Securities Held in Treasury Direct, 70814-70817 [2010-28853]

Download as PDF 70814 Federal Register / Vol. 75, No. 223 / Friday, November 19, 2010 / Rules and Regulations Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: ■ PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: ■ Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by removing Airworthiness Directive (AD) 2009–23–51, Amendment 39–16190 (75 FR 5684, dated February 4, 2010), and by adding a new AD to read as follows: ■ srobinson on DSKHWCL6B1PROD with RULES 2010–24–04 Sikorsky Aircraft Corporation: Amendment 39–16522; Docket No. FAA–2010–1136; Directorate Identifier 2010–SW–069–AD. Supersedes AD 2009–23–51; Amendment 39–16190; Docket No. FAA–2010–0066; Directorate Identifier 2009–SW–52–AD. Applicability: Model S–92A helicopters, with main gearbox (MGB) assembly, part number (P/N) 92351–15000–042, –043, or –044, with MGB housing, P/N 92351–15110– 042, –043, –044, –045, or –046, installed, certificated in any category. Compliance: Required as indicated. To prevent loss of an MGB and subsequent loss of control of the helicopter, do the following: (a) Within 10 hours time-in-service (TIS), unless accomplished previously, and thereafter at intervals not to exceed 10 hours TIS, clean and inspect each MGB assembly mounting foot pad and rib for a crack and corrosion in the area depicted in Figure 1 and as shown in the examples in Figures 2, 3, and 4 of Sikorsky Alert Service Bulletin No. 92– 63–020, dated September 11, 2009 (ASB). If no crack is found, apply the corrosion preventive compound to each foot pad and rib area. Note 1: When conducting a visual inspection, use a bright, non-LED light. (1) If you find a crack, replace the MGB before further flight. (2) If you find corrosion, bubbled paint, or paint discoloration, before further flight, repair the affected area. Note 2: Even though MGB assembly, P/N 92351–15000–044, with MGB housing, P/N 92351–15110–046, is not included in the ASB, following the Accomplishment Instructions in the ASB accomplishes the intent of this AD. (b) To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Contact the Manager, Boston Aircraft Certification Office, ATTN: Michael Schwetz, Aviation Safety Engineer, 12 New England Executive Park, Burlington, MA 01803, telephone (781) 238–7761, fax (781) 238– 7170, for information about previously approved alternative methods of compliance. VerDate Mar<15>2010 13:20 Nov 18, 2010 Jkt 223001 (c) The Joint Aircraft System/Component (JASC) Code is 6320: Main Rotor Gearbox. (d) Do the inspections by following the specified portions of Sikorsky Alert Service Bulletin No. 92–63–020, dated September 11, 2009. The Director of the Federal Register approved this incorporation by reference under 5 U.S.C. 552(a) and 1 CFR part 51 as of February 19, 2010 (75 FR 5684, February 4, 2010). Copies may be obtained from Sikorsky Aircraft Corporation, Attn: Manager, Commercial Technical Support, mailstop s581a, 6900 Main Street, Stratford, CT, telephone (203) 383–4866, e-mail address tsslibrary@sikorsky.com, or at http:// www.sikorsky.com. Copies may be inspected at the FAA, Office of the Regional Counsel, Southwest Region, 2601 Meacham Blvd., Room 663, Fort Worth, Texas, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal_register/code_of_ federal_regulations/ibr_locations.html. (e) This amendment becomes effective on December 6, 2010. a. In the fourth row, ‘‘§ 1206.52(c)(2)’’ should read ‘‘§ 1206.52(c)(2)(i)’’. b. In the 11th row, ‘‘§ 1206.53(e)(5) two times’’ should read ‘‘§ 1206.52(e)(5) two times’’. c. In both the 15th and 16th rows, ‘‘§ 1206.52(c) introductory text’’ should read ‘‘§ 1206.53(c) introductory text’’. 2. On page 61071, in the table, in the third column ‘‘And adding in its place:’’: a. In the 18th row from the bottom of the page, ‘‘part 207’’ should read ‘‘part 1207.’’ b. In the seventh row from the bottom of the page, the blank entry should read ‘‘ONRR.’’ 3. On page 61072, in the table, in the third column ‘‘And adding in its place:’’, in the 22nd row, the blank entry should read ‘‘§ 1206.111’’. 4. On page 61073, in the table, in the third column ‘‘And adding in its place:’’, in the 16th row, ‘‘Associate Director’’ should read ‘‘Director’’. Issued in Fort Worth, Texas, on November 9, 2010. Kim Smith, Manager, Rotorcraft Directorate, Aircraft Certification Service. PART 1208—SALE OF FEDERAL ROYALTY OIL [CORRECTED] [FR Doc. 2010–29201 Filed 11–18–10; 8:45 am] 5. On page 61081, in the table, in the third column ‘‘And adding in its place:’’: a. In the first row, ‘‘§ 208.8(a)’’ should read ‘‘§ 1208.8(a)’’. b. In the fifth row, ‘‘§ 208.7(g)’’ should read ‘‘§ 1208.7(g)’’. BILLING CODE 4910–13–P DEPARTMENT OF THE INTERIOR Amendment Table for Part 1208 [Corrected] Bureau of Ocean Energy Management, Regulation, and Enforcement [FR Doc. C1–2010–24721 Filed 11–18–10; 8:45 am] 30 CFR Parts 201, 202, 203, 204, 206, 207, 208, 210, 212, 217, 218, 219, 220, 227, 228, 229, 241, 243, and 290 DEPARTMENT OF THE TREASURY Office of Natural Resources Revenue 30 CFR