31 C.F.R. PART 317—REGULATIONS GOVERNING AGENCIES FOR ISSUE OF UNITED STATES SAVINGS BONDS
Title 31 - Money and Finance: Treasury
Authority: 2 U.S.C. 901; 5 U.S.C. 301; 12 U.S.C. 391; 12 U.S.C. 1767; 31 U.S.C. 3105.
Source: 54 FR 40830, Oct. 3, 1989, unless otherwise noted.
The regulations in this part govern the manner in which an organization may qualify and act as an agent for the sale and issue of Series EE and Series I United States Savings Bonds. [63 FR 38041, July 14, 1998] (a) Bond(s) means Series EE United States Savings Bonds and Series I United States Savings Bonds. (b) Federal Reserve Bank refers to the Federal Reserve Bank or Branch providing savings bond services to the district in which the issuing agent or the applicant organization is located. See §317.9(a). (c) Issuing agent refers to an organization that has been qualified by a designated Federal Reserve Bank or the Commissioner of the Bureau of the Public Debt to sell savings bonds. An issuing agent acts as an agent of the purchaser in handling the remittance. The definition encompasses: (1) Each organization that accepts and processes purchase orders for bonds sold over-the-counter, but does not inscribe bonds, and (2) Each organization that is authorized to inscribe bonds sold over-the-counter or through payroll savings plans. (d) Offering circular refers to Department of the Treasury Circular, Public Debt Series No. 1–80, current revision, for Series EE savings bonds, and to Department of the Treasury Circular, Public Debt Series No. 1–98 for Series I savings bonds. (e) Organization means an entity, as described in §317.2, that may qualify as an issuing agent of bonds. [63 FR 64550, Nov. 20, 1998] The following organizations are eligible to apply for qualification and to serve as savings bond issuing agents: (a) Banks, credit unions, trust companies and savings institutions, if they are chartered by or incorporated under the laws of the United States, any State or Territory of the United States, the District of Columbia, or the Commonwealth of Puerto Rico. (b) Agencies of the United States and State and local governments. (c) Employers operating payroll savings plans for the purchase of United States Savings Bonds, as well as organizations operating payroll savings plans on behalf of employers. (d) Other organizations specifically and individually qualified by the Commissioner of the Bureau of the Public Debt whenever the Commissioner deems such a qualification to be in the public interest. In selecting an issuing agent, the Commissioner may use such process that the Commissioner deems to be appropriate. The selected issuing agent will be subject to such conditions that the Commissioner deems to be appropriate. [63 FR 64550, Nov. 20, 1998, as amended at 65 FR 2035, Jan. 13, 2000] (a) Execution of application agreement. An organization seeking issuing agent qualification generally shall obtain from and file with a designated Federal Reserve Bank an application-agreement form. However, if an organization seeks qualification under §317.2(d) or because of its status as an organization operating a payroll savings plan on behalf of an employer under §317.2(c), it shall make application directly to the Bureau of the Public Debt for approval by the Commissioner of the Bureau of the Public Debt. An application-agreement sent directly to the Bureau of the Public Debt shall be supplemented by such other information as the Bureau of the Public Debt may request. (1) The terms of each application agreement shall include the provisions prescribed by section 202 of Executive Order No. 11246, entitled “Equal Employment Opportunity” (3 CFR, subchapter B, 42 U.S.C. 2000e note). (2) The provisions of the Privacy Act of 1974, as amended (5 U.S.C. 552a), and regulations issued pursuant thereto (31 CFR part 1, subpart C). (b) Certificate of qualification. Upon approval of an application-agreement, the designated Federal Reserve Bank or the Bureau of the Public Debt will issue a certificate of qualification to the organization. Until the receipt of such a certificate, an organization shall not perform any act as an issuing agent, or advertise in any manner that it is authorized to so act or that it has applied for qualification as an issuing agent. After receipt of a certificate of qualification, an organization may perform the functions of an issuing agent. Under the terms of the application-agreement, the proceeds of the sale of bonds are at all times the property of the United States for which the organization shall be fully accountable. (c) Adverse action or change in qualification. An organization will be notified by the designated Federal Reserve Bank or the Bureau of the Public Debt if its application-agreement to act as issuing agent is not approved, or if, after issuance, its certificate of qualification is terminated. [54 FR 40830, Oct. 3, 1989, as amended at 59 FR 10535, 10536, Mar. 4, 1994; 63 FR 64550, Nov. 20, 1998] Each organization, qualified as an issuing agent under a trust agreement currently in effect, is authorized to continue to act in that capacity without requalification. By so acting, it shall be subject to the terms and conditions of the previously executed application-agreement and these regulations in the