General Regulations Governing U.S. Securities; Regulations Governing U.S. Savings Bonds, Series A, B, C, D, E, F, G, H, J, and K, and U.S. Savings Notes; Regulations Governing United States Savings Bonds, Series EE and HH; Regulations Governing Book-Entry Treasury Bonds, Notes and Bills (Department of the Treasury Circular, Public Debt Series No. 2-86); Regulations Governing Definitive United States Savings Bonds, Series I; Regulations Governing Securities Held in the New Treasury Direct System, 57428-57437 [05-19551]

Agencies

• Fiscal Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 70, Number 189 (Friday, September 30, 2005)]
[Rules and Regulations]
[Pages 57428-57437]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-19551]



[[Page 57427]]

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Part IV





Department of the Treasury





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Fiscal Service



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31 CFR Parts 306, 315, 353, et al.



General Regulations Governing U.S. Securities; Sale and Issuance of 
Marketable Book-Entry Treasury Bills, Notes, and Bonds; Final Rules

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / 
Rules and Regulations

[[Page 57428]]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Parts 306, 315, 353, 357, 360, and 363

[Docket No. BPD-33-05-01]


General Regulations Governing U.S. Securities; Regulations 
Governing U.S. Savings Bonds, Series A, B, C, D, E, F, G, H, J, and K, 
and U.S. Savings Notes; Regulations Governing United States Savings 
Bonds, Series EE and HH; Regulations Governing Book-Entry Treasury 
Bonds, Notes and Bills (Department of the Treasury Circular, Public 
Debt Series No. 2-86); Regulations Governing Definitive United States 
Savings Bonds, Series I; Regulations Governing Securities Held in the 
New Treasury Direct System

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

ACTION: Final rule.

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SUMMARY: New Treasury Direct is an account-based, book-entry, online 
system for purchasing, holding, and conducting transactions in Treasury 
securities. The system has been referred to as New Treasury Direct 
because there is an older system concurrently operating that is also 
named Treasury Direct, for marketable securities only, with different 
governing regulations. This rule renames the older version of Treasury 
Direct as Legacy Treasury Direct, and renames New Treasury Direct as, 
simply, TreasuryDirect (one word).
    In addition, this rule simplifies the regulatory structure for 
TreasuryDirect. Initially, we began the system with only one security. 
Since that time, we have added several securities to the system, each 
with its own governing subpart. Many of the rules in the subparts 
governing individual securities are repetitive. For instance, the 
provisions for decedents' estates differ only slightly in subpart C 
(savings bonds) from provisions in subpart D (certificates of 
indebtedness), and subpart E (converted savings bonds). Rather than 
repeat similar provisions for each security, this rule will integrate 
the similar provisions into one provision that will apply to all 
securities in the system. The integrated provisions will be contained 
in subpart B, which applies to all securities held within the system. 
Provisions that affect only one security will be contained within the 
subpart governing that security. In condensing and moving provisions, 
we are not making substantive changes.
    We are also amending provisions relating to Internal Revenue 
Service levies to provide that we will honor levies against the 
secondary owner of securities owned in the primary/secondary form of 
ownership if the levy is received at a date when the secondary owner 
has a right to redeem the security.

DATES: Effective: September 30, 2005.

ADDRESSES: You can download this final rule at the following Internet 
addresses: https://www.publicdebt.treas.gov or https://www.gpoaccess.gov/
ecfr.

FOR FURTHER INFORMATION CONTACT: Elisha Whipkey, Director, Division of 
Program Administration, Office of Securities Operations, Bureau of the 
Public Debt, at (304) 480-6319 or elisha.whipkey@bpd.treas.gov.
    Susan Klimas, Attorney-Adviser, Dean Adams, Assistant Chief 
Counsel, Edward Gronseth, Deputy Chief Counsel, Office of the Chief 
Counsel, Bureau of the Public Debt, at (304) 480-8692 or 
susan.klimas@bpd.treas.gov.

SUPPLEMENTARY INFORMATION: TreasuryDirect is an account-based, online, 
book-entry system for purchasing, holding, and conducting transactions 
in Treasury securities via the Internet. Currently, book-entry Series 
EE and Series I savings bonds and certificates of indebtedness are 
offered for purchase, and definitive savings bonds may be converted to 
book-entry savings bonds through TreasuryDirect.
    The TreasuryDirect regulations have been written in a modular 
manner. We have added subparts as we have added securities to the 
system. Each subpart has its own provisions as to judicial matters, 
forms of registration, decedents' estates, evidentiary requirements, 
and forfeiture procedures. This is because it was unclear when we began 
the system with savings bonds what securities would later be added, and 
whether these securities would have the same terms and conditions as 
the savings bonds already in the system. Now, it is clear that many of 
the administrative provisions for all securities will be similar. 
Therefore, we have removed some provisions from the subparts specific 
to the securities, and added consolidated provisions to the subpart 
that is common to all securities held in TreasuryDirect. This will 
better clarify the terms and conditions for forms of registration, 
decedents' estates, judicial proceedings, evidentiary requirements, and 
forfeiture procedures, and will tailor these provisions to the system's 
current and planned configuration. We originally placed these 
provisions, and others, into subpart C, which deals specifically with 
book-entry savings bonds, subpart D, which deals specifically with 
certificates of indebtedness, and subpart E, which deals with converted 
savings bonds. We are moving these provisions to subpart B, which is a 
subpart that is common to all securities held within the TreasuryDirect 
system. Generally, the substance of the moved provisions has not been 
changed, other than to make references to securities in general rather 
than to a specific security.
    We are amending the provisions regarding Internal Revenue Service 
levies to provide that we will honor levies against the secondary owner 
of securities owned in the primary/secondary form of ownership if the 
levy is received at a time when the secondary owner has a right to 
redeem the security. Previously, levies were honored only against 
``owners'' as defined in the TreasuryDirect governing regulations. 
Owners were defined as ``either a single owner, the first person named 
in the registration of a security held in the owner with beneficiary 
form of registration, the primary owner of a security held in the 
primary owner with secondary owner form of registration, or either 
coowner of a converted savings bond.'' IRS levies were not permitted 
against secondary owners because of the nature of the ownership 
interest. However, during periods when a secondary owner has been given 
the right to redeem, he or she has an interest sufficient for an IRS 
levy to attach.

Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866. Therefore, a 
regulatory assessment is not required.
    Because this final rule relates to matters of public contract and 
procedures for United States securities, notice and public procedure 
and delayed effective date requirements are inapplicable, pursuant to 5 
U.S.C. 553(a)(2).
    As no notice of proposed rulemaking is required, the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) does not apply.
    We ask for no new collections of information in this final rule. 
Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply.

List of Subjects

31 CFR Part 306

    Government securities.

31 CFR Part 315

    Bonds.

[[Page 57429]]

31 CFR Part 353

    Bonds.

31 CFR Part 357

    Banks, Banking, Bonds, Electronic funds transfers, Government 
securities, Reporting and recordkeeping requirements.

31 CFR Part 360

    Bonds.

31 CFR Part 363

    Bonds, Electronic funds transfer, Federal Reserve system, 
Government securities, Securities.


0
Accordingly, for the reasons set out in the preamble, 31 CFR chapter 
II, subchapter B, is amended as follows:

PART 306--GENERAL REGULATIONS GOVERNING U.S. SECURITIES

0
1. The authority citation of part 306 continues to read as follows:

    Authority: 31 U.S.C. Chapter 31; 5 U.S.C. 301; 12 U.S.C. 391.


0
2. Amend Sec.  306.2 by adding paragraph (u) to read as follows:


Sec.  306.2  Definitions of words and terms as used in these 
regulations.

* * * * *
    (u) Voluntary representative means the person qualified by the 
Department of the Treasury to request payment or make an assignment of 
a decedent's securities pursuant to Sec.  306.65.

0
3. Revise Sec.  306.65 to read as follows:


Sec.  306.65  Decedent's estate.

    (a) Estate is being administered. (1) A legal representative of a 
deceased owner's estate may request payment of matured securities to 
the estate, or may assign securities to or for the benefit of the 
persons entitled.
    (2) Appropriate proof of appointment for the legal representative 
of the estate is required. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment of matured securities, or may request assignment of 
unmatured securities. A certified copy of the court-approved final 
accounting for the estate, the court's decree of distribution, or other 
appropriate evidence is required.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the estate is to be appointed, the person 
appointed to receive or distribute the assets of a decedent's estate 
without regular administration under summary or small estates 
procedures under applicable local law may request payment of matured 
securities, or may request assignment of the securities. Appropriate 
evidence is required.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered. (1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
request payment of a decedent's matured securities or to make an 
assignment of a decedent's unmatured securities. The voluntary 
representative procedures are for the convenience of the Department; 
entitlement to the decedent's securities and held payments, if any, is 
determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. Voluntary representative procedures may 
be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less as of the date of death; and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Request payment of the decedent's matured securities on behalf 
of the persons entitled by the law of the jurisdiction in which the 
decedent was domiciled at the date of death;
    (ii) Assign the decedent's securities to the persons entitled by 
the law of the jurisdiction in which the decedent was domiciled at the 
date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen years of age or older may act as a voluntary representative 
according to the following order of precedence: a surviving spouse; if 
there is no surviving spouse, then a child of the decedent; if there 
are none of the above, then a descendant of a deceased child of the 
decedent; if there are none of the above, then a parent of the 
decedent; if there are none of the above, then a brother or sister of 
the decedent; if there are none of the above, then a descendant of a 
deceased brother or sister of the decedent; if there are none of the 
above, then a next of kin of the decedent, as determined by the law of 
the jurisdiction in which the decedent was domiciled at the date of 
death. As used in this order of precedence, child means a natural or 
adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or securities is to or on behalf of 
the persons entitled by the law of the jurisdiction in which the 
decedent was domiciled at the date of death. The United States is not 
liable to any person for the improper distribution of payments or 
securities. Upon payment or assignment of the securities at the request 
of the voluntary representative, the United States is released to the 
same extent as if it had paid or delivered to a representative of the 
estate appointed pursuant to the law of the jurisdiction in which the 
decedent was domiciled at the date of death. The voluntary 
representative shall indemnify and hold harmless the United States and 
all creditors and persons entitled to the estate of the decedent. The 
amount of the indemnification is limited to an amount no greater than 
the value received by the voluntary representative.
    (f) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for the amount of 
the debt, providing the debt has not been barred by applicable local 
law. The claim may only be satisfied by the proceeds of matured 
securities.


Sec. Sec.  306.66 and 306.67  [Removed and Reserved]

0
4. Remove and reserve Sec. Sec.  306.66 and 306.67.

[[Page 57430]]

PART 315--REGULATIONS GOVERNING U.S. SAVINGS BONDS, SERIES A, B, C, 
D, E, F, G, H, J, AND K, AND U.S. SAVINGS NOTES

0
5. The authority citation of part 315 continues to read as follows:

    Authority: 31 U.S.C. 3105 and 5 U.S.C. 301.

