Regulations Governing Securities Held in TreasuryDirect, 19416-19421 [E9-9630]
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19416
Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Rules and Regulations
(20) Proceed generally northwest and
northeast along the east shoreline of
Lake Chelan to the point of beginning.
Signed: February 24, 2009.
John J. Manfreda,
Administrator.
Approved: March 26, 2009.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and
Tariff Policy.
[FR Doc. E9–9847 Filed 4–28–09; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Regulations Governing Securities Held
in TreasuryDirect
AGENCY: Bureau of the Public Debt,
Fiscal Service, Treasury.
ACTION: Final rule.
SUMMARY: TreasuryDirect is an accountbased, book-entry, online system for
purchasing, holding, and conducting
transactions in Treasury securities. To
date, TreasuryDirect has only been
available for individual account owners.
This final rule will permit certain
specified entities to open accounts in
TreasuryDirect.
Effective date: April 24, 2009.
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 Retail
Securities, Bureau of the Public Debt, at
(304) 480–6319 or
elisha.whipkey@bpd.treas.gov.
Susan Sharp, Attorney-Adviser,
Elizabeth Spears, Senior Attorney,
Edward Gronseth, Deputy Chief
Counsel, Office of the Chief Counsel,
Bureau of the Public Debt, at (304) 480–
8692 or susan.sharp@bpd.treas.gov.
SUPPLEMENTARY INFORMATION:
TreasuryDirect is an online accountbased system for individuals to
purchase, hold, and conduct
transactions in eligible Treasury
securities. To date, only individuals
have been permitted to open a
TreasuryDirect account. This final rule
will permit certain specified entities to
open accounts in TreasuryDirect and
conduct transactions in eligible
Treasury securities. A sole
proprietorship, partnership,
corporation, limited liability company
DATES:
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ADDRESSES:
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or professional limited liability
company, trust, decedent’s estate, estate
of an incompetent individual, and estate
of a minor will be able to open a
TreasuryDirect account. Treasury
believes that these forms of registrations
will serve most organizations and
fiduciaries wishing to open a
TreasuryDirect account. If, in the future,
there is a demonstrated need for other
forms of entity registrations, Treasury
will consider adding additional
registrations.
The account must be opened and
managed by an individual known as an
entity account manager who is
authorized to act alone on behalf of the
entity with regard to this account. Only
an individual is permitted to act as an
entity account manager. Initially, the
entity account manager will be the
individual who opens the
TreasuryDirect account. If the entity
subsequently wishes to change the
individual who acts as its entity account
manager, the entity account manager
may be changed using procedures
available on the TreasuryDirect Web
site. Only one individual may act as
entity account manager at any one time.
The identity of the entity account
manager will be verified using an online
verification service; the identity of the
entity may be verified using appropriate
evidence. The entity account manager
must certify online that he or she has
the authority to act alone on behalf of
the entity.
An entity will not be permitted to
open a minor linked account. An entity
cannot purchase gift savings bonds, and
a gift bond cannot be delivered to an
entity. However, an entity may transfer
an existing bond, which is already
registered in the entity’s name, to
another account (primary or linked)
owned by either an individual or an
entity. An entity may convert a
definitive savings bond to book-entry
form if the bond is registered in the
name of the entity.
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.
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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 in 31 CFR Part 363
Bonds, Electronic funds transfer,
Federal Reserve system, Government
securities, Securities.
■ Accordingly, for the reasons set out in
the preamble, 31 CFR Chapter II,
Subchapter B, is amended as follows:
PART 363—REGULATIONS
GOVERNING SECURITIES HELD IN
TREASURYDIRECT
1. 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.
2. Amend § 363.5 by revising
paragraph (c) to read as follows:
■
§ 363.5
How do I contact Public Debt?
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(c) Letters should be addressed to the
address provided on our web site at
https://www.treasurydirect.gov/
write.htm.
■ 3. Amend § 363.6 by:
■ a. Adding the definitions of ‘‘Entity,’’
‘‘Entity account manager,’’ and
‘‘Incompetent individual or
Incompentent person’’ in alphabetical
order;
■ b. Revising the definitions of
‘‘Individual,’’ ‘‘Owner,’’ ‘‘Person,’’ and
‘‘Verification’’ to read as follows:
§ 363.6 What special terms do I need to
know to understand this part?
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Entity means any owner of a
TreasuryDirect account that is not an
individual. Entity is a sole
proprietorship, partnership,
corporation, limited liability company
or professional limited liability
company, trust, the estate of a decedent,
or the estate of a living person such as
an incompetent or a minor.
Entity account manager is the
individual who initially opens the
TreasuryDirect account for an entity, or
his or her replacement; who is
authorized by the entity to act alone on
its behalf to open, access, and conduct
transactions with respect to the account;
and who certifies that he or she is so
authorized.
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Incompetent individual or
incompetent person means an
individual who has been declared by a
court to be legally incompetent,
incapacitated, or otherwise unable to
manage his or her financial affairs.
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Individual means a natural person.
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Owner, when referring to an
individual, is either the single
individual named in the registration of
a security held in the single owner form
of registration, the first individual
named on a security held in the owner
with beneficiary form of registration, the
first individual named on a security
held in the primary owner with
secondary owner form of registration, or
either individual named on a converted
savings bond held in the coowner form
of registration; when referring to an
entity, the owner is the entity.
Person means an individual or an
entity.
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Verification means confirming the
identity of an online applicant for a
TreasuryDirect account at account
establishment using an online
verification service or offline
verification.
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■ 4. Amend § 363.10 by:
■ a. Revising paragraph (a),
■ b. Revising the fifth and sixth
sentences of and adding a seventh
sentence to paragraph (b)(1), and
■ c. Revising the first sentence of and
adding a new second sentence to
paragraph (b)(2), to read as follows:
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§ 363.10 What is a TreasuryDirect®
account?
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(a) Primary Account. The primary
account is the account that you establish
when initially opening your
TreasuryDirect account. The primary
account may contain the following
Treasury securities:
(1) Individual. A primary account for
an individual may contain Treasury
securities purchased initially as bookentry securities that are your personal
holdings registered in single owner,
owner with beneficiary, and primary
owner with secondary owner forms of
registration; gifts of savings bonds that
have not yet been delivered; and
converted savings bonds that were
transferred from the conversion linked
account.
(2) Entities. A primary account for an
entity may contain Treasury securities
purchased initially as book-entry
securities registered in the name of the
entity and converted savings bonds in
the name of the entity that were
transferred from the conversion linked
account.
(b) * * *
(1) * * * You, as an individual
owner, may use your custom account to
buy, redeem, and transfer securities that
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you own in single owner, owner with
beneficiary, and primary owner with
secondary owner forms of registration.
An individual owner may also buy and
deliver gift savings bonds from the
custom account. An entity account
manager, acting on behalf of an entity,
may use the entity’s custom account to
buy, redeem, and transfer securities
registered in the entity form of
registration.
(2) Minor account. A minor account is
an account established by an individual
custodian for an individual who has not
yet reached the age of 18 years. We do
not permit an entity to open a minor
account. * * *
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■ 5. Revise § 363.11 to read as follows:
§ 363.11 Who is eligible to open a
TreasuryDirect® account?
