(2)(iii: Service Agreement No. 2985 among PJM, Exelon
Generation Co. and ComEd to be effective 7/15/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5127.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4312-000.
    Applicants: Gila River Energy Supply LLC.
    Description: Gila River Energy Supply LLC submits tariff filing per
35.15: Gila River Energy Supply-Cancellation of MBR Tariff to be
effective 8/16/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5130.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4313-000.
    Applicants: New York Independent System Operator, Inc.
    Description: New York Independent System Operator, Inc. submits
tariff filing per 35.13(a)(2)(iii: NYISO 205 filing re: Operational
Responsibilities to be effective 10/14/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5157.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4314-000.
    Applicants: Southern Electric Generating Company.
    Description: Southern Electric Generating Company submits tariff
filing per 35.1: SEGCO Power Contract Filing to be effective 1/1/2012.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5165.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4315-000.
    Applicants: Gila River Power, L.P.
    Description: Gila River Power, L.P. submits tariff filing per 35:
Gila River Power-Notice of Succession to MBR Rate Tariff to be
effective 8/16/2011.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5175.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Docket Numbers: ER11-4316-000.
    Applicants: Koch Supply & Trading, LP.
    Description: Notice of Tariff Cancellation Filed on Behalf of Koch
Supply & Trading, LP.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5207.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    Take notice that the Commission received the following open access
transmission tariff filings:

    Docket Numbers: OA11-10-000.
    Applicants: Mesquite Solar 1, LLC.
    Description: Application of Mesquite Solar 1, LLC for waivers of
FERC's Open Access Transmission Tariff, OASIS, and Standards of Conduct
requirements.
    Filed Date: 08/15/2011.
    Accession Number: 20110815-5133.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 6, 2011.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests,

service, and qualifying facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information,
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: August 16, 2011.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2011-21689 Filed 8-24-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Rules and Regulations]
[Pages 58586-58589]
[FR Doc No: 2015-24724]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2015-0309; Special Conditions No. 25-594-SC]

Special Conditions: Boeing Model 747-8, Dynamic Test Requirements
for Single-Occupant, Oblique (Side-Facing) Seats With Airbag Devices

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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SUMMARY: These special conditions are issued for Boeing Model 747-8
airplanes. This airplane will have novel or unusual design features
associated with oblique-angled, single-occupant seats equipped with
airbag systems. The applicable airworthiness regulations do not contain
adequate or appropriate safety standards for these design features.
These special conditions contain the additional safety standards the
Administrator considers necessary to establish a level of safety
equivalent to that established by the existing airworthiness standards.

DATES: The effective date of these special conditions is September 30,
2015. We must receive your comments by November 16, 2015.

ADDRESSES: Send comments identified by docket number FAA-2015-0309
using any of the following methods:
    Federal eRegulations Portal: Go to http://www.regulations.gov/ and
follow the online instructions for sending your comments
electronically.
    Mail: Send comments to Docket Operations, M-30, U.S. Department of
Transportation (DOT), 1200 New Jersey Avenue SE., Room W12-140, West
Building Ground Floor, Washington, DC, 20590-0001.
    Hand Delivery or Courier: Take comments to Docket Operations in
Room W12-140 of the West Building Ground Floor at 1200 New Jersey
Avenue SE., Washington, DC, between 9

a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov/.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: John Shelden, Airframe and Cabin
Safety, ANM-115, Transport Airplane Directorate, Aircraft Certification
Service, 1601 Lind Avenue SW., Renton, Washington 98057-3356; telephone
425-227-2785; facsimile<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA has determined that notice of, and
opportunity for, prior public comment on these special conditions are
impracticable because these procedures would significantly delay
issuance of the design approval and thus delivery of the affected
airplane.
    In addition, the substance of these special conditions has been
subject to the public-comment process in several prior instances with
no substantive comments received. The FAA therefore finds that good
cause exists for making these special conditions effective upon
issuance.

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On February 3, 2014, the Boeing Company applied for an amendment to
Type Certificate no. A20WE to allow installation of single-occupant,
oblique-angled (side-facing) seats with airbag devices in Boeing Model
747-8 airplanes.
    Boeing requested special conditions to allow installation of
oblique business-class passenger seats in the Boeing Model 747-8
airplane. The seating configuration Boeing proposes in Certification
Plan no. 15090, ``Installation of Business Class Zodiac Seats and
Furniture for 747-8 TRX RC076,'' consists of Zodiac Cirrus III model
side-facing, pod-style, business-class seats (with surrounding shells
and front-row furniture) installed at an angle of up to 30 degrees to
the airplane longitudinal centerline. These seats will include
inflatable restraint (airbag) systems for occupant restraint and injury
protection.
    The Model 747-8 airplane, a derivative of the Model 747-400
airplane, is a bi-level, wide-body airplane powered by four wing-
mounted General Electric GEnx-2B engines. The airplane will have a
maximum seating capacity of 605 passengers and two crew members, and a
maximum takeoff weight of 987,000 pounds.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.101, Boeing must show that the Model 747-8 airplane meets the
applicable provisions of the regulations listed in Type Certificate no.
A20WE, or the applicable regulations in effect on the date of
application for the change, except for earlier amendments as agreed
upon by the FAA. The regulations listed in the type certificate are
commonly referred to as the ``original type certification basis.'' The
regulations listed in Type Certificate no. A20WE are as follows:
    14 CFR part 25, Amendments 25-1 through 25-120, with exceptions
permitted by Sec.  21.101. In addition, the certification basis
includes certain special conditions, exemptions, or later amended
sections of the applicable part that are not relevant to these special
conditions.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for Boeing Model 747-8 airplanes because
of a novel or unusual design feature, special conditions are prescribed
under Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same novel or
unusual design feature, or should any other model already included on
the same type certificate be modified to incorporate the same novel or
unusual design feature, these special conditions would also apply to
the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Boeing Model 747-8 airplane must comply with the fuel-
vent and exhaust-emission requirements of 14 CFR part 34, and the
noise-certification requirements of 14 CFR part 36.
    The FAA issues special conditions as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.101.

Novel or Unusual Design Features

    The business-class seating configuration Boeing proposes is novel
or unusual due to the seat installation at 30 degrees to the airplane
centerline, the airbag-system installation, and the seat/occupant
interface with the surrounding furniture that introduces occupant
alignment and loading concerns. The proposed business-class seating
configuration also is beyond the limits of current acceptable
equivalent-level-of-safety findings.
    Ongoing research is progressing to establish acceptable limits.
Until those limits become available, the FAA proposes a set of interim
limits based on the current literature available, current National
Highway Traffic Safety Administration (NHTSA) regulations, and
preliminary test data from the research program.
    The existing regulations do not provide adequate or appropriate
safety standards for occupants of oblique-angled seats with airbag
systems. To provide a level of safety that is equivalent to that
afforded occupants of forward- and aft-facing seats, additional
airworthiness standards, in the form of special conditions, are
necessary. These special conditions supplement part 25 and, more
specifically, supplement Sec. Sec.  25.562 and 25.785. The requirements
contained in these special conditions consist of both test conditions
and injury pass/fail criteria.