0
6. Amend Sec.  315.2 by adding paragraph (r) to read as follows:


Sec.  315.2  Definitions.

* * * * *
    (r) Voluntary representative means the person qualified by the 
Department of the Treasury to request payment or distribution of a 
decedent's savings bonds pursuant to Sec.  315.71.

0
7. Revise Sec.  315.71 to read as follows:


Sec.  315.71  Decedent's estate.

    (a) Estate is being administered. (1) A legal representative of a 
deceased owner's estate may request payment of savings bonds to the 
estate, or may distribute the savings bonds to the persons entitled.
    (2) Appropriate proof of appointment for the legal representative 
of the estate is required. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment or reissue of the savings bonds. A certified copy 
of the court-approved final accounting for the estate, the court's 
decree of distribution, or other appropriate evidence is required.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the estate is to be appointed, the person 
appointed to receive or distribute the assets of a decedent's estate 
without regular administration under summary or small estates 
procedures under applicable local law may request payment or reissue of 
savings bonds. Appropriate evidence is required.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered. (1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
redeem or to distribute a decedent's savings bonds. The voluntary 
representative procedures are for the convenience of the Department; 
entitlement to the decedent's savings bonds and held payments, if any, 
is determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. Voluntary representative procedures may 
be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less as of the date of death; and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Redeem the decedent's savings bonds on behalf of the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death;
    (ii) Distribute the decedent's savings bonds to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen years of age or older may act as a voluntary representative 
according to the following order of precedence: A surviving spouse; if 
there is no surviving spouse, then a child of the decedent; if there 
are none of the above, then a descendant of a deceased child of the 
decedent; if there are none of the above, then a parent of the 
decedent; if there are none of the above, then a brother or sister of 
the decedent; if there are none of the above, then a descendant of a 
deceased brother or sister of the decedent; if there are none of the 
above, then a next of kin of the decedent, as determined by the law of 
the jurisdiction in which the decedent was domiciled at the date of 
death. As used in this order of precedence, child means a natural or 
adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or savings bonds is to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The United States is not liable to any 
person for the improper distribution of payments or savings bonds. Upon 
payment or distribution of the savings bonds at the request of the 
voluntary representative, the United States is released to the same 
extent as if it had paid or delivered to a representative of the estate 
appointed pursuant to the law of the jurisdiction in which the decedent 
was domiciled at the date of death. The voluntary representative shall 
indemnify and hold harmless the United States and all creditors and 
persons entitled to the estate of the decedent. The amount of the 
indemnification is limited to an amount no greater than the value 
received by the voluntary representative.
    (f) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for payment for 
the amount of the debt, providing the debt has not been barred by 
applicable local law.

PART 353--REGULATIONS GOVERNING UNITED STATES SAVINGS BONDS, SERIES 
EE AND HH

0
8. The authority citation of part 353 continues to read as follows:

    Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105, 3125.


0
9. Amend Sec.  353.2 by adding paragraph (n) to read as follows:


Sec.  353.2  Definitions.

* * * * *
    (n) Voluntary representative means the person qualified by the 
Department of the Treasury to request payment or distribution of a 
decedent's savings bonds pursuant to Sec.  353.71.

0
10. Revise Sec.  353.71 to read as follows:


Sec.  353.71  Decedent's estate.

    (a) Estate is being administered. (1) A legal representative of a 
deceased owner's estate may request payment of savings bonds to the 
estate, or may distribute the savings bonds to the persons entitled.
    (2) Appropriate proof of appointment for the legal representative 
of the estate is required. Letters of appointment must be dated not 
more than one year prior

[[Page 57431]]

to the date of submission of the letters of appointment.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment or reissue of savings bonds. A certified copy of 
the court-approved final accounting for the estate, the court's decree 
of distribution, or other appropriate evidence is required.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the estate is to be appointed, the person 
appointed to receive or distribute the assets of a decedent's estate 
without regular administration under applicable local law summary or 
small estates procedures may request payment or reissue of savings 
bonds. Appropriate evidence is required.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered. (1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
redeem or distribute a decedent's savings bonds. The voluntary 
representative procedures are for the convenience of the Department; 
entitlement to the decedent's savings bonds and held payments, if any, 
is determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. Voluntary representative procedures may 
be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less as of the date of death; and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Redeem the decedent's savings bonds that are eligible for 
redemption on behalf of the persons entitled by the law of the 
jurisdiction in which the decedent was domiciled at the date of death;
    (ii) Distribute the decedent's savings bonds to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen years of age or older may act as a voluntary representative 
according to the following order of precedence: A surviving spouse; if 
there is no surviving spouse, then a child of the decedent; if there 
are none of the above, then a descendant of a deceased child of the 
decedent; if there are none of the above, then a parent of the 
decedent; if there are none of the above, then a brother or sister of 
the decedent; if there are none of the above, then a descendant of a 
deceased brother or sister of the decedent; if there are none of the 
above, then a next of kin of the decedent, as determined by the law of 
the jurisdiction in which the decedent was domiciled at the date of 
death. As used in this order of precedence, child means a natural or 
adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or savings bonds is to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The United States is not liable to any 
person for the improper distribution of payments or securities. Upon 
payment or transfer of the securities at the request of the voluntary 
representative, the United States is released to the same extent as if 
it had paid or delivered to a representative of the estate appointed 
pursuant to the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The voluntary representative shall 
indemnify and hold harmless the United States and all creditors and 
persons entitled to the estate of the decedent. The amount of the 
indemnification is limited to an amount no greater than the value 
received by the voluntary representative.
    (f) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for the amount of 
the debt, providing the debt has not been barred by applicable local 
law.

