[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR225.6]

[Page 76-77]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 225_ACCEPTANCE OF BONDS SECURED BY GOVERNMENT OBLIGATIONS IN LIEU OF 
 
Sec.  225.6  Payment of interest.

    (a) General. Except as otherwise provided in this section and Sec.  
225.7(b), interest accruing upon Government obligations pledged to a 
bond official's agency in accordance with this part will be remitted to 
the obligor or a depositary acting as agent or sub-agent for the 
obligor.

[[Page 77]]

    (b) Default. If the bond official determines that the obligor has 
defaulted, the bond official will retain any interest accruing upon 
Government obligations pledged to the bond official's agency or direct 
the custodian, in accordance with this part, to retain such interest. 
Unless otherwise provided by law, such interest will be available to 
satisfy any costs incurred by the United States related to the default, 
and any excess proceeds will be available to satisfy any other claim of 
the United States against the obligor.