shall provide for the following with respect to speci-
fied unredeemed savings bonds assigned for proc-
essing to such State: 
(A) PROVISION OF RECORDS TO STATES.— 
The Secretary shall provide the State or its rep-
resentative such records with respect to such 
bonds as the Secretary determines are nec-
essary or appropriate to carry out the purposes 
of this section. 
(B) WRITTEN
NOTIFICATION
TO
BOND-
HOLDERS OF RECORD.—The State or its rep-
resentative shall mail to each owner of record of 
such a bond, with respect to whom an address 
suitable for the delivery of mail is determined 
under subsection (b), a written notification re-
garding the existence of such bond and that 
such bond is no longer earning interest. 
(C) ADDITIONAL NOTIFICATION EFFORTS; 
RESTRICTIONS.—The State or its representative 
shall make such additional efforts to locate the 
owners of such bonds as the Secretary may pro-
vide. The Secretary may provide for such re-
strictions on efforts utilized to locate such own-
ers as the Secretary determines appropriate, in-
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ccoleman on PROD1PC71 with BILLS
cluding any restrictions on the use of commer-
cial locator services. 
(D) 
CLAIMS
PROCESSING
AND 
VERIFICATION.—The State or its representative 
shall receive, process, and verify claims for such 
bonds and shall transmit to the Secretary 
verified claims. 
(E) 
REUNIFICATION
PAYMENTS
TO 
STATES.—Subject to the limitation of sub-
section (c)(4)(B), the Secretary shall direct the 
Federal depositary referred to in subsection (c) 
to pay the State a fee each month equal to 25 
percent of the amount paid under subsection 
(c)(3) during the preceding month with respect 
to bonds verified by such State. Any fee other-
wise payable under this subparagraph shall be 
reduced by the amount of any payment made 
under subparagraph (F). 
(F) ADVANCE PAYMENT OF STATE ADMIN-
ISTRATIVE COSTS.—Subject to the limitation of 
subsection (c)(4)(B), the Secretary shall, upon 
request from the State, direct the Federal de-
positary referred to in subsection (c) to pay the 
State such amount as the Secretary determines 
reasonable for the estimated cost of the State 
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to carry out activities pursuant to this sub-
section. The aggregate amount paid to the 
State under this subparagraph may not exceed 
5 percent of the aggregate amount which would 
be paid from the redemption account if all the 
specified unredeemed savings bonds assigned to 
the State were redeemed. 
(b) EXAMINATION OF BOND RECORDS; ESTABLISH-
MENT OF DATABASE.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall enter 
into a cooperative agreement (within the meaning of sec-
tion 6305 of title 31, United States Code) with the State 
coordinator which provides for the following with respect 
to the specified unredeemed savings bonds: 
(1) ACCESS TO BOND RECORDS.—The Secretary 
shall provide the State coordinator with full access 
to records related to such bonds. 
(2) 
COMPILATION
OF
INFORMATION.—The 
State coordinator shall compile relevant information 
with respect to such bonds and make the results of 
such compilation available to the Secretary for the 
Secretary’s review and concurrence. 
(3) ASSIGNMENT OF BONDS TO STATES FOR 
PROCESSING.—The State coordinator shall make a 
recommendation to the Secretary regarding to which 
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State each bond should be assigned for processing 
under subsection (a). Such recommendation shall be 
based on the registered owner’s address of record as 
determined in accordance with Government Auditing 
Standards for relevance, competence, and suffi-
ciency. The Secretary shall make the final deter-
mination regarding the State to which each bond is 
assigned for processing after taking into account the 
recommendation of the State coordinator. Such de-
termination by the Secretary shall be conclusive and 
shall not be subject to judicial review. 
(4) SEARCHABLE
DATABASE.—After the Sec-
retary concurs with the information compiled under 
paragraph (2), the State coordinator shall establish 
a searchable database which includes such informa-
tion with respect to each bond and the State to 
which each bond is assigned for processing. The 
State coordinator shall update the information con-
tained in such database (including information indi-
cating which bonds have been redeemed) in such 
manner as the Secretary may provide. 
(c) AGREEMENT WITH FEDERAL DEPOSITARY.—Not 
later than 90 days after the date of the enactment of this 
Act, the Secretary shall enter into an agreement with a 
Federal depositary which provides for the following: 
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ccoleman on PROD1PC71 with BILLS
(1) TRANSFER OF FUNDS.—The Secretary shall 
transfer to the Federal depositary the excess of— 
(A) the aggregate amount payable upon re-
demption of each specified unredeemed savings 
bond, over 
(B) the amount of tax withheld under sub-
section (d) with respect to such bond. 
(2) SEPARATE
ACCOUNT; 
INVESTMENT
OF 
FUNDS.—The Federal depositary shall establish and 
maintain a separate account (the reunification ac-
count) which shall consist of amounts transferred 
under paragraph (1) and any earnings thereon. The 
Federal depositary shall invest amounts in such ac-
count in accordance with such standards as may be 
specified by the Secretary. 
(3) PAYMENTS
ON
REDEEMED
BONDS.—The 
Secretary shall notify the Federal depositary of any 
redemption of a specified unredeemed savings bond. 
The Federal depositary shall, promptly after notifi-
cation by the Secretary, make the appropriate pay-
ment from the redemption account with respect to 
such redemption as directed by the Secretary and 
notify the State coordinator that such bond has been 
redeemed. The amount of any payment under this 
paragraph with respect to the redemption of any 
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ccoleman on PROD1PC71 with BILLS
bond (determined without regard to this sentence) 
shall be reduced by the amount of the tax withheld 
under subsection (d) with respect to such bond. 
(4) USE
OF
EARNINGS
FOR
ADMINISTRATIVE 
EXPENSES, ETC.— 
(A) IN GENERAL.—The Federal depositary 
shall make the following payments as directed 
by the Secretary: 
(i) FEES OF FEDERAL DEPOSITARY.— 
Payment of reasonable fees of the Federal 
depositary for services provided by the 
Federal depositary. 
(ii) EXPENSE OF BOND EXAMINATION, 
ETC.—Payment to the State coordinator 
designated under subsection (b) for reason-
able costs in carrying out such subsection. 
(iii) REUNIFICATION
PAYMENTS
TO 
STATES.—Payment of the administrative 
and reunification payments described in 
subparagraphs (E) and (F) of subsection 
(a)(2). 
(iv) 
ADMINISTRATIVE
COSTS
OF 
TREASURY.—Payment to the Secretary, 
not in excess of $5,000,000 for any fiscal 
year, for the administrative costs of the 
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