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Department of the

Treasury

Fiscal Service, Bureau of the Public Debt

Offering and Governing Regulations for Series EE and Series I


Savings Bonds, TreasuryDirect

Amendments to:

31 CFR Part 351, Department Circular, Public Debt Series 1-80


31 CFR Part 353, Department Circular, Public Debt Series 3-80
31 CFR Part 359, Department Circular, Public Debt Series 1-98
31 CFR Part 360, Department Circular, Public Debt Series 2-98
31 CFR Part 363

As Amended December 3, 2007


Federal Register / Vol. 72, No. 231 / Monday, December 3, 2007 / Rules and Regulations 67853

DEPARTMENT OF THE TREASURY and conducting transactions in Treasury purchased in the name and TIN of any
securities. Reducing the cap on yearly person in any calendar year is limited
Fiscal Service purchases will not affect the vast to $5,000.
majority of current savings bond * * * * *
31 CFR Parts 351, 353, 359, 360, and purchasers, approximately 98 percent of ■ 3. Revise § 351.65 to read as follows:
363 whom buy less than $5,000, our new
cap, annually. § 351.65 What amount of book-entry
Offering and Governing Regulations Series EE savings bonds may I acquire per
for Series EE and Series I Savings Procedural Requirements year?
Bonds, TreasuryDirect This final rule does not meet the The principal amount of book-entry
AGENCY: Bureau of the Public Debt, criteria for a ‘‘significant regulatory Series EE savings bonds that you may
Fiscal Service, Treasury. action’’ as defined in Executive Order acquire in your name and TIN per
12866. Therefore, a regulatory calendar year is limited to $5,000.
ACTION: Final rule.
assessment is not required.
SUMMARY: This rule lowers the annual Because this final rule relates to PART 353—REGULATIONS
purchase limitation per person for matters of public contract and GOVERNING DEFINITIVE UNITED
Series EE and Series I savings bonds, procedures for United States securities, STATES SAVINGS BONDS, SERIES EE
and eliminates the definitive $10,000 notice and public procedure and AND HH
denomination for Series I savings bonds. delayed effective date requirements are
inapplicable, pursuant to 5 U.S.C. ■ 4. The authority citation for Part 353
DATES: Effective: January 1, 2008. continues to read as follows:
ADDRESSES: You can download this final
553(a)(2).
As no notice of proposed rulemaking Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31
rule at the following Internet addresses: U.S.C. 3105, 3125.
is required, the Regulatory Flexibility
http://www.publicdebt.treas.gov or
Act (5 U.S.C. 601 et seq.) does not ■ 5. Revise the heading for Part 353 to
http://www.gpoaccess.gov/ecfr.
apply. read as set forth above.
FOR FURTHER INFORMATION CONTACT: We ask for no new collections of
Elisha Whipkey, Director, Division of ■ 6. Amend § 353.10 by revising
information in this final rule. Therefore,
Program Administration, Office of paragraph (a)(1) to read as follows:
the Paperwork Reduction Act (44 U.S.C.
Securities Operations, Bureau of the 3507) does not apply. § 353.10 Amounts which may be
Public Debt, at (304) 480–6319 or purchased.
elisha.whipkey@bpd.treas.gov. List of Subjects
Susan Sharp, Attorney-Adviser, Dean * * * * *
31 CFR Part 351 (a) Series EE—(1) General annual
Adams, Assistant Chief Counsel,
Edward Gronseth, Deputy Chief Bonds, Federal Reserve system, limitation. $5,000 (principal amount).
Counsel, Office of the Chief Counsel, Government securities. * * * * *
Bureau of the Public Debt, at (304) 480– 31 CFR Part 353
8692 or susan.sharp@bpd.treas.gov. PART 359—OFFERING OF UNITED
Banks and banking, Government STATES SAVINGS BONDS, SERIES I
SUPPLEMENTARY INFORMATION: This rule
securities, Federal Reserve system.
lowers the annual purchase limitation ■ 7. The authority citation for part 359
for Series EE and Series I savings bonds. 31 CFR Part 359 continues to read as follows:
Prior to this rule, an investor could Bonds, Federal Reserve system, Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31
purchase $30,000 each of definitive and Government securities, Securities. U.S.C. 3105.
book-entry Series EE savings bonds and
$30,000 each of definitive and book- 31 CFR Part 360 ■ 8. Revise the first sentence of § 359.25
entry Series I savings bonds per person, Bonds, Federal Reserve system, to read as follows:
per calendar year. This rule will permit Government securities, Securities. § 359.25 What are the denominations and
an investor to purchase a principal prices of definitive Series I savings bonds?
amount of $5,000 each of definitive and 31 CFR Part 363
Definitive Series I saving bonds are
book-entry Series EE savings bonds and Bonds, Electronic funds transfer,
issued in denominations of $50, $75,
$5,000 each of definitive and book-entry Federal Reserve system, Government
$100, $200, $500, $1,000, and
Series I savings bonds per person, per securities, Securities.
$5,000. * * *
calendar year. As a result of the change ■ Accordingly, for the reasons set out in
in the annual purchase limitation, we ■ 9. Revise § 359.29 to read as follows:
the preamble, 31 CFR Chapter II,
are withdrawing the $10,000 Series I Subchapter B, is amended as follows: § 359.29 What amount of definitive Series
definitive savings bond denomination I savings bonds may I purchase per year?
on original issue. PART 351—OFFERING OF UNITED The principal amount of definitive
The change will permit Treasury to STATES SAVINGS BONDS, SERIES EE Series I savings bonds that may be
continue to offer savings options for purchased in the name and TIN of any
investors with limited means and ■ 1. The authority citation for Part 351
continues to read as follows: person in any calendar year is limited
market opportunities, while to $5,000.
encouraging those with greater financial Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31
U.S.C. 3105. ■ 10. Revise § 359.50 to read as follows:
resources to participate in marketable
Treasury securities auctions, which are ■ 2. Amend § 351.44 by revising the first § 359.50 What amount of book-entry
a more efficient means for Treasury to sentence to read as follows: Series I savings bonds may I acquire per
yshivers on PROD1PC62 with RULES

issue debt. Both savings bonds and year?


marketable securities are offered to § 351.44 What amount of definitive Series The principal amount of book-entry
individuals through TreasuryDirect, EE savings bonds may I purchase per year? Series I savings bonds that you may
which is an internet-accessed, book- The principal amount of definitive acquire in your name and TIN in any
entry system for purchasing, holding, Series EE savings bonds that may be calendar year is limited to $5,000.

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67854 Federal Register / Vol. 72, No. 231 / Monday, December 3, 2007 / Rules and Regulations

PART 360—REGULATIONS
GOVERNING DEFINITIVE UNITED
STATES SAVINGS BONDS, SERIES I

■ 11. The authority citation for Part 360


continues to read as follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 3105
and 3125.

■ 12. Amend § 360.10 by revising


paragraph (a) to read as follows:
§ 360.10 Amounts which may be
purchased.
* * * * *
(a) General annual limitation, $5,000
(par value).
* * * * *

PART 363—REGULATIONS
GOVERNING SECURITIES HELD IN
TREASURYDIRECT

■ 13. The authority citation for part 363


continues to read as follows:
Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31
U.S.C. 3102, et seq.; 31 U.S.C. 3121, et seq.

■ 14. Amend § 363.52 by revising the


heading and paragraph (a) to read as
follows:
§ 363.52 What amount of book-entry
Series EE and Series I savings bonds may
I purchase in one year?
(a) Purchase limitation. The amount
of book-entry savings bonds that you
may purchase in any calendar year is
limited to $5,000 for Series EE savings
bonds and $5,000 for Series I savings
bonds.
* * * * *
Dated: August 16, 2007.
Kenneth E. Carfine,
Fiscal Assistant Secretary.
[FR Doc. 07–5888 Filed 11–30–07; 8:45 am]
BILLING CODE 4810–39–M
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Department of the
Treasury

Fiscal Service, Bureau of the Public Debt

31 CFR Part 363, as revised and amended


Regulations Governing Securities Held in TreasuryDirect®

As of July 2007
Fiscal Service, Treasury Pt. 363

PART 363—REGULATIONS GOV-


ERNING SECURITIES HELD IN
TREASURYDIRECT
Subpart A—General
Sec.
363.0 What is the TreasuryDirect  system?
363.1 What Treasury securities are covered
by these regulations?
363.2 What agency administers
TreasuryDirect ?
363.3 [Reserved]
363.4 How is TreasuryDirect  different from
the Legacy Treasury Direct system and
the commercial book-entry system?
363.5 How do I contact Public Debt?
363.6 What special terms do I need to know
to understand this part?
363.7–363.8 [Reserved]

Subpart B—General Provisions Governing


Securities Held in TreasuryDirect
363.9 What does this subpart cover?
363.10 What is a TreasuryDirect  account?
363.11 Who is eligible to open a
TreasuryDirect  account?
363.12 Who may purchase and hold book-
entry securities in TreasuryDirect ?
363.13 How can I open a TreasuryDirect  ac-
count?
363.14 How will you verify my identity?
363.15 What is the procedure for offline
verification?
363.16 How do I access my account?
363.17 Who is liable if someone else accesses
my TreasuryDirect  account using my
password?

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Pt. 363 31 CFR Ch. II (7–1–07 Edition)
363.18 Is Public Debt liable if the electronic Subpart C—Book-Entry Savings Bonds
transmission of my data is intercepted? Purchased Through TreasuryDirect
363.19 What should I do if I become aware
that my password or other form of au- GENERAL
thentication has become compromised?
363.50 What Treasury securities does this
363.20 What do I need to know about the
subpart cover?
forms of registration that are available
363.51 [Reserved]
for purchases of securities through my
363.52 What amount of book-entry Series
TreasuryDirect  account?
EE and I savings bonds may I purchase in
363.21 What transactions can I perform on-
one year?
line through my TreasuryDirect  ac-
363.53 What is the minimum amount of
count?
book-entry savings bonds that I may pur-
363.22 Who has the right to conduct online
chase in any transaction?
transactions in book-entry securities?
363.54 What is the minimum amount of a
363.23–363.24 [Reserved]
book-entry savings bond that I must hold
363.25 How do I conduct transactions in my
in my account?
account or in Treasury securities held in
363.55 May I transfer my book-entry savings
my account?
bonds to another person?
363.26 What is a transfer?
363.56 What is the minimum amount of
363.27 What do I need to know about ac-
book-entry savings bonds that I may
counts for minors who have not had a
transfer in any one transaction?
legal guardian appointed by a court?
363.57 What is the minimum amount of
363.28 Does Public Debt reserve the right to
book-entry savings bonds that I may re-
require that any TreasuryDirect  trans-
deem in any one transaction?
action be conducted in paper form?
363.58 May book-entry savings bonds be
363.29 May Treasury close an account, sus-
pledged or used as collateral?
pend transactions in an account, or
363.59–363.82 [Reserved]
refuse to open an account?
363.30–363.32 [Reserved] MINORS
363.33 Can an attorney-in-fact conduct
transactions in my TreasuryDirect  ac- 363.83 May an account owner transfer a
count? book-entry savings bond to a minor?
363.34 What happens if an owner becomes in- 363.84–363.94 [Reserved]
competent after opening a
GIFTS
TreasuryDirect  account?
363.35 When is a transaction effective? 363.95 How may I give a book-entry savings
363.36 What securities can I purchase and bond as a gift?
hold in my TreasuryDirect  account? 363.96 What do I need to know if I initially
363.37 How do I purchase and make payment purchase a bonds as a gift?
for eligible Treasury securities through 363.97 What do I need to know if I transfer
my TreasuryDirect  account? a book-entry savings bond to another
363.38 What happens if my financial institu- person as a gift?
tion returns an ACH debit? 363.98 [Reserved]
363.39 Will I receive a confirmation of my 363.99 What is the minimum amount of a
request to purchase a Treasury security? bond that I may transfer or deliver as a
363.40 How are payments of principal and gift in any one transaction?
interest made? 363.100 What are the rules for purchasing
363.41 What happens if an ACH payment is and delivering gift savings bonds to mi-
returned to Public Debt? nors?
363.42 How will my interest income be re- 363.101 Can an account owner transfer a
ported for tax purposes? book-entry savings bond to a minor?
363.43 What are the procedures for certi- 363.102–363.124 [Reserved]
fying my signature on an offline applica-
tion for a TreasuryDirect  account, or PAYMENT
on an offline transaction form? 363.125 How is payment made on a book-
363.44 What happens when a entry savings bond?
TreasuryDirect  account owner dies and 363.126 Under what circumstances will pay-
the estate is entitled to securities held in ment be made?
the account? 363.127–363.129 [Reserved]
363.45 What are the rules for judicial and
administrative actions involving securi- Subpart D—Certificate of Indebtedness
ties held in TreasuryDirect ?
363.46 What evidence is required to establish 363.130 What does this subpart cover?
the validity of judicial proceedings? 363.131 What is a TreasuryDirect  certifi-
363.47 Will Public Debt pay Treasury securi- cate of indebtedness?
ties pursuant to a forfeiture proceeding? 363.132 Can the sale of the certificate of in-
363.48–363.49 [Reserved] debtedness be suspended?

