(a) An applicant for an airworthiness certificate for an aircraft in the limited category is entitled to the certificate when --

(1) He shows that the aircraft has been previously issued a limited category type certificate and that the aircraft conforms to that type certificate; and

(2) The Administrator finds, after inspection (including a flight check by the applicant), that the aircraft is in a good state of preservation and repair and is in a condition for safe operation.

(b) The Administrator prescribes limitations and conditions necessary for safe operation.