[Federal Register Volume 62, Number 73 (Wednesday, April 16, 1997)]
[Rules and Regulations]
[Page 18694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9543]
[[Page 18693]]
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Part III
Department of the Treasury
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Fiscal Service
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31 CFR Part 357
Regulations Governing Book-Entry Treasury Bonds, Notes and Bills; Final
Rule
Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 /
Rules and Regulations
[[Page 18694]]
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DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 357
Regulations Governing Book-Entry Treasury Bonds, Notes and Bills
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury (Department) or (Treasury) is
issuing in final form an amendment to its regulations governing book-
entry Treasury Bonds, Notes and Bills to reduce the number of days
required for processing transaction requests affecting payment
instructions, transaction requests affecting reinvestments on Treasury
bills, and for the receipt of evidence supporting such transaction
requests within the TREASURY DIRECT system from 20 calendar days to 10
business days. This change will benefit the TREASURY DIRECT investor by
giving such investor more time prior to a payment or maturity date to
submit a transaction request affecting payment instructions, a
transaction request affecting reinvestment of a bill, and evidence in
support of such transaction requests, and will make the TREASURY DIRECT
system a more viable alternative to TRADES, the commercial book-entry
system for holding Treasury securities. In addition, Treasury is
studying other possible changes to TREASURY DIRECT, including the
possibility that investors could hold stripped securities in the
TREASURY DIRECT system.
EFFECTIVE DATE: April 16, 1997.
FOR FURTHER INFORMATION CONTACT: Maureen Parker, Director, Division of
Securities Systems, Bureau of the Public Debt (304) 480-7761; Susan
Klimas, Attorney-Adviser, Office of the Chief Counsel, Bureau of the
Public Debt (304) 480-5192.
SUPPLEMENTARY INFORMATION: This final rule amends the general
regulations governing book-entry Treasury Bonds, Notes and Bills to
change the number of days required for the receipt of transaction
requests within the TREASURY DIRECT system which affect payment
instructions from not less than 20 calendar days to not less than 10
business days preceding the next payment date. This final rule also
changes the number of days required by the Department to receive
evidence in support of a transaction request before the maturity date
of a security from at least 20 calendar days to at least 10 business
days. Thirdly, this rule changes the number of days required to receive
a transaction request to reinvest the proceeds of a Treasury bill, or a
request to revoke a previous direction to reinvest such bill from not
less than 20 calendar days to not less than 10 business days prior to
the maturity date of the bill. The Department has reserved the right to
act on any transaction request or evidence in support of such request
received less than 10 calendar days prior to the next payment date if,
in its discretion, sufficient time remains for processing.
Procedural Requirements
It has been determined that this final rule does not meet the
criteria for a ``significant regulatory action,'' as defined in
Executive Order 12866. Therefore, the regulatory review procedures
contained therein do not apply.
This final rule relates to matters of public contract and
procedures for U.S. securities. Accordingly, pursuant to 5 U.S.C.
553(a)(2), the notice, public comment and delayed effective date
provisions of the Administrative Procedure Act do not apply. As no
notice of proposed rulemaking is required, the provisions of the
Regulatory Flexibility Act (5 U.S.C. 601, et seq.) do not apply.
There are no new collections of information contained in this final
rule, therefore, the Paperwork Reduction Act (44 U.S.C. 3504(h)) does
not apply.
List of Subjects in 31 CFR Part 357
Banks, Banking, Bonds, Federal Reserve System, Government
securities.
Dated: April 4, 1997.
Gerald Murphy,
Fiscal Assistant Secretary.
For the reasons set out in the preamble, 31 CFR part 357 is amended
as follows:
PART 357--GENERAL REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS,
NOTES AND BILLS
1. The authority citation for part 357 continues to read as
follows:
Authority: 31 U.S.C. Chapter 31, 5 U.S.C. 301 and 12 U.S.C. 391.
2. Section 357.3 is amended by adding the following definition to
read as follows:
Sec. 357.3 Definitions.
In this part, unless the context indicates otherwise:
* * * * *
Business day means any day other than a Saturday, Sunday, or other
day on which the Federal Reserve Banks are not open for business.
* * * * *
3. Section 357.27 is amended by revising paragraph (b), to read as
follows:
Sec. 357.27 Reinvestment.
* * * * *
(b) Treasury bills. A request by an owner for a single or
successive reinvestment of a Treasury bill must be made in accordance
with the terms prescribed on the tender form submitted at the time of
purchase of the original bill, or by a subsequent transaction request
received not less than ten (10) business days prior to the maturity
date of the bill. A request to revoke a direction to reinvest the
proceeds of a bill must be received by the Department not less than ten
(10) business days prior to the maturity date of the bill. If either a
request for reinvestment or revocation of a reinvestment request is
received less than ten (10) business days prior to maturity of the
original bill, the Department may in its discretion act on such request
if sufficient time remains for processing.
* * * * *
4. Section 357.29 is amended by revising the first three sentences
to read as follows:
Sec. 357.29 Time required for processing transaction request.
For purposes of a transaction request affecting payment
instructions with respect to a security, a proper request must be
received not less than ten (10) business days preceding the next
payment date. If a transaction request is received less than ten (10)
business days preceding a payment date, the Department may in its
discretion act on such request if sufficient time remains for
processing. * * *
5. Section 357.30 is amended by revising the first sentence to read
as follows:
Sec. 357.30 Cases of delay or suspension of payment.
If evidence required by the Department in support of a transaction
request is not received by the Department at least ten (10) business
days before the maturity date of the security, or if payment at
maturity has been suspended pursuant to Sec. 357.26(d), then, except as
provided in Sec. 357.27, in cases of reinvestment, the Department will
redeem the security and hold the redemption proceeds in the same form
of registration as the security redeemed, pending further disposition.
* * *
[FR Doc. 97-9543 Filed 4-15-97; 8:45 am]
BILLING CODE 4810-39-P