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Fiscal Service, Treasury Pt. 363
363.133 What happens to my certificate of 363.170 What transactions can I conduct in a
indebtedness if the offering is terminated savings bond that I converted on which I
by the Secretary? am not registered as the owner, either
363.134 What regulations cover a certificate coowner, or owner with beneficiary?
of indebtedness? 363.171 How do I redeem a converted savings
363.135 In what form is a certificate of in- bond?
debtedness issued? 363.172–363.175 [Reserved]
363.136 Do certificates of indebtedness pay 363.176 May a converted savings bond be
interest? pledged or used as collateral?
363.137 What do I need to know about the 363.177–363.178 [Reserved]
registration of a certificate of indebted- 363.179 Does Public Debt make any reserva-
ness? tions as to the conversion of an eligible
363.138 How do I purchase a certificate of in- savings bond?
debtedness? 363.180–363.199 [Reserved]
363.139 Is Treasury liable for the purchase of
a certificate of indebtedness that is made Subpart F—Marketable Treasury Securities
in error?
363.140 When is a certificate of indebtedness 363.200 What Treasury securities does this
issued? subpart govern?
363.141 How do I purchase a security using 363.201 What other regulations govern book-
the redemption proceeds of my certifi- entry marketable book-entry Treasury
cate of indebtedness? bills, notes, and bonds?
363.142 May I redeem my certificate of in- 363.202 What marketable Treasury securi-
debtedness for cash? ties may I purchase and hold through my
363.143 What happens if an ACH payment TreasuryDirect  account?
used to purchase a certificate of indebt- 363.203 After I purchase my marketable
edness is later reversed? Treasury security in TreasuryDirect , is
363.144 May I delete a pending transaction there a period of time during which I
involving a certificate of indebtedness? may not transfer the security?
363.145 May I transfer or deliver my certifi- 363.204 What registrations are available for
cate of indebtedness? my marketable Treasury securities held
363.146 May a certificate of indebtedness be in TreasuryDirect ?
pledged or used as collateral? 363.205 How do I reinvest the proceeds of a
363.147–363.152 [Reserved] maturing security held in
TreasuryDirect ?
Subpart E—Conversion of a Definitive 363.206 How can I transfer my marketable
Savings Bond Treasury security into my
TreasuryDirect  account from another
363.160 What subparts govern the conversion book-entry system?
of definitive savings bonds? 363.207 Can I transfer my marketable Treas-
363.161 What definitive savings bonds are el- ury security from my TreasuryDirect 
igible to be converted to book-entry account to another TreasuryDirect  ac-
bonds? count?
363.162 Who may convert a definitive sav- 363.208 Can I transfer my marketable Treas-
ings bond? ury security from my TreasuryDirect 
363.163 How do I convert an eligible defini- account to an account in another book-
tive savings bond? entry system?
363.164 Is a converted savings bond eligible 363.209 How can I direct that my market-
to be converted back into a definitive able Treasury security be sold on the
bond? open market (Sell Direct )?
363.165 What happens when I convert a sav- 363.210 Is there any period of time during
ings bond that is registered in my name which I will be unable to process certain
as the owner, either coowner, or the transactions regarding my security?
owner with a beneficiary? 363.211–363.249 [Reserved]
363.166 What happens when I convert a sav-
ings bond that is not registered in my Subpart G [Reserved]
name as owner, either coowner, or owner
with beneficiary (including a bond reg- Subpart H—Miscellaneous
istered in the name of a minor)?
363.250 May Public Debt waive these regula-
363.167 How will a converted savings bond
tions?
be registered?
363.251 Can I be required to provide addi-
363.168 What rules regarding registration
tional evidence to support a transaction?
apply to a converted savings bond?
363.252 May Public Debt amend or supple-
363.169 What transactions can I conduct in a
ment these regulations?
converted savings bond on which I am
registered as the single owner, either co- AUTHORITY: 5 U.S.C. 301; 12 U.S.C. 391; 31
owner, or the owner with a beneficiary? U.S.C. 3102, et seq.; 31 U.S.C. 3121, et seq.

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§ 363.0 31 CFR Ch. II (7–1–07 Edition)
SOURCE: 67 FR 64286, Oct. 17, 2002, unless the Legacy Treasury Direct system are
otherwise noted. found at 31 CFR part 357, subpart C.
EDITORIAL NOTE: Nomenclature changes to (c) Commercial book-entry system. The
part 363 appear at 70 FR 57433, Sept. 30, 2005 commercial book-entry system is the
and 70 FR 57442, Sept. 30, 2005. book-entry system in which Treasury
securities are held in a tiered system
Subpart A—General through securities intermediaries such
as financial institutions or brokerage
§ 363.0 What is the TreasuryDirect  firms. The regulations governing the
system?
commercial book-entry system are
The TreasuryDirect system found at 31 CFR part 357, subpart B,
(TreasuryDirect) is an online account and may be referred to in that part as
system in which you may hold and con- Treasury/Reserve Automated Debt
duct transactions in eligible book- Entry System (TRADES).
entry Treasury securities.
[70 FR 57442, Sept. 30, 2005]
§ 363.1 What Treasury securities are
covered by these regulations? § 363.5 How do I contact Public Debt?
The regulations in this part apply to (a) You may use the ‘‘Contact Us’’
book-entry Treasury securities held in feature within TreasuryDirect  to
the TreasuryDirect  system. communicate information to us over a
secure Internet connection.
§ 363.2 What agency administers (b) Emails may be sent to: treas-
TreasuryDirect ?
ury.direct@bpd.treas.gov. We will reply
The Bureau of the Public Debt (Pub- by e-mail unless you request otherwise.
lic Debt), Department of the Treasury We are not responsible for the security
(Treasury) is responsible for admin- of e-mail messages you may send to us,
istering TreasuryDirect. Public Debt or replies we may send to you.
may delegate authority to process cer- (c) Letters should be addressed to:
tain transactions in TreasuryDirect to Bureau of the Public Debt,
Federal Reserve Banks and Branches as TreasuryDirect, P.O. Box 5312, Parkers-
fiscal agents of the United States. burg, WV 26106–5312.
§ 363.3 [Reserved] [67 FR 64286, Oct. 17, 2002, as amended at 70
FR 57442, Sept. 30, 2005]
§ 363.4 How is TreasuryDirect  dif-
ferent from the Legacy Treasury Di- § 363.6 What special terms do I need to
rect system and the commercial know to understand this part?
book-entry system?
Account means a TreasuryDirect  ac-
(a) TreasuryDirect. TreasuryDirect is count as described in § 363.10.
a book-entry, online system main-
Authentication means confirming that
tained by Treasury for purchasing,
the person accessing a TreasuryDirect
holding and conducting permitted
account is the same person whose iden-
transactions in eligible Treasury secu-
rities in electronic form as a computer tity was initially verified at account
record on the books of Treasury. establishment.
TreasuryDirect currently provides for Automated Clearing House (ACH)
the purchase and holding of eligible means a funds transfer system gov-
book-entry savings bonds, certificates erned by the Rules of the National
of indebtedness, and eligible market- Automated Clearing House Association
able Treasury securities. (NACHA). NACHA provides for the
(b) Legacy Treasury Direct. The Leg- interbank clearing of electronic entries
acy Treasury Direct system is a non- for participating financial institutions.
Internet-based book-entry system Beneficiary refers to the second indi-
maintained by Treasury for pur- vidual named in the registration of a
chasing, holding, and conducting per- definitive savings bond, a converted de-
mitted transactions in eligible market- finitive savings bond, or a book-entry
able Treasury securities as book-entry security purchased through the
products. The terms and conditions for TreasuryDirect system, registered, e.g.,

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Fiscal Service, Treasury § 363.6

‘‘John Doe SSN 123–45–6789 POD (pay- Definitive security means a Treasury
able on death to) Joseph Doe SSN 987– security held in paper form.
65–4321. De-link means the online process by
Book-entry security means a Treasury which all securities contained within
security maintained by us in electronic the minor linked account are moved to
or paperless form as a computer record. the minor’s primary TreasuryDirect
Business day means any day that account and the linked account is de-
funds may be settled through ACH. activated.
Certificate of Indebtedness is a one-day Delivery means moving a minimum
non-interest-bearing security held amount of $25 (consisting of principal
within your primary or linked account, and proportionate interest) of a secu-
including a minor account for which rity held as a gift from the account of
you are the custodian, that automati- the purchaser to the account of the re-
cally matures and is rolled over each cipient.
day until you request that it be re- Federal Reserve Bank (Reserve Bank)
deemed. means a Federal Reserve Bank or
Commercial book-entry system refers to Branch.
the book-entry system in which you Final maturity of a savings bond means
hold your Treasury securities in a the date beyond which an unredeemed
tiered system through securities inter- savings bond no longer earns interest.1
mediaries such as financial institutions Financial institution, or depository fi-
or brokerage firms. (See § 363.4.) nancial institution, means an entity de-
Court means a court of law with ju- scribed in 12 U.S.C. 461 (b)(1)(A)(i)–(vi).
risdiction over the parties and the sub- Gift means a Treasury security pur-
ject matter. chased for or transferred to an in-
tended recipient, without consider-
Conversion account means a linked ac-
ation.
count in TreasuryDirect that contains
Individual means a natural person.
only savings bonds that have been con-
Individual does not mean an organiza-
verted from definitive bonds to book-
tion, representative, or fiduciary.
entry bonds.
Interest on a savings bond means the
Converted savings bond means a sav- difference between the purchase price
ings bond originally issued as a defini- and the redemption value of the bond.
tive bond that has been surrendered to
Legacy Treasury Direct system is a
us and converted to a book-entry sav-
non-Internet-based book-entry system
ings bond to be maintained by Treas-
maintained by Treasury since 1986 for
ury solely as a computer record.
purchasing and holding marketable
Converting coowner is the coowner Treasury securities directly with
who initiates and completes the trans- Treasury as book-entry products. (See
action to convert a definitive savings § 363.4.)
bond to a book-entry bond through his Legal guardian of a minor or incom-
or her TreasuryDirect account. petent person refers to the court-ap-
Coowner means either of the persons pointed or otherwise qualified person,
named in the registration of a defini- regardless of title, who is legally au-
tive or a converted definitive savings thorized to act for the minor or incom-
bond, registered, e.g., ‘‘John Doe SSN petent individual.
123–45–6789 or Joseph Doe.’’ Legal representative refers to the
Custodian of a minor account means a court-appointed or otherwise qualified
person who opens an account on behalf person, regardless of title, who is le-
of the minor. (See § 363.27 for more in- gally authorized to manage and settle
formation about minor accounts.) the estate of a decedent. The term in-
Custom account means an account cludes an executor and an adminis-
that you establish for a specific pur- trator.
pose that is linked to your primary ac-
count. You use your primary account 1 Series EE and Series I savings bonds cur-
as the portal to open and access your rently have an original maturity period of 20
custom linked account. (See § 363.10 for years and an extended maturity period of 10
more information about custom ac- years beyond original maturity during which
counts.) the bonds continue to earn interest.

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§ 363.6 31 CFR Ch. II (7–1–07 Edition)

Legally incompetent means a court has Doe SSN 987–65–4321.’’ In this example,
declared an individual to be incapable John Doe is the primary owner.
of handling his or her business affairs. Principal amount means the amount
Linked account means an account of the original investment. Principal
that is a separate account from your amount does not include any interest
primary account, but connected to earned.
your primary account. You use your Recipient means the person to whom
primary account as a portal to open a gift is given.
and access the linked account. (See Redemption of a savings bond refers to
§ 363.10 for more information about the payment of principal and interest
linked accounts.) at final maturity, or prior to final ma-
Marketable Treasury security refers to turity at the option of the owner. The
a Treasury bill, note, or bond that is owner may redeem all principal and in-
negotiable and transferable, that is, terest or a portion of the principal and
may be bought and sold in the sec- the proportionate amount of interest.
ondary market. Redemption value means principal
Minor means an individual under the plus accrued interest of a bond, or a
age of 18 years. The term minor is also portion of the principal plus a propor-
used to refer to an individual who has tionate amount of accrued interest on
attained the age of 18 years but has not the bond, as of the date of redemption.
yet taken control of the securities con- Registration or Registered means that
tained in his or her minor account. the name and taxpayer identification
Minor account means an account that number(s) (TIN) of the person(s) named
a custodian controls on behalf of a on the security are maintained on our
minor, that is linked to the custodian’s records.
primary account. (See §§ 363.10 and Sell Direct  is a service in which
363.27 for more information about Treasury, through our agent, will sell
minor accounts.) your marketable Treasury security
Non-converting coowner is the coowner held in TreasuryDirect or Legacy
who does not participate in the trans- Treasury Direct on the open market
action to convert a definitive savings for a fee.
bond to a book-entry bond. Secondary owner means the second
Online means use of the Internet. person named in the registration of a
Owner is either a single owner, the book-entry security held in
first person named in the registration TreasuryDirect registered, e.g. ‘‘John
of a security held in the owner with Doe SSN 123–45–6789 with Joseph Doe
beneficiary form of registration, the SSN 987–65–4321.’’ In this example, Jo-
primary owner of a security held in the seph Doe is the secondary owner.
primary owner with secondary owner Security, or Treasury security, as used
form of registration, or either coowner in this part, means an obligation issued
of a converted savings bond. by Treasury that may be held in
Person means an entity including an TreasuryDirect.
individual, trust, estate, corporation, Series EE savings bond is an accrual-
government entity, association, part- type savings bond, issued either in de-
nership, and any other similar organi- finitive (paper) form or in book-entry
zation. Person does not mean a Federal form, that accrues interest on the prin-
Reserve Bank. cipal based on rates determined by
Primary account means the account Treasury.
that you establish when you first open Series I savings bond is a savings bond,
your TreasuryDirect account; your pri- issued either in definitive (paper) form
mary account is the portal used to or in book-entry form, that accrues in-
open and access all your linked ac- terest in accordance with a formula
counts. (See § 363.10 for more informa- that includes a fixed component and a
tion about primary accounts.) component indexed to the rate of infla-
Primary owner means the first person tion.
named in the registration of a security Signature guarantee program means a
held in TreasuryDirect registered, e.g., signature guarantee program estab-
‘‘John Doe SSN 123–45–6789 with Joseph lished under 17 CFR 240.17Ad–15, issued