Discussion

    Amendment 25-15 to part 25, dated October 24, 1967, introduced the
subject of side-facing seats, and a requirement that each occupant in a
side-facing seat must be protected from head injury by a safety belt
and a cushioned rest that will support the arms, shoulders, head, and
spine.
    Subsequently, Amendment 25-20, dated April 23, 1969, clarified the
definition of side-facing seats to require that each occupant of a
seat, positioned at more than an 18-degree angle to the vertical plane
of the airplane longitudinal centerline, must be protected from head
injury by a safety belt and an energy-absorbing rest that will support
the arms, shoulders, head, and spine; or by a safety belt and shoulder
harness that will prevent the head from contacting any injurious
object. The FAA concluded that an 18-degree angle would provide an
adequate level of safety based on tests that were performed at that
time, and thus adopted that standard.
    Part 25 was amended June 16, 1988, by Amendment 25-64, to revise
the emergency-landing conditions that must be considered in the design
of the airplane. Amendment 25-64 revised the static-load conditions in
14 CFR 25.561, and added the new Sec.  25.562 that requires dynamic
testing for all seats approved for occupancy during takeoff and
landing. The intent of Amendment 25-64 is to provide an improved level
of safety for occupants on transport-category airplanes. Because most
seating is forward-facing on transport-category airplanes, the pass/
fail criteria developed in Amendment 25-64 focused primarily on these
seats. As a result, the FAA issued Policy Memorandums ANM-03-115-30 and
PS-ANM-100-2000-00123 to provide the additional guidance necessary to
demonstrate the level of safety required by the regulations for side-
facing seats.
    To reflect current research findings, the FAA developed a
methodology to address all fully side-facing seats (i.e., seats
positioned in the airplane with the occupant facing 90 degrees to the
vertical plane of the airplane centerline), and has documented those
requirements in a set of new special conditions. The FAA issued Policy
Statement PS-ANM-25-03-R1 to define revised injury criteria associated
with neck and leg injuries.
    The proposed Model 747-8, a Transaero Airlines business-class seat
installation, is novel such that the current Model 747-8 airplane
certification basis does not adequately address protection of the
occupant's neck and spine for seat configurations that are positioned
at an angle greater than 18 degrees from the airplane centerline.
Therefore, The Boeing Company's proposed configuration will require new
special conditions.
    These special conditions will provide head injury criteria, neck
injury criteria, spine injury criteria, and body-to-wall contact
criteria. They contain the additional safety standards that the
Administrator considers necessary to establish a level of safety
equivalent to that established by the existing airworthiness standards.

Applicability

    These special conditions are applicable to the Boeing Model 747-8
airplanes configured with the business-class seating defined in Boeing
Certification Plan. Should Boeing apply at a later date for a change to
the type certificates to include another model incorporating the same
novel or unusual design feature, or should any other model already
included on the same type certificate be modified to incorporate the
same novel or unusual design feature, these special conditions would
apply to the other model as well.

Conclusion

    This action affects only certain novel or unusual design features
on one model airplane. It is not a rule of general applicability.
    The substance of these special conditions has been subjected to the
notice and comment period in several prior instances and has been
derived without substantive change from those previously issued. It is
unlikely that prior public comment would result in a significant change
from the substance contained herein. Therefore, because a delay would
significantly affect the certification of the airplane, which is
imminent, the FAA has determined that prior public notice and comment
are unnecessary and impracticable, and good cause exists for adopting
these special conditions upon publication in the Federal Register. The
FAA is requesting comments to allow interested persons to submit views
that may not have been submitted in response to the prior opportunities
for comment described above.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for the Boeing Model 747-8 airplane.

Side-Facing Seats Special Conditions

    In addition to the requirements of Sec.  25.562:
    1. Head Injury Criteria.
    Compliance with Sec.  25.562(c)(5) is required, except that, if the
anthropomorphic test device (ATD) has no apparent contact with the
seat/structure but has contact with an airbag, a head-injury criterion
(HIC) unlimited score in excess of 1000 is acceptable, provided the
HIC15 score (calculated in accordance with 49 CFR 571.208) for that
contact is less than 700.
    2. Body-to-Wall/Furnishing Contact.
    If a seat is installed aft of structure (e.g., an interior wall or
furnishing) that does not provide a homogenous contact surface for the
expected range of occupants and yaw angles, then additional analysis
and/or test(s) may be required to demonstrate that the injury criteria
are met for the area that an occupant could contact. For example, if
different yaw angles could result in different airbag performance, then
additional analysis or separate test(s) may be necessary to evaluate
performance.
    3. Neck Injury Criteria.
    The seating system must protect the occupant from experiencing
serious neck injury. The assessment of neck injury must be conducted
with the airbag device activated, unless there is reason to also
consider that the neck-injury potential would be higher for impacts
below the airbag-device deployment threshold.
    a. The Nij (calculated in accordance with 49 CFR
571.208) must be below 1.0, where Nij =Fz/
Fzc + My/Myc, and Nij
critical values are:

i. Fzc = 1530 lb for tension
ii. Fzc = 1385 lb for compression
iii. Myc = 229 lb-ft in flexion
iv. Myc = 100 lb-ft in extension

    b. In addition, peak Fz must be below 937 lb in tension
and 899 lb in compression.
    c. Rotation of the head about its vertical axis, relative to the
torso, is limited to 105 degrees in either direction from forward-
facing.
    d. The neck must not impact any surface that would produce
concentrated loading on the neck.
    4. Spine and Torso Injury Criteria
    a. The shoulders must remain aligned with the hips throughout the
impact

sequence, or support for the upper torso must be provided to prevent
forward or lateral flailing beyond 45 degrees from the vertical during
significant spinal loading. Alternatively, the lumbar spine tension
(Fz) cannot exceed 1200 lb.
    b. Significant concentrated loading on the occupant's spine, in the
area between the pelvis and shoulders during impact, including rebound,
is not acceptable. During this type of contact, the interval for any
rearward (X-direction) acceleration exceeding 20g must be less than 3
milliseconds as measured by the thoracic instrumentation specified in
49 CFR part 572, subpart E, filtered in accordance with SAE
International (SAE) J211-1.
    c. Occupant must not interact with the armrest or other seat
components in any manner significantly different than would be expected
for a forward-facing seat installation.
    5. Longitudinal test(s), conducted to measure the injury criteria
above, must be performed with the FAA Hybrid III ATD, as described in
SAE 1999-01-1609. The test(s) must be conducted with an undeformed
floor, at the most-critical yaw case(s) for injury, and with all
lateral structural supports (armrests/walls) installed.

    Note: Boeing must demonstrate that the installation of seats via
plinths or pallets meets all applicable requirements. Compliance
with the guidance contained in FAA Policy Memorandum PS-ANM-100-
2000-00123, dated February 2, 2000, titled ``Guidance for
Demonstrating Compliance with Seat Dynamic Testing for Plinths and
Pallets,'' is acceptable to the FAA.

Inflatable Airbag Systems Special Conditions

    If inflatable airbag systems are installed on single-place side-
facing seats, the airbag systems must meet Special Conditions no. 25-
589-SC.

