[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: 31CFR356.30]

[Page 366-367]
 
                  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 D--Miscellaneous Provisions
 
Sec. 356.30  Payment of principal and interest on notes and bonds.


    (a) General. Principal on notes and bonds will be paid on the 
maturity date as specified in the offering announcement unless the 
security is called pursuant to its terms and in accordance with 
appropriate public notice. Interest on notes and bonds accrues from the 
dated date. Interest is payable on a semiannual basis on the interest 
payment dates specified in the offering announcement through the date 
that the principal becomes payable. In the event any principal or 
interest payment date is not a business day, the amount is payable 
(without additional interest) on the next business day.
    (b) Treasury inflation-indexed securities. At maturity, the 
inflation-adjusted principal will be paid, unless the inflation-adjusted 
principal is less than the par amount of the security, in which case an 
additional amount will be paid at maturity so that the additional amount 
plus the inflation-adjusted principal equals the par amount. If a 
security has been stripped, any such additional amount will be paid at 
maturity to holders of principal components only. Regardless of whether 
or

[[Page 367]]

not an additional amount is paid, the final interest payment will be 
based on the inflation-adjusted principal at maturity.

[58 FR 414, Jan. 5, 1993, as amended at 62 FR 852, Jan. 6, 1997]