[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR344.1]

[Page 273-274]
 
                  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 A_General Information
 
Sec.  344.1  What special terms do I need to know to understand this part?

    As appropriate, the definitions of terms used in this part are those 
found in the relevant portions of the Internal Revenue Code and the 
Income Tax Regulations.
    BPD's Web site refers to http://www.slgs.gov.
    Business day(s) means Federal business day(s).
    Current Treasury borrowing rate means the prevailing market rate, as 
determined by Treasury, for a Treasury security with the specified 
period to maturity. In the case where SLGS rates are needed for 
maturities currently not issued by Treasury, at our discretion, suitable 
proxies for Treasury securities and/or a rate setting methodology, as 
determined by the Secretary, may be used to derive a current Treasury 
borrowing rate. At any time that the Secretary establishes such proxies 
or a rate-setting method or determines that the methodology should be 
revised, we will make an announcement.
    Day(s) means calendar day(s).
    Eligible source of funds means:
    (1) Any amounts that constitute gross proceeds of a tax-exempt bond

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issue or are reasonably expected to become gross proceeds of a tax-
exempt bond issue;
    (2) Any amounts that formerly were gross proceeds of a tax-exempt 
bond issue, but no longer are treated as gross proceeds of such issue as 
a result of the operation of the universal cap on the maximum amount 
treated as gross proceeds under 26 CFR 1.148-6(b)(2);
    (3) Amounts held or to be held together with gross proceeds of one 
or more tax-exempt bond issues in a refunding escrow, defeasance escrow, 
parity debt service reserve fund, or commingled fund (as defined in 26 
CFR 1.148-1(b));
    (4) Proceeds of a taxable bond issue that refunds a tax-exempt bond 
issue or is refunded by a tax-exempt bond issue; or
    (5) Any other amounts that are subject to yield limitations under 
the rules applicable to tax-exempt bonds under the Internal Revenue 
Code.
    Issuer refers to the Government body or other entity that issues 
state or local government bonds described in section 103 of the Internal 
Revenue Code.
    SLGS rate means the current Treasury borrowing rate, less one basis 
point, as released daily by Treasury in a SLGS rate table.
    SLGS rate table means a compilation of SLGS rates available for a 
given day.
    ``We,'' ``us,'' or ``the Secretary'' refers to the Secretary and the 
Secretary's delegates at the Department of the Treasury (Treasury), 
Bureau of the Public Debt (BPD). The term also extends to any fiscal or 
financial agent acting on behalf of the United States when designated to 
act by the Secretary or the Secretary's delegates.
    Yield on an investment means ``yield'' as computed under 26 CFR 
1.148-5.
    You or your refers to a SLGS program user or a potential SLGS 
program user.