    Issued in Renton, Washington, on September 1, 2015.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-24724 Filed 9-29-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 246 (Monday, December 23, 2013)]
[Notices]
[Pages 77525-77526]
[FR Doc No: 2013-30441]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71090; File No. SR-OCC-2013-22]

Self-Regulatory Organizations; Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Make a Non-Material
Housekeeping Rule Change So That OCC's Membership Qualifications
Accurately Reflect Current Operational Practices

December 17, 2013.
    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 December 6, 2013, The Options Clearing Corporation (``OCC'')
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 OCC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The purpose of this proposed rule change is to make a non-material
``housekeeping'' change to OCC's membership standards so that such
standards better reflect current operational practices.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A),
(B) and (C) below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

(i) Purpose
    The purpose of this proposed rule change is to make a non-material
``housekeeping'' change to OCC's membership standards so that such
standards better reflect current operational practices. Prior to
electronic trading, clearing members were required to have the
operational capacity to manually compare trades and reconcile
unconfirmed and advisory trades, in accordance with applicable exchange
rules and procedures, on a timely and efficient basis so that financial
markets, and specifically clearing operations, functioned in a prompt
and accurate manner. Accordingly, Article V, Section 1, Interpretations
and Policies .02(b) of OCC's By-Laws required clearing member
applicants to have such operational capacity as a condition to
admission as a clearing member. However, due to industry-wide
implementation of electronic systems and processes, manual trade
comparison and reconciliation by clearing members no longer occurs.
Accordingly, OCC's membership requirement mandating that clearing
members have the capacity to manually compare and reconcile trades is
no longer required. Also, OCC only receives matched trades from
exchanges and exchange rules and procedures regarding manual trade
comparison and reconciliation are obsolete. Therefore, OCC proposes to
remove its membership requirement concerning a clearing members'
operational capacity to manually compare trades and reconcile
unconfirmed and advisory trades on a timely and efficient basis as it
is no longer applicable.
(ii) Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \3\ because it helps foster cooperation
and coordination with persons engaged in the clearance and settlement
of securities transactions as well as removes impediments to and
perfects the mechanism of a national system for the prompt and accurate

clearance and settlement of securities transactions. The proposed
change will update OCC's By-Laws to better reflect the current
operational and technological environment of OCC and its clearing
members by removing a legacy membership requirement. The proposed rule
change is not inconsistent with any rules of OCC, including those
proposed to be amended.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impact, or
impose a burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.\4\ The proposed change, which
will apply to all clearing members, is housekeeping in nature and will
better align OCC's membership requirements with both its own as well as
its clearing members' current operational practices. Accordingly, the
proposed change will reduce unnecessary administrative burdens on its
clearing members, including any such burdens that may impact
competition.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

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_ADDRESS>Please include File
Number SR-OCC-2013-22 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington DC 20549-1090.

All submissions should refer to File Number SR-OCC-2013-22. 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 of submission. The Commission will post all
comments on the Commission's Internet Web site (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 Web site
viewing and printing in the Commission's Public Reference Room Section
located at 100 F Street, NE., Washington DC 20549-1090 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of OCC and on OCC's Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_2013_22.pdf.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OCC-2013-22
and should be submitted on or before January 13, 2014.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30441 Filed 12-20-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 82 (Friday, April 27, 2018)]
[Notices]
[Pages 18612-18614]
[FR Doc No: 2018-08851]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83093; File No. SR-CBOE-2018-031]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Concerning
the VIX Large Trade Discount Program

April 23, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 16, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the VIX Large Trade Discount
program. The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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 Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule. Specifically, the
Exchange proposes to amend its VIX Large Trade Discount Program. By way
of background the Exchange provides a discount in the form of a cap on
transaction fees for Market-Maker, Broker-Dealer, Non-Trading Permit
Holder Market-Maker, Professional/Voluntary Professional and Joint
Back-Office (i.e., ``M'', ``B'', ``N'', ``W'' and ``J'' origin codes)
executions in VIX (the '' VIX Large Trade Discount''). Particularly,
regular transaction fees are currently only charged for up to 250,000
VIX options contracts per order for Market-Makers, Broker-Dealers, Non-
Trading Permit Holder Market-Makers, Professional/Voluntary
Professionals and Joint Back-Offices.\3\ The Exchange proposes to amend
the VIX Large Trade Discount Program to provide that regular
transaction fees will only be charged for up to 175,000 VIX options
contracts per order. The Exchange believes the proposed amendment will
incentivize the sending of large VIX orders. The greater liquidity and
trading volume that the proposed amended cap encourages would benefit
all market participants trading VIX options.
---------------------------------------------------------------------------

    \3\ The discount applies to transaction fees only. Other fees,
such as the Index License Surcharge, are not discounted.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
also believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\6\ which provides that Exchange rules may provide
for the equitable allocation of reasonable dues, fees, and other
charges among its Trading Permit Holders.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that lowering the VIX Large Trade Discount
cap is reasonable because Market-Makers, Broker-Dealers, Non-Trading
Permit Holder Market-Makers, Professional/Voluntary Professionals and
Joint Back-Offices participants (i.e., non-Customer, non-Firm market
participants) will receive a further discount for very large trades
that they would not otherwise receive, which promotes and encourages
larger VIX executions on the Exchange. This change is equitable and not
unfairly discriminatory because the amendment will apply to all non-
Customer, non-Firm market participants whose large trades qualify for
the discount in VIX. The Exchange notes that other VIX trading
incentive programs already exist for Customer and Firm market
participants.\7\
---------------------------------------------------------------------------

    \7\ See Cboe Options Fees Schedule, Customer Large Trade
Discount program and the Cboe Options Clearing Trading Permit Holder
Proprietary Products Sliding Scale.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act because, while the cap does
not apply to Customers and Firms, other incentive programs already
exist for those market participants with respect to VIX trading.\8\
Additionally, the proposed change is designed to encourage increased
VIX options volume, which provides greater trading opportunities for
all market participants. The Exchange believes that the proposed rule
change will not cause an unnecessary burden on intermarket competition
because VIX is only traded on Cboe Options. To the extent that the
proposed changes make Cboe Options a more attractive marketplace for
market participants at other exchanges, such market participants are
welcome to become Cboe Options market participants.
---------------------------------------------------------------------------

    \8\ Id.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

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) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\
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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CBOE-2018-031 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2018-031. 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 the Exchange. 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-CBOE-2018-031 and should be submitted on
or before May 18, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08851 Filed 4-26-18; 8:45 am]
BILLING CODE 8011-01-P


Addendum No. 1 to MRID # 433046 01 DER Study Title: Huhtanen, K. L. 1994. An aerobic soil metabolism study with S 23031. Guideline Number: 162 1 Reasons for changes:

Upgrade of status from ( Upgradable, Unacceptable) to Acceptable. Specify why  Recalculation of t 1/ 2 values. Specify why

Recalculation of Koc values. Specify why

Identification of degradates

Others Half life was recalculated to include the degradate IMCA, or flumiclorac acid, along with the parent, flumiclorac pentyl, for use in the Drinking Water Assessment. Calculation was on the basis of applied radiation (% AR), and was done with SigmaPlot, using 2 parameter, single first order ( SFO/ 2) procedure. This study was for test compound labeled in the tetrahydrophthalic acid ring.

