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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 14:14:1.0.1.3.12.0.19.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | § 23.1457 Cockpit voice recorders. | FAA | (a) Each cockpit voice recorder required by the operating rules of this chapter must be approved and must be installed so that it will record the following: (1) Voice communications transmitted from or received in the airplane by radio. (2) Voice communications of flightcrew members on the flight deck. (3) Voice communications of flightcrew members on the flight deck, using the airplane's interphone system. (4) Voice or audio signals identifying navigation or approach aids introduced into a headset or speaker. (5) Voice communications of flightcrew members using the passenger loudspeaker system, if there is such a system and if the fourth channel is available in accordance with the requirements of paragraph (c)(4)(ii) of this section. (6) If datalink communication equipment is installed, all datalink communications, using an approved data message set. Datalink messages must be recorded as the output signal from the communications unit that translates the signal into usable data. (b) The recording requirements of paragraph (a)(2) of this section must be met by installing a cockpit-mounted area microphone, located in the best position for recording voice communications originating at the first and second pilot stations and voice communications of other crewmembers on the flight deck when directed to those stations. The microphone must be so located and, if necessary, the preamplifiers and filters of the recorder must be so adjusted or supplemented, so that the intelligibility of the recorded communications is as high as practicable when recorded under flight cockpit noise conditions and played back. Repeated aural or visual playback of the record may be used in evaluating intelligibility. (c) Each cockpit voice recorder must be installed so that the part of the communication or audio signals specified in paragraph (a) of this section obtained from each of the following sources is recorded on a separate channel: (1) For the first channel, from each boom, mask, or handheld microphone, headset, or speaker use… | ||||||
| 14:14:1.0.1.3.12.0.19.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | § 23.1459 Flight data recorders. | FAA | (a) Each flight recorder required by the operating rules of this chapter must be installed so that— (1) It is supplied with airspeed, altitude, and directional data obtained from sources that meet the aircraft level system requirements and the functionality specified in § 23.2500; (2) The vertical acceleration sensor is rigidly attached, and located longitudinally either within the approved center of gravity limits of the airplane, or at a distance forward or aft of these limits that does not exceed 25 percent of the airplane's mean aerodynamic chord; (3)(i) It receives its electrical power from the bus that provides the maximum reliability for operation of the flight data recorder without jeopardizing service to essential or emergency loads; (ii) It remains powered for as long as possible without jeopardizing emergency operation of the airplane; (4) There is an aural or visual means for preflight checking of the recorder for proper recording of data in the storage medium; (5) Except for recorders powered solely by the engine-driven electrical generator system, there is an automatic means to simultaneously stop a recorder that has a data erasure feature and prevent each erasure feature from functioning, within 10 minutes after crash impact; (6) Any single electrical failure external to the recorder does not disable both the cockpit voice recorder and the flight data recorder; and (7) It is in a separate container from the cockpit voice recorder when both are required. If used to comply with only the flight data recorder requirements, a combination unit may be installed. If a combination unit is installed as a cockpit voice recorder to comply with § 23.1457(e)(2), a combination unit must be used to comply with this flight data recorder requirement. (b) Each non-ejectable record container must be located and mounted so as to minimize the probability of container rupture resulting from crash impact and subsequent damage to the record from fire. In meeting this requirement, the record container must be locat… | ||||||
| 14:14:1.0.1.3.12.0.19.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | § 23.1529 Instructions for continued airworthiness. | FAA | The applicant must prepare Instructions for Continued Airworthiness, in accordance with appendix A of this part, that are acceptable to the Administrator. The instructions may be incomplete at type certification if a program exists to ensure their completion prior to delivery of the first airplane or issuance of a standard certificate of airworthiness, whichever occurs later. | ||||||
| 14:14:1.0.1.3.12.1.19.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | A | Subpart A—General | § 23.2000 Applicability and definitions. | FAA | (a) This part prescribes airworthiness standards for the issuance of type certificates, and changes to those certificates, for airplanes in the normal category. (b) For the purposes of this part, the following definition applies: Continued safe flight and landing means an airplane is capable of continued controlled flight and landing, possibly using emergency procedures, without requiring exceptional pilot skill or strength. Upon landing, some airplane damage may occur as a result of a failure condition. | ||||
| 14:14:1.0.1.3.12.1.19.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | A | Subpart A—General | § 23.2005 Certification of normal category airplanes. | FAA | (a) Certification in the normal category applies to airplanes with a passenger-seating configuration of 19 or less and a maximum certificated takeoff weight of 19,000 pounds or less. (b) Airplane certification levels are: (1) Level 1—for airplanes with a maximum seating configuration of 0 to 1 passengers. (2) Level 2—for airplanes with a maximum seating configuration of 2 to 6 passengers. (3) Level 3—for airplanes with a maximum seating configuration of 7 to 9 passengers. (4) Level 4—for airplanes with a maximum seating configuration of 10 to 19 passengers. (c) Airplane performance levels are: (1) Low speed—for airplanes with a V NO and V MO ≤ 250 Knots Calibrated Airspeed (KCAS) and a M MO ≤ 0.6. (2) High speed—for airplanes with a V NO or V MO > 250 KCAS or a M MO > 0.6. (d) Airplanes not certified for aerobatics may be used to perform any maneuver incident to normal flying, including— (1) Stalls (except whip stalls); and (2) Lazy eights, chandelles, and steep turns, in which the angle of bank is not more than 60 degrees. (e) Airplanes certified for aerobatics may be used to perform maneuvers without limitations, other than those limitations established under subpart G of this part. | ||||
| 14:14:1.0.1.3.12.1.19.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | A | Subpart A—General | § 23.2010 Accepted means of compliance. | FAA | (a) An applicant must comply with this part using a means of compliance, which may include consensus standards, accepted by the Administrator. (b) An applicant requesting acceptance of a means of compliance must provide the means of compliance to the FAA in a form and manner acceptable to the Administrator. | ||||
| 14:14:1.0.1.3.12.2.19.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2100 Weight and center of gravity. | FAA | (a) The applicant must determine limits for weights and centers of gravity that provide for the safe operation of the airplane. (b) The applicant must comply with each requirement of this subpart at critical combinations of weight and center of gravity within the airplane's range of loading conditions using tolerances acceptable to the Administrator. (c) The condition of the airplane at the time of determining its empty weight and center of gravity must be well defined and easily repeatable. | ||||
| 14:14:1.0.1.3.12.2.19.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2105 Performance data. | FAA | (a) Unless otherwise prescribed, an airplane must meet the performance requirements of this subpart in— (1) Still air and standard atmospheric conditions at sea level for all airplanes; and (2) Ambient atmospheric conditions within the operating envelope for levels 1 and 2 high-speed and levels 3 and 4 airplanes. (b) Unless otherwise prescribed, the applicant must develop the performance data required by this subpart for the following conditions: (1) Airport altitudes from sea level to 10,000 feet (3,048 meters); and (2) Temperatures above and below standard day temperature that are within the range of operating limitations, if those temperatures could have a negative effect on performance. (c) The procedures used for determining takeoff and landing distances must be executable consistently by pilots of average skill in atmospheric conditions expected to be encountered in service. (d) Performance data determined in accordance with paragraph (b) of this section must account for losses due to atmospheric conditions, cooling needs, and other demands on power sources. | ||||
| 14:14:1.0.1.3.12.2.19.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2110 Stall speed. | FAA | The applicant must determine the airplane stall speed or the minimum steady flight speed for each flight configuration used in normal operations, including takeoff, climb, cruise, descent, approach, and landing. The stall speed or minimum steady flight speed determination must account for the most adverse conditions for each flight configuration with power set at— (a) Idle or zero thrust for propulsion systems that are used primarily for thrust; and (b) A nominal thrust for propulsion systems that are used for thrust, flight control, and/or high-lift systems. | ||||
| 14:14:1.0.1.3.12.2.19.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2115 Takeoff performance. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) The applicant must determine airplane takeoff performance accounting for— (1) Stall speed safety margins; (2) Minimum control speeds; and (3) Climb gradients. (b) For single engine airplanes and levels 1, 2, and 3 low-speed multiengine airplanes, takeoff performance includes the determination of ground roll and initial climb distance to 50 feet (15 meters) above the takeoff surface. (c) For levels 1, 2, and 3 high-speed multiengine airplanes, and level 4 multiengine airplanes, takeoff performance includes a determination of the following distances after a sudden critical loss of thrust— (1) An aborted takeoff at critical speed; (2) Ground roll and initial climb to 35 feet (11 meters) above the takeoff surface; and (3) Net takeoff flight path. | |||
| 14:14:1.0.1.3.12.2.19.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2120 Climb requirements. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | The design must comply with the following minimum climb performance out of ground effect: (a) With all engines operating and in the initial climb configuration(s)— (1) For levels 1 and 2 low-speed airplanes, a climb gradient of 8.3 percent for landplanes and 6.7 percent for seaplanes and amphibians; and (2) For levels 1 and 2 high-speed airplanes, all level 3 airplanes, and level 4 single-engines a climb gradient after takeoff of 4 percent. (b) After a critical loss of thrust on multiengine airplanes— (1) For levels 1 and 2 low-speed airplanes that do not meet single-engine crashworthiness requirements, a climb gradient of 1.5 percent at a pressure altitude of 5,000 feet (1,524 meters) in the cruise configuration(s); (2) For levels 1 and 2 high-speed airplanes, and level 3 low-speed airplanes, a 1 percent climb gradient at 400 feet (122 meters) above the takeoff surface with the landing gear retracted and flaps in the takeoff configuration(s); and (3) For level 3 high-speed airplanes and all level 4 airplanes, a 2 percent climb gradient at 400 feet (122 meters) above the takeoff surface with the landing gear retracted and flaps in the approach configuration(s). (c) For a balked landing, a climb gradient of 3 percent without creating undue pilot workload with the landing gear extended and flaps in the landing configuration(s). | |||
| 14:14:1.0.1.3.12.2.19.6 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2125 Climb information. | FAA | (a) The applicant must determine climb performance at each weight, altitude, and ambient temperature within the operating limitations— (1) For all single-engine airplanes; (2) For levels 1 and 2 high-speed multiengine airplanes and level 3 multiengine airplanes, following a critical loss of thrust on takeoff in the initial climb configuration; and (3) For all multiengine airplanes, during the enroute phase of flight with all engines operating and after a critical loss of thrust in the cruise configuration. (b) The applicant must determine the glide performance for single-engine airplanes after a complete loss of thrust. | ||||
| 14:14:1.0.1.3.12.2.19.7 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2130 Landing. | FAA | The applicant must determine the following, for standard temperatures at critical combinations of weight and altitude within the operational limits: (a) The distance, starting from a height of 50 feet (15 meters) above the landing surface, required to land and come to a stop. (b) The approach and landing speeds, configurations, and procedures, which allow a pilot of average skill to land within the published landing distance consistently and without causing damage or injury, and which allow for a safe transition to the balked landing conditions of this part accounting for: (1) Stall speed safety margin; and (2) Minimum control speeds. | ||||
| 14:14:1.0.1.3.12.2.20.10 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2145 Stability. | FAA | (a) Airplanes not certified for aerobatics must— (1) Have static longitudinal, lateral, and directional stability in normal operations; (2) Have dynamic short period and Dutch roll stability in normal operations; and (3) Provide stable control force feedback throughout the operating envelope. (b) No airplane may exhibit any divergent longitudinal stability characteristic so unstable as to increase the pilot's workload or otherwise endanger the airplane and its occupants. | ||||
