[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR321.2]

[Page 203]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 321--PAYMENTS BY BANKS AND OTHER FINANCIAL INSTITUTIONS OF UNITED STATES SAVINGS BONDS AND UNITED STATES SAVINGS NOTES (FREEDOM SHARES)--Table of Contents
 
                 Subpart B--Procedures for Qualification
 
Sec. 321.2  Eligible organizations.


    (a) Organizations eligible to apply for qualification and to serve 
as paying agents are commercial banks, trust companies, savings banks, 
savings and loan associations, building and loan associations (including 
cooperative banks), credit unions, cash depositories, industrial banks, 
or similar financial institutions which:
    (1) Are incorporated under Federal law or the laws of a State, 
territory or possession of the United States, the District of Columbia, 
or the Commonwealth of Puerto Rico;
    (2) In the usual course of business accept, subject to withdrawal, 
funds for desposit or the purchase of shares;
    (3) Are under the supervision of the banking department or 
equivalent authority of the jurisdiction in which they are incorporated; 
and
    (4) Maintain regular offices for the transaction of business.
    (b)(1) An organization that desires to redeem securities must first 
qualify as a paying agent. An organization that has qualified and is 
serving as a paying agent must:
    (i) MICR-encode data on securities accepted for payment,
    (ii) Submit them directly to the Check Department of the appropriate 
Federal Reserve Bank or Branch or the Regional Check Processing Center, 
and
    (iii) Receive payment of fees by ACH, or arrange to obtain one or 
more of these services from another financial institution.
    (2) All presenting institutions, as defined in Sec. 321.1, must 
qualify as savings bond paying agents and enroll in EZ CLEAR.

[53 FR 37511, Sept. 26, 1988, as amended at 59 FR 10536, Mar. 4, 1994]