Securities Held in TreasuryDirect, 26089-26091 [2010-11141]
Download as PDF
Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Rules and Regulations
phrase ‘‘less than a majority of valid
ballots cast were for representation.’’
Dated: May 5, 2010.
Mary Johnson,
General Counsel, National Mediation Board.
[FR Doc. 2010–11026 Filed 5–10–10; 8:45 am]
BILLING CODE 7550–01–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Securities Held in TreasuryDirect
AGENCY: Bureau of the Public Debt,
Fiscal Service, Treasury.
ACTION: Final rule.
TreasuryDirect® is an
account-based, book-entry, online
system for purchasing, holding, and
conducting transactions in Treasury
securities. This final rule benefits
TreasuryDirect® customers by
simplifying the procedures for advance
scheduling of marketable Treasury
security purchases, enhancing the
process of scheduling reinvestments of
marketable Treasury securities, and
improving the procedures when the
proceeds of the maturing security are
insufficient to pay for a new security.
DATES: Effective Date: May 15, 2010.
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, 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.sharp@bpd.treas.gov>.
SUPPLEMENTARY INFORMATION:
TreasuryDirect® is an online, accountbased system for individuals and
entities to purchase, hold, and conduct
transactions in eligible Treasury
securities. This final rule makes changes
to the procedures for purchasing and
reinvesting marketable Treasury
securities.
TreasuryDirect® currently allows a
customer to schedule a marketable
security purchase up to five years in
advance. Because the auction schedule
for marketable Treasury securities
cannot be predicted with certainty that
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SUMMARY:
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16:21 May 10, 2010
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far in advance, some scheduled security
purchases must be canceled when no
matching security is available at that
time. This final rule limits the advance
scheduling of new purchases of
marketable securities. One day each
week, marketable securities that are
scheduled for auction within 8 weeks
will be made available on the
TreasuryDirect® Web site for scheduling
a purchase. These securities are the only
marketable securities available for
advance purchase. Marketable security
purchases scheduled before May 15,
2010, to take effect after July 9, 2010,
will be canceled.
Treasury is streamlining the
procedures for reinvesting marketable
Treasury securities purchased and held
in TreasuryDirect®. Prior to the effective
date of this rule, a customer was
required to take several steps to reinvest
a marketable security. First, the
customer had to determine the date that
the security matured, then direct that
the proceeds of the maturing security be
used to purchase a certificate of
indebtedness, and then schedule a new
purchase to coincide with the maturity
date of the original security, with the
payment for the new security being
made using the redemption proceeds of
the certificate of indebtedness. Any
purchase of a marketable security in
which the payment was made through
the redemption proceeds of the
customer’s certificate of indebtedness
was treated as a reinvestment. The new
procedure will streamline the
reinvestment process by permitting the
customer to schedule automatic
reinvestments without requiring the
customer to calculate dates and
schedule purchases. Reinvestments will
be limited at any one time to 25 times
for a 4-week bill, 7 times for a 13-week
bill, 3 times for a 26-week bill, and once
for all other marketable security types.
The customer can schedule a
reinvestment either at the time of
purchase or after the security is issued
into the account. However, the customer
cannot schedule, edit, or cancel a
reinvestment when the maturing
security goes into a closed book period,
or when a noncompetitive bid for the
replacement security is no longer
accepted, whichever comes first.
Because of the changes made to the
reinvestment process, any marketable
security purchase scheduled prior to the
effective date of this rule, and with an
effective issue date on or after the
effective date of this rule (except for
purchases scheduled to take effect after
July 9, 2010, which, as noted above, will
be canceled), will be treated as a new
purchase, even if the transaction would
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26089
have been treated as a reinvestment
prior to this rule.
In addition, the procedure is changing
whenever there are insufficient funds
from the maturing security to pay the
full purchase price of the replacement
security. Previously, in that event,
TreasuryDirect® would cancel the
transaction. This final rule provides
that, in the event that the proceeds of
the maturing security are insufficient to
pay the full purchase price of the
replacement security, the additional
amount will be paid by either debiting
the customer’s primary account at a
financial institution or by using the
redemption proceeds from the
customer’s certificate of indebtedness.