Results Procedure Half life or DT50 3* half life or DT90 Intercept p value, R2 Empirical 4 to 7 days 85 to 168 days 98.2 % AR

SFO/ 2 7.3 days 21.8 days 91.9 % AR < 0.0001, 0.926 Revised by : ____________________________ Date: ____________

Secondary reviewed by: ___________________ Date: ___________

 August 2000   MRID 43304601 aerobic soil metabolism of flumiclorac pentyl ( THP label)

day parent IMCA sum 0 98.2 0 98.2 0 98.2 0 98.2 0.0833 70.2 26.6 96.8 0.0833 68.8 27 95.8 0.1667 47.7 42.6 90.3 0.1667 53.1 38.9 92 0.25 40.8 52 92.8 0.25 33.8 59.7 93.5 0.5 46.2 38.9 85.1 0.5 47.8 38.4 86.2 1 43.8 40 83.8 1 41.8 42.9 84.7 2 35.2 33.4 68.6 2 38.1 37.6 75.7 4 25.1 30.9 56 4 9.6 26.1 35.7 7 18.7 25.9 44.6 7 19.8 22.7 42.5 14 8.6 15.7 24.3 14 8.5 18.1 26.6 21 10.6 11.8 22.4 21 15.4 10.9 26.3 28 9.6 8.3 17.9 28 9.3 8 17.3 56 12.2 5 17.2 56 14.9 4.6 19.5 85 10.1 2.9 13 85 9.1 1.9 11 168 6.4 1.4 7.8 168 1.6 1.4 3 parent + IMCA by SFO/ 2 ( THP label)

days 0 50 100 150 0 20 40 60 80 100 120 x column 1 vs y column 1 MRID 43304601 aerobic soil metabolism of flumiclorac pentyl ( phenyl label) vs Col 4 Nonlinear Regression [ Variables] x = col( 1) y = col( 4) reciprocal_ y= 1/ abs( y) reciprocal_ ysquare= 1/ y^ 2 ' Automatic Initial Parameter Estimate Functions xnear0( q)= max( abs( q)) abs( q) yatxnear0( q, r)= xatymax( q, xnear0( r)) [ Parameters] a = yatxnear0( y, x) '' Auto {{ previous: 91.9646}} b =  ln(. 5)/( x50( x, y) min( x)) '' Auto {{ previous: 0.0953551}} [ Equation] f= a* exp( b* x) fit f to y '' fit f to y with weight reciprocal_ y '' fit f to y with weight reciprocal_ ysquare [ Constraints] b> 0 [ Options] tolerance= 0.0001 stepsize= 100 iterations= 100 R = 0.96267851 Rsqr = 0.92674992 Adj Rsqr = 0.92413384 Standard Error of Estimate = 9.6028 Coefficient Std. Error t P a 91.9646 2.8331 32.4610 < 0.0001 b 0.0954 0.0117 8.1266 < 0.0001 Analysis of Variance: DF SS MS F P Regression 1 32667.0621 32667.0621 354.2521 < 0.0001 Residual 28 2581.9965 92.2142 Total 29 35249.0587 1215.4848 PRESS = 2857.7685 Durbin Watson Statistic = 0.5722 Normality Test: Passed ( P = 0.3162)

Constant Variance Test: Failed ( P = 0.0092)

Power of performed test with alpha = 0.0500: 1.0000 Regression Diagnostics: Row Predicted Residual Std. Res. Stud. Res. Stud. Del. Res. 3 91.9646 6.2354 0.6493 0.6796 0.6729 4 91.9646 6.2354 0.6493 0.6796 0.6729 5 91.2370 5.5630 0.5793 0.6051 0.5981 6 91.2370 4.5630 0.4752 0.4963 0.4895 7 90.5143  0.2143  0.0223  0.0233  0.0228 8 90.5143 1.4857 0.1547 0.1613 0.1585 9 89.7982 3.0018 0.3126 0.3253 0.3201 10 89.7982 3.7018 0.3855 0.4012 0.3951 11 87.6829  2.5829  0.2690  0.2787  0.2741 12 87.6829  1.4829  0.1544  0.1600  0.1572 13 83.6004 0.1996 0.0208 0.0214 0.0210 14 83.6004 1.0996 0.1145 0.1180 0.1159 15 75.9970  7.3970  0.7703  0.7919  0.7865 16 75.9970  0.2970  0.0309  0.0318  0.0312 17 62.8018  6.8018  0.7083  0.7384  0.7323 18 62.8018  27.1018  2.8223  2.9423  3.4762 19 47.1775  2.5775  0.2684  0.2879  0.2832 20 47.1775  4.6775  0.4871  0.5226  0.5157 21 24.2019 0.0981 0.0102 0.0111 0.0109 22 24.2019 2.3981 0.2497 0.2704 0.2659 23 12.4155 9.9845 1.0397 1.0901 1.0939 24 12.4155 13.8845 1.4459 1.5159 1.5537 25 6.3691 11.5309 1.2008 1.2274 1.2391 26 6.3691 10.9309 1.1383 1.1636 1.1713 27 0.4411 16.7589 1.7452 1.7459 1.8162 28 0.4411 19.0589 1.9847 1.9855 2.1035 29 0.0278 12.9722 1.3509 1.3509 1.3720 30 0.0278 10.9722 1.1426 1.1426 1.1491 31 0.0000 7.8000 0.8123 0.8123 0.8072 32 0.0000 3.0000 0.3124 0.3124 0.3073 Influence Diagnostics: Row Cook'sDist Leverage DFFITS 3 0.0220 0.0870 0.2078 4 0.0220 0.0870 0.2078 5 0.0166 0.0833 0.1803 6 0.0112 0.0833 0.1476 7 0.0000 0.0799  0.0067 8 0.0011 0.0799 0.0467 9 0.0044 0.0767 0.0923 10 0.0067 0.0767 0.1139 11 0.0029 0.0686  0.0744 12 0.0009 0.0686  0.0427 13 0.0000 0.0581 0.0052 14 0.0004 0.0581 0.0288 15 0.0178 0.0538  0.1876 16 0.0000 0.0538  0.0074 17 0.0237 0.0799  0.2158 18 0.3760 0.0799  1.0246 19 0.0063 0.1311  0.1100 20 0.0206 0.1311  0.2003 21 0.0000 0.1474 0.0045 22 0.0063 0.1474 0.1105 23 0.0590 0.0903 0.3446 24 0.1140 0.0903 0.4895 25 0.0338 0.0429 0.2625 26 0.0304 0.0429 0.2481 27 0.0013 0.0008 0.0525 28 0.0016 0.0008 0.0608 29 0.0000 0.0000 0.0038 30 0.0000 0.0000 0.0032 31 0.0000 0.0000 0.0000 32 0.0000 0.0000 0.0000 95% Confidence: Row Predicted Regr. 5% Regr. 95% Pop. 5% Pop. 95% 3 91.9646 86.1613 97.7679 71.4559 112.4733 4 91.9646 86.1613 97.7679 71.4559 112.4733 5 91.2370 85.5583 96.9158 70.7632 111.7108 6 91.2370 85.5583 96.9158 70.7632 111.7108 7 90.5143 84.9538 96.0749 70.0730 110.9557 8 90.5143 84.9538 96.0749 70.0730 110.9557 9 89.7982 84.3493 95.2472 69.3870 110.2095 10 89.7982 84.3493 95.2472 69.3870 110.2095 11 87.6829 82.5294 92.8363 67.3485 108.0172 12 87.6829 82.5294 92.8363 67.3485 108.0172 13 83.6004 78.8594 88.3415 63.3667 103.8342 14 83.6004 78.8594 88.3415 63.3667 103.8342 15 75.9970 71.4334 80.5606 55.8041 96.1899 16 75.9970 71.4334 80.5606 55.8041 96.1899 17 62.8018 57.2407 68.3629 42.3603 83.2433 18 62.8018 57.2407 68.3629 42.3603 83.2433 19 47.1775 40.0559 54.2991 26.2576 68.0975 20 47.1775 40.0559 54.2991 26.2576 68.0975 21 24.2019 16.6511 31.7527 3.1320 45.2719 22 24.2019 16.6511 31.7527 3.1320 45.2719 23 12.4155 6.5053 18.3257  8.1237 32.9547 24 12.4155 6.5053 18.3257  8.1237 32.9547 25 6.3691 2.2929 10.4453  13.7193 26.4575 26 6.3691 2.2929 10.4453  13.7193 26.4575 27 0.4411  0.1270 1.0092  19.2376 20.1198 28 0.4411  0.1270 1.0092  19.2376 20.1198 29 0.0278  0.0262 0.0817  19.6428 19.6983 30 0.0278  0.0262 0.0817  19.6428 19.6983 31 0.0000  0.0000 0.0000  19.6705 19.6705 32 0.0000  0.0000 0.0000  19.6705 19.6705


