[Federal Register Volume 61, Number 200 (Tuesday, October 15, 1996)]
[Rules and Regulations]
[Pages 53822-53823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26375]
[[Page 53821]]
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Part III
Department of the Treasury
_______________________________________________________________________
Fiscal Service
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31 CFR Part 353
Regulations Governing United States Savings Bonds, Series EE and HH;
Final Rule
Federal Register / Vol. 61, No. 200 / Tuesday, October 15, 1996 /
Rules and Regulations
[[Page 53822]]
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 353
[Department of the Treasury Circular, Public Debt Series No. 3-80]
Regulations Governing United States Savings Bonds, Series EE and
HH
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Final rule.
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SUMMARY: This rule amends regulations governing Series EE and HH
Savings Bonds to provide explicitly for the recognition of Federal
asset forfeiture laws and providing for payment of United States
Savings Bonds pursuant to Federal judicial or administrative
forfeiture.
EFFECTIVE DATE: October 15, 1996.
FOR FURTHER INFORMATION CONTACT: Ed Gronseth, Deputy Chief Counsel, or
Bob Riffle, Attorney-Adviser, Office of the Chief Counsel, Bureau of
the Public Debt, at (304) 480-5192.
SUPPLEMENTARY INFORMATION:
I. Background
The Secretary of the Treasury is authorized under 31 U.S.C. 3105 to
prescribe the terms and conditions of savings bonds including,
specifically, restrictions on transfer. The Department of the Treasury
has promulgated regulations in 31 CFR, Subtitle B, that set the terms
and conditions of savings bonds.
Savings bonds are Federal contracts, the terms of which are
contained in laws, offering circulars, and other applicable
regulations.
In recent years a number of Federal laws have been enacted
providing for forfeiture of property in certain specified situations.
This rule amends the regulations governing United States Savings Bonds,
Series EE and HH, by providing explicitly for the recognition of
Federal judicial forfeitures and Federal administrative forfeitures
made pursuant to Federal forfeiture laws.
This rule does not provide for recognition of judicial or
administrative forfeiture orders issued by State or local authorities.
Series E savings bonds were first issued in 1941; their sale was
terminated in 1979. Series H bonds were first issued in 1952; their
sale was terminated in 1979. Series EE and HH bonds were first issued
beginning in 1980. Series E savings bonds were offered for sale under
31 CFR Part 316; Series EE bonds are offered under 31 CFR Part 351.
Series H savings bonds were offered for sale under 31 CFR Part 332;
Series HH bonds are offered under 31 CFR Part 352. All bonds are
governed by additional regulations, at 31 CFR Part 315 or 353,
expressly made part of the terms of the offerings.
Since Series E and H savings bonds and savings notes are no longer
being issued they are not being addressed by this rule.
II. Summary of Amendment
Section 353.15 of the regulations provides that ``savings bonds are
not transferable and are payable only to the owners named on the bonds,
except as specifically provided in these regulations and then only in
the manner and to the extent so provided.'' Section 353.5(a) of the
regulations states that the registration of the bonds is conclusive of
ownership. Almost all savings bonds are issued in either coownership or
beneficiary form. Section 353.7 provides that a bond in coownership
form is registered ``A or B'' and that a bond in beneficiary form is
registered ``A payable on death to B'' or ``A POD B.''
Section 353.35 provides, in part, that ``[p]ayment of a savings
bond will be made to the person or persons entitled under the
provisions of these regulations * * *.'' Subpart E of Part 353 sets
forth rules for recognition of judicial determinations involving
savings bonds.
This rule makes payment of Series EE and HH savings bonds pursuant
to a Federal judicial forfeiture or Federal administrative forfeiture
an explicit part of the terms and conditions of the contract with
savings bond investors. This rule amends Subpart E of the regulations
by providing explicitly for the recognition of changes in ownership
through Federal forfeiture proceedings.
