Filetype PDF | Posted on 19 Sep 2022 | 3 years ago
Authentication
digital resources
139x Filetype PDF File size 0.16 MB Source: www.govinfo.gov
Fiscal Service, Treasury §363.6
maintained by Treasury for pur- finitive savings bond, or a book-entry
chasing, holding, and conducting per- security purchased through the
mitted transactions in eligible market- TreasuryDirect system, registered,
able Treasury securities as book-entry e.g., ‘‘John Doe SSN 123–45–6789 POD
products. The terms and conditions for (payable on death to) Joseph Doe SSN
the Legacy Treasury Direct system are 987–65–4321.
found at 31 CFR part 357, subpart C. Book-entry security means a Treasury
(c) Commercial book-entry system. The security maintained by us in electronic
commercial book-entry system is the or paperless form as a computer record.
book-entry system in which Treasury Business day means any day that
securities are held in a tiered system funds may be settled through ACH.
through securities intermediaries such Certificate of Indebtedness is a one-day
as financial institutions or brokerage non-interest-bearing security held
firms. The regulations governing the within your primary or linked account,
commercial book-entry system are including a minor account for which
found at 31 CFR part 357, subpart B, you are the custodian, that automati-
and may be referred to in that part as cally matures and is rolled over each
day until you request that it be re-
Treasury/Reserve Automated Debt
Entry System (TRADES). deemed.
[70 FR 57442, Sept. 30, 2005] Commercial book-entry system refers to
the book-entry system in which you
§363.5 How do I contact Public Debt? hold your Treasury securities in a
(a) You may use the ‘‘Contact Us’’ tiered system through securities inter-
feature within TreasuryDirect® to mediaries such as financial institutions
communicate information to us over a or brokerage firms. (See §363.4.)
secure Internet connection. Court means a court of law with ju-
(b) Emails may be sent to: treas- risdiction over the parties and the sub-
ury.direct@bpd.treas.gov. We will reply ject matter.
by e-mail unless you request otherwise. Conversion account means a linked ac-
We are not responsible for the security count in TreasuryDirect that contains
of e-mail messages you may send to us, only savings bonds that have been con-
or replies we may send to you. verted from definitive bonds to book-
(c) Letters should be addressed to the entry bonds.
address provided on our web site at Converted savings bond means a sav-
http://www.treasurydirect.gov/write.htm. ings bond originally issued as a defini-
tive bond that has been surrendered to
[67 FR 64286, Oct. 17, 2002, as amended at 70 us and converted to a book-entry sav-
FR 57442, Sept. 30, 2005; 74 FR 19416, Apr. 29, ings bond to be maintained by Treas-
2009] ury solely as a computer record.
§363.6 What special terms do I need to Converting coowner is the coowner
know to understand this part? who initiates and completes the trans-
action to convert a definitive savings
Account means a TreasuryDirect® ac- bond to a book-entry bond through his
count as described in §363.10. or her TreasuryDirect account.
Authentication means confirming that Coowner means either of the persons
the person accessing a TreasuryDirect named in the registration of a defini-
account is the same person whose iden- tive or a converted definitive savings
tity was initially verified at account bond, registered, e.g., ‘‘John Doe SSN
establishment. 123–45–6789 or Joseph Doe.’’
Automated Clearing House (ACH) Custodian of a minor account means a
means a funds transfer system gov- person who opens an account on behalf
erned by the Rules of the National of the minor. (See §363.27 for more in-
Automated Clearing House Association formation about minor accounts.)
(NACHA). NACHA provides for the Custom account means an account
interbank clearing of electronic entries that you establish for a specific pur-
for participating financial institutions. pose that is linked to your primary ac-
Beneficiary refers to the second indi- count. You use your primary account
vidual named in the registration of a as the portal to open and access your
definitive savings bond, a converted de- custom linked account. (See §363.10 for
483
erowe on DSK5CLS3C1PROD with CFRVerDate Nov<24>2008 11:53 Aug 13, 2009Jkt 217122PO 00000 Frm 00493 Fmt 8010 Sfmt 8010 Y:\SGML\217122.XXX 217122
§363.6 31 CFR Ch. II (7–1–09 Edition)
more information about custom ac- Interest on a savings bond means the
counts.) difference between the purchase price
Definitive security means a Treasury and the redemption value of the bond.
security held in paper form. Legacy Treasury Direct system is a
De-link means the online process by non-Internet-based book-entry system
which all securities contained within maintained by Treasury since 1986 for
the minor linked account are moved to purchasing and holding marketable
the minor’s primary TreasuryDirect Treasury securities directly with
account and the linked account is de- Treasury as book-entry products. (See
activated. §363.4.)
Delivery means moving a minimum Legal guardian of a minor or incom-
amount of $25 (consisting of principal petent person refers to the court-ap-
and proportionate interest) of a secu- pointed or otherwise qualified person,
rity held as a gift from the account of regardless of title, who is legally au-
the purchaser to the account of the re- thorized to act for the minor or incom-
cipient. petent individual.
