31 U.S.

Code § 3121 - Procedure

(a)In issuing obligations under sections 3102–3104 of this title, the Secretary of the
Treasury may prescribe—
(1)
whether an obligation is to be issued on an interest-bearing basis, a discount basis,
or an interest-bearing and discount basis;
(2)
regulations on the conditions under which the obligation will be offered for sale,
including whether it will be offered for sale on a competitive or other basis;
(3)
the offering price and interest rate;
(4)
the method of computing the interest rate;
(5)
the dates for paying principal and interest;
(6)
the form and denominations of the obligations; and
(7)
other conditions.
(b)
(1)
Under conditions prescribed by the Secretary, an obligation issued under this
chapter and redeemable on demand of the owner or holder may be used to pay
the United States Government for taxes imposed by it.
(2)
An obligation of the Government issued after March 3, 1971, under law may not be
redeemed before its maturity to pay a tax imposed by the Government in an
amount more than the fair market value of the obligation at the time of its
redemption. This paragraph does not apply to a Treasury bill issued under section
3104 of this title.
(c)
Under conditions prescribed by the Secretary, an obligation authorized by this
chapter may be issued in exchange for an obligation of an agency whose principal
and interest are unconditionally guaranteed by the Government at or before
maturity.
(d)
Under conditions prescribed by the Secretary, the Secretary may issue registered
bonds in exchange for and instead of coupon bonds that have been or may be
issued. The registered bonds shall be similar in all respects to the registered bonds
issued under a law authorizing the issue of coupon bonds offered for exchange.
(e)
A decision of the Secretary about an issue of obligations under sections 3102–
3104 of this title is final.
(f)
The Secretary may accept voluntary services in carrying out the sale of public debt
obligations.
(g)
(1)In this subsection, “registration-required obligation” means an obligation except
an obligation—
(A)
not of a type offered to the public; or
(B)
having a maturity (at issue) of not more than one year.
(2)
Every registration-required obligation of the Government shall be in registered
form. A book entry obligation is deemed to be in registered form if the right to
principal and stated interest on the obligation may be transferred only through a
book entry consistent with regulations of the Secretary.
(3)
The Secretary shall prescribe regulations necessary to carry out this subsection
when there is a nominee.
(h)
(1)
The Secretary shall prescribe by regulation standards for the safeguarding and use
of obligations issued under this chapter, and obligations otherwise issued or
guaranteed as to principal or interest by the United States. Such regulations shall
apply only to a depository institution that is not a government securities broker or
a government securities dealer and that holds such obligations as fiduciary,
custodian, or otherwise for the account of a customer and not for its own account.
Such regulations shall provide for the adequate segregation of obligations so held,
including obligations which are purchased or sold subject to resale or repurchase.
(2)
Violation of a regulation prescribed under paragraph (1) shall constitute adequate
basis for the issuance of an order under section 5239(a) or (b) of the Revised
Statutes (12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance
Act, section 5(d)(2) or 5(d)(3) [1] of the Home Owners’ Loan Act of 1933,
section 407(e) or 407(f) [1]of the National Housing Act, or section 206(e) or 206(f) of
the Federal Credit Union Act. Such an order may be issued with respect to
a depository institution by its appropriate regulatory agency and with respect to a
federally insured credit union by the National Credit Union AdministrationBoard.
(3)
Nothing in this subsection shall be construed to affect in any way the powers of
such agencies under any other provision of law.
(4)
The Secretary shall, prior to adopting regulations under this subsection, determine
with respect to each appropriate regulatory agency and the National Credit Union
Administration Board, whether its rules and standards adequately meet the
purposes of regulations to be promulgated under this subsection, and if the
Secretary so determines, shall exempt any depository institution subject to such
rules or standards from the regulations promulgated under this subsection.
(5)As used in this subsection—
(A)
“depository institution” has the meaning stated in clauses (i) through (vi) of section
19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or
branch of a foreign bank, and a commercial lending company owned or controlled
by a foreign bank (as such terms are defined in the International Banking Act of
1978).
(B)
“government securities broker” has the meaning prescribed in section 3(a)(43) of
the Securities Exchange Act of 1934.
(C)
“government securities dealer” has the meaning prescribed in section 3(a)(44) of
the Securities Exchange Act of 1934.

