Public Debt Bureau June 2012 – Federal Register Recent Federal Regulation Documents

The Financial Management Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on a continuing information collection. By this notice, the Financial Management Service solicits comments concerning the ``Pools and AssociationsAnnual Letter.''

The Department of the Treasury (Treasury) is issuing this final rule to revise the regulations governing State and Local Government Series (SLGS) securities. SLGS securities are non-marketable Treasury securities that are only available for purchase by issuers of tax-exempt securities. Current financial market conditions have resulted in extraordinarily low yields in the secondary market for some marketable Treasury securities. As a result, rates applicable to non- marketable State and Local Government Series (SLGS) securities sold to issuers of tax-exempt securities could be negative. To prevent this, Treasury is instituting a floor on the daily SLGS rate, by amending the definition of ``SLGS rate'' and the definition of the ``annualized effective Demand Deposit rate'' for Demand Deposit SLGS securities. Additionally, Treasury is revising the definition of ``Y'' in the annualized effective Demand Deposit rate calculation formula to clarify the calculation method to be used during a year that contains a leap day.