| 14:14:1.0.1.3.12.2.20.11 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2150 Stall characteristics, stall warning, and spins. | FAA | (a) The airplane must have controllable stall characteristics in straight flight, turning flight, and accelerated turning flight with a clear and distinctive stall warning that provides sufficient margin to prevent inadvertent stalling. (b) Single-engine airplanes, not certified for aerobatics, must not have a tendency to inadvertently depart controlled flight. (c) Levels 1 and 2 multiengine airplanes, not certified for aerobatics, must not have a tendency to inadvertently depart controlled flight from thrust asymmetry after a critical loss of thrust. (d) Airplanes certified for aerobatics that include spins must have controllable stall characteristics and the ability to recover within one and one-half additional turns after initiation of the first control action from any point in a spin, not exceeding six turns or any greater number of turns for which certification is requested, while remaining within the operating limitations of the airplane. (e) Spin characteristics in airplanes certified for aerobatics that includes spins must recover without exceeding limitations and may not result in unrecoverable spins— (1) With any typical use of the flight or engine power controls; or (2) Due to pilot disorientation or incapacitation. | ||||
| 14:14:1.0.1.3.12.2.20.12 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2155 Ground and water handling characteristics. | FAA | For airplanes intended for operation on land or water, the airplane must have controllable longitudinal and directional handling characteristics during taxi, takeoff, and landing operations. | ||||
| 14:14:1.0.1.3.12.2.20.13 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2160 Vibration, buffeting, and high-speed characteristics. | FAA | (a) Vibration and buffeting, for operations up to V D /M D, must not interfere with the control of the airplane or cause excessive fatigue to the flightcrew. Stall warning buffet within these limits is allowable. (b) For high-speed airplanes and all airplanes with a maximum operating altitude greater than 25,000 feet (7,620 meters) pressure altitude, there must be no perceptible buffeting in cruise configuration at 1g and at any speed up to V MO /M MO , except stall buffeting. (c) For high-speed airplanes, the applicant must determine the positive maneuvering load factors at which the onset of perceptible buffet occurs in the cruise configuration within the operational envelope. Likely inadvertent excursions beyond this boundary must not result in structural damage. (d) High-speed airplanes must have recovery characteristics that do not result in structural damage or loss of control, beginning at any likely speed up to V MO /M MO , following— (1) An inadvertent speed increase; and (2) A high-speed trim upset for airplanes where dynamic pressure can impair the longitudinal trim system operation. | ||||
| 14:14:1.0.1.3.12.2.20.14 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2165 Performance and flight characteristics requirements for flight in icing conditions. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) An applicant who requests certification for flight in icing conditions defined in part 1 of appendix C to part 25 of this chapter, or an applicant who requests certification for flight in these icing conditions and any additional atmospheric icing conditions, must show the following in the icing conditions for which certification is requested under normal operation of the ice protection system(s): (1) Compliance with each requirement of this subpart, except those applicable to spins and any that must be demonstrated at speeds in excess of— (i) 250 KCAS; (ii) V MO /M MO or V NE ; or (iii) A speed at which the applicant demonstrates the airframe will be free of ice accretion. (2) The means by which stall warning is provided to the pilot for flight in icing conditions and non-icing conditions is the same. (b) If an applicant requests certification for flight in icing conditions, the applicant must provide a means to detect any icing conditions for which certification is not requested and show the airplane's ability to avoid or exit those conditions. (c) The applicant must develop an operating limitation to prohibit intentional flight, including takeoff and landing, into icing conditions for which the airplane is not certified to operate. | |||
| 14:14:1.0.1.3.12.2.20.8 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2135 Controllability. | FAA | (a) The airplane must be controllable and maneuverable, without requiring exceptional piloting skill, alertness, or strength, within the operating envelope— (1) At all loading conditions for which certification is requested; (2) During all phases of flight; (3) With likely reversible flight control or propulsion system failure; and (4) During configuration changes. (b) The airplane must be able to complete a landing without causing substantial damage or serious injury using the steepest approved approach gradient procedures and providing a reasonable margin below V ref or above approach angle of attack. (c) V MC is the calibrated airspeed at which, following the sudden critical loss of thrust, it is possible to maintain control of the airplane. For multiengine airplanes, the applicant must determine V MC, if applicable, for the most critical configurations used in takeoff and landing operations. (d) If the applicant requests certification of an airplane for aerobatics, the applicant must demonstrate those aerobatic maneuvers for which certification is requested and determine entry speeds. | ||||
| 14:14:1.0.1.3.12.2.20.9 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | B | Subpart B—Flight | § 23.2140 Trim. | FAA | (a) The airplane must maintain lateral and directional trim without further force upon, or movement of, the primary flight controls or corresponding trim controls by the pilot, or the flight control system, under the following conditions: (1) For levels 1, 2, and 3 airplanes in cruise. (2) For level 4 airplanes in normal operations. (b) The airplane must maintain longitudinal trim without further force upon, or movement of, the primary flight controls or corresponding trim controls by the pilot, or the flight control system, under the following conditions: (1) Climb. (2) Level flight. (3) Descent. (4) Approach. (c) Residual control forces must not fatigue or distract the pilot during normal operations of the airplane and likely abnormal or emergency operations, including a critical loss of thrust on multiengine airplanes. | ||||
| 14:14:1.0.1.3.12.3.21.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2200 Structural design envelope. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | The applicant must determine the structural design envelope, which describes the range and limits of airplane design and operational parameters for which the applicant will show compliance with the requirements of this subpart. The applicant must account for all airplane design and operational parameters that affect structural loads, strength, durability, and aeroelasticity, including: (a) Structural design airspeeds, landing descent speeds, and any other airspeed limitation at which the applicant must show compliance to the requirements of this subpart. The structural design airspeeds must— (1) Be sufficiently greater than the stalling speed of the airplane to safeguard against loss of control in turbulent air; and (2) Provide sufficient margin for the establishment of practical operational limiting airspeeds. (b) Design maneuvering load factors not less than those, which service history shows, may occur within the structural design envelope. (c) Inertial properties including weight, center of gravity, and mass moments of inertia, accounting for— (1) Each critical weight from the airplane empty weight to the maximum weight; and (2) The weight and distribution of occupants, payload, and fuel. (d) Characteristics of airplane control systems, including range of motion and tolerances for control surfaces, high-lift devices, or other moveable surfaces. (e) Each critical altitude up to the maximum altitude. | |||
| 14:14:1.0.1.3.12.3.21.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2205 Interaction of systems and structures. | FAA | For airplanes equipped with systems that modify structural performance, alleviate the impact of this subpart's requirements, or provide a means of compliance with this subpart, the applicant must account for the influence and failure of these systems when showing compliance with the requirements of this subpart. | ||||
| 14:14:1.0.1.3.12.3.21.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2210 Structural design loads. | FAA | (a) The applicant must: (1) Determine the applicable structural design loads resulting from likely externally or internally applied pressures, forces, or moments that may occur in flight, ground and water operations, ground and water handling, and while the airplane is parked or moored. (2) Determine the loads required by paragraph (a)(1) of this section at all critical combinations of parameters, on and within the boundaries of the structural design envelope. (b) The magnitude and distribution of the applicable structural design loads required by this section must be based on physical principles. | ||||
| 14:14:1.0.1.3.12.3.21.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2215 Flight load conditions. | FAA | The applicant must determine the structural design loads resulting from the following flight conditions: (a) Atmospheric gusts where the magnitude and gradient of these gusts are based on measured gust statistics. (b) Symmetric and asymmetric maneuvers. (c) Asymmetric thrust resulting from the failure of a powerplant unit. | ||||
| 14:14:1.0.1.3.12.3.21.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2220 Ground and water load conditions. | FAA | The applicant must determine the structural design loads resulting from taxi, takeoff, landing, and handling conditions on the applicable surface in normal and adverse attitudes and configurations. | ||||
| 14:14:1.0.1.3.12.3.21.6 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2225 Component loading conditions. | FAA | The applicant must determine the structural design loads acting on: (a) Each engine mount and its supporting structure such that both are designed to withstand loads resulting from— (1) Powerplant operation combined with flight gust and maneuver loads; and (2) For non-reciprocating powerplants, sudden powerplant stoppage. (b) Each flight control and high-lift surface, their associated system and supporting structure resulting from— (1) The inertia of each surface and mass balance attachment; (2) Flight gusts and maneuvers; (3) Pilot or automated system inputs; (4) System induced conditions, including jamming and friction; and (5) Taxi, takeoff, and landing operations on the applicable surface, including downwind taxi and gusts occurring on the applicable surface. (c) A pressurized cabin resulting from the pressurization differential— (1) From zero up to the maximum relief pressure combined with gust and maneuver loads; (2) From zero up to the maximum relief pressure combined with ground and water loads if the airplane may land with the cabin pressurized; and (3) At the maximum relief pressure multiplied by 1.33, omitting all other loads. | ||||
| 14:14:1.0.1.3.12.3.21.7 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2230 Limit and ultimate loads. | FAA | The applicant must determine— (a) The limit loads, which are equal to the structural design loads unless otherwise specified elsewhere in this part; and (b) The ultimate loads, which are equal to the limit loads multiplied by a 1.5 factor of safety unless otherwise specified elsewhere in this part. | ||||
| 14:14:1.0.1.3.12.3.22.10 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2245 Aeroelasticity. | FAA | (a) The airplane must be free from flutter, control reversal, and divergence— (1) At all speeds within and sufficiently beyond the structural design envelope; (2) For any configuration and condition of operation; (3) Accounting for critical degrees of freedom; and (4) Accounting for any critical failures or malfunctions. (b) The applicant must establish tolerances for all quantities that affect flutter. | ||||
| 14:14:1.0.1.3.12.3.22.8 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2235 Structural strength. | FAA | The structure must support: (a) Limit loads without— (1) Interference with the safe operation of the airplane; and (2) Detrimental permanent deformation. (b) Ultimate loads. | ||||
| 14:14:1.0.1.3.12.3.22.9 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2240 Structural durability. | FAA | (a) The applicant must develop and implement inspections or other procedures to prevent structural failures due to foreseeable causes of strength degradation, which could result in serious or fatal injuries, or extended periods of operation with reduced safety margins. Each of the inspections or other procedures developed under this section must be included in the Airworthiness Limitations Section of the Instructions for Continued Airworthiness required by § 23.1529. (b) For Level 4 airplanes, the procedures developed for compliance with paragraph (a) of this section must be capable of detecting structural damage before the damage could result in structural failure. (c) For pressurized airplanes: (1) The airplane must be capable of continued safe flight and landing following a sudden release of cabin pressure, including sudden releases caused by door and window failures. (2) For airplanes with maximum operating altitude greater than 41,000 feet, the procedures developed for compliance with paragraph (a) of this section must be capable of detecting damage to the pressurized cabin structure before the damage could result in rapid decompression that would result in serious or fatal injuries. (d) The airplane must be designed to minimize hazards to the airplane due to structural damage caused by high-energy fragments from an uncontained engine or rotating machinery failure. | ||||
| 14:14:1.0.1.3.12.3.23.11 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2250 Design and construction principles. | FAA | (a) The applicant must design each part, article, and assembly for the expected operating conditions of the airplane. (b) Design data must adequately define the part, article, or assembly configuration, its design features, and any materials and processes used. (c) The applicant must determine the suitability of each design detail and part having an important bearing on safety in operations. (d) The control system must be free from jamming, excessive friction, and excessive deflection when the airplane is subjected to expected limit airloads. (e) Doors, canopies, and exits must be protected against inadvertent opening in flight, unless shown to create no hazard when opened in flight. | ||||
| 14:14:1.0.1.3.12.3.23.12 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2255 Protection of structure. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) The applicant must protect each part of the airplane, including small parts such as fasteners, against deterioration or loss of strength due to any cause likely to occur in the expected operational environment. (b) Each part of the airplane must have adequate provisions for ventilation and drainage. (c) For each part that requires maintenance, preventive maintenance, or servicing, the applicant must incorporate a means into the airplane design to allow such actions to be accomplished. | |||