The source for the additional funds
depends on how the maturing security
was acquired. If the maturing security
was purchased within TreasuryDirect®
prior to the effective date of this rule, or
purchased after the effective date of this
rule and the source of the funds to
purchase the security was a debit from
a financial institution account, or if the
maturing security was received through
a transfer, then the customer’s primary
account at a financial institution will be
debited for the additional amount. If
there are insufficient funds in the
customer’s primary account at a
financial institution, the reinvestment
will be canceled. If the maturing
security was purchased after the
effective date of this rule using
redemption proceeds from the
customer’s certificate of indebtedness,
then a redemption from the customer’s
certificate of indebtedness will be made
for the additional funds. If the amount
available for redemption from the
certificate of indebtedness is insufficient
to pay the additional amount, the
reinvestment will be canceled.
Procedural Requirements
Executive Order 12866. This rule is
not a significant regulatory action
pursuant to Executive Order 12866.
Administrative Procedure Act (APA).
Because this rule relates to United
States securities, which are contracts
between Treasury and the owner of the
security, this rule falls within the
contract exception to the APA, 5 U.S.C.
553(a)(2). As a result, the notice, public
comment, and delayed effective date
provisions of the APA are inapplicable
to this rule.
Regulatory Flexibility Act. The
provisions of the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., do not apply
to this rule because, pursuant to 5
U.S.C. 553(a)(2), it is not required to be
issued with notice and opportunity for
public comment.
E:\FR\FM\11MYR1.SGM
11MYR1
26090
Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Rules and Regulations
Paperwork Reduction Act (PRA).
There is no new collection of
information contained in this final rule
that would be subject to the PRA, 44
U.S.C. 3501 et seq. Under the PRA, an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a valid OMB control number.
The Office of Management and Budget
already has approved all collections of
information in 31 CFR part 363 under
OMB control number 1535–0138.
Congressional Review Act (CRA). This
rule is not a major rule pursuant to the
CRA, 5 U.S.C. 801 et seq., because it is
a minor amendment that requires less
reporting, and is not anticipated to have
any effect on investors; therefore, it is
not expected to lead to any of the results
listed in 5 U.S.C. 804(2). This rule may
take immediate effect after we submit a
copy of it to Congress.
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 § 363.6 by:
a. Adding the definition of ‘‘Closed
book period’’ and ‘‘Reinvestment’’ in
alphabetical order; and
■ b. Revising the definition of ‘‘Owner,’’
to read as follows:
■
■
§ 363.6 What special terms do I need to
know to understand this part?
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*
*
*
*
*
Closed book period means a period of
four business days prior to the date a
scheduled marketable security interest
and/or maturity payment is made,
during which time certain transactions
will be delayed until after the closed
book period is completed. (See
§ 363.210.)
*
*
*
*
*
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
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16:21 May 10, 2010
Jkt 220001
secondary owner form of registration, or
either individual named on a converted
savings bond held in the coowner form
of registration; when referring to a
minor linked account, the owner is the
minor; when referring to an entity, the
owner is the entity.
*
*
*
*
*
Reinvestment means using the
redemption proceeds of a maturing
marketable security to purchase a new
marketable security of the same type
and term, using the automatic
reinvestment option available in
TreasuryDirect.
*
*
*
*
*
■ 3. Amend § 363.202 by revising
paragraph (a) to read as follows:
§ 363.202 What marketable Treasury
securities may I purchase and hold through
my TreasuryDirect ® account?
(a) Purchase. (1) Advance purchase.
You may purchase any marketable
Treasury security that is available for
purchase through the TreasuryDirect ®
website. One day each week, marketable
securities that are scheduled for auction
within 8 weeks will be made available
on the TreasuryDirect website for
scheduling an advance purchase, and
are the only marketable securities that
you can schedule for advance purchase.
(2) Purchases scheduled prior to May
15, 2010, with an effective issue date on
or after May 15, 2010. (i) Any
marketable security purchase scheduled
prior to May 15, 2010, and with an
effective issue date of May 15, 2010,
through July 9, 2010, will be treated as
a new purchase, even if the transaction
would have been treated as a
reinvestment under the rules in effect
prior to May 15, 2010.
