[Federal Register Volume 76, Number 211 (Tuesday, November 1, 2011)]
[Notices]
[Pages 67525-67526]
[FR Doc No: 2011-28200]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65623; File No. SR-NSCC-2011-09]

Self-Regulatory Organizations; The National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Revise NSCC's Fee Schedule as It Applies to Certain
Hedge Fund Products Within NSCC's Alternative Investment Products
Service

October 26, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 12, 2011, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change described in Items I and II below, which Items have been
prepared primarily by NSCC. NSCC filed the proposal pursuant to Section
19(b)(3)(A)(ii) of the Act,\2\ and Rule 19b-4(f)(2) \3\ thereunder so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the rule
change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The proposed rule change will revise NSCC's fee schedule as it
applies to certain hedge fund products within NSCCs Alternative
Investment Products Service (``AIP'').

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

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\4\
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    \4\ The Commission has modified the text of the summaries
prepared by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to revise NSCC's fee
schedule (Addendum A of the NSCC Rules and Procedures) as it applies to
certain hedge fund products within AIP to align the application of
those fees with the cost of delivering the services. The proposed
revisions to NSCC's fee schedule can be viewed at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-09.pdf.
    The current AIP fee schedule is based upon previously projected
transaction volumes for the various AIP eligible product types, where
fees for higher volume products were intended to be lower than were
fees for lower volume products.\5\ In general, products such as non-
traded Real Estate Investment Trusts and Managed Futures funds are
higher volume products based on their distribution strategy, number of
client accounts, and investment minimums. NSCC had previously projected
that all hedge fund products would be lower volume as they are
generally less broadly distributed, the number of investors is
generally limited, and the investment minimums are quite high.
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    \5\ Securities Exchange Act Release No. 34-59285 (January 23,
2009), 74 FR 5875 (February 2, 2009) and Securities Exchange Act
Release No. 34-63634 (January 3, 2011), 76 FR 1475 (January 10,
2011).
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    NSCC has since recognized that certain hedge funds are distributed
through third party channels and are structured to be more attractive
to the market. In general, these hedge funds are registered under the
Investment Company Act of 1940, as amended (``1940 Act'') and as such,
generally have lower investment minimums and no statutory limit on the
number of

investors, factors which tend to increase their transaction volume over
traditional hedge funds. The AIP fee schedule, as it was originally
intended and filed with the Commission, contemplated a fee
differentiation based on volume. Accordingly, NSCC seeks to apply the
lower fee structure to hedge funds that are registered under the 1940
Act.
    NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder applicable to NSCC because it updates the NSCC
fee schedule and provides for the equitable allocation of fees among
NSCC's members. In addition, this proposed rule change is consistent
with CPSS/IOSCO recommendations because it provides NSCC members with
sufficient information for them to identify and evaluate accurately the
costs associated with using NSCC's services.
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    \6\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any
impact or impose any burden on competition.

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

    Written comments relating to the proposed rule change have not been
solicited or received. NSCC will notify the Commission of any written
comments received by NSCC.

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

    The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2)
\8\ thereunder. At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NSCC-2011-09 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-NSCC-2011-09. 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 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, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of NSCC and on NSCC's
Web site at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-09.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-NSCC-2011-09
and should be submitted on or before November 22, 2011.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Kevin O'Neill,
Deputy Secretary.
[FR Doc. 2011-28200 Filed 10-31-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: May 7, 2008 (Volume 73, Number 89)]
[Notices]
[Page 25789-25793]
[DOCID:fr07my08-134]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28259; 812-13476]

Fidelity Rutland Square Trust, et al.; Notice of Application

April 30, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order under section 12(d)(1)(J) of
the Investment Company Act of 1940 (``Act'') for an exemption from
sections 12(d)(1)(A) and (B) of the Act, and under sections 6(c) and
17(b) of the Act for an exemption from section 17(a) of the Act.

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Summary of the Application: Applicants request an order to permit
certain registered open-end management investment companies to acquire
shares of other registered open-end management investment companies and
unit investment trusts that are within and outside the same group of
investment companies. The order would supersede a prior order (the
``Prior Order'').\1\
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    \1\ Fidelity Rutland Square Trust, et al., Investment Company
Act Release Nos. 28008 (Sept. 28, 2007) (notice) and 28023 (Oct. 24,
2007) (order).

Applicants: Fidelity Management & Research Company (``FMR''), Fidelity
Management Trust Company (``FMTC''), Pyramis Global Advisors Trust
Company (``PGATC''), Strategic Advisers, Inc. (``SAI'') (collectively,
the ``Adviser''); Fidelity Distributors Corporation (``FDC'') and
National Financial Services LLC (``NFS'') (collectively, the
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``Distributor''); and Fidelity Rutland Square Trust (the ``Trust'').

Filing Dates: The application was filed on January 16, 2008, and
amended on April 29, 2008.

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 May 27,
2008, 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, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090; Applicants, 82 Devonshire Street,
Boston, MA 02109.

FOR FURTHER INFORMATION CONTACT: Christine Y. Greenlees, Senior
Counsel, at<PHONE_NUMBER>, or Michael W. Mundt, Assistant Director, at
(202) 551-6821 (Office of Investment Company Regulation, Division of
Investment Management).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Desk, 100 F Street, NE., Washington, DC
20549-1520 (telephone<PHONE_NUMBER>).

