[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: 31CFR356.5]

[Page 356-357]
 
                  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. 356.5  Description of securities.

    Securities offered pursuant to this part are offered exclusively in 
book-entry form and are direct obligations of the United States, issued 
under chapter 31 of title 31 of the United States Code. The securities 
are subject to the terms and conditions set forth in this part, 
including the appendices, as well as the regulations governing book-
entry Treasury bills, notes, and bonds (31 CFR part 357), and the 
offering announcements, all to the extent applicable. When the 
Department issues additional securities with the same CUSIP number as 
outstanding securities, all securities with the same CUSIP number are 
considered the same security.
    (a) Treasury bills. Treasury bills are issued at a discount, are 
redeemed at their par amount at maturity, and have maturities of not 
more than one year.
    (b) Treasury notes--(1) Treasury fixed-principal \1\ notes. Treasury 
fixed-principal notes are issued with a stated rate of interest to be 
applied to the par amount, have interest payable semiannually, and are 
redeemed at their par amount at maturity. They are sold

[[Page 357]]

at discount, par, or premium, depending upon the auction results. They 
have maturities of at least one year, but not more than ten years.
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    \1\ The term ``fixed-principal'' is used in this part to distinguish 
such securities from ``inflation-indexed'' securities. Fixed-principal 
notes and fixed-principal bonds are referred to as ``notes'' and 
``bonds'' in official Treasury publications, such as offering 
announcements and auction results press releases, as well as in auction 
systems.
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    (2) Treasury inflation-indexed notes. Treasury inflation-indexed 
notes are issued with a stated rate of interest to be applied to the 
inflation-adjusted principal on each interest payment date, have 
interest payable semiannually, and are redeemed at maturity at their 
inflation-adjusted principal, or at their par amount, whichever is 
greater. They are sold at discount, par, or premium, depending upon the 
auction results. They have maturities of at least one year, but not more 
than ten years. (See appendix B for price and interest payment 
calculations and appendix C for Investment Considerations.)
    (c) Treasury bonds--(1) Treasury fixed-principal bonds. Treasury 
fixed-principal bonds are issued with a stated rate of interest to be 
applied to the par amount, have interest payable semiannually, and are 
redeemed at their par amount at maturity. They are sold at discount, 
par, or premium, depending upon the auction results. They typically have 
maturities of more than ten years.
    (2) Treasury inflation-indexed bonds. Treasury inflation-indexed 
bonds are issued with a stated rate of interest to be applied to the 
inflation-adjusted principal on each interest payment date, have 
interest payable semiannually, and are redeemed at maturity at their 
inflation-adjusted principal, or at their par amount, whichever is 
greater. They are sold at discount, par, or premium, depending upon the 
auction results. They typically have maturities of more than ten years. 
(See appendix B for price and interest payment calculations and appendix 
C for Investment Considerations.)

[58 FR 414, Jan. 5, 1993, as amended at 62 FR 851, Jan. 6, 1997]