[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Rules and Regulations]
[Pages 19416-19421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9630]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 363


Regulations Governing Securities Held in TreasuryDirect

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

ACTION: Final rule.

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SUMMARY: TreasuryDirect is an account-based, book-entry, online system 
for purchasing, holding, and conducting transactions in Treasury 
securities. To date, TreasuryDirect has only been available for 
individual account owners. This final rule will permit certain 
specified entities to open accounts in TreasuryDirect.

DATES: Effective date: April 24, 2009.

ADDRESSES: You can download this final rule at the following Internet 
addresses: http://www.publicdebt.treas.gov or http://www.gpoaccess.gov/ecfr.

FOR FURTHER INFORMATION CONTACT: 
    Elisha Whipkey, Director, Division of Program Administration, 
Office of Retail Securities, Bureau of the Public Debt, at (304) 480-
6319 or <a href="/cdn-cgi/l/email-protection#31545d584259501f465958415a5448715341551f45435450421f565e47"><span class="__cf_email__" data-cfemail="e481888d978c85ca938c8d948f819da4869480ca9096818597ca838b92">[email protected]</span></a>.
    Susan Sharp, Attorney-Adviser, Elizabeth Spears, Senior Attorney, 
Edward Gronseth, Deputy Chief Counsel, Office of the Chief Counsel, 
Bureau of the Public Debt, at (304) 480-8692 or 
<a href="/cdn-cgi/l/email-protection#394a4c4a5857174a51584b49795b495d174d4b5c584a175e564f"><span class="__cf_email__" data-cfemail="b6c5c3c5d7d898c5ded7c4c6f6d4c6d298c2c4d3d7c598d1d9c0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: TreasuryDirect is an online account-based 
system for individuals to purchase, hold, and conduct transactions in 
eligible Treasury securities. To date, only individuals have been 
permitted to open a TreasuryDirect account. This final rule will permit 
certain specified entities to open accounts in TreasuryDirect and 
conduct transactions in eligible Treasury securities. A sole 
proprietorship, partnership, corporation, limited liability company or 
professional limited liability company, trust, decedent's estate, 
estate of an incompetent individual, and estate of a minor will be able 
to open a TreasuryDirect account. Treasury believes that these forms of 
registrations will serve most organizations and fiduciaries wishing to 
open a TreasuryDirect account. If, in the future, there is a 
demonstrated need for other forms of entity registrations, Treasury 
will consider adding additional registrations.
    The account must be opened and managed by an individual known as an 
entity account manager who is authorized to act alone on behalf of the 
entity with regard to this account. Only an individual is permitted to 
act as an entity account manager. Initially, the entity account manager 
will be the individual who opens the TreasuryDirect account. If the 
entity subsequently wishes to change the individual who acts as its 
entity account manager, the entity account manager may be changed using 
procedures available on the TreasuryDirect Web site. Only one 
individual may act as entity account manager at any one time. The 
identity of the entity account manager will be verified using an online 
verification service; the identity of the entity may be verified using 
appropriate evidence. The entity account manager must certify online 
that he or she has the authority to act alone on behalf of the entity.
    An entity will not be permitted to open a minor linked account. An 
entity cannot purchase gift savings bonds, and a gift bond cannot be 
delivered to an entity. However, an entity may transfer an existing 
bond, which is already registered in the entity's name, to another 
account (primary or linked) owned by either an individual or an entity. 
An entity may convert a definitive savings bond to book-entry form if 
the bond is registered in the name of the entity.

Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866. Therefore, a 
regulatory assessment is not required.
    Because this final rule relates to matters of public contract and 
procedures for United States securities, notice and public procedure 
and delayed effective date requirements are inapplicable, pursuant to 5 
U.S.C. 553(a)(2).
    As no notice of proposed rulemaking is required, the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) does not apply.
    We ask for no new collections of information in this final rule. 
Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply.

