[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.34]

[Page 387]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356_SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND 
 
                   Subpart D_Miscellaneous Provisions
 
Sec. 356.34  What could happen if someone does not fully comply with the 

auction rules or fails to pay for securities?

    (a) General. If a person or entity fails to comply with any of the 
auction rules in this part, we will consider the circumstances and take 
what we deem to be appropriate action. This could include barring the 
person or entity from participating in future auctions under this part. 
We also may refer the matter to an appropriate regulatory agency.
    (b) Liquidated damages. If you fail to pay for awarded securities in 
a timely manner, we may require you to pay liquidated damages of up to 
one percent of the par amount of securities we awarded to you. Our use 
of this liquidated damages remedy does not preclude us from using any 
other appropriate remedy.