31 C.F.R. Subpart B—General Provisions Governing Securities Held in TreasuryDirect
Title 31 - Money and Finance: Treasury
Title 31: Money and Finance: Treasury
PART 363—REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT
Subpart B—General Provisions Governing Securities Held in TreasuryDirect
§§ 363.7-363.8 [Reserved]
§ 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.
[70 FR 57433, Sept. 30, 2005]
§ 363.10 What is a TreasuryDirect® account?
A TreasuryDirect account is an online account maintained by us solely in your name in which you may hold and conduct transactions in eligible book-entry Treasury securities.
(a) Primary Account. Your primary account that you establish when initially opening your TreasuryDirect account may contain the following Treasury securities:
(1) Treasury securities purchased initially as book-entry securities that are your personal holdings, in sole owner, owner with beneficiary, and primary owner with secondary owner forms of registration;
(2) Gifts of savings bonds that have not yet been delivered;
(3) Converted savings bonds that you have transferred from your conversion linked account.
(b) Linked account. A linked account is an account that is a separate account from your primary account, but that is connected to your primary account. You use your primary account as a portal to open and access the linked account. Linked accounts include the following:
(1) Custom account. A custom account is an account that is linked to your primary account. You use your primary account as the portal to open and access your custom account. You may informally designate a purpose for the custom account, for example, “vacation fund”, or “Johnny's college fund”. However, the designation as to purpose has no legal effect; the registration of the securities held in the custom account determines ownership (Annual purchase limitations include securities held in custom accounts). You may use your custom account to buy, redeem and transfer securities that you own in sole owner, owner with beneficiary, and primary owner with secondary owner forms of registration. You may also buy and deliver gift savings bonds from your custom account.
(2) Minor account. A minor account is an account established by a custodian for a person who has not yet reached the age of 18 years. A minor account is linked to the custodian's primary account. The minor is the owner of the securities, but the custodian controls the account on behalf of the minor. (See §363.27 for more information about minor accounts.)
(3) Conversion account means a linked account in TreasuryDirect that contains only savings bonds that have been converted from definitive bonds to book-entry bonds.
[69 FR 2507, Jan. 16, 2004, as amended at 70 FR 14943, Mar. 23, 2005. Redesignated at 70 FR 57433, Sept. 30, 2005, as amended at 70 FR 57442, Sept. 30, 2005]
§ 363.11 Who is eligible to open a TreasuryDirect® account?
In order to open a TreasuryDirect account, you must:
(a) Have a valid social security number;
(b) Have a United States address of record;
(c) Have an account at a United States depository financial institution that will accept debits and credits using the Automated Clearing House method of payment;
(d) Be 18 years of age or over;
(e) Be legally competent; and
(f) Be an individual.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57433, Sept. 30, 2005]
§ 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 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.
[70 FR 57433, Sept. 30, 2005]
§ 363.13 How can I open a TreasuryDirect® account?
You must establish a TreasuryDirect account online before you purchase a Treasury security to be held in your account. Instructions for online account establishment may be found at the official Public Debt website at http://www.publicdebt.treas.gov, or such other Internet address as Public Debt may from time to time announce by publication in the
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.14 How will you authenticate my identity?
We may use an online authentication service to authenticate your identity using information you provide about yourself on the application. At our option, we may require offline authentication.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.15 What is the procedure for offline authentication?
In the event we require offline authentication, we will provide a printable authentication form. Your signature on the form must be certified or guaranteed as provided at §363.43, and the form must be mailed to us at the address provided in §363.5.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.16 How do I access my account?
You may access your account online using your account number and password.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.17 Who is liable if someone else accesses my TreasuryDirect® account using my password?
You are solely responsible for the confidentiality and use of your password. We will treat any transactions conducted using your password as having been authorized by you. We are not liable for any loss, liability, cost or expense that you may incur as a result of transactions made using your password.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.18 Is Public Debt liable if the electronic transmission of my data is intercepted?
We are not liable for any interception of electronic data or communication.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 363.19 What should I do if I become aware that my password has become compromised?
You should change your password immediately if you become aware that your password has become compromised. If you become aware of any misuse of your password, you should notify us by email at [email protected] or call us at 304–480–8783.