Only an individual or an entity is
eligible to open a TreasuryDirect
account. In order to open a
TreasuryDirect account, an individual
or entity account manager must have a
valid social security number (SSN), be
18 years of age or over, and be legally
competent. An entity must have a valid
SSN or employer identification number.
The account owner must have a United
States address of record and have an
account at a United States depository
financial institution that will accept
debits and credits using the Automated
Clearing House method of payment.
■ 6. Amend § 363.12 by revising
paragraph (c) to read as follows:
§ 363.12 Who may purchase and hold
book-entry securities in TreasuryDirect®?
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(c) We do not permit a voluntary
representative to purchase securities on
behalf of the estate of a decedent.
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■ 7. Revise § 363.13 to read as follows:
§ 363.13 How can I open a TreasuryDirect®
account?
(a) General. You must establish a
TreasuryDirect account online before
you purchase a Treasury security to be
held in your account. Instructions for
online account establishment may be
found at the official Public Debt website
at https://www.treasurydirect.gov, or
such other Internet address as Public
Debt may from time to time announce
by publication in the Federal Register.
When you have completed the
application, you will create a password
to access your account. We will verify
your identity and send your account
number to you by e-mail when your
account application is approved. In
addition to your password, we may
require you to use any other form(s) of
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authentication that we consider
necessary for the protection of your
account.
(b) Entities. An individual, referred to
as an entity account manager, must
establish an account on behalf of an
entity. We will verify the identity of the
entity account manager. We may verify
the identity of the entity using any
evidence we deem appropriate. The
entity account manager must certify that
he or she is authorized to open and
access an account for the entity and has
the authority to act alone on behalf of
the entity with regard to the account.
■ 8. Revise § 363.14 to read as follows:
§ 363.14
How will you verify my identity?
(a) Individual. When you establish an
account, we may use a verification
service to verify your identity using
information you provide about yourself
on the online application. At our option,
we may require offline verification.
(b) Entity. When an entity account
manager establishes an online account
on behalf of an entity, we may use a
verification service to verify the identity
of the entity account manager using
information that the entity account
manager provides about himself or
herself on the online application. At our
option, we may require offline
verification of the entity account
manager. At our option, we may require
any evidence we deem appropriate to
verify the identity of the entity.
■ 9. Revise § 363.15 to read as follows:
§ 363.15 What is the procedure for offline
verification?
In the event we require offline
verification, we will provide a printable
verification form for the individual
account owner or entity account
manager to sign. The signature on the
form must be certified or guaranteed as
provided at § 363.43, and the form must
be mailed to us at the address provided
in § 363.5. We may require documentary
verification of an entity as we deem
appropriate.
■ 10. Amend § 363.20 by:
■ a. Revising paragraphs (b) and (c) to
read as follows; and
■ b. Removing paragraphs (d) and (e):
§ 363.20 What do I need to know about the
forms of registration that are available for
purchases of securities through my
TreasuryDirect® account?
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(b) Forms of registration for
individuals. The forms of registration
available for individuals for purchases
of securities made through your
TreasuryDirect account are single
owner, owner with beneficiary, and
primary owner with secondary owner,
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unless the forms of registration available
for a security are specifically limited by
the subpart governing that security.
(1) Single owner. (i) 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.
(ii) A single owner may add a
beneficiary or secondary owner.
(iii) A single owner may conduct
permitted online transactions on
securities held in his or her account.
(iv) 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.
(v) Registration example: ‘‘John Doe,
SSN 123–45–6789.’’
(2) Owner with beneficiary. (i) The
purchaser must be named as the owner
with another individual as beneficiary.
(ii) The owner may remove or change
the beneficiary without the consent of
the beneficiary.
(iii) The owner may conduct
permitted online transactions on
securities held in his or her account
without the consent of the beneficiary.
(iv) 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.
(v) If the beneficiary does not survive
the owner, the security belongs to the
estate of the owner.
(vi) 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.
(vii) 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.
(viii) Registration example: ‘‘John
Doe, SSN 123–45–6789 POD (payable
on death to) Jane Doe, SSN 987–65–
4321.’’
(3) Primary owner with secondary
owner. (i) The purchaser must be named
in the registration as the primary owner
with another individual as secondary
owner.
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(ii) The primary owner holds the
securities in his or her account and may
view or conduct permitted online
transactions in the securities.
(iii) The primary owner may remove
the secondary owner without the
consent of the secondary owner.
(iv) The secondary owner has no
rights to view or conduct transactions in
any security unless the primary owner
gives the secondary owner these rights.
(v) 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.
(vi) 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 the
primary owner’s account, and the
secondary owner may view and conduct
transactions in the security using the
secondary owner’s own account.
(vii) The primary owner may revoke
any rights previously given to the
secondary owner at any time.
(viii) 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.
(ix) 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.
(x) 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.
(xi) Registration example: ‘‘John Doe,
SSN 123–45–6789 with Joseph Doe,
SSN 987–65–4321.’’
(c) Forms of registration for entities.
The forms of registration available for
entities are sole proprietorship;
partnership; corporation; limited
liability company or professional
limited liability company (LLC or
PLLC); trust; decedent’s estate; and
estate of a living person such as an
incompetent or a minor.
(1) Sole proprietorship. A sole
proprietorship form of registration is
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available for an individual who is doing
business as a sole proprietor. The entity
account manager must be the owner of
the business. Registration example:
‘‘John Doe DBA Doe Plumbing Supplies,
EIN 12–3456789, [or SSN 123–45–
6789].’’
(2) Partnership. A partnership form of
registration is available for two or more
individuals who are doing business as a
partnership, including a limited liability
partnership. Unless the name of a
partnership includes the word
‘‘partnership,’’ the registration must
include descriptive words indicating
partnership status. The entity account
manager must be a general partner, and
must certify that he or she has the
authority to act alone on behalf of the
partnership with regard to this account.
Registration example: ‘‘Smith and Jones
Construction Company, a partnership,
EIN 98–7654321, or SSN 987–65–4321.’’
(3) Corporation. A corporate form of
registration is available for an entity that
has been incorporated pursuant to state
law. The registration must contain a
reference to the corporate status. The
entity account manager must be a
corporate officer or designated
employee and must certify that he or
she has the authority to act alone on
behalf of the corporation with regard to
this account. Registration example:
‘‘ABC Corporation, EIN 23–4567891.’’
(4) Limited Liability Company (LLC)
or Professional Limited Liability
Company (PLLC). A LLC or PLLC form
of registration is available for an entity
that has registered articles of
organization pursuant to state law. The
registration must contain a reference to
the company’s status. The entity
account manager must be a company
official or designated employee and
must certify that he or she has the
authority to act alone on behalf of the
company with regard to this account.
Registration example: ‘‘Paine Dental
Associates, PLLC, EIN 34–5678912’’ or
‘‘Summit Consulting Service, LLC, EIN
12–3456789.’’
(5) Trust. A trust form of registration
is available. The trust form of
registration is not available for trusts in
which the trustee is acting on behalf of
a federal, state, or local government. The
registration must identify the trust with
specificity; at a minimum, it must
include the authority or document
creating the trust, the date the document
was executed (except in the case of a
probated will when the date is not
necessary), the name of a trustee of the
trust who is authorized to act alone on
behalf of the trust with regard to the
account, and any information that is
necessary to distinguish the trust from
any other trust. The registration may
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also include the names of additional
trustees and the full name of the trust.