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Fiscal Service, Treasury § 363.10

under authority of the Securities Ex- tablishment using information pro-


change Act of 1934. For the purpose of vided by the applicant.
this part, we recognize the Securities Voluntary representative means the
Transfer Agents Medallion Program person qualified by the Department of
(STAMP), the Stock Exchanges Medal- the Treasury to accept payment or di-
lion Program (SEMP), and the New rect distribution of a decedent’s securi-
York Stock Exchange, Inc., Medallion ties pursuant to § 363.44.
Signature Program (MSP). These cer- We, us, or our refers to the Bureau of
tifications are acceptable for transfers the Public Debt. The term includes the
of securities, but are not acceptable for Secretary of the Treasury and the Sec-
offline account establishment. retary’s delegates at the Treasury De-
Single owner means the individual partment and Bureau of the Public
named in the registration of a book- Debt. The term also includes any fiscal
entry Treasury security or a converted or financial agent we designate to act
savings bond without a beneficiary, on behalf of the United States.
secondary owner, or coowner. You or your refers to a
Social security account number or so- TreasuryDirect primary account hold-
cial security number (SSN) means the er.
identifying number required on tax re-
[67 FR 64286, Oct. 17, 2002, as amended at 68
turns and other documents submitted FR 24807, May 8, 2003; 69 FR 2507, Jan. 16,
to the Internal Revenue Service by an 2004; 69 FR 50308, Aug. 16, 2004; 70 FR 14942,
individual. A SSN is composed of nine Mar. 23, 2005; 70 FR 57433, Sept. 30, 2005; 70 FR
digits separated by two hyphens, for 57442, Sept. 30, 2005; 72 FR 30978, June 5, 2007]
example, 123–45–6789.
Taxpayer identification number (TIN) Subpart B—General Provisions
means the identifying number required Governing Securities Held in
on tax returns and other documents
submitted to the Internal Revenue
TreasuryDirect
Service; that is, an individual’s social §§ 363.7–363.8 [Reserved]
security number (SSN) or an employer
identification number (EIN). A SSN is § 363.9 What does this subpart cover?
composed of nine digits separated by
This subpart provides general rules
two hyphens, for example, 123–45–6789.
governing securities held within the
An EIN is composed of nine digits sepa-
TreasuryDirect  system. Provisions in
rated by one hyphen, for example, 12–
the subparts governing specific securi-
3456789. The hyphens are an essential
ties that conflict with these general
part of the numbers.
rules will supersede these general
Tender means an offer, or bid, to pur-
rules.
chase a marketable Treasury security.
Transaction is any action affecting [70 FR 57433, Sept. 30, 2005]
Treasury securities or account infor-
mation. § 363.10 What is a TreasuryDirect  ac-
Transfer is a transaction to move a count?
security, or a portion of a security, A TreasuryDirect account is an on-
from one account to another within line account maintained by us solely in
TreasuryDirect, or to move a market- your name in which you may hold and
able Treasury security to or from a conduct transactions in eligible book-
TreasuryDirect account and an ac- entry Treasury securities.
count in Legacy Treasury Direct or the (a) Primary Account. Your primary ac-
commercial book-entry system. count that you establish when initially
Verification means confirming the opening your TreasuryDirect account
identity of an online applicant for a may contain the following Treasury se-
TreasuryDirect account at account es- curities:
tablishment using a verification serv- (1) Treasury securities purchased ini-
ice. tially as book-entry securities that are
Verification service means a public or your personal holdings, in sole owner,
private service that confirms the iden- owner with beneficiary, and primary
tity of an online applicant for a owner with secondary owner forms of
TreasuryDirect account at account es- registration;

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§ 363.11 31 CFR Ch. II (7–1–07 Edition)

(2) Gifts of savings bonds that have (a) Have a valid social security num-
not yet been delivered; ber;
(3) Converted savings bonds that you (b) Have a United States address of
have transferred from your conversion record;
linked account. (c) Have an account at a United
(b) Linked account. A linked account States depository financial institution
is an account that is a separate ac- that will accept debits and credits
count from your primary account, but using the Automated Clearing House
that is connected to your primary ac- method of payment;
count. You use your primary account (d) Be 18 years of age or over;
as a portal to open and access the (e) Be legally competent; and
(f) Be an individual.
linked account. Linked accounts in-
clude the following: [67 FR 64286, Oct. 17, 2002. Redesignated at 70
(1) Custom account. A custom account FR 57433, Sept. 30, 2005]
is an account that is linked to your
§ 363.12 Who may purchase and hold
primary account. You use your pri- book-entry securities in
mary account as the portal to open and TreasuryDirect ?
access your custom account. You may
(a) A TreasuryDirect account owner
informally designate a purpose for the
may purchase and hold securities
custom account, for example, ‘‘vaca-
through his or her account.
tion fund’’, or ‘‘Johnny’s college fund’’.
(b) We do not permit a legally incom-
However, the designation as to purpose
petent person to open an account, pur-
has no legal effect; the registration of chase securities, or convert savings
the securities held in the custom ac- bonds once we have been provided with
count determines ownership (Annual an order from a court with appropriate
purchase limitations include securities jurisdiction determining incompetence
held in custom accounts). You may use to perform such activities.
your custom account to buy, redeem (c) We do not permit a legal rep-
and transfer securities that you own in resentative, a legal guardian, or a vol-
sole owner, owner with beneficiary, and untary representative to purchase se-
primary owner with secondary owner curities on behalf of the estate of a de-
forms of registration. You may also cedent or an incompetent person.
buy and deliver gift savings bonds from (d) We may reject any application for
your custom account. the purchase of a security, in whole or
(2) Minor account. A minor account is in part. We may refuse to issue a secu-
an account established by a custodian rity in any case or class of cases, if we
for a person who has not yet reached deem the action to be in the public in-
the age of 18 years. A minor account is terest. Our decision in any such respect
linked to the custodian’s primary ac- is final.
count. The minor is the owner of the
[70 FR 57433, Sept. 30, 2005]
securities, but the custodian controls
the account on behalf of the minor. § 363.13 How can I open a
(See § 363.27 for more information about TreasuryDirect  account?
minor accounts.)
You must establish a TreasuryDirect
(3) Conversion account means a linked account online before you purchase a
account in TreasuryDirect that con- Treasury security to be held in your
tains only savings bonds that have account. Instructions for online ac-
been converted from definitive bonds count establishment may be found at
to book-entry bonds. the official Public Debt website at
[69 FR 2507, Jan. 16, 2004, as amended at 70 http://www.publicdebt.treas.gov, or such
FR 14943, Mar. 23, 2005. Redesignated at 70 FR other Internet address as Public Debt
57433, Sept. 30, 2005, as amended at 70 FR may from time to time announce by
57442, Sept. 30, 2005] publication in the FEDERAL REGISTER.
When you have completed the applica-
§ 363.11 Who is eligible to open a tion, you will create a password to ac-
TreasuryDirect  account? cess your account. We will verify your
In order to open a TreasuryDirect ac- identity and send your account number
count, you must: to you by e-mail when your account

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Fiscal Service, Treasury § 363.20

application is approved. In addition to § 363.18 Is Public Debt liable if the


your password, we may require you to electronic transmission of my data
use any other form(s) of authentication is intercepted?
that we consider necessary for the pro- We are not liable for any interception
tection of your account. of electronic data or communication.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 [67 FR 64286, Oct. 17, 2002. Redesignated at 70
FR 57434, Sept. 30, 2005, as amended at 72 FR FR 57434, Sept. 30, 2005]
30978, June 5, 2007]
§ 363.19 What should I do if I become
§ 363.14 How will you verify my iden- aware that my password or other
tity? form of authentication has become
compromised?
We may use a verification service to
verify your identity using information If you become aware that your pass-
you provide about yourself on the on- word has become compromised, that
line application. At our option, we may any other form of authentication has
require offline verification. been compromised, lost, stolen, or mis-
used, or that there have been any unau-
[72 FR 30978, June 5, 2007] thorized transactions in your account,
you may place a hold on your account
§ 363.15 What is the procedure for off- so that it cannot be accessed by any-
line verification? one, and you should notify us imme-
In the event we require offline diately by e-mail or telephone. Contact
verification, we will provide a print- information is available on the
able verification form. Your signature TreasuryDirect Web site.
on the form must be certified or guar- [72 FR 30978, June 5, 2007]
anteed as provided at § 363.43, and the
form must be mailed to us at the ad- § 363.20 What do I need to know about
dress provided in § 363.5. the forms of registration that are
available for purchases of securities
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 through my TreasuryDirect  ac-
FR 57434, Sept. 30, 2005, as amended at 72 FR count?
30978, June 5, 2007]
(a) General principles. (1) Registration
must express the actual ownership of,
§ 363.16 How do I access my account?
and interest in, the security. Registra-
You may access your account online tion conclusively establishes ownership
using your account number, password, of a security.
and any other form(s) of authentica- (2) You must provide a last name and
tion that we may require. a first name for each individual in-
cluded in the registration of the secu-
[72 FR 30978, June 5, 2007]
rity.
§ 363.17 Who is liable if someone else (3) You must provide the valid tax-
accesses my TreasuryDirect  ac- payer identification number for each
count using my password? person named in the registration of the
security.
You are solely responsible for the (b) Forms of registration. The forms of
confidentiality and use of your account registration available for purchases of
number, password, and any other securities made through your
form(s) of authentication we may re- TreasuryDirect account are single
quire. We will treat any transactions owner, owner with beneficiary, and pri-
conducted using your password as hav- mary owner with secondary owner, un-
ing been authorized by you. We are not less the forms of registration available
liable for any loss, liability, cost, or ex- for a security are specifically limited
pense that you may incur as a result of by the subpart governing that security.
transactions made using your pass- (c) Single owner. (1) A single owner is
word. the individual named in the registra-
tion of a book-entry security or a con-
[72 FR 30978, June 5, 2007]
verted savings bond without a bene-
ficiary, secondary owner, or coowner.

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§ 363.20 31 CFR Ch. II (7–1–07 Edition)

(2) A single owner may add a bene- mary owner with another individual as
ficiary or secondary owner. secondary owner.
(3) A single owner may conduct per- (2) The primary owner holds the secu-
mitted online transactions on securi- rities in his or her account and may
ties held in his or her account. view or conduct permitted online
(4) Upon the death of the single transactions in the securities.
owner, his or her estate is entitled to (3) The primary owner may remove
the security. In determining entitle- the secondary owner without the con-
ment, the law of the decedent’s domi- sent of the secondary owner.
cile will be followed. (4) The secondary owner has no rights
(5) Registration example: ‘‘John Doe, to view or conduct transactions in any
SSN 123–45–6789.’’ security unless the primary owner
(d) Owner with beneficiary. (1) The gives the secondary owner these rights.
purchaser must be named as the owner
(5) The primary owner may give the
with another individual as beneficiary.
secondary owner the right to view any
(2) The owner may remove or change
security or rights to view and conduct
the beneficiary without the consent of
transactions in any security online
the beneficiary.
from the account of the secondary
(3) The owner may conduct permitted
owner.
online transactions on securities held
in his or her account without the con- (6) Once the right to conduct trans-
sent of the beneficiary. actions in a security has been given to
(4) The beneficiary has no ownership the secondary owner, the primary
rights to the security during the own- owner may view and conduct trans-
er’s lifetime. Upon the death of the actions in the security from his or her
owner, the security becomes the prop- account, and the secondary owner may
erty of the surviving beneficiary, de- view and conduct transactions in the
spite any attempted testamentary dis- security using his or her own account.
position or any applicable local law to (7) The primary owner may revoke
the contrary. any rights previously given to the sec-
(5) If the beneficiary does not survive ondary owner at any time.
the owner, the security belongs to the (8) Upon the death of either the pri-
estate of the owner. mary or secondary owner, the security
(6) If both the owner and the bene- becomes the property of the survivor,
ficiary die under conditions where it despite any attempted testamentary
cannot be established, either by pre- disposition or any applicable local law
sumption of law or otherwise, who died to the contrary.
first, the security is the property of the (9) If both the primary and the sec-
estate of the owner. ondary owner die under conditions
(7) In order for the beneficiary to ob- where it cannot be established, either
tain the security or the redemption by presumption of law or otherwise,
proceeds after the death of the owner, who died first, the security is the prop-
the beneficiary must provide proof of erty of the estate of the primary
death of the owner. If the beneficiary owner.
has a TreasuryDirect account, the se- (10) In order for the secondary owner
curity will be transferred to that ac- to obtain the security or the security
count. If the beneficiary does not have proceeds after the death of the primary
an account, he or she may establish an owner, the secondary owner must pro-
account. Alternatively, a beneficiary vide proof of death of the primary
named on a savings bond may request owner. If the secondary owner has a
redemption. If the beneficiary requests TreasuryDirect account, the security
redemption, he or she must provide will be transferred to that account. If
ACH instructions for the payment. the secondary owner does not have an
(8) Registration example: ‘‘John Doe, account, he or she may establish an ac-
SSN 123–45–6789 POD (payable on death count. Alternatively, a secondary
to) Jane Doe, SSN 987–65–4321.’’ owner named on a savings bond may
(e) Primary owner with secondary request redemption. If the secondary
owner. (1) The purchaser must be owner requests redemption, he or she
named in the registration as the pri- must provide ACH instructions.