(D)
“appropriate regulatory agency” has the meaning prescribed in section 3(a)(34)(G)
of the Securities Exchange Act of 1934.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 944; Pub. L. 97–452, § 1(9), Jan. 12, 1983, 96
Stat. 2468; Pub. L. 99–571, title II, § 201(a), Oct. 28, 1986, 100 Stat. 3222; Pub. L. 111–
147, title V, § 502(d), Mar. 18, 2010, 124 Stat. 108.)
31 U.S. Code § 3122 - Banks and
trust companies as depositaries
(a)
The Secretary of the Treasury may designate incorporated banks and trust
companies as depositaries for any part of proceeds of an obligation issued under
this chapter. The Secretary may prescribe the conditions under which deposits may
be made under this section, including the interest rate on amounts deposited and
security requirements.
(b)
The Secretary may designate a bank or trust company that is a depositary under
subsection (a) of this section as a fiscal agent of the United States Government in
selling and delivering bonds and certificates of indebtedness issued by the
Government.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 945.)

18 U.S. Code § 8 - Obligation or other

security of the United States defined
The term “obligation or other security of the United States” includes all bonds,
certificates of indebtedness, national bank currency, Federal Reserve notes, Federal
Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates,
silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for
money, drawn by or upon authorized officers of the United States, stamps and
other representatives of value, of whatever denomination, issued under any Act
of Congress, and canceled United States stamps.
(June 25, 1948, ch. 645, 62 Stat. 685.)

A coupon payment refers to the annual interest paid on a bond.

Coupons are expressed as a percentage of the face value and are paid
from the issue date until maturity.
31 U.S. Code § 3123 - Payment of
obligations and interest on the
public debt
(a)
The faith of the United States Government is pledged to pay, in legal tender,
principal and interest on the obligations of the Government issued under this
chapter.
(b)
The Secretary of the Treasury shall pay interest due or accrued on the public debt.
As the Secretary considers expedient, the Secretary may pay in advance interest on
the public debt by a period of not more than one year, with or without a rebate of
interest on the coupons.
(c)
(1)
The Secretary may issue a bond, note, or certificate of indebtedness authorized
under this chapter whose principal and interest are payable in a foreign currency
stated in the bond, note, or certificate. The Secretary may dispose of the bonds,
notes, and certificates at a price that is at least par value without complying with
section 3102(b)–(d) of this title.
(2)
In determining the dollar amount of bonds, notes, and certificates of indebtedness
that may be issued under this chapter, the dollar equivalent of the amount of
bonds, notes, and certificates payable in a foreign currency is determined by the
par of the exchange value on the date of issue of the bonds, notes, or certificates as
published by the Secretary under section 5151 of this title.
(3)
The Secretary may designate depositaries in foreign countries in which any part of
the proceeds of bonds, notes, or certificates of indebtedness payable in the foreign
currency may be deposited.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 945.)

 The asset-backed securities (ABS) market is a financing technique that

allows companies to raise money by borrowing against assets. ABSs
 are securities that are backed by a pool of debt obligations, such as
loans or receivables, that generate income. The cash flow from these
debt obligations is used to pay interest and repay principal to the ABS
holders.

31 U.S. Code § 5151 - Conversion of

currency of foreign countries
(a)In this section—
(1)
“buying rate” means the buying rate in the market in New York, New York, for cable
transfers payable in the currency of a foreign country to be converted.
(2)
when merchandise is exported on a day that banks are generally closed in New
York, the buying rate at noon on the last prior business day is deemed to be
the buying rate at noon on the day the merchandise is exported.
(b)
The value of coins of a foreign country expressed in United States money is the
value of the pure metal of the standard coin of the foreign country. The Secretary of
the Treasury shall estimate the values of standard coins of the country quarterly
and publish the values on the first day of January, April, July, and October of each
year.
(c)
Except as provided in this section, conversion of currency of a foreign country into
United States currency for assessment and collection of duties on merchandise
imported into the United States shall be made at values published by the Secretary
under subsection (b) of this section for the quarter in which the merchandise is
exported.
(d)If the Secretary has not published a value for the quarter in which the
merchandise is exported, or if the value published by the Secretary varies by at
least 5 percent from a value measured by the buying rate at noon on the day the
merchandise is exported, the conversion of the currency of the foreign country
shall be made at a value—
(1)
equal to the buying rate at noon on the day the merchandise is exported; or
(2)
prescribed by regulation of the Secretary for the currency that is equal to the
first buying rate certified for that currency by the Federal Reserve Bank of New York
under subsection (e) of this section in the quarter in which the merchandise is
exported, but only if the buying rate at noon on the day the merchandise is
exported varies less than 5 percent from the buying rate first certified.
(e)The Federal Reserve Bank of New York shall decide the buying rate and certify
the rate to the Secretary. The Secretary shall publish the rate at times and to the
extent the Secretary considers necessary. In deciding the buying rate, the Bank may
—
(1)
consider the last ascertainable transactions and quotations (direct or through
exchange of other currencies); and
(2)if there is no buying rate, calculate the rate from—
(A)
actual transactions and quotations in demand or time bills of exchange; or
(B)
the last ascertainable transactions and quotations outside the United States in or
for exchange payable in United States currency or foreign currency.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 991.)

