[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: 31CFR356.4]

[Page 369-370]
 
                  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.  356.4  What are the book-entry systems in which auctioned Treasury 
securities may be issued?

    There are three book-entry securities systems--the commercial book-
entry system, TreasuryDirect[supreg], and Legacy Treasury 
Direct[supreg]--into which we issue marketable Treasury securities. We 
maintain and transfer securities in these three book-entry systems at 
their par amount. Par amounts of Treasury inflation-protected securities 
do not include adjustments for inflation. Securities may be transferred 
from one system to the other. See Department of the Treasury Circular, 
Public Debt Series No. 2-86, as amended (31 CFR part 357) and 31 CFR 
part 363.
    (a) The commercial book-entry system. When depository institutions 
or dealers submit bids for Treasury securities in an auction, securities 
awarded as a result of those bids are generally held in the commercial 
book-entry system. Specifically, we maintain book-entry accounts in the 
National Book-Entry System [reg] (``NBES'') for Federal 
Reserve Banks, 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. The accounts held for 
others include those of other depository institutions and dealers, which 
may, in turn, maintain accounts for others.
    (b) TreasuryDirect. In this system, account holders maintain 
accounts in a

[[Page 370]]

book-entry, online system directly on the records of the Bureau of the 
Public Debt, Department of the Treasury. Bids for securities to be held 
in TreasuryDirect are submitted through the Internet.
    (c) Legacy Treasury Direct. In this system, we maintain the book-
entry securities of account holders directly on the records of the 
Bureau of the Public Debt, Department of the Treasury. Bids for 
securities to be held in Legacy Treasury Direct are generally submitted 
directly to us, although such bids may also be forwarded to us by a 
depository institution or dealer.

[69 FR 45202, July 28, 2004, as amended at 70 FR 57439, Sept. 30, 2005]