Applicants' Representations

    1. The Trust is a statutory trust organized under the laws of the
state of Delaware and is registered under the Act as an open-end
management investment company. The Trust currently offers seven series
that intend to rely on the relief requested by the application: PAS
Core Income Fund of Funds, PAS Income Opportunities Fund of Funds, PAS
International Fund of Funds, PAS International Fidelity Fund of Funds,
PAS Small Cap Fund of Funds, PAS U.S. Opportunity Fund of Funds, and
PAS U.S. Opportunity Fidelity Fund of Funds (``PAS Funds,'' and each a
``Fund of Funds'').\2\ Each PAS Fund operates as a fund of funds and
has its own distinct investment objectives, policies and restrictions.
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    \2\ Applicants request that the order extend to each registered
open-end management investment company or series thereof that is
part of the same group of investment companies, as defined in
section 12(d)(1)(G)(ii) of the Act as the Trust (each included in
the term ``Fund of Funds'') and advised by the Adviser or any
investment adviser controlling, controlled by, or under common
control with the Adviser (each included in the term ``Adviser'').
Each existing registered open-end management investment company that
currently intends to rely on the order is named as an applicant. Any
other existing or future registered open-end management investment
company that subsequently relies on the order will do so only in
accordance with the terms and conditions of the application.
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    2. SAI currently serves as the investment adviser to each PAS Fund.
FMR and SAI are investment advisers registered under the Investment
Advisers Act of 1940 (the ``Advisers Act''). Each of FMTC and PGATC is
a ``bank'' within the meaning of section 202(a)(2) of the Advisers Act
and, accordingly, is exempt from registration under the Advisers Act.
Any Adviser to a Fund will be registered under the Advisers Act. Each
of FMR, FMTC, PGATC, and SAI is a direct or indirect subsidiary of FMR
LLC, a Delaware limited liability company. FDC and NFS are broker-
dealers registered under the Securities Exchange Act of 1934
(``Exchange Act''). Each of FDC and NFS is a direct or indirect
subsidiary of FMR LLC. FDC is currently the distributor of the PAS
Funds.
    3. Applicants request relief to permit: (a) A Fund of Funds to
acquire shares of registered open-end management investment companies
that are not part of the same ``group of investment companies'' (as
defined in section 12(d)(1)(G)(ii) of the Act) as the Fund of Funds
(the ``Non-Affiliated Investment Companies'') and unit investment
trusts (``UITs'') that are not part of the same group of investment
companies as the Fund of Funds (``Non-Affiliated Trusts,'' and together
with the Non-Affiliated Investment Companies, the ``Non-Affiliated
Underlying Funds''); (b) the Non-Affiliated Underlying Funds, their
principal underwriter and brokers and dealers registered under the
Exchange Act (``Brokers'') to sell such shares to the Fund of Funds;
(c) a Fund of Funds to acquire shares of certain other registered open-
end management investment companies advised by the Adviser or series
thereof and that are part of the same ``group of investment companies''
(as defined in section 12(d)(1)(G)(ii) of the Act) as the Fund of Funds
(``Affiliated Underlying Funds,'' and together with the Non-Affiliated
Underlying Funds, the ``Underlying Funds''); and (d) the Affiliated
Underlying Funds, their principal underwriter and Brokers to sell such
shares to the Fund of Funds.\3\ Certain of the Non-Affiliated
Underlying Funds may be registered under the Act as either UITs or
open-end management investment companies and have received exemptive
relief to permit their shares to be listed and traded on a national
securities exchange at negotiated prices (``ETFs''). Each Fund of Funds
also may invest in stocks, bonds, money market instruments and other
securities and financial instruments that are consistent with its
investment objective.
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    \3\ With regard to purchases of shares of Non-Affiliated
Underlying Funds, the requested order would apply to purchases made
by a Fund of Funds only to the extent that the Fund of Funds could
not rely on the provisions of section 12(d)(1)(F) of the Act.
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Applicants' Legal Analysis

A. Section 12(d)(1)

    1. Section 12(d)(1)(A) of the Act prohibits a registered investment
company from acquiring shares of an investment company if the
securities represent more than 3% of the total outstanding voting stock
of the acquired company, more than 5% of the total assets of the
acquiring company, or, together with the securities of any other
investment companies, more than 10% of the total assets of the
acquiring company. Section 12(d)(1)(B) of the Act prohibits a
registered open-end investment company, its principal underwriter and
any broker or dealer from selling the shares of the investment company
to another investment company if the sale will cause the acquiring
company to own more than 3% of the acquired company's voting stock, or
if the sale will cause more than 10% of the acquired company's voting
stock to be owned by investment companies generally.
    2. Section 12(d)(1)(J) of the Act provides that the Commission may
exempt any person, security, or transaction, or any class or classes of
persons, securities or transactions, from any provision of section
12(d)(1) if the exemption is consistent with the public interest and
the protection of investors. Applicants seek an exemption under section
12(d)(1)(J) of the Act to permit the Funds of Funds to acquire shares
of the Underlying Funds and to permit the Underlying Funds, their
principal underwriter and Brokers to sell shares to the Funds of Funds
beyond the limits set forth in sections 12(d)(1)(A) and (B) of the Act.
    3. Applicants state that the proposed arrangement will not give
rise to the policy concerns underlying sections 12(d)(1)(A) and (B),
which include concerns about undue influence by a fund of funds over
underlying funds, excessive layering of fees, and overly complex fund
structures. Accordingly, applicants believe that the requested
exemption is consistent with the public interest and the protection of
investors.
    4. Applicants state that the proposed arrangement will not result
in undue influence by a Fund of Funds or its

