55428 Federal Register / Vol. 65, No. 178 / Wednesday, September 13, 2000 / Rules and Regulations

Specialist, at (202) 874–6705; Cynthia L.

Johnson, Director, Cash Management

Policy and Planning Division, at (202)

874–6590; or Marc Seldin, Senior

Attorney, at (202) 874–6680. A copy of

this final rule is available on FMS’ web

site at the following address:

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

SUPPLEMENTARY INFORMATION:

Background

Depositaries accepting deposits of

public money and providing other

financial agency services to the United

States (depositaries) are required to

pledge adequate acceptable securities as

collateral, as directed by the Secretary of

the Treasury (Secretary). The Secretary

previously promulgated regulations,

codified at 31 CFR part 202, setting forth

general requirements for designating

depositaries and the pledging of

collateral.

While FMS continues to be

responsible for all other operational and

regulatory oversight of programs under

31 CFR part 202, responsibility for

determining the acceptability and

valuation of collateral pledged for

programs under this regulation was

recently transferred from FMS to BPD,

another bureau within the Fiscal Service

of the Department of the Treasury

(Treasury). BPD has promulgated a

regulation, codified at 31 CFR part 380

and published elsewhere in this issue of

the Federal Register, governing such

collateral acceptability and valuation.

The current rule provides that types and

valuation of acceptable collateral

securities will be specified in Treasury

procedural instructions. The revised

rule results in no effective change.

Current references to collateral

acceptability and valuation are removed

and replaced with references to BPD’s

collateral acceptability and valuation

rule, which similarly provides that

types and valuations of acceptable

collateral securities will be specified in

Treasury procedural instructions.

Treasury procedural instructions issued

under the current rule and the revised

rule are presently identical. This rule

also revises the heading of this part for

clarity and the format of the authority

citation for this part for consistency.

Regulatory Analyses

It has been determined that this

regulation is not a significant regulatory

action as defined in Executive Order

12866. Therefore, a Regulatory

Assessment is not required.

Executive Order 12866 and the

President’s memorandum of June 1,

1998 require each agency to write all

rules in plain language.

We invite your comments on the

clarity of this rule. Please send any

comments to the Department of the

Treasury, Financial Management

Service, Cash Management Policy and

Planning Division, 401 14th Street, SW,

Washington, DC 20227.

Because no notice of proposed

rulemaking is required, the provisions

of the Regulatory Flexibility Act do not

apply.

Because this regulation merely affects

internal agency organization and does

not substantively change the current

rule, no notice of proposed rulemaking

is required by 5 U.S.C. 553.

List of Subjects in 31 CFR Part 202

Banks, Banking.

For the reasons set out in the

preamble, 31 CFR part 202 is amended

as follows:

1. Amend the heading of part 202 to

read as follows:

PART 202—DEPOSITARIES AND

FINANCIAL AGENTS OF THE

FEDERAL GOVERNMENT

2. Revise the authority citation for

part 202 to read as follows:

Authority: 12 U.S.C. 90, 265–266, 391,

1452(d), 1464(k), 1789a, 2013, 2122 and

3101–3102; 31 U.S.C. 3303 and 3336.

3. Amend § 202.6 to revise paragraph

(b) to read as follows:

§ 202.6 Collateral security.

* * * * *

(b) Acceptable security. Types and

valuations of acceptable collateral

security are addressed in 31 CFR part

380. For a current list of acceptable

classes of securities and instruments

described in 31 CFR part 380 and their

valuations, see the Bureau of the Public

Debt’s web site at

www.publicdebt.treas.gov.

* * * * *

Dated: September 1, 2000.

Richard L. Gregg,

Commissioner.

[FR Doc. 00–23088 Filed 9–12–00; 8:45 am]

BILLING CODE 4810–35–P

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 203

RIN–1510–AA76

Payment of Federal Taxes and the

Treasury Tax and Loan Program

AGENCY: Financial Management Service,

Fiscal Service, Treasury.

ACTION: Final rule.

