57428 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Parts 306, 315, 353, 357, 360, 

and 363 

[Docket No. BPD–33–05–01] 

General Regulations Governing U.S. 

Securities; Regulations Governing U.S. 

Savings Bonds, Series A, B, C, D, E, F, 

G, H, J, and K, and U.S. Savings Notes; 

Regulations Governing United States 

Savings Bonds, Series EE and HH; 

Regulations Governing Book-Entry 

Treasury Bonds, Notes and Bills 

(Department of the Treasury Circular, 

Public Debt Series No. 2–86); 

Regulations Governing Definitive 

United States Savings Bonds, Series I; 

Regulations Governing Securities Held 

in the New Treasury Direct System 

AGENCY: Bureau of the Public Debt, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: New Treasury Direct is an 

account-based, book-entry, online 

system for purchasing, holding, and 

conducting transactions in Treasury 

securities. The system has been referred 

to as New Treasury Direct because there 

is an older system concurrently 

operating that is also named Treasury 

Direct, for marketable securities only, 

with different governing regulations. 

This rule renames the older version of 

Treasury Direct as Legacy Treasury 

Direct, and renames New Treasury 

Direct as, simply, TreasuryDirect (one 

word). 

In addition, this rule simplifies the 

regulatory structure for TreasuryDirect. 

Initially, we began the system with only 

one security. Since that time, we have 

added several securities to the system, 

each with its own governing subpart. 

Many of the rules in the subparts 

governing individual securities are 

repetitive. For instance, the provisions 

for decedents’ estates differ only slightly 

in subpart C (savings bonds) from 

provisions in subpart D (certificates of 

indebtedness), and subpart E (converted 

savings bonds). Rather than repeat 

similar provisions for each security, this 

rule will integrate the similar provisions 

into one provision that will apply to all 

securities in the system. The integrated 

provisions will be contained in subpart 

B, which applies to all securities held 

within the system. Provisions that affect 

only one security will be contained 

within the subpart governing that 

security. In condensing and moving 

provisions, we are not making 

substantive changes. 

We are also amending provisions 

relating to Internal Revenue Service 

levies to provide that we will honor 

levies against the secondary owner of 

securities owned in the primary/ 

secondary form of ownership if the levy 

is received at a date when the secondary 

owner has a right to redeem the 

security. 

DATES: Effective: September 30, 2005. 

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 

Securities Operations, Bureau of the 

Public Debt, at (304) 480–6319 or 

elisha.whipkey@bpd.treas.gov. 

Susan Klimas, Attorney-Adviser, 

Dean Adams, Assistant Chief Counsel, 

Edward Gronseth, Deputy Chief 

Counsel, Office of the Chief Counsel, 

Bureau of the Public Debt, at (304) 480– 

8692 or susan.klimas@bpd.treas.gov. 

SUPPLEMENTARY INFORMATION: 

TreasuryDirect is an account-based, 

online, book-entry system for 

purchasing, holding, and conducting 

transactions in Treasury securities via 

the Internet. Currently, book-entry 

Series EE and Series I savings bonds and 

certificates of indebtedness are offered 

for purchase, and definitive savings 

bonds may be converted to book-entry 

savings bonds through TreasuryDirect. 

The TreasuryDirect regulations have 

been written in a modular manner. We 

have added subparts as we have added 

securities to the system. Each subpart 

has its own provisions as to judicial 

matters, forms of registration, decedents’ 

estates, evidentiary requirements, and 

forfeiture procedures. This is because it 

was unclear when we began the system 

with savings bonds what securities 

would later be added, and whether 

these securities would have the same 

terms and conditions as the savings 

bonds already in the system. Now, it is 

clear that many of the administrative 

provisions for all securities will be 

similar. Therefore, we have removed 

some provisions from the subparts 

specific to the securities, and added 

consolidated provisions to the subpart 

that is common to all securities held in 

TreasuryDirect. This will better clarify 

the terms and conditions for forms of 

registration, decedents’ estates, judicial 

proceedings, evidentiary requirements, 

and forfeiture procedures, and will 

tailor these provisions to the system’s 

current and planned configuration. We 

originally placed these provisions, and 

others, into subpart C, which deals 

specifically with book-entry savings 

bonds, subpart D, which deals 

specifically with certificates of 

indebtedness, and subpart E, which 

deals with converted savings bonds. We 

are moving these provisions to subpart 

B, which is a subpart that is common to 

all securities held within the 

TreasuryDirect system. Generally, the 

substance of the moved provisions has 

not been changed, other than to make 

references to securities in general rather 

than to a specific security. 

We are amending the provisions 

regarding Internal Revenue Service 

levies to provide that we will honor 

levies against the secondary owner of 

securities owned in the primary/ 

secondary form of ownership if the levy 

is received at a time when the secondary 

owner has a right to redeem the 

security. Previously, levies were 

honored only against ‘‘owners’’ as 

defined in the TreasuryDirect governing 

regulations. Owners were defined as 

‘‘either a single owner, the first person 

named in the registration of a security 

held in the owner with beneficiary form 

of registration, the primary owner of a 

security held in the primary owner with 

secondary owner form of registration, or 

either coowner of a converted savings 

bond.’’ IRS levies were not permitted 

against secondary owners because of the 

nature of the ownership interest. 

However, during periods when a 

secondary owner has been given the 

right to redeem, he or she has an interest 

sufficient for an IRS levy to attach. 

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 

31 CFR Part 306 

Government securities. 

31 CFR Part 315 

Bonds. 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57429 

31 CFR Part 353 

Bonds. 

31 CFR Part 357 

Banks, Banking, Bonds, Electronic 

funds transfers, Government securities, 

Reporting and recordkeeping 

requirements. 

31 CFR Part 360 

Bonds. 

31 CFR Part 363 

Bonds, Electronic funds transfer, 

Federal Reserve system, Government 

securities, Securities. 

■ Accordingly, for the reasons set out in 

the preamble, 31 CFR chapter II, 

subchapter B, is amended as follows: 

PART 306—GENERAL REGULATIONS 

GOVERNING U.S. SECURITIES 

■ 1. The authority citation of part 306 

continues to read as follows: 

Authority: 31 U.S.C. Chapter 31; 5 U.S.C. 