(ii) Any marketable security purchase
scheduled prior to May 15, 2010, with
an effective issue date after July 9, 2010,
will be canceled.
*
*
*
*
*
■ 4. Revise § 363.205 to read as follows:
§ 363.205 How do I reinvest the proceeds
of a maturing security held in
TreasuryDirect ®?
(a) Method for reinvesting a maturing
security. The only method of reinvesting
a maturing marketable security in
TreasuryDirect ® is through the
automatic reinvestment option available
in your TreasuryDirect account.
Purchasing a security by directing that
the proceeds of a maturing security be
used to purchase a certificate of
indebtedness, and then scheduling the
purchase of a new security using the
redemption proceeds of the certificate of
indebtedness, is not a reinvestment.
(b) When a reinvestment can be
scheduled, edited, or canceled. You can
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Fmt 4700
Sfmt 4700
schedule your reinvestment either at the
time of purchase or after the security is
issued into your TreasuryDirect
account. You cannot schedule, edit, or
cancel a reinvestment when the
maturing security goes into a closed
book period, or when a noncompetitive
bid for the replacement security is no
longer accepted, whichever comes first.
(c) What securities can be reinvested.
Any marketable security can be
reinvested.
(d) Limits on scheduling
reinvestments. Reinvestments will be
limited at any one time to 25 times for
a 4-week bill, 7 times for a 13-week bill,
3 times for a 26-week bill, and once for
all other marketable security types.
(e) Canceling reinvestments. If there is
no security available for reinvestment
with an issue date that coincides with
the maturity date or call date, if
invoked, of the maturing security, and
with the same type and term, the
scheduled reinvestment will be
canceled and the proceeds of the
maturing security will be returned to the
customer.
(f) Procedure if there are insufficient
funds from the maturing security to pay
the full purchase price of the
replacement security. If there are
insufficient funds from the maturing
security to pay the full purchase price
of the replacement security, we will
either debit your primary account at a
financial institution or pay the
additional funds using the redemption
proceeds of your certificate of
indebtedness.
(1) Debit from primary account at
financial institution. If the maturing
security is purchased on or after May
15, 2010, we will pay the additional
funds by a debit from your primary
account at a financial institution if the
maturing security was purchased within
TreasuryDirect by a debit from a
financial institution account or if the
maturing security was received through
a transfer. If we are unable to obtain
sufficient funds from your primary
account at a financial institution, the
reinvestment will be canceled and we
will refund the proceeds of the maturing
security.
(2) Withdrawal of funds from
certificate of indebtedness. If the
maturing security is purchased on or
after May 15, 2010, we will pay the
additional funds using the redemption
proceeds of your certificate of
indebtedness if the purchase of the
maturing security was made using the
certificate of indebtedness. If the
amount available from a redemption of
the certificate of indebtedness is
insufficient to pay the additional
amount, the reinvestment will be
E:\FR\FM\11MYR1.SGM
11MYR1
Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Rules and Regulations
canceled and we will refund the
proceeds of the maturing security.
(3) Special rules if the maturing
security was purchased prior to May 15,
2010. If the maturing security was
purchased within TreasuryDirect or
received through a transfer prior to May
15, 2010, we will debit your primary
account at a financial institution for the
additional funds. If we are unable to
obtain sufficient funds from your
primary account at a financial
institution, the reinvestment will be
canceled and we will refund the
proceeds of the maturing security
■ 5. Revise § 363.210 to read as follows:
§ 363.210 Is there any period of time
during which I will be unable to process
certain transactions regarding my security?
A closed book period will be in effect
for four business days prior to the date
a marketable security interest and/or
redemption payment is made. During
the closed book period, you cannot
change the registration of the security,
change the payment destination of the
proceeds, change the view or
transaction rights, make transfers,
initiate a SellDirect ® transaction, or
schedule, edit, or cancel a reinvestment.