Parts 1201, 1202, 1203, 1204, 1206, 1207, 1208, 1210, 1212, 1217, 1218, 1219, 1220, 1227, 1228, 1229, 1241, 1243, and 1290 [Docket No. MMS–2010–MRM–0033] RIN 1010–AD70 Correction In rule document 2010–24721 beginning on page 61051 in the issue of Monday, October 4, 2010, make the following corrections: PART 1206—PRODUCT VALUATION [CORRECTED] Amendment Table for Part 1206 [Corrected] 1. On page 61070, in the table, in the first column ‘‘Amend’’: Frm 00004 Fmt 4700 Fiscal Service 31 CFR Part 363 Securities Held in Treasury Direct Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. AGENCY: Treasury is enhancing TreasuryDirect to permit automatic purchases of savings bonds through a payroll savings plan. DATES: Effective date: November 19, 2010. SUMMARY: Reorganization of Title 30, Code of Federal Regulations PO 00000 BILLING CODE 1505–01–D Sfmt 4700 You can download this Final Rule at the following Internet addresses: http:\\www.publicdebt.treas.gov, http:\\www.gpo.gov, or http:\\www.regulations.gov. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Elisha Whipkey, Director, Division of Program Administration, Office of Retail Securities, Bureau of the Public Debt, at E:\FR\FM\19NOR1.SGM 19NOR1 Federal Register / Vol. 75, No. 223 / Friday, November 19, 2010 / Rules and Regulations srobinson on DSKHWCL6B1PROD with RULES (304) 480–6319 or elisha.whipkey@bpd.treas.gov. Susan Sharp, Attorney-Adviser, Ann Fowler, 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: United States Savings Bonds are nonmarketable Treasury securities which have been sold continuously since March 1935. Savings bonds were introduced as a means of encouraging broad public participation in government financing by making Treasury securities available in small denominations specially tailored to the small investor. Today, savings bonds continue to be an important savings and investment tool for individuals, and Treasury is committed to offering savings bonds to the public as efficiently as possible. In order to reduce costs, enhance customer service, and minimize environmental impact, Treasury is discontinuing the issuance of definitive (paper) savings bonds through payroll savings plans. In order to provide a more efficient, electronic, automatic method for the purchase of savings bonds through payroll savings, Treasury is enhancing its TreasuryDirect system by adding a payroll savings function. TreasuryDirect is an online account system in which investors may hold and conduct transactions in eligible bookentry Treasury securities. The new payroll savings function will permit employees, through their employer or a financial institution, to credit funds on a recurring basis to purchase a payroll zero-percent certificate of indebtedness. When the payroll zero-percent certificate of indebtedness balance is sufficient, a savings bond will be automatically purchased in the amount, series, and registration previously selected by the employee. 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 VerDate Mar<15>2010 13:20 Nov 18, 2010 Jkt 223001 70815 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. 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 is expected to decrease costs for employers participating in a payroll savings plan; therefore, this rule 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 and the Comptroller General. periodic ACH credits from your employer or financial institution to purchase a payroll zero-percent certificate of indebtedness until a sufficient amount of payroll zeropercent certificate of indebtedness is accumulated to enable the purchase of a savings bond in an amount, series, and registration that you previously selected using functionality in your TreasuryDirect account. (See also the definition of payroll zero-percent certificate of indebtedness.) Payroll Zero-Percent Certificate of Indebtedness is a restricted form of the zero-percent certificate of indebtedness that is held separately from the zeropercent certificate of indebtedness and used only for purchases made through the payroll savings plan. (See also the definition for zero-percent certificate of indebtedness.) * * * * * Zero-Percent Certificate of Indebtedness is a one-day, non-interestbearing security that automatically matures and is rolled over each day until you request that it be redeemed. ■ 6. Add § 363.30 to read as follows: 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: § 363.30 What actions may Treasury take if funds used to purchase a security were credited or debited in error or through fraud? 