PART 357--REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES 
AND BILLS HELD IN LEGACY TREASURY DIRECT

0
11. The authority citation for part 357 continues to read as follows:

    Authority: 31 U.S.C. chapter 31; 5 U.S.C. 301; 12 U.S.C. 391.


0
12. Revise the heading for part 357 to read as set forth above.

0
13. In part 357, the phrases ``TREASURY DIRECT,'' ``Treasury Direct,'' 
and ``TreasuryDirect'' are revised to read ``Legacy Treasury Direct'' 
wherever they appear.

0
14. Amend Sec.  357.0 by revising paragraph (c) to read as follows:


Sec.  357.0  Book-entry systems.

* * * * *
    (c) TreasuryDirect system. TreasuryDirect is an Internet-based 
book-entry system maintained by the Department of the Treasury. The 
regulations governing TreasuryDirect are found at part 363 of this 
chapter. Legacy Treasury Direct is a separate, non-Internet-based book-
entry system for marketable Treasury securities only.

0
15. Amend Sec.  357.2 by adding the definition of ``Voluntary 
representative'' in alphabetical order, to read as follows:


Sec.  357.2  Definitions.

* * * * *
    Voluntary representative means the person qualified by the 
Department of the Treasury to accept payment or direct distribution of 
a decedent's securities pursuant to Sec.  357.28.

0
16. Amend Sec.  357.28 by revising paragraph (c) to read as follows:


Sec.  357.28  Transaction requests.

* * * * *
    (c) Representatives.
    (1) General. Any representative of an owner's estate, other than a 
trustee, may execute a transaction request form if the representative 
submits to the Department properly authenticated evidence of the 
authority to act. The evidence will not be accepted if dated more than 
one year prior to the date of submission of the transaction request.
    (2) Decedent's estate has been settled previously. If a decedent's 
estate has been settled previously through judicial proceedings, the 
persons entitled may

[[Page 57432]]

make a transaction request. A certified copy of the court-approved 
final accounting for the estate, the court's decree of distribution, or 
other appropriate evidence will be required.
    (3) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the decedent's estate is to be appointed, the 
person appointed to receive or distribute the assets of a decedent's 
estate without regular administration under applicable local law 
summary or small estates procedures may make a transaction request. 
Appropriate evidence will be required.
    (4) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (5) Voluntary representative for small estates of decedents that 
are not being otherwise administered. (i) General. A voluntary 
representative is a person qualified according to paragraph (c)(5)(iii) 
of this section, to make a transaction request. The voluntary 
representative procedures are for the convenience of the Department; 
entitlement to the decedent's securities and held payments, if any, is 
determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. Voluntary representative procedures may 
be used only if:
    (A) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (B) The total redemption value of the Treasury securities and held 
payments, if any, that are the property of the decedent's estate is 
$100,000 or less as of the date of death; and
    (C) There is a person eligible to serve as the voluntary 
representative according to paragraph (c)(5)(iii) of this section.
    (ii) Authority of voluntary representative. A voluntary 
representative may make a transaction request to distribute the 
securities to or for the benefit of the persons entitled by laws of the 
jurisdiction in which the decedent was domiciled at the date of death.
    (iii) Order of precedence for voluntary representative. An 
individual eighteen years of age or older may act as a voluntary 
representative according to the following order of precedence: A 
surviving spouse; if there is no surviving spouse, then a child of the 
decedent; if there are none of the above, then a descendant of a 
deceased child of the decedent; if there are none of the above, then a 
parent of the decedent; if there are none of the above, then a brother 
or sister of the decedent; if there are none of the above, then a 
descendant of a deceased brother or sister of the decedent; if there 
are none of the above, then a next of kin of the decedent, as 
determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. As used in this order of precedence, 
child means a natural or adopted child of the decedent.
    (iv) Liability. By serving, the voluntary representative warrants 
that the distribution of securities or proceeds is to or on behalf of 
the persons entitled by the law of the jurisdiction in which the 
decedent was domiciled at the date of death. The United States is not 
liable to any person for the improper distribution of securities or 
proceeds. Upon distribution of the securities or proceeds at the 
request of the voluntary representative, the United States is released 
to the same extent as if it had paid or delivered to a representative 
of the estate appointed pursuant to the law of the jurisdiction in 
which the decedent was domiciled at the date of death. The voluntary 
representative shall indemnify and hold harmless the United States and 
all creditors and persons entitled to the estate of the decedent. The 
amount of the indemnification is limited to an amount no greater than 
the value received by the voluntary representative.
    (v) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for payment of 
the amount of the debt, providing the debt has not been barred by 
applicable local law.
* * * * *

PART 360--REGULATIONS GOVERNING DEFINITIVE UNITED STATES SAVINGS 
BONDS, SERIES I

0
17. The authority citation for part 360 continues to read as follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 3105 and 3125.


0
18. Amend Sec.  360.2 by adding paragraph (n) to read as follows:


Sec.  360.2  Definitions.

* * * * *
    (n) Voluntary representative means the person qualified by the 
Department of the Treasury to request payment or distribution of a 
decedent's savings bonds pursuant to Sec.  360.71.