same manner and to the same extent as though it had requalified hereunder. (a) By the United States. The Secretary of the Treasury or a delegate may terminate the qualification of an issuing agent at any time, upon due notice to the agent. If this action is taken, the agent will be required to make a final accounting for the balance of savings bond stock for which it is charged, based on the records of the designated Federal Reserve Bank. The agent must surrender all unissued bonds and remit the issue price of any remaining bonds included in its accountability. (b) At request of issuing agent. A designated Federal Reserve Bank will terminate the qualification of an issuing agent upon its request, provided the agent is in full compliance with the terms of its agreement and the applicable regulations and instructions, and renders a final accounting. [54 FR 40830, Oct. 3, 1989, as amended at 59 FR 10536, Mar. 4, 1994] (a) General. Each issuing agent shall comply with all regulations and instructions issued by the Department of the Treasury directly, or through the designated Federal Reserve Bank, concerning the sale, inscription, dating, and validation of bonds; the acceptance, processing, and transmittal of over-the-counter purchase orders; the remittance of sales proceeds; and the disposition of paper and electronic registration records. No issuing agent shall have authority to sell bonds other than as provided in the offering circular. (b) Fees. Each issuing agent, other than a Federal agency, will be paid fees. Only issuing agents are eligible to collect fees. With prior approval, agents that are authorized to inscribe bonds and receive fee payments will also be paid a bonus for presorting savings bond mailings. Schedules reflecting the amount of the fees and presort bonuses, and the basis on which they are computed and paid, will be published separately in the (c) No charge to customers. Any issuing agent that accepts fees from the Department of the Treasury for selling savings bonds, and/or accepting over-the-counter purchase orders, shall not make any charge to customers for the same service. [54 FR 40830, Oct. 3, 1989, as amended at 55 FR 39960, Oct. 1, 1990; 58 FR 63529, Dec. 2, 1993; 59 FR 10536, Mar. 4, 1994; 63 FR 64550, Nov. 20, 1998] An issuing agent that is authorized to inscribe bonds sold over-the-counter or through payroll savings plans may obtain bond stock from the designated Federal Reserve Bank. The bond stock is, at all times, the property of the United States. The organization shall be fully accountable for the bond stock consigned to it in accordance with all regulations and instructions issued by the Department of the Treasury. [54 FR 40830, Oct. 3, 1989, as amended at 59 FR 10536, Mar. 4, 1994] An issuing agent shall account for and remit bond sales proceeds and registration records promptly in accordance with regulations and instructions issued by the Department of the Treasury, either directly or through the designated Federal Reserve Banks. Failure to comply with these instructions may subject an agent to penalties, including termination of its qualification as an issuing agent.
Appendix to §317.8—Remittance of Sales Proceeds and Registration Records, Department of the Treasury Circular, Public Debt Series No. 4–67, Third Revision (31 CFR Part 317), Fiscal Service, Bureau of the Public Debt Subpart A—General Information 1. Purpose. This appendix is issued for the guidance of organizations qualified as issuing agents of Series EE and I United States Savings Bonds under the provisions of Department of the Treasury Circular, Public Debt Series No. 4–67, current revision. Its purpose is to supplement the provisions of §317.8 of the Circular relating to the remittance of savings bond sales proceeds and registration records, including the interest charge to be collected for late remittances. 2. Definition of terms. As used in this appendix: (a) Issue Date is the date as of which a bond begins to earn interest. It is the date entered by the issuing agent in the upper right corner of the bond. (b) Validation Date is the date as of which a bond is actually inscribed for issue. It is entered by the issuing agent immediately below the “Issue Date” in the area marked “Issuing Agent's Dating Stamp”. (c) Over-the-counter sale means any sale of savings bonds other than payroll sales. (d) Payroll sale includes all issues of savings bonds paid for with deductions withheld from the pay of employees of organizations which maintain (i) payroll savings plans or (ii) thrift, savings, vacation, or similar plans. (e) Issuing agent, as provided in §317.1(c) of the Circular, refers to an organization that has been qualified by a designated Federal Reserve Bank or the Commissioner of the Bureau of the Public Debt to sell savings bonds. (f) Immediately available funds are remittances of funds which are available for the use by the Department of the Treasury immediately upon receipt by the Department or its fiscal agents, and include, but are not limited to: (1) A change to the remitter's (or a correspondent depository institution's) reserve account with a Federal Reserve Bank; (2) A Federal funds check; (3) A United States Government check; or (4) A postal money order. (g) Financial institutions refers to banks, trust companies, credit unions, and savings institutions chartered by or incorporated under the laws of the United States, or those of any State or Territory of the United States, the District of Columbia, or the Commonwealth of Puerto Rico. (h) Nonfinancial institutions refers to any issuing agent not described under paragraph (g) of this appendix. 