[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: 31CFR357.26]

[Page 423-424]
 
                  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.  357.26  Direct Deposit.

    (a) General. A payment by the Department with respect to a security 
shall be by direct deposit unless it is deemed necessary by the 
Department to make payment by another means. Direct Deposit payments are 
governed by the regulations at 31 CFR part 370.

[[Page 424]]

    (b) Names on account. Where the Legacy Treasury Direct 
[reg] securities account is in the name of individual(s) in 
their own right, and the deposit account at the financial institution is 
in the name of individual(s) in their own right, the two accounts must 
contain at least one name that is common to both.
    (c) Inquiry to financial institution. Where the deposit account to 
which payments are to be directed is held in the name of the financial 
institution itself acting as sole trustee, or as co-trustee, or is in 
the name of a commercially-managed investment fund, particular inquiry 
should first be made of the financial institution to make certain that 
the direct deposit payments can be received, and alternate arrangements 
made if it cannot do so.
    (d) Payments to master account. All payments relating to a single 
account master record must be made to the same designated account at a 
financial institution.
    (e) Deposit account. The deposit account to which payments are 
directed should preferably be established in a form identical to the 
registration of the securities account, particularly where the 
securities are registered jointly or with right of survivorship, to 
assure that the rights of ownership and of survivorship can be more 
easily identified and preserved. Neither the United States nor any 
Federal Reserve Bank shall be liable for any loss sustained because the 
interests of the holder(s) of a deposit account to which payments are 
made are not the same as the interests of the owner(s) of the security.

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

[51 FR 18265, May 16, 1986, as amended at 57 FR 38774, Aug. 27, 1992; 61 
FR 6113, Feb. 16, 1996; 64 FR 40487, July 26, 1999]