[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: 31CFR356.3]

[Page 355-356]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356--SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 1-93)--Table of Contents
 
                     Subpart A--General Information
 
Sec. 356.3  Book-entry securities and systems.

    Securities issued subject to this part shall be held and transferred 
in either

[[Page 356]]

of the two book-entry securities systems--TRADES or TREASURY DIRECT--
described in this section. Securities are maintained and transferred, to 
the extent authorized in 31 CFR part 357, in these two book-entry 
systems at their par amount, e.g., for inflation-indexed securities, 
adjustments for inflation will not be included in this amount. 
Securities may be transferred from one system to the other in accordance 
with Treasury regulations governing book-entry Treasury bills, notes, 
and bonds. See Department of the Treasury Circular, Public Debt Series 
No. 2-86, as amended (31 CFR part 357).
    (a) Treasury/Reserve Automated Debt Entry System (TRADES). TRADES is 
established, maintained and operated by the Federal Reserve Banks acting 
as fiscal agents of the United States, pursuant to 12 U.S.C. 391. The 
Federal Reserve Banks maintain book-entry accounts for themselves, 
depository institutions, and other authorized entities, such as 
government and international agencies and foreign central banks. In 
their accounts, depository institutions maintain securities held for 
their own account and for the accounts of others, including other 
depository institutions and dealers, which may, in turn, maintain 
accounts for others. For accounts maintained in TRADES, Treasury 
discharges its payment obligations when payment is credited to the 
applicable account maintained at a Federal Reserve Bank or payment is 
made in accordance with the instructions of the person or entity 
maintaining such account. Further, neither Treasury nor the Federal 
Reserve Banks have any obligations to, nor will they recognize any 
claims of, any person or entity that does not have an account at a 
Federal Reserve Bank. In addition, neither Treasury nor the Federal 
Reserve Banks will recognize the claims of any person or entity with 
respect to any accounts not maintained at a Federal Reserve Bank.
    (b) TREASURY DIRECT. TREASURY DIRECT is a system in which the book-
entry securities of account holders are identified and maintained 
directly on the records of the Bureau of the Public Debt, Department of 
the Treasury. In TREASURY DIRECT, Treasury discharges its payment 
obligations when payment is made to a depository institution for credit 
to the account specified by the owner of the security, or when payment 
is made in accordance with the instructions of the owner of the 
security.

[58 FR 414, Jan. 5, 1993, as amended at 61 FR 43637, Aug. 23, 1996; 62 
FR 850, Jan. 6, 1997]