[Federal Register: July 22, 2009 (Volume 74, Number 139)]
[Notices]
[Page 36277-36281]
[DOCID:fr22jy09-120]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28819; File No. 812-13578]

The Alger Funds, et al.; Notice of Application

 July 16, 2009.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order pursuant to (a) section
6(c) of the Investment Company Act of 1940 (``Act'') granting an
exemption from sections 18(f) and 21(b) of the Act; (b) section
12(d)(1)(J) of the Act granting an exemption from section 12(d)(1) of
the Act; (c) sections 6(c) and 17(b) of the Act granting an exemption
from sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d)
section 17(d) of the Act and rule 17d-1 under the Act to permit certain
joint arrangements.

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Summary of the Application: Applicants request an order that would
permit certain registered open-end management investment companies to
participate in a joint lending and borrowing facility.
    Applicants: The Alger Funds, The Alger American Fund, The Alger
Institutional Funds, The Alger Funds II (formerly, The Spectra Funds),
and Alger China-U.S. Growth Fund (formerly, The China-U.S. Growth Fund)
(each, a ``Trust'' and collectively, the ``Trusts''), and Fred Alger
Management, Inc. (``FAM'').
    Filing Dates: The application was filed on September 25, 2008 and
amended on March 12, 2009, June 24, 2009 and July 14, 2009.
    Hearing or Notification of Hearing: An order granting the
application will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on August 10, 2009, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC, 20549-1090. Applicants, 111 Fifth Avenue,
New York, New York 10003.

FOR FURTHER INFORMATION CONTACT: Jill Ehrlich, Attorney Adviser, at
(202) 551-6819 or Mary Kay Frech, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. Each Trust is organized as a Massachusetts business trust and is
registered under the Act as an open-end management investment company.
Each Trust consists of one or more series (``Funds''). FAM, a New York
corporation and an indirect wholly-owned subsidiary of Alger
Associates, Inc., is registered as an investment adviser under the
Investment Advisers Act of 1940 and serves as the investment adviser
and administrator of each Fund.\1\
---------------------------------------------------------------------------

    \1\ Applicants request that the relief also apply to any other
registered management investment company that currently, or in the
future, is part of the same ``group of investment companies'' as the
Trusts, as defined in section 12(d)(1)(G)(ii) of the Act (included
in the term ``Trusts''). All entities that currently intend to rely
on the requested order have been named as applicants. Any other
entity that relies on the requested order in the future will comply
with the terms and conditions set forth in the application.
---------------------------------------------------------------------------

    2. Some Funds may make short-term loans to banks or other entities
by purchasing bank time deposits. Other Funds may need to borrow money
from the same or similar banks for temporary purposes to satisfy
redemption requests, to cover unanticipated cash shortfalls such as a
trade ``fail'' in which cash payment for a security sold by a Fund has
been delayed, or for other temporary purposes. Currently, certain Funds
have access to uncommitted bank loans from their custodian bank for
temporary borrowing purposes.
    3. If Funds borrow from their custodian, they pay interest on the
loan at a rate that is significantly higher than the rate that is
earned by other (non-borrowing) Funds on investments in bank time
deposits. Applicants assert that this differential represents the
profit earned by the lender on loans and is not attributable to any
material difference in the credit quality or risk of such transactions.
In addition, while bank borrowings generally could supply needed cash
to cover unanticipated redemptions and sales fails, the borrowing Funds
would incur commitment fees and/or other charges involved in obtaining
a bank loan.
    4. The Trusts seek to enter into master interfund lending
agreements (``Interfund Lending Agreements'') with each other on behalf
of the Funds that would permit each Fund to lend money directly to and
borrow directly from other Funds through a credit facility for
temporary purposes (an ``Interfund Loan''). Applicants believe that the
proposed credit facility would both substantially reduce the Funds'
potential borrowing costs and enhance the ability of the lending Funds
to earn higher rates of interest on their short-term lendings. Although
the proposed credit facility would substantially reduce the Funds' need
to borrow from banks, the Funds would be free to establish and maintain
committed lines of credit or other borrowing arrangements with
unaffiliated banks. Alger Money Market Fund, a series of The Alger
Funds, will not participate as a borrower in the proposed credit
facility. Additionally, a number of Funds are barred by their
fundamental policies from participating as lenders in the proposed
credit facility.\2\
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    \2\ Each of Alger LargeCap Growth Fund, Alger SmallCap Growth
Institutional Fund, Alger MidCap Growth Institutional Fund, Alger
LargeCap Growth Institutional Fund and Alger Capital Appreciation
Institutional Fund is prohibited from ``making loans to others,
except through purchasing qualified debt obligations, lending
portfolio securities or entering into repurchase agreements.''
---------------------------------------------------------------------------

