[Federal Register: December 24, 2002 (Volume 67, Number 247)]
[Rules and Regulations]
[Page 78384-78385]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24de02-17]
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DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 352
Offering of United States Savings Bonds, Series HH
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Final rule.
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SUMMARY: This Final Rule amends the offering of Series HH United States
Savings Bonds to permit the investment yield to be changed by
announcement by the Secretary of the Treasury or the Secretary's
designee. The change affects bonds that are issued or enter into an
extended maturity period on or after January 1, 2003. Permitting the
investment yield to be set by announcement provides flexibility in
reflecting changes in prevailing interest rates.
EFFECTIVE DATE: January 1, 2003.
ADDRESSES: You can download this final rule at the following Internet
address: http://www.publicdebt.treas.gov.
FOR FURTHER INFORMATION CONTACT:
Elisha Whipkey, Director, Division of Program Administration, Office of
Securities Operations, Bureau of the Public Debt, at (304) 480-6319 or
elisha.whipkey@bpd.treas.gov.
Susan Klimas, Attorney-Adviser, Office of the Chief Counsel, Bureau of
the Public Debt, at (304) 480-8692 or susan.klimas@bpd.treas.gov.
Dean Adams, Assistant Chief Counsel, Office of the Chief Counsel,
Bureau of the Public Debt, at (304) 480-8692 or
dean.adams@bpd.treas.gov.
Edward Gronseth, Deputy Chief Counsel, Bureau of the Public Debt, at
(304) 480-8692 or edward.gronseth@bpd.treas.gov.
SUPPLEMENTARY INFORMATION: We are amending the offering regulations for
United States Savings Bonds of Series HH. Effective January 1, 2003,
the investment yield for Series HH savings bonds that are issued or
enter into an extended maturity period on or after January 1, 2003,
will be set by announcement by the Secretary or the Secretary's
designee. We are also removing the table at the end of the offering
regulations, since the information contained in the table will change
with each announcement of change in the investment yield.
Currently, the investment yield must be changed by an amendment to
the regulations.
The purpose of permitting the investment yield to be set by
announcement is to provide greater flexibility for the Secretary in
responding to market conditions and prevailing interest rates.
Procedural Requirements
This final rule does not meet the criteria for a ``significant
regulatory action'' as defined in Executive Order 12866. Therefore, the
regulatory review procedures contained therein do not apply.
This final rule relates to matters of public contract and
procedures for United States securities. The notice and public
procedures requirements and delayed effective date requirements 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 Regulatory
Flexibility Act (5 U.S.C. 601, et seq.) does not apply.
We ask for no new collections of information in this final rule.
Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply.
List of Subjects in 31 CFR Part 352
Bonds, Government securities.
Accordingly, for the reasons set out in the preamble, 31 CFR
Chapter II, Subchapter B, is amended as follows:
PART 352--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES HH
1. The authority citation for part 352 continues to read as
follows:
Authority: 31 U.S.C. 3105, 5 U.S.C. 301.
2. Amend Sec. 352.2 as follows:
a. Redesignate current paragraphs (e)(1)(i) through (e)(1)(vii) as
paragraphs (e)(1)(ii) through (e)(1)(viii);
b. Add new paragraph (e)(1)(i);
c. Revise redesignated paragraph (e)(1)(ii); and
d. Revise paragraph (e)(2). The addition and revisions read as
follows:
Sec. 352.2 Description of bonds.
* * * * *
(e) Investment yield (interest).--(1) During original maturity. The
investment yields for Series HH bonds during their original maturity
periods are as specified in paragraphs (e)(1)(i) and (ii) of this
section.
(i) Bonds with issue dates of January 1, 2003, and thereafter. The
investment yield applicable to Series HH bonds issued on or after
January 1, 2003, will be furnished in rate announcements by the
Secretary or the Secretary's designee. The rate announced will apply to
bonds issued during the period covered by the announcement.
(ii) Bonds with issue dates of March 1, 1993, through December 1,
2002.
[[Page 78385]]
Series HH bonds with issue dates of March 1, 1993, through December 1,
2002, yield 4 percent per annum, paid semiannually, to original
maturity.
* * * * *
(2) During extended maturity. The investment yields for Series HH
bonds during their extended maturity periods are as specified in
paragraphs (e)(2)(i), (ii), and (iii) of this section.
(i) Bonds that enter an extended maturity period on or after
January 1, 2003. The investment yield applicable to Series HH bonds
that enter an extended maturity period on or after January 1, 2003,
will be furnished in rate announcements by the Secretary or the
Secretary's designee. The rate announced will apply to bonds that enter
an extended maturity period during the period covered by the
announcement.
(ii) Bonds that entered an extended maturity period from March 1,
1993, through December 1, 2002. The investment yield applicable to
Series HH bonds that entered an extended maturity period from March 1,
1993, through December 1, 2002, is 4 percent per annum, paid
semiannually.
(iii) Bonds that entered an extended maturity period from January
1, 1990, through February 1, 1993. The investment yield applicable to
Series HH bonds that entered into an extended maturity period from
January 1, 1990, through February 1, 1993, is 6 percent per annum, paid
semiannually.
* * * * *
3. Remove Table 1 at the end of part 352.
Dated: November 19, 2002.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 02-32378 Filed 12-19-02; 1:33 pm]
BILLING CODE 4810-39-P