33736 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

DEPARTMENT OF THE TREASURY

Fiscal Service

Treasury Tax and Loan Program

Enhancements

AGENCY: Financial Management Service,

Fiscal Service, Department of the

Treasury.

ACTION: Notice.

SUMMARY: This announces new

applications to be available in the

Treasury Tax and Loan program.

DATES: The new applications are

effective July 10, 2000.

FOR FURTHER INFORMATION CONTACT: Walt

Henderson, Senior Financial Program

Specialist on (202) 874–6705 or

walt.henderson@fms.treas.gov; Mary

Bailey, Financial Program Specialist, at

(202) 874–6749 or

mary.bailey@fms.treas.gov; Adam

Martin, Financial Program Specialist, at

(202) 874–6881 or

adam.martin@fms.treas.gov; Cynthia L.

Johnson, Director, Cash Management

Policy and Planning Division, at (202)

874–6590 or

cindy.johnson@fms.treas.gov; or Ellen

Neubauer, Senior Attorney, at (202)

874–6680 or

ellen.neubauer@fms.treas.gov.

SUPPLEMENTARY INFORMATION:

A. Background

The Department of the Treasury

(Treasury) and the Board of Governors

of the Federal Reserve System (Federal

Reserve) are enhancing the Treasury Tax

and Loan (TT&L) program by

implementing two new applications.

The current TT&L program encompasses

two separate components—a depositary

component through which Treasury

collects Federal tax deposits and

payments from business taxpayers for

employee withholding and other types

of taxes, and an investment component

through which Treasury invests shortterm operating balances not needed for

immediate cash outlays. More than

10,500 commercial financial institutions

participate in the TT&L depositary

component, collecting and/or reporting

almost $1.4 trillion in Fiscal Year 1999.

Additionally, more than 1,500 of the

TT&L depositaries borrow excess shortterm Treasury operating funds by

participating in the TT&L investment

component.

B. Summary of the New TT&L

Applications

On July 10, 2000, Treasury and the

Federal Reserve will introduce two new

TT&L applications—the Treasury

Investment Program (TIP) and the Paper

Tax System (PATAX)—which will

enhance the current TT&L program. The

TIP and PATAX systems will benefit

financial institutions by providing the

following features:

—Flexibility in investment options by

offering dynamic investing through

the new TIP application. Dynamic

investing allows qualified financial

institutions to receive excess Treasury

funds throughout the day, provided

the institution has the capacity to

accept the funds.

—Near real time processing throughout

the day. Tax payments settled by TIP

(paper tax payments and same day

Electronic Federal Tax Payment

System (EFTPS) payments) are

credited to an institution’s accounts

throughout the day rather than at the

end of the day. A more accurate

Treasury balance leads to greater

investment opportunities for financial

institutions. Financial institutions

also benefit from near real time

account balance information because

they can better manage their cash

position.

—Electronic delivery of statements and

expanded hours for same day

electronic tax payments and for

processing paper tax payments (5:00

p.m. Eastern Time cut-off).

—Improved collateral monitoring. TIP

will receive hourly collateral updates

to help prevent deficiencies. These

improvements ensure that Treasury’s

funds are always fully collateralized.

The Federal Reserve conducted

training sessions for select financial

institutions on the new TT&L

applications across the U.S. during

February, March, and April of this year.

Additional Information

In response to the implementation of

these new applications, the Federal

Reserve is publishing a new policy

statement in this separate part

pertaining to daylight overdrafts. Prior

to July 10, 2000, Treasury’s Financial

Management Service will update the

Treasury Financial Manual (TFM)

chapters pertaining to TT&L and

collateral. TFM chapters are available at

www.fms.treas.gov/tfm/index.html.

For more information on the new

TT&L applications, please visit

www.frbservices.org. Financial

institutions may also visit

www.fms.treas.gov/regs.html for

regulations and guidance pertaining to

TT&L, EFTPS, and collateral. Financial

institutions with questions on the new

TT&L applications should contact the

TT&L National Customer Service Area

on 1–800–568-7343.

Dated: May 17, 2000.

Bettsy H. Lane,

Assistant Commissioner, Federal Finance,

Financial Management Service.

[FR Doc. 00–13015 Filed 5–23–00; 8:45 am]

BILLING CODE 4810–35–P