[Federal Register: September 13, 2000 (Volume 65, Number 178)]
[Rules and Regulations]
[Page 55428-55429]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13se00-15]

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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.

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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.

[[Page 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 Sec. 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
Sec. 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 Sec. 203.24 to revise paragraph (d) to read as follows:

Sec. 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