If one or more of the trustees are
individuals, and the entity account
manager is an individual trustee, the
entity account manager must be named
in the registration. If an organization
serving as a trustee of the trust will
administer this account, the entity
account manager must be a duly
authorized employee of that
organization who has the authority to
act alone on behalf of the organization
in its role as trustee of the trust with
regard to the account, and the
organization must be named in the
registration. In either case, the entity
account manager must certify that he or
she has the authority to act alone on
behalf of the trust with regard to the
account. Registration examples: ‘‘John
Doe, Trustee under Declaration of Trust
dated January 1, 2001, SSN 123–45–
6789;’’ ‘‘First National Bank, Trustee
under Declaration of Trust dated
January 1, 2001, EIN 12–3456789;’’
‘‘John Doe or Sarah Jones, Trustees
under Agreement with Jane Doe dated
January 1, 2001, SSN 123–45–6789;’’
‘‘Sarah Jones, Trustee under the Will of
Matthew Smith, deceased, SSN 123–45–
6789;’’ ‘‘Jane Doe, Trustee of the Doe
Family Trust dated January 1, 2001, EIN
12–3456789.’’
(6) The estate of a decedent. The
decedent’s estate form of registration is
available for an individual or
organization that has been appointed by
a court according to state law to act on
behalf of the estate of a decedent. This
form of registration is not available
where the legal representative is acting
on behalf of a federal, state, or local
government. The entity account
manager must be a court-appointed
individual legal representative who has
the authority to act alone with regard to
the account, or an employee of the
court-appointed organizational legal
representative who has the authority to
act alone with regard to the account on
behalf of the organization in its role as
legal representative of the estate.
Registration example: ‘‘John Doe, Legal
Representative of the Estate of William
Jones, a decedent, EIN 12–3456789, or
SSN 123–45–6789.’’
(7) The estate of a living person such
as an incompetent or a minor. A form
of registration is available for an
individual or organization that has been
appointed according to state law to act
on behalf of the estate of an incompetent
person, a minor, or other living person.
This form of registration is not available
where the legal guardian is acting on
behalf of a federal, state, or local
government. The entity account
manager must be a court-appointed legal
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guardian who has the authority to act
alone with regard to the account, or an
employee of the court-appointed
organizational legal guardian who has
the authority to act alone with regard to
the account on behalf of the
organization in its role as legal guardian.
Registration example: ‘‘John Doe, Legal
Guardian of the estate of William
Jones.’’ The SSN of the incompetent
person or the minor will be used.
■ 11. Revise § 363.21 to read as follows:
§ 363.21 When may you require offline
authentication and documentary evidence?
We may require offline authentication
and documentary evidence at our
option.
■ 12. Amend § 363.22 by:
■ a. Redesignating paragraph (a) as
paragraph (a)(1) and revising it;
■ b. Redesignating paragraph (b) as
paragraph (a)(2) and paragraphs (c)(1)
and (2) as paragraphs (a)(3)(i) and (ii);
■ c. Redesignating paragraph (d) as
paragraph (b); and
■ d. Adding a new paragraph (c).
The revision and addition read as
follows:
§ 363.22 Who has the right to conduct
online transactions in book-entry
securities?
(a) Individual. (1) Single owner form
of registration. A single owner can
conduct transactions in securities held
in his or her TreasuryDirect® account.
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(c) Entity. The entity account manager
can conduct transactions in the
securities held within the entity’s
account. Initially, the entity account
manager is the individual who opens
the account. The entity account manager
may be changed to a different individual
using procedures available on our Web
site. The entity account manager must
certify that he or she is authorized to act
alone on behalf of the entity in
accessing and conducting transactions
on behalf of the entity with regard to the
entity’s account.
■ 13. Amend § 363.27 by revising the
first sentence of paragraph (b)(1) to read
as follows:
§ 363.27 What do I need to know about
accounts for minors who have not had a
legal guardian appointed by a court?
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(b) Opening an account in the name
of a minor. (1) A parent or an individual
who provides the chief financial
support of a minor may open an account
for a minor. * * *
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■ 14. Amend § 363.44 by revising
paragraph (a) to read as follows:
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§ 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. For
an estate that is being administered, the
legal representative of the estate must
open a TreasuryDirect account in the
name of the estate in order to conduct
transactions. The legal representative of
the estate may then conduct any
transactions that are available to an
individual account owner. 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.
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■ 15. Amend § 363.50 by revising
paragraph (b)(1) to read as follows:
§ 363.50 What Treasury securities does
this subpart govern?
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(b) * * *
(1) The single owner or entity form of
registration of any series,
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■ 16. Amend § 363.55 by:
■ a. Revising the first sentence of
paragraph (a) and
■ b. Revising paragraph (c) to read as
follows:
§ 363.55 May I transfer my book-entry
savings bonds to another person?
(a) You may transfer a savings bond
or a portion of a savings bond to the
TreasuryDirect® account of another
person in a minimum amount of $25.
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(c) If the bond is being transferred to
an individual, the bond will be
transferred in the single owner form of
registration. If the bond is being
transferred to an entity, the bond will be
transferred in the entity form of
registration.
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■ 17. Amend § 363.95 by revising the
heading and paragraphs (a) and (b) to
read as follows:
§ 363.95 How may I give, and who can
receive, a book-entry savings bond as a
gift?
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*
*
(a) An individual may purchase a
book-entry savings bond online as a gift
and give it to an individual; or
(b) A person who owns a bond may
transfer that bond to another person as
a gift with immediate delivery.
■ 18. Amend § 363.96 by:
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a. Redesignating paragraphs (a)
through (d) as paragraphs (b) through
(e), and
■ b. Adding a new paragraph (a) to read
as follows:
■
§ 363.96 What do I need to know if I
initially purchase a savings bond as a gift?
(a) An entity may not purchase a gift
savings bond.
*
*
*
*
*
■ 19. Amend § 363.97 by revising
paragraphs (b) and (d) to read as
follows:
§ 363.97 What do I need to know if I
transfer a book-entry savings bond to
another person as a gift?
*
*
*
*
*
(b) You must provide the SSN or EIN
of the recipient.
*
*
*
*
*
(d) The bond will be transferred in the
single owner form of registration for
individual account owners, and in the
entity form of registration for account
owners that are entities.
■ 20. Revise § 363.137 to read as
follows:
§ 363.137 What do I need to know about
the registration of a certificate of
indebtedness?
A certificate of indebtedness is
automatically registered in the name of
the TreasuryDirect® account owner.
■ 21. Amend § 363.160 by revising
paragraph (b)(1) to read as follows:
§ 363.160 What subparts govern the
conversion of definitive savings bonds?
(b) * * *
(1) Converted savings bonds of any
series registered in the single owner or
entity form of registration;
*
*
*
*
*
■ 22. Revise § 363.161 to read as
follows:
§ 363.161 What definitive savings bonds
are eligible to be converted to book-entry
bonds?
