[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: 31CFR321.3]

[Page 203-204]
 
                  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. 321.3  Procedure for qualifying and serving as paying agent.

    (a) Execution of application-agreement. An eligible organization 
wishing to act as a paying agent shall obtain from, execute, and file an 
application-agreement with the appropriate Federal Reserve Office 
referred to in Sec. 321.25. The terms of each application-agreement

[[Page 204]]

shall include a reference to the following provisions to which paying 
agents are subject:
    (1) The provisions prescribed by section 202 of Executive Order 
11246, entitled ``Equal Employment Opportunity'', as amended (42 U.S.C. 
2000e note); and
    (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).

For the purpose of these regulations, eligible institutions in Puerto 
Rico and the Virgin Islands shall make application to the Federal 
Reserve Bank Branch in Buffalo, New York and eligible institutions in 
Guam shall make application to the Federal Reserve Bank of Kansas City.
    (b) Qualification. Each Federal Reserve Bank referred to in 
Sec. 321.25, as fiscal agent of the United States, is authorized to 
qualify any eligible organization, located in the Reserve Bank's 
geographical area, as shown in Sec. 321.25, which possesses adequate 
authority under its charter to act as paying agent. Upon approval of an 
application-agreement, the Bank will issue a certificate of 
qualification to the organization. Such a certificate automatically 
qualifies the branches of the organization to redeem securities as 
provided in this part.
    (c) Announcement of authority. Upon receipt of a certificate of 
qualification from a Federal Reserve Bank referred to in Sec. 321.25, a 
financial institution may announce or advertise its authority to redeem 
eligible securities for cash and to process eligible Series E and EE 
savings bonds and savings notes presented for redemption in exchange for 
Series HH savings bonds under the provisions of Department of the 
Treasury Circular, Public Debt Series No. 2-80 (31 CFR part 352).
    (d) Adverse action. An organization will be notified by the 
appropriate Federal Reserve Bank referred to in Sec. 321.25, in writing, 
if its application-agreement to act as paying agent is not approved.

[53 FR 37511, Sept. 26, 1988, as amended at 55 FR 35395, Aug. 29, 1990; 
59 FR 10537, Mar. 4, 1994; 63 FR 38042, July 14, 1998]