Certifications and Exemptions Under the International Regulations for Preventing Collisions at Sea, 1972, 63485-63486 [E7-22008]

Download as PDF Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Rules and Regulations commitments that are accounted for at fair value through earnings under generally accepted accounting principles. Note: The text of SAB 109 will not appear in the Code of Federal Regulations. Topic 5: Miscellaneous Accounting * * * * * mstockstill on PROD1PC66 with RULES DD. Written Loan Commitments Recorded at Fair Value Through Earnings Facts: Bank A enters into a loan commitment with a customer to originate a mortgage loan at a specified rate. As part of this written loan commitment, Bank A expects to receive future net cash flows related to servicing rights from servicing fees (included in the loan’s interest rate or otherwise), late charges, and other ancillary sources, or from selling the servicing rights to a third party. If Bank A intends to sell the mortgage loan after it is funded, pursuant to paragraph 6 of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by FASB Statement No. 149, Amendment of Statement 133 on Derivative Instruments and Hedging Activities (‘‘Statement 133’’), the written loan commitment is accounted for as a derivative instrument and recorded at fair value through earnings (referred to hereafter as a ‘‘derivative loan commitment’’). If Bank A does not intend to sell the mortgage loan after it is funded, the written loan commitment is not accounted for as a derivative under Statement 133. However, paragraph 7(c) of FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (‘‘Statement 159’’), permits Bank A to record the written loan commitment at fair value through earnings (referred to hereafter as a ‘‘written loan commitment’’). Pursuant to Statement 159, the fair value measurement for a written loan commitment would include the expected net future cash flows related to the associated servicing of the loan. Question 1: In measuring the fair value of a derivative loan commitment accounted for under Statement 133, should Bank A include the expected net future cash flows related to the associated servicing of the loan? Interpretive Response: Yes. The staff believes that, consistent with the recently issued guidance in FASB Statement No. 156, Accounting for Servicing of Financial Assets VerDate Aug<31>2005 18:07 Nov 08, 2007 Jkt 214001 (‘‘Statement 156’’),1 and Statement 159, the expected net future cash flows related to the associated servicing of the loan should be included in the fair value measurement of a derivative loan commitment. The expected net future cash flows related to the associated servicing of the loan that are included in the fair value measurement of a derivative loan commitment or a written loan commitment should be determined in the same manner that the fair value of a recognized servicing asset or liability is measured under FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, as amended by Statement 156 (‘‘Statement 140’’). However, as discussed in paragraphs 61 and 62 of Statement 140, a separate and distinct servicing asset or liability is not recognized for accounting purposes until the servicing rights have been contractually separated from the underlying loan by sale or securitization of the loan with servicing retained. The views in Question 1 apply to all loan commitments that are accounted for at fair value through earnings. However, for purposes of electing fair value accounting pursuant to Statement 159, the views in Question 1 are not intended to be applied by analogy to any other instrument that contains a nonfinancial element. Question 2: In measuring the fair value of a derivative loan commitment accounted for under Statement 133 or a written loan commitment accounted for under Statement 159, should Bank A include the expected net future cash flows related to internally-developed intangible assets? Interpretive Response: No. The staff does not believe that internallydeveloped intangible assets (such as customer relationship intangible assets) should be recorded as part of the fair value of a derivative loan commitment or a written loan commitment. Such nonfinancial elements of value should not be considered a component of the related instrument. Recognition of such assets would only be appropriate in a third-party transaction. For example, in the purchase of a portfolio of derivative loan commitments in a business combination, a customer relationship intangible asset is recorded separately from the fair value of such loan commitments. Similarly, when an entity purchases a credit card portfolio, EITF Issue No. 88–20, Difference between 1 Statement 156 permits an entity to subsequently measure recognized servicing assets and servicing liabilities (which are nonfinancial instruments) at fair value through earnings. PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 63485 Initial Investment and Principal Amount of Loans in a Purchased Credit Card Portfolio, requires an allocation of the purchase price to a separately recorded cardholder relationship intangible asset. The view in Question 2 applies to all loan commitments that are accounted for at fair value through earnings. [FR Doc. E7–21927 Filed 11–8–07; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF DEFENSE Department of the Navy 32 CFR Part 706 Certifications and Exemptions