31 U.S. Code § 5103 - Legal tender

United States coins and currency (including Federal reserve notes and circulating notes of
Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes,
and dues. Foreign gold or silver coins are not legal tender for debts.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 980; Pub. L. 97–452, § 1(19), Jan. 12, 1983, 96 Stat.
2477.)

31 U.S.C. §§ 451-463 (1952) LEGAL TENDER

§ 451. United States gold certificates.

Gold certificates of the United States payable to bearer on demand shall be
legal tender in payment of all debts and dues, public and private. (Dec. 24,
1919, ch. 15, § 1, 41 Stat. 370.)
CROSS REFERENCES
All coins and currencies of the United States to be legal tender, see sections
462 and 821 of this title.
§452. United States notes.
United States notes shall be lawful money, and a legal tender in payment of
all debts, public and private within the United States, except for duties on
imports and interest on the public debt. (R. S. § 3588)

§ 453. Treasury notes.

Demand Treasury notes authorized by the Act of July 17, 1861, chapter 5, 12
Stat. 259, and the Act of February 12, 1862, chapter 20, 12 Stat. 338, shall be
lawful money and legal tender in like manner as United States notes.
Treasury notes issued under the Act of July 14, 1890, chapter 708, 26 Stat.
289, shall be a legal tender in payment of all debts, public and private,
except where otherwise expressly stipulated in the contract, and shall be
receivable for cus-toms, taxes, and all public dues. (R. S. § 3589; July 14,
1890, ch. 708, 82, 26 Stat. 289.)

§ 454. Interest-bearing notes.

Treasury notes issued under the authority of the Acts of March 3, 1863,
chapter 73, 12 Stat. 710, and June 30, 1864, chapter 172, 13 Stat. 218-222,
shall be legal tender to the same extent as United States notes, for their face
value, excluding interest: Provided, That Treasury notes Issued under the Act
June 30, 1864, ch. 172, 13 Stat, 218-222 shall not be a legal tender in
payment or redemption of any notes issued by any bank, banking
association, or banker, calculated and intended to circulate as money.
(R. S. § 3590.)

§455. Legal-tender quality of money not affected by

certain sections.
Nothing contained in sections 146, 313, 314, 320, 406, 408, 410, 411, 429,
and 751 of this title, and sections 51, 101, 177, 178, and 542 of Title 12 shall
be construed to affect the legal-tender quality as now provided by law of the
silver dollar, or of any other money coined or issued by the United States.
(Mar. 14, 1900, ch. 41, § 3, 31 Stat. 46.)

§ 456. Foreign coins.

No foreign gold or silver coins shall be a legal tender in payment of debts. (R.
S. § 3584.)
DERIVATION
Act Feb. 21, 1857, ch. 56, & 3, 11 Stat. 163.
CROSS REFERENCES
All coins and currencies of the United States to be legal tender for all debts,
see sections 462 and 821 of this title.
§ 457. Gold coins of United States.
The gold coins of the United States shall be a legal tender in all payments at
their nominal value when not below the standard weight and limit of
tolerance provided by law for the single piece, and, when reduced in weight
below such standard and tolerance, shall be a legal tender at valuation in
proportion to their actual weight. (R. S. § 3585.)

CROSS REFERENCES
Acquisition and use of gold in violation of law to subject the gold to forfeiture
and subject person to penalty equal to twice the value of the gold, see
section 443 of this title.
All coins and currencies of United States as legal tender, see sections 462
and 821 of this title.
Gold coinage discontinued and existing gold coins withdrawn from
circulation, see section 315b of this title.
Provisions requiring obligations to be payable in gold declared against public
policy, see section 483 of this title.

§458. Standard silver dollars; paid in silver.

Silver dollars coined under the Act of February 28, 1878, ch. 20, 20 Stat. 25,
26, together with all silver dollars coined by the United States, of like weight
and fineness prior to the date of such Act, shall be a legal tender, at their
nominal value, for all debts and dues public and private, except where
otherwise expressly stipulated in the contract. But nothing in this section
shall be construed to authorize the payment in silver of certificates of
deposit issued under the provisions of sections 428 and 429 of this title.
(Feb. 28, 1878, ch. 20, § 1, 20 Stat. 25.)