affiliated persons over the Non-Affiliated Underlying Funds. The
concern about undue influence does not arise in connection with a Fund
of Funds' investment in the Affiliated Underlying Funds, since they are
part of the same group of investment companies. To limit the control
that a Fund of Funds may have over a Non-Affiliated Underlying Fund,
applicants propose a condition prohibiting: (a) The Adviser, any person
controlling, controlled by or under common control with the Adviser,
and any investment company or issuer that would be an investment
company but for section 3(c)(1) or section 3(c)(7) of the Act advised
or sponsored by the Adviser or any person controlling, controlled by or
under common control with the Adviser (collectively, the ``Group'');
and (b) any investment adviser to a Fund of Funds within the meaning of
section 2(a)(20)(B) of the Act (``Subadviser''), any person
controlling, controlled by or under common control with the Subadviser,
and any investment company or issuer that would be an investment
company but for section 3(c)(1) or 3(c)(7) of the Act (or portion of
such investment company or issuer) advised or sponsored by the
Subadviser or any person controlling, controlled by or under common
control with the Subadviser (collectively, the ``Subadviser Group'')
from controlling (individually or in the aggregate) a Non-Affiliated
Underlying Fund within the meaning of section 2(a)(9) of the Act.
    5. Applicants further state that condition 2 below precludes a Fund
of Funds and its Adviser, Subadviser, promoter, principal underwriter
and any person controlling, controlled by or under common control with
any of these entities (each, a ``Fund Affiliate'') from causing any
existing or potential investment by the Fund of Funds in a Non-
Affiliated Underlying Fund to influence the terms of any services or
transactions between the Fund of Funds or a Fund Affiliate and the Non-
Affiliated Underlying Fund or its investment adviser(s), sponsor,
promoter, principal underwriter and any person controlling, controlled
by or under common control with any of these entities (each, a ``Non-
Affiliated Fund Affiliate''). No Fund of Funds or Fund Affiliate
(except to the extent it is acting in its capacity as an investment
adviser to a Non-Affiliated Investment Company or sponsor to a Non-
Affiliated Trust) will cause a Non-Affiliated Underlying Fund to
purchase a security in an offering of securities during the existence
of any underwriting or selling syndicate of which a principal
underwriter is an officer, director, member of an advisory board,
Adviser, Subadviser, or employee of the Fund of Funds, or a person of
which any such officer, director, member of an advisory board, Adviser,
Subadviser, or employee is an affiliated person (each, an
``Underwriting Affiliate,'' except any person whose relationship to the
Non-Affiliated Underlying Fund is covered by section 10(f) of the Act
is not an Underwriting Affiliate). An offering of securities during the
existence of an underwriting or selling syndicate of which a principal
underwriter is an Underwriting Affiliate is an ``Affiliated
Underwriting.''
    6. Applicants also propose a condition that once an investment by a
Fund of Funds in the securities of a Non-Affiliated Investment Company
exceeds the limit in section 12(d)(1)(A)(i) of the Act, the board of
directors or trustees of the Non-Affiliated Investment Company,
including a majority of the independent directors or trustees, will
determine that any consideration paid by the Non-Affiliated Investment
Company to the Fund of Funds or a Fund Affiliate Service Provider \4\
in connection with any services or transactions: (a) Is fair and
reasonable in relation to the nature and quality of the services and
benefits received by the Non-Affiliated Investment Company; (b) is
within the range of consideration that the Non-Affiliated Investment
Company would be required to pay to another unaffiliated entity in
connection with the same services or transactions; and (c) does not
involve overreaching on the part of any person concerned.
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    \4\ A``Fund Affiliate Service Provider'' is the Adviser, any
Subadviser, promoter or principal underwriter of the Fund of Funds,
and any person controlling, controlled by or under common control
with any of these entities, provided that (i) such person would
reasonably be expected to be in a position to provide services of a
securities-related nature (that is, investment advisory, brokerage,
distribution, transfer agency, administration, participant
recordkeeping or shareholder services) to a Non-Affiliated
Underlying Fund, or (ii) if such person is not described by clause
(i), to the actual knowledge of the Adviser, any Subadviser,
promoter or principal underwriter of the Fund of Funds, such person
currently has or is reasonably expected to begin having a material
business relationship with a Non-Affiliated Underlying Fund.
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    7. To further assure that a Non-Affiliated Investment Company
understands the implications of an investment by a Fund of Funds under
the requested order, prior to a Fund of Funds' investment in a Non-
Affiliated Investment Company in excess of the limit in section
12(d)(1)(A)(i) of the Act, the Fund of Funds and Non-Affiliated
Investment Company will execute an agreement stating, without
limitation, that their boards of directors or trustees and their
investment advisers understand the terms and conditions of the order
and agree to fulfill their responsibilities under the order
(``Participation Agreement''). Applicants note that a Non-Affiliated
Underlying Fund will retain the right to reject any direct investment
from a Fund of Funds.\5\
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    \5\ To the extent a Fund of Funds purchases shares of a Non-
Affiliated Underlying Fund that is an ETF in the secondary market,
the Non-Affiliated Underlying Fund would still retain its ability to
reject initial purchases of shares made in reliance on the requested
order by declining to enter into a Participation Agreement prior to
any investment by a Fund of Funds in excess of the limits of section
12(d)(1)(A)(i) of the Act.
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    8. Applicants do not believe that the proposed arrangement will
involve excessive layering of fees. With respect to investment advisory
fees, applicants state that, prior to approving any investment advisory
contract under section 15 of the Act, the board of trustees of the Fund
of Funds (the ``Board''), including a majority of the trustees who are
not ``interested persons,'' as defined in section 2(a)(19) of the Act
(the ``Independent Trustees''), will find that the investment advisory
fees charged under the Fund of Fund's investment advisory contract are
based on services provided that are in addition to, rather than
duplicative of, services provided pursuant to any Underlying Fund's
advisory contract(s). Applicants further state that the Adviser or
Distributor will waive fees otherwise payable to it by a Fund of Funds
in an amount at least equal to any compensation (including fees
received pursuant to any plan adopted by a Non-Affiliated Investment
Company under rule 12b-1 under the Act) received from a Non-Affiliated
Underlying Fund by the Adviser, or an affiliated person of the Adviser,
other than any advisory fees paid to the Adviser or its affiliated
person by the Non-Affiliated Investment Company, in connection with the
investment by the Fund of Funds in the Non-Affiliated Underlying Fund.
Applicants also state that any sales charges and/or service fees, as
defined in Rule 2830 of the Conduct Rules of the NASD (``NASD Conduct
Rule 2830''), charged with respect to shares of a Fund of Funds will
not exceed the limits applicable to a fund of funds set forth in NASD
Conduct Rule 2830.
    9. Applicants state that the proposed arrangement will not create
an overly complex fund structure. Applicants note that an Underlying
Fund will be prohibited from acquiring securities of any investment
company or company

relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the
limits contained in section 12(d)(1)(A), except in certain
circumstances identified in condition 12 below. Applicants also
represent that a Fund of Funds' prospectus and sales literature will
contain concise, ``plain English'' disclosure designed to inform
investors about the unique characteristics of the proposed arrangement,
including its expense structure and the additional expenses of
investing in Underlying Funds.