SUMMARY: The Financial Management

Service (FMS) is issuing this final rule

which governs the processing of Federal

tax payments by financial institutions

and the Federal Reserve Banks using

electronic payment or paper methods;

the designation of Treasury Tax and

Loan (TT&L) depositaries; and the

operation of the investment program of

the Department of the Treasury

(Treasury). This revision removes

current references to the acceptability

and valuation of collateral pledged to

secure deposits of tax payments through

the Treasury Investment Program, and

replaces them with references to the

new rule published by Treasury’s

Bureau of the Public Debt (BPD),

codified at 31 CFR part 380, governing

collateral acceptability and valuation.

The revision is necessary because the

responsibility for determining the

acceptability and valuation of collateral

was recently transferred from FMS to

BPD.

EFFECTIVE DATE: October 13, 2000.

FOR FURTHER INFORMATION CONTACT:

Mary Bailey, Financial Program

Specialist, at (202) 874–6749; Walt

Henderson, Senior Financial Program

Specialist, at (202) 874–6705; Cynthia L.

Johnson, Director, Cash Management

Policy and Planning Division, at (202)

874–6590; or Marc Seldin, Senior

Attorney, at (202) 874–6680. A copy of

this final rule is available on FMS’ web

site at the following address:

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

SUPPLEMENTARY INFORMATION:

Background

The TT&L program encompasses two

separate components—a depositary

component through which the Treasury

collects Federal tax deposits and

payments from business taxpayers for

employee withholding and other types

of taxes, and an investment component

through which the Treasury invests

short-term operating balances not

needed for immediate cash outlays.

More than 1,500 of the TT&L

depositaries borrow excess short-term

Treasury operating funds by

participating in the investment

component of the TT&L program.

Through agreements, participating

depositaries borrow Treasury funds in

the form of a note secured with

collateral pledged to the Treasury and

pay interest to the Treasury on these

balances. The Secretary of the Treasury

(Secretary) previously promulgated

regulations, codified at 31 CFR part 203,

governing the TT&L program and the

pledging of such collateral.

Federal Register / Vol. 65, No. 178 / Wednesday, September 13, 2000 / Rules and Regulations 55429

While FMS continues to be

responsible for any other operational

and regulatory oversight of programs

under 31 CFR part 203, responsibility

for determining the acceptability and

valuation of collateral pledged for

programs under this regulation was

recently transferred from FMS to BPD,

another bureau within the Fiscal Service

of the Department of the Treasury

(Treasury). BPD has promulgated a

regulation, codified at 31 CFR part 380

and published elsewhere in this issue of

the Federal Register, governing such

collateral acceptability and valuation.

The current rule provides that (1) unless

otherwise specified by the Secretary,

collateral security pledged under

§ 203.24 may be transferable securities,

owned by the depositary free and clear

of all liens, charges, or claims, of any of

the classes listed in procedural

instructions; and (2) collateral

valuations will be assigned by the

Federal Reserve Bank of the District.

The revised rule results in no

substantive change. The revised rule

states that acceptable types and

valuations of collateral are addressed in

31 CFR part 380. Pursuant to § 380.3,

BPD has specified that the above

provisions of the current rule continue.

Regulatory Analyses

It has been determined that this

regulation is not a significant regulatory

action as defined in Executive Order

12866. Therefore, a Regulatory

Assessment is not required.

Executive Order 12866 and the

President’s memorandum of June 1,

1998 require each agency to write all

rules in plain language. We invite your

comments on the clarity of this rule.

Please send any comments to the

Department of the Treasury, Financial

Management Service, Cash Management

Policy and Planning Division, 401 14th

Street, SW, Washington, DC 20227.

Because no notice of proposed

rulemaking is required, the provisions

of the Regulatory Flexibility Act do not

apply.

Because this regulation merely affects

internal agency organization and does

not substantively change the current

rule, no notice of proposed rulemaking

is required by 5 USC 553.

List of Subjects in 31 CFR Part 203

Banks, Banking.

