[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR761.4]

[Page 190-191]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 761_BOOK-ENTRY PROCEDURES--Table of Contents
 
Sec.  761.4  Transfer or pledge.

    (a) A transfer or pledge of book-entry Postal Service securities to 
a Reserve bank (in its individual capacity or as fiscal agent of the 
United States) or to the United States, or to any transferee or pledgee 
eligible to maintain an appropriate book-entry account in its name with 
a Reserve bank under this part, is effected and perfected, 
notwithstanding any provision of law to the contrary, by a Reserve bank 
making an appropriate entry in its records of the securities transferred 
or pledged. The making of such an entry in the records of a Reserve bank 
shall (1) have the effect of a delivery in bearer form of definitive 
Postal Service securities; (2) have the effect of a taking of delivery 
by the transferee or pledgee; (3) constitute the transferee or pledgee a 
holder; and (4) if a pledge, effect a perfected security interest 
therein in favor of the pledgee. A transfer or pledge of book-entry 
Postal Service securities effected under this paragraph shall have 
priority over any transfer, pledge, or other interest, theretofore or 
thereafter effected or perfected under paragraph (b) of this section or 
in any other manner.
    (b) A transfer or a pledge of transferable Postal Service 
securities, or any interest therein, which is maintained by a Reserve 
bank (in its individual capacity or as fiscal agent of the United 
States) in a book-entry account under this part, including securities in 
book-entry form under Sec.  761.3(a)(3), is effected, and a pledge is 
perfected, by

[[Page 191]]

any means that would be effective under applicable law to effect a 
transfer or to effect and perfect a pledge of the Postal Service 
securities, or any interest therein, if the securities were maintained 
by the Reserve bank in bearer definitive form. For purposes of transfer 
or pledge hereunder, book-entry Postal Service securities maintained by 
a Reserve bank shall, notwithstanding any provision of law to the 
contrary, be deemed to be maintained in bearer definitive form. A 
Reserve bank maintaining book-entry Postal Service securities either in 
its individual capacity or as fiscal agent of the United States is not a 
bailee for purposes of notification of pledges of those securities under 
this paragraph, or a third person in possession for purposes of 
acknowledgment of transfers thereof under this paragraph. Where 
transferable Postal Service securities are recorded on the books of a 
depositary (a bank, banking institution, financial firm, or similar 
party, which regularly accepts in the course of its business Postal 
Service securities as a custodial service for customers, and maintains 
accounts in the names of such customers reflecting ownership of or 
interest in such securities) for account of the pledgor or transferor 
thereof and such securities are on deposit with a Reserve bank in a 
book-entry account hereunder, such depositary shall, for purposes of 
perfecting a pledge of such securities or effecting delivery of such 
securities to a purchaser under applicable provisions of law, be the 
bailee to which notification of the pledge of the securities may be 
given or the third person in possession from which acknowledgment of the 
holding of the securities for the purchaser may be obtained. A Reserve 
bank will not accept notice or advice of a transfer or pledge effected 
or perfected under this paragraph, and any such notice or advice shall 
have no effect. A Reserve bank may continue to deal with its depositor 
in accordance with the provisions of this part, notwithstanding any 
transfer or pledge effected or perfected under this paragraph.
    (c) No filing or recording with a public recording office or officer 
shall be necessary or effective with respect to any transfer or pledge 
of book-entry Postal Service securities or any interest therein.
    (d) A Reserve Bank shall, upon receipt of appropriate instructions, 
convert book-entry Postal Service securities into definitive Postal 
Service securities and deliver them in accordance with such 
instructions; no such conversion shall effect existing interests in such 
Postal Service securities.
    (e) A transfer of book-entry Postal Service securities within a 
Reserve Bank shall be made in accordance with procedures established by 
the Bank not inconsistent with this part.
    (f) All requests for transfer or withdrawal must be made prior to 
the maturity or date of call of the securities.

[37 FR 16801, Aug. 19, 1972, as amended at 38 FR 12919, May 17, 1973]