| 14:14:1.0.1.3.12.3.23.13 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2260 Materials and processes. | FAA | (a) The applicant must determine the suitability and durability of materials used for parts, articles, and assemblies, accounting for the effects of likely environmental conditions expected in service, the failure of which could prevent continued safe flight and landing. (b) The methods and processes of fabrication and assembly used must produce consistently sound structures. If a fabrication process requires close control to reach this objective, the applicant must perform the process under an approved process specification. (c) Except as provided in paragraphs (f) and (g) of this section, the applicant must select design values that ensure material strength with probabilities that account for the criticality of the structural element. Design values must account for the probability of structural failure due to material variability. (d) If material strength properties are required, a determination of those properties must be based on sufficient tests of material meeting specifications to establish design values on a statistical basis. (e) If thermal effects are significant on a critical component or structure under normal operating conditions, the applicant must determine those effects on allowable stresses used for design. (f) Design values, greater than the minimums specified by this section, may be used, where only guaranteed minimum values are normally allowed, if a specimen of each individual item is tested before use to determine that the actual strength properties of that particular item will equal or exceed those used in the design. (g) An applicant may use other material design values if approved by the Administrator. | ||||
| 14:14:1.0.1.3.12.3.23.14 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2265 Special factors of safety. | FAA | (a) The applicant must determine a special factor of safety for each critical design value for each part, article, or assembly for which that critical design value is uncertain, and for each part, article, or assembly that is— (1) Likely to deteriorate in service before normal replacement; or (2) Subject to appreciable variability because of uncertainties in manufacturing processes or inspection methods. (b) The applicant must determine a special factor of safety using quality controls and specifications that account for each— (1) Type of application; (2) Inspection method; (3) Structural test requirement; (4) Sampling percentage; and (5) Process and material control. (c) The applicant must multiply the highest pertinent special factor of safety in the design for each part of the structure by each limit and ultimate load, or ultimate load only, if there is no corresponding limit load, such as occurs with emergency condition loading. | ||||
| 14:14:1.0.1.3.12.3.24.15 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | C | Subpart C—Structures | § 23.2270 Emergency conditions. | FAA | (a) The airplane, even when damaged in an emergency landing, must protect each occupant against injury that would preclude egress when— (1) Properly using safety equipment and features provided for in the design; (2) The occupant experiences ultimate static inertia loads likely to occur in an emergency landing; and (3) Items of mass, including engines or auxiliary power units (APUs), within or aft of the cabin, that could injure an occupant, experience ultimate static inertia loads likely to occur in an emergency landing. (b) The emergency landing conditions specified in paragraph (a)(1) and (a)(2) of this section, must— (1) Include dynamic conditions that are likely to occur in an emergency landing; and (2) Not generate loads experienced by the occupants, which exceed established human injury criteria for human tolerance due to restraint or contact with objects in the airplane. (c) The airplane must provide protection for all occupants, accounting for likely flight, ground, and emergency landing conditions. (d) Each occupant protection system must perform its intended function and not create a hazard that could cause a secondary injury to an occupant. The occupant protection system must not prevent occupant egress or interfere with the operation of the airplane when not in use. (e) Each baggage and cargo compartment must— (1) Be designed for its maximum weight of contents and for the critical load distributions at the maximum load factors corresponding to the flight and ground load conditions determined under this part; (2) Have a means to prevent the contents of the compartment from becoming a hazard by impacting occupants or shifting; and (3) Protect any controls, wiring, lines, equipment, or accessories whose damage or failure would affect safe operations. | ||||
| 14:14:1.0.1.3.12.4.25.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2300 Flight control systems. | FAA | (a) The applicant must design airplane flight control systems to: (1) Operate easily, smoothly, and positively enough to allow proper performance of their functions. (2) Protect against likely hazards. (b) The applicant must design trim systems, if installed, to: (1) Protect against inadvertent, incorrect, or abrupt trim operation. (2) Provide a means to indicate— (i) The direction of trim control movement relative to airplane motion; (ii) The trim position with respect to the trim range; (iii) The neutral position for lateral and directional trim; and (iv) The range for takeoff for all applicant requested center of gravity ranges and configurations. | ||||
| 14:14:1.0.1.3.12.4.25.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2305 Landing gear systems. | FAA | (a) The landing gear must be designed to— (1) Provide stable support and control to the airplane during surface operation; and (2) Account for likely system failures and likely operation environments (including anticipated limitation exceedances and emergency procedures). (b) All airplanes must have a reliable means of stopping the airplane with sufficient kinetic energy absorption to account for landing. Airplanes that are required to demonstrate aborted takeoff capability must account for this additional kinetic energy. (c) For airplanes that have a system that actuates the landing gear, there is— (1) A positive means to keep the landing gear in the landing position; and (2) An alternative means available to bring the landing gear in the landing position when a non-deployed system position would be a hazard. | ||||
| 14:14:1.0.1.3.12.4.25.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2310 Buoyancy for seaplanes and amphibians. | FAA | Airplanes intended for operations on water, must— (a) Provide buoyancy of 80 percent in excess of the buoyancy required to support the maximum weight of the airplane in fresh water; and (b) Have sufficient margin so the airplane will stay afloat at rest in calm water without capsizing in case of a likely float or hull flooding. | ||||
| 14:14:1.0.1.3.12.4.25.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2315 Means of egress and emergency exits. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) With the cabin configured for takeoff or landing, the airplane is designed to: (1) Facilitate rapid and safe evacuation of the airplane in conditions likely to occur following an emergency landing, excluding ditching for level 1, level 2, and single-engine level 3 airplanes. (2) Have means of egress (openings, exits, or emergency exits), that can be readily located and opened from the inside and outside. The means of opening must be simple and obvious and marked inside and outside the airplane. (3) Have easy access to emergency exits when present. (b) Airplanes approved for aerobatics must have a means to egress the airplane in flight. | |||
| 14:14:1.0.1.3.12.4.25.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2320 Occupant physical environment. | FAA | (a) The applicant must design the airplane to— (1) Allow clear communication between the flightcrew and passengers; (2) Protect the pilot and flight controls from propellers; and (3) Protect the occupants from serious injury due to damage to windshields, windows, and canopies. (b) For level 4 airplanes, each windshield and its supporting structure directly in front of the pilot must withstand, without penetration, the impact equivalent to a two-pound bird when the velocity of the airplane is equal to the airplane's maximum approach flap speed. (c) The airplane must provide each occupant with air at a breathable pressure, free of hazardous concentrations of gases, vapors, and smoke during normal operations and likely failures. (d) If a pressurization system is installed in the airplane, it must be designed to protect against— (1) Decompression to an unsafe level; and (2) Excessive differential pressure. (e) If an oxygen system is installed in the airplane, it must— (1) Effectively provide oxygen to each user to prevent the effects of hypoxia; and (2) Be free from hazards in itself, in its method of operation, and its effect upon other components. | ||||
| 14:14:1.0.1.3.12.4.26.6 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2325 Fire protection. | FAA | (a) The following materials must be self-extinguishing— (1) Insulation on electrical wire and electrical cable; (2) For levels 1, 2, and 3 airplanes, materials in the baggage and cargo compartments inaccessible in flight; and (3) For level 4 airplanes, materials in the cockpit, cabin, baggage, and cargo compartments. (b) The following materials must be flame resistant— (1) For levels 1, 2 and 3 airplanes, materials in each compartment accessible in flight; and (2) Any equipment associated with any electrical cable installation and that would overheat in the event of circuit overload or fault. (c) Thermal/acoustic materials in the fuselage, if installed, must not be a flame propagation hazard. (d) Sources of heat within each baggage and cargo compartment that are capable of igniting adjacent objects must be shielded and insulated to prevent such ignition. (e) For level 4 airplanes, each baggage and cargo compartment must— (1) Be located where a fire would be visible to the pilots, or equipped with a fire detection system and warning system; and (2) Be accessible for the manual extinguishing of a fire, have a built-in fire extinguishing system, or be constructed and sealed to contain any fire within the compartment. (f) There must be a means to extinguish any fire in the cabin such that— (1) The pilot, while seated, can easily access the fire extinguishing means; and (2) For levels 3 and 4 airplanes, passengers have a fire extinguishing means available within the passenger compartment. (g) Each area where flammable fluids or vapors might escape by leakage of a fluid system must— (1) Be defined; and (2) Have a means to minimize the probability of fluid and vapor ignition, and the resultant hazard, if ignition occurs. (h) Combustion heater installations must be protected from uncontained fire. | ||||
| 14:14:1.0.1.3.12.4.26.7 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2330 Fire protection in designated fire zones and adjacent areas. | FAA | (a) Flight controls, engine mounts, and other flight structures within or adjacent to designated fire zones must be capable of withstanding the effects of a fire. (b) Engines in a designated fire zone must remain attached to the airplane in the event of a fire. (c) In designated fire zones, terminals, equipment, and electrical cables used during emergency procedures must be fire-resistant. | ||||
| 14:14:1.0.1.3.12.4.26.8 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | D | Subpart D—Design and Construction | § 23.2335 Lightning protection. | FAA | The airplane must be protected against catastrophic effects from lightning. | ||||
| 14:14:1.0.1.3.12.5.27.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2400 Powerplant installation. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) For the purpose of this subpart, the airplane powerplant installation must include each component necessary for propulsion, which affects propulsion safety, or provides auxiliary power to the airplane. (b) Each airplane engine and propeller must be type certificated, except for engines and propellers installed on level 1 low-speed airplanes, which may be approved under the airplane type certificate in accordance with a standard accepted by the Administrator that contains airworthiness criteria the Administrator has found appropriate and applicable to the specific design and intended use of the engine or propeller and provides a level of safety acceptable to the Administrator. (c) The applicant must construct and arrange each powerplant installation to account for— (1) Likely operating conditions, including foreign object threats; (2) Sufficient clearance of moving parts to other airplane parts and their surroundings; (3) Likely hazards in operation including hazards to ground personnel; and (4) Vibration and fatigue. (d) Hazardous accumulations of fluids, vapors, or gases must be isolated from the airplane and personnel compartments, and be safely contained or discharged. (e) Powerplant components must comply with their component limitations and installation instructions or be shown not to create a hazard. | |||
| 14:14:1.0.1.3.12.5.27.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2405 Automatic power or thrust control systems. | FAA | (a) An automatic power or thrust control system intended for in-flight use must be designed so no unsafe condition will result during normal operation of the system. (b) Any single failure or likely combination of failures of an automatic power or thrust control system must not prevent continued safe flight and landing of the airplane. (c) Inadvertent operation of an automatic power or thrust control system by the flightcrew must be prevented, or if not prevented, must not result in an unsafe condition. (d) Unless the failure of an automatic power or thrust control system is extremely remote, the system must— (1) Provide a means for the flightcrew to verify the system is in an operating condition; (2) Provide a means for the flightcrew to override the automatic function; and (3) Prevent inadvertent deactivation of the system. | ||||
| 14:14:1.0.1.3.12.5.27.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2410 Powerplant installation hazard assessment. | FAA | The applicant must assess each powerplant separately and in relation to other airplane systems and installations to show that any hazard resulting from the likely failure of any powerplant system, component, or accessory will not— (a) Prevent continued safe flight and landing or, if continued safe flight and landing cannot be ensured, the hazard has been minimized; (b) Cause serious injury that may be avoided; and (c) Require immediate action by any crewmember for continued operation of any remaining powerplant system. | ||||