    5. Applicants anticipate that the proposed credit facility would
provide a borrowing Fund with significant savings at times when the
cash position of the borrowing Fund is insufficient to meet temporary
cash requirements. This situation could arise when shareholder
redemptions exceed anticipated volumes and certain Funds have
insufficient cash on hand to satisfy such redemptions. When the Funds
liquidate portfolio securities to meet redemption requests, they often
do not receive payment in settlement for up to three days (or longer
for certain foreign transactions). However, redemption

requests normally are effected immediately. The proposed credit
facility would provide a source of immediate, short-term liquidity
pending settlement of the sale of portfolio securities.
    6. Applicants also propose that a Fund could use the proposed
credit facility when a sale of securities ``fails'' due to
circumstances beyond the Fund's control, such as a delay in the
delivery of cash to the Fund's custodian or improper delivery
instructions by the broker effecting the transaction. ``Sales fails''
may present a cash shortfall if the Fund has undertaken to purchase a
security using the proceeds from securities sold. Alternatively, the
Fund could ``fail'' on its intended purchase due to lack of funds from
the previous sale, resulting in additional cost to the Fund, or sell a
security on a same-day settlement basis, earning a lower return on the
investment. Use of the proposed credit facility under these
circumstances would enable the Fund to have access to immediate short-
term liquidity without the Fund incurring custodian overdraft or other
charges.
    7. While bank borrowings generally could supply needed cash to
cover unanticipated redemptions and sales fails, under the proposed
credit facility, a borrowing Fund would pay lower interest rates than
those that would be payable under short-term loans offered by banks. In
addition, Funds making short-term cash loans directly to other Funds
would earn interest at a rate higher than they otherwise could obtain
from investing their cash in overnight bank time deposits. Thus,
applicants believe that the proposed credit facility would benefit both
borrowing and lending Funds.
    8. The interest rate to be charged to the Funds on any Interfund
Loan (the ``Interfund Loan Rate'') would be the average of the ``Time
Deposit Rate'' and the ``Bank Loan Rate,'' both as defined below. The
Time Deposit Rate for any day would be the highest or best (after
giving effect to factors such as the credit quality of the issuer) rate
available to a lending Fund from investment in overnight bank time
deposits. The Bank Loan Rate for any day would be calculated by FAM
each day an Interfund Loan is made according to a formula established
by each Trust's board of trustees (the ``Trustees'') intended to
approximate the lowest interest rate at which bank short-term loans
would be available to the Funds. The formula would be based upon a
publicly available rate (e.g., federal funds plus 50 basis points) and
would vary with this rate so as to reflect changing bank loan rates. In
addition, each Trust's Trustees would periodically review the
continuing appropriateness of using the formula to determine the Bank
Loan Rate, as well as the relationship between the Bank Loan Rate and
current bank loan rates that would be available to the Funds. The
initial formula and any subsequent modifications to the formula would
be subject to the approval of each Trust's Trustees.
    9. The proposed credit facility would be administered by FAM's fund
administration department and a compliance professional within FAM
(collectively, the ``Credit Facility Team''). No portfolio manager of
any Fund will serve as a member of the Credit Facility Team. Under the
proposed credit facility, the portfolio managers for each participating
Fund could provide standing instructions to participate daily as a
borrower or lender. The Credit Facility Team on each business day would
collect data on the uninvested cash and borrowing requirements of all
participating Funds. Once it had determined the aggregate amount of
cash available for loans and borrowing demand, the Credit Facility Team
would allocate loans among borrowing Funds without any further
communication from the portfolio managers of the Funds. Applicants
anticipate that there typically will be far more available uninvested
cash each day than borrowing demand. Therefore, after the Credit
Facility Team has allocated cash for Interfund Loans, the Credit
Facility Team will invest any remaining cash in accordance with the
standing instructions of the portfolio managers or such remaining
amounts will be invested directly by the portfolio managers of the
Funds.
    10. The Credit Facility Team would allocate borrowing demand and
cash available for lending among the Funds on what the Credit Facility
Team believes to be an equitable basis, subject to certain
administrative procedures applicable to all Funds, such as the time of
filing requests to participate, minimum loan lot sizes, and the need to
minimize the number of transactions and associated administrative
costs. To reduce transaction costs, each loan normally would be
allocated in a manner intended to minimize the number of participants
necessary to complete the loan transaction. The method of allocation
and related administrative procedures would be approved by each Trust's
Trustees, including a majority of Trustees who are not ``interested
persons'' of the Trust, as that term is defined in section 2(a)(19) of
the Act (``Independent Trustees''), to ensure that both borrowing and
lending Funds participate on an equitable basis.
    11. FAM would: (a) Monitor the Interfund Loan Rate and the other
terms and conditions of the loans; (b) limit the borrowings and loans
entered into by each Fund to ensure that they comply with the Fund's
investment policies and limitations; (c) ensure equitable treatment of
each Fund; and (d) make quarterly reports to the Trustees concerning
any transactions by the Funds under the proposed credit facility and
the Interfund Loan Rate charged.
    12. FAM, through the Credit Facility Team, would administer the
proposed credit facility as a disinterested fiduciary as part of its
duties under the relevant management, advisory or administrative
contract with each Fund and would receive no additional fee as
compensation for its services in connection with the administration of
the proposed credit facility. FAM may collect standard pricing, record
keeping, bookkeeping and accounting fees associated with the transfer
of cash and/or securities in connection with bank time deposit and
lending transactions generally, including transactions effected through
the proposed credit facility. Such fees would be no higher than those
applicable for comparable bank loan transactions.
    13. No Fund may participate in the proposed credit facility unless:
(a) the Fund has obtained shareholder approval for its participation,
if such approval is required by law; (b) the Fund has fully disclosed
all material information concerning the credit facility in its
prospectus and/or statement of additional information; and (c) the
Fund's participation in the credit facility is consistent with its
investment objectives, limitations and organizational documents.
    14. In connection with the credit facility, applicants request an
order under section 6(c) of the Act exempting them, to the extent
described herein, from the provisions of sections 18(f) and 21(b) of
the Act; under section 12(d)(1)(J) of the Act exempting them from
section 12(d)(1) of the Act; under sections 6(c) and 17(b) of the Act
exempting them from sections 17(a)(1), 17(a)(2), and 17(a)(3) of the
Act; and under section 17(d) of the Act and rule 17d-1 under the Act,
to permit certain joint arrangements and to allow them to participate
in the proposed credit facility.

Applicants' Legal Analysis

    1. Section 17(a)(3) of the Act generally prohibits any affiliated
person, or affiliated person of an affiliated person, from borrowing
money or other property