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 removing the definition of ‘‘Certificate of indebtedness’’. ■ 3. In Part 363, revise all references to ‘‘certificate of indebtedness’’ to read ‘‘zero-percent certificate of indebtedness’’ wherever they appear. ■ 4. In Part 363, revise all references to ‘‘certificates of indebtedness’’ to read ‘‘zero-percent certificates of indebtedness’’ wherever they appear. ■ 5. Amend § 363.6 by adding definitions of ‘‘Payroll Savings Plan,’’ ‘‘Payroll Zero-Percent Certificate of Indebtedness,’’ and ‘‘Zero-Percent Certificate of Indebtedness’’ in alphabetical order to read as follows: ■ § 363.6 Definitions. * * * * * Payroll Savings Plan is a method for the purchase of savings bonds using PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 (a) If Treasury sustains a loss because the funds used to purchase a security were debited from an account at a financial institution from which the TreasuryDirect account owner did not have the right to authorize such ACH debit entry, we reserve the right to redeem that security from the account and use the proceeds to reimburse Treasury for the loss. If such security has been transferred to another TreasuryDirect account, we reserve the right to reverse the transfer, redeem the security, and use the proceeds to reimburse Treasury for the loss. If such security has been redeemed or has matured and the proceeds paid to the account owner, we reserve the right to take any action that we deem appropriate, including redeeming other securities remaining in the account and using the proceeds to reimburse Treasury for the loss. (b) If an employer or a third-party agent acting on behalf of one or more employers certifies, under penalty of perjury, that it has made an erroneous ACH credit entry to purchase a TreasuryDirect certificate of indebtedness, we reserve the right to redeem securities from the TreasuryDirect account to which the entry was made in the amount of the erroneous entry and return the funds. No action will be taken if the E:\FR\FM\19NOR1.SGM 19NOR1 70816 Federal Register / Vol. 75, No. 223 / Friday, November 19, 2010 / Rules and Regulations certification is not received by Treasury within 45 days of the erroneous entry. We will only return funds if the erroneous entry was made to an account that does not belong to the intended recipient, is a duplicate payment, is in an amount that is greater than was authorized by the recipient, or was made in error because the employee was not in a pay status. We reserve the right to refuse to return an entry. By requesting that Treasury correct an erroneous entry, the employer agrees to indemnify Treasury for any loss that Treasury may incur as a result of the correction of the error and agrees to provide such information and assistance as Treasury may require. (c) If a financial institution, except a financial institution acting on behalf of an employer, makes an erroneous ACH credit entry to a TreasuryDirect® account and provides a certification as to the circumstances of the erroneous entry within 6 months of the entry date, we will notify the account owner of the erroneous ACH credit entry and attempt to resolve the issue. We reserve the right to place a hold on and to redeem securities from the TreasuryDirect® account to which the ACH credit entry was made in the amount of the erroneous credit entry and return the funds to the financial institution. The financial institution agrees to indemnify Treasury for any loss that Treasury may incur as a result of the correction of the error and agrees to provide information and assistance as Treasury may require. ■ 7. Amend § 363.37 by revising paragraphs (b) and (c) and adding paragraph (d) to read as follows: § 363.37 How do I purchase and make payment for eligible Treasury securities through my TreasuryDirect® account? srobinson on DSKHWCL6B1PROD with RULES * * * * * (b) Payment for savings bonds and marketable Treasury securities. You can pay for eligible savings bonds and marketable Treasury securities by either a debit from your designated account at a United States financial institution using the ACH method, or by using the redemption proceeds of your zeropercent certificate of indebtedness. You can pay for savings bonds automatically using the redemption proceeds of your payroll zero-percent certificate of indebtedness through the payroll savings plan. (c) Payment for zero-percent certificate of indebtedness. You can pay for a zero-percent certificate of indebtedness by: (1) a credit from your financial institution or employer using the ACH method to your TreasuryDirect® account; VerDate Mar<15>2010 18:23 Nov 18, 2010 Jkt 223001 (2) a debit from your designated account at a financial institution using the ACH method, limited to $1000 or less per transaction; or (3) using the proceeds of maturing securities held in your TreasuryDirect® account. (d) Payment for a payroll zero-percent certificate of indebtedness. The only method available to purchase a payroll zero-percent certificate of indebtedness is to arrange for your employer or financial institution to send a credit by the ACH method to purchase a payroll zero-percent certificate of indebtedness in your TreasuryDirect® account. ■ 8. Amend § 363.45 by revising paragraph (f) to read as follows: payroll zero-percent certificate of indebtedness to purchase a savings bond in the amount, series, and registration that you selected, the TreasuryDirect® system will automatically redeem your payroll zeropercent certificate of indebtedness and purchase