B. Section 17(a)

    10. Section 17(a) of the Act generally prohibits sales or purchases
of securities between a registered investment company and any
affiliated person of the company. Section 2(a)(3) of the Act defines an
``affiliated person'' of another person to include: (a) Any person
directly or indirectly owning, controlling, or holding with power to
vote, 5% or more of the outstanding voting securities of the other
person; (b) any person 5% or more of whose outstanding voting
securities are directly or indirectly owned, controlled, or held with
power to vote by the other person; and (c) any person directly or
indirectly controlling, controlled by, or under common control with the
other person.
    11. Applicants state that if a Fund of Funds and an Affiliated
Underlying Fund were deemed to be under common control, they would be
affiliated persons of each another. Applicants also state that a Fund
of Funds and an Underlying Fund might be deemed to be affiliated
persons of one another if a Fund of Funds acquires 5% or more of an
Underlying Fund's outstanding voting securities. In light of these
possible affiliations, section 17(a) could prevent an Underlying Fund
from selling shares to and redeeming shares from a Fund of Funds.\6\
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    \6\ Applicants note that a Fund of Funds investing in Non-
Affiliated Underlying Funds that are ETFs generally would purchase
and sell shares of the ETFs through secondary market transactions at
market prices rather than through principal transactions with the
Non-Affiliated Underlying Fund. Applicants would not rely on the
requested relief from section 17(a) for such secondary market
transactions. To the extent that a Fund of Funds purchases or
redeems shares from a Non-Affiliated Underlying Fund that is an ETF
and an affiliated person of the Fund of Funds in exchange for a
basket of specified securities as described in the application for
the exemptive order upon which the ETF relies, applicants also
request relief from section 17(a) for those transactions. A Fund of
Funds would not purchase or redeem shares directly from an
Affiliated Underlying Fund operating as an ETF.
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    12. Section 17(b) of the Act authorizes the Commission to grant an
order permitting a transaction otherwise prohibited by section 17(a) if
it finds that: (a) The terms of the proposed transaction are fair and
reasonable and do not involve overreaching on the part of any person
concerned; (b) the proposed transaction is consistent with the policies
of each registered investment company involved; and (c) the proposed
transaction is consistent with the general purposes of the Act. Section
6(c) of the Act permits the Commission to exempt any person or
transactions from any provision of the Act if such 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.
    13. Applicants submit that the proposed transactions satisfy the
standards for relief under sections 17(b) and 6(c) of the Act as the
terms are fair and reasonable and do not involve overreaching.\7\
Applicants note that the terms upon which an Underlying Fund will sell
its shares to or purchase its shares from a Fund of Funds will be based
on the net asset value of each Underlying Fund. Applicants state that
the proposed arrangement will be consistent with the policies of each
Fund of Funds and Underlying Fund, and with the general purposes of the
Act.
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    \7\ Applicants acknowledge that receipt of compensation by (a)
an affiliated person of a Fund of Funds, or an affiliated person of
such person, for the purchase by the Fund of Funds of shares of an
Underlying Fund or (b) an affiliated person of an Underlying Fund,
or an affiliated person of such person, for the sale by the
Underlying Fund of its shares to a Fund of Funds may be prohibited
by section 17(e)(1) of the Act. The Participation Agreement also
will include this acknowledgement.
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Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. The members of the Group will not control (individually or in
the aggregate) a Non-Affiliated Underlying Fund within the meaning of
section 2(a)(9) of the Act. The members of the Subadviser Group will
not control (individually or in the aggregate) a Non-Affiliated
Underlying Fund within the meaning of section 2(a)(9) of the Act. If,
as a result of a decrease in the outstanding voting securities of a
Non-Affiliated Underlying Fund, the Group or the Subadviser Group, each
in the aggregate, becomes a holder of more than 25% of the outstanding
voting securities of a Non-Affiliated Underlying Fund, it will vote its
shares of the Non-Affiliated Underlying Fund in the same proportion as
the vote of all other holders of the Non-Affiliated Underlying Fund's
shares. This condition will not apply to the Subadviser Group with
respect to a Non-Affiliated Underlying Fund for which the Subadviser or
a person controlling, controlled by, or under common control with the
Subadviser, acts as the investment adviser within the meaning of
section 2(a)(20)(A) of the Act (in the case of a Non-Affiliated
Investment Company) or as the sponsor (in the case of a Non-Affiliated
Trust).
    2. No Fund of Funds or Fund Affiliate will cause any existing or
potential investment by the Fund of Funds in a Non-Affiliated
Underlying Fund to influence the terms of any services or transactions
between the Fund of Funds or a Fund Affiliate and the Non-Affiliated
Underlying Fund or a Non-Affiliated Fund Affiliate.
    3. The Board of the Fund of Funds, including a majority of the
Independent Trustees, will adopt procedures reasonably designed to
assure that the Adviser and any Subadviser are conducting the
investment program of the Fund of Funds without taking into account any
consideration received by the Fund of Funds or a Fund Affiliate from a
Non-Affiliated Underlying Fund or a Non-Affiliated Fund Affiliate in
connection with any services or transactions.
    4. Once an investment by a Fund of Funds in the securities of a
Non-Affiliated Investment Company exceeds the limit in section
12(d)(1)(A)(i) of the Act, the board of directors or trustees of the
Non-Affiliated Investment Company, including a majority of the
independent directors or trustees, will determine that any
consideration paid by the Non-Affiliated Investment Company to the Fund
of Funds or a Fund Affiliate Service Provider in connection with any
services or transactions: (a) Is fair and reasonable in relation to the
nature and quality of the services and benefits received by the Non-
Affiliated Investment Company; (b) is within the range of consideration
that the Non-Affiliated Investment Company would be required to pay to
another unaffiliated entity in connection with the same services or
transactions; and (c) does not involve overreaching on the part of any
person concerned. This condition does not apply with respect to any
services or transactions between a Non-Affiliated Investment Company
and its investment adviser(s), or any person controlling, controlled
by, or under common control with such investment adviser(s).
    5. No Fund of Funds or Fund Affiliate (except to the extent it is
acting in its capacity as an investment adviser to a Non-Affiliated
Investment Company or