Under the International Regulations for Preventing Collisions at Sea, 1972 Department of the Navy, DoD. Final rule. AGENCY: ACTION: SUMMARY: The Department of the Navy is amending its certifications and exemptions under the International Regulations for Preventing Collisions at Sea, 1972 (72 COLREGS), to reflect that the Deputy Assistant Judge Advocate General (Admiralty and Maritime Law) has determined that USS NORTH CAROLINA (SSN 777) is a vessel of the Navy which, due to its special construction and purpose, cannot fully comply with certain provisions of the 72 COLREGS without interfering with its special function as a naval ship. The intended effect of this rule is to warn mariners in waters where 72 COLREGS apply. DATES: This rule is effective November 9, 2007 and is applicable to October 11, 2007. FOR FURTHER INFORMATION CONTACT: Commander Gregg A. Cervi, JAGC, U.S. Navy, Deputy Assistant Judge Advocate General (Admiralty and Maritime Law), Office of the Judge Advocate General, Department of the Navy, 1322 Patterson Ave., SE., Suite 3000, Washington Navy Yard, DC 20374–5066, telephone 202– 685–5040. SUPPLEMENTARY INFORMATION: Pursuant to the authority granted in 33 U.S.C. 1605, the Department of the Navy amends 32 CFR part 706. This amendment provides notice that the Deputy Assistant Judge Advocate General (Admiralty and Maritime Law), under authority delegated by the Secretary of the Navy, has certified that USS NORTH CAROLINA (SSN 777) is a vessel of the Navy which, due to its special construction and purpose, cannot fully comply with the following specific provisions of 72 COLREGS E:\FR\FM\09NOR1.SGM 09NOR1 63486 Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Rules and Regulations without interfering with its special function as a naval ship: Annex I, paragraph 2(a)(i), pertaining to the height placement of the masthead light above the hull; Annex I, paragraph 2(k), pertaining to the height and relative positions of the anchor lights; Annex I, paragraph 3(b), pertaining to the location of the sidelights; and Rule 21(c), pertaining to the location and arc of visibility of the sternlight. The Deputy Assistant Judge Advocate General (Admiralty and Maritime Law) has also certified that the lights involved are located in closest possible compliance with the applicable 72 COLREGS requirements. Moreover, it has been determined, in accordance with 32 CFR parts 296 and 701, that publication of this amendment for public comment prior to adoption is impracticable, unnecessary, and contrary to public interest since it is based on technical findings that the placement of lights on this vessel in a manner differently from that prescribed herein will adversely affect the vessel’s ability to perform its military functions. List of Subjects in 32 CFR Part 706 PART 706—CERTIFICATIONS AND EXEMPTIONS UNDER THE INTERNATIONAL REGULATIONS FOR PREVENTING COLLISIONS AT SEA, 1972 1. The authority citation for part 706 continues to read: I Authority: 33 U.S.C. 1605. Marine safety, Navigation (water), and Vessels. 2. Table One of § 706.2 is amended by adding, in numerical order, the following entry for USS NORTH CAROLINA: For the reasons set forth in the preamble, amend part 706 of title 32 of the Code of Federal Regulations as follows: § 706.2 Certifications of the Secretary of the Navy under Executive Order 11964 and 33 U.S.C. 1605. I I * * * * * TABLE ONE Vessel Number * * * * * USS NORTH CAROLINA ..................................................................................................................................... * * * 3. Table Three of § 706.2 is amended by adding, in numerical order, the * * SSN 777 * * 2.90 * * § 706.2 Certifications of the Secretary of the Navy under Executive Order 11964 and 33 U.S.C. 1605. following entry for USS NORTH CAROLINA: I Distance in meters of forward masthead light below minimum required height. § 2(a)(i), Annex I * * * * * TABLE THREE Vessel * USS NORTH CAROLINA. Masthead lights arc of visibility; rule 21(a) Number * SSN 777 * Meets Requirement. * Stern light arc of visibility; rule 21(c) Side lights distance inboard of ship’s sides in meters 3(b) annex 1 * 205.6° Side lights arc of visibility; rule 21(b) 4.37 * Meets Requirement. * Approved: October 11, 2007. Gregg A. Cervi, Commander, JAGC, U.S. Navy Deputy Assistant Judge Advocate General (Admiralty and Maritime Law). [FR Doc. E7–22008 Filed 11–8–07; 8:45 am] * * mstockstill on PROD1PC66 with RULES 2.8 * * 0.30 below. * Notice of temporary deviation from regulations; request for comments. ACTION: Coast Guard SUMMARY: The Commander, Eighth Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the State Route 433 (S433) Bridge across Bonfouca Bayou, mile 7.0, at Slidell, St. Tammany Parish, Louisiana. This deviation will test a change to the drawbridge operation schedule to determine whether a permanent change to the schedule is needed. 33 CFR Part 117 Drawbridge Operation Regulations; Bonfouca Bayou, Slidell, LA AGENCY: Jkt 214001 * Anchor lights relationship of aft light to forward light in meters 2(K) annex 1 DEPARTMENT OF HOMELAND SECURITY [CGD08–07–034] 18:07 Nov 08, 2007 Forward anchor light, height above hull in meters; 2(K) annex 1 11.05 * BILLING CODE 3810–FF–P VerDate Aug<31>2005 Stern light, distance forward of stern in meters; rule 21(c) PO 00000 Coast Guard, DHS. Frm 00042 Fmt 4700 Sfmt 4700 E:\FR\FM\09NOR1.SGM 09NOR1

