and 1714
(Electronic Signatures in Global and National
Commerce Act).
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. Section 39.13 is amended by
adding the following new airworthiness
directive:
McDonnell Douglas: Docket 99NM90AD.
Applicability: Model DC9 and C9
(military) series airplanes, as listed in
McDonnell Douglas DC9 Service Bulletin
2457, Revision 1, dated March 12, 1980;
certificated in any category.
Note 1: This AD applies to each airplane
identified in the preceding applicability
provision, regardless of whether it has been
modified, altered, or repaired in the area
subject to the requirements of this AD. For
airplanes that have been modified, altered, or
repaired so that the performance of the
requirements of this AD is affected, the
owner/operator must request approval for an
alternative method of compliance in
accordance with paragraph (c) of this AD.
The request should include an assessment of
the effect of the modification, alteration, or
repair on the unsafe condition addressed by
this AD; and, if the unsafe condition has not
been eliminated, the request should include
specific proposed actions to address it.
Compliance: Required as indicated, unless
accomplished previously.
To prevent a short in the cross-tie relay,
which may result in in-flight electrical fires,
accomplish the following:
Modification
(a) Within 12 months after the effective
date of this AD, modify the electrical power
center in accordance with McDonnell
Douglas DC9 Service Bulletin 2457,
Revision 1, dated March 12, 1980, as
amended by Change Notification 2457 R1
CN2, dated June 24, 1988, and accomplish
the requirements specified in paragraph (a)(1)
or (a)(2) of this AD.
(1) Modify the Westinghouse alternating
current power relays, part number (P/N)
914F5673 (i.e., cross-tie relays, generator
relays, auxiliary power relays, and external
power relays), to a 4 configuration, in
accordance with Westinghouse Aerospace
Service Bulletin 75703, dated June 1977.
(2) Replace the Westinghouse alternating
current power relays, P/N 914F5673 or 4
with improved relays, P/N 9008D09, in
accordance with McDonnell Douglas DC9
Service Bulletin DC924156, dated March
31, 1995.
Overhaul
(b) Overhaul the Westinghouse alternating
current power relays, in accordance with
Westinghouse service bulletin 75703, dated
June 1977, at times specified in paragraph
(b)(1) or (b)(2) of this AD, as applicable.
(1) For airplanes equipped with
Westinghouse relay, P/N 914F5674, within
7,000 flight hours after accomplishing the
modification required by paragraph (a) of this
AD, overhaul the relay and repeat the
overhaul at intervals not to exceed 7,000
flight hours.
(2) For airplanes equipped with
Westinghouse relay, P/N 9008D09, within
12,000 flight hours after accomplishing the
modification required by paragraph (a) of this
AD, overhaul the relay and repeat the
overhaul at intervals not to exceed 12,000
flight hours.
Alternative Methods of Compliance
(c) An alternative method of compliance or
adjustment of the compliance time that
provides an acceptable level of safety may be
used if approved by the Manager, Los
Angeles Aircraft Certification Office (ACO),
FAA, Transport Airplane Directorate.
Operators shall submit their requests through
an appropriate FAA Principal Maintenance
Inspector, who may add comments and then
send it to the Manager, Los Angeles ACO.
Note 2: Information concerning the
existence of approved alternative methods of
compliance with this AD, if any, may be
obtained from the Los Angeles ACO.
Special Flight Permits
(d) Special flight permits may be issued in
accordance with sections 21.197 and 21.199
of the Federal Aviation Regulations (14 CFR
21.197 and 21.199) to operate the airplane to
a location where the requirements of this AD
can be accomplished.
Issued in Renton, Washington, on August
23, 1999.
Vi L. Lipski,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 9922395 Filed 82799; 8:45 am]
BILLING CODE 491013P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 1
Use of Electronic Signatures by
Customers, Participants and Clients of
Registrants
AGENCY
:
Commodity Futures Trading
Commission.
ACTION
:
Proposed rules.
SUMMARY
:
As part of its ongoing efforts
to facilitate the use of electronic
technology and media in the futures
industry, the Commodity Futures
Trading Commission (Commission or
CFTC) is proposing to adopt new
rules allowing the use of electronic
signatures in lieu of handwritten
signatures for certain purposes under
the Commissions regulations.