List of Subjects in 31 CFR Part 363

    Bonds, Electronic funds transfer, Federal Reserve system, 
Government securities, Securities.

0
Accordingly, for the reasons set out in the preamble, 31 CFR Chapter 
II, Subchapter B, is amended as follows:

PART 363--REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT

0
1. The authority citation for part 363 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3102, et 
seq.; 31 U.S.C. 3121, et seq.


0
2. Amend Sec.  363.5 by revising paragraph (c) to read as follows:


Sec.  363.5  How do I contact Public Debt?

* * * * *
    (c) Letters should be addressed to the address provided on our web 
site at http://www.treasurydirect.gov/write.htm.

0
3. Amend Sec.  363.6 by:
0
a. Adding the definitions of ``Entity,'' ``Entity account manager,'' 
and ``Incompetent individual or Incompentent person'' in alphabetical 
order;
0
b. Revising the definitions of ``Individual,'' ``Owner,'' ``Person,'' 
and ``Verification'' to read as follows:


Sec.  363.6  What special terms do I need to know to understand this 
part?

* * * * *
    Entity means any owner of a TreasuryDirect account that is not an 
individual. Entity is a sole proprietorship, partnership, corporation, 
limited liability company or professional limited liability company, 
trust, the estate of a decedent, or the estate of a living person such 
as an incompetent or a minor.
    Entity account manager is the individual who initially opens the 
TreasuryDirect account for an entity, or his or her replacement; who is 
authorized by the entity to act alone on its behalf to open, access, 
and conduct transactions with respect to the account; and who certifies 
that he or she is so authorized.
* * * * *
    Incompetent individual or incompetent person means an individual 
who has been declared by a court to be legally incompetent, 
incapacitated, or otherwise unable to manage his or her financial 
affairs.

[[Page 19417]]

    Individual means a natural person.
* * * * *
    Owner, when referring to an individual, is either the single 
individual named in the registration of a security held in the single 
owner form of registration, the first individual named on a security 
held in the owner with beneficiary form of registration, the first 
individual named on a security held in the primary owner with secondary 
owner form of registration, or either individual named on a converted 
savings bond held in the coowner form of registration; when referring 
to an entity, the owner is the entity.
    Person means an individual or an entity.
* * * * *
    Verification means confirming the identity of an online applicant 
for a TreasuryDirect account at account establishment using an online 
verification service or offline verification.
* * * * *

0
4. Amend Sec.  363.10 by:
0
a. Revising paragraph (a),
0
b. Revising the fifth and sixth sentences of and adding a seventh 
sentence to paragraph (b)(1), and
0
c. Revising the first sentence of and adding a new second sentence to 
paragraph (b)(2), to read as follows:


Sec.  363.10  What is a TreasuryDirect[supreg] account?

* * * * *
    (a) Primary Account. The primary account is the account that you 
establish when initially opening your TreasuryDirect account. The 
primary account may contain the following Treasury securities:
    (1) Individual. A primary account for an individual may contain 
Treasury securities purchased initially as book-entry securities that 
are your personal holdings registered in single owner, owner with 
beneficiary, and primary owner with secondary owner forms of 
registration; gifts of savings bonds that have not yet been delivered; 
and converted savings bonds that were transferred from the conversion 
linked account.
    (2) Entities. A primary account for an entity may contain Treasury 
securities purchased initially as book-entry securities registered in 
the name of the entity and converted savings bonds in the name of the 
entity that were transferred from the conversion linked account.
    (b) * * *
    (1) * * * You, as an individual owner, may use your custom account 
to buy, redeem, and transfer securities that you own in single owner, 
owner with beneficiary, and primary owner with secondary owner forms of 
registration. An individual owner may also buy and deliver gift savings 
bonds from the custom account. An entity account manager, acting on 
behalf of an entity, may use the entity's custom account to buy, 
redeem, and transfer securities registered in the entity form of 
registration.
    (2) Minor account. A minor account is an account established by an 
individual custodian for an individual who has not yet reached the age 
of 18 years. We do not permit an entity to open a minor account. * * *
* * * * *

0
5. Revise Sec.  363.11 to read as follows:


Sec.  363.11  Who is eligible to open a TreasuryDirect[supreg] account?