CROSS REFERENCES
All coins and currencies of the United States, including Federal Reserve
notes and circulating notes of Federal Reserve banks and banking
associations, to be legal tender for payment of public debts, public charges,
taxes, duties, and dues, see sections 462 and 463 of this title.
Obligations payable in any coin or currency which at the time is a legal
tender notwithstanding a provision for payment in a particular kind of coin or
currency, see section 463 of this title.

§459. Subsidiary silver coins.

The silver coins of the United States in existence June 9, 1879, of smaller
denominations than $1 shall be a legal tender in all sums not exceeding $10
in full payment of all dues public and private. (June 9,
1879, ch. 12, § 3, 21 Stat. 8.)
CROSS REFERENCES
All coins and currencies of the United States, including federal reserve
notes, and circulating notes of federal reserve banks and banking
associations, to be legal tender for payment of public debts, public charges,
taxes, duties, and dues, see sections 462 and 821 of this title.

§ 460. Minor coins.

The minor coins of the United States shall be a legal tender, at their nominal
value for any amount not exceeding 25 cents in any one payment. (R. S.
§ 3587.)

CROSS REFERENCES
All coins and currencies of the United States, Including Federal Reserve
notes and circulating notes of Federal Reserve banks and banking
associations, to be legal tender for payment of public debt, public charges,
taxes, duties and dues, see sections 462 and 821 of this title.

§ 461. Commemorative coins.

CODIFICATION
Section, making certain enumerated commemorative coins legal tender, is
omitted as executed in view of section 376a of this title discontinuing
coinage and issuance of commemorative coins under acts enacted prior to
Mar. 1, 1939.

§462. Coins and currencies.

All coins and currencies of the United States (including Federal Reserve
notes and circulating notes of Federal Reserve banks and national banking
associations) heretofore or hereafter coined or issued, shall be legal tender
for all debts, public and private, public charges, taxes, duties, and dues,
except that gold coins, when below the standard weight and limit of
tolerance provided by law for the single piece, shall be legal tender only at
valuation in proportion to their actual weight. (May 12, 1933, ch. 25, title III,
§ 43 (b) (1), 48 Stat. 52; June 5, 1933, ch. 48, & 2, 48 Stat. 113.)

15 U.S. Code § 1692a - Definitions

As used in this subchapter—
(1)
The term “Bureau” means the Bureau of Consumer Financial Protection.
(2)
The term “communication” means the conveying of information regarding
a debt directly or indirectly to any person through any medium.
(3)
The term “consumer” means any natural person obligated or allegedly obligated to
pay any debt.
(4)
The term “creditor” means any person who offers or extends credit creating a
debt or to whom a debt is owed, but such term does not include any person to the
extent that he receives an assignment or transfer of a debt in default solely for the
purpose of facilitating collection of such debt for another.
(5)
The term “debt” means any obligation or alleged obligation of a consumer to pay
money arising out of a transaction in which the money, property, insurance, or
services which are the subject of the transaction are primarily for personal, family,
or household purposes, whether or not such obligation has been reduced to
judgment.
(6)
The term “debt collector” means any person who uses any instrumentality of
interstate commerce or the mails in any business the principal purpose of which is
the collection of any debts, or who regularly collects or attempts to collect, directly
or indirectly, debts owed or due or asserted to be owed or due another.
Notwithstanding the exclusion provided by clause (F) of the last sentence of this
paragraph, the term includes any creditor who, in the process of collecting his own
debts, uses any name other than his own which would indicate that a third person
is collecting or attempting to collect such debts. For the purpose of section 1692f(6)
of this title, such term also includes any person who uses any instrumentality of
interstate commerce or the mails in any business the principal purpose of which is
the enforcement of security interests. The term does not include—

(A)
any officer or employee of a creditor while, in the name of the creditor,
collecting debts for such creditor;
(B)
any person while acting as a debt collector for another person, both of whom are
related by common ownership or affiliated by corporate control, if the person
acting as a debt collector does so only for persons to whom it is so related or
affiliated and if the principal business of such person is not the collection of debts;
(C)
any officer or employee of the United States or any State to the extent that
collecting or attempting to collect any debt is in the performance of his official
duties;
(D)
any person while serving or attempting to serve legal process on any other person
in connection with the judicial enforcement of any debt;
(E)
any nonprofit organization which, at the request of consumers, performs bona
fide consumer credit counseling and assists consumers in the liquidation of
their debts by receiving payments from such consumers and distributing such
amounts to creditors; and
(F)
any person collecting or attempting to collect any debt owed or due or asserted to
be owed or due another to the extent such activity (i) is incidental to a bona fide
fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which
was originated by such person; (iii) concerns a debt which was not in default at the
time it was obtained by such person; or (iv) concerns a debt obtained by such
person as a secured party in a commercial credit transaction involving the creditor.
(7)
The term “location information” means a consumer’s place of abode and his
telephone number at such place, or his place of employment.