3. Determination of issue date. The obligation of the United States to pay interest on a savings bond is determined by its issue date. That date is the first day of the month in which a qualified issuing agent receives or accumulates the full purchase price of the bond. In the case of a bond purchased under a payroll savings plan operated by an organization which is not an issuing agent, the issue date should be fixed as of the month in which the organization accumulates the full purchase price of the bond. Such funds must, however, be remitted to the issuing agent in time to permit such dating. 4. Forms of remittance. Issuing agents shall remit sales proceeds in timely fashion as follows: (a) Issuing agents which are financial institutions must remit in immediately available funds. (b) Issuing agents which are nonfinancial institutions should remit in immediately available funds. (c) The Commissioner of the Public Debt, as designee of the Secretary of the Treasury, may waive or modify this provision. The Commissioner may do so in any particular case or class of cases for the convenience of the United States or in order to relieve any agent or agents of unusual hardship: (1) If such action would not be inconsistent with law or equity, (2) If it does not impair any existing rights, and (3) If the Commissioner is satisfied that such action would not subject the United States to any substantial expense or liability. 5. Remittance date. Sales proceeds should be remitted on the date shown on the transmittal document, i.e., PD F 3252–OC or PD F 5255–RDS for over-the-counter sales or PD F 4848 for payroll sales. If there is a significant time difference between the date on the transmittal document and the date of receipt in the designated Federal Reserve Bank, the transmittal date may be determined, for purposes of this appendix, by the postmark, if the remittance is mailed, or the receipt date, if the remittance is forwarded by courier, messenger, or similar means. Subpart B—Over-the-Counter Sales 1. Regional Delivery (RDS) participants. An agent participating in the Regional Delivery System (RDS) is authorized to sell bonds over-the-counter. It will accept and review customer purchase orders, but it will not inscribe the bonds. Purchase order information will be forwarded to a designated Federal Reserve Bank for inscription of the bonds. An authorized RDS participant shall remit sales proceeds and purchase orders (on paper or in an electronically processible format) to a designated Federal Reserve Bank within five (5) business days of receipt from the customer. 2. Issues-on-Tape Program participants. An agent that has been authorized by the Bureau of the Public Debt to inscribe bonds sold over-the-counter and report such sales on magnetic tape shall remit sales proceeds and electronic issue records no less often than once a week on a schedule established by the designated Federal Reserve Bank. Subpart C—Remittance of Payroll Sales Proceeds 1. Application of requirements. The remittance requirements for payroll sales apply only to issuing agents. An employer that maintains a payroll savings plan but does not issue bonds shall be notified by the servicing issuing agent that it must remit sales proceeds to the issuing agent in sufficient time to permit compliance with the requirements. 2. Remittance of payroll sales deductions. Issuing agents shall remit sales proceeds throughout the month shown in the issue date as soon as the full amount of the purchase price of the bonds has been received or accumulated. In no case should such proceeds be remitted later than the second business day of the month following the month shown in the issue date. The issuing agent shall ensure that its system properly accounts for and recognizes when the full purchase price has been received, or has been accumulated, so that timely remittance can be made. The issuing agent shall transmit registration records in an electronically processible format within thirty (30) days following the month shown on the issue date. Subpart D—Interest on Late Remittances 1. Rate of interest. Interest will be assessed for each day's delay in the remittance of sales proceeds, based on the actual date of remittance. The rate of interest to be used will be the current value of funds to the Department of the Treasury, as set forth each quarter in the Treasury Financial Manual. The rate applied will be that in effect during the entire period in which the remittance is late. The interest assessment will be collected by the designated Federal Reserve Bank. 2. Waiver. Interest will be waived in the situations described below as well as in any specific case where, in the judgment of the Commissioner of the Public Debt, the circumstances warrant such action. The Commissioner's decision on any waiver action shall be final. (a) Bonds inscribed by issuing agent—(i) Payroll