sponsor to a Non-Affiliated Trust) will cause a Non-Affiliated
Underlying Fund to purchase a security in any Affiliated Underwriting.
    6. The board of directors or trustees of a Non-Affiliated
Investment Company, including a majority of the independent directors
or trustees, will adopt procedures reasonably designed to monitor any
purchases of securities by the Non-Affiliated Investment Company in an
Affiliated Underwriting once an investment by a Fund of Funds in the
securities of the Non-Affiliated Investment Company exceeds the limit
of section 12(d)(1)(A)(i) of the Act, including any purchases made
directly from an Underwriting Affiliate. The board of directors or
trustees of the Non-Affiliated Investment Company will review these
purchases periodically, but no less frequently than annually, to
determine whether the purchases were influenced by the investment by
the Fund of Funds in the Non-Affiliated Investment Company. The board
of directors or trustees of the Non-Affiliated Investment Company will
consider, among other things: (a) Whether the purchases were consistent
with the investment objectives and policies of the Non-Affiliated
Investment Company; (b) how the performance of securities purchased in
an Affiliated Underwriting compares to the performance of comparable
securities purchased during a comparable period of time in
underwritings other than Affiliated Underwritings or to a benchmark
such as a comparable market index; and (c) whether the amount of
securities purchased by the Non-Affiliated Investment Company in
Affiliated Underwritings and the amount purchased directly from an
Underwriting Affiliate have changed significantly from prior years. The
board of directors or trustees of a Non-Affiliated Investment Company
will take any appropriate actions based on its review, including, if
appropriate, the institution of procedures designed to assure that
purchases of securities in Affiliated Underwritings are in the best
interests of shareholders.
    7. Each Non-Affiliated Investment Company will maintain and
preserve permanently in an easily accessible place a written copy of
the procedures described in the preceding condition, and any
modifications to such procedures, and will maintain and preserve for a
period of not less than six years from the end of the fiscal year in
which any purchase from an Affiliated Underwriting occurred, the first
two years in an easily accessible place, a written record of each
purchase of securities in an Affiliated Underwriting once an investment
by a Fund of Funds in the securities of a Non-Affiliated Investment
Company exceeds the limit of section 12(d)(1)(A)(i) of the Act, setting
forth the (a) Party from whom the securities were acquired, (b)
identity of the underwriting syndicate's members, (c) terms of the
purchase, and (d) information or materials upon which the
determinations of the board of directors or trustees of the Non-
Affiliated Investment Company were made.
    8. Before investing in a Non-Affiliated Investment Company in
excess of the limit in section 12(d)(1)(A)(i) of the Act, the Fund of
Funds and the Non-Affiliated Investment Company will execute a
Participation Agreement stating, without limitation, that their boards
of directors or trustees and their investment advisers understand the
terms and conditions of the order and agree to fulfill their
responsibilities under the order. At the time of its investment in
shares of a Non-Affiliated Investment Company in excess of the limit in
section 12(d)(1)(A)(i), the Fund of Funds will notify the Non-
Affiliated Investment Company of the investment. At such time, the Fund
of Funds will also transmit to the Non-Affiliated Investment Company a
list of the names of each Fund Affiliate Service Provider and
Underwriting Affiliate. The Fund of Funds will notify the Non-
Affiliated Investment Company of any changes to the list of names as
soon as reasonably practicable after a change occurs. The Non-
Affiliated Investment Company and the Fund of Funds will maintain and
preserve a copy of the order, the Participation Agreement, and the list
with any updated information for the duration of the investment and for
a period of not less than six years thereafter, the first two years in
an easily accessible place.
    9. Before approving any advisory contract under section 15 of the
Act, the Board of the Fund of Funds, including a majority of the
Independent Trustees, will find that the advisory fees charged under
the advisory contract will be based on services provided that will be
in addition to, rather than duplicative of, services provided under the
advisory contract(s) of any Underlying Fund in which the Fund of Funds
may invest. These findings and the basis upon which they are made will
be recorded fully in the minute books of the appropriate Fund of Funds.
    10. The Adviser or Distributor will waive fees otherwise payable to
it by a Fund of Funds in an amount at least equal to any compensation
(including fees received pursuant to any plan adopted by a Non-
Affiliated Investment Company under rule 12b-1 under the Act) received
from a Non-Affiliated Underlying Fund by the Adviser, or an affiliated
person of the Adviser, other than any advisory fees paid to the Adviser
or its affiliated person by the Non-Affiliated Investment Company, in
connection with the investment by the Fund of Funds in the Non-
Affiliated Underlying Fund. Any Subadviser will waive fees otherwise
payable to the Subadviser, directly or indirectly, by the Fund of Funds
in an amount at least equal to any compensation received from a Non-
Affiliated Underlying Fund by the Subadviser, or an affiliated person
of the Subadviser, other than any advisory fees paid to the Subadviser
or its affiliated person by the Non-Affiliated Investment Company, in
connection with the investment by the Fund of Funds in the Non-
Affiliated Underlying Fund made at the direction of the Subadviser. In
the event that the Subadviser waives fees, the benefit of the waiver
will be passed through to the Fund of Funds.
    11. Any sales charges and/or service fees (as defined in NASD
Conduct Rule 2830) charged with respect to shares of a Fund of Funds
will not exceed the limits applicable to a fund of funds set forth in
NASD Conduct Rule 2830.
    12. No Underlying Fund will acquire securities of any investment
company or company relying on section 3(c)(1) or 3(c)(7) of the Act in
excess of the limits contained in section 12(d)(1)(A) of the Act,
except to the extent that such Underlying Fund: (a) Receives securities
of another investment company as a dividend or as a result of a plan of
reorganization of a company (other than a plan devised for the purpose
of evading section 12(d)(1) of the Act); or (b) acquires (or is deemed
to have acquired) securities of another investment company pursuant to
exemptive relief from the Commission permitting such Underlying Fund to
(i) acquire securities of one or more affiliated investment companies
for short-term cash management purposes, or (ii) engage in interfund
borrowing and lending transactions.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-9996 Filed 5-6-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Page 89454]
[FR Doc No: 2016-29699]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. TS17-1-000]

Northern California Power Agency; Notice of Filing

    Take notice that on November 29, 2016, Northern California Power
Agency filed a notice of potential change in material facts and a
request for continued waiver of the Standards of Conduct.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date. On or
before the comment date, it is not necessary to serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 5 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive email
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on December 20, 2016.