    Only an individual or an entity is eligible to open a 
TreasuryDirect account. In order to open a TreasuryDirect account, an 
individual or entity account manager must have a valid social security 
number (SSN), be 18 years of age or over, and be legally competent. An 
entity must have a valid SSN or employer identification number. The 
account owner must have a United States address of record and have an 
account at a United States depository financial institution that will 
accept debits and credits using the Automated Clearing House method of 
payment.

0
6. Amend Sec.  363.12 by revising paragraph (c) to read as follows:


Sec.  363.12  Who may purchase and hold book-entry securities in 
TreasuryDirect[supreg]?

* * * * *
    (c) We do not permit a voluntary representative to purchase 
securities on behalf of the estate of a decedent.
* * * * *

0
7. Revise Sec.  363.13 to read as follows:


Sec.  363.13  How can I open a TreasuryDirect[supreg] account?

    (a) General. You must establish a TreasuryDirect account online 
before you purchase a Treasury security to be held in your account. 
Instructions for online account establishment may be found at the 
official Public Debt website at http://www.treasurydirect.gov, or such 
other Internet address as Public Debt may from time to time announce by 
publication in the Federal Register. When you have completed the 
application, you will create a password to access your account. We will 
verify your identity and send your account number to you by e-mail when 
your account application is approved. In addition to your password, we 
may require you to use any other form(s) of authentication that we 
consider necessary for the protection of your account.
    (b) Entities. An individual, referred to as an entity account 
manager, must establish an account on behalf of an entity. We will 
verify the identity of the entity account manager. We may verify the 
identity of the entity using any evidence we deem appropriate. The 
entity account manager must certify that he or she is authorized to 
open and access an account for the entity and has the authority to act 
alone on behalf of the entity with regard to the account.

0
8. Revise Sec.  363.14 to read as follows:


Sec.  363.14  How will you verify my identity?

    (a) Individual. When you establish an account, we may use a 
verification service to verify your identity using information you 
provide about yourself on the online application. At our option, we may 
require offline verification.
    (b) Entity. When an entity account manager establishes an online 
account on behalf of an entity, we may use a verification service to 
verify the identity of the entity account manager using information 
that the entity account manager provides about himself or herself on 
the online application. At our option, we may require offline 
verification of the entity account manager. At our option, we may 
require any evidence we deem appropriate to verify the identity of the 
entity.

0
9. Revise Sec.  363.15 to read as follows:


Sec.  363.15  What is the procedure for offline verification?

    In the event we require offline verification, we will provide a 
printable verification form for the individual account owner or entity 
account manager to sign. The signature on the form must be certified or 
guaranteed as provided at Sec.  363.43, and the form must be mailed to 
us at the address provided in Sec.  363.5. We may require documentary 
verification of an entity as we deem appropriate.

0
10. Amend Sec.  363.20 by:
0
a. Revising paragraphs (b) and (c) to read as follows; and
0
b. Removing paragraphs (d) and (e):


Sec.  363.20  What do I need to know about the forms of registration 
that are available for purchases of securities through my 
TreasuryDirect[supreg] account?

* * * * *
    (b) Forms of registration for individuals. The forms of 
registration available for individuals for purchases of securities made 
through your TreasuryDirect account are single owner, owner with 
beneficiary, and primary owner with secondary owner,