Entity means any owner of a Legal representative refers to the
TreasuryDirect account that is not an court-appointed or otherwise qualified
individual. Entity is a sole proprietor- person, regardless of title, who is le-
ship, partnership, corporation, limited gally authorized to manage and settle
liability company or professional lim- the estate of a decedent. The term in-
ited liability company, trust, the es- cludes an executor and an adminis-
tate of a decedent, or the estate of a trator.
living person such as an incompetent Legally incompetent means a court has
or a minor. declared an individual to be incapable
Entity account manager is the indi- of handling his or her business affairs.
vidual who initially opens the Linked account means an account
TreasuryDirect account for an entity, that is a separate account from your
or his or her replacement; who is au- primary account, but connected to
thorized by the entity to act alone on your primary account. You use your
its behalf to open, access, and conduct primary account as a portal to open
transactions with respect to the ac- and access the linked account. (See
count; and who certifies that he or she §363.10 for more information about
is so authorized. linked accounts.)
Federal Reserve Bank (Reserve Bank) Marketable Treasury security refers to
means a Federal Reserve Bank or a Treasury bill, note, or bond that is
Branch. negotiable and transferable, that is,
Final maturity of a savings bond means may be bought and sold in the sec-
the date beyond which an unredeemed ondary market.
savings bond no longer earns interest.1 Minor means an individual under the
Financial institution, or depository fi- age of 18 years. The term minor is also
nancial institution, means an entity de- used to refer to an individual who has
scribed in 12 U.S.C. 461 (b)(1)(A)(i)–(vi). attained the age of 18 years but has not
Gift means a Treasury security pur- yet taken control of the securities con-
chased for or transferred to an in- tained in his or her minor account.
tended recipient, without consider- Minor account means an account that
ation. a custodian controls on behalf of a
Incompetent individual or incompetent minor, that is linked to the custodian’s
person means an individual who has primary account. (See §§363.10 and
been declared by a court to be legally 363.27 for more information about
incompetent, incapacitated, or other- minor accounts.)
wise unable to manage his or her finan- Non-converting coowner is the coowner
cial affairs. who does not participate in the trans-
Individual means a natural person. action to convert a definitive savings
1Series EE and Series I savings bonds cur- bond to a book-entry bond.
rently have an original maturity period of 20 Online means use of the Internet.
years and an extended maturity period of 10 Owner, when referring to an indi-
years beyond original maturity during which vidual, is either the single individual
the bonds continue to earn interest. named in the registration of a security
484
erowe on DSK5CLS3C1PROD with CFRVerDate Nov<24>2008 11:53 Aug 13, 2009Jkt 217122PO 00000 Frm 00494 Fmt 8010 Sfmt 8010 Y:\SGML\217122.XXX 217122
Fiscal Service, Treasury §363.6
held in the single owner form of reg- Doe SSN 123–45–6789 with Joseph Doe
istration, the first individual named on SSN 987–65–4321.’’ In this example, Jo-
a security held in the owner with bene- seph Doe is the secondary owner.
ficiary form of registration, the first Security, or Treasury security, as used
individual named on a security held in in this part, means an obligation issued
the primary owner with secondary by Treasury that may be held in
owner form of registration, or either TreasuryDirect.
individual named on a converted sav- Series EE savings bond is an accrual-
ings bond held in the coowner form of type savings bond, issued either in de-
registration; when referring to an enti- finitive (paper) form or in book-entry
ty, the owner is the entity. form, that accrues interest on the prin-
Person means an individual or an en- cipal based on rates determined by
tity. Treasury.
Primary account means the account Series I savings bond is a savings bond,
that you establish when you first open issued either in definitive (paper) form
your TreasuryDirect account; your pri- or in book-entry form, that accrues in-
mary account is the portal used to terest in accordance with a formula
open and access all your linked ac- that includes a fixed component and a
counts. (See §363.10 for more informa- component indexed to the rate of infla-
tion about primary accounts.) tion.
Primary owner means the first person Signature guarantee program means a
named in the registration of a security signature guarantee program estab-
held in TreasuryDirect registered, e.g., lished under 17 CFR 240.17Ad–15, issued
‘‘John Doe SSN 123–45–6789 with Joseph under authority of the Securities Ex-
Doe SSN 987–65–4321.’’ In this example, change Act of 1934. For the purpose of
John Doe is the primary owner. this part, we recognize the Securities
Principal amount means the amount Transfer Agents Medallion Program
of the original investment. Principal (STAMP), the Stock Exchanges Medal-
amount does not include any interest lion Program (SEMP), and the New
earned. York Stock Exchange, Inc., Medallion
Recipient means the person to whom Signature Program (MSP). These cer-
a gift is given. tifications are acceptable for transfers
Redemption of a savings bond refers to of securities, but are not acceptable for
the payment of principal and interest offline account establishment.
at final maturity, or prior to final ma-
turity at the option of the owner. The Single owner means the individual
owner may redeem all principal and in- named in the registration of a book-
terest or a portion of the principal and entry Treasury security or a converted
the proportionate amount of interest. savings bond without a beneficiary,
Redemption value means principal secondary owner, or coowner.
