§ 370.31 - Authorization.

(a) General. The purchaser of a security shall authorize an originator to initiate Automated Clearing House debit entries and shall designate a deposit account at a financial institution to receive such entries. An authorization shall be accomplished only through a form approved by the Bureau of the Public Debt.

(b) Persons to sign. The signatures of the purchaser and any other persons whose signatures ordinarily are required to withdraw funds from the designated deposit account are necessary for the authorization to be effective. Except to the extent required by the Bureau of the Public Debt, the originator will not be required to verify the identity of the purchaser or the authenticity of the signatures.

(c) Recurring debit entries. A single authorization may allow or require debit entries to be made to a deposit account on a recurring basis, if the approved authorization form so provides.

(d) Subsequent authorizations. A purchaser's subsequent authorization cancels a previous authorization.

(e) Successor originator. The Bureau of the Public Debt reserves the right to name a successor to the originator named on the debit authorization form. The designation of a successor shall be effective without additional notice to the purchaser.