[[Page 19418]]

unless the forms of registration available for a security are 
specifically limited by the subpart governing that security.
    (1) Single owner. (i) A single owner is the individual named in the 
registration of a book-entry security or a converted savings bond 
without a beneficiary, secondary owner, or coowner.
    (ii) A single owner may add a beneficiary or secondary owner.
    (iii) A single owner may conduct permitted online transactions on 
securities held in his or her account.
    (iv) Upon the death of the single owner, his or her estate is 
entitled to the security. In determining entitlement, the law of the 
decedent's domicile will be followed.
    (v) Registration example: ``John Doe, SSN 123-45-6789.''
    (2) Owner with beneficiary. (i) The purchaser must be named as the 
owner with another individual as beneficiary.
    (ii) The owner may remove or change the beneficiary without the 
consent of the beneficiary.
    (iii) The owner may conduct permitted online transactions on 
securities held in his or her account without the consent of the 
beneficiary.
    (iv) The beneficiary has no ownership rights to the security during 
the owner's lifetime. Upon the death of the owner, the security becomes 
the property of the surviving beneficiary, despite any attempted 
testamentary disposition or any applicable local law to the contrary.
    (v) If the beneficiary does not survive the owner, the security 
belongs to the estate of the owner.
    (vi) If both the owner and the beneficiary die under conditions 
where it cannot be established, either by presumption of law or 
otherwise, who died first, the security is the property of the estate 
of the owner.
    (vii) In order for the beneficiary to obtain the security or the 
redemption proceeds after the death of the owner, the beneficiary must 
provide proof of death of the owner. If the beneficiary has a 
TreasuryDirect account, the security will be transferred to that 
account. If the beneficiary does not have an account, he or she may 
establish an account. Alternatively, a beneficiary named on a savings 
bond may request redemption. If the beneficiary requests redemption, he 
or she must provide ACH instructions for the payment.
    (viii) Registration example: ``John Doe, SSN 123-45-6789 POD 
(payable on death to) Jane Doe, SSN 987-65-4321.''
    (3) Primary owner with secondary owner. (i) The purchaser must be 
named in the registration as the primary owner with another individual 
as secondary owner.
    (ii) The primary owner holds the securities in his or her account 
and may view or conduct permitted online transactions in the 
securities.
    (iii) The primary owner may remove the secondary owner without the 
consent of the secondary owner.
    (iv) The secondary owner has no rights to view or conduct 
transactions in any security unless the primary owner gives the 
secondary owner these rights.
    (v) The primary owner may give the secondary owner the right to 
view any security or rights to view and conduct transactions in any 
security online from the account of the secondary owner.
    (vi) Once the right to conduct transactions in a security has been 
given to the secondary owner, the primary owner may view and conduct 
transactions in the security from the primary owner's account, and the 
secondary owner may view and conduct transactions in the security using 
the secondary owner's own account.
    (vii) The primary owner may revoke any rights previously given to 
the secondary owner at any time.
    (viii) Upon the death of either the primary or secondary owner, the 
security becomes the property of the survivor, despite any attempted 
testamentary disposition or any applicable local law to the contrary.
    (ix) If both the primary and the secondary owner die under 
conditions where it cannot be established, either by presumption of law 
or otherwise, who died first, the security is the property of the 
estate of the primary owner.
    (x) In order for the secondary owner to obtain the security or the 
security proceeds after the death of the primary owner, the secondary 
owner must provide proof of death of the primary owner. If the 
secondary owner has a TreasuryDirect account, the security will be 
transferred to that account. If the secondary owner does not have an 
account, he or she may establish an account. Alternatively, a secondary 
owner named on a savings bond may request redemption. If the secondary 
owner requests redemption, he or she must provide ACH instructions.
    (xi) Registration example: ``John Doe, SSN 123-45-6789 with Joseph 
Doe, SSN 987-65-4321.''
    (c) Forms of registration for entities. The forms of registration 
available for entities are sole proprietorship; partnership; 
corporation; limited liability company or professional limited 
liability company (LLC or PLLC); trust; decedent's estate; and estate 
of a living person such as an incompetent or a minor.
    (1) Sole proprietorship. A sole proprietorship form of registration 
is available for an individual who is doing business as a sole 
proprietor. The entity account manager must be the owner of the 
business. Registration example: ``John Doe DBA Doe Plumbing Supplies, 
EIN 12-3456789, [or SSN 123-45-6789].''
    (2) Partnership. A partnership form of registration is available 
for two or more individuals who are doing business as a partnership, 
including a limited liability partnership. Unless the name of a 
partnership includes the word ``partnership,'' the registration must 
include descriptive words indicating partnership status. The entity 
account manager must be a general partner, and must certify that he or 
she has the authority to act alone on behalf of the partnership with 
regard to this account. Registration example: ``Smith and Jones 
Construction Company, a partnership, EIN 98-7654321, or SSN 987-65-
4321.''
    (3) Corporation. A corporate form of registration is available for 
an entity that has been incorporated pursuant to state law. The 
registration must contain a reference to the corporate status. The 
entity account manager must be a corporate officer or designated 
employee and must certify that he or she has the authority to act alone 
on behalf of the corporation with regard to this account. Registration 
example: ``ABC Corporation, EIN 23-4567891.''
    (4) Limited Liability Company (LLC) or Professional Limited 
Liability Company (PLLC). A LLC or PLLC form of registration is 
available for an entity that has registered articles of organization 
pursuant to state law. The registration must contain a reference to the 
company's status. The entity account manager must be a company official 
or designated employee and must certify that he or she has the 
authority to act alone on behalf of the company with regard to this 
account. Registration example: ``Paine Dental Associates, PLLC, EIN 34-
5678912'' or ``Summit Consulting Service, LLC, EIN 12-3456789.''
    (5) Trust. A trust form of registration is available. The trust 
form of registration is not available for trusts in which the trustee 
is acting on behalf of a federal, state, or local government. The 
registration must identify the trust with specificity; at a minimum, it 
must include the authority or document creating the trust, the date the 
document was executed (except in the case of a probated will when the 
date is not necessary), the name of a trustee of the trust who is 
authorized to act alone on behalf of the trust with regard to the 
account, and any information that is necessary to distinguish the trust 
from any other trust. The registration may