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Fiscal Service, Treasury § 363.26

(11) Registration example: ‘‘John in securities held in his or her


Doe, SSN 123–45–6789 with Joseph Doe, TreasuryDirect account.
SSN 987–65–4321.’’ (b) Owner with beneficiary form of reg-
[70 FR 57434, Sept. 30, 2005] istration. The owner can conduct trans-
actions in securities held in his or her
§ 363.21 What transactions can I per- TreasuryDirect account. The bene-
form online through my ficiary has no rights during the life-
TreasuryDirect  account? time of the owner and therefore cannot
The following transactions are by conduct transactions in the securities.
way of illustration only, and are not (c) Primary owner with secondary
intended to limit transactions that owner form of registration. (1) The pri-
may be added to the system: mary owner can conduct any permitted
(a) You can purchase, transfer, and transaction in a security held in the
change the registration of an eligible primary owner’s TreasuryDirect ac-
Treasury security, including a transfer count. (See § 363.20(e)).
of a marketable security for a Sell Di- (2) If the primary owner has given
rect transaction; the secondary owner the right to con-
(b) You can redeem a savings bond; duct transactions in a security, and
(c) You can deliver a gift savings
has not revoked that right, then the
bond to the account of the recipient;
secondary owner can conduct trans-
(d) You can grant and revoke the
actions in the security. Transactions
right to view an eligible security to a
secondary owner or beneficiary named that may be conducted by the sec-
on the security, if the secondary owner ondary owner include transferring a
or beneficiary is a TreasuryDirect ac- marketable security, including a trans-
count owner; fer for a Sell Direct transaction, re-
(e) You, as the primary owner, can deeming a savings bond, and changing
grant certain transaction rights to the the destination of interest and redemp-
secondary owner, and you can also re- tion payments for marketable securi-
voke those rights. The secondary ties.
owner can exercise those rights, pro- (d) Converted savings bonds. The rules
vided they have not been revoked, if for transactions governing converted
the secondary owner is a savings bonds are contained in subpart
TreasuryDirect account owner; E of this part.
(f) You can make changes to your ac-
[70 FR 57434, Sept. 30, 2005 as amended at 70
count information, including ACH in- FR 57443, Sept. 30, 2005]
formation, password changes, and ac-
count security information; § 363.23–363.24 [Reserved]
(g) You can view a history of pur-
chases, transactions, changes to ac- § 363.25 How do I conduct transactions
count information, and pending trans- in my account or in Treasury secu-
actions; rities held in my account?
(h) You can schedule future trans- We will provide online instructions
actions, and change or delete pending for conducting transactions through
transactions; your account. If you are unable to con-
(i) You can open and access any
duct a transaction online, you should
linked accounts using your primary ac-
contact us at the address provided in
count as a portal; and
§ 363.5. Offline transactions will require
(j) You can convert eligible definitive
savings bonds to book-entry bonds. a certified or guaranteed signature. See
§ 363.43 for instructions for obtaining a
[70 FR 14943, Mar. 23, 2005. Redesignated at 70 certified or guaranteed signature.
FR 57434, Sept. 30, 2005 and amended at 70 FR
57442, Sept. 30, 2005] § 363.26 What is a transfer?
§ 363.22 Who has the right to conduct (a) A transfer is a transaction to:
online transactions in book-entry (1) Move a Treasury security, or a
securities? portion of a Treasury security, from
(a) Single owner form of registration. A one account to another within
single owner can conduct transactions TreasuryDirect ;

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§ 363.27 31 CFR Ch. II (7–1–07 Edition)

(2) Move a marketable Treasury secu- minor. Access to the minor’s account is
rity to or from a TreasuryDirect ac- through the custodian’s primary ac-
count and an account in Legacy Treas- count.
ury Direct or the commercial book- (e) Transactions permitted in the mi-
entry system. nor’s account. (1) The custodian may
(b) Transfers of a specific type of se- purchase securities for and on behalf of
curity may be limited by the subparts the minor through the minor’s ac-
that refer to that security. count.
(c) Gift delivery is not a transfer. A (2) The custodian may redeem sav-
transfer does not include delivery of a ings bonds on behalf of the minor
gift savings bond from the donor to the through the minor’s account. We will
recipient. This is referred to as a deliv- report the interest earned on the secu-
ery. rity to the name and SSN of the minor.
[67 FR 64286, Oct. 17, 2002, as amended at 70
(3) The custodian may not purchase
FR 57443, Sept. 30, 2005] gift savings bonds from the minor’s ac-
count.
§ 363.27 What do I need to know about (4) The custodian may transfer a se-
accounts for minors who have not curity to another TreasuryDirect ac-
had a legal guardian appointed by a count, provided the account is a linked
court? account bearing the name and taxpayer
(a) We do not permit a minor to pur- identification number of the minor.
chase securities. The custodian can transfer a market-
(b) Opening an account in the name of able Treasury security to an account in
a minor. (1) A parent or a person who Legacy Treasury Direct or the com-
provides the chief financial support of mercial book-entry system, and may
a minor may open an account for a request a Sell Direct transaction.
minor. The person opening the account (5) Securities may be transferred to
for a minor is referred to as the custo- the minor’s account.
dian of the minor’s account. (6) Gift savings bonds may be deliv-
(2) The custodian is a fiduciary for ered to the minor’s account.
the minor as to the securities held in (7) The custodian may grant rights to
the minor’s account. view and conduct transactions in the
(3) The custodian must have an exist- security as may be permitted by
ing primary TreasuryDirect  account § 363.22.
in order to open the minor’s account. (8) The custodian may purchase a
(i) The minor’s account is an account certificate of indebtedness on behalf of
that is linked to the custodian’s pri- the minor. The certificate of indebted-
mary account. ness is the property of the minor.
(ii) The custodian must use his or her (f) When the minor reaches the age of 18
primary TreasuryDirect account as a years. (1) The only transactions that
portal to open and access the minor’s the custodian may make in the minor’s
account. account after the minor attains the age
(4) Securities contained in the mi- of 18 years are to purchase new securi-
nor’s account will be registered in the ties, and to transfer the securities con-
name and SSN of the minor, in either tained in the minor’s account to an-
sole owner, owner with beneficiary, or other account in the name and SSN of
primary owner with secondary owner the minor. The receiving account in
forms of registration. the name and SSN of the minor may be
(c) Procedure for opening an account a primary account established by the
for a minor. (1) Online instructions will minor, or it may be another minor
be provided for establishing an account linked account with the same or a dif-
for a minor. ferent custodian. The custodian may
(2) The custodian must certify that transfer one or more of the securities
all transactions conducted through the at a time, or the custodian may de-link
account will be on the minor’s behalf. the account and transfer all of the se-
(d) Procedure for conducting trans- curities contained in the account to
actions in the minor’s account. The cus- the minor’s previously established pri-
todian must conduct all transactions mary TreasuryDirect account. The
in the minor’s account on behalf of the minor must establish his or her own

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Fiscal Service, Treasury § 363.35

primary TreasuryDirect account prior cretion, we deem the action to be in


to transfer of his or her securities. the best interests of the United States:
(2) In order to gain control of the se- (a) Refuse to open an account for any
curities held in the minor’s account, person;
the minor must first open his or her (b) Close any existing account, re-
own primary account. deem, sell, or liquidate the securities
(3) The minor may gain control of the held in the account, and pay the pro-
securities held in the minor’s account ceeds to the person entitled;
by the custodian transferring the secu- (c) Suspend transactions with respect
rities held in the minor’s account to to an account or any security held in
the minor’s primary account, or the an account; or
minor may request that Public Debt (d) Take any other action with re-
transfer the securities to his or her pri- gard to any account that we deem nec-
mary account. essary, if not inconsistent with exist-
(4) The minor may gain control of his ing law and existing rights.
or her certificate of indebtedness by
the custodian de-linking the account [70 FR 57434, Sept. 30, 2005, as amended at 72
and transferring the certificate of in- FR 30978, June 5, 2007]
debtedness to the minor’s primary ac-
count, or the minor may request that §§ 363.30–363.32 [Reserved]
Public Debt de-link the account and § 363.33 Can an attorney-in-fact con-
transfer the certificate of indebtedness duct transactions in my
to his or her primary account. TreasuryDirect  account?
(g) Liability. We rely on the certifi-
cation of the custodian that he or she (a) An attorney-in-fact who provides
is acting on behalf of the minor. We are a copy of a durable power of attorney
not liable to the minor, or any other granting him or her the authority to
person or party acting on behalf of the conduct TreasuryDirect transactions
minor, for the actions of the custodian, on behalf of the owner may conduct
nor are we liable for the application of transactions online.
any proceeds from the transfer or re- (b) An attorney-in-fact who provides
demption of securities held in the mi- a copy of a limited power of attorney
nor’s account. The custodian agrees to may only conduct transactions that he
indemnify and hold harmless the or she is permitted by his or her power.
United States in the event that we suf- Such transactions will be through an
fer any loss on account of any claim re- offline process.
lating to a minor account. (c) A written copy of the power of at-
torney must be sent to the address pro-
[69 FR 2507, Jan. 16, 2004, as amended at 69 vided in § 363.5. We may require any ad-
FR 50309, Aug. 16, 2004; 70 FR 57443, Sept. 30,
2005]
ditional evidence that we consider nec-
essary to support the power.
§ 363.28 Does Public Debt reserve the
right to require that any § 363.34 What happens if an owner be-
TreasuryDirect  transaction be comes incompetent after opening a
conducted in paper form? TreasuryDirect  account?
We reserve the right to require any If we receive notice that the owner of
transaction to be conducted in paper a TreasuryDirect account has become
form. Signatures on paper transactions incompetent, we will suspend all trans-
must be certified or guaranteed as pro- actions in the account until we estab-
vided in § 363.43. lish the authority of another person to
act in his or her behalf.
[70 FR 57434, Sept. 30, 2005]
[67 FR 64286, Oct. 17, 2002, as amended at 68
§ 363.29 May Treasury close an ac- FR 24807, May 8, 2003]
count, suspend transactions in an
account, or refuse to open an ac- § 363.35 When is a transaction effec-
count? tive?
We reserve the right to take any of A transaction is effective when we
the following actions if, in our sole dis- post it to our records.

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§ 363.36 31 CFR Ch. II (7–1–07 Edition)

§ 363.36 What securities can I purchase return occurs after the security has
and hold in my TreasuryDirect  been redeemed, transferred, or has ma-
account? tured and the proceeds paid, we reserve
You can purchase and hold eligible the right to reverse previously proc-
Treasury securities in your account. essed security transactions. We are not
Eligible securities are Series EE and responsible for any fees your financial
Series I savings bonds, certificates of institution may charge relating to re-
indebtedness, and marketable Treasury turned ACH debits.
securities that are available for pur- [70 FR 57443, Sept. 30, 2005]
chase through the TreasuryDirect Web
site. In addition, you can hold con- § 363.39 Will I receive a confirmation
verted savings bonds and eligible mar- of my request to purchase a Treas-
ketable Treasury securities that have ury security?
been transferred from the Legacy At the time that you submit a re-
Treasury Direct system or the com- quest to purchase a Treasury security
mercial book-entry system. through your TreasuryDirect  ac-
[70 FR 57443, Sept. 30, 2005] count, we will make available a print-
able online confirmation of your re-
§ 363.37 How do I purchase and make quest. Final confirmation will occur
payment for eligible Treasury secu- when the security is issued into your
rities through my TreasuryDirect  account. You will not receive a mailed
account? confirmation.
(a) Online purchase. Purchases of eli-
gible Treasury securities through your § 363.40 How are payments of prin-
TreasuryDirect account must be made cipal and interest made?
online. (a) Payment of a savings bond that has
(b) Payment for savings bonds and mar- reached final maturity. We will purchase
ketable Treasury securities. You can pay a certificate of indebtedness in your
for eligible savings bonds and market- TreasuryDirect  account using the
able Treasury securities by either a proceeds of a matured savings bond.
debit to your designated account at a (b) Payments of interest and principal
United States financial institution (except a savings bond that has reached
using the ACH method, or by using the final maturity). (1) We provide two
redemption proceeds of your certificate methods of receiving payments of prin-
of indebtedness. cipal and interest:
(c) Payment for certificate of indebted- (i) Payment to your account at a fi-
ness. You can pay for a certificate of nancial institution by the ACH meth-
indebtedness by a direct deposit from od, or
your financial institution or employer (ii) Payment to your TreasuryDirect
to your TreasuryDirect account using account to purchase a certificate of in-
the ACH method; by a debit from your debtedness.
designated account at a financial insti- (2) You may select different payment
tution using the ACH method, but the destinations for principal and interest
amount of the debit is limited to $1000 for a marketable Treasury security.
or less; or by using the proceeds of ma- You may change your payment des-
turing securities held in your Treasury tination at any time, unless the secu-
Direct account. rity is in the closed book period. (See
§ 363.210.)
[70 FR 57443, Sept. 30, 2005]
(3) If we are unable to deliver a pay-
§ 363.38 What happens if my financial ment, we will use the payment to pur-
institution returns an ACH debit? chase a certificate of indebtedness in
your TreasuryDirect account.
If your designated financial institu-
tion returns an ACH debit, we reserve [70 FR 57443, Sept. 30, 2005]
the right to reinitiate the debit at our
option. We also reserve the right to re- § 363.41 What happens if an ACH pay-
verse the transaction, thereby remov- ment is returned to Public Debt?
ing the security from your We will notify you electronically of
TreasuryDirect  account. If the ACH the returned payment. We will hold

