31 C.F.R. Subpart D—Certificate of Indebtedness
Title 31 - Money and Finance: Treasury
Source: 69 FR 50309, Aug. 16, 2004, unless otherwise noted.
This subpart is the offering of the certificate of indebtedness by the Secretary of the Treasury (Secretary), and will continue until suspended or terminated by the Secretary. This subpart is also the governing regulations for the certificate of indebtedness. A TreasuryDirect certificate of indebtedness (certificate of indebtedness) is a security held within your primary or linked account, including a minor account for which you are the custodian, that is issued daily, with a one-day maturity, that automatically rolls over at maturity until you request redemption. A certificate of indebtedness has a minimum purchase amount of one cent. The only purpose of a certificate of indebtedness is to accumulate funds for the purchase of another eligible security in the TreasuryDirect system. A certificate of indebtedness within a minor's account is the property of the minor alone. The Secretary may suspend and rescind the suspension of sales of the certificate of indebtedness by announcement at any time. Upon the termination of this offering by the Secretary, the certificate of indebtedness ceases to roll over; the proceeds will be paid by the ACH method to the bank account at a financial institution that you designated in your TreasuryDirect® account as your primary bank account. The regulations in part 363 apply to a certificate of indebtedness. We expressly disclaim representations or warranties regarding a certificate of indebtedness that in any way conflict with these regulations and other applicable law. A certificate of indebtedness is issued in electronic form only in the TreasuryDirect® system. Certificates of indebtedness do not pay any interest. However, the Secretary may prescribe a rate of interest, or change the interest rate, for certificates of indebtedness by announcement at any time. The new rate would apply to certificates of indebtedness issued thereafter, as provided in the announcement. The Secretary's determination of the rate will be final. A certificate of indebtedness is automatically registered in the single ownership form of registration in the TreasuryDirect® account owner's name. You may purchase your certificate of indebtedness through one or more of the following four methods: (a) payroll deduction, in which your employer sends funds through the ACH method to your TreasuryDirect® account; (b) deposit by your financial institution, in which your financial institution sends funds by the ACH method to your TreasuryDirect account on a recurring or one-time basis; (c) through the Buy Direct® function of your TreasuryDirect account, in which you direct us to debit funds from your account at a financial institution to purchase a certificate of indebtedness. This method is limited to an amount no greater than $1000 per transaction. When you use the Buy Direct function to debit funds to purchase all or a portion of a certificate of indebtedness, you will not be permitted to schedule a redemption for cash from your certificate of indebtedness within five business days after the date of the debit entry; or (d) by using the proceeds from the redemption or interest payment of a security to purchase a certificate of indebtedness. [69 FR 50309, Aug. 16, 2004, as amended at 70 FR 57444, Sept. 30, 2005] We are not liable for any deposits of funds for the purchase of a certificate of indebtedness that are made in error by your financial institution or employer. A certificate of indebtedness is issued the business day after the purchase transaction is made. You may purchase an eligible security by redeeming all or a portion of your certificate of indebtedness and applying the proceeds toward the purchase of another eligible security. To do this, your certificate of indebtedness must be of sufficient value to cover the cost of the security. If you are paying for a security using the redemption proceeds of a certificate of indebtedness, you must pay the full amount of the purchase price of the security using the redemption proceeds. You can redeem part or all of the value of your certificate of indebtedness at any time, with one exception: if you purchased all or a portion of your certificate of indebtedness through a debit using the ACH method, you may not schedule a redemption from your certificate of indebtedness within five business days after the date of the debit entry. [70 FR 57444, Sept. 30, 2005] If an ACH payment used to purchase a certificate of indebtedness is later reversed, we reserve the right to reverse the purchase of the certificate of indebtedness. If the ACH reversal occurs after the certificate of indebtedness has been redeemed, we reserve the right to reverse previously processed security transactions, including securities that were purchased as gifts and securities that have been transferred or delivered from your account to the account of another TreasuryDirect® account owner. (a) You may delete a pending purchase of a certificate of indebtedness initiated from your TreasuryDirect® account. (b) You may delete a pending purchase of a security using a certificate of indebtedness as payment. (c) You may not delete a pending redemption of all or part of the value of a certificate of indebtedness. A certificate of indebtedness is nontransferable. You may not deliver a certificate of indebtedness to another TreasuryDirect® account as a gift. A certificate of indebtedness may not be pledged or used as collateral for the performance of an obligation. [69 FR 50309, Aug. 16, 2004. Redesignated at 70 FR 57437, Sept. 30, 2005]
Title 31: Money and Finance: Treasury
PART 363—REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT
Subpart D—Certificate of Indebtedness
§ 363.130 What does this subpart cover?
§ 363.131 What is a TreasuryDirect
§ 363.132 Can the sale of the certificate of indebtedness be suspended?
§ 363.133 What happens to my certificate of indebtedness if the offering is terminated by the Secretary?
§ 363.134 What regulations cover a certificate of indebtedness?
§ 363.135 In what form is a certificate of indebtedness issued?
§ 363.136 Do certificates of indebtedness pay interest?
§ 363.137 What do I need to know about the registration of a certificate of indebtedness?
§ 363.138 How do I purchase a certificate of indebtedness?
§ 363.139 Is Treasury liable for the purchase of a certificate of indebtedness that is made in error?
§ 363.140 When is a certificate of indebtedness issued?
§ 363.141 How do I purchase a security using the redemption proceeds of my certificate of indebtedness?
§ 363.142 Can I redeem my certificate of indebtedness for cash?
§ 363.143 What happens if an ACH payment used to purchase a certificate of indebtedness is later reversed?
§ 363.144 May I delete a pending transaction involving a certificate of indebtedness?
§ 363.145 May I transfer or deliver my certificate of indebtedness?
§ 363.146 May a certificate of indebtedness be pledged or used as collateral?
§§ 363.147-363.152 [Reserved]