    Dated: December 6, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-29699 Filed 12-9-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 70 (Tuesday, April 12, 2022)]
[Notices]
[Pages 21658-21659]
[FR Doc No: 2022-07858]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9672-01-R9]

Revision of Approved State Primacy Program for the State of
Nevada

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of approval.

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

SUMMARY: Notice is hereby given that the State of Nevada revised its
approved State primacy program under the Federal Safe Drinking Water
Act (SDWA) by adopting regulations that effectuate the Federal Consumer
Confidence Report Rule (CCR). The Environmental Protection Agency (EPA)
has determined that Nevada's revision request meets the applicable SDWA
program revision requirements and the regulations adopted by Nevada are
no less stringent than the corresponding Federal regulations.
Therefore, EPA approves this revision to Nevada's approved State
primacy program. However, this determination on Nevada's request for
approval of a program revision shall take effect in accordance with the
procedures described below in the SUPPLEMENTARY INFORMATION section of
this notice after

the opportunity to request a public hearing.

DATES: A request for a public hearing must be received or postmarked
before May 12, 2022.

ADDRESSES: Documents relating to this determination that were submitted
by Nevada as part of its program revision request are available for
public inspection online at https://ndep.nv.gov/posts. In addition,
these documents are available by appointment between the hours of 8:30
a.m. and 4:00 p.m., Monday through Friday, except official State or
Federal holidays, at the following address: Nevada Division of
Environmental Protection, Administration Office, 901 South Stewart
Street, Suite 4001, Carson City, NV 89701. Please contact the Bureau of
Safe Drinking Water at<PHONE_NUMBER> to schedule an appointment.

FOR FURTHER INFORMATION CONTACT: Samantha Bishop, EPA Region 9,
Drinking Water Section; via telephone at<PHONE_NUMBER> or via email
address at [email protected].

SUPPLEMENTARY INFORMATION:
    Background. EPA approved Nevada's initial application for primary
enforcement authority (``primacy'') of drinking water systems on
February 27, 1978 (43 FR 8030). Since initial primacy approval, EPA has
approved various revisions to Nevada's primacy program. For the
revision covered by this action, EPA promulgated the CCR at 40 CFR
141.151-141.155 on August 19, 1998 (63 FR 44512). EPA promulgated the
CCR to give consumers information regarding their drinking water so
that they are able to make personal health-based decisions regarding
their drinking water consumption. EPA has determined that the CCR
requirements were adopted into the Nevada Administrative Code (NAC)
Title 40 Chapter 445A, in a manner that Nevada's regulations are
comparable to and no less stringent than the Federal requirements. EPA
has also determined that the State's program revision request meets all
of the regulatory requirements for approval, as set forth in 40 CFR
142.12, including a side-by-side comparison of the Federal requirements
demonstrating the corresponding State authorities, additional materials
to support special primacy requirements of 40 CFR 142.16, a review of
the requirements contained in 40 CFR 142.10 necessary for States to
attain and retain primary enforcement responsibility, and a statement
by the Nevada Attorney General certifying that Nevada's laws and
regulations to carry out the program revision were duly adopted and are
enforceable. The Attorney General's statement also affirms that there
are no environmental audit privilege and immunity laws that would
impact Nevada's ability to implement or enforce the Nevada laws and
regulations pertaining to the program revision. Therefore, EPA approves
this revision of Nevada's approved State primacy program. The Technical
Support Document, which provides EPA's analysis of Nevada's program
revision request, is available by submitting a request to the following
email address: [email protected]. Please note ``Technical Support
Document'' in the subject line of the email.
    Public Process. Any interested person may request a public hearing
on this determination. A request for a public hearing must be received
or postmarked before May 12, 2022 and addressed to the Regional
Administrator of EPA Region 9, via the following email address: [email protected], or by contacting the EPA Region 9 contact person
listed above in this notice by telephone if you do not have access to
email. Please note ``Nevada Program Revision Determination'' in the
subject line of the email. The Regional Administrator may deny
frivolous or insubstantial requests for a hearing. If a timely request
for a public hearing is made, then EPA Region 9 may hold a public
hearing. Any request for a public hearing shall include the following
information: 1. The name, address, and telephone number of the
individual, organization, or other entity requesting a hearing; 2. A
brief statement of the requesting person's interest in the Regional
Administrator's determination and of information that the requesting
person intends to submit at such hearing; and 3. The signature of the
individual making the request, or, if the request is made on behalf of
an organization or other entity, the signature of a responsible
official of the organization or other entity.
    If EPA Region 9 does not receive a timely request for a hearing or
a request for a hearing was denied by the Regional Administrator for
being frivolous or insubstantial, and the Regional Administrator does
not elect to hold a hearing on their own motion, EPA's approval shall
become final and effective on May 12, 2022, and no further public
notice will be issued.
    Authority: Section 1413 of the Safe Drinking Water Act, as amended,
42 U.S.C. 300g-2 (1996), and 40 CFR part 142 of the National Primary
Drinking Water Regulations.

    Dated: April 1, 2022.
Martha Guzman Aceves,
Regional Administrator, EPA Region 9.
[FR Doc. 2022-07858 Filed 4-8-22; 4:15 pm]
BILLING CODE 6560-50-P


[Federal Register: June 17, 2010 (Volume 75, Number 116)]
[Rules and Regulations]
[Page 34354-34357]
[DOCID:fr17jn10-9]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0327; Directorate Identifier 2010-CE-012-AD;
Amendment 39-16321; AD 2010-12-01]
RIN 2120-AA64

Airworthiness Directives; Cessna Aircraft Company Model 525A
Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) to
supersede AD 2009-24-13, which applies to certain Cessna Aircraft
Company (Cessna) Model 525A airplanes. AD 2009-24-13 currently requires
you to repetitively inspect the thrust attenuator paddle assemblies for
loose and damaged fasteners and for cracks. AD 2009-24-13 also requires
you to replace loose or damaged fasteners and replace cracked thrust
attenuator paddles found during any inspection. Since we issued AD
2009-24-13, Cessna has developed new design thrust attenuator paddles
and universal head rivets as terminating action for the repetitive
inspections. Consequently, this AD would retain the requirements of AD
2009-24-13 until replacement of both thrust attenuator paddles and the
eight countersunk fasteners with new design thrust attenuator paddles
and universal head

rivets. We are issuing this AD to detect and correct loose and damaged
fasteners and cracks in the thrust attenuator paddles, which could
result in in-flight departure of the thrust attenuator paddles. This
failure could lead to rudder and elevator damage and result in loss of
control.