(8)
The term “State” means any State, territory, or possession of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision
of any of the foregoing.
(Pub. L. 90–321, title VIII, § 803, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 875;
amended Pub. L. 99–361, July 9, 1986, 100 Stat. 768; Pub. L. 111–203, title X,
§ 1089(2), July 21, 2010, 124 Stat. 2092.)
31 U.S. Code § 3124 - Exemption
from taxation
(a)Stocks and obligations of the United States Government are exempt from
taxation by a State or political subdivision of a State. The exemption applies to each
form of taxation that would require the obligation, the interest on the obligation, or
both, to be considered in computing a tax, except—
(1)
a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise
tax, imposed on a corporation; and
(2)
an estate or inheritance tax.
(b)
The tax status of interest on obligations and dividends, earnings, or other income
from evidences of ownership issued by the Government or an agency and the tax
treatment of gain and loss from the disposition of those obligations and evidences
of ownership is decided under the Internal Revenue Code of 1986 (26 U.S.C. 1 et
seq.). An obligation that the Federal Housing Administration had agreed, under a
contract made before March 1, 1941, to issue at a future date, has the tax
exemption privileges provided by the authorizing law at the time of the contract.
This subsection does not apply to obligations and evidences of ownership issued by
the District of Columbia, a territory or possession of the United States, or a
department, agency, instrumentality, or political subdivision of the District,
territory, or possession.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 945; Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095.)

31 U.S. Code § 3125 - Relief for lost,

stolen, destroyed, mutilated, or
defaced obligations
(a)
In this section, “obligation” means a direct obligation of the United States
Government issued under law for valuable consideration, including bonds, notes,
certificates of indebtedness, Treasury bills, and interim certificates issued for
an obligation.
(b)
The Secretary of the Treasury may provide relief for the loss, theft, destruction,
mutilation, or defacement of an obligation identified by number and description.
(c)
(1)
An indemnity bond is required as a condition of relief if the obligation is payable to
bearer or assigned so as to become payable to bearer and is not proven clearly to
have been destroyed. The Secretary may prescribe for the indemnity bond the
form, amount, and surety or security requirements.
(2)
Relief for interest coupons claimed to have been attached to an obligation may be
provided only if the Secretary is satisfied that the coupons have not been paid and
are destroyed or will not become the basis of a valid claim against the Government.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 946.)

31 U.S. Code § 3126 - Losses and

relief from liability related to
redeeming savings bonds and notes

(a)
Under regulations prescribed by the Secretary of the Treasury, a loss resulting from
a payment related to redeeming a savings bond or savings note shall be replaced
out of the fund established by section 17303(a) of title 40. A Federal reserve bank, a
paying agent allowed to make payments in redeeming a bond or note, or an officer
or employee of the Department of the Treasury is relieved from liability to the
United States Government for the loss when the Secretary decides that the loss did
not result from the fault or negligence of the bank, paying agent, officer, or
employee. The Secretary shall relieve the bank, agent, officer, or employee from
liability when the Secretary decides that written notice of liability or potential
liability has not been given to the bank, agent, officer, or employee by the
Government within 10 years from the date of the erroneous payment. However,
the Secretary may not relieve a paying agent of an assumed unconditional liability
to the Government.
(b)
Section 17304(c) of title 40 applies to a decision of the Secretary made under this
section. A recovery or repayment of a loss for which replacement is made out of the
fund shall be credited to the fund and is available for the purposes for which the
fund was established.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 946; Pub. L. 107–217, § 3(h)(4), Aug. 21,
2002, 116 Stat. 1299.)

31 U.S. Code § 3127 - Credit to

officers, employees, and agents for
stolen Treasury notes
When an officer, employee, or agent of the United States Government authorized
to receive, redeem, or cancel Treasury notes receives or pays a note that was stolen
and put in circulation after it had been received or redeemed by an officer,
employee, or agent authorized to receive or redeem the note, the Secretary of the
Treasury may allow the officer, employee, or agent receiving or paying the stolen
note a credit for the amount of the note. The Secretary may allow the credit only if
the Secretary is satisfied that the note was received or paid in good faith and in
exercising ordinary prudence.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 947.)