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Fiscal Service, Treasury § 363.43

your payment until you provide us withdraw your consent to receive tax
with instructions. Returned payments reporting forms by electronic means,
will not earn interest. We reserve the we reserve the right to redeem any sav-
right to redirect a returned payment to ings bonds held in your account and
the bank account at a financial institu- close your account.
tion that you have designated in your [67 FR 64286, Oct. 17, 2002, as amended at 70
TreasuryDirect  account as your pri- FR 57435, Sept. 30, 2005]
mary bank account, if that account is
different from the one that returned § 363.43 What are the procedures for
the payment to us. We are not respon- certifying my signature on an off-
sible for any fees your financial insti- line application for a
tution may charge relating to returned TreasuryDirect  account, or on an
offline transaction form?
ACH payments.
(a) Certification within the United
[69 FR 50308, Aug. 16, 2004] States. For certifications within the
United States, the certifying indi-
§ 363.42 How will my interest income vidual must be authorized to bind his
be reported for tax purposes?
or her institution by his or her acts, to
When you open your guarantee signatures to assignments of
TreasuryDirect  account, you consent securities, or to certify assignments of
to receive the appropriate tax report- securities. The following table provides
ing forms by electronic means. We will a list of authorized certifying individ-
notify you when your tax reporting uals and the required evidence of au-
forms are available. The form will be thority. Members of Treasury-recog-
available in printable form through nized signature guarantee programs
your TreasuryDirect account. If you are for security transfers only.
Who can certify signatures in the U.S. Evidence of certifying individual’s authority

(1) Officers and employees of depository institutions ................. (i) We require the institution’s seal or signature guarantee
stamp.
(ii) If the institution is an authorized paying agent for U.S. Sav-
ings Bonds, we require a legible imprint of the paying
agent’s stamp.
(2) Institutions that are members of Treasury—recognized sig- We require the imprint of the signature guarantee stamp, i.e.,
nature guarantee programs (for security transfers only). the STAMP, SEMP, or MSP stamp for members of the Se-
curities Transfer Agents Medallion Program, the Stock Ex-
changes Medallion Program, or the New York Stock Ex-
change Inc. Medallion Signature Program.
(3) Officers and employees of corporate central credit unions, We require the entity’s seal.
Federal Land Banks, Federal Intermediate Credit Banks and
Banks for Cooperatives, the Central Bank for Cooperatives,
and Federal Home Loan Banks.
(4) Commissioned or warrant officers of the United States (i) We require a statement that the person executing the as-
Armed Forces, for signatures executed by Armed Forces signment is one whose signature the officer is authorized to
personnel, civilian field employees, and members of their certify under our regulations.
families. (ii) The certifying official’s rank must be shown.
(5) A judge or clerk of the court .................................................. We require the seal of the court.
(6) Other persons as designated by the Commissioner or Dep- Evidence is determined by our procedures.
uty Commissioner of Public Debt.

(b) Certification within foreign coun- eign countries and the required evi-
tries. The following table lists the au- dence of the individual’s authority.
thorized certifying individuals for for-
Who can certify signatures in foreign countries Evidence of certifying individual’s authority

(1) United States diplomatic or consular officials ........................ (i) We require the seal or stamp of the office.
(ii) If there is no seal or stamp, then we require certification by
some other authorized individual, under seal or stamp.

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§ 363.44 31 CFR Ch. II (7–1–07 Edition)

Who can certify signatures in foreign countries Evidence of certifying individual’s authority

(2) Managers and officers of foreign branches of U.S. deposi- We require the seal of the depository institution, or the imprint
tory institutions and institutions that are members of Treas- of the signature guarantee stamp, i.e., the STAMP, SEMP,
ury-recognized signature guarantee programs (for security or MSP stamp for members of the Securities Transfer
transfers only). Agents Medallion Program, the Stock Exchanges Medallion
Program, or the New York Stock Exchange Incorporated Me-
dallion Signature Program.
(3) Notaries Public and other officers authorized to administer (i) We require the official seal or stamp of the office.
oaths, provided their authority is certified by a United States (ii) If there is no seal or stamp, the position must be certified
diplomatic or consular official. by some other authorized individual, under seal or stamp, or
otherwise proved to our satisfaction.

(c) Duties and liabilities of certifying (2) The endorsement must be dated
individuals. (1) The certifying indi- and the seal of the institution must be
vidual must first establish the identity added.
of the signer. (3) This form of endorsement is an
(2) The form must be signed in the unconditional guarantee to us that the
presence of the certifying individual. institution is acting for the signer
(3) If the certifying individual is not under proper authorization.
an officer, the certifying individual (f) Persons who cannot act as certifying
must insert the words ‘‘Authorized Sig- individuals. Any person having an in-
nature’’ in the space provided for the terest in a security involved in the
title. transaction cannot act as a certifying
(4) If the certifying individual is neg- individual. However, an authorized offi-
ligent in making the certification, the cer or employee of a depository finan-
certifying individual and his or her or- cial institution that is a member of a
ganization are jointly and severally Treasury-recognized signature guar-
liable for any loss the United States antee program can act as a certifying
may incur as a result of the negligence. individual for transfer of a security to
(d) Guaranteed signatures. (1) A secu- the institution or on behalf of the in-
rity or other form requiring certifi- stitution.
cation need not be executed in the
presence of a certifying individual if [67 FR 64286, Oct. 17, 2002, as amended at 70
FR 57435, Sept. 30, 2005]
the signature is unconditionally guar-
anteed by the certifying individual. To
§ 363.44 What happens when a
guarantee a signature, the certifying TreasuryDirect  account owner
individual must add a dated endorse- dies and the estate is entitled to se-
ment after the signature. For example: curities held in the account?
Signature guaranteed, First National Bank (a) Estate is being administered. (1) For
of Smithville, Smithville, NH, by A. B. Doe, an estate that is being administered,
President, dated 1/1/2001. the legal representative of the estate
(2) The certifying individual and his may request payment of securities, if
or her organization unconditionally the securities are eligible for payment,
guarantee to us that the signature is to the estate or to the persons entitled,
genuine and the signer had the legal or may:
capacity to execute the assignment or (i) Request transfer of securities to
related form. the TreasuryDirect account of the per-
(e) Guaranteed absence of a signature. sons entitled, if the securities are eligi-
(1) A form requiring a certified signa- ble for transfer;
ture need not be signed when a certi- (ii) Request transfer of marketable
fying individual associated with a de- Treasury securities to the commercial
pository financial institution places book-entry system; or
the following endorsement on the secu- (iii) Request a Sell Direct trans-
rity or the form: action.
Absence of signature by owner and validity (2) We will require appropriate proof
of transaction guaranteed, Second State of appointment for the legal represent-
Bank of Jonesville, Jonesville, NC, by B. R. ative of the estate. Letters of appoint-
Butler, Vice President, dated 11/1/2001. ment must be dated not more than one

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Fiscal Service, Treasury § 363.44

year prior to the date of submission of (e) Voluntary representative for small
the letters of appointment. estates that are not being otherwise ad-
(3) The legal representative of the es- ministered—(1) General. A voluntary
tate may not purchase securities on be- representative is a person qualified ac-
half of the estate. cording to paragraph (e)(3) of this sec-
(4) If payment is requested, we will tion, to redeem or transfer a decedent’s
require ACH instructions to process securities. The voluntary representa-
the request. tive procedures are for the convenience
(b) Estate has been settled previously. If of the Department; entitlement to the
the estate has been settled previously decedent’s securities and held pay-
through judicial proceedings, the per- ments, if any, is determined by the law
sons entitled may request payment of of the jurisdiction in which the dece-
securities, if the securities are eligible dent was domiciled at the date of
for redemption, or may transfer the se- death. Voluntary representative proce-
curities to the TreasuryDirect ac- dures may be used only if:
counts of the persons entitled, if the (i) There has been no administration,
securities are eligible for transfer. We no administration is contemplated, and
will require a certified copy of the no summary or small estate procedures
court-approved final accounting for the under applicable local law have been
estate, the court’s decree of distribu- used;
tion, or other appropriate evidence. If (ii) The total redemption value of the
payment is requested, we will require Treasury securities and held payments,
ACH instructions to process the re- if any, held directly on our records
quest. that are the property of the decedent’s
(c) Special provisions under the law of estate is $100,000 or less, as of the date
the jurisdiction of the decedent’s domicile. of death, and
If there is no formal or regular admin-
(iii) There is a person eligible to
istration and no representative of the
serve as the voluntary representative
estate is to be appointed, the person
according to paragraph (e)(3) of this
appointed to receive or distribute the
section.
assets of a decedent’s estate without
regular administration under summary (2) Authority of voluntary representa-
or small estates procedures under ap- tive. A voluntary representative may:
plicable local law may request pay- (i) Redeem the decedent’s savings
ment of securities, if the securities are bonds that are eligible for redemption.
eligible for redemption, or may trans- Payment may be made to the vol-
fer the securities to or on behalf of the untary representative on behalf of or
persons entitled by the law of the juris- directly to the persons entitled by the
diction in which the decedent was dom- law of the jurisdiction in which the de-
iciled at the date of death, if the secu- cedent was domiciled at the date of
rities are eligible for transfer. We will death;
require appropriate evidence. If pay- (ii) Transfer the decedent’s securities
ment is requested, we will require ACH to the persons entitled by the law of
instructions to process the request. the jurisdiction in which the decedent
(d) When administration is required. If was domiciled at the date of death.
the total redemption value of the (3) Order of precedence for voluntary
Treasury securities and undelivered representative. An individual eighteen
payments, if any, held directly on our years of age or older may act as a vol-
records that are the property of the de- untary representative according to the
cedent’s estate is greater than $100,000, following order of precedence: a sur-
administration of the decedent’s estate viving spouse; if there is no surviving
will be required. The redemption value spouse, then a child of the decedent; if
of savings bonds and the principal there are none of the above, then a de-
amount of marketable securities will scendant of a deceased child of the de-
be used to determine the value of secu- cedent; if there are none of the above,
rities, and will be determined as of the then a parent of the decedent; if there
date of death. Administration may also are none of the above, then a brother
be required at the discretion of the De- or sister of the decedent; if there are
partment for any case. none of the above, then a descendant of

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§ 363.45 31 CFR Ch. II (7–1–07 Edition)

a deceased brother or sister of the dece- (b) Competing claims to a security. The
dent; if there are none of the above, Department of the Treasury, Public
then a next of kin of the decedent, as Debt, and the Federal Reserve Banks
determined by the laws of the dece- are not proper defendants in a judicial
dent’s domicile at the date of death. As proceeding involving competing claims
used in this order of precedence, child to a security held in TreasuryDirect.
means a natural or adopted child of the (c) Divorce decree. We will recognize a
decedent. divorce decree that either disposes of a
(4) Liability. By serving, the vol- security held in TreasuryDirect or rati-
untary representative warrants that fies a property settlement agreement
the distribution of payments or securi- disposing of a security that is the prop-
ties are to or on behalf of the persons erty of either of the parties. If the di-
entitled by the law of the jurisdiction vorce decree does not set out the terms
in which the decedent was domiciled at of the property settlement agreement,
the date of death. The United States is we will require a certified copy of the
not liable to any person for the im- agreement.
proper distribution of payments or se- (d) Final court order. We will recog-
curities. Upon payment or transfer of nize a final order entered by a court
the securities to the voluntary rep- that affects ownership rights in a secu-
resentative, the United States is re- rity held in TreasuryDirect only to the
leased to the same extent as if it had extent that the order is consistent with
paid or delivered to a representative of the provisions of this part. The owner
the estate appointed pursuant to the of the security must be a party to the
law of the jurisdiction in which the de- proceedings.
cedent was domiciled at the date of (e) Levy to satisfy money judgment. We
death. The voluntary representative will honor a transaction request sub-
shall indemnify and hold harmless the mitted by a person appointed by a
United States and all creditors and per- court and having authority under an
sons entitled to the estate of the dece- order of a court to dispose of a security
dent. The amount of the indemnifica- held in TreasuryDirect pursuant to a
tion is limited to an amount no greater money judgment against the owner of
than the value received by the vol- the security, as owner is defined in sec-
untary representative. tion 363.6 of this part. In the case of
savings bonds, we will only make pay-
(5) Creditor. If there has been no ad-
ment pursuant to the court order to
ministration, no administration is con-
the extent of the money judgment. We
templated, no summary or small estate
will not transfer the savings bonds.
procedures under applicable local law (f) IRS levy. We will honor an IRS no-
have been used, and there is no person tice of levy under section 6331 of the In-
eligible to serve as a voluntary rep- ternal Revenue Code with respect to:
resentative pursuant to paragraph (e) (1) The owner, as owner is defined in
of this section, then a creditor may section 363.6 of this part; and
make a claim for payment of the (2) A secondary owner, if the sec-
amount of the debt, providing the debt ondary owner has the right to conduct
has not been barred by applicable local transactions in a security at the date
law. and time the notice of levy is delivered
[70 FR 57435, Sept. 30, 2005, as amended at 70 to Public Debt.
FR 57443, Sept. 30, 2005] (g) Trustee in bankruptcy, a receiver of
an insolvent’s estate, a receiver in equity,
§ 363.45 What are the rules for judicial or a similar court officer. We will honor
and administrative actions involv- a transaction request submitted by a
ing securities held in trustee in bankruptcy, a receiver of an
TreasuryDirect ? insolvent’s estate, a receiver in equity,
(a) Notice of adverse claim or pending or a similar court officer, if the origi-
judicial proceedings. We are not subject nal court order is against the owner, as
to and will not accept a notice of an owner is defined in § 363.6 of this part.
adverse claim or notice of pending judi- In the case of savings bonds, we will
cial proceedings involving a security only make payment. We will not trans-
held in TreasuryDirect. fer the savings bonds.