your selected savings bond. § 363.45 What are the rules for judicial and administrative actions involving securities held in TreasuryDirect®? Subpart D—Zero-Percent Certificate of Indebtedness * ■ * * * * (f) Internal Revenue Service (IRS) levy. We will honor an IRS notice of levy under section 6331 of the Internal Revenue Code: (1) Against the owner, as owner is defined in § 363.6 of this part, including a levy against the owner in the capacity of nominee, transferee, or alter ego; (2) Against a secondary owner, if the secondary owner has the right to conduct transactions in a security at the date and time the notice of levy is delivered to Public Debt; or (3) Against an owner’s property to which a federal tax lien is attached. * * * * * ■ 9. Add §§ 363.59 and 363.60 to read as follows: § 363.59 What is a payroll savings plan? A payroll savings plan is an automatic method of purchasing savings bonds. (See the definition in § 363.6.) You may open your payroll savings plan by selecting an amount, series, and registration for your savings bond purchases using functionality in your TreasuryDirect® account. Each bond purchase must be in a minimum amount of $25 with additional one-cent increments above that amount, up to a maximum amount of $5000, in any one transaction. The series may be either a Series EE or Series I savings bond. The registration may be any authorized form of registration for an electronic savings bond. You must also initiate a request to your employer or your financial institution to send credits on a recurring basis to your payroll savings plan through the ACH method to purchase a payroll zero-percent certificate of indebtedness. (See Subpart D for more information about a payroll zero-percent certificate of indebtedness.) When you have accumulated a sufficient amount of PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 § 363.60 How do I discontinue my participation in my payroll savings plan? You may discontinue your participation in your payroll savings plan by arranging with your employer or financial institution to discontinue sending funds. ■ 10. Revise the heading for Subpart D to read as follows: 11. Add an undesignated center heading prior to § 363.130, to read as follows: GENERAL 12. Amend § 363.131 by revising the first sentence and adding a fifth sentence to read as follows: ■ § 363.131 What is a TreasuryDirect® zeropercent certificate of indebtedness? A TreasuryDirect® zero-percent certificate of indebtedness is a noninterest-bearing security that is issued daily, with a one-day maturity, which automatically rolls over at maturity until you request redemption. * * * The payroll zero-percent certificate of indebtedness is a restricted form of the zero-percent certificate of indebtedness that is held separately from the zeropercent certificate of indebtedness and used only for purchases made through the payroll savings plan. § 363.143 ■ [Removed] 13. Remove § 363.143. §§ 363.138, 363.139, 363.140, 363.141, 363.142, 363.144, 363.145, 363.146 [Redesignated as §§ 363.141, 363.138, 363.142, 363.143, 363.144, 363.145, 363.139, and 363.140] 14. Redesignate §§ 363.138, 363.139, 363.140, 363.141, 363.142, 363.144, 363.145, 363.146 as §§ 363.141, 363.138, 363.142, 363.143, 363.144, 363.145, 363.139, and 363.140 respectively. ■ 15. Add an undesignated center heading prior to § 363.141 to read as follows: ■ ZERO-PERCENT CERTIFICATE OF INDEBTEDNESS 16. Revise newly redesignated § 363.141 to read as follows: ■ E:\FR\FM\19NOR1.SGM 19NOR1 Federal Register / Vol. 75, No. 223 / Friday, November 19, 2010 / Rules and Regulations § 363.141 How do I purchase a zeropercent certificate of indebtedness? § 363.147 How do I purchase a payroll zero-percent certificate of indebtedness? (a) Primary and linked accounts. You may purchase a zero-percent certificate of indebtedness through one or more of the following four methods: (1) Payroll deduction, in which your employer sends funds through the ACH method to your TreasuryDirect® account; (2) deposit by your financial institution, in which your financial institution sends funds by the ACH method to your TreasuryDirect® account on a recurring or one-time basis; (3) through the Buy Direct function of your TreasuryDirect® account, in which you direct us to debit funds from your financial institution account to purchase a zero-percent certificate of indebtedness. This method is limited to an amount no greater than $1000 per transaction. When you use the Buy Direct function to debit funds to purchase all or a portion of a zeropercent certificate of indebtedness, you will not be permitted to schedule a redemption to your financial institution from the zero-percent certificate of indebtedness within five business days after the settlement date of the debit entry; and (4) by using the proceeds from the redemption of a savings bond, the proceeds of a maturing security, or an interest payment from a security to purchase a zero-percent certificate of indebtedness. (b) Payroll savings plan. You may purchase a payroll zero-percent certificate of indebtedness for your payroll savings plan through payroll deduction, in which your employer sends funds through the ACH method to your TreasuryDirect® payroll savings plan, or through a credit using the ACH method by your financial institution, in which your financial institution sends funds by the ACH method to your TreasuryDirect® payroll savings plan. ■ 17. Amend the heading of the newly redesignated § 363.144 by removing the phrase ‘‘for cash.’’ ■ 19. Add an undesignated center heading after the newly redesignated § 363.145, to read as follows: You may purchase a payroll zeropercent certificate of indebtedness through your TreasuryDirect® account using your payroll savings plan. (See §§ 363.59 and 363.60 for more information on opening a payroll savings plan.) The only method of purchase for a payroll zero-percent certificate of indebtedness is a credit of funds from your employer or financial institution using the ACH method. You cannot purchase a payroll zero-percent certificate of indebtedness by using a debit from your financial institution. PAYROLL ZERO-PERCENT CERTIFICATE OF INDEBTEDNESS 20. Add §§ 363.146 through 363.148, to read as follows: srobinson on DSKHWCL6B1PROD with RULES ■ § 363.146 Who may purchase a payroll zero-percent certificate of indebtedness? Only an individual TreasuryDirect® account owner may purchase a payroll zero-percent certificate of indebtedness, only through his or her primary account, and only through the payroll savings plan. VerDate Mar<15>2010 18:23 Nov 18, 2010 Jkt 223001 § 363.148 Can I redeem all or a portion of my accumulated payroll zero-percent certificate of indebtedness? You may redeem all or a portion of your accumulated payroll zero-percent certificate of indebtedness to any financial institution that is of record in your TreasuryDirect® account. Richard L. Gregg, Fiscal Assistant Secretary. [FR Doc. 2010–28853 Filed 11–18–10; 8:45 am] BILLING CODE 4810–39–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2010–1039] Drawbridge Operation Regulation; Upper Mississippi River, Dubuque, IA Coast Guard, DHS. Notice of temporary deviation from regulations. AGENCY: ACTION: The Commander, Eighth Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the Illinois Central Railroad Drawbridge across the Upper Mississippi River, mile 579.9, at Dubuque, Iowa. The deviation is necessary to allow the bridge owner time to perform preventive maintenance that is essential to the continued safe operation of the drawbridge. Maintenance is scheduled in the winter and when there is less impact on navigation; instead of scheduling work in the summer, when river traffic increases. This deviation allows the bridge to open on signal if at least 24 hours advance notice is given. DATES: This deviation is effective from 12:01 a.m., December 13, 2010 to 7 a.m. March 1, 2011. ADDRESSES: Documents mentioned in this preamble as being available in the SUMMARY: PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 70817 docket are part of docket USCG–2010– 1039 and are available online by going to http://www.regulations.gov, inserting USCG–2010–1039 in the ‘‘Keyword’’ box and then clicking ‘‘Search’’. They are 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. If you have questions on this rule, call or e-mail Eric A. Washburn, Bridge Administrator, Coast Guard; telephone 314–269–2378, e-mail Eric.Washburn@uscg.mil. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202–366– 9826. FOR FURTHER INFORMATION CONTACT: The Chicago, Central & Pacific Railroad requested a temporary deviation for the Illinois Central Railroad Drawbridge, across the Upper Mississippi River, mile 579.9, at Dubuque, Iowa to open on signal if at least 24 hours advance notice is given for 79 days from 12:01 a.m., December 13, 2010 to 7 a.m., March 1, 2011 to allow the bridge owner time for preventive maintenance. The Illinois Central Railroad Drawbridge currently operates in accordance with 33 CFR 117.5, which states the general requirement that drawbridges shall open promptly and fully for the passage of vessels when a request to open is given in accordance with the subpart. There are no alternate routes for vessels transiting this section of the Upper Mississippi River. Winter conditions on the Upper Mississippi River coupled with the closure of Army Corps of Engineer’s Lock No. 20 (Mile 343.2 UMR), Lock No. 21 (Mile 324.9 UMR) and Lock No. 22 (Mile 301.2 UMR) until 4:30 p.m., March 4, 2011 will preclude any significant navigation demands for the drawspan opening. The Illinois Central Railroad Drawbridge, in the closed-to-navigation position, provides a vertical clearance of 19.9 feet above normal pool. Navigation on the waterway consists primarily of commercial tows and recreational watercraft. The drawbridge will open if at least 24 hours advance notice is given. This temporary deviation has been coordinated with waterway users. No objections were received. In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular SUPPLEMENTARY INFORMATION: E:\FR\FM\19NOR1.SGM 19NOR1