[[Page 19419]]

also include the names of additional trustees and the full name of the 
trust. If one or more of the trustees are individuals, and the entity 
account manager is an individual trustee, the entity account manager 
must be named in the registration. If an organization serving as a 
trustee of the trust will administer this account, the entity account 
manager must be a duly authorized employee of that organization who has 
the authority to act alone on behalf of the organization in its role as 
trustee of the trust with regard to the account, and the organization 
must be named in the registration. In either case, the entity account 
manager must certify that he or she has the authority to act alone on 
behalf of the trust with regard to the account. Registration examples: 
``John Doe, Trustee under Declaration of Trust dated January 1, 2001, 
SSN 123-45-6789;'' ``First National Bank, Trustee under Declaration of 
Trust dated January 1, 2001, EIN 12-3456789;'' ``John Doe or Sarah 
Jones, Trustees under Agreement with Jane Doe dated January 1, 2001, 
SSN 123-45-6789;'' ``Sarah Jones, Trustee under the Will of Matthew 
Smith, deceased, SSN 123-45-6789;'' ``Jane Doe, Trustee of the Doe 
Family Trust dated January 1, 2001, EIN 12-3456789.''
    (6) The estate of a decedent. The decedent's estate form of 
registration is available for an individual or organization that has 
been appointed by a court according to state law to act on behalf of 
the estate of a decedent. This form of registration is not available 
where the legal representative is acting on behalf of a federal, state, 
or local government. The entity account manager must be a court-
appointed individual legal representative who has the authority to act 
alone with regard to the account, or an employee of the court-appointed 
organizational legal representative who has the authority to act alone 
with regard to the account on behalf of the organization in its role as 
legal representative of the estate. Registration example: ``John Doe, 
Legal Representative of the Estate of William Jones, a decedent, EIN 
12-3456789, or SSN 123-45-6789.''
    (7) The estate of a living person such as an incompetent or a 
minor. A form of registration is available for an individual or 
organization that has been appointed according to state law to act on 
behalf of the estate of an incompetent person, a minor, or other living 
person. This form of registration is not available where the legal 
guardian is acting on behalf of a federal, state, or local government. 
The entity account manager must be a court-appointed legal guardian who 
has the authority to act alone with regard to the account, or an 
employee of the court-appointed organizational legal guardian who has 
the authority to act alone with regard to the account on behalf of the 
organization in its role as legal guardian. Registration example: 
``John Doe, Legal Guardian of the estate of William Jones.'' The SSN of 
the incompetent person or the minor will be used.