Series E, Series EE, and Series I
savings bonds issued in denominations
of $25 or greater are eligible for
conversion to book-entry bonds in
TreasuryDirect®.
■ 23. Revise § 363.162 to read as
follows:
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§ 363.162 Who may convert a definitive
savings bond?
The owner of a TreasuryDirect®
primary account may convert a
definitive savings bond.
(a) Bond that is registered to the
account owner. The following persons
may convert a definitive savings bond of
an eligible series to a book-entry bond
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15:08 Apr 28, 2009
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to be held in the person’s
TreasuryDirect account:
(1) The owner of a definitive savings
bond registered in the single owner or
entity form of registration;
(2) Either co-owner of a bond
registered in the coowner form of
registration; and
(3) The owner of a bond registered in
the owner with beneficiary form of
registration.
(b) Bond that is registered to someone
other than the account owner. We will
convert an eligible definitive savings
bond submitted by an individual
account owner who is not the registered
owner of the savings bond. See the
special rules in section 363.166.
24. Revise § 363.165 to read as
follows:
■
§ 363.165 What happens when I convert a
savings bond that is registered in my name
as a single owner, either coowner, an owner
with a beneficiary, or an entity?
(a) Unmatured savings bond. When
the conversion is approved, an
unmatured savings bond that is
registered in the name of the
TreasuryDirect® account owner as a
single owner, either coowner, an owner
with beneficiary, or an entity, will be
released to the account owner’s
conversion linked account.
(b) Matured savings bond. A savings
bond that has reached final maturity
and is registered in the name of the
TreasuryDirect account owner as a
single owner, either coowner, an owner
with beneficiary, or an entity, will be
converted to a book-entry savings bond
and automatically redeemed. The
redemption proceeds will be used to
purchase a certificate of indebtedness in
the account owner’s name in the
primary account.
25. Amend § 363.166 by revising the
introductory paragraph to read as
follows:
■
§ 363.166 What happens when I convert a
savings bond that is not registered in my
name as a single owner, either coowner, or
an owner with beneficiary (including a bond
registered in the name of a minor)?
We will presume that a savings bond
registered in the name of someone other
than the TreasuryDirect® account owner
(including a bond registered in the name
of a minor) was purchased by the
account owner as a gift for the registered
owner. We will not permit an entity to
convert a savings bond that is not
registered in the name of the entity.
*
*
*
*
*
26. Amend § 363.168 by revising
paragraph (a) to read as follows:
■
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§ 363.168 What rules regarding
registration apply to a converted savings
bond?
(a) Savings bond of any series
registered in the single owner or entity
form of registration. By converting a
definitive bond of any eligible series
registered in the single owner or entity
form of registration to book-entry in
TreasuryDirect®, the owner has
consented to the bond being governed
by the rules regarding registration
contained in subpart C of this part.
*
*
*
*
*
■ 27. Amend § 363.169 by:
■ a. Revising the heading;
■ b. Revising paragraph (a); and
■ c. Revising the first sentence of
paragraph (b), to read as follows:
§ 363.169 What transactions can I conduct
in a converted savings bond on which I am
registered as the single owner, either
coowner, the owner with a beneficiary, or
an entity?
(a) Savings bond of any series
registered in the single owner or entity
form of registration. By converting a
definitive savings bond of any series
registered in the single owner or entity
form of registration to a book-entry
bond, you have consented to the bond
being treated as if it were originally
issued as a book-entry bond in
TreasuryDirect®. The bond will be
subject to the provisions of subpart C of
this part. Any transaction available for
a book-entry bond originally issued in
the TreasuryDirect system is available
for a converted bond registered in single
owner or entity form of registration.
(b) Savings bond of Series EE and
Series I registered in the owner with
beneficiary form of registration. By
converting a definitive savings bond
registered in the owner with beneficiary
form of registration to a book-entry
bond, you have consented to the bond
being treated as if it were originally
issued as a book-entry bond in
TreasuryDirect. * * *
*
*
*
*
*
■ 28. Amend § 363.171 by:
■ a. Revising paragraph (a)(1) and the
first sentence of paragraph (a)(2); and
■ b. Revising paragraph (b)(1) to read as
follows:
§ 363.171 How do I redeem a converted
savings bond?
(a) Before final maturity—(1) Savings
bond of any series registered in the
single owner, owner with beneficiary, or
entity form of registration. You may
redeem your converted savings bond of
any series registered either in the single
owner, owner with beneficiary, or entity
form of registration any time prior to
final maturity after the minimum
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holding period through your
TreasuryDirect® account.
(2) Savings bond of any series
registered in the coowner form of
registration. The converting coowner
may redeem the converted savings bond
of any series registered in the coowner
form of registration at any time prior to
final maturity after the minimum
holding period through his or her
TreasuryDirect account. * * *
(b) Upon final maturity—(1) Savings
bond of any series registered in the
single owner, owner with beneficiary,
coowner, or entity forms of registration.
If you have not previously redeemed or
transferred your converted savings bond
of any series registered in the single
owner, owner with beneficiary,
coowner, or entity forms of registration,
it will be automatically redeemed for
you at final maturity.
*
*
*
*
*
29. Amend § 363.206 by revising
paragraph (c) to read as follows:
■
§ 363.206 How can I transfer my
marketable Treasury security into my
TreasuryDirect® account from another
book-entry system?
*
*
*
*
*
(c)(1) Individuals. When a security is
transferred into the TreasuryDirect
account of an individual, it will be
transferred in the name of the
individual account owner in the single
owner form of registration, regardless of
the form of registration prior to the
transfer. After the transfer is completed,
you can change the registration to any
form of registration permitted by these
regulations.
(2) Entities. When a security is
transferred into the TreasuryDirect
account of an entity, the security will be
transferred in the name of the entity,
regardless of the form of registration
prior to the transfer.
*
*
*
*
*
Dated: April 22, 2009.
Kenneth E. Carfine,
Fiscal Assistant Secretary.
[FR Doc. E9–9630 Filed 4–24–09; 11:15 am]
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DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[USCG–2009–0210]
Drawbridge Operation Regulations;
Hackensack River, Jersey City, NJ,
Maintenance
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
AGENCY:
ACTION:
SUMMARY: The Commander, First Coast
Guard District, has issued a temporary
deviation from the regulation governing
the operation of the Witt Penn Bridge
across the Hackensack River at mile 3.1,
and the Lower Hack Bridge at mile 3.4,
across the Hackensack River, at Jersey
City, New Jersey. Under this temporary
deviation the Lower Hack Bridge will be
allowed to provide a maximum opening
of only 110 feet at mean high water for
a period of 30-days and both bridges
will be allowed to remain in the closed
position for a period of 45-days to
facilitate major bridge maintenance.
Vessels that can pass under the draws
without a bridge opening may do so at
all times.
DATES: This deviation is effective from
May 9, 2009 through July 22, 2009.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2009–
0210 and are available online at
www.regulations.gov, selecting the
Advanced Docket Search Option on the
right side of the screen, inserting USCG–
2009–0210 in the Docket ID box,
pressing Enter, and then clicking on the
item in the Docket ID column. This
material is also available for inspection
or copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call
Zachary Strauss, Project Officer, First
Coast Guard District, telephone 212–
668–7165. If you have questions on
viewing the docket, call Renee V.