Agencies

[Federal Register Volume 75, Number 223 (Friday, November 19, 2010)]
[Rules and Regulations]
[Pages 70814-70817]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28853]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 363


Securities Held in Treasury Direct

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

ACTION: Final rule.

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SUMMARY: Treasury is enhancing TreasuryDirect to permit automatic 
purchases of savings bonds through a payroll savings plan.

DATES: Effective date: November 19, 2010.

ADDRESSES: You can download this Final Rule at the following Internet 
addresses: http:[bsol][bsol]www.publicdebt.treas.gov, 
http:[bsol][bsol]www.gpo.gov, or http:[bsol][bsol]www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Elisha Whipkey, Director, Division of 
Program Administration, Office of Retail Securities, Bureau of the 
Public Debt, at

[[Page 70815]]

(304) 480-6319 or elisha.whipkey@bpd.treas.gov.
    Susan Sharp, Attorney-Adviser, Ann Fowler, 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: United States Savings Bonds are non-
marketable Treasury securities which have been sold continuously since 
March 1935. Savings bonds were introduced as a means of encouraging 
broad public participation in government financing by making Treasury 
securities available in small denominations specially tailored to the 
small investor. Today, savings bonds continue to be an important 
savings and investment tool for individuals, and Treasury is committed 
to offering savings bonds to the public as efficiently as possible.
    In order to reduce costs, enhance customer service, and minimize 
environmental impact, Treasury is discontinuing the issuance of 
definitive (paper) savings bonds through payroll savings plans. In 
order to provide a more efficient, electronic, automatic method for the 
purchase of savings bonds through payroll savings, Treasury is 
enhancing its TreasuryDirect system by adding a payroll savings 
function. TreasuryDirect is an online account system in which investors 
may hold and conduct transactions in eligible book-entry Treasury 
securities. The new payroll savings function will permit employees, 
through their employer or a financial institution, to credit funds on a 
recurring basis to purchase a payroll zero-percent certificate of 
indebtedness. When the payroll zero-percent certificate of indebtedness 
balance is sufficient, a savings bond will be automatically purchased 
in the amount, series, and registration previously selected by the 
employee.

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.
    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 is expected to decrease costs for employers 
participating in a payroll savings plan; therefore, this rule 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 
and the Comptroller General.

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[supreg]

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.  363.6 by removing the definition of ``Certificate of 
indebtedness''.

0
3. In Part 363, revise all references to ``certificate of 
indebtedness'' to read ``zero-percent certificate of indebtedness'' 
wherever they appear.

0
4. In Part 363, revise all references to ``certificates of 
indebtedness'' to read ``zero-percent certificates of indebtedness'' 
wherever they appear.

0
5. Amend Sec.  363.6 by adding definitions of ``Payroll Savings Plan,'' 
``Payroll Zero-Percent Certificate of Indebtedness,'' and ``Zero-
Percent Certificate of Indebtedness'' in alphabetical order to read as 
follows:


Sec.  363.6  Definitions.

* * * * *
    Payroll Savings Plan is a method for the purchase of savings bonds 
using periodic ACH credits from your employer or financial institution 
to purchase a payroll zero-percent certificate of indebtedness until a 
sufficient amount of payroll zero-percent certificate of indebtedness 
is accumulated to enable the purchase of a savings bond in an amount, 
series, and registration that you previously selected using 
functionality in your TreasuryDirect account. (See also the definition 
of payroll zero-percent certificate of indebtedness.)
    Payroll Zero-Percent Certificate of Indebtedness is a restricted 
form of the zero-percent certificate of indebtedness that is held 
separately from the zero-percent certificate of indebtedness and used 
only for purchases made through the payroll savings plan. (See also the 
definition for zero-percent certificate of indebtedness.)
* * * * *
    Zero-Percent Certificate of Indebtedness is a one-day, non-
interest-bearing security that automatically matures and is rolled over 
each day until you request that it be redeemed.

0
6. Add Sec.  363.30 to read as follows:


Sec.  363.30  What actions may Treasury take if funds used to purchase 
a security were credited or debited in error or through fraud?

    (a) If Treasury sustains a loss because the funds used to purchase 
a security were debited from an account at a financial institution from 
which the TreasuryDirect account owner did not have the right to 
authorize such ACH debit entry, we reserve the right to redeem that 
security from the account and use the proceeds to reimburse Treasury 
for the loss. If such security has been transferred to another 
TreasuryDirect account, we reserve the right to reverse the transfer, 
redeem the security, and use the proceeds to reimburse Treasury for the 
loss. If such security has been redeemed or has matured and the 
proceeds paid to the account owner, we reserve the right to take any 
action that we deem appropriate, including redeeming other securities 
remaining in the account and using the proceeds to reimburse Treasury 
for the loss.
    (b) If an employer or a third-party agent acting on behalf of one 
or more employers certifies, under penalty of perjury, that it has made 
an erroneous ACH credit entry to purchase a TreasuryDirect certificate 
of indebtedness, we reserve the right to redeem securities from the 
TreasuryDirect account to which the entry was made in the amount of the 
erroneous entry and return the funds. No action will be taken if the