| 14:14:1.0.1.3.12.5.27.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2415 Powerplant ice protection. | FAA | (a) The airplane design, including the induction and inlet system, must prevent foreseeable accumulation of ice or snow that adversely affects powerplant operation. (b) The powerplant installation design must prevent any accumulation of ice or snow that adversely affects powerplant operation, in those icing conditions for which certification is requested. | ||||
| 14:14:1.0.1.3.12.5.27.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2420 Reversing systems. | FAA | Each reversing system must be designed so that— (a) No unsafe condition will result during normal operation of the system; and (b) The airplane is capable of continued safe flight and landing after any single failure, likely combination of failures, or malfunction of the reversing system. | ||||
| 14:14:1.0.1.3.12.5.27.6 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2425 Powerplant operational characteristics. | FAA | (a) The installed powerplant must operate without any hazardous characteristics during normal and emergency operation within the range of operating limitations for the airplane and the engine. (b) The pilot must have the capability to stop the powerplant in flight and restart the powerplant within an established operational envelope. | ||||
| 14:14:1.0.1.3.12.5.27.7 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2430 Fuel systems. | FAA | (a) Each fuel system must— (1) Be designed and arranged to provide independence between multiple fuel storage and supply systems so that failure of any one component in one system will not result in loss of fuel storage or supply of another system; (2) Be designed and arranged to prevent ignition of the fuel within the system by direct lightning strikes or swept lightning strokes to areas where such occurrences are highly probable, or by corona or streamering at fuel vent outlets; (3) Provide the fuel necessary to ensure each powerplant and auxiliary power unit functions properly in all likely operating conditions; (4) Provide the flightcrew with a means to determine the total useable fuel available and provide uninterrupted supply of that fuel when the system is correctly operated, accounting for likely fuel fluctuations; (5) Provide a means to safely remove or isolate the fuel stored in the system from the airplane; (6) Be designed to retain fuel under all likely operating conditions and minimize hazards to the occupants during any survivable emergency landing. For level 4 airplanes, failure due to overload of the landing system must be taken into account; and (7) Prevent hazardous contamination of the fuel supplied to each powerplant and auxiliary power unit. (b) Each fuel storage system must— (1) Withstand the loads under likely operating conditions without failure; (2) Be isolated from personnel compartments and protected from hazards due to unintended temperature influences; (3) Be designed to prevent significant loss of stored fuel from any vent system due to fuel transfer between fuel storage or supply systems, or under likely operating conditions; (4) Provide fuel for at least one-half hour of operation at maximum continuous power or thrust; and (5) Be capable of jettisoning fuel safely if required for landing. (c) Each fuel storage refilling or recharging system must be designed to— (1) Prevent improper refilling or recharging; (2) Prevent contamination of the fuel stored during likely o… | ||||
| 14:14:1.0.1.3.12.5.27.8 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2435 Powerplant induction and exhaust systems. | FAA | (a) The air induction system for each powerplant or auxiliary power unit and their accessories must— (1) Supply the air required by that powerplant or auxiliary power unit and its accessories under likely operating conditions; (2) Be designed to prevent likely hazards in the event of fire or backfire; (3) Minimize the ingestion of foreign matter; and (4) Provide an alternate intake if blockage of the primary intake is likely. (b) The exhaust system, including exhaust heat exchangers for each powerplant or auxiliary power unit, must— (1) Provide a means to safely discharge potential harmful material; and (2) Be designed to prevent likely hazards from heat, corrosion, or blockage. | ||||
| 14:14:1.0.1.3.12.5.27.9 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | E | Subpart E—Powerplant | § 23.2440 Powerplant fire protection. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) A powerplant, auxiliary power unit, or combustion heater that includes a flammable fluid and an ignition source for that fluid must be installed in a designated fire zone. (b) Each designated fire zone must provide a means to isolate and mitigate hazards to the airplane in the event of fire or overheat within the zone. (c) Each component, line, fitting, and control subject to fire conditions must— (1) Be designed and located to prevent hazards resulting from a fire, including any located adjacent to a designated fire zone that may be affected by fire within that zone; (2) Be fire-resistant if carrying flammable fluid, gas or air, or is required to operate in the event of a fire; and (3) Be fireproof or enclosed by a fire proof shield if storing concentrated flammable fluids. (d) The applicant must provide a means to prevent hazardous quantities of flammable fluids from flowing into, within or through each designated fire zone. This means must— (1) Not restrict flow or limit operation of any remaining powerplant or auxiliary power unit, or equipment necessary for safety; (2) Prevent inadvertent operation; and (3) Be located outside the fire zone unless an equal degree of safety is provided with a means inside the fire zone. (e) A means to ensure the prompt detection of fire must be provided for each designated fire zone— (1) On a multiengine airplane where detection will mitigate likely hazards to the airplane; or (2) That contains a fire extinguisher. (f) A means to extinguish fire within a fire zone, except a combustion heater fire zone, must be provided for— (1) Any fire zone located outside the pilot's view; (2) Any fire zone embedded within the fuselage, which must also include a redundant means to extinguish fire; and (3) Any fire zone on a level 4 airplane. | |||
| 14:14:1.0.1.3.12.6.27.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2500 Airplane level systems requirements. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | This section applies generally to installed equipment and systems unless a section of this part imposes requirements for a specific piece of equipment, system, or systems. (a) The equipment and systems required for an airplane to operate safely in the kinds of operations for which certification is requested (Day VFR, Night VFR, IFR) must be designed and installed to— (1) Meet the level of safety applicable to the certification and performance level of the airplane; and (2) Perform their intended function throughout the operating and environmental limits for which the airplane is certificated. (b) The systems and equipment not covered by paragraph (a) of this section—considered separately and in relation to other systems—must be designed and installed so their operation does not have an adverse effect on the airplane or its occupants. | |||
| 14:14:1.0.1.3.12.6.27.10 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2545 Pressurized systems elements. | FAA | Pressurized systems must withstand appropriate proof and burst pressures. | ||||
| 14:14:1.0.1.3.12.6.27.11 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2550 Equipment containing high-energy rotors. | FAA | Equipment containing high-energy rotors must be designed or installed to protect the occupants and airplane from uncontained fragments. | ||||
| 14:14:1.0.1.3.12.6.27.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2505 Function and installation. | FAA | When installed, each item of equipment must function as intended. | ||||
| 14:14:1.0.1.3.12.6.27.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2510 Equipment, systems, and installations. | FAA | For any airplane system or equipment whose failure or abnormal operation has not been specifically addressed by another requirement in this part, the applicant must design and install each system and equipment, such that there is a logical and acceptable inverse relationship between the average probability and the severity of failure conditions to the extent that: (a) Each catastrophic failure condition is extremely improbable; (b) Each hazardous failure condition is extremely remote; and (c) Each major failure condition is remote. | ||||
| 14:14:1.0.1.3.12.6.27.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2515 Electrical and electronic system lightning protection. | FAA | An airplane approved for IFR operations must meet the following requirements, unless an applicant shows that exposure to lightning is unlikely: (a) Each electrical or electronic system that performs a function, the failure of which would prevent the continued safe flight and landing of the airplane, must be designed and installed such that— (1) The function at the airplane level is not adversely affected during and after the time the airplane is exposed to lightning; and (2) The system recovers normal operation of that function in a timely manner after the airplane is exposed to lightning unless the system's recovery conflicts with other operational or functional requirements of the system. (b) Each electrical and electronic system that performs a function, the failure of which would significantly reduce the capability of the airplane or the ability of the flightcrew to respond to an adverse operating condition, must be designed and installed such that the system recovers normal operation of that function in a timely manner after the airplane is exposed to lightning. | ||||
| 14:14:1.0.1.3.12.6.27.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2520 High-intensity Radiated Fields (HIRF) protection. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) Each electrical and electronic system that performs a function, the failure of which would prevent the continued safe flight and landing of the airplane, must be designed and installed such that— (1) The function at the airplane level is not adversely affected during and after the time the airplane is exposed to the HIRF environment; and (2) The system recovers normal operation of that function in a timely manner after the airplane is exposed to the HIRF environment, unless the system's recovery conflicts with other operational or functional requirements of the system. (b) For airplanes approved for IFR operations, each electrical and electronic system that performs a function, the failure of which would significantly reduce the capability of the airplane or the ability of the flightcrew to respond to an adverse operating condition, must be designed and installed such that the system recovers normal operation of that function in a timely manner after the airplane is exposed to the HIRF environment. | |||
| 14:14:1.0.1.3.12.6.27.6 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2525 System power generation, storage, and distribution. | FAA | The power generation, storage, and distribution for any system must be designed and installed to— (a) Supply the power required for operation of connected loads during all intended operating conditions; (b) Ensure no single failure or malfunction of any one power supply, distribution system, or other utilization system will prevent the system from supplying the essential loads required for continued safe flight and landing; and (c) Have enough capacity, if the primary source fails, to supply essential loads, including non-continuous essential loads for the time needed to complete the function required for continued safe flight and landing. | ||||
| 14:14:1.0.1.3.12.6.27.7 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2530 External and cockpit lighting. | FAA | (a) The applicant must design and install all lights to minimize any adverse effects on the performance of flightcrew duties. (b) Any position and anti-collision lights, if required by part 91 of this chapter, must have the intensities, flash rate, colors, fields of coverage, and other characteristics to provide sufficient time for another aircraft to avoid a collision. (c) Any position lights, if required by part 91 of this chapter, must include a red light on the left side of the airplane, a green light on the right side of the airplane, spaced laterally as far apart as practicable, and a white light facing aft, located on an aft portion of the airplane or on the wing tips. (d) Any taxi and landing lights must be designed and installed so they provide sufficient light for night operations. (e) For seaplanes or amphibian airplanes, riding lights must provide a white light visible in clear atmospheric conditions. | ||||
| 14:14:1.0.1.3.12.6.27.8 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2535 Safety equipment. | FAA | Safety and survival equipment, required by the operating rules of this chapter, must be reliable, readily accessible, easily identifiable, and clearly marked to identify its method of operation. | ||||
| 14:14:1.0.1.3.12.6.27.9 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | F | Subpart F—Equipment | § 23.2540 Flight in icing conditions. | FAA | An applicant who requests certification for flight in icing conditions defined in part 1 of appendix C to part 25 of this chapter, or an applicant who requests certification for flight in these icing conditions and any additional atmospheric icing conditions, must show the following in the icing conditions for which certification is requested: (a) The ice protection system provides for safe operation. (b) The airplane design must provide protection from stalling when the autopilot is operating. | ||||
| 14:14:1.0.1.3.12.7.27.1 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | G | Subpart G—Flightcrew Interface and Other Information | § 23.2600 Flightcrew interface. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | (a) The pilot compartment, its equipment, and its arrangement to include pilot view, must allow each pilot to perform his or her duties, including taxi, takeoff, climb, cruise, descent, approach, landing, and perform any maneuvers within the operating envelope of the airplane, without excessive concentration, skill, alertness, or fatigue. (b) The applicant must install flight, navigation, surveillance, and powerplant controls and displays so flightcrew members can monitor and perform defined tasks associated with the intended functions of systems and equipment. The system and equipment design must minimize flightcrew errors, which could result in additional hazards. (c) For level 4 airplanes, the flightcrew interface design must allow for continued safe flight and landing after the loss of vision through any one of the windshield panels. | |||