301; 12 U.S.C. 391. 

■ 2. Amend § 306.2 by adding paragraph 

(u) to read as follows: 

§ 306.2 Definitions of words and terms as 

used in these regulations. 

* * * * * 

(u) Voluntary representative means 

the person qualified by the Department 

of the Treasury to request payment or 

make an assignment of a decedent’s 

securities pursuant to § 306.65. 

■ 3. Revise § 306.65 to read as follows: 

§ 306.65 Decedent’s estate. 

(a) Estate is being administered. (1) A 

legal representative of a deceased 

owner’s estate may request payment of 

matured securities to the estate, or may 

assign securities to or for the benefit of 

the persons entitled. 

(2) Appropriate proof of appointment 

for the legal representative of the estate 

is required. Letters of appointment must 

be dated not more than one year prior 

to the date of submission of the letters 

of appointment. 

(b) Estate has been settled previously. 

If the estate has been settled previously 

through judicial proceedings, the 

persons entitled may request payment of 

matured securities, or may request 

assignment of unmatured securities. A 

certified copy of the court-approved 

final accounting for the estate, the 

court’s decree of distribution, or other 

appropriate evidence is required. 

(c) Special provisions under the law of 

the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the estate is to be appointed, the person 

appointed to receive or distribute the 

assets of a decedent’s estate without 

regular administration under summary 

or small estates procedures under 

applicable local law may request 

payment of matured securities, or may 

request assignment of the securities. 

Appropriate evidence is required. 

(d) When administration is required. 

If the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(e) Voluntary representative for small 

estates that are not being otherwise 

administered. (1) General. A voluntary 

representative is a person qualified 

according to paragraph (e)(3) of this 

section, to request payment of a 

decedent’s matured securities or to 

make an assignment of a decedent’s 

unmatured securities. The voluntary 

representative procedures are for the 

convenience of the Department; 

entitlement to the decedent’s securities 

and held payments, if any, is 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

Voluntary representative procedures 

may be used only if: 

(i) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(ii) The total redemption value of the 

Treasury securities and held payments, 

if any, held directly on our records that 

are the property of the decedent’s estate 

is $100,000 or less as of the date of 

death; and 

(iii) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (e)(3) of this 

section. 

(2) Authority of voluntary 

representative. A voluntary 

representative may: 

(i) Request payment of the decedent’s 

matured securities on behalf of the 

persons entitled by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death; 

(ii) Assign the decedent’s securities to 

the persons entitled by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

(3) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: a 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. As used 

in this order of precedence, child means 

a natural or adopted child of the 

decedent. 

(4) Liability. By serving, the voluntary 

representative warrants that the 

distribution of payments or securities is 

to or on behalf of the persons entitled 

by the law of the jurisdiction in which 

the decedent was domiciled at the date 

of death. The United States is not liable 

to any person for the improper 

distribution of payments or securities. 

Upon payment or assignment of the 

securities at the request of the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

no greater than the value received by the 

voluntary representative. 

(f) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for the amount of the debt, 

providing the debt has not been barred 

by applicable local law. The claim may 

only be satisfied by the proceeds of 

matured securities. 

§§ 306.66 and 306.67 [Removed and 

Reserved] 

■ 4. Remove and reserve §§ 306.66 and 

306.67. 

57430 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

PART 315—REGULATIONS 

GOVERNING U.S. SAVINGS BONDS, 

SERIES A, B, C, D, E, F, G, H, J, AND 

K, AND U.S. SAVINGS NOTES 

■ 5. The authority citation of part 315 

continues to read as follows: 

Authority: 31 U.S.C. 3105 and 5 U.S.C. 

301. 

■ 6. Amend § 315.2 by adding paragraph 

(r) to read as follows: 

§ 315.2 Definitions. 

* * * * * 

(r) Voluntary representative means the 

person qualified by the Department of 

the Treasury to request payment or 

distribution of a decedent’s savings 

bonds pursuant to § 315.71. 

■ 7. Revise § 315.71 to read as follows: 

§ 315.71 Decedent’s estate. 

(a) Estate is being administered. (1) A 

legal representative of a deceased 

owner’s estate may request payment of 

savings bonds to the estate, or may 

distribute the savings bonds to the 

persons entitled. 

(2) Appropriate proof of appointment 

for the legal representative of the estate 

is required. Letters of appointment must 

be dated not more than one year prior 

to the date of submission of the letters 

of appointment. 

(b) Estate has been settled previously. 

If the estate has been settled previously 

through judicial proceedings, the 

persons entitled may request payment 

or reissue of the savings bonds. A 

certified copy of the court-approved 

final accounting for the estate, the 

court’s decree of distribution, or other 

appropriate evidence is required. 

(c) Special provisions under the law of 

the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the estate is to be appointed, the person 

appointed to receive or distribute the 

assets of a decedent’s estate without 

regular administration under summary 

or small estates procedures under 

applicable local law may request 

payment or reissue of savings bonds. 

Appropriate evidence is required. 

(d) When administration is required. 

If the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(e) Voluntary representative for small 

estates that are not being otherwise 

administered. (1) General. A voluntary 

representative is a person qualified 

according to paragraph (e)(3) of this 

section, to redeem or to distribute a 

decedent’s savings bonds. The voluntary 

representative procedures are for the 

convenience of the Department; 

entitlement to the decedent’s savings 

bonds and held payments, if any, is 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

Voluntary representative procedures 

may be used only if: 

(i) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(ii) The total redemption value of the 

Treasury securities and held payments, 

if any, held directly on our records that 

are the property of the decedent’s estate 

is $100,000 or less as of the date of 

death; and 

(iii) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (e)(3) of this 

section. 

(2) Authority of voluntary 

representative. A voluntary 

representative may: 

(i) Redeem the decedent’s savings 

bonds on behalf of the persons entitled 

by the law of the jurisdiction in which 

the decedent was domiciled at the date 

of death; 

(ii) Distribute the decedent’s savings 

bonds to the persons entitled by the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. 

(3) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: A 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. As used 

in this order of precedence, child means 

a natural or adopted child of the 

decedent. 