31 U.S. Code § 3128 - Proof of death

to support payment
 A finding of death made by an officer or employee of the United States
Government authorized by law to make the finding is sufficient proof of death to
allow credit in the accounts of a Federal reserve bank or accountable official of
the Department of the Treasury in a case involving the transfer, exchange, reissue,
redemption, or payment of obligations of the Government, including obligations
guaranteed by the Government for which the Secretary of the Treasury acts as
transfer agent.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 947.)

31 U.S. Code § 3129 - Appropriation

to pay expenses
(a)Amounts to pay necessary expenses (including rent) for an issue of obligations
authorized under this chapter are appropriated to the Secretary of the Treasury.
However, the amount appropriated under this section may not be more than—
(1)
.2 percent of the amount of bonds and notes authorized under this chapter;

(2)
.1 percent of the amount of certificates of indebtedness authorized under section
3104 of this title; and
(3)
.1 percent of the amount of certificates of indebtedness authorized under the First
Liberty Bond Act.
(b)
An appropriation under this section is available for obligation only through the end
of the fiscal year after the fiscal year in which the issue was made. During a period
for which an appropriation for a specified amount is made for expenses for which
this section makes an appropriation for an unspecified amount, only the
appropriation for the specified amount is available for obligation.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 947.)
31 U.S. Code § 3130 - Annual public
debt report
(a)General Rule.—On or before June 1 of each calendar year after 1993, the
Secretary of the Treasury shall submit a report to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate on—
(1)
the Treasury’s public debt activities, and
(2)
the operations of the Federal Financing Bank.
(b)Required Information on Public Debt Activities.—Each report submitted
under subsection (a) shall include the following information:
(1)A table showing the following information with respect to the total public debt:
(A)
The past levels of such debt and the projected levels of such debt as of the close of
the current fiscal year and as of the close of the next 5 fiscal years under the most
recent current services baseline projection of the executive branch.
(B)
The past debt to GDP ratios and the projected debt to GDP ratios as of the close of
the current fiscal year and as of the close of the next 5 fiscal years under such most
recent current services baseline projection.
(2)A table showing the following information with respect to the net public debt:
(A)
The past levels of such debt and the projected levels of such debt as of the close of
the current fiscal year and as of the close of the next 5 fiscal years under the most
recent current services baseline projection of the executive branch.
(B)
The past debt to GDP ratios and the projected debt to GDP ratios as of the close of
the current fiscal year and as of the close of the next 5 fiscal years under such most
recent current services baseline projection.
(C)
The interest cost on such debt for prior fiscal years and the projected interest cost
on such debt for the current fiscal year and for the next 5 fiscal years under such
most recent current services baseline projection.
(D)
The interest cost to outlay ratios for prior fiscal years and the projected interest
cost to outlay ratios for the current fiscal year and for the next 5 fiscal years under
such most recent current services baseline projection.
(3)
A table showing the maturity distribution of the net public debt as of the time the
report is submitted and for prior years, and an explanation of the overall financing
strategy used in determining the distribution of maturities when issuing public debt
obligations, including a discussion of the projections and assumptions with respect
to the structure of interest rates for the current fiscal year and for the succeeding 5
fiscal years.
(4)A table showing the following information as of the time the report is submitted
and for prior years:
(A)
A description of the various categories of the holders of public debt obligations.
(B)
The portions of the total public debt held by each of such categories.
(5)
A table showing the relationship of federally assisted borrowing to total Federal
borrowing as of the time the report is submitted and for prior years.
(6)
A table showing the annual principal and interest payments which would be
required to amortize in equal annual payments the level (as of the time the report
is submitted) of the net public debt over the longest remaining term to maturity of
any obligation which is a part of such debt.
(c)Required Information on Federal Financing Bank.—
Each report submitted under subsection (a) shall include (but not be limited to)
information on the financial operations of the Federal Financing Bank, including
loan payments and prepayments, and on the levels and categories of the lending
activities of the Federal Financing Bank, for the current fiscal year and for prior
fiscal years.
(d)Recommendations.—
The Secretary of the Treasury may include in any report submitted under
subsection (a) such recommendations to improve the issuance and sale of public
debt obligations (and with respect to other matters) as he may deem advisable.
(e)Definitions.—For purposes of this section—
(1)Current fiscal year.—
The term “current fiscal year” means the fiscal year ending in the calendar year in
which the report is submitted.
(2)Total public debt.—
The term “total public debt” means the total amount of the obligations subject to
the public debt limit established in section 3101 of this title.
(3)Net public debt.—
The term “net public debt” means the portion of the total public debt which is held
by the public.
(4)Debt to gdp ratio.—
The term “debt to GDP ratio” means the percentage obtained by dividing the level
of the total public debt or net public debt, as the case may be, by the gross
domestic product.
(5)Interest cost to outlay ratio.—
The term “interest cost to outlay ratio” means, with respect to any fiscal year, the
percentage obtained by dividing the interest cost for such fiscal year on the net
public debt by the total amount of Federal outlays for such fiscal year.
(Added Pub. L. 103–202, title II, § 201(a), Dec. 17, 1993, 107 Stat. 2355.)

