[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: 31CFR328.3]

[Page 221]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 328--RESTRICTIVE ENDORSEMENTS OF U.S. BEARER SECURITIES--Table of Contents
 
Sec. 328.3  Authorization for restrictive endorsements.

    (a) By banks. Banks are authorized, under the conditions and in the 
form hereinafter provided, to place restrictive endorsements upon the 
face of bearer securities owned by themselves or their customers for the 
purpose of presentation to Federal Reserve banks or branches, or to the 
Bureau of the Public Debt, as follows:
    (1) For payment or redemption--at any time within 1 calendar month 
prior to their maturity date, or the date on which they become payable 
pursuant to a call for redemption, or at any time after their maturity 
or call date;
    (2) For exchange--during any period for their presentation pursuant 
to an exchange offering;
    (3) For redemption at par in payment of Federal estate taxes (only 
eligible securities)--at any time prior to their maturity or call 
redemption date; and
    (4) For conversion to book-entry securities under subpart O of part 
306 of this chapter--at any time prior to their maturity or call 
redemption date.
    (b) By Service Center Directors and District Directors, Internal 
Revenue Service. Service Center Directors and District Directors, 
Internal Revenue Service, are authorized, under the conditions and in 
the form hereinafter provided, to place restrictive endorsements upon 
the face of bearer securities for the purpose of presentation to Federal 
Reserve banks or branches, or to the Bureau of the Public Debt, for 
redemption and application of the proceeds in payment of taxes (other 
than securities presented for redemption at par and application of the 
proceeds in payment of Federal estate taxes).
    (c) Instructions from Federal Reserve banks. Federal Reserve banks 
will inform eligible banks and Service Center Directors and District 
Directors, Internal Revenue Service, in their respective districts as to 
the procedure to be followed under the authority granted by these 
regulations. Restrictive endorsements shall not be placed on securities 
until such information is received from the Federal Reserve banks.