[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: 31CFR356.4]

[Page 374-375]
 
                  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 A_General Information
 
Sec. 356.4  What are the book-entry systems in which auctioned Treasury 

securities may be issued?

    There are three book-entry securities systems--the commercial book-
entry system, TreasuryDirect[supreg], and legacy Treasury 
Direct[supreg]--into which we issue marketable Treasury securities. We 
maintain and transfer securities in these three book-entry systems at 
their par amount. Par amounts of Treasury inflation-protected securities 
do not include adjustments for inflation. Securities may be transferred 
from one system to the other, unless the securities are not eligible to 
be held in the receiving system. See Department of the Treasury 
Circular, Public Debt Series No. 2-86, as amended (part 357 of this 
chapter) and part 363 of this chapter.
    (a) The commercial book-entry system. When depository institutions 
or dealers submit bids for Treasury securities in an auction, securities 
awarded as a result of those bids are generally held in the commercial 
book-entry system. Specifically, we maintain book-entry accounts in the 
National Book-Entry System [reg] (``NBES'') for Federal 
Reserve Banks, depository institutions, and other authorized entities, 
such as government and international agencies

[[Page 375]]

and foreign central banks. In their accounts, depository institutions 
maintain securities held for their own account and for the accounts of 
others. The accounts held for others include those of other depository 
institutions and dealers, which may, in turn, maintain accounts for 
others.
    (b) TreasuryDirect. In this system, account holders maintain 
accounts in a book-entry, online system directly on the records of the 
Bureau of the Public Debt, Department of the Treasury. Bids for 
securities to be held in TreasuryDirect are submitted through the 
Internet.
    (c) Legacy Treasury Direct. In this system, we maintain the book-
entry securities of account holders directly on the records of the 
Bureau of the Public Debt, Department of the Treasury. Bids for 
securities to be held in Legacy Treasury Direct are submitted directly 
to us. From time to time, Treasury may announce that certain securities 
to be offered will not be eligible for purchase or holding in Legacy 
Treasury Direct.

[69 FR 45202, July 28, 2004, as amended at 70 FR 57439, Sept. 30, 2005; 
72 FR 2193, Jan. 18, 2007; 71 FR 2928, Jan. 23, 2007; 73 FR 14938, Mar. 
20, 2008]