(4) Liability. By serving, the voluntary 

representative warrants that the 

distribution of payments or savings 

bonds is to the persons entitled by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The United States is not liable to 

any person for the improper distribution 

of payments or savings bonds. Upon 

payment or distribution of the savings 

bonds at the request of the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

no greater than the value received by the 

voluntary representative. 

(f) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for payment for the amount of 

the debt, providing the debt has not 

been barred by applicable local law. 

PART 353—REGULATIONS 

GOVERNING UNITED STATES 

SAVINGS BONDS, SERIES EE AND HH 

■ 8. The authority citation of part 353 

continues to read as follows: 

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

U.S.C. 3105, 3125. 

■ 9. Amend § 353.2 by adding paragraph 

(n) to read as follows: 

§ 353.2 Definitions. 

* * * * * 

(n) Voluntary representative means 

the person qualified by the Department 

of the Treasury to request payment or 

distribution of a decedent’s savings 

bonds pursuant to § 353.71. 

■ 10. Revise § 353.71 to read as follows: 

§ 353.71 Decedent’s estate. 

(a) Estate is being administered. (1) A 

legal representative of a deceased 

owner’s estate may request payment of 

savings bonds to the estate, or may 

distribute the savings bonds to the 

persons entitled. 

(2) Appropriate proof of appointment 

for the legal representative of the estate 

is required. Letters of appointment must 

be dated not more than one year prior 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57431 

to the date of submission of the letters 

of appointment. 

(b) Estate has been settled previously. 

If the estate has been settled previously 

through judicial proceedings, the 

persons entitled may request payment 

or reissue of savings bonds. A certified 

copy of the court-approved final 

accounting for the estate, the court’s 

decree of distribution, or other 

appropriate evidence is required. 

(c) Special provisions under the law of 

the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the estate is to be appointed, the person 

appointed to receive or distribute the 

assets of a decedent’s estate without 

regular administration under applicable 

local law summary or small estates 

procedures may request payment or 

reissue of savings bonds. Appropriate 

evidence is required. 

(d) When administration is required. 

If the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(e) Voluntary representative for small 

estates that are not being otherwise 

administered. (1) General. A voluntary 

representative is a person qualified 

according to paragraph (e)(3) of this 

section, to redeem or distribute a 

decedent’s savings bonds. The voluntary 

representative procedures are for the 

convenience of the Department; 

entitlement to the decedent’s savings 

bonds and held payments, if any, is 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

Voluntary representative procedures 

may be used only if: 

(i) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(ii) The total redemption value of the 

Treasury securities and held payments, 

if any, held directly on our records that 

are the property of the decedent’s estate 

is $100,000 or less as of the date of 

death; and 

(iii) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (e)(3) of this 

section. 

(2) Authority of voluntary 

representative. A voluntary 

representative may: 

(i) Redeem the decedent’s savings 

bonds that are eligible for redemption 

on behalf of the persons entitled by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death; 

(ii) Distribute the decedent’s savings 

bonds to the persons entitled by the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. 

(3) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: A 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. As used 

in this order of precedence, child means 

a natural or adopted child of the 

decedent. 

(4) Liability. By serving, the voluntary 

representative warrants that the 

distribution of payments or savings 

bonds is to the persons entitled by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The United States is not liable to 

any person for the improper distribution 

of payments or securities. Upon 

payment or transfer of the securities at 

the request of the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

no greater than the value received by the 

voluntary representative. 

(f) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for the amount of the debt, 

providing the debt has not been barred 

by applicable local law. 

PART 357—REGULATIONS 

GOVERNING BOOK-ENTRY 

TREASURY BONDS, NOTES AND 

BILLS HELD IN LEGACY TREASURY 

DIRECT 

■ 11. 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. 

■ 12. Revise the heading for part 357 to 

read as set forth above. 

■ 13. In part 357, the phrases 

‘‘TREASURY DIRECT,’’ ‘‘Treasury 

Direct,’’ and ‘‘TreasuryDirect’’ are 

revised to read ‘‘Legacy Treasury 

Direct’’ wherever they appear. 

■ 14. Amend § 357.0 by revising 

paragraph (c) to read as follows: 

§ 357.0 Book-entry systems. 

* * * * * 

(c) TreasuryDirect system. 

TreasuryDirect is an Internet-based 

book-entry system maintained by the 

Department of the Treasury. The 

regulations governing TreasuryDirect 

are found at part 363 of this chapter. 

Legacy Treasury Direct is a separate, 

non-Internet-based book-entry system 

for marketable Treasury securities only. 

■ 15. Amend § 357.2 by adding the 

definition of ‘‘Voluntary representative’’

in alphabetical order, to read as follows: 

§ 357.2 Definitions. 

* * * * * 

Voluntary representative means the 

person qualified by the Department of 

the Treasury to accept payment or direct 

distribution of a decedent’s securities 

pursuant to § 357.28. 

■ 16. Amend § 357.28 by revising 

paragraph (c) to read as follows: 

§ 357.28 Transaction requests. 

* * * * * 

(c) Representatives. 

(1) General. Any representative of an 

owner’s estate, other than a trustee, may 

execute a transaction request form if the 

representative submits to the 

Department properly authenticated 

evidence of the authority to act. The 

evidence will not be accepted if dated 

more than one year prior to the date of 

submission of the transaction request. 

(2) Decedent’s estate has been settled 

previously. If a decedent’s estate has 

been settled previously through judicial 

proceedings, the persons entitled may 

57432 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

make a transaction request. A certified 

copy of the court-approved final 

accounting for the estate, the court’s 

decree of distribution, or other 

appropriate evidence will be required. 

(3) Special provisions under the law 

of the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the decedent’s estate is to be appointed, 

the person appointed to receive or 

distribute the assets of a decedent’s 

estate without regular administration 

under applicable local law summary or 

small estates procedures may make a 

transaction request. Appropriate 

evidence will be required. 

(4) When administration is required. If 

the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(5) Voluntary representative for small 

estates of decedents that are not being 

otherwise administered. (i) General. A 

voluntary representative is a person 

qualified according to paragraph 

(c)(5)(iii) of this section, to make a 

transaction request. The voluntary 

representative procedures are for the 

convenience of the Department; 

entitlement to the decedent’s securities 

and held payments, if any, is 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

Voluntary representative procedures 

may be used only if: 

(A) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(B) The total redemption value of the 

Treasury securities and held payments, 

if any, that are the property of the 

decedent’s estate is $100,000 or less as 

of the date of death; and 

(C) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (c)(5)(iii) of this 

section. 