0
11. Revise Sec.  363.21 to read as follows:


Sec.  363.21  When may you require offline authentication and 
documentary evidence?

    We may require offline authentication and documentary evidence at 
our option.

0
12. Amend Sec.  363.22 by:
0
a. Redesignating paragraph (a) as paragraph (a)(1) and revising it;
0
b. Redesignating paragraph (b) as paragraph (a)(2) and paragraphs 
(c)(1) and (2) as paragraphs (a)(3)(i) and (ii);
0
c. Redesignating paragraph (d) as paragraph (b); and
0
d. Adding a new paragraph (c).
    The revision and addition read as follows:


Sec.  363.22  Who has the right to conduct online transactions in book-
entry securities?

    (a) Individual. (1) Single owner form of registration. A single 
owner can conduct transactions in securities held in his or her 
TreasuryDirect[supreg] account.
* * * * *
    (c) Entity. The entity account manager can conduct transactions in 
the securities held within the entity's account. Initially, the entity 
account manager is the individual who opens the account. The entity 
account manager may be changed to a different individual using 
procedures available on our Web site. The entity account manager must 
certify that he or she is authorized to act alone on behalf of the 
entity in accessing and conducting transactions on behalf of the entity 
with regard to the entity's account.

0
13. Amend Sec.  363.27 by revising the first sentence of paragraph 
(b)(1) to read as follows:


Sec.  363.27  What do I need to know about accounts for minors who have 
not had a legal guardian appointed by a court?

* * * * *
    (b) Opening an account in the name of a minor. (1) A parent or an 
individual who provides the chief financial support of a minor may open 
an account for a minor. * * *
* * * * *

0
14. Amend Sec.  363.44 by revising paragraph (a) to read as follows:


Sec.  363.44  What happens when a TreasuryDirect[supreg] account owner 
dies and the estate is entitled to securities held in the account?

    (a) Estate is being administered. For an estate that is being 
administered, the legal representative of the estate must open a 
TreasuryDirect account in the name of the estate in order to conduct 
transactions. The legal representative of the estate may then conduct 
any transactions that are available to an individual account owner. We 
will require appropriate proof of appointment for the legal 
representative of the estate. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
* * * * *

0
15. Amend Sec.  363.50 by revising paragraph (b)(1) to read as follows:


Sec.  363.50  What Treasury securities does this subpart govern?

* * * * *
    (b) * * *
    (1) The single owner or entity form of registration of any series,
* * * * *

0
16. Amend Sec.  363.55 by:
0
a. Revising the first sentence of paragraph (a) and
0
b. Revising paragraph (c) to read as follows:


Sec.  363.55  May I transfer my book-entry savings bonds to another 
person?

    (a) You may transfer a savings bond or a portion of a savings bond 
to the TreasuryDirect[supreg] account of another person in a minimum 
amount of $25. * * *
* * * * *
    (c) If the bond is being transferred to an individual, the bond 
will be transferred in the single owner form of registration. If the 
bond is being transferred to an entity, the bond will be transferred in 
the entity form of registration.
* * * * *

0
17. Amend Sec.  363.95 by revising the heading and paragraphs (a) and 
(b) to read as follows:


Sec.  363.95  How may I give, and who can receive, a book-entry savings 
bond as a gift?

