98-10810. Regulations Governing Book-Entry Treasury Bonds, Notes, and Bills; Determination Regarding State Statute

[Federal Register Volume 63, Number 78 (Thursday, April 23, 1998)]
[Rules and Regulations]
[Pages 20099-20100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10810]


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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

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 recently enacted South Dakota law adopting Revised Article 
8 of the Uniform Commercial Code--Investment Securities (``Revised 
Article 8'') and has determined that it 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, that 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 South Dakota.

EFFECTIVE DATE: April 23, 1998.

FOR FURTHER INFORMATION CONTACT: Lisa A. Crosby, Attorney-Advisor, 
[phone], or Cynthia E. Reese, Deputy Chief Counsel, (202) 219-
3320.

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 the 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 adopt Revised Article 8, notice would be provided in 
the Federal Register as to whether the enactments are 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 notice 
addresses the recent adoption of Article 8 by South Dakota.

[[Page 20100]]

    Treasury has reviewed the South Dakota enactment and has concluded 
that it is substantially identical to the uniform version of Revised 
Article 8. Accordingly, if either Sec. 357.10(b) or Sec. 357.11(b) 
directs a person to South Dakota, the provisions of Secs. 357.10(c) and 
357.11(d) of the TRADES rule are not applicable.

    Dated: April 16, 1998.
Van Zeck,
Commissioner of the Public Debt.
[FR Doc. 98-10810 Filed 4-22-98; 8:45 am]
BILLING CODE 4810-39-P