(ii) Authority of voluntary 

representative. A voluntary 

representative may make a transaction 

request to distribute the securities to or 

for the benefit of the persons entitled by 

laws of the jurisdiction in which the 

decedent was domiciled at the date of 

death. 

(iii) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: A 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. As used 

in this order of precedence, child means 

a natural or adopted child of the 

decedent. 

(iv) Liability. By serving, the 

voluntary representative warrants that 

the distribution of securities or proceeds 

is to or on behalf of the persons entitled 

by the law of the jurisdiction in which 

the decedent was domiciled at the date 

of death. The United States is not liable 

to any person for the improper 

distribution of securities or proceeds. 

Upon distribution of the securities or 

proceeds at the request of the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

no greater than the value received by the 

voluntary representative. 

(v) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for payment of the amount of 

the debt, providing the debt has not 

been barred by applicable local law. 

* * * * * 

PART 360—REGULATIONS 

GOVERNING DEFINITIVE UNITED 

STATES SAVINGS BONDS, SERIES I 

■ 17. The authority citation for part 360 

continues to read as follows: 

Authority: 5 U.S.C. 301; 31 U.S.C. 3105 

and 3125. 

■ 18. Amend § 360.2 by adding 

paragraph (n) to read as follows: 

§ 360.2 Definitions. 

* * * * * 

(n) Voluntary representative means 

the person qualified by the Department 

of the Treasury to request payment or 

distribution of a decedent’s savings 

bonds pursuant to § 360.71. 

■ 19. Amend § 360.70 by revising the 

second sentence of the introductory 

paragraph, to read as follows: 

§ 360.70 General rules governing 

entitlement. 

* * * Appropriate proof of death will 

be required. 

* * * * * 

■ 20. Revise § 360.71 to read as follows: 

§ 360.71 Decedent’s estate. 

(a) Estate is being administered. (1) A 

legal representative of a deceased 

owner’s estate may request payment of 

savings bonds to the estate, or may 

distribute the savings bonds to the 

persons entitled. 

(2) Appropriate proof of appointment 

for the legal representative of the estate 

is required. Letters of appointment must 

be dated not more than one year prior 

to the date of submission of the letters 

of appointment. 

(b) Estate has been settled previously. 

If the estate has been settled previously 

through judicial proceedings, the 

persons entitled may request payment 

or reissue of the savings bonds. A 

certified copy of the court-approved 

final accounting for the estate, the 

court’s decree of distribution, or other 

appropriate evidence is required. 

(c) Special provisions under the law of 

the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the estate is to be appointed, the person 

appointed to receive or distribute the 

assets of a decedent’s estate without 

regular administration under applicable 

local law summary or small estates 

procedures may request payment or 

reissue of savings bonds. Appropriate 

evidence is required. 

(d) When administration is required. 

If the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57433 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(e) Voluntary representative for small 

estates that are not being otherwise 

administered. (1) General. A voluntary 

representative is a person qualified 

according to paragraph (e)(3) of this 

section, to request payment or 

distribution of a decedent’s savings 

bonds. The voluntary representative 

procedures are for the convenience of 

the Department; entitlement to the 

decedent’s savings bonds and held 

payments, if any, is determined by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death. Voluntary representative 

procedures may be used only if: 

(i) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(ii) The total redemption value of the 

Treasury securities and held payments, 

if any, held directly on our records that 

are the property of the decedent’s estate 

is $100,000 or less as of the date of 

death; and 

(iii) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (e)(3) of this 

section. 

(2) Authority of voluntary 

representative. A voluntary 

representative may: 

(i) Redeem the decedent’s savings 

bonds that are eligible for redemption 

on behalf of the persons entitled by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death; 

(ii) Distribute the decedent’s savings 

bonds to the persons entitled by the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. 

(3) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: A 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. As used 

in this order of precedence, child means 

a natural or adopted child of the 

decedent. 

(4) Liability. By serving, the voluntary 

representative warrants that the 

distribution of payments or savings 

bonds is to the persons entitled by the 

law of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The United States is not liable to 

any person for the improper distribution 

of payments or securities. Upon 

payment or distribution of the securities 

at the request of the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

no greater than the value received by the 

voluntary representative. 

(f) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for payment of the amount of 

the debt, providing the debt has not 

been barred by applicable local law. 

PART 363—REGULATIONS 

GOVERNING SECURITIES HELD IN 

TREASURYDIRECT 

■ 21. 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. 

■ 22. Revise the heading for part 363 to 

read as set forth above. 

■ 23–24. In part 363, revise all 

references to ‘‘New Treasury Direct’’ to 

read ‘‘TreasuryDirect’’ wherever they 

appear. 

■ 25. Amend § 363.6 by: 

■ a. Removing all references to 

‘‘§ 363.15’’ and adding in their places 

the reference ‘‘§ 363.10’’; 

■ b. Adding the definition of ‘‘Voluntary 

representative’’ in alphabetical order; 

■ c. Revising the definition of ‘‘Final 

maturity of a savings bond;’’

■ d. Revising the definition of ‘‘Minor 

linked account,’’ and 

■ e. Revising footnote 1 to read as 

follows: 

§ 363.6 What special terms do I need to 

know to understand this part? 

* * * * * 

Final maturity of a savings bond 

means the date beyond which an 

unredeemed savings bond no longer 

earns interest.1

* * * * * 

Minor account means an account that 

a custodian controls on behalf of a 

minor, that is linked to the custodian’s 

primary account. (See §§ 363.10 and 

363.27 for more information about 

minor accounts.) 

* * * * * 

Voluntary representative means the 

person qualified by the Department of 

the Treasury to accept payment or direct 

distribution of a decedent’s securities 

pursuant to § 363.44. 

* * * * * 1Series EE and Series I savings bonds 

currently have an original maturity 

period of 20 years and an extended 

maturity period of 10 years beyond 

original maturity during which the 

bonds continue to earn interest. 

