98-29279. Coupons Under Book-Entry Safekeeping (CUBES) and Bearer Corpora Conversion System (BECCS); Extension of Programs

[Federal Register Volume 63, Number 211 (Monday, November 2, 1998)]
[Notices]
[Pages 58809-58810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29279]


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DEPARTMENT OF THE TREASURY

Fiscal Service


Coupons Under Book-Entry Safekeeping (CUBES) and Bearer Corpora 
Conversion System (BECCS); Extension of Programs

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

ACTION: Notice.

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SUMMARY: This notice is being published to announce the extension by 
the Department of the Treasury of its Coupons Under Book-Entry 
Safekeeping (CUBES) and its Bearer Corpora Conversion System (BECCS) 
programs, pursuant to 31 CFR part 358. In a notice published on March 
6, 1998 (63 FR 11357), the previously announced conversion window for 
both CUBES and BECCS ended on October 9, 1998. Due to the popularity of 
the BECCS conversion program, the Department is extending the operation 
of the conversion window beyond October 9, 1998, and will continue to 
accept both stripped bearer corpora and detached bearer coupons for 
conversion to book-entry form until further notice. The Department of 
the Treasury will publish a notice in the Federal Register not less 
than thirty (30) calendar days prior to the effective ending date of 
the CUBES and BECCS conversion window.
    The extension of the CUBES window will continue to permit the 
conversion to book-entry of certain physical coupons detached from U.S. 
Treasury bearer securities. The extension of the BECCS window will 
continue to permit the conversion to book-entry of U. S. Treasury 
stripped bearer corpora to book-entry form. CUBES and BECCS securities 
will be held in the commercial book-entry system, or TRADES. With the 
extension of the conversion window for CUBES and BECCS, depository 
institutions holding eligible coupons and corpora will continue to have 
the opportunity to convert such coupons and corpora to book-entry form 
until further notice by the Department. Other entities wishing to 
convert coupons and corpora must arrange to do so through a depository 
institution.

FOR FURTHER INFORMATION CONTACT: Maureen Parker, Director, Division of 
Securities Systems, Bureau of the Public Debt [phone]; Susan 
Klimas, Attorney-Adviser, Office of the Chief Counsel, Bureau of the 
Public Debt [phone]; Edward C. Gronseth, Deputy Chief Counsel, 
Office of the Chief Counsel, Bureau of the Public Debt [phone].

SUPPLEMENTARY INFORMATION: 31 CFR part 358, Regulations governing Book-
Entry Conversion of Detached Bearer Coupons and Bearer Corpora permits 
openings of the CUBES and BECCS windows for conversion to book-entry 
form of detached, physical coupons and stripped bearer corpora. 
Accordingly, pursuant to that authority, Treasury is extending the 
window for conversion under its CUBES and BECCS programs until further 
notice. Under the programs, depository institutions holding coupons 
stripped from Treasury securities and bearer corpora that have been 
stripped of all non-callable coupons will continue to be permitted to 
convert them to book-entry form. Entities other than depository 
institutions that hold such coupons and bearer corpora and that wish to 
convert them to book-entry accounts under the CUBES and BECCS programs 
must

[[Page 58810]]

arrange for conversion through a depository institution.
    Detached bearer coupons and bearer corpora that are submitted 
within 30 days of their maturity date or, if the call provision has 
been invoked, within 30 days of their call date, will not be accepted 
for conversion.
    Presentation of coupons under the CUBES and BECCS windows may be 
made only at the Federal Reserve Bank of New York and in compliance 
with the presentation procedures established by the Federal Reserve 
Bank of New York. Submissions of coupons are subject to the terms and 
conditions described in part 358.
    A depository institution wishing to participate in CUBES or BECCS 
should contact Grace Jaiman [phone] or Joanna Grever (212) 720-
8184 of the Federal Reserve Bank of New York as soon as possible to 
obtain an information package and the necessary supplies required to 
present the stripped coupons and bearer corpora in acceptable form. The 
institution should inform the Federal Reserve Bank of New York of its 
intention to participate as soon as possible, but no later than two 
weeks before deposit, and should submit a completed holdings statement 
on the form provided in the information package.
    Participants will be charged a separate conversion transaction fee 
of $4 for each coupon and each corpus conversion transaction processed. 
A corpus submitted with all associated callable coupons will be charged 
one conversion transaction fee. A corpus submitted minus one or more 
associated callable coupons will be charged a transaction fee for the 
conversion of the corpus and a transaction fee for each separate 
callable coupon converted. Each non-callable coupon submitted will be 
charged a conversion transaction fee. The fee for any coupon or corpus 
that is rejected by the Department, for whatever reason, is non-
refundable.
    Submitters of coupons are deemed to agree to the terms and 
conditions set forth in this notice, 31 CFR part 358, and any other 
requirements that may be prescribed by the Department of the Treasury 
and the Federal Reserve Bank of New York.

    Dated: October 28, 1998.
R. Lee Grandy,
Acting Commissioner, Bureau of the Public Debt.
[FR Doc. 98-29279 Filed 10-28-98; 3:14 pm]
BILLING CODE 4810-39-P