0
19. Amend Sec.  360.70 by revising the second sentence of the 
introductory paragraph, to read as follows:


Sec.  360.70  General rules governing entitlement.

    * * * Appropriate proof of death will be required.
* * * * *

0
20. Revise Sec.  360.71 to read as follows:


Sec.  360.71  Decedent's estate.

    (a) Estate is being administered. (1) A legal representative of a 
deceased owner's estate may request payment of savings bonds to the 
estate, or may distribute the savings bonds to the persons entitled.
    (2) Appropriate proof of appointment for the legal representative 
of the estate is required. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment or reissue of the savings bonds. A certified copy 
of the court-approved final accounting for the estate, the court's 
decree of distribution, or other appropriate evidence is required.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the estate is to be appointed, the person 
appointed to receive or distribute the assets of a decedent's estate 
without regular administration under applicable local law summary or 
small estates procedures may request payment or reissue of savings 
bonds. Appropriate evidence is required.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the

[[Page 57433]]

value of securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered. (1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
request payment or distribution of a decedent's savings bonds. The 
voluntary representative procedures are for the convenience of the 
Department; entitlement to the decedent's savings bonds and held 
payments, if any, is determined by the law of the jurisdiction in which 
the decedent was domiciled at the date of death. Voluntary 
representative procedures may be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less as of the date of death; and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Redeem the decedent's savings bonds that are eligible for 
redemption on behalf of the persons entitled by the law of the 
jurisdiction in which the decedent was domiciled at the date of death;
    (ii) Distribute the decedent's savings bonds to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen years of age or older may act as a voluntary representative 
according to the following order of precedence: A surviving spouse; if 
there is no surviving spouse, then a child of the decedent; if there 
are none of the above, then a descendant of a deceased child of the 
decedent; if there are none of the above, then a parent of the 
decedent; if there are none of the above, then a brother or sister of 
the decedent; if there are none of the above, then a descendant of a 
deceased brother or sister of the decedent; if there are none of the 
above, then a next of kin of the decedent, as determined by the law of 
the jurisdiction in which the decedent was domiciled at the date of 
death. As used in this order of precedence, child means a natural or 
adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or savings bonds is to the persons 
entitled by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The United States is not liable to any 
person for the improper distribution of payments or securities. Upon 
payment or distribution of the securities at the request of the 
voluntary representative, the United States is released to the same 
extent as if it had paid or delivered to a representative of the estate 
appointed pursuant to the law of the jurisdiction in which the decedent 
was domiciled at the date of death. The voluntary representative shall 
indemnify and hold harmless the United States and all creditors and 
persons entitled to the estate of the decedent. The amount of the 
indemnification is limited to an amount no greater than the value 
received by the voluntary representative.
    (f) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for payment of 
the amount of the debt, providing the debt has not been barred by 
applicable local law.

PART 363--REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT

0
21. The authority citation for part 363 continues to read as follows:

    Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3102, et seq.; 
31 U.S.C. 3121, et seq.


0
22. Revise the heading for part 363 to read as set forth above.

0
23-24. In part 363, revise all references to ``New Treasury Direct'' to 
read ``TreasuryDirect'' wherever they appear.

0
25. Amend Sec.  363.6 by:
0
a. Removing all references to ``Sec.  363.15'' and adding in their 
places the reference ``Sec.  363.10'';
0
b. Adding the definition of ``Voluntary representative'' in 
alphabetical order;
0
c. Revising the definition of ``Final maturity of a savings bond;''
0
d. Revising the definition of ``Minor linked account,'' and
0
e. Revising footnote 1 to read as follows:


Sec.  363.6  What special terms do I need to know to understand this 
part?

* * * * *
    Final maturity of a savings bond means the date beyond which an 
unredeemed savings bond no longer earns interest.\1\
* * * * *
    Minor account means an account that a custodian controls on behalf 
of a minor, that is linked to the custodian's primary account. (See 
Sec. Sec.  363.10 and 363.27 for more information about minor 
accounts.)
* * * * *
    Voluntary representative means the person qualified by the 
Department of the Treasury to accept payment or direct distribution of 
a decedent's securities pursuant to Sec.  363.44.
* * * * *
    \1\ Series EE and Series I savings bonds currently have an original 
maturity period of 20 years and an extended maturity period of 10 years 
beyond original maturity during which the bonds continue to earn 
interest.

0
26. Revise the heading for Subpart B to read as follows:

Subpart B--General Provisions Governing Securities Held in 
TreasuryDirect

0
26a. Transfer Sec. Sec.  363.9 through 363.14 to subpart B.

0
27. Add Sec.  363.9 to read as follows:


Sec.  363.9  What does this subpart cover?

    This subpart provides general rules governing securities held 
within the TreasuryDirect system. Provisions in the subparts governing 
specific securities that conflict with these general rules will 
supersede these general rules.

0
28. Redesignate Sec. Sec.  363.15 and 363.16 as Sec. Sec.  363.10 and 
363.11, respectively.

0
29. Add Sec.  363.12 to read as follows:


Sec.  363.12  Who may purchase and hold book-entry securities in 
TreasuryDirect?

    (a) A TreasuryDirect account owner may purchase and hold securities 
through his or her account.
    (b) We do not permit a legally incompetent person to open an 
account, purchase securities, or convert savings bonds once we have 
been provided with an order from a court with appropriate jurisdiction 
determining incompetence to perform such activities.
    (c) We do not permit a legal representative, a legal guardian, or a 
voluntary representative to purchase securities on behalf of the estate 
of a decedent or an incompetent person.
    (d) We may reject any application for the purchase of a security, 
in whole or

[[Page 57434]]

in part. We may refuse to issue a security in any case or class of 
cases, if we deem the action to be in the public interest. Our decision 
in any such respect is final.

