[Federal Register Volume 62, Number 156 (Wednesday, August 13, 1997)]
[Rules and Regulations]
[Pages 43283-43284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21405]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 357

[Department of the Treasury Circular, Public Debt Series, No. 2-86]


Regulations Governing Book-Entry Treasury Bonds, Notes and Bills

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury is publishing a final rule to 
its TRADES Commentary, (Appendix B of 31 CFR Part 357), to update the 
list of states that have enacted Revised Article 8 of the Uniform 
Commercial Code and that were the subject of prior notices published by 
Treasury in the Federal Register. Appendix B provides explanatory 
information regarding the regulations governing Treasury securities 
held in the commercial book-entry system, referred to as the Treasury/
Reserve Automated Debt Entry System (``TRADES'').

EFFECTIVE DATE: August 13, 1997.

FOR FURTHER INFORMATION CONTACT: Walter T. Eccard, Chief Counsel (202) 
219-3320, or Cynthia E. Reese, Deputy Chief Counsel, (202) 219-3320. 
Copies of the final rule are being made available for downloading from 
the Bureau of the Public Debt home page at the following address: 
www.publicdebt.treas.gov.

SUPPLEMENTARY INFORMATION: The final rule to govern Treasury 
securities held in the commercial book-entry system, or TRADES, was 
published August 23, 1996 (61 FR 43626), and was effective January 
1, 1997. Appendix B of the rule, the TRADES Commentary, addresses 
the limited scope of federal preemption of state law under 
Sec. 357.11 of the Section-by Section Analysis. If the choice of 
law rules set forth in TRADES lead to the application of the law of 
a state that has not yet adopted Revised Article 8 of the Uniform 
Commercial Code (Revised Article 8) then TRADES applies Revised 
Article 8 (as approved by the American Law Institute and the 
National Conference of Commissioners on Uniform State Laws, or the 
``uniform version''). Treasury indicated in the preamble to the 
final rule that if a state passes a version of Revised Article 8 
that is substantially identical to the uniform version, then 
reference to the uniform version would no longer be required. In 
the TRADES Commentary, Treasury further stated that it had reviewed 
the laws of those states which had adopted Revised Article 8 as of 
the date of the publication of the final rule and had concluded 
that they were substantially identical to the uniform version. 
Those 28 states were enumerated and listed by name alphabetically 
in a footnote.

    Treasury further indicated that it would publish in the Federal 
Register a notice setting forth its conclusion as to whether additional 
state enactments of Revised Article 8 are ``substantially identical'' 
to the uniform version for purposes of the regulations. Treasury has 
published such notices with respect to California (62 FR 26, January 2, 
1997) and the District of Columbia (62 FR 34010, June 18, 1997). The 
TRADES Commentary further states that Treasury will, on an annual 
basis, amend the Commentary (Appendix B) to reflect subsequent 
enactments. Accordingly, this final rule amends Appendix B to reflect 
the addition of California and the District of Columbia to the list of 
states enumerated therein. In addition we are making a technical 
amendment that corrects the footnote in Appendix B to the rule we 
published in 61 FR 43626, August 23, 1996.

[[Page 43284]]

Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'' pursuant to Executive Order 12866. The notice and 
public comment procedures requirements of the Administrative Procedure 
Act are inapplicable, pursuant to 5 U.S.C. 553(a)(2).
    As no notice of proposed rulemaking was required, the provisions of 
the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) do not apply.
    There are no collections of information contained in this final 
rule. Therefore, the Paperwork Reduction Act does not apply.

List of Subjects in 31 CFR Part 357

    Bonds, Electronic funds transfer, Federal Reserve System, 
Government securities, Incorporation by reference, Securities.

    For the reasons set forth in the preamble, Title 31, Chapter II, 
Subchapter B, Part 357 is amended as follows:

PART 357--REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES 
AND BILLS

    1. The authority citation for Part 357 continues to read as 
follows:

    Authority: 31 U.S.C. chapter 31; 5 U.S.C. 301; 12 U.S.C. 391.

Appendix B to Part 357--[Amended]

    2. Appendix B to part 357 is amended by redesignating the second 
footnote 9 through footnote 17 as footnote 10 through 18.
    3. Appendix B to part 357 is further amended in the Section-by-
Section Analysis for Sec. 357.11(b), in the third paragraph, by 
revising the fourth sentence and redesignated footnote 11 to read as 
follows:

Appendix B to Part 357--TRADES Commentary

* * * * *

Section-by-Section Analysis

* * * * *

Section 357.11--Law Governing Other Interests

* * * * *
    (b) Limited Scope of Federal Preemption
* * * * *
    * * * Treasury has determined that the versions of Article 8 
passed by 30 <SUP>11</SUP> states that have enacted Article 8 meet 
this standard. * * *

    \11\ Alabama, Alaska, Arizona, Arkansas, California, Colorado, 
District of Columbia, Idaho, Illinois, Iowa, Indiana, Kansas, 
Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, 
Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, 
Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming.
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    Dated: July 17, 1997.
Gerald Murphy,
Fiscal Assistant Secretary.
[FR Doc. 97-21405 Filed 8-12-97; 8:45 am]
BILLING CODE 4810-39-W