| 14:14:1.0.1.3.12.7.27.2 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | G | Subpart G—Flightcrew Interface and Other Information | § 23.2605 Installation and operation. | FAA | (a) Each item of installed equipment related to the flightcrew interface must be labelled, if applicable, as to it identification, function, or operating limitations, or any combination of these factors. (b) There must be a discernible means of providing system operating parameters required to operate the airplane, including warnings, cautions, and normal indications to the responsible crewmember. (c) Information concerning an unsafe system operating condition must be provided in a timely manner to the crewmember responsible for taking corrective action. The information must be clear enough to avoid likely crewmember errors. | ||||
| 14:14:1.0.1.3.12.7.27.3 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | G | Subpart G—Flightcrew Interface and Other Information | § 23.2610 Instrument markings, control markings, and placards. | FAA | (a) Each airplane must display in a conspicuous manner any placard and instrument marking necessary for operation. (b) The design must clearly indicate the function of each cockpit control, other than primary flight controls. (c) The applicant must include instrument marking and placard information in the Airplane Flight Manual. | ||||
| 14:14:1.0.1.3.12.7.27.4 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | G | Subpart G—Flightcrew Interface and Other Information | § 23.2615 Flight, navigation, and powerplant instruments. | FAA | (a) Installed systems must provide the flightcrew member who sets or monitors parameters for the flight, navigation, and powerplant, the information necessary to do so during each phase of flight. This information must— (1) Be presented in a manner that the crewmember can monitor the parameter and determine trends, as needed, to operate the airplane; and (2) Include limitations, unless the limitation cannot be exceeded in all intended operations. (b) Indication systems that integrate the display of flight or powerplant parameters to operate the airplane or are required by the operating rules of this chapter must— (1) Not inhibit the primary display of flight or powerplant parameters needed by any flightcrew member in any normal mode of operation; and (2) In combination with other systems, be designed and installed so information essential for continued safe flight and landing will be available to the flightcrew in a timely manner after any single failure or probable combination of failures. | ||||
| 14:14:1.0.1.3.12.7.27.5 | 14 | Aeronautics and Space | I | C | 23 | PART 23—AIRWORTHINESS STANDARDS: NORMAL CATEGORY AIRPLANES | G | Subpart G—Flightcrew Interface and Other Information | § 23.2620 Airplane flight manual. | FAA | [Doc. No. FAA-2015-1621, Amdt. 23-64, 81 FR 96689, Dec. 30, 2016, as amended by Doc. No. FAA-2022-1355, Amdt. 23-65, 87 FR 75710, Dec. 9, 2022] | The applicant must provide an Airplane Flight Manual that must be delivered with each airplane. (a) The Airplane Flight Manual must contain the following information— (1) Airplane operating limitations; (2) Airplane operating procedures; (3) Performance information; (4) Loading information; and (5) Other information that is necessary for safe operation because of design, operating, or handling characteristics. (b) The following sections of the Airplane Flight Manual must be approved by the FAA in a manner specified by the Administrator— (1) For low-speed, level 1 and 2 airplanes, those portions of the Airplane Flight Manual containing the information specified in paragraph (a)(1) of this section; and (2) For high-speed level 1 and 2 airplanes and all level 3 and 4 airplanes, those portions of the Airplane Flight Manual containing the information specified in paragraphs (a)(1) thru (a)(4) of this section. | |||
| 15:15:1.1.1.1.27.0.4.1 | 15 | Commerce and Foreign Trade | 23 | PART 23—USE OF PENALTY MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN | § 23.1 Purpose. | DOC | These regulations are intended to comply with 39 U.S.C. 3220(a)(2), and the Office of Juvenile Justice and Delinquency Prevention (OJJDP) guidelines (50 FR 46622), to assist in the location and recovery of missing children through the use of penalty mail. | ||||||||
| 15:15:1.1.1.1.27.0.4.2 | 15 | Commerce and Foreign Trade | 23 | PART 23—USE OF PENALTY MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN | § 23.2 [Reserved] | DOC | |||||||||
| 15:15:1.1.1.1.27.0.4.3 | 15 | Commerce and Foreign Trade | 23 | PART 23—USE OF PENALTY MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN | § 23.3 Plan. | DOC | (a) The Department of Commerce will supplement and expand the national effort to assist in the location and recovery of missing children through the economical use of missing children information in domestic penalty mail directed to the public and Federal employees. (b) The Department of Commerce may include, on or inside authorized types of penalty mail, pictures and biographical data related to missing children, provided such use is determined to be cost effective. The authorized types of penalty mail include: (1) All envelopes; and (2) Self-mailer publications (newsletters, bulletins, etc.) with a shelf-life of no more than 90 days. (c) The manner in which pictures and biographical data may be used includes: (1) Printing on envelopes at the time they are initially printed with the United States Postal Service (USPS) required postal code identification; (2) Printed inserts that are placed in envelopes along with other mailing material; (3) Stickers that are printed and placed on envelopes prior to mailing; and (4) Printing as part of the content of self-mailers such as bureau newsletters, bulletins, etc. (d) Missing children information will not be placed on letter-size envelopes in the areas described as the “Penalty Indicia Area,” “OCR Read Area,” “Bar Code Read Area,” and “Return Address Area” per Appendix A of the OJJDP guidelines. (e) The National Center for Missing and Exploited Children (National Center) will be the sole source from which the Department of Commerce will obtain the camera-ready and other photographic and biographical materials for use by organizational units. Photographs which were reasonably current as of the time of the child's disappearance shall be the only acceptable form of visual media or pictorial likeness used on or in penalty mail. (f) The Department of Commerce will remove all printed penalty mail envelopes and other materials from circulation or other use ( i.e. , use or destroy) within 90 days of notification by the National Center of the need to withdraw penalty m… | ||||||||
| 15:15:1.1.1.1.27.0.4.4 | 15 | Commerce and Foreign Trade | 23 | PART 23—USE OF PENALTY MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN | §§ 23.4-23.7 [Reserved] | DOC | |||||||||
| 17:17:1.0.1.1.22.2.7.1 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | B | Subpart B—Registration | § 23.21 Registration of swap dealers and major swap participants. | CFTC | (a) Each person who comes within the definition of the term “swap dealer” in section 1a(49) of the Act, as such term may be further defined by the Commission, is subject to the registration provisions under the Act and to part 3 of this chapter. (b) Each person who comes within the definition of the term “major swap participant” in section 1a(33) of the Act, as such term may be further defined by the Commission, is subject to the registration provisions under the Act and to part 3 of this chapter. (c) Each affiliate of an insured depository institution described in section 716(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203 section 716(c), 124 Stat. 1376 (2010)) is required to be registered as a swap dealer if the affiliate is a swap dealer or as a major swap participant if the affiliate is a major swap participant. | |||||
| 17:17:1.0.1.1.22.2.7.2 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | B | Subpart B—Registration | § 23.22 Prohibition against statutory disqualification in the case of an associated person of a swap dealer or major swap participant. | CFTC | [77 FR 2628, Jan. 19, 2012, as amended at 78 FR 20792, Apr. 8, 2013; 78 FR 64175, Oct. 28, 2013; 83 FR 7996, Feb. 23, 2018] | (a) Definition. For purposes of this section, the term “person” means an “associated person of a swap dealer or major swap participant” as defined in section 1a(4) of the Act and § 1.3 of this chapter, but does not include an individual employed in a clerical or ministerial capacity. (b) Fitness. No swap dealer or major swap participant may permit a person who is subject to a statutory disqualification under section 8a(2) or 8a(3) of the Act to effect or be involved in effecting swaps on behalf of the swap dealer or major swap participant, if the swap dealer or major swap participant knows, or in the exercise of reasonable care should know, of the statutory disqualification; Provided, however, that the prohibition set forth in this paragraph (b) shall not apply to any person listed as a principal or registered as an associated person of a futures commission merchant, retail foreign exchange dealer, introducing broker, commodity pool operator, commodity trading advisor, or leverage transaction merchant, or any person registered as a floor broker or floor trader, notwithstanding that the person is subject to a disqualification from registration under section 8a(2) or 8a(3) of the Act. (c) Dual and multiple associations. (1) A person who is already associated as an associated person of a swap dealer or major swap participant may become associated as an associated person of another swap dealer or major swap participant if the other swap dealer or major swap participant meets the requirements set forth in § 3.60(b)(2)(i)(A) of this chapter. (2) Each swap dealer and major swap participant associated with such associated person shall supervise that associated person, and each swap dealer and major swap participant is jointly and severally responsible for the conduct of the associated person with respect to the: (i) Solicitation or acceptance of customer orders, (ii) Solicitation of funds, securities or property for a participation in a commodity pool, (iii) Solicitation of a client's or prospective client'… | ||||
| 17:17:1.0.1.1.22.2.7.3 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | B | Subpart B—Registration | § 23.23 Cross-border application. | CFTC | [85 FR 56997, Sept. 14, 2020, as amended at 85 FR 69499, Nov. 3, 2020; 89 FR 71810, Sept. 4, 2024] | (a) Definitions. Solely for purposes of this section the terms listed in this paragraph (a) have the meanings set forth in paragraphs (a)(1) through (24) of this section. A person may rely on a written representation from its counterparty that the counterparty does or does not satisfy the criteria for one or more of the definitions listed in paragraphs (a)(1) through (24) of this section, unless such person knows or has reason to know that the representation is not accurate; for the purposes of this rule a person would have reason to know the representation is not accurate if a reasonable person should know, under all of the facts of which the person is aware, that it is not accurate. (1) An affiliate of, or a person affiliated with a specific person, means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. (2) Control including the terms controlling, controlled by, and under common control with, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise. (3) Foreign branch means any office of a U.S. bank that: (i) Is located outside the United States; (ii) Operates for valid business reasons; (iii) Maintains accounts independently of the home office and of the accounts of other foreign branches, with the profit or loss accrued at each branch determined as a separate item for each foreign branch; and (iv) Is engaged in the business of banking and is subject to substantive regulation in banking or financing in the jurisdiction where it is located. (4) Foreign-based swap means: (i) A swap by a non-U.S. swap entity, except for a swap booked in a U.S. branch; or (ii) A swap conducted through a foreign branch. (5) Foreign counterparty means: (i) A non-U.S. person, except with respect to a swap booked in a U.S. branch of that non-U.S. person;… | ||||
| 17:17:1.0.1.1.22.2.7.4 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | B | Subpart B—Registration | §§ 23.24-23.40 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.22.3.7.1 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.100 Definitions applicable to capital requirements. | CFTC | [85 FR 57547, Sept. 15, 2020, as amended at 89 FR 45585, May 23, 2024] | For purposes of §§ 23.101 through 23.106 of subpart E, the following terms are defined as follows: Actual daily net trading profit and loss. This term is used in assessing the performance of a swap dealer's VaR measure and refers to changes in the swap dealer's portfolio value that would have occurred were end-of-day positions to remain unchanged (therefore, excluding fees, commissions, reserves, net interest income, and intraday trading). Advanced approaches Board-regulated institution. The term shall have the meaning ascribed to it in 12 CFR part 217. BHC equivalent risk-weighted assets. This term means the risk-weighted assets of a swap dealer that elects to meet the capital requirements in § 23.101(a)(1)(i) calculated as follows: (1) If the swap dealer is not approved to use internal models to calculate credit risk exposure under § 23.102, it shall calculate its credit risk-weighted assets using the bank holding company regulations in subpart D of 12 CFR part 217, as if the swap dealer itself were a bank holding company, with the swap dealer permitted to calculate its exposure amount for OTC derivative contracts using either the current exposure method or the standardized approach for counterparty credit risk, without regard to the status of any affiliate of the swap dealer as an advanced approaches Board-regulated institution; (2) If the swap dealer is approved to use internal models to calculate credit risk exposure under § 23.102, it shall calculate its credit risk-weighted assets using the bank holding company regulations in subpart E of 12 CFR part 217, as if the swap dealer itself were a bank holding company, with the swap dealer permitted to calculate its exposure amount for OTC derivative contracts using either the internal models methodology or the standardized approach for counterparty credit risk, without regard to the status of any affiliate of the swap dealer as an advanced approaches Board-regulated institution; (3) If the swap dealer is not approved to use internal models to calculate … | ||||