0
30. Redesignate Sec. Sec.  363.17 through 363.23 as Sec. Sec.  363.13 
through 363.19, respectively.

0
31. Add new Sec.  363.20 to read as follows:


Sec.  363.20  What do I need to know about the forms of registration 
that are available for purchases of securities through my 
TreasuryDirect account?

    (a) General principles. (1) Registration must express the actual 
ownership of, and interest in, the security. Registration conclusively 
establishes ownership of a security.
    (2) You must provide a last name and a first name for each 
individual included in the registration of the security.
    (3) You must provide the valid taxpayer identification number for 
each person named in the registration of the security.
    (b) Forms of registration. The forms of registration available for 
purchases of securities made through your TreasuryDirect account are 
single owner, owner with beneficiary, and primary owner with secondary 
owner, unless the forms of registration available for a security are 
specifically limited by the subpart governing that security.
    (c) Single owner. (1) A single owner is the individual named in the 
registration of a book-entry security or a converted savings bond 
without a beneficiary, secondary owner, or coowner.
    (2) A single owner may add a beneficiary or secondary owner.
    (3) A single owner may conduct permitted online transactions on 
securities held in his or her account.
    (4) Upon the death of the single owner, his or her estate is 
entitled to the security. In determining entitlement, the law of the 
decedent's domicile will be followed.
    (5) Registration example: ``John Doe, SSN 123-45-6789.''
    (d) Owner with beneficiary. (1) The purchaser must be named as the 
owner with another individual as beneficiary.
    (2) The owner may remove or change the beneficiary without the 
consent of the beneficiary.
    (3) The owner may conduct permitted online transactions on 
securities held in his or her account without the consent of the 
beneficiary.
    (4) The beneficiary has no ownership rights to the security during 
the owner's lifetime. Upon the death of the owner, the security becomes 
the property of the surviving beneficiary, despite any attempted 
testamentary disposition or any applicable local law to the contrary.
    (5) If the beneficiary does not survive the owner, the security 
belongs to the estate of the owner.
    (6) If both the owner and the beneficiary die under conditions 
where it cannot be established, either by presumption of law or 
otherwise, who died first, the security is the property of the estate 
of the owner.
    (7) In order for the beneficiary to obtain the security or the 
redemption proceeds after the death of the owner, the beneficiary must 
provide proof of death of the owner. If the beneficiary has a 
TreasuryDirect account, the security will be transferred to that 
account. If the beneficiary does not have an account, he or she may 
establish an account. Alternatively, a beneficiary named on a savings 
bond may request redemption. If the beneficiary requests redemption, he 
or she must provide ACH instructions for the payment.
    (8) Registration example: ``John Doe, SSN 123-45-6789 POD (payable 
on death to) Jane Doe, SSN 987-65-4321.''
    (e) Primary owner with secondary owner. (1) The purchaser must be 
named in the registration as the primary owner with another individual 
as secondary owner.
    (2) The primary owner holds the securities in his or her account 
and may view or conduct permitted online transactions in the 
securities.
    (3) The primary owner may remove the secondary owner without the 
consent of the secondary owner.
    (4) The secondary owner has no rights to view or conduct 
transactions in any security unless the primary owner gives the 
secondary owner these rights.
    (5) The primary owner may give the secondary owner the right to 
view any security or rights to view and conduct transactions in any 
security online from the account of the secondary owner.
    (6) Once the right to conduct transactions in a security has been 
given to the secondary owner, the primary owner may view and conduct 
transactions in the security from his or her account, and the secondary 
owner may view and conduct transactions in the security using his or 
her own account.
    (7) The primary owner may revoke any rights previously given to the 
secondary owner at any time.
    (8) Upon the death of either the primary or secondary owner, the 
security becomes the property of the survivor, despite any attempted 
testamentary disposition or any applicable local law to the contrary.
    (9) If both the primary and the secondary owner die under 
conditions where it cannot be established, either by presumption of law 
or otherwise, who died first, the security is the property of the 
estate of the primary owner.
    (10) In order for the secondary owner to obtain the security or the 
security proceeds after the death of the primary owner, the secondary 
owner must provide proof of death of the primary owner. If the 
secondary owner has a TreasuryDirect account, the security will be 
transferred to that account. If the secondary owner does not have an 
account, he or she may establish an account. Alternatively, a secondary 
owner named on a savings bond may request redemption. If the secondary 
owner requests redemption, he or she must provide ACH instructions.
    (11) Registration example: ``John Doe, SSN 123-45-6789 with Joseph 
Doe, SSN 987-65-4321.''

0
32. Redesignate Sec. Sec.  363.24 as Sec.  363.21.

0
33. Add new Sec.  363.22 to read as follows:


Sec.  363.22  Who has the right to conduct online transactions in book-
entry securities?

    (a) Single owner form of registration. A single owner can conduct 
transactions in securities held in his or her TreasuryDirect account.
    (b) Owner with beneficiary form of registration. The owner can 
conduct transactions in securities held in his or her TreasuryDirect 
account. The beneficiary has no rights during the lifetime of the owner 
and therefore cannot conduct transactions in the securities.
    (c) Primary owner with secondary owner form of registration. The 
primary owner can conduct transactions in securities held in his or her 
TreasuryDirect account. The secondary owner can redeem savings bonds 
using his or her TreasuryDirect account providing the secondary owner 
has the right to redeem at the time of the transaction.
    (d) Converted savings bonds. The rules for transactions governing 
converted savings bonds are contained in subpart E of this part.