■ 26. Revise the heading for Subpart B 

to read as follows: 

Subpart B—General Provisions 

Governing Securities Held in 

TreasuryDirect 

■ 26a. Transfer §§ 363.9 through 363.14 

to subpart B. 

■ 27. Add § 363.9 to read as follows: 

§ 363.9 What does this subpart cover? 

This subpart provides general rules 

governing securities held within the 

TreasuryDirect system. Provisions in the 

subparts governing specific securities 

that conflict with these general rules 

will supersede these general rules. 

■ 28. Redesignate §§ 363.15 and 363.16 

as §§ 363.10 and 363.11, respectively. 

■ 29. Add § 363.12 to read as follows: 

§ 363.12 Who may purchase and hold 

book-entry securities in TreasuryDirect? 

(a) A TreasuryDirect account owner 

may purchase and hold securities 

through his or her account. 

(b) We do not permit a legally 

incompetent person to open an account, 

purchase securities, or convert savings 

bonds once we have been provided with 

an order from a court with appropriate 

jurisdiction determining incompetence 

to perform such activities. 

(c) We do not permit a legal 

representative, a legal guardian, or a 

voluntary representative to purchase 

securities on behalf of the estate of a 

decedent or an incompetent person. 

(d) We may reject any application for 

the purchase of a security, in whole or 

57434 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

in part. We may refuse to issue a 

security in any case or class of cases, if 

we deem the action to be in the public 

interest. Our decision in any such 

respect is final. 

■ 30. Redesignate §§ 363.17 through 

363.23 as §§ 363.13 through 363.19, 

respectively. 

■ 31. Add new § 363.20 to read as 

follows: 

§ 363.20 What do I need to know about the 

forms of registration that are available for 

purchases of securities through my 

TreasuryDirect account? 

(a) General principles. (1) Registration 

must express the actual ownership of, 

and interest in, the security. Registration 

conclusively establishes ownership of a 

security. 

(2) You must provide a last name and 

a first name for each individual 

included in the registration of the 

security. 

(3) You must provide the valid 

taxpayer identification number for each 

person named in the registration of the 

security. 

(b) Forms of registration. The forms of 

registration available for purchases of 

securities made through your 

TreasuryDirect account are single 

owner, owner with beneficiary, and 

primary owner with secondary owner, 

unless the forms of registration available 

for a security are specifically limited by 

the subpart governing that security. 

(c) Single owner. (1) 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. 

(2) A single owner may add a 

beneficiary or secondary owner. 

(3) A single owner may conduct 

permitted online transactions on 

securities held in his or her account. 

(4) 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. 

(5) Registration example: ‘‘John Doe, 

SSN 123–45–6789.’’

(d) Owner with beneficiary. (1) The 

purchaser must be named as the owner 

with another individual as beneficiary. 

(2) The owner may remove or change 

the beneficiary without the consent of 

the beneficiary. 

(3) The owner may conduct permitted 

online transactions on securities held in 

his or her account without the consent 

of the beneficiary. 

(4) 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. 

(5) If the beneficiary does not survive 

the owner, the security belongs to the 

estate of the owner. 

(6) 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. 

(7) 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. 

(8) Registration example: ‘‘John Doe, 

SSN 123–45–6789 POD (payable on 

death to) Jane Doe, SSN 987–65–4321.’’

(e) Primary owner with secondary 

owner. (1) The purchaser must be 

named in the registration as the primary 

owner with another individual as 

secondary owner. 

(2) The primary owner holds the 

securities in his or her account and may 

view or conduct permitted online 

transactions in the securities. 

(3) The primary owner may remove 

the secondary owner without the 

consent of the secondary owner. 

(4) The secondary owner has no rights 

to view or conduct transactions in any 

security unless the primary owner gives 

the secondary owner these rights. 

(5) 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. 

(6) 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 his or 

her account, and the secondary owner 

may view and conduct transactions in 

the security using his or her own 

account. 

(7) The primary owner may revoke 

any rights previously given to the 

secondary owner at any time. 

(8) 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. 

(9) 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. 

(10) 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. 

(11) Registration example: ‘‘John Doe, 

SSN 123–45–6789 with Joseph Doe, 

SSN 987–65–4321.’’

■ 32. Redesignate §§ 363.24 as § 363.21. 

■ 33. Add new § 363.22 to read as 

follows: 

§ 363.22 Who has the right to conduct 

online transactions in book-entry 

securities? 

(a) Single owner form of registration. 

A single owner can conduct transactions 

in securities held in his or her 

TreasuryDirect account. 

(b) Owner with beneficiary form of 

registration. The owner can conduct 

transactions in securities held in his or 

her TreasuryDirect account. The 

beneficiary has no rights during the 

lifetime of the owner and therefore 

cannot conduct transactions in the 

securities. 

(c) Primary owner with secondary 

owner form of registration. The primary 

owner can conduct transactions in 

securities held in his or her 

TreasuryDirect account. The secondary 

owner can redeem savings bonds using 

his or her TreasuryDirect account 

providing the secondary owner has the 

right to redeem at the time of the 

transaction. 

(d) Converted savings bonds. The 

rules for transactions governing 

converted savings bonds are contained 

in subpart E of this part. 

§§ 363.23 and 363.24 [Reserved] 

■ 34. Add and reserve new §§ 363.23 

and 363.24. 

■ 35. Add §§ 363.28 and 363.29 to read 

as follows: 

§ 363.28 Does Public Debt reserve the 

right to require that any TreasuryDirect 

transaction be conducted in paper form? 

We reserve the right to require any 

transaction to be conducted in paper 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57435 

form. Signatures on paper transactions 

must be certified or guaranteed as 

provided in § 363.43. 

§ 363.29 May Treasury close an account, 

suspend transactions in an account, or 

refuse to open an account? 

We reserve the right to take any of the 

following actions if, in our sole 

discretion, we deem the action to be in 

the best interests of the United States: 

(a) Refuse to open an account for any 

person; 

(b) Close any existing account; 

(c) Suspend transactions with respect 

to an account or any security held in an 

account; or 

(d) Take any other action with regard 

to any account that we deem necessary, 

if not inconsistent with existing law and 

existing rights. 