| 17:17:1.0.1.1.22.3.7.10 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.151 Definitions applicable to margin requirements. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 83 FR 60346, Nov. 26, 2018; 85 FR 27678, May 11, 2020; 86 FR 246, Jan. 5, 2021; 86 FR 6857, Jan. 25, 2021] | For the purposes of §§ 23.150 through 23.161: Bank holding company has the meaning specified in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841). Broker has the meaning specified in section 3(a)(4) the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)). Business day means any day other than a Saturday, Sunday, or legal holiday. Company means a corporation, partnership, limited liability company, business trust, special purpose entity, association, or similar organization. Counterparty means the other party to a swap to which a covered swap entity is a party. Covered counterparty means a financial end user with material swaps exposure or a swap entity that enters into a swap with a covered swap entity. Covered swap entity means a swap dealer or major swap participant for which there is no prudential regulator. Cross-currency swap means a swap in which one party exchanges with another party principal and interest rate payments in one currency for principal and interest rate payments in another currency, and the exchange of principal occurs on the date the swap is entered into, with a reversal of the exchange of principal at a later date that is agreed upon when the swap is entered into. Currency of Settlement means a currency in which a party has agreed to discharge payment obligations related to an uncleared swap or a group of uncleared swaps subject to a master netting agreement at the regularly occurring dates on which such payments are due in the ordinary course. Data source means an entity and/or method from which or by which a covered swap entity obtains prices for swaps or values for other inputs used in a margin calculation. Day of execution means the calendar day at the time the parties enter into an uncleared swap, provided: (1) If each party is in a different calendar day at the time the parties enter into the uncleared swap, the day of execution is deemed the latter of the two dates; and (2) If an uncleared swap is— (i) Entered into after 4:00 p.m. in the lo… | ||||
| 17:17:1.0.1.1.22.3.7.11 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.152 Collection and posting of initial margin. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 86 FR 6857, Jan. 25, 2021] | (a) Collection —(1) Initial obligation. On or before the business day after execution of an uncleared swap between a covered swap entity and a covered counterparty, the covered swap entity shall collect initial margin from the covered counterparty in an amount equal to or greater than an amount calculated pursuant to § 23.154, in a form that complies with § 23.156, and pursuant to custodial arrangements that comply with § 23.157. (2) Continuing obligation. The covered swap entity shall continue to hold initial margin from the covered counterparty in an amount equal to or greater than an amount calculated each business day pursuant to § 23.154, in a form that complies with § 23.156, and pursuant to custodial arrangements that comply with § 23.157, until such uncleared swap is terminated or expires. (b) Posting —(1) Initial obligation. On or before the business day after execution of an uncleared swap between a covered swap entity and a financial end user with material swaps exposure, the covered swap entity shall post initial margin with the counterparty in an amount equal to or greater than an amount calculated pursuant to § 23.154, in a form that complies with § 23.156, and pursuant to custodial arrangements that comply with § 23.157. (2) Continuing obligation. The covered swap entity shall continue to post initial margin with the counterparty in an amount equal to or greater than an amount calculated each business day pursuant to § 23.154, in a form that complies with § 23.156, and pursuant to custodial arrangements that comply with § 23.157, until such uncleared swap is terminated or expires. (3) Minimum transfer amount. A covered swap entity is not required to collect or to post initial margin pursuant to §§ 23.150 through 23.161 with respect to a particular counterparty unless and until the combined amount of initial margin and variation margin that is required pursuant to §§ 23.150 through 23.161 to be collected or posted and that has not been collected or posted with respect to the counterp… | ||||
| 17:17:1.0.1.1.22.3.7.12 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.153 Collection and posting of variation margin. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 86 FR 6857, Jan. 25, 2021] | (a) Initial obligation. On or before the business day after the day of execution of an uncleared swap between a covered swap entity and a counterparty that is a swap entity or a financial end user, the covered swap entity shall collect the variation margin amount from the counterparty when the amount is positive, or post the variation margin amount with the counterparty when the amount is negative as calculated pursuant to § 23.155 and in a form that complies with § 23.156. (b) Continuing obligation. The covered swap entity shall continue to collect the variation margin amount from, or to post the variation margin amount with, the counterparty as calculated each business day pursuant to § 23.155 and in a form that complies with § 23.156 each business day until such uncleared swap is terminated or expires. (c) Minimum transfer amount. A covered swap entity is not required to collect or to post variation margin pursuant to §§ 23.150 through 23.161 with respect to a particular counterparty unless and until the combined amount of initial margin and variation margin that is required pursuant to §§ 23.150 through 23.161 to be collected or posted and that has not been collected or posted with respect to the counterparty is greater than the minimum transfer amount, as the term is defined in § 23.151. (d) Netting. (1) To the extent that more than one uncleared swap is executed pursuant to an eligible master netting agreement between a covered swap entity and a counterparty, a covered swap entity may calculate and comply with the applicable variation margin requirements of this section on an aggregate basis with respect to all uncleared swaps governed by such agreement subject to paragraph (d)(2) of this section. (2)(i) Except as permitted in paragraph (d)(2)(ii) of this section, if an eligible master netting agreement covers uncleared swaps entered into on or after the applicable compliance date set forth in § 23.161, all the uncleared swaps covered by that agreement are subject to the requirements of §§ 23.15… | ||||
| 17:17:1.0.1.1.22.3.7.13 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.154 Calculation of initial margin. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 86 FR 246, Jan. 5, 2021] | (a) Means of calculation. (1) Each business day each covered swap entity shall calculate an initial margin amount to be collected from each covered counterparty using: (i) A risk-based model that meets the requirements of paragraph (b) of this section; or (ii) The table-based method set forth in paragraph (c) of this section. (2) Each business day each covered swap entity shall calculate an initial margin amount to be posted with each financial end user with material swaps exposure using: (i) A risk-based model that meets the requirements of paragraph (b) of this section; or (ii) The table-based method set forth in paragraph (c) of this section. (3) Each covered swap entity may reduce the amounts calculated pursuant to paragraphs (a)(1) and (2) of this section by the initial margin threshold amount provided that the reduction does not include any portion of the initial margin threshold amount already applied by the covered swap entity or its margin affiliates in connection with other uncleared swaps with the counterparty or its margin affiliates. (4) The amounts calculated pursuant to paragraph (a)(3) of this section shall not be less than zero. (5) A covered swap entity would be deemed to calculate initial margin as required by paragraph (a)(1) of this section if it uses the amount of initial margin calculated by a counterparty that is a swap entity and the initial margin amount is calculated using the swap entity's risk-based model that meets the requirements of paragraph (b) of this section or is approved by a prudential regulator, provided that initial margin calculated in such manner is used only with respect to uncleared swaps entered into by the covered swap entity and the swap entity for the purpose of hedging the covered swap entity's swaps with non-swap entity counterparties. (b) Risk-based models —(1) Commission or registered futures association approval. (i) A covered swap entity shall obtain the written approval of the Commission or a registered futures association to use a model to cal… | ||||
| 17:17:1.0.1.1.22.3.7.14 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.155 Calculation of variation margin. | CFTC | (a) Means of calculation. (1) Each business day each covered swap entity shall calculate variation margin for itself and for each counterparty that is a swap entity or a financial end user using methods, procedures, rules, and inputs that to the maximum extent practicable rely on recently-executed transactions, valuations provided by independent third parties, or other objective criteria. (2) Each covered swap entity shall have in place alternative methods for determining the value of an uncleared swap in the event of the unavailability or other failure of any input required to value a swap. (b) Control mechanisms. (1) Each covered swap entity shall create and maintain documentation setting forth the variation methodology with sufficient specificity to allow the counterparty, the Commission, the registered futures association, and any applicable prudential regulator to calculate a reasonable approximation of the margin requirement independently. (2) Each covered swap entity shall evaluate the reliability of its data sources at least annually, and make adjustments, as appropriate. (3) The Commission or the registered futures association at any time may require a covered swap entity to provide further data or analysis concerning the methodology or a data source, including: (i) An explanation of the manner in which the methodology meets the requirements of this section; (ii) A description of the mechanics of the methodology; (iii) The conceptual basis of the methodology; (iv) The empirical support for the methodology; and (v) The empirical support for the assessment of the data sources. | |||||
| 17:17:1.0.1.1.22.3.7.15 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.156 Forms of margin. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 82 FR 56169, Nov. 28, 2017] | (a) Initial margin —(1) Eligible collateral. A covered swap entity shall collect and post as initial margin for trades with a covered counterparty only the following types of collateral: (i) Immediately available cash funds denominated in: (A) U.S. dollars; (B) A major currency; (C) A currency of settlement for the uncleared swap; (ii) A security that is issued by, or unconditionally guaranteed as to the timely payment of principal and interest by, the U.S. Department of Treasury; (iii) A security that is issued by, or unconditionally guaranteed as to the timely payment of principal and interest by, a U.S. government agency (other than the U.S. Department of Treasury) whose obligations are fully guaranteed by the full faith and credit of the U.S. government; (iv) A security that is issued by, or fully guaranteed as to the payment of principal and interest by, the European Central Bank or a sovereign entity that is assigned no higher than a 20 percent risk weight under the capital rules applicable to swap dealers subject to regulation by a prudential regulator; (v) A publicly traded debt security issued by, or an asset-backed security fully guaranteed as to the timely payment of principal and interest by, a U.S. Government-sponsored enterprise that is operating with capital support or another form of direct financial assistance received from the U.S. government that enables the repayments of the U.S. Government-sponsored enterprise's eligible securities; (vi) A security that is issued by, or fully guaranteed as to the payment of principal and interest by, the Bank for International Settlements, the International Monetary Fund, or a multilateral development bank; (vii) Other publicly-traded debt that has been deemed acceptable as initial margin by a prudential regulator; (viii) A publicly traded common equity security that is included in: (A) The Standard & Poor's Composite 1500 Index or any other similar index of liquid and readily marketable equity securities as determined by the Commission; or (B… | ||||
| 17:17:1.0.1.1.22.3.7.16 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.157 Custodial arrangements. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 85 FR 27678, May 11, 2020] | (a) Initial margin posted by covered swap entities. Each covered swap entity that posts initial margin with respect to an uncleared swap shall require that all funds or other property that the covered swap entity provides as initial margin be held by one or more custodians that are not the covered swap entity, the counterparty, or margin affiliates of the covered swap entity or the counterparty. (b) Initial margin collected by covered swap entities. Each covered swap entity that collects initial margin required by § 23.152 with respect to an uncleared swap shall require that such initial margin be held by one or more custodians that are not the covered swap entity, the counterparty, or margin affiliates of the covered swap entity or the counterparty. (c) Custodial agreement. Each covered swap entity shall enter into an agreement with each custodian that holds funds pursuant to paragraphs (a) or (b) of this section that: (1) Prohibits the custodian from rehypothecating, repledging, reusing, or otherwise transferring (through securities lending, securities borrowing, repurchase agreement, reverse repurchase agreement or other means) the collateral held by the custodian except that cash collateral may be held in a general deposit account with the custodian if the funds in the account are used to purchase an asset described in § 23.156(a)(1)(ii) through (x), such asset is held in compliance with this section, and such purchase takes place within a time period reasonably necessary to consummate such purchase after the cash collateral is posted as initial margin; and (2) Is a legal, valid, binding, and enforceable agreement under the laws of all relevant jurisdictions including in the event of bankruptcy, insolvency, or a similar proceeding. (3) Notwithstanding paragraph (c)(1) of this section, a custody agreement may permit the posting party to substitute or direct any reinvestment of posted collateral held by the custodian, provided that, with respect to collateral posted or collected pursuant to § 23.152,… | ||||