* * * * *
    (a) An individual may purchase a book-entry savings bond online as 
a gift and give it to an individual; or
    (b) A person who owns a bond may transfer that bond to another 
person as a gift with immediate delivery.

0
18. Amend Sec.  363.96 by:

[[Page 19420]]

0
a. Redesignating paragraphs (a) through (d) as paragraphs (b) through 
(e), and
0
b. Adding a new paragraph (a) to read as follows:


Sec.  363.96  What do I need to know if I initially purchase a savings 
bond as a gift?

    (a) An entity may not purchase a gift savings bond.
* * * * *

0
19. Amend Sec.  363.97 by revising paragraphs (b) and (d) to read as 
follows:


Sec.  363.97  What do I need to know if I transfer a book-entry savings 
bond to another person as a gift?

* * * * *
    (b) You must provide the SSN or EIN of the recipient.
* * * * *
    (d) The bond will be transferred in the single owner form of 
registration for individual account owners, and in the entity form of 
registration for account owners that are entities.

0
20. Revise Sec.  363.137 to read as follows:


Sec.  363.137  What do I need to know about the registration of a 
certificate of indebtedness?

    A certificate of indebtedness is automatically registered in the 
name of the TreasuryDirect[supreg] account owner.

0
21. Amend Sec.  363.160 by revising paragraph (b)(1) to read as 
follows:


Sec.  363.160  What subparts govern the conversion of definitive 
savings bonds?

    (b) * * *
    (1) Converted savings bonds of any series registered in the single 
owner or entity form of registration;
* * * * *

0
22. Revise Sec.  363.161 to read as follows:


Sec.  363.161  What definitive savings bonds are eligible to be 
converted to book-entry bonds?

    Series E, Series EE, and Series I savings bonds issued in 
denominations of $25 or greater are eligible for conversion to book-
entry bonds in TreasuryDirect[supreg].

0
23. Revise Sec.  363.162 to read as follows:


Sec.  363.162  Who may convert a definitive savings bond?

    The owner of a TreasuryDirect[supreg] primary account may convert a 
definitive savings bond.
    (a) Bond that is registered to the account owner. The following 
persons may convert a definitive savings bond of an eligible series to 
a book-entry bond to be held in the person's TreasuryDirect account:
    (1) The owner of a definitive savings bond registered in the single 
owner or entity form of registration;
    (2) Either co-owner of a bond registered in the coowner form of 
registration; and
    (3) The owner of a bond registered in the owner with beneficiary 
form of registration.
    (b) Bond that is registered to someone other than the account 
owner. We will convert an eligible definitive savings bond submitted by 
an individual account owner who is not the registered owner of the 
savings bond. See the special rules in section 363.166.

0
24. Revise Sec.  363.165 to read as follows:


Sec.  363.165  What happens when I convert a savings bond that is 
registered in my name as a single owner, either coowner, an owner with 
a beneficiary, or an entity?

    (a) Unmatured savings bond. When the conversion is approved, an 
unmatured savings bond that is registered in the name of the 
TreasuryDirect[supreg] account owner as a single owner, either coowner, 
an owner with beneficiary, or an entity, will be released to the 
account owner's conversion linked account.
    (b) Matured savings bond. A savings bond that has reached final 
maturity and is registered in the name of the TreasuryDirect account 
owner as a single owner, either coowner, an owner with beneficiary, or 
an entity, will be converted to a book-entry savings bond and 
automatically redeemed. The redemption proceeds will be used to 
purchase a certificate of indebtedness in the account owner's name in 
the primary account.

0
25. Amend Sec.  363.166 by revising the introductory paragraph to read 
as follows:


Sec.  363.166  What happens when I convert a savings bond that is not 
registered in my name as a single owner, either coowner, or an owner 
with beneficiary (including a bond registered in the name of a minor)?