plus accrued interest of a bond, or a Social security account number or so-
portion of the principal plus a propor- cial security number (SSN) means the
tionate amount of accrued interest on identifying number required on tax re-
the bond, as of the date of redemption. turns and other documents submitted
Registration or Registered means that to the Internal Revenue Service by an
the name and taxpayer identification individual. A SSN is composed of nine
number(s) (TIN) of the person(s) named digits separated by two hyphens, for
on the security are maintained on our example, 123–45–6789.
records. Taxpayer identification number (TIN)
Sell Direct® is a service in which means the identifying number required
Treasury, through our agent, will sell on tax returns and other documents
your marketable Treasury security submitted to the Internal Revenue
held in TreasuryDirect or Legacy Service; that is, an individual’s social
Treasury Direct on the open market security number (SSN) or an employer
for a fee. identification number (EIN). A SSN is
Secondary owner means the second composed of nine digits separated by
person named in the registration of a two hyphens, for example, 123–45–6789.
book-entry security held in An EIN is composed of nine digits sepa-
TreasuryDirect registered, e.g. ‘‘John rated by one hyphen, for example, 12–
485
erowe on DSK5CLS3C1PROD with CFRVerDate Nov<24>2008 11:53 Aug 13, 2009Jkt 217122PO 00000 Frm 00495 Fmt 8010 Sfmt 8010 Y:\SGML\217122.XXX 217122
§§363.7–363.8 31 CFR Ch. II (7–1–09 Edition)
3456789. The hyphens are an essential TreasuryDirect® system. Provisions in
part of the numbers. the subparts governing specific securi-
Tender means an offer, or bid, to pur- ties that conflict with these general
chase a marketable Treasury security. rules will supersede these general
Transaction is any action affecting rules.
Treasury securities or account infor- [70 FR 57433, Sept. 30, 2005]
mation.
Transfer is a transaction to move a §363.10 What is a TreasuryDirect® ac-
security, or a portion of a security, count?
from one account to another within A TreasuryDirect account is an on-
TreasuryDirect, or to move a market- line account maintained by us solely in
able Treasury security to or from a your name in which you may hold and
TreasuryDirect account and an ac- conduct transactions in eligible book-
count in Legacy Treasury Direct or the entry Treasury securities.
commercial book-entry system.
Verification means confirming the (a) Primary account. The primary ac-
identity of an online applicant for a count is the account that you establish
TreasuryDirect account at account es- when initially opening your
TreasuryDirect account. The primary
tablishment using an online
account may contain the following
verification service or offline
verification. Treasury securities:
Verification service means a public or (1) Individual. A primary account for
private service that confirms the iden- an individual may contain Treasury se-
tity of an online applicant for a curities purchased initially as book-
TreasuryDirect account at account es- entry securities that are your personal
tablishment using information pro- holdings registered in single owner,
vided by the applicant. owner with beneficiary, and primary
Voluntary representative means the owner with secondary owner forms of
person qualified by the Department of registration; gifts of savings bonds that
the Treasury to accept payment or di- have not yet been delivered; and con-
rect distribution of a decedent’s securi- verted savings bonds that were trans-
ties pursuant to §363.44. ferred from the conversion linked ac-
We, us, or our refers to the Bureau of count.
the Public Debt. The term includes the (2) Entities. A primary account for an
Secretary of the Treasury and the Sec- entity may contain Treasury securities
retary’s delegates at the Treasury De- purchased initially as book-entry secu-
partment and Bureau of the Public rities registered in the name of the en-
Debt. The term also includes any fiscal tity and converted savings bonds in the
or financial agent we designate to act name of the entity that were trans-
on behalf of the United States. ferred from the conversion linked ac-
You or your refers to a
count.
TreasuryDirect primary account hold- (b) Linked account. A linked account
er. is an account that is a separate ac-
[67 FR 64286, Oct. 17, 2002, as amended at 68 count from your primary account, but
FR 24807, May 8, 2003; 69 FR 2507, Jan. 16, that is connected to your primary ac-
2004; 69 FR 50308, Aug. 16, 2004; 70 FR 14942, count. You use your primary account
Mar. 23, 2005; 70 FR 57433, Sept. 30, 2005; 70 FR as a portal to open and access the
57442, Sept. 30, 2005; 72 FR 30978, June 5, 2007; linked account. Linked accounts in-
74 FR 19416, Apr. 29, 2009] clude the following:
Subpart B—General Provisions (1) Custom account. A custom account
is an account that is linked to your
Governing Securities Held in primary account. You use your pri-
TreasuryDirect mary account as the portal to open and
access your custom account. You may
§§363.7–363.8 [Reserved] informally designate a purpose for the
§363.9 What does this subpart cover? custom account, for example, ‘‘vaca-
tion fund’’, or ‘‘Johnny’s college fund’’.
This subpart provides general rules However, the designation as to purpose
governing securities held within the has no legal effect; the registration of
486
erowe on DSK5CLS3C1PROD with CFRVerDate Nov<24>2008 11:53 Aug 13, 2009Jkt 217122PO 00000 Frm 00496 Fmt 8010 Sfmt 8010 Y:\SGML\217122.XXX 217122
no reviews yet
Please Login to review.
