[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: 31CFR357.23]

[Page 422-423]
 
                  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 
 
 Subpart C_Legacy Treasury Direct Book-Entry Securities System (Legacy 
                            Treasury Direct)
 
Sec.  357.23  Judicial proceedings--sovereign immunity.

    (a) Department and Federal Reserve Banks not proper parties. The 
Department and the Federal Reserve Banks are not proper defendants in a 
judicial proceeding involving competing claims to a security held in 
Legacy Treasury Direct [reg] nor are they subject to any 
injunction or restraining order issued with respect to a security. The 
Department will not recognize a notice of a

[[Page 423]]

pending or contemplated judicial or administrative proceeding affecting 
a security in Legacy Treasury Direct.
    (b) Orders--(1) Ownership rights. The Department will recognize a 
final order entered by a court that affects ownership rights in a 
security in Legacy Treasury Direct if:
    (i) The order is consistent with the provisions of this subpart and 
the terms and conditions of the security; and
    (ii) The Department has received evidence of the order, as provided 
in paragraph (c) of this section.
    (2) Transaction request. The Department will honor a transaction 
request submitted by a person appointed by a court and having authority 
under an order of a court to dispose of the security or payment with 
respect thereto if:
    (i) The ordered disposition of the security or payments with respect 
thereto is consistent with the provisions of this subpart and the terms 
and conditions of the security; and
    (ii) The Department has received evidence of the appointment and 
order, as provided in paragraph (c) of this section.
    (c) Evidence required. Before the Department will recognize an order 
or determination entered by a court, the Department must have received a 
certified copy of the judgment, decree, or order and any additional 
documents deemed necessary by the Department. A certificate from the 
clerk of the court, bearing the seal of the court, must also be 
submitted stating that the judgment, decree, or order is still in full 
force and has not been stayed or appealed, and that the time for filing 
an appeal has passed. Before the Department will honor a transaction 
request submitted by a person appointed by a court, the Department must 
receive a certified copy of the order making the appointment and 
describing specifically the person's authority, and any additional 
documents deemed necessary by the Department.

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