[67 FR 64286, Oct. 17, 2002. Redesignated at 70 FR 57434, Sept. 30, 2005]
§ 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.”
[70 FR 57434, Sept. 30, 2005]
§ 363.21 What transactions can I perform online through my TreasuryDirect® account?
The following transactions are by way of illustration only, and are not intended to limit transactions that may be added to the system:
(a) You can purchase, transfer, and change the registration of an eligible Treasury security, including a transfer of a marketable security for a Sell Direct transaction;
(b) You can redeem a savings bond;
(c) You can deliver a gift savings bond to the account of the recipient;
(d) You can grant and revoke the right to view an eligible security to a secondary owner or beneficiary named on the security, if the secondary owner or beneficiary is a TreasuryDirect account owner;
(e) You, as the primary owner, can grant certain transaction rights to the secondary owner, and you can also revoke those rights. The secondary owner can exercise those rights, provided they have not been revoked, if the secondary owner is a TreasuryDirect account owner;
(f) You can make changes to your account information, including ACH information, password changes, and account security information;
(g) You can view a history of purchases, transactions, changes to account information, and pending transactions;
(h) You can schedule future transactions, and change or delete pending transactions;
(i) You can open and access any linked accounts using your primary account as a portal; and
(j) You can convert eligible definitive savings bonds to book-entry bonds.
[70 FR 14943, Mar. 23, 2005. Redesignated at 70 FR 57434, Sept. 30, 2005 and amended at 70 FR 57442, Sept. 30, 2005]
§ 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. (1) The primary owner can conduct any permitted transaction in a security held in the primary owner's TreasuryDirect account. (See §363.20(e)).
(2) If the primary owner has given the secondary owner the right to conduct transactions in a security, and has not revoked that right, then the secondary owner can conduct transactions in the security. Transactions that may be conducted by the secondary owner include transferring a marketable security, including a transfer for a Sell Direct transaction, redeeming a savings bond, and changing the destination of interest and redemption payments for marketable securities.
(d) Converted savings bonds. The rules for transactions governing converted savings bonds are contained in subpart E of this part.
[70 FR 57434, Sept. 30, 2005 as amended at 70 FR 57443, Sept. 30, 2005]
§ 363.23-363.24 [Reserved]
§ 363.25 How do I conduct transactions in my account or in Treasury securities held in my account?
We will provide online instructions for conducting transactions through your account. If you are unable to conduct a transaction online, you should contact us at the address provided in §363.5. Offline transactions will require a certified or guaranteed signature. See §363.43 for instructions for obtaining a certified or guaranteed signature.
§ 363.26 What is a transfer?
(a) A transfer is a transaction to:
(1) Move a Treasury security, or a portion of a Treasury security, from one account to another within TreasuryDirect®;
(2) Move a marketable Treasury security to or from a TreasuryDirect account and an account in Legacy Treasury Direct or the commercial book-entry system.
(b) Transfers of a specific type of security may be limited by the subparts that refer to that security.
(c) Gift delivery is not a transfer. A transfer does not include delivery of a gift savings bond from the donor to the recipient. This is referred to as a delivery.
[67 FR 64286, Oct. 17, 2002, as amended at 70 FR 57443, Sept. 30, 2005]
§ 363.27 What do I need to know about accounts for minors who have not had a legal guardian appointed by a court?
(a) We do not permit a minor to purchase securities.
(b) Opening an account in the name of a minor. (1) A parent or a person who provides the chief financial support of a minor may open an account for a minor. The person opening the account for a minor is referred to as the custodian of the minor's account.
(2) The custodian is a fiduciary for the minor as to the securities held in the minor's account.
(3) The custodian must have an existing primary TreasuryDirect® account in order to open the minor's account.
(i) The minor's account is an account that is linked to the custodian's primary account.
(ii) The custodian must use his or her primary TreasuryDirect account as a portal to open and access the minor's account.
(4) Securities contained in the minor's account will be registered in the name and SSN of the minor, in either sole owner, owner with beneficiary, or primary owner with secondary owner forms of registration.
(c) Procedure for opening an account for a minor. (1) Online instructions will be provided for establishing an account for a minor.
(2) The custodian must certify that all transactions conducted through the account will be on the minor's behalf.
