31 CFR Part343

Fiscal Service, Treasury

Pt. 343

owner under appropriate process to satisfy a money judgment, could not be
made until one year after the issue
date of the note.
[57 FR 14282, Apr. 17, 1992, as amended at 59
FR 10540, Mar. 4, 1994]

§ 342.8

Governing regulations.

Savings notes are subject to the regulations of the Department of the
Treasury, now or hereafter prescribed,
governing
United
States
Savings
Bonds, contained in 31 CFR part 315,
also published as Department of the
Treasury Circular No. 530, current revi-

sion, except as otherwise specifically
provided herein.
§ 342.9 Fiscal agents.
(a) Federal Reserve Banks and
Branches referred to below, as fiscal
agents of the United States, are authorized to perform such services as
may be requested of them by the Secretary of the Treasury, or his or her
delegate, in connection with the issue,
redemption and payment of savings
notes.
(b)(1) The following Federal Reserve
Offices have been designated to provide
savings bond services:

Servicing office

Reserve districts
served

Geographic area served

Federal Reserve Bank, Buffalo
Branch, P.O. Box 961, Buffalo, NY
14240.
Federal Reserve Bank, Pittsburgh
Branch, P.O. Box 867, Pittsburgh,
PA 15230.
Federal Reserve Bank of Richmond,
P.O. Box 27622, Richmond, VA
23261.
Federal Reserve Bank of Minneapolis, 250 Marquette Avenue,
Minneapolis, MN 55480.
Federal Reserve Bank of Kansas
City, 925 Grand Avenue, Kansas
City, MO 64198.

New York, Boston

CT, MA, ME, NH, NJ (northern half), NY (City & State), RI, VT,
Puerto Rico and Virgin Islands.

Cleveland, Philadelphia.

DE, KY (eastern half), NJ (southern half), OH, PA, WV (northern
panhandle).

Richmond, Atlanta

AL, DC, FL, LA (southern half), MD, MS (southern half), NC, SC,
TN (eastern half), VA, WV (except northern panhandle).

Minneapolis, Chicago.

IA, IL (northern half), IN (northern half), MN, MT, ND, SD, WI.

Dallas, San Francisco, Kansas
City, St. Louis.

AK, AR, AZ, CA, CO, HI, ID, IL (southern half), IN (southern half),
KS, KY (western half), LA (northern half), MO, MS (northern half),
NE, NM, NV, OK, OR, TN (western half), TX, WA, WY, UT and
GU.

(2) Until March 1, 1996, other Federal
Reserve Offices may continue to provide some savings bond services, but
such services will be phased out over
the period prior to that date.

PART 343—REGULATIONS GOVERNING THE OFFERING OF
UNITED
STATES
MORTGAGE
GUARANTY INSURANCE COMPANY TAX AND LOSS BONDS

[59 FR 10540, Mar. 4, 1994]

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§ 342.10

Subpart A—General Information

Reservations.

(a) Issue of notes. The Secretary of
the Treasury reserved the right to reject any application for purchase of
savings notes, in whole or in part, and
to refuse to issue or permit to be issued
hereunder any such notes in any case
or any class or classes of cases if such
action was deemed to be in the public
interest. Any action in any such respect was final.
(b) Terms. The Secretary of the Treasury may at any time, or from time to
time, supplement or amend the terms
of this part, or of any amendments or
supplements thereto.

Sec.
343.0
343.1

Offering of bonds.
General provisions.

343.2
343.3
343.4
343.5

Issue date and purchase.
Redemption.
Reissue.
Taxation.

Subpart B—Tax and Loss Bonds

AUTHORITY: 5 U.S.C. 301; 26 U.S.C. 832; 31
U.S.C. 3102.
SOURCE: 62 FR 49914, Sept. 24, 1997, unless
otherwise noted.

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§ 343.0

31 CFR Ch. II (7–1–16 Edition)

Subpart A—General Information

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§ 343.0 Offering of bonds.
The Secretary of the Treasury, under
the authority of the Second Liberty
Bond Act, as amended, and pursuant to
paragraph 832(e) of the Internal Revenue Code of 1954, offers for sale only to
companies organized and engaged in
the business of writing mortgage guaranty insurance within the United
States, bonds of the United States designated as Mortgage Guaranty Insurance Company Tax and Loss Bonds,
hereinafter referred to as tax and loss
bonds. The bonds are issued in a minimum amount of $1,000 or in any larger
amount, in increments of not less than
$1.00. This offering will continue until
terminated by the Secretary of the
Treasury.
§ 343.1 General provisions.
(a) Regulations. Tax and loss bonds
are subject to the general regulations
with respect to United States securities, which are set forth in the Department of the Treasury Circular No. 300
(31 CFR part 306), to the extent applicable. Copies of the circular may be obtained from the Bureau of the Fiscal
Service, Division of Special Investments, Room 309, 200 Third St., P.O.
Box 396, Parkersburg, WV 26106–0396 or
downloaded from Fiscal Service’s home
page on the Internet at: http://
www.fiscal.treasury.gov/.
(b) Issuance. Tax and loss bonds are
issued in book-entry form on the books
of the Treasury that are maintained by
the Division of Special Investments.
The bonds are issued with 10 or 20 year
maturities as designated by the purchaser. These bonds are non-interest
bearing. Any transfer by sale, exchange, assignment, pledge or otherwise, is prohibited. The bonds may be
reissued as provided in § 343.4.
(c) Fiscal agents. Selected Federal Reserve Banks and Branches, as fiscal
agents of the United States, may be
designated to perform such services requested of them by the Secretary of
the Treasury in connection with the
purchase, redemption and other transactions involving these bonds.
(d) Debt limit contingency. The Department of the Treasury reserves the right
to change or suspend the terms and