sales. If, during any three (3) month period, the interest assessed on an issuing agent's late remittance of proceeds from payroll savings plan sales or thrift, savings, vacation, or similar plan sales accumulates to less than $50 for each type of sales, the interest assessed for the first month will be waived. The interest assessed for each type of sales for the remaining two (2) months will then be carried forward to the next period of three (3) consecutive months. (ii) Over-the-counter issues. The interest assessed on an agent's late remittance of over-the-counter sales proceeds transmitted during a given month will be waived if it is less than $50. (b) Bonds inscribed by the designated Federal Reserve Bank. The interest assessed on late remittance of all sales proceeds transmitted during a given month will be waived if it is less than $25. (c) Suspension of waiver. The Commissioner may suspend the application of the waiver in the case of any agent that consistently fails to meet the remittance requirements. [54 FR 40830, Oct. 3, 1989, as amended at 59 FR 10536, Mar. 4, 1994; 63 FR 38041, July 14, 1998; 63 FR 64550, Nov. 20, 1998] (a) Role as fiscal agents. In their capacity as fiscal agents of the United States, the Federal Reserve Banks referred to below are authorized to perform such duties, including the issuance of instructions and forms, as may be necessary to fulfill the purposes and requirements of these regulations. (b) The following Federal Reserve Offices have been designated to provide savings bond services: (c) Specific activities of designated Federal Reserve Banks. The specific activities of designated Federal Reserve Banks include: (1) Qualifying issuing agents; (2) Supplying agents with bond stock, maintaining records of agent accountability, and monitoring compliance with stock consignment rules; (3) Instructing agents regarding the sale and issue of bonds, the custody and control of bond stock, and the accounting for and remittance of sales proceeds; and (4) Providing guidelines covering the amount of bond stock agents may ordinarily requisition and maintain. [54 FR 40830, Oct. 3, 1989, as amended at 59 FR 10536, Mar. 4, 1994; 63 FR 38041, July 14, 1998] The Secretary of the Treasury may at any time, or from time to time, supplement or amend the terms of these regulations.
Title 31: Money and Finance: Treasury
PART 317—REGULATIONS GOVERNING AGENCIES FOR ISSUE OF UNITED STATES SAVINGS BONDS
Section Contents
§ 317.0 Purpose and effective date.
§ 317.1 Definitions.
§ 317.2 Organizations authorized to act.
§ 317.3 Procedure for qualifying and serving as issuing agent.
§ 317.4 Issuing agents currently qualified.
§ 317.5 Termination of qualification.
§ 317.6 Issuance of bonds.
§ 317.7 Obtaining and accounting for bond stock.
§ 317.8 Remittance of sales proceeds and registration records.
§ 317.9 Role of Federal Reserve Banks.
§ 317.10 Reservation.
§ 317.0 Purpose and effective date.
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§ 317.1 Definitions.
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§ 317.2 Organizations authorized to act.
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§ 317.3 Procedure for qualifying and serving as issuing agent.
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§ 317.4 Issuing agents currently qualified.
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§ 317.5 Termination of qualification.
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§ 317.6 Issuance of bonds.
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§ 317.7 Obtaining and accounting for bond stock.
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§ 317.8 Remittance of sales proceeds and registration records.
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§ 317.9 Role of Federal Reserve Banks.
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------------------------------------------------------------------------ Reserve districts Geographic area Servicing office served served------------------------------------------------------------------------Federal Reserve Bank, Buffalo New York, Boston. CT, MA, ME, NH, Branch, P.O. Box 961, Buffalo, NY NJ (northern 14240. half), NY (City & State), RI, VT, Puerto Rico and Virgin Islands.Federal Reserve Bank, Pittsburgh Cleveland, DE, KY (eastern Branch, P.O. Box 867, Pittsburgh, Philadelphia. half), NJ PA 15230. (southern half), OH, PA, WV (northern panhandle).Federal Reserve Bank of Richmond, Richmond, Atlanta AL, DC, FL, LA P.O. Box 27622, Richmond, VA 23261. (southern half), MD, MS (southern half), NC, SC, TN (eastern half), VA, WV, (except northern panhandle).Federal Reserve Bank of Minneapolis, IA, IL (northern Minneapolis, 90 Hennepin Avenue, Chicago. half), IN Minneapolis MN 55401. (northern half), MI, MN, MT, ND, SD, WI.Federal Reserve Bank of Kansas Dallas, San AK, AR, AZ, CA, City, 925 Grand Avenue, Kansas Francisco, CO, HI, ID, IL City, MO 64198. Kansas City, St. (southern Louis. half), IN (southern half), KS, KY (western half), LA (northern half), MO, MS (northern half), NE, NM, NV, OK, OR, TN (western half), TX, WA, WY, UT and GU.------------------------------------------------------------------------
§ 317.10 Reservation.
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