[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: 31CFR344.5]

[Page 279-280]
 
                  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 B_Time Deposit Securities
 
Sec.  344.5  What other provisions apply to subscriptions for Time 
Deposit securities?

    (a) When is my subscription due? The subscriber must fix the issue 
date of each security in the subscription. The issue date must be a 
business day. The issue date cannot be more than sixty days after the 
date BPD receives the subscription. If the subscription is for $10 
million or less, BPD must receive a subscription at least five days 
before the issue date. If the subscription is for over $10 million, BPD 
must receive the subscription at least seven days before the issue date.

    Example to paragraph (a): If SLGS securities totaling $10 million or 
less will be issued on November 16th, BPD must receive the subscription 
no later than November 11th. If SLGS securities totaling more than $10 
million will be issued on November 16th, BPD must receive the 
subscription no later than November 9th. In all cases, if SLGS 
securities will be issued on November 16th, BPD will not accept the 
subscription before September 17th.

    (b) How do I start the subscription process? A subscriber starts the 
subscription process by entering into SLGSafe the following information:
    (1) The issue date;
    (2) The total principal amount;
    (3) The issuer's name and Taxpayer Identification Number;
    (4) The title of an official authorized to purchase SLGS securities; 
]
    (5) A description of the tax-exempt bond issue; and ]
    (6) The certification required by Sec.  344.2(e)(1), if the 
subscription is submitted by an agent of the issuer.
    (c) Under what circumstances can I cancel a subscription? You cannot 
cancel a subscription unless you establish, to the satisfaction of 
Treasury, that the cancellation is required for reasons unrelated to the 
use of the SLGS program to create a cost-free option.
    (d) How do I change a subscription? You can change a subscription on 
or before 3 p.m., Eastern time, on the issue date. Changes to a 
subscription are acceptable with the following exceptions:
    (1) You cannot change the issue date to require issuance earlier or 
later than the issue date originally specified; provided, however, you 
may change the issue date up to seven days after the original issue date 
if you establish to the satisfaction of Treasury that such change is 
required as a result of circumstances that were unforeseen at the time 
of the subscription and are beyond the issuer's control (for example, a 
natural disaster);
    (2) You cannot change the aggregate principal amount originally 
specified in the subscription by more than ten percent; and

[[Page 280]]

    (3) You cannot change an interest rate to exceed the maximum 
interest rate in the SLGS rate table that was in effect for a security 
of comparable maturity on the business day that you began the 
subscription process.
    (e) How do I complete the subscription process? The completed 
subscription must:
    (1) Be dated and submitted electronically by an official authorized 
to make the purchase;
    (2) Separately itemize securities by the various maturities, 
interest rates, and first interest payment dates (in the case of notes 
and bonds);
    (3) Not be more than ten percent above or below the aggregate 
principal amount originally specified in the subscription;
    (4) Not be paid with proceeds that are derived, directly or 
indirectly, from the redemption before maturity of SLGS securities 
subscribed for on or before December 27, 1976;
    (5) Include the certifications required by Sec.  344.2(e)(2)(i) 
(relating to yield); and
    (6) Include the information required under paragraph (b), if not 
already provided.
    (f) When must I complete the subscription? BPD must receive a 
completed subscription on or before 3:00 p.m., Eastern time, on the 
issue date.