96-33274. Regulations Governing Book-Entry Treasury Bonds, Notes, and Bills; Determination Regarding State Statute; California

[Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
[Rules and Regulations]
[Page 26]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33274]


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DEPARTMENT OF THE TREASURY
Fiscal Service

31 CFR Part 357

[Department of the Treasury Circular, Public Debt Series, No. 2-86]


Regulations Governing Book-Entry Treasury Bonds, Notes, and 
Bills; Determination Regarding State Statute; California

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Determination of substantially identical state statute.

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SUMMARY: The Department of the Treasury is announcing that it has 
reviewed the State of California's recently enacted law adopting 
Revised Article 8 of the Uniform Commercial Code--Investment Securities 
(``Revised Article 8'') and determined that the state statute is 
substantially identical to the uniform version of Revised Article 8 for 
purposes of interpreting the rules in 31 CFR Part 357, Subpart B (the 
``TRADES'' regulations). Therefore, the portion of the TRADES rule 
requiring application of Revised Article 8 if a state has not adopted 
Revised Article 8 will no longer be applicable for California.

EFFECTIVE DATE: January 2, 1997.

FOR FURTHER INFORMATION CONTACT: Walter T. Eccard, Chief Counsel (202) 
219-3320, or Cynthia E. Reese, Deputy Chief Counsel [phone].

SUPPLEMENTARY INFORMATION: On August 23, 1996, the Department published 
a final rule to govern securities held in the commercial book-entry 
system, now referred to as Treasury/Reserve Automated Debt Entry System 
(``TRADES''). 61 FR 43626.
    In the commentary to the final regulations, Treasury stated that 
for the 28 states that had by then adopted Revised Article 8, the 
versions enacted were ``substantially identical'' to the uniform 
version for purposes of the rule. Therefore for those states, that 
portion of the TRADES rule requiring application of Revised Article 8 
was not invoked. Treasury also indicated in the commentary that as 
additional states adopted Revised Article 8, notice would be provided 
in the Federal Register as to whether the enactments were substantially 
identical to the uniform version so that the federal application of 
Revised Article 8 would no longer be in effect for those states. 
Treasury adopted this approach in an attempt to provide certainty in 
application of the rule in response to public comments. This, the first 
such notice, addressed California's recent adoption of Article 8.
    Treasury has reviewed the California enactment and concluded that 
the variations in California's statute from Revised Article 8 are 
minor. Therefore, Treasury has concluded that the California enactment 
is substantially identical to Revised Article 8. Accordingly, if either 
Sec. 357.10(b) or Sec. 357.11(a) directs a person to California, the 
provisions of Secs. 357.10(c) and 357.11(d) of the TRADES rule are not 
applicable.

    Dated: December 20, 1996.
Richard L. Gregg,
Commissioner of the Public Debt.
[FR Doc. 96-33274 Filed 12-31-96; 8:45 am]
BILLING CODE 4810-39-M