Bearer security is a bond or share that is considered to be owned

by the person who has it in their possession, rather than by a
named person: Bonds may be registered, or they may be issued
in the form of bearer securities.

A bearer instrument, or bearer bond, is a type of fixed-income

security in which no ownership information is recorded and the
security is issued in physical form to the purchaser.
The holder of a bearer instrument is presumed to be the owner,
and whoever is in possession of the physical bond is entitled to
the coupon payments.

PART 328—RESTRICTIVE
ENDORSEMENTS OF U.S. BEARER
SECURITIES
Authority:R.S. 3706; 40 Stat. 288, 502, 1309; 46 Stat. 20; 48 Stat. 343; 49 Stat. 20; 56 Stat. 189;
73 Stat. 622; 85 Stat. 5, 74 (31 U.S.C. 738a, 739, 752, 752a, 753, 754, 754a and 754b); and 5
U.S.C. 301.
Source:38 FR 10682, Apr. 30, 1973, unless otherwise noted.

§ 328.1 Scope of regulations.

The regulations in this part are applicable only to U.S. bearer securities[1] presented:

(a) By or through banks for payment at or after their maturity or call date, or in exchange for
any securities under any exchange offering,

(b) By banks for conversion to book-entry securities,

(c) By or through banks at any time prior to their maturity or call date for redemption at par
and application of the entire proceeds in payment of Federal estate taxes, provided said
securities by the terms of their issue are eligible for such redemption, and

(d) By Service Center Directors and District Directors, Internal Revenue Service, for
redemption, with the proceeds to be applied in payment of taxes (other than securities
presented under paragraph (c) of this section).

These regulations do not apply to bearer securities presented for any other transactions, or to
registered securities assigned in blank, or to bearer, or so assigned as to become, in effect,
payable to bearer.

§ 328.2 Definitions.
Certain words and terms, as used in these regulations, are defined as follows:

(a) Banks refer to, and include, incorporated banks (i.e., banks doing a general commercial
banking business), incorporated trust companies (i.e., trust companies doing either a general
banking business or a general trust business), and savings and loan associations, building and
loan associations, and such other financial institutions as may be designated by the Federal
Reserve banks. This definition is limited to institutions incorporated within the United States,
its territories and possessions, the Commonwealth of Puerto Rico and the Canal Zone.

(b) Bearer securities or securities are those which are payable on their face to bearer, the
ownership of which is not recorded. They include Treasury bonds,Treasury notes, Treasury
certificates of indebtedness, and Treasury bills.

Reminder- When they use the word “include” that means they are
excluding something.
§ 328.3 Authorization for restrictive endorsements.
(a) By banks. Banks are authorized, under the conditions and in the form hereinafter
provided, to place restrictive endorsements upon the face of bearer securities owned by
themselves or their customers for the purpose of presentation to Federal Reserve banks
or branches, or to the Bureau of the Fiscal Service, as follows: (<—- A is us)
(1) For payment or redemption—at any time within 1 calendar month prior to their maturity
date, or the date on which they become payable pursuant to a call for redemption, or at any
time after their maturity or call date;

(2) For exchange—during any period for their presentation pursuant to an exchange offering;

(3) For redemption at par in payment of Federal estate taxes (only eligible securities)—at any
time prior to their maturity or call redemption date; and

(4) For conversion to book-entry securities under subpart O of part 306 of this chapter—at
any time prior to their maturity or call redemption date.