Sec. Sec.  363.23 and 363.24  [Reserved]

0
34. Add and reserve new Sec. Sec.  363.23 and 363.24.

0
35. Add Sec. Sec.  363.28 and 363.29 to read as follows:


Sec.  363.28  Does Public Debt reserve the right to require that any 
TreasuryDirect transaction be conducted in paper form?

    We reserve the right to require any transaction to be conducted in 
paper

[[Page 57435]]

form. Signatures on paper transactions must be certified or guaranteed 
as provided in Sec.  363.43.


Sec.  363.29  May Treasury close an account, suspend transactions in an 
account, or refuse to open an account?

    We reserve the right to take any of the following actions if, in 
our sole discretion, we deem the action to be in the best interests of 
the United States:
    (a) Refuse to open an account for any person;
    (b) Close any existing account;
    (c) Suspend transactions with respect to an account or any security 
held in an account; or
    (d) Take any other action with regard to any account that we deem 
necessary, if not inconsistent with existing law and existing rights.

0
36. Amend Sec.  363.42 by removing the words ``Series I'' from the 
section.
0
37. Amend Sec.  363.43 by revising paragraph (a)(4)(i) to read as 
follows:


Sec.  363.43  What are the procedures for certifying my signature on an 
offline application for a TreasuryDirect account, or on an offline 
transaction form?

    (a) * * * * *
    (4) * * * * *
    (i) We require a statement that the person executing the assignment 
is one whose signature the officer is authorized to certify under our 
regulations.
* * * * *

0
38. Add Sec. Sec.  363.44, 363.45, and 363.46 to read as follows:


Sec.  363.44  What happens when a TreasuryDirect account owner dies and 
the estate is entitled to securities held in the account?

    (a) Estate is being administered. (1) A legal representative of a 
deceased owner's estate may request payment of securities, if the 
securities are eligible for payment, to the estate or to the persons 
entitled, or may request transfer of the securities to the 
TreasuryDirect account of the persons entitled, if the securities are 
eligible for transfer.
    (2) We will require appropriate proof of appointment for the legal 
representative of the estate. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
    (3) The legal representative of the estate may not purchase 
securities on behalf of the estate.
    (4) If payment is requested, we will require ACH instructions to 
process the request.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment of securities, if the securities are eligible for 
redemption, or may transfer the securities to the TreasuryDirect 
accounts of the persons entitled, if the securities are eligible for 
transfer. We will require a certified copy of the court-approved final 
accounting for the estate, the court's decree of distribution, or other 
appropriate evidence. If payment is requested, we will require ACH 
instructions to process the request.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration 
and no representative of the estate is to be appointed, the person 
appointed to receive or distribute the assets of a decedent's estate 
without regular administration under summary or small estates 
procedures under applicable local law may request payment of 
securities, if the securities are eligible for redemption, or may 
transfer the securities to or on behalf of the persons entitled by the 
law of the jurisdiction in which the decedent was domiciled at the date 
of death, if the securities are eligible for transfer. We will require 
appropriate evidence. If payment is requested, we will require ACH 
instructions to process the request.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered. (1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
redeem or transfer a decedent's securities. The voluntary 
representative procedures are for the convenience of the Department; 
entitlement to the decedent's securities and held payments, if any, is 
determined by the law of the jurisdiction in which the decedent was 
domiciled at the date of death. Voluntary representative procedures may 
be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under 
applicable local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less, as of the date of death, and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Redeem the decedent's savings bonds that are eligible for 
redemption. Payment may be made to the voluntary representative on 
behalf of or directly to the persons entitled by the law of the 
jurisdiction in which the decedent was domiciled at the date of death;
    (ii) Transfer the decedent's securities to the persons entitled by 
the law of the jurisdiction in which the decedent was domiciled at the 
date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen years of age or older may act as a voluntary representative 
according to the following order of precedence: a surviving spouse; if 
there is no surviving spouse, then a child of the decedent; if there 
are none of the above, then a descendant of a deceased child of the 
decedent; if there are none of the above, then a parent of the 
decedent; if there are none of the above, then a brother or sister of 
the decedent; if there are none of the above, then a descendant of a 
deceased brother or sister of the decedent; if there are none of the 
above, then a next of kin of the decedent, as determined by the laws of 
the decedent's domicile at the date of death. As used in this order of 
precedence, child means a natural or adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or securities are to or on behalf of 
the persons entitled by the law of the jurisdiction in which the 
decedent was domiciled at the date of death. The United States is not 
liable to any person for the improper distribution of payments or 
securities. Upon payment or transfer of the securities to the voluntary 
representative, the United States is released to the same extent as if 
it had paid or delivered to a representative of the estate appointed 
pursuant to the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The voluntary representative shall 
indemnify and hold harmless the United States and all creditors and 
persons entitled to the estate of the decedent. The amount of the 
indemnification is limited to an amount

[[Page 57436]]

no greater than the value received by the voluntary representative.
    (5) Creditor. If there has been no administration, no 
administration is contemplated, no summary or small estate procedures 
under applicable local law have been used, and there is no person 
eligible to serve as a voluntary representative pursuant to paragraph 
(e) of this section, then a creditor may make a claim for payment of 
the amount of the debt, providing the debt has not been barred by 
applicable local law.