Wright, Program Manager, Docket
Operations, telephone 202–366–9826.
SUPPLEMENTARY INFORMATION: The Witt
Penn Bridge, across the Hackensack
River at mile 3.1 has a vertical clearance
in the closed position of 35 feet at mean
high water and 40 feet at mean low
water.
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19421
The Lower Hack Bridge at mile 3.4
has a vertical clearance in the closed
position of 40 feet above mean high
water and 45 feet above low water. The
existing drawbridge operation
regulations are listed at 33 CFR 117.723.
The waterway has seasonal
recreational vessels, and commercial
vessels of various sizes.
The owner of the bridges, New Jersey
Department of Transportation, (Witt
Penn Bridge) and New Jersey Transit
(Lower Hack Bridge) requested a
temporary deviation to facilitate the
replacement of sheaves and wire ropes
at both the Witt Penn and Lower Hack
bridges and asbestos removal at the
Lower Hack Bridge only.
The asbestos removal at the Lower
Hack Bridge will prevent the bridge
from fully opening during the removal
process.
The asbestos removal is scheduled to
commence 30-days before the bridge
closures to replace the sheaves and wire
ropes at the bridges.
The Lower Hack Bridge will only be
able to open to 110 feet above mean
high water and 115 feet at mean low
water from May 9, 2009 through June 7,
2009, during the asbestos removal.
Therefore, under this temporary
deviation the Lower Hack Bridge may
open to only 110 feet above mean high
water instead of the normal 135 feet
above mean high water from May 9,
2009 through June 7, 2009. From June
8, 2009 through July 22, 2009, the Witt
Penn Bridge, mile 3.1, and the Lower
Hack Bridge, mile 3.4, across the
Hackensack River may remain in the
closed position for bridge maintenance.
Vessels that can pass under the bridge
without a bridge opening may do so at
all times.
In accordance with 33 CFR 117.35(e),
the bridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
deviation from the operating regulations
is authorized under 33 CFR 117.35.
Dated: April 13, 2009.
Gary Kassof,
Bridge Program Manager, First Coast Guard
District.
[FR Doc. E9–9717 Filed 4–28–09; 8:45 am]
BILLING CODE 4910–15–P
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]]>Agencies
[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Rules and Regulations]
[Pages 19416-19421]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9630]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Regulations Governing Securities Held in TreasuryDirect
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: TreasuryDirect is an account-based, book-entry, online system
for purchasing, holding, and conducting transactions in Treasury
securities. To date, TreasuryDirect has only been available for
individual account owners. This final rule will permit certain
specified entities to open accounts in TreasuryDirect.
DATES: Effective date: April 24, 2009.
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 Retail Securities, Bureau of the Public Debt, at (304) 480-
6319 or elisha.whipkey@bpd.treas.gov.
Susan Sharp, Attorney-Adviser, Elizabeth Spears, Senior Attorney,
Edward Gronseth, Deputy Chief Counsel, Office of the Chief Counsel,
Bureau of the Public Debt, at (304) 480-8692 or
susan.sharp@bpd.treas.gov.
SUPPLEMENTARY INFORMATION: TreasuryDirect is an online account-based
system for individuals to purchase, hold, and conduct transactions in
eligible Treasury securities. To date, only individuals have been
permitted to open a TreasuryDirect account. This final rule will permit
certain specified entities to open accounts in TreasuryDirect and
conduct transactions in eligible Treasury securities. A sole
proprietorship, partnership, corporation, limited liability company or
professional limited liability company, trust, decedent's estate,
estate of an incompetent individual, and estate of a minor will be able
to open a TreasuryDirect account. Treasury believes that these forms of
registrations will serve most organizations and fiduciaries wishing to
open a TreasuryDirect account. If, in the future, there is a
demonstrated need for other forms of entity registrations, Treasury
will consider adding additional registrations.
The account must be opened and managed by an individual known as an
entity account manager who is authorized to act alone on behalf of the
entity with regard to this account. Only an individual is permitted to
act as an entity account manager. Initially, the entity account manager
will be the individual who opens the TreasuryDirect account. If the
entity subsequently wishes to change the individual who acts as its
entity account manager, the entity account manager may be changed using
procedures available on the TreasuryDirect Web site. Only one
individual may act as entity account manager at any one time. The
identity of the entity account manager will be verified using an online
verification service; the identity of the entity may be verified using
appropriate evidence. The entity account manager must certify online
that he or she has the authority to act alone on behalf of the entity.
An entity will not be permitted to open a minor linked account. An
entity cannot purchase gift savings bonds, and a gift bond cannot be
delivered to an entity. However, an entity may transfer an existing
bond, which is already registered in the entity's name, to another
account (primary or linked) owned by either an individual or an entity.
An entity may convert a definitive savings bond to book-entry form if
the bond is registered in the name of the entity.
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 in 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 363--REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT
0
1. 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
2. Amend Sec. 363.5 by revising paragraph (c) to read as follows:
Sec. 363.5 How do I contact Public Debt?
* * * * *
(c) Letters should be addressed to the address provided on our web
site at https://www.treasurydirect.gov/write.htm.
0
3. Amend Sec. 363.6 by:
0
a. Adding the definitions of ``Entity,'' ``Entity account manager,''
and ``Incompetent individual or Incompentent person'' in alphabetical
order;
0
b. Revising the definitions of ``Individual,'' ``Owner,'' ``Person,''
and ``Verification'' to read as follows:
Sec. 363.6 What special terms do I need to know to understand this
part?
* * * * *
Entity means any owner of a TreasuryDirect account that is not an
individual. Entity is a sole proprietorship, partnership, corporation,
limited liability company or professional limited liability company,
trust, the estate of a decedent, or the estate of a living person such
as an incompetent or a minor.
Entity account manager is the individual who initially opens the
TreasuryDirect account for an entity, or his or her replacement; who is
authorized by the entity to act alone on its behalf to open, access,
and conduct transactions with respect to the account; and who certifies
that he or she is so authorized.
* * * * *
Incompetent individual or incompetent person means an individual
who has been declared by a court to be legally incompetent,
incapacitated, or otherwise unable to manage his or her financial
affairs.
[[Page 19417]]
Individual means a natural person.
* * * * *
Owner, when referring to an individual, is either the single
individual named in the registration of a security held in the single
owner form of registration, the first individual named on a security
held in the owner with beneficiary form of registration, the first
individual named on a security held in the primary owner with secondary
owner form of registration, or either individual named on a converted
savings bond held in the coowner form of registration; when referring
to an entity, the owner is the entity.
Person means an individual or an entity.
* * * * *
Verification means confirming the identity of an online applicant
for a TreasuryDirect account at account establishment using an online
verification service or offline verification.
* * * * *
0
4. Amend Sec. 363.10 by:
0
a. Revising paragraph (a),
0
b. Revising the fifth and sixth sentences of and adding a seventh
sentence to paragraph (b)(1), and
0
c. Revising the first sentence of and adding a new second sentence to
paragraph (b)(2), to read as follows:
Sec. 363.10 What is a TreasuryDirect[supreg] account?