■ 36. Amend § 363.42 by removing the 

words ‘‘Series I’’ from the section. 

■ 37. Amend § 363.43 by revising 

paragraph (a)(4)(i) to read as follows: 

§ 363.43 What are the procedures for 

certifying my signature on an offline 

application for a TreasuryDirect account, or 

on an offline transaction form? 

(a) * * * * * 

(4) * * * * * 

(i) We require a statement that the 

person executing the assignment is one 

whose signature the officer is authorized 

to certify under our regulations. 

* * * * * 

■ 38. Add §§ 363.44, 363.45, and 363.46 

to read as follows: 

§ 363.44 What happens when a 

TreasuryDirect account owner dies and the 

estate is entitled to securities held in the 

account? 

(a) Estate is being administered. (1) A 

legal representative of a deceased 

owner’s estate may request payment of 

securities, if the securities are eligible 

for payment, to the estate or to the 

persons entitled, or may request transfer 

of the securities to the TreasuryDirect 

account of the persons entitled, if the 

securities are eligible for transfer. 

(2) 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. 

(3) The legal representative of the 

estate may not purchase securities on 

behalf of the estate. 

(4) If payment is requested, we will 

require ACH instructions to process the 

request. 

(b) Estate has been settled previously. 

If the estate has been settled previously 

through judicial proceedings, the 

persons entitled may request payment of 

securities, if the securities are eligible 

for redemption, or may transfer the 

securities to the TreasuryDirect 

accounts of the persons entitled, if the 

securities are eligible for transfer. We 

will require a certified copy of the courtapproved final accounting for the estate, 

the court’s decree of distribution, or 

other appropriate evidence. If payment 

is requested, we will require ACH 

instructions to process the request. 

(c) Special provisions under the law of 

the jurisdiction of the decedent’s 

domicile. If there is no formal or regular 

administration and no representative of 

the estate is to be appointed, the person 

appointed to receive or distribute the 

assets of a decedent’s estate without 

regular administration under summary 

or small estates procedures under 

applicable local law may request 

payment of securities, if the securities 

are eligible for redemption, or may 

transfer the securities to or on behalf of 

the persons entitled by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death, if the 

securities are eligible for transfer. We 

will require appropriate evidence. If 

payment is requested, we will require 

ACH instructions to process the request. 

(d) When administration is required. 

If the total redemption value of the 

Treasury securities and undelivered 

payments, if any, held directly on our 

records that are the property of the 

decedent’s estate is greater than 

$100,000, administration of the 

decedent’s estate will be required. The 

redemption value of savings bonds and 

the principal amount of marketable 

securities will be used to determine the 

value of securities, and will be 

determined as of the date of death. 

Administration may also be required at 

the discretion of the Department for any 

case. 

(e) Voluntary representative for small 

estates that are not being otherwise 

administered. (1) General. A voluntary 

representative is a person qualified 

according to paragraph (e)(3) of this 

section, to redeem or transfer a 

decedent’s securities. The voluntary 

representative procedures are for the 

convenience of the Department; 

entitlement to the decedent’s securities 

and held payments, if any, is 

determined by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

Voluntary representative procedures 

may be used only if: 

(i) There has been no administration, 

no administration is contemplated, and 

no summary or small estate procedures 

under applicable local law have been 

used; 

(ii) The total redemption value of the 

Treasury securities and held payments, 

if any, held directly on our records that 

are the property of the decedent’s estate 

is $100,000 or less, as of the date of 

death, and 

(iii) There is a person eligible to serve 

as the voluntary representative 

according to paragraph (e)(3) of this 

section. 

(2) Authority of voluntary 

representative. A voluntary 

representative may: 

(i) Redeem the decedent’s savings 

bonds that are eligible for redemption. 

Payment may be made to the voluntary 

representative on behalf of or directly to 

the persons entitled by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death; 

(ii) Transfer the decedent’s securities 

to the persons entitled by the law of the 

jurisdiction in which the decedent was 

domiciled at the date of death. 

(3) Order of precedence for voluntary 

representative. An individual eighteen 

years of age or older may act as a 

voluntary representative according to 

the following order of precedence: a 

surviving spouse; if there is no 

surviving spouse, then a child of the 

decedent; if there are none of the above, 

then a descendant of a deceased child 

of the decedent; if there are none of the 

above, then a parent of the decedent; if 

there are none of the above, then a 

brother or sister of the decedent; if there 

are none of the above, then a descendant 

of a deceased brother or sister of the 

decedent; if there are none of the above, 

then a next of kin of the decedent, as 

determined by the laws of the 

decedent’s domicile at the date of death. 

As used in this order of precedence, 

child means a natural or adopted child 

of the decedent. 

(4) Liability. By serving, the voluntary 

representative warrants that the 

distribution of payments or securities 

are to or on behalf of the persons 

entitled by the law of the jurisdiction in 

which the decedent was domiciled at 

the date of death. The United States is 

not liable to any person for the improper 

distribution of payments or securities. 

Upon payment or transfer of the 

securities to the voluntary 

representative, the United States is 

released to the same extent as if it had 

paid or delivered to a representative of 

the estate appointed pursuant to the law 

of the jurisdiction in which the 

decedent was domiciled at the date of 

death. The voluntary representative 

shall indemnify and hold harmless the 

United States and all creditors and 

persons entitled to the estate of the 

decedent. The amount of the 

indemnification is limited to an amount 

57436 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

no greater than the value received by the 

voluntary representative. 

(5) Creditor. If there has been no 

administration, no administration is 

contemplated, no summary or small 

estate procedures under applicable local 

law have been used, and there is no 

person eligible to serve as a voluntary 

representative pursuant to paragraph (e) 

of this section, then a creditor may make 

a claim for payment of the amount of 

the debt, providing the debt has not 

been barred by applicable local law. 

§ 363.45 What are the rules for judicial and 

administrative actions involving securities 

held in TreasuryDirect? 

(a) Notice of adverse claim or pending 

judicial proceedings. We are not subject 

to and will not accept a notice of an 

adverse claim or notice of pending 

judicial proceedings involving a 

security held in TreasuryDirect. 

(b) Competing claims to a security. 