Sec.  363.45  What are the rules for judicial and administrative 
actions involving securities held in TreasuryDirect?

    (a) Notice of adverse claim or pending judicial proceedings. We are 
not subject to and will not accept a notice of an adverse claim or 
notice of pending judicial proceedings involving a security held in 
TreasuryDirect.
    (b) Competing claims to a security. The Department of the Treasury, 
Public Debt, and the Federal Reserve Banks are not proper defendants in 
a judicial proceeding involving competing claims to a security held in 
TreasuryDirect.
    (c) Divorce decree. We will recognize a divorce decree that either 
disposes of a security held in TreasuryDirect or ratifies a property 
settlement agreement disposing of a security that is the property of 
either of the parties. If the divorce decree does not set out the terms 
of the property settlement agreement, we will require a certified copy 
of the agreement.
    (d) Final court order. We will recognize a final order entered by a 
court that affects ownership rights in a security held in 
TreasuryDirect only to the extent that the order is consistent with the 
provisions of this part. The owner of the security must be a party to 
the proceedings.
    (e) Levy to satisfy money judgment. We will honor a transaction 
request submitted by a person appointed by a court and having authority 
under an order of a court to dispose of a security held in 
TreasuryDirect pursuant to a money judgment against the owner of the 
security, as owner is defined in section 363.6 of this part. In the 
case of savings bonds, we will only make payment pursuant to the court 
order to the extent of the money judgment. We will not transfer the 
savings bonds.
    (f) IRS levy. We will honor an IRS notice of levy under section 
6331 of the Internal Revenue Code with respect to:
    (1) The owner, as owner is defined in section 363.6 of this part; 
and
    (2) A secondary owner, if the secondary owner has the right to 
conduct transactions in a security at the date and time the notice of 
levy is delivered to Public Debt.
    (g) Trustee in bankruptcy, a receiver of an insolvent's estate, a 
receiver in equity, or a similar court officer. We will honor a 
transaction request submitted by a trustee in bankruptcy, a receiver of 
an insolvent's estate, a receiver in equity, or a similar court 
officer, if the original court order is against the owner, as owner is 
defined in Sec.  363.6 of this part. In the case of savings bonds, we 
will only make payment. We will not transfer the savings bonds.
    (h) Court order that attempts to defeat or impair survivorship 
rights. We will not recognize a court order that attempts to defeat or 
impair the survivorship rights of a beneficiary, secondary owner, 
coowner of a converted savings bond, or the registered owner of an 
undelivered gift security held in TreasuryDirect.


Sec.  363.46  What evidence is required to establish the validity of 
judicial proceedings?

    (a) We will require certified copies of the final judgment, decree, 
or court order, and any necessary supplementary proceedings.
    (b) A transaction request by a trustee in bankruptcy or a receiver 
of an insolvent's estate must be supported by evidence of appointment 
and qualification.
    (c) A transaction request by a receiver in equity or a similar 
court officer (other than a receiver of an insolvent's estate) must be 
supported by a copy of an order that authorizes the receiver or similar 
court officer to take possession and control of the security.

0
39. Add Sec. Sec.  363.47 to read as follows:


Sec.  363.47  Will Public Debt pay Treasury securities pursuant to a 
forfeiture proceeding?

    (a) General. We will honor a judicial or administrative forfeiture 
order or declaration of forfeiture submitted by a federal agency. We 
will rely exclusively upon the information provided by the Federal 
forfeiting agency and will not make any independent evaluation of the 
validity of the forfeiture order, the request for payment, or the 
authority of the individual signing the transaction request. The amount 
to be paid or transferred is limited to the value of the security as of 
the date of forfeiture.
    (b) Definition of special terms relating to forfeitures.
    Contact point means the individual designated by the Federal 
investigative agency, United States Attorney's Office, or forfeiting 
agency, to receive referrals from Public Debt.
    Forfeiting agency means the federal law enforcement agency 
responsible for the forfeiture.
    Forfeiture means the process by which property may be forfeited by 
a federal agency. Administrative forfeiture is forfeiture by a federal 
agency without judicial proceedings resulting in a declaration of 
forfeiture; judicial forfeiture is a forfeiture through either a civil 
or criminal proceeding in a United States District Court resulting in a 
final judgment and order of forfeiture.
    (c) Procedures for a forfeiting agency to request forfeiture of 
Treasury securities. A forfeiting agency must request forfeiture. An 
individual authorized by the forfeiting agency must sign the 
transaction request. The request must be mailed to the Department of 
the Treasury, Bureau of the Public Debt, Parkersburg, WV 26106-7015.
    (d) Public Debt procedures upon receipt of forfeiture request. Upon 
receipt and review of the transaction request, we will make payment to 
the forfeiture fund specified, if the security is eligible for payment, 
or we will transfer the security pursuant to the transaction request. 
We will record the forfeiture, the forfeiture fund into which the 
proceeds were paid or the security transfer records, the contact point, 
and any related information.
    (e) Inquiries from previous owner. All inquiries or claims from the 
previous owner will be referred to the contact point of the forfeiting 
agency. We will tell the person who inquired that we referred his or 
her inquiry to the contact point. We will not investigate the inquiry. 
We will defer to the forfeiting agency's determination of the 
appropriate course of action, including settlement where appropriate. 
Any settlement will be paid from the forfeiture fund into which the 
proceeds were deposited.


Sec.  363.51  [Removed and reserved]

0
40. Remove and reserve Sec.  363.51.

0
41. Amend Sec.  363.54 by revising the heading to read as follows:


Sec