[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: 31CFR353.31]

[Page 330-331]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 353--REGULATIONS GOVERNING UNITED STATES SAVINGS BONDS, SERIES EE AND HH--Table of Contents
 
                           Subpart G--Interest
 
Sec. 353.31  Series HH bonds.

    (a) General. Series HH bonds are current income bonds issued at par 
(face amount). Interest on a Series HH bond is paid semiannually 
beginning six months from the issue date. Interest ceases at final 
maturity, or, if the bond is redeemed prior to final maturity, as of the 
end of the interest period last preceding the date of redemption. For 
example, if a bond on which interest is payable on January 1 and July 1 
is redeemed on September 1, interest ceases as of the preceding July 1, 
and no interest will be paid for the period from July 1 to September 1. 
However, if the redemption date falls on an interest payment date, 
interest ceases on that date. Information regarding interest rates is 
found in Department of the Treasury Circular, Public Debt Series No. 2-
80, current revision (31 CFR part 352).
    (b) Payment of interest. Series HH bond interest accounts are 
maintained by the Bureau of the Public Debt, Parkersburg, WV. Interest 
on bonds issued on or after October 1, 1989 will be paid on each 
interest due date by the Automated Clearing House (ACH) method to the 
owner or coowner's account at a financial institution, unless the Bureau 
determines that extraordinary circumstances warrant payment by check or 
other means. Interest on bonds issued prior to October 1, 1989, is 
payable by check drawn to the order of the owner or both coowners or, 
upon request, by the ACH method to the owner or coowner's account at a 
financial institution. Checks will be mailed to the delivery address 
provided to the Bureau. Deposit account information for ACH payments 
shall be provided on the form designated by the Bureau. Series H 
interest payments made by the ACH method are governed by the regulations 
at 31 CFR part 370.

(Approved by the Office of Management and Budget under control number 
1535-0094)
    (c) Delivery of interest. Notices affecting the delivery of interest 
payments. To ensure appropriate action, notices affecting the delivery 
of interest payments on Series HH bonds must be received by the Bureau 
of the Public Debt, Parkersburg, WV 26102-1328, at least one month prior 
to the interest payment date. Each notice must include the owner or 
coowner's name and the taxpayer identifying number appearing on the 
account under which records of the bonds are maintained.

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    (d) Reissue during interest period. Physical reissue of a Series HH 
bond may be made without regard to interest payment dates. The Series HH 
interest accounts maintained by the Bureau of the Public Debt will be 
closed in the first week of the month preceding each interest payment 
date, and payments will be made pursuant to the information contained in 
the accounts as of the date they are closed.
    (e) Endorsement of checks. Interest checks must be endorsed in 
accordance with the regulations governing the payment of fiscal agency 
checks, as contained in 31 CFR part 355.
    (f) Payment of interest by the ACH method--(1) Submission of deposit 
account information. Payments on all Series HH bonds assigned to the 
same account maintained by the Bureau must be made to the same deposit 
account at a financial institution.
    (2) Deposit account held by individuals in their own right. Where 
the Series HH bonds are registered in the name of individual(s) as sole 
owner, or as owner and beneficiary, and the deposit account at the 
financial institution is held in the name of individual(s) in their own 
right, the owner's name must appear on the deposit account. Where the 
bonds are registered in the names of two individuals as coowners and the 
deposit account is held in the name of individual(s) in their own right, 
the registration of the bonds and the title of the account must contain 
at least one name that is common to both. The deposit account to which 
the interest payments are directed should preferably be established in a 
form identical to the registration of the bonds to ensure that rights of 
ownership and survivorship can be more easily identified and preserved. 
Neither the United States nor any Federal Reserve Bank shall be liable 
for any loss sustained because the interest of the holder(s) of a 
deposit account to which payments are made are not the same as the 
owner(s) of the bonds.
    (3) Deposit account held by organization. Where the deposit account 
to which interest payments are to be directed is held in the name of the 
financial institution itself acting as sole trustee, or as co-trustee, 
or is the name of a commercially-managed investment fund, the owner or 
coowner should inquire whether the financial institution is able to 
receive ACH payments; if not, the owner or coowner should make 
alternative arrangements.
    (4) Financial institution cannot accept ACH payments. If after 
submission of deposit account information, it is determined that ACH 
payments cannot be accepted by the designated financial institution, 
pending receipt of new deposit account information, payment will be made 
by check drawn to the registered owner or both coowners and mailed to 
the address of record.
    (5) Cancellation of ACH arrangement. (i) Bonds issued on or after 
October 1, 1989. As set forth in paragraph (b) of this section and in 
the Series HH offering contained in Circular No. 2-80, interest on 
Series HH bonds issued on or after October 1, 1989, will be paid by the 
ACH method. In the absence of extraordinary circumstances, a request to 
discontinue payment by the ACH method in favor of payment by check will 
not be accepted.
    (ii) Bonds issued prior to October 1, 1989. An ACH arrangement 
established for Series HH bonds issued prior to October 1, 1989, shall 
remain in effect until it is terminated by a request from the owner or 
coowner submitted to the Bureau of the Public Debt, Parkersburg, WV 
26102-1328.
    (6) Rules. Series HH interest payments made by the ACH method are 
governed by the regulations at 31 CFR part 370.
    (7) Nonreceipt or loss of interest payment. The Bureau of the Public 
Debt, Parkersburg, WV 26102 should be notified if:
    (i) An interest check is not received or is lost after receipt or
    (ii) An ACH payment is not credited to the designated account and 
the financial institution has no record of receiving it. The notice 
should include the owner or coowner's name and taxpayer identifying 
number and the interest payment date.

[54 FR 40254, Sept. 29, 1989, as amended at 59 FR 10541, Mar. 4, 1994; 
64 FR 40487, July 26, 1999]

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