We will hold transactions requiring
submission of a form for processing
until the closed book period ends. If the
security entered the closed book period
due to a scheduled interest payment, we
will delay until after the closed book
period any SellDirect requests
scheduled but not processed prior to the
closed book period. If the security
entered the closed book period due to a
maturity payment, we will cancel
SellDirect requests scheduled but not
processed prior to the closed book
period.
and marine parades in the Captain of
the Port Detroit zone from 8 a.m. on
June 25, 2010 through 8 p.m. on July 25,
2010. This action is necessary and
intended to ensure safety of life on the
navigable waters immediately prior to,
during, and immediately after regattas
or marine parades. This rule will
establish restrictions upon, and control
movement of, vessels in specified areas
immediately prior to, during, and
immediately after regattas or marine
parades. During the enforcement
periods, no person or vessel may enter
the regulated areas without permission
of the Captain of the Port.
DATES: The regulations in 33 CFR part
100 will be enforced as listed below
under the subject heading
SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this notice, call
or e-mail Commander Joseph Snowden,
Prevention, U.S. Coast Guard Sector
Detroit, 110 Mount Elliot Ave., Detroit
MI, 48207; telephone (313)-568–9508, email Joseph.H.Snowden@uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the following
regulated areas, listed in three separate
sections of 33 CFR part 100, which were
published in the July 18, 2008 issue of
the Federal Register. (73 FR 41263,
41264):
§ 100.914 Trenton Rotary Roar on the
River, Trenton, MI.
This regulation is effective from 12
p.m. on July 23, 2010 until 8 p.m. on
July 25, 2010. This regulation will be
enforced from 12 p.m. to 6 p.m. on July
23, 2010; and from 8 a.m. to 8 p.m. on
July 24 and 25, 2010.
26091
Captain of the Port Detroit, or his
designated on-scene representative.
These regulated areas are closed to all
vessel traffic, except as may be
permitted by the Captain of the Port
Detroit or his designated on-scene
representative.
The ‘‘on-scene representative’’ of the
Captain of the Port is any Coast Guard
commissioned, warrant, or petty officer
who has been designated by the Captain
of the Port to act on his behalf. The onscene representative of the Captain of
the Port will be aboard either a Coast
Guard or Coast Guard Auxiliary vessel.
The Captain of the Port or his
designated on scene representative may
be contacted via VHF Channel 16.
Vessel operators desiring to enter or
operate within the regulated area shall
contact the Captain of the Port Detroit
or his on-scene representative to obtain
permission.
Vessel operators given permission to
enter or operate in the regulated area
must comply with all directions given to
them by the Captain of the Port or his
on-scene representative.
Dated: April 22, 2010.
E. J. Marohn,
Commander, U.S. Coast Guard, Acting
Captain of the Port Detroit.
[FR Doc. 2010–11081 Filed 5–10–10; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 147
[Docket No. USCG–2010–0337]
§ 100.915 St. Clair River Classic Offshore
Race, St. Clair, MI.
RIN 1625–AA00
BILLING CODE 4810–39–P
This regulation is effective from 11
a.m. on July 23, 2010 until 6 p.m. on
July 25, 2010. This regulation will be
enforced daily from 11 a.m. to 6 p.m. on
July 23, 24, and 25, 2010.
Safety Zone; Riser for DEEPWATER
HORIZON at Mississippi Canyon 252
Outer Continental Shelf MODU in the
Gulf of Mexico
DEPARTMENT OF HOMELAND
SECURITY
§ 100.919 International Bay City River
Roar, Bay City, MI.
Coast Guard
This regulation is effective from 8
a.m. on June 25, 2010 until 6 p.m. on
June 28, 2010. This regulation will be
enforced from 8 a.m. to 6 p.m. on June
25; and from 9 a.m. to 6 p.m. on June
26 and 27, 2010. In the case of
inclement weather on June 27, 2010,
this regulation will also be enforced
from 9 a.m. to 6 p.m. on June 28, 2010.
In accordance with the general
regulations in § 100.901 of this part,
entry into, transiting, or anchoring
within these regulated areas is
prohibited unless authorized by the
Richard L. Gregg,
Acting Fiscal Assistant Secretary.