* * * * *
(a) Primary Account. The primary account is the account that you
establish when initially opening your TreasuryDirect account. The
primary account may contain the following Treasury securities:
(1) Individual. A primary account for an individual may contain
Treasury securities purchased initially as book-entry securities that
are your personal holdings registered in single owner, owner with
beneficiary, and primary owner with secondary owner forms of
registration; gifts of savings bonds that have not yet been delivered;
and converted savings bonds that were transferred from the conversion
linked account.
(2) Entities. A primary account for an entity may contain Treasury
securities purchased initially as book-entry securities registered in
the name of the entity and converted savings bonds in the name of the
entity that were transferred from the conversion linked account.
(b) * * *
(1) * * * You, as an individual owner, may use your custom account
to buy, redeem, and transfer securities that you own in single owner,
owner with beneficiary, and primary owner with secondary owner forms of
registration. An individual owner may also buy and deliver gift savings
bonds from the custom account. An entity account manager, acting on
behalf of an entity, may use the entity's custom account to buy,
redeem, and transfer securities registered in the entity form of
registration.
(2) Minor account. A minor account is an account established by an
individual custodian for an individual who has not yet reached the age
of 18 years. We do not permit an entity to open a minor account. * * *
* * * * *
0
5. Revise Sec. 363.11 to read as follows:
Sec. 363.11 Who is eligible to open a TreasuryDirect[supreg] account?
Only an individual or an entity is eligible to open a
TreasuryDirect account. In order to open a TreasuryDirect account, an
individual or entity account manager must have a valid social security
number (SSN), be 18 years of age or over, and be legally competent. An
entity must have a valid SSN or employer identification number. The
account owner must have a United States address of record and have an
account at a United States depository financial institution that will
accept debits and credits using the Automated Clearing House method of
payment.
0
6. Amend Sec. 363.12 by revising paragraph (c) to read as follows:
Sec. 363.12 Who may purchase and hold book-entry securities in
TreasuryDirect[supreg]?
* * * * *
(c) We do not permit a voluntary representative to purchase
securities on behalf of the estate of a decedent.
* * * * *
0
7. Revise Sec. 363.13 to read as follows:
Sec. 363.13 How can I open a TreasuryDirect[supreg] account?
(a) General. You must establish a TreasuryDirect account online
before you purchase a Treasury security to be held in your account.
Instructions for online account establishment may be found at the
official Public Debt website at https://www.treasurydirect.gov, or such
other Internet address as Public Debt may from time to time announce by
publication in the Federal Register. When you have completed the
application, you will create a password to access your account. We will
verify your identity and send your account number to you by e-mail when
your account application is approved. In addition to your password, we
may require you to use any other form(s) of authentication that we
consider necessary for the protection of your account.
(b) Entities. An individual, referred to as an entity account
manager, must establish an account on behalf of an entity. We will
verify the identity of the entity account manager. We may verify the
identity of the entity using any evidence we deem appropriate. The
entity account manager must certify that he or she is authorized to
open and access an account for the entity and has the authority to act
alone on behalf of the entity with regard to the account.
0
8. Revise Sec. 363.14 to read as follows:
Sec. 363.14 How will you verify my identity?
(a) Individual. When you establish an account, we may use a
verification service to verify your identity using information you
provide about yourself on the online application. At our option, we may
require offline verification.
(b) Entity. When an entity account manager establishes an online
account on behalf of an entity, we may use a verification service to
verify the identity of the entity account manager using information
that the entity account manager provides about himself or herself on
the online application. At our option, we may require offline
verification of the entity account manager. At our option, we may
require any evidence we deem appropriate to verify the identity of the
entity.
0
9. Revise Sec. 363.15 to read as follows:
Sec. 363.15 What is the procedure for offline verification?
In the event we require offline verification, we will provide a
printable verification form for the individual account owner or entity
account manager to sign. The signature on the form must be certified or
guaranteed as provided at Sec. 363.43, and the form must be mailed to
us at the address provided in Sec. 363.5. We may require documentary
verification of an entity as we deem appropriate.
0
10. Amend Sec. 363.20 by:
0
a. Revising paragraphs (b) and (c) to read as follows; and
0
b. Removing paragraphs (d) and (e):
Sec. 363.20 What do I need to know about the forms of registration
that are available for purchases of securities through my
TreasuryDirect[supreg] account?
* * * * *
(b) Forms of registration for individuals. The forms of
registration available for individuals for purchases of securities made
through your TreasuryDirect account are single owner, owner with
beneficiary, and primary owner with secondary owner,
[[Page 19418]]
unless the forms of registration available for a security are
specifically limited by the subpart governing that security.
(1) Single owner. (i) 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.
(ii) A single owner may add a beneficiary or secondary owner.
(iii) A single owner may conduct permitted online transactions on
securities held in his or her account.
(iv) 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.
(v) Registration example: ``John Doe, SSN 123-45-6789.''
(2) Owner with beneficiary. (i) The purchaser must be named as the
owner with another individual as beneficiary.
(ii) The owner may remove or change the beneficiary without the
consent of the beneficiary.
(iii) The owner may conduct permitted online transactions on
securities held in his or her account without the consent of the
beneficiary.
(iv) 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.
(v) If the beneficiary does not survive the owner, the security
belongs to the estate of the owner.
(vi) 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.
(vii) 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.
(viii) Registration example: ``John Doe, SSN 123-45-6789 POD
(payable on death to) Jane Doe, SSN 987-65-4321.''
(3) Primary owner with secondary owner. (i) The purchaser must be
named in the registration as the primary owner with another individual
as secondary owner.
(ii) The primary owner holds the securities in his or her account
and may view or conduct permitted online transactions in the
securities.
(iii) The primary owner may remove the secondary owner without the
consent of the secondary owner.
(iv) The secondary owner has no rights to view or conduct
transactions in any security unless the primary owner gives the
secondary owner these rights.
(v) 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.
(vi) 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 the primary owner's account, and the
secondary owner may view and conduct transactions in the security using
the secondary owner's own account.
(vii) The primary owner may revoke any rights previously given to
the secondary owner at any time.
(viii) 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.
(ix) 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.
(x) 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.
(xi) Registration example: ``John Doe, SSN 123-45-6789 with Joseph
Doe, SSN 987-65-4321.''
(c) Forms of registration for entities. The forms of registration
available for entities are sole proprietorship; partnership;
corporation; limited liability company or professional limited
liability company (LLC or PLLC); trust; decedent's estate; and estate
of a living person such as an incompetent or a minor.
(1) Sole proprietorship. A sole proprietorship form of registration
is available for an individual who is doing business as a sole
proprietor. The entity account manager must be the owner of the
business. Registration example: ``John Doe DBA Doe Plumbing Supplies,
EIN 12-3456789, [or SSN 123-45-6789].''
(2) Partnership. A partnership form of registration is available
for two or more individuals who are doing business as a partnership,
including a limited liability partnership. Unless the name of a
partnership includes the word ``partnership,'' the registration must
include descriptive words indicating partnership status. The entity
account manager must be a general partner, and must certify that he or
she has the authority to act alone on behalf of the partnership with
regard to this account. Registration example: ``Smith and Jones
Construction Company, a partnership, EIN 98-7654321, or SSN 987-65-
4321.''
