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By the following definition, which is an excerpt form the FAA advisory circular 43-11. par; 5, sub, par 2 (2), the above rebuild meets this definition:
A rebuilt engine as defined in FAR 91.175s, is a used engine that has been completely disassembled, inspected, repaired as necessary, reassembled, tested and approved in the same manner and to the same tolerances and limits as a new engine with either new or used parts. All parts used must conform to the production drawing tolerances and limits for new parts or be of approved oversized dimensions for a new engine.
In addition, all hardware that will lend itself to plating
is plated: all parts are painted to give an appearance as good as, or in
our opinion better than, new.