(b) By Service Center Directors and District Directors, Internal Revenue Service. Service
Center Directors and District Directors, Internal Revenue Service, are authorized, under the
conditions and in the form hereinafter provided, to place restrictive endorsements upon the face
of bearer securities for the purpose of presentation to Federal Reserve banks or branches, or to
the Bureau of the Fiscal Service, for redemption and application of the proceeds in payment of
taxes (other than securities presented for redemption at par and application of the proceeds in
payment of Federal estate taxes).

(c) Instructions from Federal Reserve banks. Federal Reserve banks will inform eligible
banks and Service Center Directors and District Directors, Internal Revenue Service, in their
respective districts as to the procedure to be followed under the authority granted by these
regulations. Restrictive endorsements shall not be placed on securities until such information is
received from the Federal Reserve banks.

§ 328.4 Effect of restrictive endorsements.

Bearer securities bearing restrictive endorsements as herein provided will thereafter be
nonnegotiable and payment, redemption, or exchange will be made only as provided in such
endorsements.
§ 328.5 Forms of endorsement.
(a) When presented by banks —

(1) For payment or exchange. The endorsement placed on a bearer security presented for
payment or exchange by a bank should be in the following form:

For presentation to the Federal Reserve Bank of __________, Fiscal Agent of the United States,
for redemption or in exchange for securities of a new issue, in accordance with written
instructions submitted by __________. (Insert name of presenting bank)

(2) For redemption at par. The endorsement placed on a bearer security presented for
redemption at par in payment of Federal estate taxes should be in the following form:

For presentation to the Federal Reserve Bank of ________, Fiscal Agent of the United States, for
redemption at par in payment of Federal estate taxes, in accordance with written instructions
submitted by ________________. (Insert name of presenting bank)

(b) For conversion to book-entry securities. The endorsement placed on a bearer security
presented for conversion to a book-entry security shall be in the following form:

For presentation to the Federal Reserve Bank of _________, Fiscal Agent of the United States,
for conversion to book-entry securities by _________. (Insert name of presenting bank)

(c) When presented by Service Center Directors or District Directors, Internal Revenue
Service. The endorsement placed on a bearer security by a Service Center Director or a District
Director, Internal Revenue Service, should be in the following form:

For presentation to the Federal Reserve Bank of _______;, Fiscal Agent of the United States, for
redemption, the proceeds to be credited to the account of the Service Center Director, Internal
Revenue Service, at _____, for credit on the Federal _________ (Income, gifts, or other) taxes
due from _________. (Name and address)

§ 328.6 Requirements for endorsement.

(a) On bearer securities. The endorsement must be imprinted in the lefthand portion of the
face of each security with the first line thereof parallel to the left edge of the security and in
such manner as to be clearly legible and in such position that it will not obscure the serial
number, series designation, or other identifying data, and cover the smallest possible portion of
the text on the face of the security. The dimensions of the endorsement should be
approximately 4 inches in width and 11⁄2 inches in height, and must be imprinted by stamp or
plate of such character as will render the endorsement substantially ineradicable. The name of
the Federal Reserve bank of the district must appear on the plate or stamp used for the
imprinting of the endorsement, and presentation to the appropriate branch of the Federal
Reserve bank named will be considered as presentation to the bank. When securities are to be
 presented to the Bureau of the Fiscal Service, the words “United States Treasury” should be
used in lieu of the words “Federal Reserve Bank of _______, Fiscal Agent of the United
States.” No subsequent endorsement will be recognized. If the form of endorsement on a
security is different than that prescribed in § 328.5, the provisions of §§ 328.7 and 328.8 shall
not apply to the security.

(b) On coupons. Unmatured coupons attached to restrictively endorsed securities should be

canceled by imprinting the prescribed endorsement in such manner that a substantial portion of
the endorsement will appear on each such coupon. If any such coupons are missing, deduction
of their face amount will be made in cases of redemption, and in cases of exchange, remittance
equal to the face amount of the missing coupons must accompany the securities. All matured
coupons, including coupons which will mature on or before the date of redemption or exchange
(except as otherwise specifically provided in an announcement of an exchange offering),
should be detached from securities upon which restrictive endorsements are to be imprinted.

For presentation to the United States Treasury, Fiscal Agent of the

United States, for redemption or in exchange for securities of a new
issue, in accordance with instructions
Submitted by <——— This is what you need to
write/stamp. They try to fool you with § 328.5 Forms of endorsement.

Signature Endorsements

A signature is an endorsement. For example, when an employer issues a

payroll check, it authorizes or endorses the transfer of money from the
business account to the employee. The act of signing the check is considered
an endorsement, which serves as proof of the payer's intent to transfer funds
to the payee.