(d) Procedure for conducting transactions in the minor's account. The custodian must conduct all transactions in the minor's account on behalf of the minor. Access to the minor's account is through the custodian's primary account.
(e) Transactions permitted in the minor's account. (1) The custodian may purchase securities for and on behalf of the minor through the minor's account.
(2) The custodian may redeem savings bonds on behalf of the minor through the minor's account. We will report the interest earned on the security to the name and SSN of the minor.
(3) The custodian may not purchase gift savings bonds from the minor's account.
(4) The custodian may transfer a security to another TreasuryDirect account, provided the account is a linked account bearing the name and taxpayer identification number of the minor. The custodian can transfer a marketable Treasury security to an account in Legacy Treasury Direct or the commercial book-entry system, and may request a Sell Direct transaction.
(5) Securities may be transferred to the minor's account.
(6) Gift savings bonds may be delivered to the minor's account.
(7) The custodian may grant rights to view and conduct transactions in the security as may be permitted by §363.22.
(8) The custodian may purchase a certificate of indebtedness on behalf of the minor. The certificate of indebtedness is the property of the minor.
(f) When the minor reaches the age of 18 years. (1) The only transactions that the custodian may make in the minor's account after the minor attains the age of 18 years are to purchase new securities, and to transfer the securities contained in the minor's account to another account in the name and SSN of the minor. The receiving account in the name and SSN of the minor may be a primary account established by the minor, or it may be another minor linked account with the same or a different custodian. The custodian may transfer one or more of the securities at a time, or the custodian may de-link the account and transfer all of the securities contained in the account to the minor's previously established primary TreasuryDirect account. The minor must establish his or her own primary TreasuryDirect account prior to transfer of his or her securities.
(2) In order to gain control of the securities held in the minor's account, the minor must first open his or her own primary account.
(3) The minor may gain control of the securities held in the minor's account by the custodian transferring the securities held in the minor's account to the minor's primary account, or the minor may request that Public Debt transfer the securities to his or her primary account.
(4) The minor may gain control of his or her certificate of indebtedness by the custodian de-linking the account and transferring the certificate of indebtedness to the minor's primary account, or the minor may request that Public Debt de-link the account and transfer the certificate of indebtedness to his or her primary account.
(g) Liability. We rely on the certification of the custodian that he or she is acting on behalf of the minor. We are not liable to the minor, or any other person or party acting on behalf of the minor, for the actions of the custodian, nor are we liable for the application of any proceeds from the transfer or redemption of securities held in the minor's account. The custodian agrees to indemnify and hold harmless the United States in the event that we suffer any loss on account of any claim relating to a minor account.
[69 FR 2507, Jan. 16, 2004, as amended at 69 FR 50309, Aug. 16, 2004; 70 FR 57443, Sept. 30, 2005]
§ 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 form. Signatures on paper transactions must be certified or guaranteed as provided in §363.43.
[70 FR 57434, Sept. 30, 2005]
§ 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.
[70 FR 57434, Sept. 30, 2005]
§§ 363.30-363.32 [Reserved]
§ 363.33 Can an attorney-in-fact conduct transactions in my TreasuryDirect® account?
(a) An attorney-in-fact who provides a copy of a durable power of attorney granting him or her the authority to conduct TreasuryDirect transactions on behalf of the owner may conduct transactions online.
(b) An attorney-in-fact who provides a copy of a limited power of attorney may only conduct transactions that he or she is permitted by his or her power. Such transactions will be through an offline process.
(c) A written copy of the power of attorney must be sent to the address provided in §363.5. We may require any additional evidence that we consider necessary to support the power.
§ 363.34 What happens if an owner becomes incompetent after opening a TreasuryDirect® account?
If we receive notice that the owner of a TreasuryDirect account has become incompetent, we will suspend all transactions in the account until we establish the authority of another person to act in his or her behalf.
[67 FR 64286, Oct. 17, 2002, as amended at 68 FR 24807, May 8, 2003]
§ 363.35 When is a transaction effective?
A transaction is effective when we post it to our records.
§ 363.36 What securities can I purchase and hold in my TreasuryDirect® account?
