[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: 31CFR357.27]

[Page 416]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 357_REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES AND BILLS 
HELD IN LEGACY TREASURY DIRECT--Table of Contents
 
 Subpart C_Legacy Treasury Direct Book-Entry Securities System (Legacy 
                            Treasury Direct)
 
Sec.  357.27  Reinvestment.

    (a) General. Upon the request of an owner, the redemption proceeds 
of a security may be reinvested at maturity in a new security in the 
same form of registration, provided a new security is then being offered 
by the Department and provision for reinvestment is made in the 
offering. The new security must be in an authorized denominational 
amount and will be issued in accordance with the terms of the offering. 
If the new security is issued at a premium or with accrued interest, an 
additional payment will be required from the investor. If the new 
security is issued at a discount, the difference will be remitted to the 
owner.
    (b) Treasury bills. A request by an owner for a single or successive 
reinvestment of a Treasury bill must be made in accordance with the 
terms prescribed on the tender form submitted at the time of purchase of 
the original bill, or by a subsequent transaction request received not 
less than ten (10) business days prior to the maturity date of the bill. 
A request to revoke a direction to reinvest the proceeds of a bill must 
be received by the Department not less than ten (10) business days prior 
to the maturity date of the bill. If either a request for reinvestment 
or revocation of a reinvestment request is received less than ten (10) 
business days prior to maturity of the original bill, the Department may 
in its discretion act on such request if sufficient time remains for 
processing.
    (c) Issue date not coincidental with maturity date. If the date on 
which a security matures or is called does not coincide with the issue 
date of the security being purchased through reinvestment, the 
Department may, at its option, hold the redemption proceeds in the same 
form of registration as the maturing or called security, but no interest 
shall accrue or be paid on such funds.

(Approved by the Office of Management and Budget under control number 
1535-0068)

[51 FR 18265, May 16, 1986, as amended at 62 FR 18694, Apr. 16, 1997]