conditions of this offering, including
provisions relating to the purchase of,
and redemption of, the bonds as well as
notices relating hereto, at any time
the Secretary determines that the
issuance of obligations sufficient to
conduct the orderly financing operations of the United States cannot be
made without exceeding the statutory
debt limit. Announcement of such
changes shall be provided by such
means as the Secretary deems appropriate.
(e) General redemption provisions. A
bond may not be called for redemption
by the Secretary of the Treasury prior
to maturity. When the bond matures,
payment will be made of the principal
amount due to the owner. A bond
scheduled for maturity on a non-business day will be redeemed on the next
business day.
(f) Reservations. The Secretary of the
Treasury may at any time, or from
time to time, supplement or amend the
terms of this circular or any related
amendments or supplements. Transaction requests, including purchases or
redemptions of bonds, are not acceptable if unsigned, inappropriately completed, or not timely submitted. Any of
these actions shall be final. The authority of the Secretary to waive regulations under 31 CFR 306.126 applies to
part 343.
(g) Forms and additional information.
The application form for subscriptions,
Fedwire instructions and other information will be furnished by the Division of Special Investments upon request by writing to the Division of Special Investments or by calling (304) 480–
7752. Application forms may also be
downloaded from the Internet at Fiscal
Service’s
home
page
at:
http://
www.fiscal.treasury.gov/.

Subpart B—Tax and Loss Bonds
§ 343.2 Issue date and purchase.
(a) Issue date. The issue date must be
a business day. The bonds will be
issued as of the date of receipt of Form
PD F 3871 ‘‘Application for Issue of
United States Mortgage Guaranty Insurance Company Tax and Loss Bonds’’
and receipt of the remittance of funds
for the full amount of the bond(s). Applications under this offering must be

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Fiscal Service, Treasury

§ 343.4

submitted to the Division of Special
Investments. An application may be
submitted by fax at (304) 480–7786 or
(304) 480–6818, by mail, or by other carrier. Applications submitted by mail
should be sent by certified or registered mail.
(b) Purchase. Tax and loss bonds may
only be purchased from the Division of
Special Investments. The purchaser
will instruct their financial institution
to submit the exact amount of funds on
the requested issue date to the Division
of Special Investments via the Fedwire
funds transfer system, with credit directed to the Treasury’s General Account, according to wire instructions
obtained from the Division of Special
Investments (see § 343.1(g)). Full payment should be submitted by 3:00 P.M.
Eastern time to ensure that settlement
of the transaction occurs.

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(Approved by the Office of Management and
Budget under control number 1535–0127)

§ 343.3 Redemption.
(a) General. Tax and loss bonds may
not be called for redemption by the
Secretary of the Treasury prior to maturity, but may be redeemed in whole
or in part at the owner’s option at any
time after three months from issue
date. The Director of the Internal Revenue Service District in which the owner’s principal place of business is located will be given notice of all redemptions. Partial redemptions of
bonds may be requested in any whole
dollar amount; however, an account
balance of less than $1,000 will be redeemed in total.
(b) Method of payment. Payment will
be made by the Automated Clearing
House (ACH) method for the owner’s
account at a financial institution designated by the owner. To the extent applicable, provisions of § 357.26, Payments, and provisions of 31 CFR part
370, shall govern ACH payments made
under this offering. The Department of
the Treasury may employ alternate
payment procedures in lieu of ACH in
any case or class of cases where operational considerations require such action.
(c) Book-entry. Bonds will be redeemed automatically upon maturity.
Payment will be made in accordance
with the ACH payment instructions on

file. Redemptions prior to maturity
will be made upon receipt of a redemption request. Notice of redemption
prior to maturity must be submitted in
writing on company letterhead to the
Division of Special Investments, or
faxed to (304) 480–7786 or to (304) 480–
6818. The notice must be received by
the Division of Special Investments not
less than three business days prior to
the requested redemption date. It must
contain the owner’s name and Tax
Identification Number, the requested
redemption date, any changed payment
routing instructions, the case number(s) to be redeemed, including original issue date(s), and the amount to be
redeemed.
(d) Registered. To obtain redemption,
a bond with the assignment for redemption properly completed and executed must be presented to the Division of Special Investments. Payment
routing instructions must also be included with the bond at redemption.
Upon partial redemption of a registered
bond, the remaining balance will be reissued in book-entry form with the
original issue and maturity date.
(Approved by the Office of Management and
Budget under control number 1535–0127)

