[Federal Register Volume 62, Number 224 (Thursday, November 20, 1997)]
[Rules and Regulations]
[Pages 61912-61913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30432]
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DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 357
[Department of the Treasury Circular, Public Debt Series, No. 2-86]
Regulations Governing Book-Entry Treasury Bonds, Notes, and
Bills; Determination Regarding State Statutes
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Determination of substantially identical state statutes.
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[[Page 61913]]
SUMMARY: The Department of the Treasury is announcing that it has
reviewed the statutes of 13 states which have recently enacted laws
adopting Revised Article 8 of the Uniform Commercial Code--Investment
Securities (``Revised Article 8'') and determined that they are
substantially identical to the uniform version of Revised Article 8 for
purposes of interpreting the rules in 31 CFR Part 357, Subpart B (the
``TRADES'' regulations). Therefore, that portion of the TRADES rule
requiring application of Revised Article 8 if a state has not adopted
Revised Article 8 will no longer be applicable for those 13 states.
EFFECTIVE DATE: November 20, 1997.
FOR FURTHER INFORMATION CONTACT:
Sandy Dyson, Attorney-Advisory, (202) 219-3320, or Cynthia E. Reese,
Deputy Chief Counsel, (202) 219-3320.
SUPPLEMENTARY INFORMATION: On August 23, 1996, the Department published
a final rule to govern securities held in the commercial book-entry
system, now referred to as the Treasury/Reserve Automated Debt Entry
System (``TRADES'') (61 FR 43626).
In the commentary to the final regulations, Treasury stated that
for the 28 states that had by then adopted Revised Article 8, the
versions enacted were ``substantially identical'' to the uniform
version for purposes of the rule. Therefore, for those states, that
portion of the TRADES rule requiring application of Revised Article 8
was not invoked. Treasury also indicated in the commentary that as
additional states adopt Revised Article 8, notice would be provided in
the Federal Register as to whether the enactments are substantially
identical to the uniform version so that the federal application of
Revised Article 8 would no longer be in effect for those states.
Treasury adopted this approach in an attempt to provide certainty in
application of the rule in response to public comments. Treasury
published such notices with respect to California (62 FR 26, January 2,
1997) and the District of Columbia (62 FR 34010, June 18, 1997). 31 CFR
Part 357, Appendix B, the TRADES Commentary also was amended by final
rule (62 FR 43283, August 13, 1997) to update the list of states that
have enacted Revised Article 8 statutes which Treasury determined to be
substantially identical to the uniform version.
This notice addresses the recent adoption of Article 8 by the
following 13 states: Delaware, Hawaii, Maine, Missouri, Montana,
Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio,
Tennessee and Puerto Rico. A ``state'' is defined in the regulations as
including Puerto Rico.
Treasury has reviewed the 13 state enactments and has concluded all
of them are substantially identical to the uniform version of Revised
Article 8. Accordingly, if either Sec. 357.10(b) or Sec. 357.11(b)
directs a person to Delaware, Hawaii, Maine, Missouri, Montana, Nevada,
New Jersey, New York, North Carolina, North Dakota, Ohio, Tennessee and
Puerto Rico, the provisions of Secs. 357.10(c) and 357.11(d) of the
TRADES rule are not applicable. This means that a total of 43 states
(including D.C. and Puerto Rico) have enacted Revised Article 8 that
have been either: (1) the subject of notices by Treasury stating that
the laws are ``substantially identical'' to the uniform version for
purposes of the TRADES regulations; or (2) included in the list of
states appearing in a footnote to the Commentary section in Appendix B
of the TRADES regulations.
In addition, Treasury has reviewed the recent enactment of Revised
Article 8 by Connecticut. Because we understand that Connecticut will
likely be acting within the next year to amend the statute that was
passed, we make no determination at this time with respect whether the
statute passed is ``substantially identical'' to the uniform version
for purposes of the rule.
Dated: November 12, 1997.
Richard L. Gregg,
Commissioner of the Public Debt.
[FR Doc. 97-30432 Filed 11-19-97; 8:45 am]
BILLING CODE 4810-39-M