[FR Doc. 2010–11141 Filed 5–10–10; 8:45 am]
33 CFR Part 100
[Docket No. USCG–2010–0312]
jlentini on DSKJ8SOYB1PROD with RULES
Regattas and Marine Parades; Great
Lakes Annual Marine Events
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
SUMMARY: The Coast Guard will enforce
the local regulations for annual regattas
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16:21 May 10, 2010
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Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is
establishing a safety zone around the
riser for the DEEPWATER HORIZON, a
Mobile Offshore Drilling Unit (MODU),
at Mississippi Canyon 252 in the Outer
Continental Shelf. The safety zone is
needed to protect personnel involved in
oil pollution response efforts. Placing a
safety zone around the riser will
significantly reduce the threat of
collisions, oil spills, and releases of
natural gas, and thereby protect the
safety of life, property, and the
environment. Oil response efforts are
E:\FR\FM\11MYR1.SGM
11MYR1
Agencies
[Federal Register Volume 75, Number 90 (Tuesday, May 11, 2010)]
[Rules and Regulations]
[Pages 26089-26091]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11141]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Securities Held in TreasuryDirect
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: TreasuryDirect[supreg] is an account-based, book-
entry, online system for purchasing, holding, and conducting
transactions in Treasury securities. This final rule benefits
TreasuryDirect[supreg] customers by simplifying the
procedures for advance scheduling of marketable Treasury security
purchases, enhancing the process of scheduling reinvestments of
marketable Treasury securities, and improving the procedures when the
proceeds of the maturing security are insufficient to pay for a new
security.
DATES: Effective Date: May 15, 2010.
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, 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.sharp@bpd.treas.gov>.
SUPPLEMENTARY INFORMATION:
TreasuryDirect[supreg] is an online, account-based
system for individuals and entities to purchase, hold, and conduct
transactions in eligible Treasury securities. This final rule makes
changes to the procedures for purchasing and reinvesting marketable
Treasury securities.
TreasuryDirect[supreg] currently allows a customer to
schedule a marketable security purchase up to five years in advance.
Because the auction schedule for marketable Treasury securities cannot
be predicted with certainty that far in advance, some scheduled
security purchases must be canceled when no matching security is
available at that time. This final rule limits the advance scheduling
of new purchases of marketable securities. One day each week,
marketable securities that are scheduled for auction within 8 weeks
will be made available on the TreasuryDirect[supreg] Web
site for scheduling a purchase. These securities are the only
marketable securities available for advance purchase. Marketable
security purchases scheduled before May 15, 2010, to take effect after
July 9, 2010, will be canceled.
Treasury is streamlining the procedures for reinvesting marketable
Treasury securities purchased and held in
TreasuryDirect[supreg]. Prior to the effective date of this
rule, a customer was required to take several steps to reinvest a
marketable security. First, the customer had to determine the date that
the security matured, then direct that the proceeds of the maturing
security be used to purchase a certificate of indebtedness, and then
schedule a new purchase to coincide with the maturity date of the
original security, with the payment for the new security being made
using the redemption proceeds of the certificate of indebtedness. Any
purchase of a marketable security in which the payment was made through
the redemption proceeds of the customer's certificate of indebtedness
was treated as a reinvestment. The new procedure will streamline the
reinvestment process by permitting the customer to schedule automatic
reinvestments without requiring the customer to calculate dates and
schedule purchases. Reinvestments will be limited at any one time to 25
times for a 4-week bill, 7 times for a 13-week bill, 3 times for a 26-
week bill, and once for all other marketable security types. The
customer can schedule a reinvestment either at the time of purchase or
after the security is issued into the account. However, the customer
cannot schedule, edit, or cancel a reinvestment when the maturing
security goes into a closed book period, or when a noncompetitive bid
for the replacement security is no longer accepted, whichever comes
first. Because of the changes made to the reinvestment process, any
marketable security purchase scheduled prior to the effective date of
this rule, and with an effective issue date on or after the effective
date of this rule (except for purchases scheduled to take effect after
July 9, 2010, which, as noted above, will be canceled), will be treated
as a new purchase, even if the transaction would have been treated as a
reinvestment prior to this rule.