§ 343.4 Reissue.
(a) General. Reissue of a tax and loss
bond may be made only under the conditions specified in this paragraph. A
request for reissue must be made by an
officer of the beneficial owner who is
authorized to assign the bond for redemption. The request must be submitted to the Division of Special Investments. A bond will only be reissued
in book-entry form and will bear the
same issue date and maturity as the
original bond.
(b) Correction of error. The reissue of a
bond may be made to correct an error
in the original issue upon an appropriate request, supported by satisfactory proof of the error.
(c) Change of name. An owner whose
name is changed in any legal manner
after the issue of the bond should submit the bond with a request for reissue,
substituting the new name for the
name inscribed on the bond. The signature on the request for reissue should
show the new name, the legal reason
which caused the change to be made

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§ 343.5

31 CFR Ch. II (7–1–16 Edition)

and the former name. It must be supported by satisfactory proof of the
change of name.
(d) Legal succession. A bond registered
in the name of a company which has
been succeeded by another company as
the result of a merger, consolidation,
incorporation, reincorporation, conversion, reorganization, or which has been
lawfully succeeded in any manner
whereby the business or activities of
the original organization are continued
without substantial change, will be
paid to or reissued in the name of the
successor upon an appropriate request
on its behalf, supported by satisfactory
evidence of successorship.
(e) Conversion to book-entry. Although
not required, any owner of tax and loss
bonds held in registered form after the
effective date of this regulation, may
submit those bonds to the Division of
Special Investments, for conversion to
book-entry form.

Subpart C—Demand Deposit Securities
344.7 What are Demand Deposit securities?
344.8 What other provisions apply to subscriptions for Demand Deposit securities?
344.9 How do I redeem a Demand Deposit security?

Subpart D—Special Zero Interest Securities
344.10 What are Special Zero Interest securities?
344.11 How do I redeem a Special Zero Interest security before maturity?
APPENDIX A TO PART 344—EARLY REDEMPTION
MARKET CHARGE FORMULAS AND EXAMPLES FOR SUBSCRIPTIONS FROM DECEMBER
28, 1976, THROUGH OCTOBER 27, 1996
APPENDIX B TO PART 344—FORMULA FOR DETERMINING REDEMPTION VALUE FOR SECURITIES SUBSCRIBED FOR AND EARLY-REDEEMED ON OR AFTER OCTOBER 28, 1996
AUTHORITY: 26 U.S.C. 141 note; 31 U.S.C.
3102, 3103, 3104, and 3121.
SOURCE: 65 FR 55405, Sept. 13, 2000, unless
otherwise noted.

(Approved by the Office of Management and
Budget under control number 1535–0127)

§ 343.5

Taxation.

Tax and loss bonds will be exempt
from all taxation now or hereafter imposed on the principal by any state or
any possession of the United States or
of any local taxing authority.

PART 344—U.S. TREASURY SECURITIES—STATE AND LOCAL GOVERNMENT SERIES
Subpart A—General Information
Sec.
344.0 What does this part cover?
344.1 What special terms do I need to know
to understand this part?
344.2 What general provisions apply to
SLGS securities?
LGSAFE ® SERVICE
344.3 What provisions apply to the SLGSafe
Service?

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Subpart B—Time Deposit Securities
344.4 What are Time Deposit securities?
344.5 What other provisions apply to subscriptions for Time Deposit securities?
344.6 How do I redeem a Time Deposit security before maturity?

Subpart A—General Information
SOURCE: 70 FR 37911, June 30, 2005, unless
otherwise noted.

§ 344.0 What does this part cover?
(a) What is the purpose of the SLGS securities offering? The Secretary of the
Treasury (the Secretary) offers for sale
non-marketable State and Local Government Series (SLGS) securities to
provide issuers of tax-exempt securities with investments from any eligible
source of funds (as defined in § 344.1).
(b) What types of SLGS securities are
governed by this part? This part governs
the following SLGS securities:
(1) Time Deposit securities—may be
issued as:
(i) Certificates of indebtedness;
(ii) Notes; or
(iii) Bonds.
(2) Demand Deposit securities—may be
issued as certificates of indebtedness.
(3) Special Zero Interest securities. Special Zero Interest securities, which
were discontinued on October 28, 1996,
were issued as:
(i) Certificates of indebtedness; or
(ii) Notes.
(c) In what denominations are SLGS securities issued? SLGS securities are
issued in the following denominations:

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