[[Page 70816]]

certification is not received by Treasury within 45 days of the 
erroneous entry. We will only return funds if the erroneous entry was 
made to an account that does not belong to the intended recipient, is a 
duplicate payment, is in an amount that is greater than was authorized 
by the recipient, or was made in error because the employee was not in 
a pay status. We reserve the right to refuse to return an entry. By 
requesting that Treasury correct an erroneous entry, the employer 
agrees to indemnify Treasury for any loss that Treasury may incur as a 
result of the correction of the error and agrees to provide such 
information and assistance as Treasury may require.
    (c) If a financial institution, except a financial institution 
acting on behalf of an employer, makes an erroneous ACH credit entry to 
a TreasuryDirect[supreg] account and provides a certification as to the 
circumstances of the erroneous entry within 6 months of the entry date, 
we will notify the account owner of the erroneous ACH credit entry and 
attempt to resolve the issue. We reserve the right to place a hold on 
and to redeem securities from the TreasuryDirect[supreg] account to 
which the ACH credit entry was made in the amount of the erroneous 
credit entry and return the funds to the financial institution. The 
financial institution agrees to indemnify Treasury for any loss that 
Treasury may incur as a result of the correction of the error and 
agrees to provide information and assistance as Treasury may require.

0
7. Amend Sec.  363.37 by revising paragraphs (b) and (c) and adding 
paragraph (d) to read as follows:


Sec.  363.37  How do I purchase and make payment for eligible Treasury 
securities through my TreasuryDirect[supreg] account?

* * * * *
    (b) Payment for savings bonds and marketable Treasury securities. 
You can pay for eligible savings bonds and marketable Treasury 
securities by either a debit from your designated account at a United 
States financial institution using the ACH method, or by using the 
redemption proceeds of your zero-percent certificate of indebtedness. 
You can pay for savings bonds automatically using the redemption 
proceeds of your payroll zero-percent certificate of indebtedness 
through the payroll savings plan.
    (c) Payment for zero-percent certificate of indebtedness. You can 
pay for a zero-percent certificate of indebtedness by:
    (1) a credit from your financial institution or employer using the 
ACH method to your TreasuryDirect[supreg] account;
    (2) a debit from your designated account at a financial institution 
using the ACH method, limited to $1000 or less per transaction; or
    (3) using the proceeds of maturing securities held in your 
TreasuryDirect[supreg] account.
    (d) Payment for a payroll zero-percent certificate of indebtedness. 
The only method available to purchase a payroll zero-percent 
certificate of indebtedness is to arrange for your employer or 
financial institution to send a credit by the ACH method to purchase a 
payroll zero-percent certificate of indebtedness in your 
TreasuryDirect[supreg] account.

0
8. Amend Sec.  363.45 by revising paragraph (f) to read as follows:


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

* * * * *
    (f) Internal Revenue Service (IRS) levy. We will honor an IRS 
notice of levy under section 6331 of the Internal Revenue Code:
    (1) Against the owner, as owner is defined in Sec.  363.6 of this 
part, including a levy against the owner in the capacity of nominee, 
transferee, or alter ego;
    (2) Against a secondary owner, if the secondary owner has the right 
to conduct transactions in a security at the date and time the notice 
of levy is delivered to Public Debt; or
    (3) Against an owner's property to which a federal tax lien is 
attached.
* * * * *

0
9. Add Sec. Sec.  363.59 and 363.60 to read as follows:


Sec.  363.59  What is a payroll savings plan?

    A payroll savings plan is an automatic method of purchasing savings 
bonds. (See the definition in Sec.  363.6.) You may open your payroll 
savings plan by selecting an amount, series, and registration for your 
savings bond purchases using functionality in your 
TreasuryDirect[supreg] account. Each bond purchase must be in a minimum 
amount of $25 with additional one-cent increments above that amount, up 
to a maximum amount of $5000, in any one transaction. The series may be 
either a Series EE or Series I savings bond. The registration may be 
any authorized form of registration for an electronic savings bond. You 
must also initiate a request to your employer or your financial 
institution to send credits on a recurring basis to your payroll 
savings plan through the ACH method to purchase a payroll zero-percent 
certificate of indebtedness. (See Subpart D for more information about 
a payroll zero-percent certificate of indebtedness.) When you have 
accumulated a sufficient amount of payroll zero-percent certificate of 
indebtedness to purchase a savings bond in the amount, series, and 
registration that you selected, the TreasuryDirect[supreg] system will 
automatically redeem your payroll zero-percent certificate of 
indebtedness and purchase your selected savings bond.


Sec.  363.60  How do I discontinue my participation in my payroll 
savings plan?

    You may discontinue your participation in your payroll savings plan 
by arranging with your employer or financial institution to discontinue 
sending funds.

0
10. Revise the heading for Subpart D to read as follows:

Subpart D--Zero-Percent Certificate of Indebtedness

0
11. Add an undesignated center heading prior to Sec.  363.130, to read 
as follows:
GENERAL

0
12. Amend Sec.  363.131 by revising the first sentence and adding a 
fifth sentence to read as follows:


Sec.  363.131  What is a TreasuryDirect[supreg] zero-percent 
certificate of indebtedness?