1
The
Commission seeks comment on these
rules and on issues relating generally to
the use of electronic media for
communications necessary to establish
an account for trading commodity
interests.
DATES
:
Comments must be received on
or before October 29, 1999.
ADDRESSES
:
Comments should be
mailed to Jean A. Webb, Secretary,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW, Washington, DC
20581; transmitted by facsimile to (202)
4185521; or transmitted electronically
to (secretary@cftc.gov). Reference
should be made to Internet Account-
Opening Process.
FOR FURTHER INFORMATION CONTACT
:
Lawrence B. Patent, Associate Chief
Counsel, or Christopher W. Cummings,
Special Counsel, Division of Trading
and Markets, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW,
Washington, DC 20581. Telephone (202)
4185430.
SUPPLEMENTARY INFORMATION
:
I. Introduction
A. Background
Notwithstanding the rapid pace at
which business transactions of all kinds
are being converted from paper-based to
electronic formats, the opening of
accounts to trade investment products
in the commodity futures and option
markets continues to involve exchange
of paperwork between the broker and
the customer. Strictly speaking, there is
nothing in the Commodity Exchange
Act (the Act)
2
and the Commissions
regulations issued thereunder that
prevents a futures commission merchant
(FCM) or introducing broker (IB)
from opening electronically a customer
account. There are ancillary rules,
however, that effectively require the
parties to exchange paper, such as the
requirement that the FCM or IB obtain
a signed acknowledgment that the
customer has received the required risk
disclosure statement,
3
or the
requirement that an agreement to
arbitrate disputes be entered into by a
separate signature from that which
executes the account agreement.
4
In the
current session of Congress, several bills
have been introduced to authorize the
use of electronic signatures.
5
In
addition, the National Conference of
Commissioners on Uniform State Laws
has prepared a Uniform Electronic
Transactions Act (UETA) with the
goal that it will be adopted by the
States, giving legal certainty to
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Federal Register / Vol. 64, No. 167 / Monday, August 30, 1999 / Proposed Rules
6
See Rules 4.21(b) and 4.31(b), and 62 FR 39104,
39110 (July 22, 1997).
7
Rule 1.10(d)(4). See 62 FR 10441 (March 7,
1997).
8
As is discussed more fully below, the
Commission also is proposing to define in new Rule
1.3(tt) the term electronic signature.
9
A customer is considered sophisticated for
purposes of Rule 1.55(f) if it is: a bank or trust
company; a savings association or credit union; an
insurance company; an SEC-registered investment
company or a foreign investment company with
total assets in excess of $5 million; a pool operated
by a registered (or foreign registered) or exempt
CPO; a corporation or other entity with total assets
in excess of $10 million or a net worth of $1
million; an employee benefit plan subject to ERISA
(or foreign person performing similar functions and
subject to foreign regulation) with assets in excess
of $5 million; a registered broker-dealer; a registered
FCM, floor broker or floor trader; or a natural
person with total assets exceeding $10 million.
10
Rule 180.3 also applies to registered floor
brokers, CPOs and CTAs and their respective
associated persons (APs).
electronic commerce, particularly from
the perspective of contract law.
Over the past several years, the
Commission has modified or made
exception to rule provisions that were
adopted originally with paper-based
transactions in mind in order to permit
registrants to comply with those
provisions in the context of electronic
commerce. For example, as a result of
such actions, the Commission now
permits commodity pool operators
(CPOs) and commodity trading
advisors (CTAs) who deliver their
prescribed Disclosure Documents by
electronic means to obtain the required
acknowledgment of receipt by electronic
means that use a unique identifier to
confirm the identity of the recipient,
including such means as a personal
identification number, or PIN.
6
The
Commission has accepted the use of
PINs in other contexts as well, such as
in the attestation of financial reports
that FCMs are required to file with self-
regulatory organizations.
7
Recently, the Division was asked to
interpret Commission rules to permit an
FCM to accept, in lieu of a prospective
customers manually signed, paper
acknowledgment that he received and
understood the risk disclosure statement
specified in Rule 1.55, an electronic
mail message to that effect on which the
customer has typed his name. The
Commission believes that customers