31 C.F.R. § 356.30 When does the Treasury pay principal and interest on securities?
Title 31 - Money and Finance: Treasury
(a) General. We will pay principal on bills, notes, and bonds on the maturity date as specified in the auction announcement. Interest on bills consists of the difference between the discounted amount paid by the investor at original issue and the par value we pay to the investor at maturity. Interest on notes and bonds accrues from the dated date. Interest is payable on a semiannual basis on the interest payment dates specified in the auction announcement through the maturity date. If any principal or interest payment date is a Saturday, Sunday, or other day on which the Federal Reserve System is not open for business, we will make the payment (without additional interest) on the next business day. If a bond is callable, we will pay the principal prior to maturity if we call it under its terms, which include providing appropriate public notice. (b) Treasury inflation-protected securities. (1) This table explains the amount that we will pay to holders of inflation-protected securities at maturity. (2) Regardless of whether or not we pay an additional amount, we will base the final interest payment on the inflation-adjusted principal at maturity. (c) Discharge of payment obligations— (1) The commercial book-entry system. We discharge our payment obligations when we credit payment to the account maintained at a Federal Reserve Bank for a depository institution or other authorized entity, or when we make payment according to the instructions of the person or entity maintaining the account. Further, we do not have any obligations to any person or entity that does not have an account with a Federal Reserve Bank. We also will not recognize the claims of any person or entity: (i) That does not have an account at a Federal Reserve Bank, or (ii) With respect to any accounts not maintained at a Federal Reserve Bank. (2) TreasuryDirect®. We discharge our payment obligations when we make payment to a depository institution for credit to the account specified by the owner of the security, when we make payment for a certificate of indebtedness to be issued and held in the owner's account, or when we make payment according to the instructions of the security's owner or the owner's legal representative. (3) Legacy Treasury Direct®. We discharge our payment obligations when we make payment to a depository institution for credit to the account specified by the owner of the security, or when we make payment according to the instructions of the security's owner or the owner's legal representative. [69 FR 45202, July 28, 2004, as amended at 70 FR 57441, Sept. 30, 2005]
Title 31: Money and Finance: Treasury
PART 356—SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 1–93)
Subpart D—Miscellaneous Provisions
§ 356.30 When does the Treasury pay principal and interest on securities?
_------------------------------------------------------------------------ At maturity, if . . . then . . .------------------------------------------------------------------------(i) the inflation-adjusted principal is we will pay the inflation- equal to or more than the par amount adjusted principal. of the security..(ii) the inflation-adjusted principal we will pay an additional is less than the par amount of the amount so that the additional security, and the security has not amount plus the inflation- been stripped.. adjusted principal equals the par amount.(iii) the inflation-adjusted principal to holders of principal is less than the par amount of the components only we will pay an security, and the security has been additional amount so that the stripped.. additional amount plus the inflation-adjusted principal equals the par amount.------------------------------------------------------------------------