    We will presume that a savings bond registered in the name of 
someone other than the TreasuryDirect[supreg] account owner (including 
a bond registered in the name of a minor) was purchased by the account 
owner as a gift for the registered owner. We will not permit an entity 
to convert a savings bond that is not registered in the name of the 
entity.
* * * * *

0
26. Amend Sec.  363.168 by revising paragraph (a) to read as follows:


Sec.  363.168  What rules regarding registration apply to a converted 
savings bond?

    (a) Savings bond of any series registered in the single owner or 
entity form of registration. By converting a definitive bond of any 
eligible series registered in the single owner or entity form of 
registration to book-entry in TreasuryDirect[supreg], the owner has 
consented to the bond being governed by the rules regarding 
registration contained in subpart C of this part.
* * * * *

0
27. Amend Sec.  363.169 by:
0
a. Revising the heading;
0
b. Revising paragraph (a); and
0
c. Revising the first sentence of paragraph (b), to read as follows:


Sec.  363.169  What transactions can I conduct in a converted savings 
bond on which I am registered as the single owner, either coowner, the 
owner with a beneficiary, or an entity?

    (a) Savings bond of any series registered in the single owner or 
entity form of registration. By converting a definitive savings bond of 
any series registered in the single owner or entity form of 
registration to a book-entry bond, you have consented to the bond being 
treated as if it were originally issued as a book-entry bond in 
TreasuryDirect[supreg]. The bond will be subject to the provisions of 
subpart C of this part. Any transaction available for a book-entry bond 
originally issued in the TreasuryDirect system is available for a 
converted bond registered in single owner or entity form of 
registration.
    (b) Savings bond of Series EE and Series I registered in the owner 
with beneficiary form of registration. By converting a definitive 
savings bond registered in the owner with beneficiary form of 
registration to a book-entry bond, you have consented to the bond being 
treated as if it were originally issued as a book-entry bond in 
TreasuryDirect. * * *
* * * * *

0
28. Amend Sec.  363.171 by:
0
a. Revising paragraph (a)(1) and the first sentence of paragraph 
(a)(2); and
0
b. Revising paragraph (b)(1) to read as follows:


Sec.  363.171  How do I redeem a converted savings bond?

    (a) Before final maturity--(1) Savings bond of any series 
registered in the single owner, owner with beneficiary, or entity form 
of registration. You may redeem your converted savings bond of any 
series registered either in the single owner, owner with beneficiary, 
or entity form of registration any time prior to final maturity after 
the minimum

[[Page 19421]]

holding period through your TreasuryDirect[supreg] account.
    (2) Savings bond of any series registered in the coowner form of 
registration. The converting coowner may redeem the converted savings 
bond of any series registered in the coowner form of registration at 
any time prior to final maturity after the minimum holding period 
through his or her TreasuryDirect account. * * *
    (b) Upon final maturity--(1) Savings bond of any series registered 
in the single owner, owner with beneficiary, coowner, or entity forms 
of registration. If you have not previously redeemed or transferred 
your converted savings bond of any series registered in the single 
owner, owner with beneficiary, coowner, or entity forms of 
registration, it will be automatically redeemed for you at final 
maturity.
* * * * *

0
29. Amend Sec.  363.206 by revising paragraph (c) to read as follows:


Sec.  363.206  How can I transfer my marketable Treasury security into 
my TreasuryDirect[supreg] account from another book-entry system?

* * * * *
    (c)(1) Individuals. When a security is transferred into the 
TreasuryDirect account of an individual, it will be transferred in the 
name of the individual account owner in the single owner form of 
registration, regardless of the form of registration prior to the 
transfer. After the transfer is completed, you can change the 
registration to any form of registration permitted by these 
regulations.
    (2) Entities. When a security is transferred into the 
TreasuryDirect account of an entity, the security will be transferred 
in the name of the entity, regardless of the form of registration prior 
to the transfer.
* * * * *

    Dated: April 22, 2009.
Kenneth E. Carfine,
Fiscal Assistant Secretary.
[FR Doc. E9-9630 Filed 4-24-09; 11:15 am]
BILLING CODE 4810-39-P


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