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Fiscal Service, Treasury § 363.47

(h) Court order that attempts to defeat agency, United States Attorney’s Of-
or impair survivorship rights. We will not fice, or forfeiting agency, to receive re-
recognize a court order that attempts ferrals from Public Debt.
to defeat or impair the survivorship Forfeiting agency means the federal
rights of a beneficiary, secondary law enforcement agency responsible for
owner, coowner of a converted savings the forfeiture.
bond, or the registered owner of an un- Forfeiture means the process by which
delivered gift security held in
property may be forfeited by a federal
TreasuryDirect.
agency. Administrative forfeiture is
[70 FR 57435, Sept. 30, 2005] forfeiture by a federal agency without
judicial proceedings resulting in a dec-
§ 363.46 What evidence is required to laration of forfeiture; judicial for-
establish the validity of judicial
proceedings? feiture is a forfeiture through either a
civil or criminal proceeding in a United
(a) We will require certified copies of States District Court resulting in a
the final judgment, decree, or court
final judgment and order of forfeiture.
order, and any necessary supple-
mentary proceedings. (c) Procedures for a forfeiting agency to
(b) A transaction request by a trustee request forfeiture of Treasury securities. A
in bankruptcy or a receiver of an forfeiting agency must request for-
insolvent’s estate must be supported by feiture. An individual authorized by
evidence of appointment and qualifica- the forfeiting agency must sign the
tion. transaction request. The request must
(c) A transaction request by a re- be mailed to the Department of the
ceiver in equity or a similar court offi- Treasury, Bureau of the Public Debt,
cer (other than a receiver of an Parkersburg, WV 26106–7015.
insolvent’s estate) must be supported (d) Public Debt procedures upon receipt
by a copy of an order that authorizes of forfeiture request. Upon receipt and
the receiver or similar court officer to review of the transaction request, we
take possession and control of the se- will make payment to the forfeiture
curity. fund specified, if the security is eligible
[70 FR 57435, Sept. 30, 2005] for payment, or we will transfer the se-
curity pursuant to the transaction re-
§ 363.47 Will Public Debt pay Treasury quest. We will record the forfeiture, the
securities pursuant to a forfeiture forfeiture fund into which the proceeds
proceeding? were paid or the security transfer
(a) General. We will honor a judicial records, the contact point, and any re-
or administrative forfeiture order or lated information.
declaration of forfeiture submitted by (e) Inquiries from previous owner. All
a federal agency. We will rely exclu- inquiries or claims from the previous
sively upon the information provided owner will be referred to the contact
by the Federal forfeiting agency and point of the forfeiting agency. We will
will not make any independent evalua- tell the person who inquired that we
tion of the validity of the forfeiture referred his or her inquiry to the con-
order, the request for payment, or the tact point. We will not investigate the
authority of the individual signing the inquiry. We will defer to the forfeiting
transaction request. The amount to be agency’s determination of the appro-
paid or transferred is limited to the priate course of action, including set-
value of the security as of the date of tlement where appropriate. Any settle-
forfeiture. ment will be paid from the forfeiture
(b) Definition of special terms relating fund into which the proceeds were de-
to forfeitures.
posited.
Contact point means the individual
designated by the Federal investigative [70 FR 57436, Sept. 30, 2005]

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§§ 363.48–363.49 31 CFR Ch. II (7–1–07 Edition)

§§ 363.48–363.49 [Reserved] tional one-cent increments above that


amount, in any one transaction. For
Subpart C—Book-Entry Savings example, a purchase may be $25.00,
Bonds Purchased Through $25.01, $25.02, or $25.03, and so forth.
TreasuryDirect § 363.54 What is the minimum amount
GENERAL of a book-entry savings bond that I
must hold in my account?
§ 363.50 What Treasury securities does Each bond held in your account must
this subpart govern? have a redemption value of at least $25.
This subpart governs: If you request a transaction that would
(a) Series EE and Series I book-entry reduce the remaining redemption value
savings bonds that were originally of the bond to an amount less than $25,
issued as book-entry bonds through we will not permit the transaction to
TreasuryDirect ; and occur.
(b) Converted savings bonds that are
registered in: § 363.55 May I transfer my book-entry
(1) The single owner form of registra- savings bonds to another person?
tion of any series,
(2) The owner with beneficiary form (a) You may transfer a savings bond
of registration of Series EE and Series or a portion of a savings bond to the
I savings bonds, TreasuryDirect ; account of another
(3) The owner with beneficiary form individual in a minimum amount of
of registration of Series E savings $25. The transfer may only be made as
bonds in which the beneficiary has con- a gift or in response to a final judg-
sented to a change in the registration ment, court order, divorce decree, or
of the bond after conversion, and property settlement agreement. You
(4) The coowner form of registration must certify online that the transfer is
of any series in which the non-con- a gift or a specified exception.
verting coowner has consented to a (b) We do not permit the transfer of
change in the registration of the bond savings bonds for consideration, unless
after conversion. it is an exception specified in para-
[70 FR 14943, Mar. 23, 2005] graph (a) of this section.
(c) The bond will be transferred in
§ 363.51 [Reserved] the single owner form of registration.
§ 363.52 What amount of book-entry (d) We reserve the right to limit the
Series EE and I savings bonds may transferability of savings bonds at any
I purchase in one year? time by amendment to these regula-
(a) Purchase limitation. The amount of tions.
bonds that you may purchase in any [67 FR 64286, Oct. 17, 2002, as amended at 68
calendar year is limited to $30,000 for FR 24807, May 8, 2003; 70 FR 57436, Sept. 30,
Series EE savings bonds, and $30,000 for 2005]
Series I savings bonds.
(b) Computation of amount for gifts. § 363.56 What is the minimum amount
Bonds purchased or transferred as gifts of book-entry savings bonds that I
will be included in the computation of may transfer in any one trans-
the purchase limitation for the account action?
of the recipient for the year in which Each transfer must be in a minimum
the bonds are delivered to the recipi- amount of $25 redemption value, with
ent.
additional one-cent increments above
[67 FR 64286, Oct. 17, 2002, as amended at 68 that amount, in any one transaction.
FR 24807, May 8, 2003] For example, you may transfer $25.00,
$25.01, $25.02, or $25.03, and so forth.
§ 363.53 What is the minimum amount
of book-entry savings bonds that I Transfers will be comprised of prin-
may purchase in any transaction? cipal and proportionate interest.
Each bond purchase must be in a
minimum amount of $25, with addi-

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Fiscal Service, Treasury § 363.100

§ 363.57 What is the minimum amount (d) If the purchaser dies before deliv-
of book-entry savings bonds that I ering a gift bond to the recipient, the
may redeem in any one trans- bond belongs to the owner named on
action? the gift bond, notwithstanding any tes-
Each redemption must be in a min- tamentary attempts to the contrary by
imum amount of $25 redemption value, the purchaser, or any state law to the
with additional one-cent increments contrary. We will hold the bond until
above that amount, in any one trans- we receive instructions from the owner
action. For example, you may redeem named on the gift bond.
$25.00, $25.01, $25.02, or $25.03, and so
[67 FR 64286, Oct. 17, 2002, as amended at 69
forth. Redemptions will be comprised
FR 2508, Jan. 16, 2004]
of principal and proportionate interest.
§ 363.97 What do I need to know if I
§ 363.58 May book-entry savings bonds transfer a book-entry savings bond
be pledged or used as collateral?
to another person as a gift?
Bonds may not be pledged or used as
(a) You must certify online that the
collateral for the performance of an ob-
transfer is a gift.
ligation.
(b) You must provide the SSN of the
§§ 363.59–363.82 [Reserved] recipient.
(c) Once the transfer is made, the gift
§ 363.83 May an account owner trans- is irrevocable.
fer a book-entry savings bond to a (d) The bond will be transferred in
minor?
the single owner form of registration
An account owner may transfer a to the recipient.
bond to a minor as a gift or pursuant to
one of the specified exceptions in § 363.98 [Reserved]
§ 363.55(a).
§ 363.99 What is the minimum amount
§§ 363.84–363.94 [Reserved] of a bond that I may transfer or de-
liver as a gift in any one trans-
GIFTS action?

§ 363.95 How may I give a book-entry You may transfer or deliver gift
savings bond as a gift? bonds in any one-cent increment value
equal to or greater than $25.00 redemp-
You may give a book-entry savings tion value. For example, you may de-
bond as a gift in two ways:
liver a gift bond with a redemption
(a) You may purchase a bond online
value of $25.00, $25.01, $25.02, and so
as a gift; or
forth. If the bond was held in your ac-
(b) You may transfer a bond that you
count prior to delivery to the recipient
own to another person as a gift with
for a period of time and has accrued in-
immediate delivery.
terest, the delivery will include prin-
[67 FR 64286, Oct. 17, 2002, as amended at 68 cipal and proportionate interest.
FR 24807, May 8, 2003; 70 FR 57437, Sept. 30,
2005] § 363.100 What are the rules for pur-
chasing and delivering gift savings
§ 363.96 What do I need to know if I bonds to minors?
initially purchase a bond as a gift?
(a) A TreasuryDirect  account owner
(a) The gift bond will be registered in can purchase a savings bond as a gift
the name of the recipient(s). The reg- with a minor as the recipient.
istration is irrevocable with regard to (b) An account owner can deliver a
the owner named on the gift bond.
bond purchased as a gift to a minor.
(b) You must provide the SSN of the The account owner must deliver the se-
recipient.
curity to the minor’s linked account.
(c) You may deliver the bond upon Once delivered, the bond will be under
purchase, or you may hold the bond in
the control of the custodian of the mi-
your TreasuryDirect  account until
nor’s account. (See § 363.27.)
you are ready to deliver the bond to
the owner named on the gift bond. [70 FR 57444, Sept. 30, 2005]

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§ 363.101 31 CFR Ch. II (7–1–07 Edition)

§ 363.101 Can an account owner trans- day maturity, that automatically rolls
fer a book-entry savings bond to a over at maturity until you request re-
minor? demption. A certificate of indebtedness
An account owner can transfer a has a minimum purchase amount of
book-entry savings bond held in one cent. The only purpose of a certifi-
TreasuryDirect  to a minor as a gift or cate of indebtedness is to accumulate
pursuant to one of the specified excep- funds for the purchase of another eligi-
tions in § 363.55(a). ble security in the TreasuryDirect sys-
tem. A certificate of indebtedness
[70 FR 57444, Sept. 30, 2005]
within a minor’s account is the prop-
§§ 363.102–363.124 [Reserved] erty of the minor alone.

PAYMENT § 363.132 Can the sale of the certificate


of indebtedness be suspended?
§ 363.125 How is payment made on a The Secretary may suspend and re-
book-entry savings bond? scind the suspension of sales of the cer-
We will make payment by the ACH tificate of indebtedness by announce-
method to the designated account at a ment at any time.
United States depository financial in-
stitution. § 363.133 What happens to my certifi-
cate of indebtedness if the offering
§ 363.126 Under what circumstances is terminated by the Secretary?
will payment be made? Upon the termination of this offering
We will make payment: by the Secretary, the certificate of in-
(a) Upon your request for redemption debtedness ceases to roll over; the pro-
prior to maturity; ceeds will be paid by the ACH method
(b) When the bond reaches final ma- to the bank account at a financial in-
turity; and stitution that you designated in your
(c) If a person who becomes entitled TreasuryDirect  account as your pri-
to the bond is unable, unwilling or in- mary bank account.
eligible to open a TreasuryDirect  ac-
count. § 363.134 What regulations cover a cer-
tificate of indebtedness?
§§ 363.127–363.129 [Reserved] The regulations in part 363 apply to a
certificate of indebtedness. We ex-
Subpart D—Certificate of pressly disclaim representations or
Indebtedness warranties regarding a certificate of
indebtedness that in any way conflict
SOURCE: 69 FR 50309, Aug. 16, 2004, unless with these regulations and other appli-
otherwise noted. cable law.