The Department of the Treasury, Public 

Debt, and the Federal Reserve Banks are 

not proper defendants in a judicial 

proceeding involving competing claims 

to a security held in TreasuryDirect. 

(c) Divorce decree. We will recognize 

a divorce decree that either disposes of 

a security held in TreasuryDirect or 

ratifies a property settlement agreement 

disposing of a security that is the 

property of either of the parties. If the 

divorce decree does not set out the 

terms of the property settlement 

agreement, we will require a certified 

copy of the agreement. 

(d) Final court order. We will 

recognize a final order entered by a 

court that affects ownership rights in a 

security held in TreasuryDirect only to 

the extent that the order is consistent 

with the provisions of this part. The 

owner of the security must be a party to 

the proceedings. 

(e) Levy to satisfy money judgment. 

We will honor a transaction request 

submitted by a person appointed by a 

court and having authority under an 

order of a court to dispose of a security 

held in TreasuryDirect pursuant to a 

money judgment against the owner of 

the security, as owner is defined in 

section 363.6 of this part. In the case of 

savings bonds, we will only make 

payment pursuant to the court order to 

the extent of the money judgment. We 

will not transfer the savings bonds. 

(f) IRS levy. We will honor an IRS 

notice of levy under section 6331 of the 

Internal Revenue Code with respect to: 

(1) The owner, as owner is defined in 

section 363.6 of this part; and 

(2) A secondary owner, if the 

secondary owner has the right to 

conduct transactions in a security at the 

date and time the notice of levy is 

delivered to Public Debt. 

(g) Trustee in bankruptcy, a receiver 

of an insolvent’s estate, a receiver in 

equity, or a similar court officer. We 

will honor a transaction request 

submitted by a trustee in bankruptcy, a 

receiver of an insolvent’s estate, a 

receiver in equity, or a similar court 

officer, if the original court order is 

against the owner, as owner is defined 

in § 363.6 of this part. In the case of 

savings bonds, we will only make 

payment. We will not transfer the 

savings bonds. 

(h) Court order that attempts to defeat 

or impair survivorship rights. We will 

not recognize a court order that attempts 

to defeat or impair the survivorship 

rights of a beneficiary, secondary owner, 

coowner of a converted savings bond, or 

the registered owner of an undelivered 

gift security held in TreasuryDirect. 

§ 363.46 What evidence is required to 

establish the validity of judicial 

proceedings? 

(a) We will require certified copies of 

the final judgment, decree, or court 

order, and any necessary supplementary 

proceedings. 

(b) A transaction request by a trustee 

in bankruptcy or a receiver of an 

insolvent’s estate must be supported by 

evidence of appointment and 

qualification. 

(c) A transaction request by a receiver 

in equity or a similar court officer (other 

than a receiver of an insolvent’s estate) 

must be supported by a copy of an order 

that authorizes the receiver or similar 

court officer to take possession and 

control of the security. 

■ 39. Add §§ 363.47 to read as follows: 

§ 363.47 Will Public Debt pay Treasury 

securities pursuant to a forfeiture 

proceeding? 

(a) General. We will honor a judicial 

or administrative forfeiture order or 

declaration of forfeiture submitted by a 

federal agency. We will rely exclusively 

upon the information provided by the 

Federal forfeiting agency and will not 

make any independent evaluation of the 

validity of the forfeiture order, the 

request for payment, or the authority of 

the individual signing the transaction 

request. The amount to be paid or 

transferred is limited to the value of the 

security as of the date of forfeiture. 

(b) Definition of special terms relating 

to forfeitures. 

Contact point means the individual 

designated by the Federal investigative 

agency, United States Attorney’s Office, 

or forfeiting agency, to receive referrals 

from Public Debt. 

Forfeiting agency means the federal 

law enforcement agency responsible for 

the forfeiture. 

Forfeiture means the process by 

which property may be forfeited by a 

federal agency. Administrative forfeiture 

is forfeiture by a federal agency without 

judicial proceedings resulting in a 

declaration of forfeiture; judicial 

forfeiture is a forfeiture through either a 

civil or criminal proceeding in a United 

States District Court resulting in a final 

judgment and order of forfeiture. 

(c) Procedures for a forfeiting agency 

to request forfeiture of Treasury 

securities. A forfeiting agency must 

request forfeiture. An individual 

authorized by the forfeiting agency must 

sign the transaction request. The request 

must be mailed to the Department of the 

Treasury, Bureau of the Public Debt, 

Parkersburg, WV 26106–7015. 

(d) Public Debt procedures upon 

receipt of forfeiture request. Upon 

receipt and review of the transaction 

request, we will make payment to the 

forfeiture fund specified, if the security 

is eligible for payment, or we will 

transfer the security pursuant to the 

transaction request. We will record the 

forfeiture, the forfeiture fund into which 

the proceeds were paid or the security 

transfer records, the contact point, and 

any related information. 

(e) Inquiries from previous owner. All 

inquiries or claims from the previous 

owner will be referred to the contact 

point of the forfeiting agency. We will 

tell the person who inquired that we 

referred his or her inquiry to the contact 

point. We will not investigate the 

inquiry. We will defer to the forfeiting 

agency’s determination of the 

appropriate course of action, including 

settlement where appropriate. Any 

settlement will be paid from the 

forfeiture fund into which the proceeds 

were deposited. 

§ 363.51 [Removed and reserved] 

■ 40. Remove and reserve § 363.51. 

■ 41. Amend § 363.54 by revising the 

heading to read as follows: 

§ 363.54 What is the minimum amount of 

a book-entry savings bond that I must hold 

in my account? 

* * * * * 

■ 42. Amend § 363.55 by revising 

paragraph (a) to read as follows: 

§ 363.55 May I transfer my book-entry 

savings bond to another person? 

(a) You may transfer a savings bond 

or a portion of a savings bond to the 

TreasuryDirect account of another 

individual in a minimum amount of 

$25. The transfer may only be made as 

a gift or in response to a final judgment, 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57437 

court order, divorce decree, or property 

settlement agreement. You must certify 

online that the transfer is a gift or a 

specified exception. 

* * * * * 

■ 43. Remove the undesignated center 

heading ‘‘Registration’’, located prior to 

363.65. 