| 17:17:1.0.1.1.22.3.7.17 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.158 Margin documentation. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 86 FR 6858, Jan. 25, 2021] | (a) General requirement. Each covered swap entity shall execute documentation with each counterparty that complies with the requirements of § 23.504 and that complies with this section, as applicable. For uncleared swaps between a covered swap entity and a counterparty that is a swap entity or a financial end user, the documentation shall provide the covered swap entity with the contractual right and obligation to exchange initial margin and variation margin in such amounts, in such form, and under such circumstances as are required by §§ 23.150 through 23.161. With respect to the minimum transfer amount, if a covered swap entity and a counterparty that is a swap entity or a financial end user agree to have separate minimum transfer amounts for initial and variation margin, the documentation shall specify the amounts to be allocated for initial margin and variation margin. Such amounts, on a combined basis, must not exceed the minimum transfer amount, as the term is defined in § 23.151. (b) Contents of the documentation. The margin documentation shall: (1) Specify the methods, procedures, rules, inputs, and data sources to be used for determining the value of uncleared swaps for purposes of calculating variation margin; (2) Describe the methods, procedures, rules, inputs, and data sources to be used to calculate initial margin for uncleared swaps entered into between the covered swap entity and the counterparty; and (3) Specify the procedures by which any disputes concerning the valuation of uncleared swaps, or the valuation of assets collected or posted as initial margin or variation margin may be resolved. | ||||
| 17:17:1.0.1.1.22.3.7.18 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.159 Special rules for affiliates. | CFTC | (a) Initial margin. (1) Except as provided in paragraph (c) of this section, a covered swap entity shall not be required to collect initial margin from a margin affiliate provided that the covered swap entity meets the following conditions: (i) The swaps are subject to a centralized risk management program that is reasonably designed to monitor and to manage the risks associated with the inter-affiliate swaps; and (ii) The covered swap entity exchanges variation margin with the margin affiliate in accordance with paragraph (b) of this section. (2)(i) A covered swap entity shall post initial margin to any margin affiliate that is a swap entity subject to the rules of a Prudential Regulator in an amount equal to the amount that the swap entity is required to collect from the covered swap entity pursuant to the rules of the Prudential Regulator. (ii) A covered swap entity shall not be required to post initial margin to any other margin affiliate pursuant to §§ 23.150 through 23.161. (b) Variation margin. Each covered swap entity shall post and collect variation margin with each margin affiliate that is a swap entity or a financial end user in accordance with all applicable provisions of §§ 23.150 through 23.161. (c) Foreign margin affiliates. (1) For purposes of this section, the term outward facing margin affiliate means a margin affiliate that enters into swaps with third parties. (2) Except as provided in paragraph (c)(3) of this section, each covered swap entity shall collect initial margin in accordance with all applicable provisions of §§ 23.150 through 23.161 from each margin affiliate that meets the following criteria: (i) The margin affiliate is a financial end user; (ii) The margin affiliate enters into swaps with third parties, or enters into swaps with any other margin affiliate that, directly or indirectly (including through a series of transactions), enters into swaps with third parties, for which the provisions of §§ 23.150 through 23.161 would apply if any such margin affiliate were a … | |||||
| 17:17:1.0.1.1.22.3.7.19 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.160 Cross-border application. | CFTC | [81 FR 34847, May 31, 2016, as amended at 89 FR 71810, Sept. 4, 2024] | (a) Definitions. For purposes of this section only: (1) Foreign Consolidated Subsidiary means a non-U.S. CSE in which an ultimate parent entity that is a U.S. person has a controlling financial interest, in accordance with U.S. GAAP, such that the U.S. ultimate parent entity includes the non-U.S. CSE's operating results, financial position and statement of cash flows in the U.S. ultimate parent entity's consolidated financial statements, in accordance with U.S. GAAP. (2) Guarantee means an arrangement pursuant to which one party to an uncleared swap has rights of recourse against a guarantor, with respect to its counterparty's obligations under the uncleared swap. For these purposes, a party to an uncleared swap has rights of recourse against a guarantor if the party has a conditional or unconditional legally enforceable right to receive or otherwise collect, in whole or in part, payments from the guarantor with respect to its counterparty's obligations under the uncleared swap. In addition, in the case of any arrangement pursuant to which the guarantor has a conditional or unconditional legally enforceable right to receive or otherwise collect, in whole or in part, payments from any other guarantor with respect to the counterparty's obligations under the uncleared swap, such arrangement will be deemed a guarantee of the counterparty's obligations under the uncleared swap by the other guarantor. (3) International standards mean the margin policy framework for non-cleared, bilateral derivatives issued by the Basel Committee on Banking Supervision and the International Organization of Securities in September 2013, as subsequently updated, revised, or otherwise amended, or any other international standards, principles or guidance relating to margin requirements for non-cleared, bilateral derivatives that the Commission may in the future recognize, to the extent that they are consistent with United States law (including the margin requirements in the Commodity Exchange Act). (4) Non-U.S. CSE means a cov… | ||||
| 17:17:1.0.1.1.22.3.7.2 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.101 Minimum financial requirements for swap dealers and major swap participants. | CFTC | [85 FR 57548, Sept. 15, 2020, as amended at 89 FR 45586, May 23, 2024] | (a)(1) Except as provided in paragraphs (a)(2) through (a)(5) of this section, each swap dealer must elect to be subject to the minimum capital requirements set forth in either paragraphs (a)(1)(i) or (a)(1)(ii) of this section: (i) A swap dealer that elects to meet the capital requirements in this paragraph (a)(1)(i) must at all times maintain regulatory capital that meets the following: (A) $20 million of common equity tier 1 capital, as defined under the bank holding company regulations in 12 CFR 217.20, as if the swap dealer itself were a bank holding company subject to 12 CFR part 217; (B) An aggregate of common equity tier 1 capital, additional tier 1 capital, and tier 2 capital, all as defined under the bank holding company regulations in 12 CFR 217.20, equal to or greater than eight percent of the swap dealer's BHC equivalent risk-weighted assets; provided, however, that the swap dealer must maintain a minimum of common equity tier 1 capital equal to six point five percent of its BHC equivalent risk-weighted assets; provided further, that any capital that is subordinated debt under 12 CFR 217.20 and that is included in the swap dealer's capital for purposes of this paragraph (a)(1)(i)(B) must qualify as subordinated debt under § 240.18a-1d of this title in accordance with a qualification determination of the Commission or a registered futures association of which the swap dealer is a member; (C) An aggregate of common equity tier 1 capital, additional tier 1 capital, and tier 2 capital, all as defined under the bank holding company regulations in 12 CFR 217.20, equal to or greater than eight percent of the amount of uncleared swap margin, as that term is defined in § 23.100 of this part, for each uncleared swap position open on the books of the swap dealer, computed on a counterparty by counterparty basis pursuant to § 23.154 of this part; and (D) The amount of capital required by a registered futures association of which the swap dealer is a member. (ii)(A) A swap dealer that elects to meet the… | ||||
| 17:17:1.0.1.1.22.3.7.20 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.161 Compliance dates. | CFTC | [81 FR 695, Jan. 6, 2016, as amended at 83 FR 60346, Nov. 26, 2018; 84 FR 12071, Apr. 1, 2019; 85 FR 19882, Apr. 9, 2020; 85 FR 41352, July 10, 2020; 85 FR 71251, Nov. 9, 2020] | (a) Covered swap entities shall comply with the minimum margin requirements for uncleared swaps on or before the following dates for uncleared swaps entered into on or after the following dates: (1) September 1, 2016 for the requirements in § 23.152 for initial margin and in § 23.153 for variation margin for any uncleared swaps where both— (i) The covered swap entity combined with all its margin affiliates; and (ii) Its counterparty combined with all its margin affiliates, have an average daily aggregate notional amount of uncleared swaps, uncleared security-based swaps, foreign exchange forwards, and foreign exchange swaps in March, April, and May 2016 that exceeds $3 trillion, where such amounts are calculated only for business days; and where (iii) In calculating the amounts in paragraphs (a)(1)(i) and (ii) of this section, an entity shall count the average daily notional amount of an uncleared swap, an uncleared security-based swap, a foreign-exchange forward, or a foreign exchange swap between the entity and a margin affiliate only one time and shall not count a swap that is exempt pursuant to § 23.150(b) or a security-based swap that is exempt pursuant to section 15F(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-10(e)). (2) March 1, 2017 for the requirements in § 23.153 for variation margin for any other covered swap entity for uncleared swaps entered into with any other counterparty. (3) September 1, 2017 for the requirements in § 23.152 for initial margin for any uncleared swaps where both— (i) The covered swap entity combined with all its margin affiliates; and (ii) Its counterparty combined with all its margin affiliates, have an average daily aggregate notional amount of uncleared swaps, uncleared security-based swaps, foreign exchange forwards, and foreign exchange swaps in March, April, and May 2017 that exceeds $2.25 trillion, where such amounts are calculated only for business days; and where (iii) In calculating the amounts in paragraphs (a)(3)(i) and (ii) of this section, an e… | ||||
| 17:17:1.0.1.1.22.3.7.21 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | §§ 23.162-23.199 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.22.3.7.3 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.102 Calculation of market risk exposure requirement and credit risk exposure requirement using internal models. | CFTC | [85 FR 57550, Sept. 15, 2020, as amended at 89 FR 45586, May 23, 2024; 89 FR 71810, Sept. 4, 2024] | (a) A swap dealer may apply to the Commission or to a registered futures association of which the swap dealer is a member to obtain approval to use internal models under terms and conditions required by the Commission or the registered futures association and by these regulations, when calculating the swap dealer's market risk exposure and credit risk exposure under §§ 23.101(a)(1)(i)(B), 23.101(a)(1)(ii)(A), or 23.101(a)(2)(ii)(A); Provided however, that the Commission must issue a determination that the registered futures association's model requirements and review process are comparable to the Commission's requirements and review process in order for the registered futures association's model approval to be accepted as an alternative means of compliance with this section. (b) The swap dealer's application to use internal models to compute market risk exposure and credit risk exposure must be in writing and must be filed with the Commission and with a registered futures association of which the swap dealer is a member. The swap dealer must file the application in accordance with instructions established by the Commission and the registered futures association. (c) A swap dealer's application must include the following: (1) In the case of a swap dealer subject to the minimum capital requirements in § 23.101(a)(1)(i) applying to use internal models to compute market risk exposure, the information required under subpart F of 12 CFR part 217, as if the swap dealer were itself a bank holding company subject to 12 CFR part 217. (2) In the case of a swap dealer subject to the minimum capital requirements in § 23.101(a)(1)(i) applying to use internal models to compute credit risk exposure, the information required under subpart E of 12 CFR part 217 in order to calculate credit risk-weighted assets in accordance with sections 217.131 through 217.155 of that subpart, as if the swap dealer were itself a bank holding company subject to 12 CFR part 217. (3) In the case of a swap dealer subject to the minimum capital … | ||||
| 17:17:1.0.1.1.22.3.7.4 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.103 Calculation of market risk exposure requirement and credit risk requirement when models are not approved. | CFTC | [85 FR 57551, Sept. 15, 2020, as amended at 89 FR 45586, May 23, 2024] | (a) Non-model approach. A swap dealer that: (1) Computes its regulatory capital requirements under § 23.101(a)(1)(ii) or (a)(2), and (2) Either: (A) has not received approval from the Commission or from a registered futures association of which the swap dealer is a member to compute its market risk exposure requirement and/or credit risk exposure requirement pursuant to internal models under § 23.102, or (B) has had its approval to compute its market risk exposure requirement and/or credit risk exposure requirement pursuant to internal models under § 23.102 revoked by the Commission or registered futures association must compute its market risk exposure requirement and/or credit risk exposure requirement pursuant to paragraphs (b) and/or (c) of this section. (b) Market risk exposure requirements. (1) A swap dealer that computes its regulatory capital under § 23.101(a)(1)(ii) or (a)(2) shall compute a market risk capital charge for the positions that the swap dealer holds in its proprietary accounts using the applicable standardized market risk charges set forth in § 240.18a-1 of this title and § 1.17 of this chapter for such positions. (2) In computing its net capital under § 23.101(a)(1)(ii), a swap dealer shall deduct from its tentative net capital the sum of the market risk capital charges computed under paragraph (b)(1) of this section. (3) In computing its minimum capital requirement under § 23.101(a)(2), a swap dealer must add the amount of the market risk capital charge computed under this section to the $20 million minimum capital requirement. (c) Credit risk charges. (1) A swap dealer that computes regulatory capital under § 23.101(a)(1)(ii) or (a)(2) shall compute counterparty credit risk charges using the applicable standardized credit risk charges set forth in § 240.18a-1 of this title and § 1.17 of this chapter for such positions. (2) In computing its net capital under § 23.101(a)(1)(ii), a swap dealer shall reduce its tentative net capital by the sum of the counterparty credit risk … | ||||
