[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: 31CFR344.4]

[Page 261-262]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 344--U.S. TREASURY SECURITIES--STATE AND LOCAL GOVERNMENT SERIES--Table of Contents
 
                   Subpart B--Time Deposit Securities
 
Sec. 344.4  What are Time Deposit securities?


    Time deposit securities are issued as certificates of indebtedness, 
notes and bonds.

[[Page 262]]

    (a) What are the terms of maturity? The issuer must fix the maturity 
periods for time deposit securities, which are issued as follows:

------------------------------------------------------------------------
                                            Maturity range
   Time deposit securities   -------------------------------------------
                                      From           Up to and including
------------------------------------------------------------------------
Certificates of Indebtedness  15 days.............  1 year.
 that bear no.
interest....................
------------------------------------------------------------------------
Certificates of Indebtedness  30 days.............  1 year.
------------------------------------------------------------------------
Notes.......................  1 year and 1 day....  10 years.
------------------------------------------------------------------------
Bonds.......................  10 years and 1 day..  40 years; provided
                                                     that for any
                                                     subscription for a
                                                     bond exceeding 30
                                                     years, the maximum
                                                     available rate must
                                                     be the rate on a 30-
                                                     year bond.
------------------------------------------------------------------------

    (b) How are SLGS rates determined? For each security, the issuer 
shall designate an interest rate that does not exceed the maximum 
interest rate shown in the daily SLGS rate table as defined in 
Sec. 344.1.
    (1) When is the SLGS rate table released? We release the SLGS rate 
table to the public by 10:00 a.m., Eastern time, each business day. If 
we find that due to circumstances beyond our control the SLGS rate table 
is not available at that time on any given business day, the SLGS rate 
table for the preceding business day applies.
    (2) How do I lock in a SLGS rate? The applicable daily SLGS rate 
table for a non-Internet subscription is the one in effect on the date 
the initial subscription is faxed, postmarked, or carrier date stamped. 
The applicable daily SLGS rate table for a SLGSafeSM Internet initial 
subscription is the one in effect on the date shown on Public Debt's 
Application server.
    (3) Where can I find the SLGS rate table? The SLGS rate table can be 
obtained:
    (i) On the Internet at Public Debt's website; or
    (ii) By calling DSI at (304) 480-7752.
    (c) How are interest computation and payment dates determined? 
Interest on a certificate of indebtedness is computed on an annual basis 
and is paid at maturity with the principal. Interest on a note or bond 
is paid semi-annually. The issuer specifies the first interest payment 
date, which must be at least thirty days and less than or equal to one 
year, from the date of issue. The final interest payment date must 
coincide with the maturity date of the security. Interest for other than 
a full interest period is computed on the basis of a 365-day or 366-day 
year (for certificates of indebtedness) and on the basis of the exact 
number of days in the half-year (for notes and bonds). See the Appendix 
to subpart E of part 306 of this subchapter for rules regarding 
computation of interest.