You can purchase and hold eligible Treasury securities in your account. Eligible securities are Series EE and Series I savings bonds, certificates of indebtedness, and marketable Treasury securities that are available for purchase through the TreasuryDirect Web site. In addition, you can hold converted savings bonds and eligible marketable Treasury securities that have been transferred from the Legacy Treasury Direct system or the commercial book-entry system.
[70 FR 57443, Sept. 30, 2005]
§ 363.37 How do I purchase and make payment for eligible Treasury securities through my TreasuryDirect® account?
(a) Online purchase. Purchases of eligible Treasury securities through your TreasuryDirect account must be made online.
(b) Payment for savings bonds and marketable Treasury securities. You can pay for eligible savings bonds and marketable Treasury securities by either a debit to your designated account at a United States financial institution using the ACH method, or by using the redemption proceeds of your certificate of indebtedness.
(c) Payment for certificate of indebtedness. You can pay for a certificate of indebtedness by a direct deposit from your financial institution or employer to your TreasuryDirect account using the ACH method; by a debit from your designated account at a financial institution using the ACH method, but the amount of the debit is limited to $1000 or less; or by using the proceeds of maturing securities held in your Treasury Direct account.
[70 FR 57443, Sept. 30, 2005]
§ 363.38 What happens if my financial institution returns an ACH debit?
If your designated financial institution returns an ACH debit, we reserve the right to reinitiate the debit at our option. We also reserve the right to reverse the transaction, thereby removing the security from your TreasuryDirect® account. If the ACH return occurs after the security has been redeemed, transferred, or has matured and the proceeds paid, we reserve the right to reverse previously processed security transactions. We are not responsible for any fees your financial institution may charge relating to returned ACH debits.
[70 FR 57443, Sept. 30, 2005]
§ 363.39 Will I receive a confirmation of my request to purchase a Treasury security?
At the time that you submit a request to purchase a Treasury security through your TreasuryDirect® account, we will make available a printable online confirmation of your request. Final confirmation will occur when the security is issued into your account. You will not receive a mailed confirmation.
§ 363.40 How are payments of principal and interest made?
(a) Payment of a savings bond that has reached final maturity. We will purchase a certificate of indebtedness in your TreasuryDirect® account using the proceeds of a matured savings bond.
(b) Payments of interest and principal (except a savings bond that has reached final maturity). (1) We provide two methods of receiving payments of principal and interest:
(i) Payment to your account at a financial institution by the ACH method, or
(ii) Payment to your TreasuryDirect account to purchase a certificate of indebtedness.
(2) You may select different payment destinations for principal and interest for a marketable Treasury security. You may change your payment destination at any time, unless the security is in the closed book period. (See §363.210.)
(3) If we are unable to deliver a payment, we will use the payment to purchase a certificate of indebtedness in your TreasuryDirect account.
[70 FR 57443, Sept. 30, 2005]
§ 363.41 What happens if an ACH payment is returned to Public Debt?
We will notify you electronically of the returned payment. We will hold your payment until you provide us with instructions. Returned payments will not earn interest. We reserve the right to redirect a returned payment to the bank account at a financial institution that you have designated in your TreasuryDirect® account as your primary bank account, if that account is different from the one that returned the payment to us. We are not responsible for any fees your financial institution may charge relating to returned ACH payments.
[69 FR 50308, Aug. 16, 2004]
§ 363.42 How will my interest income be reported for tax purposes?
When you open your TreasuryDirect® account, you consent to receive the appropriate tax reporting forms by electronic means. We will notify you when your tax reporting forms are available. The form will be available in printable form through your TreasuryDirect account. If you withdraw your consent to receive tax reporting forms by electronic means, we reserve the right to redeem any savings bonds held in your account and close your account.
[67 FR 64286, Oct. 17, 2002, as amended at 70 FR 57435, Sept. 30, 2005]
§ 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) Certification within the United States. For certifications within the United States, the certifying individual must be authorized to bind his or her institution by his or her acts, to guarantee signatures to assignments of securities, or to certify assignments of securities. The following table provides a list of authorized certifying individuals and the required evidence of authority. Members of Treasury-recognized signature guarantee programs are for security transfers only.