In addition, the procedure is changing whenever there are
insufficient funds from the maturing security to pay the full purchase
price of the replacement security. Previously, in that event,
TreasuryDirect[supreg] would cancel the transaction. This
final rule provides that, in the event that the proceeds of the
maturing security are insufficient to pay the full purchase price of
the replacement security, the additional amount will be paid by either
debiting the customer's primary account at a financial institution or
by using the redemption proceeds from the customer's certificate of
indebtedness. The source for the additional funds depends on how the
maturing security was acquired. If the maturing security was purchased
within TreasuryDirect[supreg] prior to the effective date of
this rule, or purchased after the effective date of this rule and the
source of the funds to purchase the security was a debit from a
financial institution account, or if the maturing security was received
through a transfer, then the customer's primary account at a financial
institution will be debited for the additional amount. If there are
insufficient funds in the customer's primary account at a financial
institution, the reinvestment will be canceled. If the maturing
security was purchased after the effective date of this rule using
redemption proceeds from the customer's certificate of indebtedness,
then a redemption from the customer's certificate of indebtedness will
be made for the additional funds. If the amount available for
redemption from the certificate of indebtedness is insufficient to pay
the additional amount, the reinvestment will be canceled.
Procedural Requirements
Executive Order 12866. This rule is not a significant regulatory
action pursuant to Executive Order 12866.
Administrative Procedure Act (APA). Because this rule relates to
United States securities, which are contracts between Treasury and the
owner of the security, this rule falls within the contract exception to
the APA, 5 U.S.C. 553(a)(2). As a result, the notice, public comment,
and delayed effective date provisions of the APA are inapplicable to
this rule.
Regulatory Flexibility Act. The provisions of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., do not apply to this rule
because, pursuant to 5 U.S.C. 553(a)(2), it is not required to be
issued with notice and opportunity for public comment.
[[Page 26090]]
Paperwork Reduction Act (PRA). There is no new collection of
information contained in this final rule that would be subject to the
PRA, 44 U.S.C. 3501 et seq. Under the PRA, an agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a valid OMB control number. The Office
of Management and Budget already has approved all collections of
information in 31 CFR part 363 under OMB control number 1535-0138.
Congressional Review Act (CRA). This rule is not a major rule
pursuant to the CRA, 5 U.S.C. 801 et seq., because it is a minor
amendment that requires less reporting, and is not anticipated to have
any effect on investors; therefore, it is not expected to lead to any
of the results listed in 5 U.S.C. 804(2). This rule may take immediate
effect after we submit a copy of it to Congress.
List of Subjects in 31 CFR Part 363
Bonds, Electronic funds transfer, Federal Reserve system,
Government securities, Securities.
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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
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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.
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2. Amend Sec. 363.6 by:
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a. Adding the definition of ``Closed book period'' and ``Reinvestment''
in alphabetical order; and
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b. Revising the definition of ``Owner,'' to read as follows:
Sec. 363.6 What special terms do I need to know to understand this
part?
* * * * *
Closed book period means a period of four business days prior to
the date a scheduled marketable security interest and/or maturity
payment is made, during which time certain transactions will be delayed
until after the closed book period is completed. (See Sec. 363.210.)
* * * * *
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 a minor linked account, the owner is the minor; when referring to an
entity, the owner is the entity.
* * * * *
Reinvestment means using the redemption proceeds of a maturing
marketable security to purchase a new marketable security of the same
type and term, using the automatic reinvestment option available in
TreasuryDirect.
* * * * *
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3. Amend Sec. 363.202 by revising paragraph (a) to read as follows:
Sec. 363.202 What marketable Treasury securities may I purchase and
hold through my TreasuryDirect [supreg] account?
(a) Purchase. (1) Advance purchase. You may purchase any marketable
Treasury security that is available for purchase through the
TreasuryDirect [supreg] website. One day each week, marketable
securities that are scheduled for auction within 8 weeks will be made
available on the TreasuryDirect website for scheduling an advance
purchase, and are the only marketable securities that you can schedule
for advance purchase.
(2) Purchases scheduled prior to May 15, 2010, with an effective
issue date on or after May 15, 2010. (i) Any marketable security
purchase scheduled prior to May 15, 2010, and with an effective issue
date of May 15, 2010, through July 9, 2010, will be treated as a new
purchase, even if the transaction would have been treated as a
reinvestment under the rules in effect prior to May 15, 2010.