(3) Corporation. A corporate form of registration is available for
an entity that has been incorporated pursuant to state law. The
registration must contain a reference to the corporate status. The
entity account manager must be a corporate officer or designated
employee and must certify that he or she has the authority to act alone
on behalf of the corporation with regard to this account. Registration
example: ``ABC Corporation, EIN 23-4567891.''
(4) Limited Liability Company (LLC) or Professional Limited
Liability Company (PLLC). A LLC or PLLC form of registration is
available for an entity that has registered articles of organization
pursuant to state law. The registration must contain a reference to the
company's status. The entity account manager must be a company official
or designated employee and must certify that he or she has the
authority to act alone on behalf of the company with regard to this
account. Registration example: ``Paine Dental Associates, PLLC, EIN 34-
5678912'' or ``Summit Consulting Service, LLC, EIN 12-3456789.''
(5) Trust. A trust form of registration is available. The trust
form of registration is not available for trusts in which the trustee
is acting on behalf of a federal, state, or local government. The
registration must identify the trust with specificity; at a minimum, it
must include the authority or document creating the trust, the date the
document was executed (except in the case of a probated will when the
date is not necessary), the name of a trustee of the trust who is
authorized to act alone on behalf of the trust with regard to the
account, and any information that is necessary to distinguish the trust
from any other trust. The registration may
[[Page 19419]]
also include the names of additional trustees and the full name of the
trust. If one or more of the trustees are individuals, and the entity
account manager is an individual trustee, the entity account manager
must be named in the registration. If an organization serving as a
trustee of the trust will administer this account, the entity account
manager must be a duly authorized employee of that organization who has
the authority to act alone on behalf of the organization in its role as
trustee of the trust with regard to the account, and the organization
must be named in the registration. In either case, the entity account
manager must certify that he or she has the authority to act alone on
behalf of the trust with regard to the account. Registration examples:
``John Doe, Trustee under Declaration of Trust dated January 1, 2001,
SSN 123-45-6789;'' ``First National Bank, Trustee under Declaration of
Trust dated January 1, 2001, EIN 12-3456789;'' ``John Doe or Sarah
Jones, Trustees under Agreement with Jane Doe dated January 1, 2001,
SSN 123-45-6789;'' ``Sarah Jones, Trustee under the Will of Matthew
Smith, deceased, SSN 123-45-6789;'' ``Jane Doe, Trustee of the Doe
Family Trust dated January 1, 2001, EIN 12-3456789.''
(6) The estate of a decedent. The decedent's estate form of
registration is available for an individual or organization that has
been appointed by a court according to state law to act on behalf of
the estate of a decedent. This form of registration is not available
where the legal representative is acting on behalf of a federal, state,
or local government. The entity account manager must be a court-
appointed individual legal representative who has the authority to act
alone with regard to the account, or an employee of the court-appointed
organizational legal representative who has the authority to act alone
with regard to the account on behalf of the organization in its role as
legal representative of the estate. Registration example: ``John Doe,
Legal Representative of the Estate of William Jones, a decedent, EIN
12-3456789, or SSN 123-45-6789.''
(7) The estate of a living person such as an incompetent or a
minor. A form of registration is available for an individual or
organization that has been appointed according to state law to act on
behalf of the estate of an incompetent person, a minor, or other living
person. This form of registration is not available where the legal
guardian is acting on behalf of a federal, state, or local government.
The entity account manager must be a court-appointed legal guardian who
has the authority to act alone with regard to the account, or an
employee of the court-appointed organizational legal guardian who has
the authority to act alone with regard to the account on behalf of the
organization in its role as legal guardian. Registration example:
``John Doe, Legal Guardian of the estate of William Jones.'' The SSN of
the incompetent person or the minor will be used.
0
11. Revise Sec. 363.21 to read as follows:
Sec. 363.21 When may you require offline authentication and
documentary evidence?
We may require offline authentication and documentary evidence at
our option.
0
12. Amend Sec. 363.22 by:
0
a. Redesignating paragraph (a) as paragraph (a)(1) and revising it;
0
b. Redesignating paragraph (b) as paragraph (a)(2) and paragraphs
(c)(1) and (2) as paragraphs (a)(3)(i) and (ii);
0
c. Redesignating paragraph (d) as paragraph (b); and
0
d. Adding a new paragraph (c).
The revision and addition read as follows:
Sec. 363.22 Who has the right to conduct online transactions in book-
entry securities?
(a) Individual. (1) Single owner form of registration. A single
owner can conduct transactions in securities held in his or her
TreasuryDirect[supreg] account.
* * * * *
(c) Entity. The entity account manager can conduct transactions in
the securities held within the entity's account. Initially, the entity
account manager is the individual who opens the account. The entity
account manager may be changed to a different individual using
procedures available on our Web site. The entity account manager must
certify that he or she is authorized to act alone on behalf of the
entity in accessing and conducting transactions on behalf of the entity
with regard to the entity's account.
0
13. Amend Sec. 363.27 by revising the first sentence of paragraph
(b)(1) to read as follows:
Sec. 363.27 What do I need to know about accounts for minors who have
not had a legal guardian appointed by a court?
* * * * *
(b) Opening an account in the name of a minor. (1) A parent or an
individual who provides the chief financial support of a minor may open
an account for a minor. * * *
* * * * *
0
14. Amend Sec. 363.44 by revising paragraph (a) to read as follows:
Sec. 363.44 What happens when a TreasuryDirect[supreg] account owner
dies and the estate is entitled to securities held in the account?
(a) Estate is being administered. For an estate that is being
administered, the legal representative of the estate must open a
TreasuryDirect account in the name of the estate in order to conduct
transactions. The legal representative of the estate may then conduct
any transactions that are available to an individual account owner. 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.
* * * * *
0
15. Amend Sec. 363.50 by revising paragraph (b)(1) to read as follows:
Sec. 363.50 What Treasury securities does this subpart govern?
* * * * *
(b) * * *
(1) The single owner or entity form of registration of any series,
* * * * *
0
16. Amend Sec. 363.55 by:
0
a. Revising the first sentence of paragraph (a) and
0
b. Revising paragraph (c) to read as follows:
Sec. 363.55 May I transfer my book-entry savings bonds to another
person?
(a) You may transfer a savings bond or a portion of a savings bond
to the TreasuryDirect[supreg] account of another person in a minimum
amount of $25. * * *
* * * * *
(c) If the bond is being transferred to an individual, the bond
will be transferred in the single owner form of registration. If the
bond is being transferred to an entity, the bond will be transferred in
the entity form of registration.
* * * * *
0
17. Amend Sec. 363.95 by revising the heading and paragraphs (a) and
(b) to read as follows:
Sec. 363.95 How may I give, and who can receive, a book-entry savings
bond as a gift?
* * * * *
(a) An individual may purchase a book-entry savings bond online as
a gift and give it to an individual; or
(b) A person who owns a bond may transfer that bond to another
person as a gift with immediate delivery.
0
18. Amend Sec. 363.96 by:
[[Page 19420]]
0
a. Redesignating paragraphs (a) through (d) as paragraphs (b) through
(e), and
0
b. Adding a new paragraph (a) to read as follows:
Sec. 363.96 What do I need to know if I initially purchase a savings
bond as a gift?