DATES: This AD becomes effective on July 22, 2010.
    On July 22, 2010, the Director of the Federal Register approved the
incorporation by reference of Cessna Citation Service Bulletin SB525A-
78-02, Revision 1, dated February 5, 2010, listed in this AD.
    As of December 15, 2009 (74 FR 62479, November 30, 2009), the
Director of the Federal Register approved the incorporation by
reference of Cessna Citation Alert Service Letter ASL525A-78-01,
Revision 1, dated October 27, 2009, listed in this AD.

ADDRESSES: For service information identified in this AD, contact
Cessna Aircraft Company, Product Support, P.O. Box 7706, Wichita, KS
67277; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; Internet: http:/
/www.cessna.com.
    To view the AD docket, go to U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue, SE., Washington, DC 20590, or on the Internet at
http://www.regulations.gov. The docket number is FAA-2010-0327;
Directorate Identifier 2010-CE-012-AD.

FOR FURTHER INFORMATION CONTACT: T.N. Baktha, Aerospace Engineer,
Wichita Aircraft Certification Office (ACO), 1801 Airport Road, Room
100, Wichita, Kansas 67209; telephone:<PHONE_NUMBER>; fax: (316) 946-
4107.

SUPPLEMENTARY INFORMATION:

Discussion

    On March 23, 2010, we issued a proposal to amend part 39 of the
Federal Aviation Regulations (14 CFR part 39) to include an AD that
would apply to certain Cessna Model 525A airplanes. This proposal was
published in the Federal Register as a notice of proposed rulemaking
(NPRM) on March 30, 2010 (75 FR 15629). The NPRM proposed to supersede
AD 2009-24-13 with a new AD that would retain the requirements of AD
2009-24-13 until replacement of both thrust attenuator paddles and the
eight countersunk fasteners with new design thrust attenuator paddles
and universal head rivets.

Comments

    We provided the public the opportunity to participate in developing
this AD. We received no comments on the proposal or on the
determination of the cost to the public.

Conclusion

    We have carefully reviewed the available data and determined that
air safety and the public interest require adopting the AD as proposed
except for minor editorial corrections. We have determined that these
minor corrections:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Costs of Compliance

    We estimate that this AD affects 136 airplanes in the U.S.
registry.
    We estimate the following costs to do the inspection (retained from
AD 2009-24-13):

----------------------------------------------------------------------------------------------------------------
                                                                                Total cost per   Total cost on
                  Labor cost                              Parts cost                airplane      U.S. operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85.............  Not Applicable.................             $85          $11,560
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary installation
(retained from AD 2009-24-13) of missing/damaged fasteners that will be
required based on the results of the inspection. We have no way of
determining the number of airplanes that may need this replacement:

------------------------------------------------------------------------
                                      Parts cost for     Total cost per
            Labor cost                two fasteners         airplane
------------------------------------------------------------------------
2 work-hours x $85 per hour = $170            $99.90            $269.90
------------------------------------------------------------------------

    We estimate the following costs to do any necessary replacement
(retained from AD 2009-24-13) of a cracked thrust attenuator paddle
that will be required based on the results of the inspection. We have
no way of determining the number of airplanes that may need this
replacement:

------------------------------------------------------------------------
                                     Parts cost (per     Total cost per
            Labor cost                   paddle)            airplane
------------------------------------------------------------------------
3 work-hours x $85 per hour = $255            $1,200             $1,455
------------------------------------------------------------------------

    We estimate the following costs to do the replacement of both
thrust attenuator paddles and the eight countersunk fasteners with new
design thrust attenuator paddles and universal head rivets:

----------------------------------------------------------------------------------------------------------------
                                                                                Total cost per   Total cost on
                          Labor cost                              Parts cost        airplane      U.S. operators
----------------------------------------------------------------------------------------------------------------
5 work-hours x $85 per hour = $425...........................          $3,464           $3,889         $528,904
----------------------------------------------------------------------------------------------------------------

    As determined by the manufacturer, eligible airplanes may qualify
for warranty coverage of parts and labor.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, Section 106 describes the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this AD.

Regulatory Findings

    We have determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a summary of the costs to comply with this AD (and
other information as included in the Regulatory Evaluation) and placed
it in the AD Docket. You may get a copy of this summary by sending a
request to us at the address listed under ADDRESSES. Include ``Docket
No. FAA-2010-0327; Directorate Identifier 2010-CE-012-AD'' in your
request.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the Federal Aviation Administration amends part 39 of the Federal
Aviation Regulations (14 CFR part 39) as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by removing Airworthiness Directive (AD)
2009-24-13, Amendment 39-16105 (74 FR 62479, November 30, 2009), and
adding the following new AD:

2010-12-01 Cessna Aircraft Company: Amendment 39-16321; Docket No.
FAA-2010-0327; Directorate Identifier 2010-CE-012-AD.

Effective Date

    (a) This AD becomes effective on July 22, 2010.

Affected ADs

    (b) This AD supersedes AD 2009-24-13, Amendment 39-16105.

Applicability

    (c) This AD applies to Model 525A airplanes, serial numbers 0001
through 0244, that are certificated in any category.

Subject

    (d) Air Transport Association of America (ATA) Code 72: Engine.

Unsafe Condition

    (e) This AD results from reports of fatigue cracks found in
thrust attenuator paddles on Cessna Model 525A airplanes. We are
issuing this AD to detect and correct loose and damaged fasteners
and cracks in the thrust attenuator paddles, which could result in
in-flight departure of the thrust attenuator paddles. This failure
could lead to rudder and elevator damage and result in loss of
control.