    A TreasuryDirect[supreg] zero-percent certificate of indebtedness 
is a non-interest-bearing security that is issued daily, with a one-day 
maturity, which automatically rolls over at maturity until you request 
redemption. * * * The payroll zero-percent certificate of indebtedness 
is a restricted form of the zero-percent certificate of indebtedness 
that is held separately from the zero-percent certificate of 
indebtedness and used only for purchases made through the payroll 
savings plan.


Sec.  363.143  [Removed]

0
13. Remove Sec.  363.143.


Sec. Sec.  363.138, 363.139, 363.140, 363.141, 363.142, 363.144, 
363.145, 363.146   [Redesignated as Sec. Sec.  363.141, 363.138, 
363.142, 363.143, 363.144, 363.145, 363.139, and 363.140]

0
14. Redesignate Sec. Sec.  363.138, 363.139, 363.140, 363.141, 363.142, 
363.144, 363.145, 363.146 as Sec. Sec.  363.141, 363.138, 363.142, 
363.143, 363.144, 363.145, 363.139, and 363.140 respectively.

0
15. Add an undesignated center heading prior to Sec.  363.141 to read 
as follows:
ZERO-PERCENT CERTIFICATE OF INDEBTEDNESS

0
16. Revise newly redesignated Sec.  363.141 to read as follows:

[[Page 70817]]

Sec.  363.141  How do I purchase a zero-percent certificate of 
indebtedness?

    (a) Primary and linked accounts. You may purchase a zero-percent 
certificate of indebtedness through one or more of the following four 
methods:
    (1) Payroll deduction, in which your employer sends funds through 
the ACH method to your TreasuryDirect[supreg] account;
    (2) deposit by your financial institution, in which your financial 
institution sends funds by the ACH method to your 
TreasuryDirect[supreg] account on a recurring or one-time basis;
    (3) through the Buy Direct function of your TreasuryDirect[supreg] 
account, in which you direct us to debit funds from your financial 
institution account to purchase a zero-percent certificate of 
indebtedness. This method is limited to an amount no greater than $1000 
per transaction. When you use the Buy Direct function to debit funds to 
purchase all or a portion of a zero-percent certificate of 
indebtedness, you will not be permitted to schedule a redemption to 
your financial institution from the zero-percent certificate of 
indebtedness within five business days after the settlement date of the 
debit entry; and
    (4) by using the proceeds from the redemption of a savings bond, 
the proceeds of a maturing security, or an interest payment from a 
security to purchase a zero-percent certificate of indebtedness.
    (b) Payroll savings plan. You may purchase a payroll zero-percent 
certificate of indebtedness for your payroll savings plan through 
payroll deduction, in which your employer sends funds through the ACH 
method to your TreasuryDirect[supreg] payroll savings plan, or through 
a credit using the ACH method by your financial institution, in which 
your financial institution sends funds by the ACH method to your 
TreasuryDirect[supreg] payroll savings plan.

0
17. Amend the heading of the newly redesignated Sec.  363.144 by 
removing the phrase ``for cash.''

0
19. Add an undesignated center heading after the newly redesignated 
Sec.  363.145, to read as follows:
PAYROLL ZERO-PERCENT CERTIFICATE OF INDEBTEDNESS

0
20. Add Sec. Sec.  363.146 through 363.148, to read as follows:


Sec.  363.146  Who may purchase a payroll zero-percent certificate of 
indebtedness?

    Only an individual TreasuryDirect[supreg] account owner may 
purchase a payroll zero-percent certificate of indebtedness, only 
through his or her primary account, and only through the payroll 
savings plan.


Sec.  363.147  How do I purchase a payroll zero-percent certificate of 
indebtedness?

    You may purchase a payroll zero-percent certificate of indebtedness 
through your TreasuryDirect[supreg] account using your payroll savings 
plan. (See Sec. Sec.  363.59 and 363.60 for more information on opening 
a payroll savings plan.) The only method of purchase for a payroll 
zero-percent certificate of indebtedness is a credit of funds from your 
employer or financial institution using the ACH method. You cannot 
purchase a payroll zero-percent certificate of indebtedness by using a 
debit from your financial institution.


Sec.  363.148  Can I redeem all or a portion of my accumulated payroll 
zero-percent certificate of indebtedness?

    You may redeem all or a portion of your accumulated payroll zero-
percent certificate of indebtedness to any financial institution that 
is of record in your TreasuryDirect[supreg] account.

Richard L. Gregg,
Fiscal Assistant Secretary.
[FR Doc. 2010-28853 Filed 11-18-10; 8:45 am]
BILLING CODE 4810-39-P