(ii) Any marketable security purchase scheduled prior to May 15,
2010, with an effective issue date after July 9, 2010, will be
canceled.
* * * * *
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4. Revise Sec. 363.205 to read as follows:
Sec. 363.205 How do I reinvest the proceeds of a maturing security
held in TreasuryDirect [supreg]?
(a) Method for reinvesting a maturing security. The only method of
reinvesting a maturing marketable security in TreasuryDirect [supreg]
is through the automatic reinvestment option available in your
TreasuryDirect account. Purchasing a security by directing that the
proceeds of a maturing security be used to purchase a certificate of
indebtedness, and then scheduling the purchase of a new security using
the redemption proceeds of the certificate of indebtedness, is not a
reinvestment.
(b) When a reinvestment can be scheduled, edited, or canceled. You
can schedule your reinvestment either at the time of purchase or after
the security is issued into your TreasuryDirect account. You cannot
schedule, edit, or cancel a reinvestment when the maturing security
goes into a closed book period, or when a noncompetitive bid for the
replacement security is no longer accepted, whichever comes first.
(c) What securities can be reinvested. Any marketable security can
be reinvested.
(d) Limits on scheduling reinvestments. Reinvestments will be
limited at any one time to 25 times for a 4-week bill, 7 times for a
13-week bill, 3 times for a 26-week bill, and once for all other
marketable security types.
(e) Canceling reinvestments. If there is no security available for
reinvestment with an issue date that coincides with the maturity date
or call date, if invoked, of the maturing security, and with the same
type and term, the scheduled reinvestment will be canceled and the
proceeds of the maturing security will be returned to the customer.
(f) Procedure if there are insufficient funds from the maturing
security to pay the full purchase price of the replacement security. If
there are insufficient funds from the maturing security to pay the full
purchase price of the replacement security, we will either debit your
primary account at a financial institution or pay the additional funds
using the redemption proceeds of your certificate of indebtedness.
(1) Debit from primary account at financial institution. If the
maturing security is purchased on or after May 15, 2010, we will pay
the additional funds by a debit from your primary account at a
financial institution if the maturing security was purchased within
TreasuryDirect by a debit from a financial institution account or if
the maturing security was received through a transfer. If we are unable
to obtain sufficient funds from your primary account at a financial
institution, the reinvestment will be canceled and we will refund the
proceeds of the maturing security.
(2) Withdrawal of funds from certificate of indebtedness. If the
maturing security is purchased on or after May 15, 2010, we will pay
the additional funds using the redemption proceeds of your certificate
of indebtedness if the purchase of the maturing security was made using
the certificate of indebtedness. If the amount available from a
redemption of the certificate of indebtedness is insufficient to pay
the additional amount, the reinvestment will be
[[Page 26091]]
canceled and we will refund the proceeds of the maturing security.
(3) Special rules if the maturing security was purchased prior to
May 15, 2010. If the maturing security was purchased within
TreasuryDirect or received through a transfer prior to May 15, 2010, we
will debit your primary account at a financial institution for the
additional funds. If we are unable to obtain sufficient funds from your
primary account at a financial institution, the reinvestment will be
canceled and we will refund the proceeds of the maturing security
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5. Revise Sec. 363.210 to read as follows:
Sec. 363.210 Is there any period of time during which I will be
unable to process certain transactions regarding my security?
A closed book period will be in effect for four business days prior
to the date a marketable security interest and/or redemption payment is
made. During the closed book period, you cannot change the registration
of the security, change the payment destination of the proceeds, change
the view or transaction rights, make transfers, initiate a SellDirect
[supreg] transaction, or schedule, edit, or cancel a reinvestment. We
will hold transactions requiring submission of a form for processing
until the closed book period ends. If the security entered the closed
book period due to a scheduled interest payment, we will delay until
after the closed book period any SellDirect requests scheduled but not
processed prior to the closed book period. If the security entered the
closed book period due to a maturity payment, we will cancel SellDirect
requests scheduled but not processed prior to the closed book period.
Richard L. Gregg,
Acting Fiscal Assistant Secretary.
[FR Doc. 2010-11141 Filed 5-10-10; 8:45 am]
BILLING CODE 4810-39-P