§§ 363.65–363.69 [Removed and reserved] 

■ 44. Remove and reserve §§ 363.65, 

363.66, 363.67, 363.68, and 363.69. 

■ 45. Amend § 363.83 by revising the 

heading to read as follows: 

§ 363.83 May an account owner transfer a 

book-entry savings bond to a minor? 

* * * * * 

■ 46. Remove the undesignated center 

heading ‘‘Deceased Owners,’’ located 

prior to § 363.90. 

§ 363.90 [Removed and reserved] 

■ 47. Remove and reserve § 363.90. 

■ 48. Amend § 363.95 by revising the 

heading and the introductory text to 

read as follows: 

§ 363.95 How may I give a book-entry 

savings bond as a gift? 

You may give a book-entry savings 

bond as a gift in two ways: 

* * * * * 

■ 49. Amend § 363.97 by revising the 

heading to read as follows: 

§ 363.97 What do I need to know if I 

transfer a book-entry savings bond to 

another person as a gift? 

* * * * * 

■ 50. Remove the undesignated center 

heading ‘‘Transactions,’’ located prior to 

§ 363.105. 

§§ 363.105–363.107 [Removed and 

reserved] 

■ 51. Remove and reserve §§ 363.105, 

363.106, and 363.107. 

■ 52. Remove the undesignated center 

heading ‘‘Judicial and Administrative 

Proceedings,’’ located prior to § 363.110. 

§§ 363.110–363.119 [Removed and 

reserved] 

■ 53. Remove and reserve §§ 363.110 

through 363.119. 

■ 54. Amend § 363.125 by revising the 

heading to read as follows: 

§ 363.125 How is payment made on a 

book-entry savings bond? 

* * * * * 

■ 55. Remove § 363.146. 

§§ 363.147–363.149 [Removed and 

reserved] 

■ 56. Remove and reserve §§ 363.147–

363.149. 

§ 363.150 [Reserved] 

■ 57. Redesignate § 363.150 as § 363.146 

and reserve § 363.150. 

§§ 363.151–363.152 [Removed and 

reserved] 

■ 58. Remove and reserve §§ 363.151 

and 363.152. 

■ 59. Amend § 363.160 by revising 

paragraph (a)(4) to read as follows: 

§ 363.160 What subparts govern the 

conversion of definitive savings bonds? 

(a) * * * 

(4) Converted savings bonds of all 

series that are held as gift bonds by the 

person who converted the bonds. 

* * * * * 

■ 60. Amend § 363.165 by revising the 

heading and the first sentence of 

paragraph (b) to read as follows: 

§ 363.165 What happens when I convert a 

savings bond that is registered in my name 

as the owner, either coowner, or the owner 

with a beneficiary? 

* * * * * 

(b) Savings bond that has reached 

final maturity. A savings bond that has 

reached final maturity and is registered 

in the name of the Treasury Direct 

account owner as single owner, either 

coowner, or owner with beneficiary, 

will be converted to a book-entry bond 

and automatically redeemed. * * * 

■ 61. Amend § 363.166 by: 

■ a. Revising the heading and the first 

sentence of paragraph (b)(1); and 

■ b. Revising the heading and first 

sentence of paragraph (b)(2), to read as 

follows: 

§ 363.166 What happens when I convert a 

savings bond that is not registered in my 

name as owner, either coowner, or owner 

with beneficiary (including a bond 

registered in the name of a minor)? 

* * * * * 

(b) Savings bond that has reached 

final maturity. (1) General. A savings 

bond that has reached final maturity 

and is registered in the name of 

someone other than the account owner 

will be converted to a book-entry bond, 

released as a gift bond into the account 

owner’s conversion linked account, and 

automatically redeemed. * * * 

(2) Delivery of bond proceeds to 

registered owner. If the gift bond has 

reached final maturity and has been 

automatically redeemed, then the 

Treasury Direct account owner may 

direct that the held redemption 

proceeds be delivered to the Treasury 

Direct account of the registered owner 

(or minor linked account, if the 

registered owner is a minor), where we 

will use the proceeds to purchase a 

certificate of indebtedness in the name 

of the registered owner. * * * 

§§ 363.172–363.174 [Removed and 

reserved] 

■ 62. Remove and reserve §§ 363.172, 

363.173, and 363.174. 

§ 363.175 [Removed and reserved] 

■ 63. Remove and reserve §§ 363.175. 

§ 363.177 [Removed and reserved] 

■ 64. Remove and reserve §§ 363.177. 

§ 363.178 [Removed and reserved] 

■ 65. Remove and reserve §§ 363.178. 

Dated: September 26, 2005. 

Donald V. Hammond, 

Fiscal Assistant Secretary. 

[FR Doc. 05–19551 Filed 9–27–05; 12:41 pm] 

BILLING CODE 4810–39–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Parts 356, 357, and 363 

[Docket No. BPD–CC–05–2] 

Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds 

(Department of the Treasury Circular, 

Public Debt Series No. 1–93); 

Regulations Governing Book-Entry 

Treasury Bonds, Notes and Bills Held 

in Legacy Treasury Direct; 

Regulations Governing Securities Held 

in TreasuryDirect

AGENCY: Bureau of the Public Debt, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: TreasuryDirect is an accountbased, book-entry, online system for 

purchasing, holding, and conducting 

transactions in Treasury securities. To 

date, the system has only been available 

for the purchase and holding of savings 

bonds and certificates of indebtedness. 

The Department of the Treasury 

(hereinafter referred to as ‘‘Treasury’’ or 

‘‘We’’) is amending Regulations 

Governing Securities Held in 

TreasuryDirect to add marketable 

Treasury securities to the securities that 

may be purchased and held in 

TreasuryDirect and to provide the terms 

and conditions for marketable Treasury 

securities held in the system. We are 

amending Regulations Governing BookEntry Treasury Bonds, Notes and Bills 

Held in Legacy Treasury Direct to 

provide for the transfer of securities 

between Legacy Treasury Direct and 

TreasuryDirect. We are also amending 

the Uniform Offering Circular for the 

Sale and Issue of Marketable Book-Entry 

Treasury Bills, Notes, and Bonds to 

make the changes necessary to