For the reasons set out in the

preamble, 31 CFR part 203 is amended

as follows:

PART 203—PAYMENT OF FEDERAL

TAXES AND THE TREASURY TAX AND

LOAN PROGRAM

1. The authority citation for part 203

continues to read as follows:

Authority: 12 U.S.C. 90, 265–266, 332, 391,

1452(d), 1464(k), 1767, 1789a, 2013, 2122

and 3102; 26 U.S.C. 6302; 31 U.S.C. 321, 323

and 3301–3304

2. Amend § 203.24 to revise paragraph

(d) to read as follows:

§ 203.24 Collateral security requirements.

* * * * *

(d) Acceptable securities. Types and

valuations of acceptable collateral

security are addressed in 31 CFR part

380. For a current list of acceptable

classes of securities and instruments

described in 31 CFR part 380 and their

valuations, see the Bureau of the Public

Debt’s web site at

www.publicdebt.treas.gov.

* * * * *

Dated: September 1, 2000.

Richard L. Gregg,

Commissioner.

[FR Doc. 00–23089 Filed 9–12–00; 8:45 am]

BILLING CODE 4810–35–P

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 225

RIN–1510–AA77

Acceptance of Bonds Secured by

Government Obligations in Lieu of

Bonds With Sureties

AGENCY: Financial Management Service,

Fiscal Service, Treasury.

ACTION: Final rule.

SUMMARY: The Financial Management

Service (FMS) is issuing this final rule

which governs the acceptance of bonds

secured by Government obligations in

lieu of bonds with sureties. This

revision adds references to the new rule

of the Bureau of the Public Debt (BPD),

codified at 31 CFR part 380, governing

collateral acceptability and valuation.

The revision is necessary because the

responsibility for determining the

acceptability and valuation of collateral

was recently transferred from FMS to

BPD.

EFFECTIVE DATE: October 13, 2000.

FOR FURTHER INFORMATION CONTACT:

Mary Bailey, Financial Program

Specialist, at (202) 874–6749; Walt

Henderson, Senior Financial Program

Specialist, at (202) 874–6705; Cynthia L.

Johnson, Director, Cash Management

Policy and Planning Division, at (202)

874–6590; or Marc Seldin, Senior

Attorney, at (202) 874–6680. A copy of

this final rule is available on FMS’ web

site at the following address:

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

SUPPLEMENTARY INFORMATION:

Background

Persons required by Federal law to

give an agency a surety bond instead

may provide a bond secured by

Government obligations. To assist

agencies in reviewing and accepting

such bonds, the Secretary of the

Treasury promulgated regulations

codified at 31 CFR part 225, which set

forth requirements applicable to bonds

secured by Government obligations in

lieu of bonds with sureties. While the

FMS continues to be responsible for all

other operational and regulatory

oversight of programs under 31 CFR part

225, responsibility for determining the

acceptability and valuation of collateral

pledged under this regulation was

recently transferred from FMS to BPD,

another bureau within the Fiscal Service

of the Department of the Treasury

(Treasury). BPD has promulgated a

regulation, codified at 31 CFR part 380

and published elsewhere in this issue of

the Federal Register, governing such

collateral acceptability and valuation.

The current rule reserves paragraph (e)

within section 225.3. The revised rule

inserts in this section appropriate

references to the new BPD regulation.

The revised rule results in no

substantive change. Acceptable types of

collateral security and their valuation

under this revision are the same as exist

currently. This rule also revises, for

purposes of consistency, the format of

the authority citation for this part.

Regulatory Analyses

It has been determined that this

regulation is not a significant regulatory

action as defined in Executive Order

12866. Therefore, a Regulatory

Assessment is not required.

Executive Order 12866 and the

President’s memorandum of June 1,

1998 require each agency to write all

rules in plain language. We invite your

comments on the clarity of this rule.

Please send any comments to the

Department of the Treasury, Financial

Management Service, Cash Management

Policy and Planning Division, 401 14th

Street, SW, Washington, DC 20227.

Because no notice of proposed

rulemaking is required, the provisions

of the Regulatory Flexibility Act do not

apply.

Because this regulation merely affects

internal agency organization and does

not substantively change the current