------------------------------------------------------------------------ Evidence of certifying Who can certify signatures in the U.S. individual's authority------------------------------------------------------------------------(1) Officers and employees of (i) We require the depository institutions. institution's seal or signature guarantee stamp. (ii) If the institution is an authorized paying agent for U.S. Savings Bonds, we require a legible imprint of the paying agent's stamp.(2) Institutions that are members of We require the imprint of the Treasury_recognized signature signature guarantee stamp, guarantee programs (for security i.e., the STAMP, SEMP, or MSP transfers only). stamp for members of the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program, or the New York Stock Exchange Inc. Medallion Signature Program.(3) Officers and employees of corporate We require the entity's seal. central credit unions, Federal Land Banks, Federal Intermediate Credit Banks and Banks for Cooperatives, the Central Bank for Cooperatives, and Federal Home Loan Banks.(4) Commissioned or warrant officers of (i) We require a statement that the United States Armed Forces, for the person executing the signatures executed by Armed Forces assignment is one whose personnel, civilian field employees, signature the officer is and members of their families. authorized to certify under our regulations. (ii) The certifying official's rank must be shown.(5) A judge or clerk of the court...... We require the seal of the court.(6) Other persons as designated by the Evidence is determined by our Commissioner or Deputy Commissioner of procedures. Public Debt.------------------------------------------------------------------------
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(b) Certification within foreign countries. The following table lists the authorized certifying individuals for foreign countries and the required evidence of the individual's authority. |
------------------------------------------------------------------------ Who can certify signatures in foreign Evidence of certifying countries individual's authority------------------------------------------------------------------------(1) United States diplomatic or (i) We require the seal or consular officials. stamp of the office. (ii) If there is no seal or stamp, then we require certification by some other authorized individual, under seal or stamp.(2) Managers and officers of foreign We require the seal of the branches of U.S. depository depository institution, or the institutions and institutions that are imprint of the signature members of Treasury-recognized guarantee stamp, i.e., the signature guarantee programs (for STAMP, SEMP, or MSP stamp for security transfers only). members of the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program, or the New York Stock Exchange Incorporated Medallion Signature Program.(3) Notaries Public and other officers (i) We require the official authorized to administer oaths, seal or stamp of the office. provided their authority is certified (ii) If there is no seal or by a United States diplomatic or stamp, the position must be consular official. certified by some other authorized individual, under seal or stamp, or otherwise proved to our satisfaction.------------------------------------------------------------------------
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(c) Duties and liabilities of certifying individuals. (1) The certifying individual must first establish the identity of the signer. (2) The form must be signed in the presence of the certifying individual. (3) If the certifying individual is not an officer, the certifying individual must insert the words “Authorized Signature” in the space provided for the title. (4) If the certifying individual is negligent in making the certification, the certifying individual and his or her organization are jointly and severally liable for any loss the United States may incur as a result of the negligence. (d) Guaranteed signatures. (1) A security or other form requiring certification need not be executed in the presence of a certifying individual if the signature is unconditionally guaranteed by the certifying individual. To guarantee a signature, the certifying individual must add a dated endorsement after the signature. For example:
Signature guaranteed, First National Bank of Smithville, Smithville, NH, by A. B. Doe, President, dated 1/1/2001. (2) The certifying individual and his or her organization unconditionally guarantee to us that the signature is genuine and the signer had the legal capacity to execute the assignment or related form. (e) Guaranteed absence of a signature. (1) A form requiring a certified signature need not be signed when a certifying individual associated with a depository financial institution places the following endorsement on the security or the form:
Absence of signature by owner and validity of transaction guaranteed, Second State Bank of Jonesville, Jonesville, NC, by B. R. Butler, Vice President, dated 11/1/2001. (2) The endorsement must be dated and the seal of the institution must be added. (3) This form of endorsement is an unconditional guarantee to us that the institution is acting for the signer under proper authorization. (f) Persons who cannot act as certifying individuals. Any person having an interest in a security involved in the transaction cannot act as a certifying individual. However, an authorized officer or employee of a depository financial institution that is a member of a Treasury-recognized signature guarantee program can act as a certifying individual for transfer of a security to the institution or on behalf of the institution. [67 FR 64286, Oct. 17, 2002, as amended at 70 FR 57435, Sept. 30, 2005] § 363.44 What happens when a TreasuryDirect
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