III. Procedural Requirements
This final rule does not meet the criteria for a ``significant
regulatory action'', pursuant to Executive Order 12866. The regulatory
review procedures, therefore, do not apply. Because this rule relates
to matters of public contract, as well as the borrowing power and
fiscal authority of the United States, the notice, public comment, and
delayed effective date provisions of the Administrative Procedure Act
are inapplicable pursuant to 5 U.S.C. 553(a)(2). As no notice of
proposed rulemaking is required, the provisions of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., do not apply. There are no
collections of information required by this final rule, and, therefore,
the Paperwork Reduction Act does not apply.
List of Subjects in 31 CFR Part 353
Bonds, Government securities.
Dated: October 8, 1996.
Gerald Murphy,
Fiscal Assistant Secretary.
For the reasons set forth in the preamble, Title 31, Subtitle B,
Chapter II, Part 353 of the Code of Federal Regulations is amended as
follows:
PART 353--REGULATIONS GOVERNING UNITED STATES SAVINGS BONDS, SERIES
EE AND HH
1. The authority citation for Part 353 continues to read as
follows:
Authority: 31 U.S.C. 3105 and 5 U.S.C. 301.
2. In Subpart E a new section, Sec. 353.24, is added to read as
follows:
Sec. 353.24 Payment pursuant to judicial or administrative forfeiture.
(a) Definitions. As used in this part:
(1) Contact point means the individual designated to receive
referrals from the Bureau of the Public Debt, as provided for in this
section, by the Federal investigative agency, United States Attorney's
Office, or forfeiting agency specified in Public Debt Form 1522.
(2) Forfeiting agency means the federal law enforcement agency
responsible for the forfeiture.
(3) Forfeiture.
(i) Administrative forfeiture means the process by which property
may be forfeited by a Federal agency rather than through judicial
proceedings.
(ii) Judicial forfeiture means either a civil or a criminal
proceeding in a United States District Court that may result in a final
judgment and order of forfeiture.
(4) Public Debt Form 1522 means the written notification of the
forfeiture provided by the forfeiting agency to the Bureau of the
Public Debt on a Public Debt Form 1522 SPECIAL FORM OF REQUEST FOR
PAYMENT OF UNITED STATES SAVINGS AND RETIREMENT SECURITIES WHERE USE OF
A DETACHED REQUEST IS AUTHORIZED. Public Debt Form 1522 must specify:
the contact point; the issue date of each bond; the serial number for
each bond; the date of forfeiture; the forfeiture fund to which payment
is to be made; and be signed by an individual authorized by the
forfeiting agency. The forfeited bonds and the completed Public Debt
Form 1522 are to be mailed to the Department of the Treasury, Bureau of
the Public Debt, Parkersburg, WV 26106-1328.
(b) Forfeiture of bond. (1) Upon receipt and review of the Public
Debt
[[Page 53823]]
Form 1522, as described in (a)(4) above, the Bureau of the Public Debt
will make payment to the forfeiture fund specified on the form.
(2) The Bureau of the Public Debt will record the forfeiture, the
forfeiture fund into which the proceeds were paid, the contact point,
and any related information.
(3) The Bureau of the Public Debt will rely exclusively upon the
information provided by the Federal agency in the Public Debt Form 1522
and will not make any independent evaluation of the validity of the
forfeiture order, the request for payment, or the authority of the
individual signing the request for payment.
(4) The amount paid is limited to the redemption value of the
savings bonds as of the date of forfeiture specified in the Public Debt
Form 1522.
(c) Inquiry from previous owner. (1) Upon payment made pursuant to
(b), all inquiries from the previous owner, including requests for
payment, reissue, or applications for relief, related to forfeited
savings bonds will be referred by the Bureau of the Public Debt to the
contact point named in the Public Debt Form 1522.
(2) The Bureau of the Public Debt will notify the submitter of the
inquiry of the referral to the contact point.
(3) The Bureau of the Public Debt will not investigate the inquiry
and will defer to the forfeiting agency's determination of the
appropriate course of action, including settlement where appropriate.
Any settlement will be paid from the forfeiture fund into which the
proceeds were deposited.
[FR Doc. 96-26375 Filed 10-11-96; 8:45 am]
BILLING CODE 4810-39-P