| 17:17:1.0.1.1.22.3.7.5 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.104 Equity Withdrawal Restrictions. | CFTC | [85 FR 57551, Sept. 15, 2020] | (a) Equity withdrawal restrictions. The capital of a swap dealer, including the capital of any affiliate or subsidiary whose liabilities or obligations are guaranteed, endorsed, or assumed by the swap dealer may not be withdrawn by action of the swap dealer or its equity holders, or by redemption of shares of stock by the swap dealer or by such affiliates or subsidiaries, or through the payment of dividends or any similar distribution, nor may any unsecured advance or loan be made to an equity holder or employee if, after giving effect thereto and to any other such withdrawals, advances, or loans which are scheduled to occur within six months following such withdrawal, advance or loan, the swap dealer's regulatory capital is less than 120 percent of the minimum regulatory capital required under § 23.101 of this part. The equity withdrawal restrictions, however, do not preclude a swap dealer from making required tax payments or from paying reasonable compensation to equity holders. The Commission may, upon application by the swap dealer, grant relief from this paragraph (a) if the Commission deems such relief to be in the public interest. (b) Temporary equity withdrawal restrictions by Commission order. (1) The Commission may by order restrict, for a period of up to twenty business days, any withdrawal by a swap dealer of capital or any unsecured loan or advance to a stockholder, partner, member, employee or affiliate under such terms and conditions as the Commission deems appropriate in the public interest if the Commission, based on the information available, concludes that such withdrawal, loan or advance may be detrimental to the financial integrity of the swap dealer, or may unduly jeopardize the swap dealer's ability to meet its financial obligations to counterparties or to pay other liabilities which may cause a significant impact on the markets or expose the counterparties and creditors of the swap dealer to loss. (2) An order temporarily prohibiting the withdrawal of capital shall be rescinded if th… | ||||
| 17:17:1.0.1.1.22.3.7.6 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.105 Financial recordkeeping, reporting and notification requirements for swap dealers and major swap participants. | CFTC | [85 FR 57551, Sept. 15, 2020, as amended at 89 FR 45586, May 23, 2024] | (a) Scope. (1) Except as provided in paragraphs (a)(2) and (a)(3) of this section, a swap dealer or major swap participant must comply with the applicable requirements set forth in paragraphs (b) through (p) of this section. (2) The requirements in paragraphs (b) through (o) of this section do not apply to any swap dealer or major swap participant that is subject to the capital requirements of a prudential regulator. (3) The requirements in paragraph (p) of this section do not apply to any swap dealer or major swap participant that is subject to the capital requirements of the Commission. (b) Current books and records. A swap dealer or major swap participant shall prepare and keep current ledgers or other similar records which show or summarize, with appropriate references to supporting documents, each transaction affecting its asset, liability, income, expense, and capital accounts, and in which all its asset, liability, and capital accounts are classified in accordance with U.S. generally accepted accounting principles, and as otherwise may be necessary for the capital calculations required under § 23.101 of this part: Provided, however, that a swap dealer or major swap participant that is not otherwise required to prepare financial statements in accordance with U.S. generally accepted accounting principles, may prepare and keep records required by this section in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. Such records must be maintained in accordance with § 1.31 of this chapter. (c) Notices. (1) A swap dealer or major swap participant who knows or should have known that its regulatory capital at any time is less than the minimum required by § 23.101 of this part, must: (i) Provide immediate written notice to the Commission and to the registered futures association of which it is a member that the swap dealer's or major swap participant's regulatory capital is less than that required by § 23.101 of this part; and (ii) Provide… | ||||
| 17:17:1.0.1.1.22.3.7.7 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.106 Substituted compliance for swap dealer's and major swap participant's capital and financial reporting. | CFTC | [85 FR 57556, Sept. 15, 2020] | (a)(1) Eligibility requirements. The following persons may, either individually or collectively, request a Capital Comparability Determination with respect to the Commission's capital adequacy and financial reporting requirements for swap dealers or major swap participants: (i) A swap dealer or major swap participant that is eligible for substituted compliance under § 23.101 or a trade association or other similar group on behalf of its members who are swap dealers or major swap participants; or (ii) A foreign regulatory authority that has direct supervisory authority over one or more swap dealers or major swap participants that are eligible for substituted compliance under § 23.101, and such foreign regulatory authority is responsible for administering the relevant foreign jurisdiction's capital adequacy and financial reporting requirements over the swap dealer or major swap participant. (2) Submission requirements. A person requesting a Capital Comparability Determination must electronically submit to the Commission: (i) A description of the objectives of the relevant foreign jurisdiction's capital adequacy and financial reporting requirements over entities that are subject to the Commission's capital adequacy and financial reporting requirements in this part; (ii) A description (including specific legal and regulatory provisions) of how the relevant foreign jurisdiction's capital adequacy and financial reporting requirements address the elements of the Commission's capital adequacy and financial reporting requirements for swap dealers and major swap participants, including, at a minimum, the methodologies for establishing and calculating capital adequacy requirements and whether such methodologies comport with any international standards, including Basel-based capital requirements for banking institutions; and (iii) A description of the ability of the relevant foreign regulatory authority or authorities to supervise and enforce compliance with the relevant foreign jurisdiction's capital adequacy and … | ||||
| 17:17:1.0.1.1.22.3.7.8 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | §§ 23.107-23.149 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.22.3.7.9 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | E | Subpart E—Capital and Margin Requirements for Swap Dealers and Major Swap Participants | § 23.150 Scope. | CFTC | (a) The margin requirements set forth in §§ 23.150 through 23.161 shall apply to uncleared swaps, as defined in § 23.151, that are executed after the applicable compliance dates set forth in § 23.161. (b) The requirements set forth in §§ 23.150 through 23.161 shall not apply to a swap if the counterparty: (1) Qualifies for an exception from clearing under section 2(h)(7)(A) of the Act and implementing regulations; (2) Qualifies for an exemption from clearing under a rule, regulation, or order issued by the Commission pursuant to section 4(c)(1) of the Act concerning cooperative entities that would otherwise be subject to the requirements of section 2(h)(1)(A) of the Act; or (3) Satisfies the criteria in section 2(h)(7)(D) of the Act and implementing regulations. | |||||
| 17:17:1.0.1.1.22.4.7.1 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | F | Subpart F—Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants | § 23.200 Definitions. | CFTC | For purposes of subpart F, the following terms shall be defined as provided. (a) Business trading unit means any department, division, group, or personnel of a swap dealer or major swap participant or any of its affiliates, whether or not identified as such, that performs, or exercises supervisory authority over the performance of, any pricing (excluding price verification for risk management purposes), trading, sales, purchasing, marketing, advertising, solicitation, structuring, or brokerage activities on behalf of a registrant. (b) Clearing unit means any department, division, group, or personnel of a registrant or any of its affiliates, whether or not identified as such, that performs any proprietary or customer clearing activities on behalf of a registrant. (c) Complaint means any formal or informal complaint, grievance, criticism, or concern communicated to the swap dealer or major swap participant in any format relating to, arising from, or in connection with, any trading conduct or behavior or with the swap dealer or major swap participant's performance (or failure to perform) any of its regulatory obligations, and includes any and all observations, comments, remarks, interpretations, clarifications, notes, and examinations as to such conduct or behavior communicated or documented by the complainant, swap dealer, or major swap participant. (d) Executed means the completion of the execution process. (e) Execution means, with respect to a swap, an agreement by the parties (whether orally, in writing, electronically, or otherwise) to the terms of a swap that legally binds the parties to such swap terms under applicable law. (f) Governing body. This term means: (1) A board of directors; (2) A body performing a function similar to a board of directors; (3) Any committee of a board or body; or (4) The chief executive officer of a registrant, or any such board, body, committee, or officer of a division of a registrant, provided that the registrant's swaps activities for which registration w… | |||||
| 17:17:1.0.1.1.22.4.7.2 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | F | Subpart F—Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants | § 23.201 Required records. | CFTC | (a) Transaction and position records. Each swap dealer and major swap participant shall keep full, complete, and systematic records, together with all pertinent data and memoranda, of all its swaps activities. Such records shall include: (1) Transaction records. Records of each transaction, including all documents on which transaction information is originally recorded. Such records shall be kept in a form and manner identifiable and searchable by transaction and by counterparty, and shall include: (i) All documents customarily generated in accordance with market practice that demonstrate the existence and nature of an order or transaction, including, but not limited to, records of all orders (filled, unfilled, or cancelled); correspondence; journals; memoranda; ledgers; confirmations; risk disclosure documents; statements of purchase and sale; contracts; invoices; warehouse receipts; documents of title; and (ii) The daily trading records required to be kept in accordance with § 23.202. (2) Position records. Records of each position held by each swap dealer and major swap participant, identified by product and counterparty, including records reflecting whether each position is “long” or “short” and whether the position is cleared. Position records shall be linked to transaction records in a manner that permits identification of the transactions that established the position. (3) Records of transactions executed on a swap execution facility or designated contract market or cleared by a derivatives clearing organization. Records of each transaction executed on a swap execution facility or designated contract market or cleared by a derivatives clearing organization maintained in compliance with the Act and Commission regulations. (b) Business records. Each swap dealer and major swap participant shall keep full, complete, and systematic records of all activities related to its business as a swap dealer or major swap participant, including but not limited to: (1) Governance. (i) Minutes of meetings … | |||||
| 17:17:1.0.1.1.22.4.7.3 | 17 | Commodity and Securities Exchanges | I | 23 | PART 23—SWAP DEALERS AND MAJOR SWAP PARTICIPANTS | F | Subpart F—Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants | § 23.202 Daily trading records. | CFTC | [77 FR 20202, Apr. 3, 2012, as amended at 88 FR 8753, Feb. 10, 2023] | (a) Daily trading records for swaps. Each swap dealer and major swap participant shall make and keep daily trading records of all swaps it executes, including all documents on which transaction information is originally recorded. Each swap dealer and major swap participant shall ensure that its records include all information necessary to conduct a comprehensive and accurate trade reconstruction for each swap. Each swap dealer and major swap participant shall maintain each transaction record in a manner identifiable and searchable by transaction and counterparty. (1) Pre-execution trade information. Each swap dealer and major swap participant shall make and keep pre-execution trade information, including, at a minimum, records of all oral and written communications provided or received concerning quotes, solicitations, bids, offers, instructions, trading, and prices, that lead to the execution of a swap, whether communicated by telephone, voicemail, facsimile, instant messaging, chat rooms, electronic mail, mobile device, or other digital or electronic media. Such records shall include, but are not limited to: (i) Reliable timing data for the initiation of the trade that would permit complete and accurate trade reconstruction; and (ii) A record of the date and time, to the nearest minute, using Coordinated Universal Time (UTC), by timestamp or other timing device, for each quotation provided to, or received from, the counterparty prior to execution. (2) Execution trade information. Each swap dealer and major swap participant shall make and keep trade execution records, including: (i) All terms of each swap, including all terms regarding payment or settlement instructions, initial and variation margin requirements, option premiums, payment dates, and any other cash flows; (ii) The trade ticket for each swap (which, together with the time of execution of each swap, shall be immediately recorded electronically for further processing); (iii) The unique transaction identifier, as required by § 45.5 of thi… |
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title_number INTEGER,
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chapter TEXT,
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