§ 363.130 What does this subpart § 363.135 In what form is a certificate


cover? of indebtedness issued?
This subpart is the offering of the A certificate of indebtedness is issued
certificate of indebtedness by the Sec- in electronic form only in the
retary of the Treasury (Secretary), and TreasuryDirect  system.
will continue until suspended or termi-
nated by the Secretary. This subpart is § 363.136 Do certificates of indebted-
also the governing regulations for the ness pay interest?
certificate of indebtedness. Certificates of indebtedness do not
pay any interest. However, the Sec-
§ 363.131 What is a TreasuryDirect  retary may prescribe a rate of interest,
certificate of indebtedness? or change the interest rate, for certifi-
A TreasuryDirect certificate of in- cates of indebtedness by announcement
debtedness (certificate of indebtedness) at any time. The new rate would apply
is a security held within your primary to certificates of indebtedness issued
or linked account, including a minor thereafter, as provided in the an-
account for which you are the custo- nouncement. The Secretary’s deter-
dian, that is issued daily, with a one- mination of the rate will be final.

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Fiscal Service, Treasury § 363.144

§ 363.137 What do I need to know § 363.141 How do I purchase a security


about the registration of a certifi- using the redemption proceeds of
cate of indebtedness? my certificate of indebtedness?
A certificate of indebtedness is auto- You may purchase an eligible secu-
matically registered in the single own- rity by redeeming all or a portion of
ership form of registration in the your certificate of indebtedness and ap-
TreasuryDirect  account owner’s plying the proceeds toward the pur-
name. chase of another eligible security. To
do this, your certificate of indebted-
§ 363.138 How do I purchase a certifi- ness must be of sufficient value to
cate of indebtedness? cover the cost of the security. If you
You may purchase your certificate of are paying for a security using the re-
indebtedness through one or more of demption proceeds of a certificate of
the following four methods: indebtedness, you must pay the full
(a) payroll deduction, in which your amount of the purchase price of the se-
employer sends funds through the ACH curity using the redemption proceeds.
method to your TreasuryDirect  ac-
count; § 363.142 Can I redeem my certificate
(b) deposit by your financial institu- of indebtedness for cash?
tion, in which your financial institu- You can redeem part or all of the
tion sends funds by the ACH method to value of your certificate of indebted-
your TreasuryDirect account on a re- ness at any time, with one exception: if
curring or one-time basis; you purchased all or a portion of your
(c) through the Buy Direct  function certificate of indebtedness through a
of your TreasuryDirect account, in debit using the ACH method, you may
which you direct us to debit funds from not schedule a redemption from your
your account at a financial institution certificate of indebtedness within five
to purchase a certificate of indebted- business days after the date of the
ness. This method is limited to an debit entry.
amount no greater than $1000 per trans- [70 FR 57444, Sept. 30, 2005]
action. When you use the Buy Direct
function to debit funds to purchase all § 363.143 What happens if an ACH pay-
or a portion of a certificate of indebt- ment used to purchase a certificate
edness, you will not be permitted to of indebtedness is later reversed?
schedule a redemption for cash from If an ACH payment used to purchase
your certificate of indebtedness within a certificate of indebtedness is later re-
five business days after the date of the versed, we reserve the right to reverse
debit entry; or the purchase of the certificate of in-
(d) by using the proceeds from the re- debtedness. If the ACH reversal occurs
demption or interest payment of a se- after the certificate of indebtedness
curity to purchase a certificate of in- has been redeemed, we reserve the
debtedness. right to reverse previously processed
[69 FR 50309, Aug. 16, 2004, as amended at 70 security transactions, including securi-
FR 57444, Sept. 30, 2005] ties that were purchased as gifts and
securities that have been transferred or
§ 363.139 Is Treasury liable for the delivered from your account to the ac-
purchase of a certificate of indebt- count of another TreasuryDirect  ac-
edness that is made in error? count owner.
We are not liable for any deposits of
funds for the purchase of a certificate § 363.144 May I delete a pending trans-
of indebtedness that are made in error action involving a certificate of in-
by your financial institution or em- debtedness?
ployer. (a) You may delete a pending pur-
chase of a certificate of indebtedness
§ 363.140 When is a certificate of in- initiated from your TreasuryDirect 
debtedness issued? account.
A certificate of indebtedness is issued (b) You may delete a pending pur-
the business day after the purchase chase of a security using a certificate
transaction is made. of indebtedness as payment.

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§ 363.145 31 CFR Ch. II (7–1–07 Edition)

(c) You may not delete a pending re- (3) Converted Series E savings bonds
demption of all or part of the value of registered in the owner with bene-
a certificate of indebtedness. ficiary form of registration, where the
beneficiary has consented to a change
§ 363.145 May I transfer or deliver my in the registration of the bonds after
certificate of indebtedness? conversion; and
A certificate of indebtedness is non- (4) Converted savings bonds of all se-
transferable. You may not deliver a ries registered in the coowner form of
certificate of indebtedness to another registration, where the non-converting
TreasuryDirect  account as a gift. coowner has consented to a change in
the registration of the bonds after con-
§ 363.146 May a certificate of indebted- version.
ness be pledged or used as collat-
eral? [70 FR 14943, Mar. 23, 2005, as amended at 70
FR 57347, Sept. 30, 2005]
A certificate of indebtedness may not
be pledged or used as collateral for the § 363.161 What definitive savings
performance of an obligation. bonds are eligible to be converted
[69 FR 50309, Aug. 16, 2004. Redesignated at 70
to book-entry bonds?
FR 57437, Sept. 30, 2005] Series E, Series EE, and Series I sav-
ings bonds issued in denominations of
§§ 363.147–363.152 [Reserved] $25 or greater, in single owner, co-
owner, or owner with beneficiary forms
Subpart E—Conversion of a of registration, are eligible for conver-
Definitive Savings Bond sion to book-entry bonds in
TreasuryDirect .
SOURCE: 70 FR 14943, Mar. 23, 2005, unless
otherwise noted.
§ 363.162 Who may convert a definitive
savings bond?
§ 363.160 What subparts govern the The owner of a TreasuryDirect  pri-
conversion of definitive savings mary account may convert a definitive
bonds? savings bond.
(a) This subpart governs: (a) Bond that is registered to the ac-
(1) The process of converting defini- count owner. The owner of a definitive
tive savings bonds of all eligible series savings bond registered in the single
and types of registration to book-entry owner form of registration, either co-
bonds in TreasuryDirect ; owner of a bond registered in the co-
(2) Converted savings bonds of all se- owner form of registration, and the
ries registered in the coowner form of owner of a bond registered in the owner
registration, unless the non-converting with beneficiary form of registration of
coowner consents to a change in the all eligible series, may convert that de-
registration of the bonds after conver- finitive bond to a book-entry bond to
sion; be held in his or her TreasuryDirect ac-
(3) Converted savings bonds of Series count.
E registered in the owner with bene- (b) Bond that is registered to someone
ficiary form of registration, unless the other than the account owner. We will
beneficiary consents to a change in the convert an eligible definitive savings
registration of the bonds after conver- bond submitted by someone other than
sion; and the registered owner of the savings
(4) Converted savings bonds of all se- bond. See the special rules in section
ries that are held as gift bonds by the 363.166.
person who converted the bonds.
(b) Subpart C governs: § 363.163 How do I convert an eligible
(1) Converted savings bonds of any se- definitive savings bond?
ries registered in the single owner form We will provide online instructions
of registration; for converting your definitive savings
(2) Converted Series EE and Series I bond. You must surrender to us the de-
savings bonds registered in the owner finitive bond to be converted at the
with beneficiary form of registration; time of conversion.

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Fiscal Service, Treasury § 363.167

§ 363.164 Is a converted savings bond (2) Delivery of unmatured gift bond to


eligible to be converted back into a registered owner. The TreasuryDirect
definitive bond? account owner may deliver the con-
Once a definitive savings bond has verted gift bond to the TreasuryDirect
been converted to a book-entry bond, it account (or minor linked account, if
may not be converted back into a de- the registered owner is a minor) of the
finitive bond. registered owner, or, if the bond is reg-
istered in the coowner form of registra-
§ 363.165 What happens when I con- tion, to the account of either coowner.
vert a savings bond that is reg- A bond registered in coowner or owner
istered in my name as the owner, with beneficiary form of registration
either coowner, or the owner with a will retain the coowner or beneficiary
beneficiary?
form of registration upon delivery.
(a) Unmatured savings bond. When the (b) Savings bond that has reached final
conversion is approved, an unmatured maturity—(1) General. A savings bond
savings bond that is registered in the that has reached final maturity and is
name of the TreasuryDirect  account registered in the name of someone
owner as single owner, either coowner, other than the account owner will be
or owner with beneficiary, will be re- converted to a book-entry bond, re-
leased to the account owner’s conver- leased as a gift bond into the account
sion linked account. owner’s conversion linked account, and
(b) Matured savings bond. A savings automatically redeemed. We will hold
bond that has reached final maturity the redemption proceeds in the name of
and is registered in the name of the the registered owner of the definitive
Treasury Direct account owner as sin- bond until the proceeds are delivered to
gle owner, either coowner, or owner the TreasuryDirect account (or minor
with beneficiary, will be converted to a linked account, if the registered owner
book-entry bond and automatically re- is a minor) of the registered owner.
deemed. The redemption proceeds will (2) Delivery of bond proceeds to reg-
be used to purchase a certificate of in- istered owner. If the gift bond has
debtedness in the account owner’s reached final maturity and has been
name in his or her primary account. automatically redeemed, then the
[70 FR 14943, Mar. 23, 2005, as amended at 70 Treasury Direct account owner may di-
FR 57347, Sept. 30, 2005] rect that the held redemption proceeds
be delivered to the Treasury Direct ac-
§ 363.166 What happens when I con- count of the registered owner (or minor
vert a savings bond that is not reg- linked account, if the registered owner
istered in my name as owner, either
coowner, or owner with beneficiary is a minor), where we will use the pro-
(including a bond registered in the ceeds to purchase a certificate of in-
name of a minor)? debtedness in the name of the reg-
istered owner. If the bond is registered
We will presume that a savings bond in the coowner form of registration,
registered in the name of someone the account owner may direct that the
other than the TreasuryDirect  ac- held redemption proceeds be delivered
count owner (including a bond reg- to the account of either coowner,
istered in the name of a minor), was where we will use the proceeds to pur-
purchased by the account owner as a chase a certificate of indebtedness in
gift for the registered owner. the name of the coowner to whose ac-
(a) Unmatured savings bond—(1) Gen- count the bond was delivered.
eral. An unmatured savings bond reg-
istered in the name of someone other [70 FR 14943, Mar. 23, 2005, as amended at 70
than the account owner will be con- FR 57347, Sept. 30, 2005]
verted to a book-entry bond, released
as a gift bond to the account owner’s § 363.167 How will a converted savings
conversion linked account, and held bond be registered?
until delivered to the TreasuryDirect The registration of the converted
account (or minor linked account, if bond will be the same as on the defini-
the registered owner is a minor) of the tive bond, provided that it was reg-
registered owner. istered properly in an authorized form

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§ 363.168 31 CFR Ch. II (7–1–07 Edition)

of registration. We will change a defin- § 363.169 What transactions can I con-


itive savings bond that was not reg- duct in a converted savings bond on
istered in an authorized form of reg- which I am registered as the single
istration to the closest authorized form owner, either coowner, or the
owner with a beneficiary?
of registration. For example, a defini-
tive savings bond erroneously reg- (a) Savings bond of any series registered
istered ‘‘John Doe and Jane Doe’’ will in the single owner form of registration.
be changed to ‘‘John Doe or Jane Doe.’’ By converting a definitive savings bond
We are not liable to any person for any to a book-entry bond, you have con-
such decision as to the closest form of sented to the bond being treated as if it
were originally issued as a book-entry
authorized registration.
bond in TreasuryDirect . The bond
§ 363.168 What rules regarding reg- will be subject to the provisions of sub-
istration apply to a converted sav- part C of this part. Any transaction
ings bond? available for a book-entry bond origi-
nally issued in the TreasuryDirect sys-
(a) Savings bond of any series registered tem is available for a converted bond
in the single owner form of registration. registered in single owner form of reg-
By converting a definitive bond of any istration.
eligible series registered in the single (b) Savings bond of Series EE and Series
owner form of registration to book- I registered in the owner with beneficiary
entry in TreasuryDirect , the owner form of registration. By converting a de-
has consented to the bond being gov- finitive savings bond to a book-entry
erned by the rules regarding registra- bond, you have consented to the bond
tion contained in subpart C of this being treated as if it were originally
part. issued as a book-entry bond in
(b) Savings bond of Series EE or Series TreasuryDirect. The bond will be sub-
I registered in the owner with beneficiary ject to the provisions of subpart C of
form of registration. By converting a de- this part. Any transaction available for
finitive bond of Series EE or Series I a book-entry bond purchased in the
registered in an owner with beneficiary TreasuryDirect system is available for
form of registration to a book-entry a converted bond of Series EE and Se-
bond in TreasuryDirect, the owner has ries I registered in the owner with ben-
consented to the bond being governed eficiary form of registration.
(c) Savings bond of Series E registered
by the rules regarding registration con-
in the owner with beneficiary form of reg-
tained in subpart C of this part.
istration. The owner of a converted Se-
(c) Savings bond of Series E registered ries E bond registered in the owner
in the owner with beneficiary form of reg- with beneficiary form of registration
istration. The registration of a con- may make the following transactions:
verted savings bond of Series E reg- (1) Provide view rights to the bene-
istered in the owner with beneficiary ficiary. The owner may provide the ben-
form of registration may be changed eficiary with the right to view the bond
upon the request of the owner and the in the beneficiary’s TreasuryDirect ac-
consent of the beneficiary. The trans- count. Once the right to view the bond
action will not be conducted through is provided to the beneficiary, the
the registered owner’s TreasuryDirect owner may not revoke that right.
account. (2) Transfer without change in registra-
(d) Savings bond of any series registered tion. The owner may transfer the bond
in the coowner form of registration. The without a change of registration to an-
registration of a converted savings other account in the name of the
bond of any eligible series registered in owner.
the coowner form of registration may (3) Remove the beneficiary from the reg-
be changed upon the request of one co- istration. The owner may remove the
owner and the consent of the other co- beneficiary’s name from the registra-
owner. The transaction will not be con- tion with the consent of the bene-
ficiary. The transaction will not be
ducted through the registered owner’s
conducted through the registered own-
TreasuryDirect account.
er’s TreasuryDirect account. The bond