(a) An entity may not purchase a gift savings bond.
* * * * *
0
19. Amend Sec. 363.97 by revising paragraphs (b) and (d) to read as
follows:
Sec. 363.97 What do I need to know if I transfer a book-entry savings
bond to another person as a gift?
* * * * *
(b) You must provide the SSN or EIN of the recipient.
* * * * *
(d) The bond will be transferred in the single owner form of
registration for individual account owners, and in the entity form of
registration for account owners that are entities.
0
20. Revise Sec. 363.137 to read as follows:
Sec. 363.137 What do I need to know about the registration of a
certificate of indebtedness?
A certificate of indebtedness is automatically registered in the
name of the TreasuryDirect[supreg] account owner.
0
21. Amend Sec. 363.160 by revising paragraph (b)(1) to read as
follows:
Sec. 363.160 What subparts govern the conversion of definitive
savings bonds?
(b) * * *
(1) Converted savings bonds of any series registered in the single
owner or entity form of registration;
* * * * *
0
22. Revise Sec. 363.161 to read as follows:
Sec. 363.161 What definitive savings bonds are eligible to be
converted to book-entry bonds?
Series E, Series EE, and Series I savings bonds issued in
denominations of $25 or greater are eligible for conversion to book-
entry bonds in TreasuryDirect[supreg].
0
23. Revise Sec. 363.162 to read as follows:
Sec. 363.162 Who may convert a definitive savings bond?
The owner of a TreasuryDirect[supreg] primary account may convert a
definitive savings bond.
(a) Bond that is registered to the account owner. The following
persons may convert a definitive savings bond of an eligible series to
a book-entry bond to be held in the person's TreasuryDirect account:
(1) The owner of a definitive savings bond registered in the single
owner or entity form of registration;
(2) Either co-owner of a bond registered in the coowner form of
registration; and
(3) The owner of a bond registered in the owner with beneficiary
form of registration.
(b) Bond that is registered to someone other than the account
owner. We will convert an eligible definitive savings bond submitted by
an individual account owner who is not the registered owner of the
savings bond. See the special rules in section 363.166.
0
24. Revise Sec. 363.165 to read as follows:
Sec. 363.165 What happens when I convert a savings bond that is
registered in my name as a single owner, either coowner, an owner with
a beneficiary, or an entity?
(a) Unmatured savings bond. When the conversion is approved, an
unmatured savings bond that is registered in the name of the
TreasuryDirect[supreg] account owner as a single owner, either coowner,
an owner with beneficiary, or an entity, will be released to the
account owner's conversion linked account.
(b) Matured savings bond. A savings bond that has reached final
maturity and is registered in the name of the TreasuryDirect account
owner as a single owner, either coowner, an owner with beneficiary, or
an entity, will be converted to a book-entry savings bond and
automatically redeemed. The redemption proceeds will be used to
purchase a certificate of indebtedness in the account owner's name in
the primary account.
0
25. Amend Sec. 363.166 by revising the introductory paragraph to read
as follows:
Sec. 363.166 What happens when I convert a savings bond that is not
registered in my name as a single owner, either coowner, or an owner
with beneficiary (including a bond registered in the name of a minor)?
We will presume that a savings bond registered in the name of
someone other than the TreasuryDirect[supreg] account owner (including
a bond registered in the name of a minor) was purchased by the account
owner as a gift for the registered owner. We will not permit an entity
to convert a savings bond that is not registered in the name of the
entity.
* * * * *
0
26. Amend Sec. 363.168 by revising paragraph (a) to read as follows:
Sec. 363.168 What rules regarding registration apply to a converted
savings bond?
(a) Savings bond of any series registered in the single owner or
entity form of registration. By converting a definitive bond of any
eligible series registered in the single owner or entity form of
registration to book-entry in TreasuryDirect[supreg], the owner has
consented to the bond being governed by the rules regarding
registration contained in subpart C of this part.
* * * * *
0
27. Amend Sec. 363.169 by:
0
a. Revising the heading;
0
b. Revising paragraph (a); and
0
c. Revising the first sentence of paragraph (b), to read as follows:
Sec. 363.169 What transactions can I conduct in a converted savings
bond on which I am registered as the single owner, either coowner, the
owner with a beneficiary, or an entity?
(a) Savings bond of any series registered in the single owner or
entity form of registration. By converting a definitive savings bond of
any series registered in the single owner or entity form of
registration to a book-entry bond, you have consented to the bond being
treated as if it were originally issued as a book-entry bond in
TreasuryDirect[supreg]. The bond will be subject to the provisions of
subpart C of this part. Any transaction available for a book-entry bond
originally issued in the TreasuryDirect system is available for a
converted bond registered in single owner or entity form of
registration.
(b) Savings bond of Series EE and Series I registered in the owner
with beneficiary form of registration. By converting a definitive
savings bond registered in the owner with beneficiary form of
registration to a book-entry bond, you have consented to the bond being
treated as if it were originally issued as a book-entry bond in
TreasuryDirect. * * *
* * * * *
0
28. Amend Sec. 363.171 by:
0
a. Revising paragraph (a)(1) and the first sentence of paragraph
(a)(2); and
0
b. Revising paragraph (b)(1) to read as follows:
Sec. 363.171 How do I redeem a converted savings bond?
(a) Before final maturity--(1) Savings bond of any series
registered in the single owner, owner with beneficiary, or entity form
of registration. You may redeem your converted savings bond of any
series registered either in the single owner, owner with beneficiary,
or entity form of registration any time prior to final maturity after
the minimum
[[Page 19421]]
holding period through your TreasuryDirect[supreg] account.
(2) Savings bond of any series registered in the coowner form of
registration. The converting coowner may redeem the converted savings
bond of any series registered in the coowner form of registration at
any time prior to final maturity after the minimum holding period
through his or her TreasuryDirect account. * * *
(b) Upon final maturity--(1) Savings bond of any series registered
in the single owner, owner with beneficiary, coowner, or entity forms
of registration. If you have not previously redeemed or transferred
your converted savings bond of any series registered in the single
owner, owner with beneficiary, coowner, or entity forms of
registration, it will be automatically redeemed for you at final
maturity.
* * * * *
0
29. Amend Sec. 363.206 by revising paragraph (c) to read as follows:
Sec. 363.206 How can I transfer my marketable Treasury security into
my TreasuryDirect[supreg] account from another book-entry system?
* * * * *
(c)(1) Individuals. When a security is transferred into the
TreasuryDirect account of an individual, it will be transferred in the
name of the individual account owner in the single owner form of
registration, regardless of the form of registration prior to the
transfer. After the transfer is completed, you can change the
registration to any form of registration permitted by these
regulations.
(2) Entities. When a security is transferred into the
TreasuryDirect account of an entity, the security will be transferred
in the name of the entity, regardless of the form of registration prior
to the transfer.
* * * * *
Dated: April 22, 2009.
Kenneth E. Carfine,
Fiscal Assistant Secretary.
[FR Doc. E9-9630 Filed 4-24-09; 11:15 am]
BILLING CODE 4810-39-P