Agencies

[Federal Register Volume 72, Number 217 (Friday, November 9, 2007)]
[Rules and Regulations]
[Pages 63485-63486]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22008]


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DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706


Certifications and Exemptions Under the International Regulations 
for Preventing Collisions at Sea, 1972

AGENCY: Department of the Navy, DoD.

ACTION: Final rule.

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

SUMMARY: The Department of the Navy is amending its certifications and 
exemptions under the International Regulations for Preventing 
Collisions at Sea, 1972 (72 COLREGS), to reflect that the Deputy 
Assistant Judge Advocate General (Admiralty and Maritime Law) has 
determined that USS NORTH CAROLINA (SSN 777) is a vessel of the Navy 
which, due to its special construction and purpose, cannot fully comply 
with certain provisions of the 72 COLREGS without interfering with its 
special function as a naval ship. The intended effect of this rule is 
to warn mariners in waters where 72 COLREGS apply.

DATES: This rule is effective November 9, 2007 and is applicable to 
October 11, 2007.

FOR FURTHER INFORMATION CONTACT: Commander Gregg A. Cervi, JAGC, U.S. 
Navy, Deputy Assistant Judge Advocate General (Admiralty and Maritime 
Law), Office of the Judge Advocate General, Department of the Navy, 
1322 Patterson Ave., SE., Suite 3000, Washington Navy Yard, DC 20374-
5066, telephone 202-685-5040.

SUPPLEMENTARY INFORMATION: Pursuant to the authority granted in 33 
U.S.C. 1605, the Department of the Navy amends 32 CFR part 706. This 
amendment provides notice that the Deputy Assistant Judge Advocate 
General (Admiralty and Maritime Law), under authority delegated by the 
Secretary of the Navy, has certified that USS NORTH CAROLINA (SSN 777) 
is a vessel of the Navy which, due to its special construction and 
purpose, cannot fully comply with the following specific provisions of 
72 COLREGS

[[Page 63486]]

without interfering with its special function as a naval ship: Annex I, 
paragraph 2(a)(i), pertaining to the height placement of the masthead 
light above the hull; Annex I, paragraph 2(k), pertaining to the height 
and relative positions of the anchor lights; Annex I, paragraph 3(b), 
pertaining to the location of the sidelights; and Rule 21(c), 
pertaining to the location and arc of visibility of the sternlight. The 
Deputy Assistant Judge Advocate General (Admiralty and Maritime Law) 
has also certified that the lights involved are located in closest 
possible compliance with the applicable 72 COLREGS requirements.
    Moreover, it has been determined, in accordance with 32 CFR parts 
296 and 701, that publication of this amendment for public comment 
prior to adoption is impracticable, unnecessary, and contrary to public 
interest since it is based on technical findings that the placement of 
lights on this vessel in a manner differently from that prescribed 
herein will adversely affect the vessel's ability to perform its 
military functions.

List of Subjects in 32 CFR Part 706

    Marine safety, Navigation (water), and Vessels.

0
For the reasons set forth in the preamble, amend part 706 of title 32 
of the Code of Federal Regulations as follows:

PART 706--CERTIFICATIONS AND EXEMPTIONS UNDER THE INTERNATIONAL 
REGULATIONS FOR PREVENTING COLLISIONS AT SEA, 1972

0
1. The authority citation for part 706 continues to read:

    Authority: 33 U.S.C. 1605.


0
2. Table One of Sec.  706.2 is amended by adding, in numerical order, 
the following entry for USS NORTH CAROLINA:


Sec.  706.2  Certifications of the Secretary of the Navy under 
Executive Order 11964 and 33 U.S.C. 1605.

* * * * *

                                Table One
------------------------------------------------------------------------
                                                      Distance in meters
                                                          of forward
                                                        masthead light
             Vessel                     Number           below minimum
                                                       required height.
                                                        Sec.   2(a)(i),
                                                            Annex I
------------------------------------------------------------------------
 
                              * * * * * * *
USS NORTH CAROLINA.............  SSN 777                           2.90
 
                              * * * * * * *
------------------------------------------------------------------------


0
3. Table Three of Sec.  706.2 is amended by adding, in numerical order, 
the following entry for USS NORTH CAROLINA:


Sec.  706.2  Certifications of the Secretary of the Navy under 
Executive Order 11964 and 33 U.S.C. 1605.

* * * * *

                                                                                           Table Three
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                                                                                                                                                                                 Anchor lights
                                                                                                                       Side lights        Stern light,       Forward  anchor    relationship of
                                                        Masthead lights   Side lights arc of   Stern light arc of   distance inboard    distance  forward     light, height       aft light to
             Vessel                     Number        arc of visibility;   visibility; rule     visibility; rule   of ship's sides in      of stern in        above hull in     forward light in
                                                          rule 21(a)             21(b)               21(c)          meters 3(b) annex  meters; rule 21(c)  meters; 2(K) annex  meters 2(K) annex
                                                                                                                            1                                       1                  1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                          * * * * * * *
USS NORTH CAROLINA.............  SSN 777              Meets Requirement.  Meets Requirement.  205.6[deg].........  4.37..............  11.05.............  2.8...............  0.30 below.
 
                                                                                          * * * * * * *
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    Approved: October 11, 2007.
Gregg A. Cervi,
Commander, JAGC, U.S. Navy Deputy Assistant Judge Advocate General 
(Admiralty and Maritime Law).
 [FR Doc. E7-22008 Filed 11-8-07; 8:45 am]
BILLING CODE 3810-FF-P