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Fiscal Service, Treasury § 363.171

will be changed to the single owner account of the non-converting co-


form of registration. Once the trans- owner) may remove the other coowner
action is completed, the bond will be from the registration. The consent of
treated as a bond originally issued as a the other coowner is required. The
book-entry bond in TreasuryDirect, bond must reside in the account of the
and will be subject to subpart C of this coowner who is requesting the trans-
part. The owner may then perform any action. The transaction will not be
transaction available for book-entry conducted through the registered own-
bonds purchased in the TreasuryDirect er’s TreasuryDirect account. The
system. bond’s registration will be changed to
(4) Transfer to the beneficiary or a third the single owner form of registration.
party with a change in registration. The Once this transaction is completed, the
owner may remove his or her name bond will be treated as a bond origi-
from the registration and transfer the nally issued as a book-entry bond in
bond to the account of the beneficiary TreasuryDirect, and will be subject to
or a third party, with the consent of subpart C of this part. The owner may
the beneficiary. The transaction will then perform any transaction available
not be conducted through the reg- for book-entry bonds purchased in the
istered owner’s TreasuryDirect ac- TreasuryDirect system.
count. The bond will be transferred in (4) Transfer to non-converting coowner
the single owner form of registration. or a third party with a change in registra-
Once the transfer is completed, the tion. The converting coowner may re-
bond will be treated as a bond origi- move his or her name from the reg-
nally issued as a book-entry bond in istration and transfer the bond to ei-
TreasuryDirect, and will be subject to ther the account of the non-converting
subpart C of this part. The owner may coowner or to the account of a third
then perform any transaction available party. The consent of the non-con-
for book-entry bonds purchased in the verting coowner is required. The trans-
TreasuryDirect system. action will not be conducted through
(d) Savings bond of any series registered the registered owner’s TreasuryDirect
in the coowner form of registration. The account. The bond will be transferred
converting coowner of a converted in the single owner form of registra-
bond registered in the coowner form of tion. Once the transfer is completed,
registration may make the following the bond will be treated as a bond
transactions: originally issued as a book-entry bond
(1) Provide view or transact rights to in TreasuryDirect, and will be subject
non-converting coowner. The converting to subpart C of this part. The owner
coowner may provide the non-con- may then perform any transaction
verting coowner with the rights to available for book-entry bonds pur-
chased in the TreasuryDirect system.
view the bond or to view and redeem
the bond through the non-converting § 363.170 What transactions can I con-
coowner’s TreasuryDirect account. duct in a savings bond that I con-
Once either of these rights is provided verted on which I am not registered
to the non-converting coowner, the as the owner, either coowner, or
converting coowner may not revoke owner with beneficiary?
the right. The only transaction that you may
(2) Transfer without change in registra- conduct on a savings bond that you
tion. The converting coowner may converted on which you are not reg-
transfer the bond without a change in istered as the owner, either coowner, or
registration to another account in the owner with beneficiary is to deliver the
name of the converting coowner. The converted bond to the TreasuryDirect 
bond may be transferred without the account of the registered owner.
consent of the non-converting coowner,
and will retain the coowner registra- § 363.171 How do I redeem a converted
tion. savings bond?
(3) Remove a coowner from the registra- (a) Before final maturity—(1) Savings
tion. The converting coowner (or the bond of any series registered either in the
non-converting coowner, if the bond single owner or owner with beneficiary
has been previously transferred to the form of registration. You may redeem

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§§ 363.172–363.175 31 CFR Ch. II (7–1–07 Edition)

your converted savings bond any time § 363.200 What Treasury securities
prior to final maturity after the min- does this subpart govern?
imum holding period through your
This subpart provides the rules for
TreasuryDirect  account.
(2) Savings bond of any series registered holding marketable Treasury bills,
in the coowner form of registration. The notes, and bonds in book-entry form in
converting coowner may redeem the TreasuryDirect .
converted savings bond at any time
prior to final maturity after the min- § 363.201 What other regulations gov-
ern book-entry marketable book-
imum holding period through his or her entry Treasury bills, notes, and
TreasuryDirect account. The non-con- bonds?
verting coowner may redeem the con-
verted savings bond at any time prior (a) 31 CFR part 356 governs the sale
to final maturity after the minimum and issue of marketable book-entry
holding period provided that he or she Treasury securities on or after March
has been granted transaction rights in 1, 1993, whether held in
the converted bond by the converting TreasuryDirect , Legacy Treasury Di-
coowner. rect, or the commercial book-entry
(b) Upon final maturity—(1) Savings system.
bond of any series registered in the single (b) 31 CFR part 357 governs holding
owner, owner with beneficiary, or co- marketable book-entry Treasury bills,
owner forms of registration. If you have notes, and bonds in the Legacy Treas-
not previously redeemed or transferred ury Direct system and in the commer-
your converted savings bond, it will be
cial book-entry system.
automatically redeemed for you at
final maturity. § 363.202 What marketable Treasury
(2) The redemption proceeds will be securities may I purchase and hold
automatically used to purchase a cer- through my TreasuryDirect  ac-
tificate of indebtedness registered in count?
your name and held in your
TreasuryDirect account. (a) Purchase. You may purchase any
marketable Treasury security that is
§§ 363.172–363.175 [Reserved] available for purchase through the
TreasuryDirect Web site.
§ 363.176 May a converted savings (b) Hold. You may transfer into the
bond be pledged or used as collat-
eral? system and maintain in your
TreasuryDirect account any eligible
A converted savings bond may not be marketable book-entry Treasury bill,
pledged or used as collateral for the note, or bond.
performance of an obligation.
§ 363.203 After I purchase my market-
§§ 363.177–363.178 [Reserved] able Treasury security in
§ 363.179 Does Public Debt make any TreasuryDirect , is there a period
reservations as to the conversion of of time during which I may not
an eligible savings bond? transfer the security?
We may reject any application for Once you purchase a marketable
conversion or refuse to convert a sav- Treasury security in TreasuryDirect,
ings bond in any case or class of cases, you may not transfer that security for
if we deem the action to be in the pub- a period of 45 calendar days after the
lic interest. Our action in any such re- issue date of the security, or the term
spect is final. of the security, whichever is less.

§§ 363.180–363.199 [Reserved] § 363.204 What registrations are avail-


able for my marketable Treasury
Subpart F—Marketable Treasury securities held in TreasuryDirect ?
Securities You may register your marketable
Treasury securities in any form of reg-
SOURCE: 70 FR 57444, Sept. 30, 2005, unless istration permitted by § 363.20 of this
otherwise noted. part.

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Fiscal Service, Treasury § 363.209

§ 363.205 How do I reinvest the pro- § 363.208 Can I transfer my marketable


ceeds of a maturing security held in Treasury security from my
TreasuryDirect ? TreasuryDirect  account to an ac-
count in another book-entry sys-
You can reinvest the proceeds of a
tem?
maturing security held in
TreasuryDirect by first directing that After the initial 45-calendar day
the proceeds from the maturing secu- holding period for your marketable
rity be used to purchase a certificate of Treasury security (see § 363.203) you can
indebtedness in your account, and then transfer your security to an account in
using the redemption proceeds of your Legacy Treasury Direct or to an ac-
certificate of indebtedness to purchase count in the commercial book-entry
another security. Any purchase using system in increments of $1000.
the proceeds from a certificate of in-
debtedness is considered a reinvest- § 363.209 How can I direct that my
ment. marketable Treasury security be
sold on the open market (Sell Di-
§ 363.206 How can I transfer my mar- rect )?
ketable Treasury security into my (a) Sell Direct. We offer a service, re-
TreasuryDirect  account from an- ferred to as Sell Direct, in which we
other book-entry system? will sell your marketable Treasury se-
(a) Legacy Treasury Direct to curity for you on the open market at
TreasuryDirect. 31 CFR part 357, subpart your request. We will transfer your se-
C, governs the transfer of a marketable curity to an account in the commercial
book-entry Treasury security from book-entry system maintained by our
your Legacy Treasury Direct account agent, and will sell the security on
into TreasuryDirect. your behalf. By authorizing the trans-
(b) Commercial book-entry system to fer and sale of the security, you agree
TreasuryDirect. You may transfer your to accept the price received by our
marketable Treasury security from the agent. If our agent is unable to obtain
commercial book-entry system by con- at least one price quote for the secu-
tacting the financial institution or rity, the security will be returned to
broker that handles your commercial your TreasuryDirect  account.
book-entry account. (b) Fee. We charge a fee for each secu-
(c) Form of registration upon transfer to rity sold on your behalf. By author-
TreasuryDirect. When your security is izing the sale of the security, you au-
transferred into your TreasuryDirect thorize our agent to deduct the fee
account, it will be transferred into from the proceeds of the sale. If our
your account in your name in the sole agent is unable to complete the sale,
owner form of registration, regardless no fee will be charged. The amount of
of the form of registration prior to the the fee is published in the FEDERAL
transfer. After the transfer is com- REGISTER.
pleted, you can change the registration (c) Definitions. The following defini-
to any form of registration permitted tions will help you understand this sec-
by § 363.20. tion and the confirmation that you will
(d) Amounts transferred. You can only receive after the sale is completed.
transfer in increments of $1000. (1) The trade date is the date that
your security is sold.
§ 363.207 Can I transfer my marketable
(2) A security, for the purpose of this
Treasury security from my
TreasuryDirect  account to an- section, is any amount represented by
other TreasuryDirect account? a separate CUSIP number (see defini-
tion of CUSIP in 31 CFR part 356).
After the initial 45-calendar day
(3) The settlement date is the date that
holding period for your marketable
the proceeds of the sale are released to
Treasury security (see § 363.203) you can
the financial institution that you des-
transfer your security to another
ignated to receive the proceeds.
TreasuryDirect account in increments
of $1000.

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§ 363.210 31 CFR Ch. II (7–1–07 Edition)

(4) The yield to maturity, or yield, is (a) If the waiver would not be incon-
the annualized rate of return to matu- sistent with law or equity;
rity on a fixed principal security ex- (b) If the waiver does not impair any
pressed as a percentage. For an infla- material existing rights; and
tion-indexed security, yield means real (c) If we are satisfied that the waiver
yield, as defined in 31 CFR part 356. would not subject the United States to
(d) On the settlement date, our agent any substantial expense or liability.
will release the settlement proceeds,
[67 FR 64286, Oct. 17, 2002. Redesignated at 70
less the fee, to the account at the fi-
FR 14943, Mar. 23, 2005. Redesignated at 70 FR
nancial institution that you des- 57444, Sept. 30, 2005]
ignated.
(e) When the transaction is complete, § 363.251 Can I be required to provide
our agent will send you a confirmation. additional evidence to support a
The confirmation will include the transaction?
price, trade date, settlement date, set- We may require additional evidence
tlement amount or net amount, trans- and/or a bond of indemnity, with or
action fee, and yield to maturity. without surety, in any case where we
(f) We are not liable for changes in determine it necessary to protect the
market conditions affecting the price interests of the United States.
received for the security, or for any
loss that you may incur as a result of [67 FR 64286, Oct. 17, 2002. Redesignated at 70
the sale or the inability of our agent to FR 14943, Mar. 23, 2005. Redesignated at 70 FR
57444, Sept. 30, 2005]
complete the sale.
(g) We reserve the right to terminate § 363.252 May Public Debt amend or
the Sell Direct  service at any time. supplement these regulations?
§ 363.210 Is there any period of time We may amend, revise, or supplement
during which I will be unable to these regulations at any time.
process certain transactions regard-
ing my security? [67 FR 64286, Oct. 17, 2002. Redesignated at 70
FR 14943, Mar. 23, 2005. Redesignated at 70 FR
A closed book period will be in effect 57444, Sept. 30, 2005]
for four business days prior to the date
a marketable security interest or re-
demption payment is made. This means
that certain transactions made during
the closed book period will be delayed
until after the closed book period is
completed and the payment is made.
You will be unable to transfer the secu-
rity, change the payment destination,
change the registration of the security,
or use Treasury’s Sell Direct  service
during this closed book period.

§§ 363.211–363.249 [Reserved]

Subpart G [Reserved]

Subpart H Miscellaneous
§ 363.250 May Public Debt waive these
regulations?
We may waive or modify any provi-
sion of the regulations in this part. We
may do so in any particular case or
class of cases for the convenience of
the United States or in order to relieve
any person or persons of unnecessary
hardship:

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