from a registered investment company. Section 21(b) of the Act
generally prohibits any registered management company from lending
money or other property to any person, directly or indirectly, if that
person controls or is under common control with that company. Section
2(a)(3)(C) of the Act defines an ``affiliated person'' of another
person, in part, to be any person directly or indirectly controlling,
controlled by, or under common control with, such other person.
Applicants state that the Funds may be under common control by virtue
of having FAM as their common investment adviser and/or by having
common Trustees and officers.
    2. Section 6(c) of the Act provides that an exemptive order may be
granted where an exemption is necessary or appropriate in the public
interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from section 17(a) provided that the terms of the
transaction, including the consideration to be paid or received, are
fair and reasonable and do not involve overreaching on the part of any
person concerned, and the transaction is consistent with the policy of
the investment company as recited in its registration statement and
with the general purposes of the Act. Applicants believe that the
proposed arrangements satisfy these standards for the reasons discussed
below.
    3. Applicants submit that sections 17(a)(3) and 21(b) of the Act
were intended to prevent a party with strong potential adverse
interests to, and some influence over the investment decisions of, a
registered investment company from causing or inducing the investment
company to engage in lending transactions that unfairly inure to the
benefit of such party and that are detrimental to the best interests of
the investment company and its shareholders. Applicants assert that the
proposed credit facility transactions do not raise these concerns
because: (a) FAM, through the Credit Facility Team, would administer
the program as a disinterested fiduciary as part of its duties under
the relevant management, advisory or administrative contract with each
Fund; (b) all Interfund Loans would consist only of uninvested cash
reserves that the lending Fund otherwise would invest in bank time
deposits; (c) the Interfund Loans would not involve a significantly
greater risk than bank time deposits; (d) the lending Fund would
receive interest at a rate higher than it could otherwise obtain
through bank time deposits; and (e) the borrowing Fund would pay
interest at a rate lower than otherwise available to it under its bank
loan agreements and avoid the up-front commitment fees associated with
committed lines of credit. Moreover, applicants believe that the other
terms and conditions that applicants propose also would effectively
preclude the possibility of any Fund obtaining an undue advantage over
any other Fund.
    4. Section 17(a)(1) of the Act generally prohibits an affiliated
person of a registered investment company, or any affiliated person of
such a person, from selling securities or other property to the
investment company. Section 17(a)(2) of the Act generally prohibits an
affiliated person of a registered investment company, or any affiliated
person of such a person, from purchasing securities or other property
from the investment company. Section 12(d)(1) of the Act generally
prohibits a registered investment company from purchasing or otherwise
acquiring any security issued by any other investment company except in
accordance with the limitations set forth in that section.
    5. Applicants state that the obligation of a borrowing Fund to
repay an Interfund Loan could be deemed to constitute a security for
the purposes of sections 17(a)(1) and 12(d)(1). Applicants also state
that any pledge of assets in connection with an Interfund Loan could be
construed as a purchase of the borrowing Fund's securities or other
property for purposes of section 17(a)(2) of the Act. Section
12(d)(1)(J) of the Act provides that the Commission may exempt persons
or transactions from any provision of section 12(d)(1) if and to the
extent that such exemption is consistent with the public interest and
the protection of investors. Applicants contend that the standards
under sections 6(c), 17(b), and 12(d)(1)(J) are satisfied for all the
reasons set forth above in support of their request for relief from
sections 17(a)(3) and 21(b) and for the reasons discussed below.
Applicants also state that the requested relief from section 17(a)(2)
of the Act meets the standards of section 6(c) and 17(b) because any
collateral pledged to secure an Interfund Loan would be subject to the
same conditions imposed by any other lender to a Fund that imposes
conditions on the quality of or access to collateral for a borrowing
(if the lender is another Fund) or the same or better conditions (in
any other circumstance).
    6. Applicants state that section 12(d)(1) was intended to prevent
the pyramiding of investment companies in order to avoid imposing on
investors additional and duplicative costs and fees attendant upon
multiple layers of investments. Applicants submit that the proposed
credit facility does not involve these abuses. Applicants note that
there will be no duplicative costs or fees to the Funds or
shareholders, and that FAM will receive no additional compensation for
its services in administering the credit facility. Applicants also note
that the entire purpose of the proposed credit facility is to provide
economic benefits for all the participating Funds and their
shareholders.
    7. Section 18(f)(1) of the Act prohibits open-end investment
companies from issuing any senior security except that a company is
permitted to borrow from any bank, provided, that immediately after the
borrowing, there is asset coverage of at least 300 per centum for all
borrowings of the company. Under section 18(g) of the Act, the term
``senior security'' includes any bond, debenture, note or similar
obligation or instrument constituting a security and evidencing
indebtedness. Applicants request exemptive relief under section 6(c)
from section 18(f)(1) to the limited extent necessary to implement the
proposed credit facility (because the lending Funds are not banks).
    8. Applicants believe that granting relief under section 6(c) is
appropriate because the Funds would remain subject to the requirement
of section 18(f)(1) that all borrowings of a Fund, including combined
interfund and bank borrowings, have at least 300% asset coverage. Based
on the conditions and safeguards described in the application,
applicants also submit that to allow the Funds to borrow from other
Funds pursuant to the proposed credit facility is consistent with the
purposes and policies of section 18(f)(1).
    9. Section 17(d) of the Act and rule 17d-1 under the Act generally
prohibit an affiliated person of a registered investment company, or
any affiliated person of such a person, when acting as principal, from
effecting any joint transaction in which the investment company
participates, unless, upon application, the transaction has been
approved by the Commission. Rule 17d-1(b) under the Act provides that
in passing upon an application filed under the rule, the Commission
will consider whether the participation of the registered investment
company in a joint enterprise on the basis proposed is consistent with
the provisions, policies and purposes of the Act and the extent to
which such participation is on a basis different from or less
advantageous than that of the other participants.

    10. Applicants submit that the purpose of section 17(d) is to avoid
overreaching by and unfair advantage to insiders. Applicants believe
that the proposed credit facility is consistent with the provisions,
policies and purposes of the Act in that it offers both reduced
borrowing costs and enhanced returns on loaned funds to all
participating Funds and their shareholders. Applicants note that each
Fund would have an equal opportunity to borrow and lend on equal terms
consistent with its investment policies and fundamental investment
limitations. Applicants therefore believe that each Fund's
participation in the proposed credit facility would be on terms which
are no different from or less advantageous than that of other
participating Funds.

Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. The Interfund Loan Rate will be the average of the Time Deposit
Rate and the Bank Loan Rate.
    2. On each business day, the Credit Facility Team will compare the
Bank Loan Rate with the Time Deposit Rate and will make cash available
for Interfund Loans only if the Interfund Loan Rate is: (a) more
favorable to the lending Fund than the Time Deposit Rate; and (b) more
favorable to the borrowing Fund than the Bank Loan Rate.
    3. If a Fund has outstanding bank borrowings, any Interfund Loans
to the Fund: (a) Will be at an interest rate equal to or lower than the
interest rate of any outstanding bank loan; (b) will be secured at
least on an equal priority basis with at least an equivalent percentage
of collateral to loan value as any outstanding bank loan that requires
collateral; (c) will have a maturity no longer than any outstanding
bank loan (and in any event not over seven days); and (d) will provide
that, if an event of default by the Fund occurs under any agreement
evidencing an outstanding bank loan to the Fund, that event of default
will automatically (without need for action or notice by the lending
Fund) constitute an immediate event of default under the Interfund
Lending Agreement entitling the lending Fund to call the Interfund Loan
(and exercise all rights with respect to any collateral) and that such
call will be made if the lending bank exercises its right to call its
loan under its agreement with the borrowing Fund.
    4. A Fund may make an unsecured borrowing through the proposed
credit facility if its outstanding borrowings from all sources
immediately after the interfund borrowing total 10% or less of its
total assets, provided that if the Fund has a secured loan outstanding
from any other lender, including but not limited to another Fund, the
Fund's interfund borrowing will be secured on at least an equal
priority basis with at least an equivalent percentage of collateral to
loan value as any outstanding loan that requires collateral. If a
Fund's total outstanding borrowings immediately after an interfund
borrowing would be greater than 10% of its total assets, the Fund may
borrow through the proposed credit facility only on a secured basis. A
Fund may not borrow through the proposed credit facility or from any
other source if its total outstanding borrowings immediately after such
borrowing would be more than 33\1/3\% of its total assets.
    5. Before any Fund that has outstanding interfund borrowings may,
through additional borrowings, cause its outstanding borrowings from
all sources to exceed 10% of its total assets, the Fund must first
secure each outstanding lnterfund Loan by the pledge of segregated
collateral with a market value at least equal to 102% of the
outstanding principal value of the loan. If the total outstanding
borrowings of a Fund with outstanding Interfund Loans exceed 10% of its
total assets for any other reason (such as a decline in net asset value
or because of shareholder redemptions), the Fund will within one
business day thereafter: (a) Repay all of its outstanding Interfund
Loans; (b) reduce its outstanding indebtedness to 10% or less of its
total assets; or (c) secure each outstanding Interfund Loan by the
pledge of segregated collateral with a market value at least equal to
102% of the outstanding principal value of the loan until the Fund's
total outstanding borrowings cease to exceed 10% of its total assets,
at which time the collateral called for by this condition 5 shall no
longer be required. Until each Interfund Loan that is outstanding at
any time that a Fund's total outstanding borrowings exceed 10% is
repaid or the Fund's total outstanding borrowings cease to exceed 10%
of its total assets, the Fund will mark the value of the collateral to
market each day and will pledge such additional collateral as is
necessary to maintain the market value of the collateral that secures
each outstanding Interfund Loan at least equal to 102% of the
outstanding principal value of the lnterfund Loan.
    6. No Fund may lend to another Fund through the proposed credit
facility if the loan would cause its aggregate outstanding loans
through the proposed credit facility to exceed 15% of the lending
Fund's current net assets at the time of the loan.
    7. A Fund's Interfund Loans to any one Fund shall not exceed 5% of
the lending Fund's net assets.
    8. The duration of Interfund Loans will be limited to the time
required to receive payment for securities sold, but in no event more
than seven days. Loans effected within seven days of each other will be
treated as separate loan transactions for purposes of this condition.
    9. A Fund's borrowings through the proposed credit facility, as
measured on the day when the most recent loan was made, will not exceed
the greater of 125% of the Fund's total net cash redemptions for the
preceding seven calendar days or 102% of the Fund's sales fails for the
preceding seven calendar days.
    10. Each Interfund Loan may be called on one business day's notice
by a lending Fund and may be repaid on any day by a borrowing Fund.
    11. A Fund's participation in the proposed credit facility must be
consistent with its investment objectives and limitations and
organizational documents.
    12. The Credit Facility Team will calculate total Fund borrowing
and lending demand through the proposed credit facility, and allocate
loans on an equitable basis among the Funds, without the intervention
of any portfolio manager of the Funds. The Credit Facility Team will
not solicit cash for the proposed credit facility from any Fund or
prospectively publish or disseminate loan demand data to portfolio
managers. The Credit Facility Team will invest any amounts remaining
after satisfaction of borrowing demand in accordance with the standing
instructions of the portfolio managers or such remaining amounts will
be invested directly by the portfolio managers of the Funds.
    13. FAM will monitor the Interfund Loan Rate and the other terms
and conditions of the Interfund Loans and will make a quarterly report
to the Trustees of each Trust concerning the participation of the Funds
in the proposed credit facility and the terms and other conditions of
any extensions of credit under the credit facility.
    14. The Trustees of each Trust, including a majority of the
Independent Trustees, will:
    (a) Review, no less frequently than quarterly, each Fund's
participation in the proposed credit facility during the preceding
quarter for compliance with the conditions of any order permitting such
transactions;

    (b) Establish the Bank Loan Rate formula used to determine the
interest rate on Interfund Loans and review, no less frequently than
annually, the continuing appropriateness of the Bank Loan Rate formula;
and
    (c) Review, no less frequently than annually, the continuing
appropriateness of each Fund's participation in the proposed credit
facility.
    15. In the event an Interfund Loan is not paid according to its
terms and such default is not cured within two business days from its
maturity or from the time the lending Fund makes a demand for payment
under the provisions of the Interfund Lending Agreement, FAM will
promptly refer such loan for arbitration to an independent arbitrator
selected by the Trustees of each Fund involved in the loan who will
serve as arbitrator of disputes concerning Interfund Loans.\3\ The
arbitrator will resolve any problem promptly, and the arbitrator's
decision will be binding on both Funds. The arbitrator will submit, at
least annually, a written report to the Trustees setting forth a
description of the nature of any dispute and the actions taken by the
Funds to resolve the dispute.
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    \3\ If the dispute involves Funds with different Trustees, the
respective Trustees of each Fund will select an independent
arbitrator that is satisfactory to each Fund.
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    16. Each Fund will maintain and preserve for a period of not less
than six years from the end of the fiscal year in which any transaction
by it under the proposed credit facility occurred, the first two years
in an easily accessible place, written records of all such transactions
setting forth a description of the terms of the transactions, including
the amount, the maturity and the Interfund Loan Rate, the rate of
interest available at the time each Interfund Loan is made on overnight
bank time deposits and such other information presented to the Fund's
Trustees in connection with the review required by conditions 13 and
14.
    17. FAM will prepare and submit to the Trustees for review an
initial report describing the operations of the proposed credit
facility and the procedures to be implemented to ensure that all Funds
are treated fairly. After the commencement of the proposed credit
facility, FAM will report on the operations of the proposed credit
facility at the Trustees' quarterly meetings.
    In addition, for two years following the commencement of the credit
facility, the independent public accountant for each Fund shall prepare
an annual report that evaluates FAM's assertion that it has established
procedures reasonably designed to achieve compliance with the terms and
conditions of the order. The report will be prepared in accordance with
the Statements on Standards for Attestation Engagements No. 10, and it
shall be filed pursuant to Item 77Q3 of Form N-SAR as such Statements
or Form may be revised, amended, or superseded from time to time. In
particular, the report shall address procedures designed to achieve the
following objectives:
    (a) That the Interfund Loan Rate will be higher than the Time
Deposit Rate, but lower than the Bank Loan Rate;
    (b) Compliance with the collateral requirements as set forth in the
application;
    (c) Compliance with the percentage limitations on interfund
borrowing and lending;
    (d) Allocation of interfund borrowing and lending demand in an
equitable manner and in accordance with procedures established by the
Trustees; and
    (e) That the Interfund Loan Rate does not exceed the interest rate
on any third party borrowings of a borrowing Fund at the time of the
Interfund Loan.
    After the final report is filed, each Fund's independent auditors,
in connection with their audit examination of the Funds, will continue
to review the operation of the proposed credit facility for compliance
with the conditions of the application and their review will form the
basis, in part, of the auditor's report on internal accounting controls
in Form NSAR.
    18. No Fund will participate in the proposed credit facility upon
receipt of requisite regulatory approval unless it has fully disclosed
in its prospectus and/or statement of additional information all
material facts about its intended participation.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17355 Filed 7-21-09; 8:45 am]

BILLING CODE 8010-01-P