(a) Except as provided in paragraph (b) of this section --

(1) Each magnetic direction indicator must be installed so that its accuracy is not excessively affected by the airplane's vibration or magnetic fields; and

(2) The compensated installation may not have a deviation in level flight, greater than ten degrees on any heading.

(b) A magnetic nonstabilized direction indicator may deviate more than ten degrees due to the operation of electrically powered systems such as electrically heated windshields if either a magnetic stabilized direction indicator, which does not have a deviation in level flight greater than ten degrees on any heading, or a gyroscopic direction indicator, is installed. Deviations of a magnetic nonstabilized direction indicator of more than 10 degrees must be placarded in accordance with §23.1547(e).