Compliance

    (f) To address this problem, you must do the following, unless
already done:

------------------------------------------------------------------------
           Actions                 Compliance            Procedures
------------------------------------------------------------------------
(1) Visually inspect the      Within the next 60    Follow Cessna
 left and right thrust         days after December   Citation Alert
 attenuator paddle             15, 2009 (the         Service Letter
 assemblies to determine if    effective date        ASL525A-78-01,
 there are any missing,        retained from AD      Revision 1, dated
 loose, or damaged fasteners   2009-24-13) or        October 27, 2009.
 and to determine if there     within the next 30
 are any cracks in the         hours time-in-
 paddle.                       service (TIS) after
                               December 15, 2009
                               (the effective date
                               retained from AD
                               2009-24-13),
                               whichever occurs
                               first. Repetitively
                               thereafter inspect
                               at intervals not to
                               exceed 150 hours
                               TIS.
(2) If you do not find any    Before further        Follow Cessna
 cracks in the thrust          flight after the      Citation Alert
 attenuator paddles during     inspection required   Service Letter
 any inspection required in    in paragraph (f)(1)   ASL525A-78-01,
 paragraph (f)(1) of this      of this AD.           Revision 1, dated
 AD, install any missing       Continue with the     October 27, 2009.
 fasteners, and replace any    repetitive
 loose or damaged fasteners.   inspections
                               specified in
                               paragraph (f)(1) of
                               this AD.
(3) If cracks are found       Before further        Follow Cessna
 during any inspection         flight after the      Citation Alert
 required in paragraph         inspection required   Service Letter
 (f)(1) of this AD, do a       in paragraph (f)(1)   ASL525A-78-01,
 surface eddy current          of this AD in which   Revision 1, dated
 inspection of the thrust      cracks are found.     October 27, 2009.
 attenuator paddles and the
 fastener hole(s) to
 determine the length of the
 cracks(s).

(4) If the cracks identified  (i) If the            Follow Cessna
 in paragraph (f)(3) of this   conditions of         Citation Alert
 AD meet or exceed the         paragraph 3.A.(1)     Service Letter
 limits specified in           of Cessna Citation    ASL525A-78-01,
 paragraph 3 of Cessna         Alert Service         Revision 1, dated
 Citation Alert Service        Letter ASL525A-78-    October 27, 2009.
 Letter ASL525A-78-01,         01, Revision 1,
 Revision 1, dated October     dated October 27,
 27, 2009, replace the         2009, are met,
 thrust attenuator paddle      replace before
 and attachment hardware, as   further flight
 applicable.                   after the
                               inspection required
                               in paragraph (f)(3)
                               of this AD. After
                               the replacement,
                               continue with the
                               repetitive
                               inspections
                               specified in
                               paragraph (f)(1) of
                               this AD.
                              (ii) If the
                               conditions of
                               paragraph 3.A.(2)
                               of Cessna Citation
                               Alert Service
                               Letter ASL525A-78-
                               01, Revision 1,
                               dated October 27,
                               2009, are met,
                               replace within the
                               next 150 hours TIS
                               after the
                               inspection required
                               in paragraph (f)(3)
                               of this AD. After
                               the replacement,
                               continue with the
                               repetitive
                               inspections
                               specified in
                               paragraph (f)(1) of
                               this AD.
(5) Replace both thrust       Within the next 300   Follow Cessna
 attenuator paddles.           hours TIS after       Citation Service
                               July 22, 2010 (the    Bulletin SB525A-78-
                               effective date of     02, Revision 1,
                               this AD), or within   dated February 5,
                               1 year after July     2010.
                               22, 2010 (the
                               effective date of
                               this AD), whichever
                               occurs first.
------------------------------------------------------------------------

    (g) The replacement required in paragraph (f)(5) of this AD
terminates the repetitive inspection requirement of this AD. This
replacement may be done at anytime, but must be done no later than
300 hours TIS after July 22, 2010 (the effective date of this AD),
or within 1 year after July 22, 2010 (the effective date of this
AD), whichever occurs first.
    (h) If, before July 22, 2010 (the effective date of this AD),
you have done all the actions in the original issue of Cessna
Citation Service Bulletin SB525A-78-02, dated November 13, 2009,
then no further action is required by this AD. This is considered
``unless already done'' credit for this AD action.

Alternative Methods of Compliance (AMOCs)

    (i) The Manager, Wichita Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. Send information to
Attn: T.N. Baktha, Aerospace Engineer, Wichita ACO, 1801 Airport
Road, Room 100, Wichita, Kansas 67209; telephone:<PHONE_NUMBER>;
fax:<PHONE_NUMBER>. Before using any approved AMOC on any airplane
to which the AMOC applies, notify your appropriate principal
inspector (PI) in the FAA Flight Standards District Office (FSDO),
or lacking a PI, your local FSDO.
    (j) AMOCs approved for AD 2009-24-13 are approved for this AD.

Material Incorporated by Reference

    (l) You must use Cessna Citation Alert Service Letter ASL525A-
78-01, Revision 1, dated October 27, 2009, and Cessna Citation
Service Bulletin SB525A-78-02, Revision 1, dated February 5, 2010,
to do the actions required by this AD, unless the AD specifies
otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of Cessna Citation Service Bulletin
SB525A-78-02, Revision 1, dated February 5, 2010, under 5 U.S.C.
552(a) and 1 CFR part 51.
    (2) On December 15, 2009 (74 FR 62479, November 30, 2009), the
Director of the Federal Register approved the incorporation by
reference of Cessna Citation Alert Service Letter ASL525A-78-01,
Revision 1, dated October 27, 2009.
    (3) For service information identified in this AD, contact
Cessna Aircraft Company, Product Support, P.O. Box 7706, Wichita, KS
67277; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; Internet:
http://www.cessna.com.
    (4) You may review copies of the service information
incorporated by reference for this AD at the FAA, Central Region,
Office of the Regional Counsel, 901 Locust, Kansas City, Missouri
64106. For information on the availability of this material at the
Central Region, call<PHONE_NUMBER>.
    (5) You may also review copies of the service information
incorporated by reference for this AD at the National Archives and
Records Administration (NARA). For information on the availability
of this material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Kansas City, Missouri, on May 26, 2010.
Steven W. Thompson,
Acting Manager, Small Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-13139 Filed 6-16-10; 8:45 am]
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