[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR363.166]

[Page 498]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 363_REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT--Table 
of Contents
 
            Subpart E_Conversion of a Definitive Savings Bond
 
Sec.  363.166  What happens when I convert a savings bond that is not 
registered in my name as owner, either coowner, or owner with beneficiary 
(including a bond registered in the name of a minor)?

    We will presume that a savings bond registered in the name of 
someone other than the TreasuryDirect[supreg] account owner (including a 
bond registered in the name of a minor), was purchased by the account 
owner as a gift for the registered owner.
    (a) Unmatured savings bond--(1) General. An unmatured savings bond 
registered in the name of someone other than the account owner will be 
converted to a book-entry bond, released as a gift bond to the account 
owner's conversion linked account, and held until delivered to the 
TreasuryDirect account (or minor linked account, if the registered owner 
is a minor) of the registered owner.
    (2) Delivery of unmatured gift bond to registered owner. The 
TreasuryDirect account owner may deliver the converted gift bond to the 
TreasuryDirect account (or minor linked account, if the registered owner 
is a minor) of the registered owner, or, if the bond is registered in 
the coowner form of registration, to the account of either coowner. A 
bond registered in coowner or owner with beneficiary form of 
registration will retain the coowner or beneficiary form of registration 
upon delivery.
    (b) Savings bond that has reached final maturity--(1) General. A 
savings bond that has reached final maturity and is registered in the 
name of someone other than the account owner will be converted to a 
book-entry bond, released as a gift bond into the account owner's 
conversion linked account, and automatically redeemed. We will hold the 
redemption proceeds in the name of the registered owner of the 
definitive bond until the proceeds are delivered to the TreasuryDirect 
account (or minor linked account, if the registered owner is a minor) of 
the registered owner.
    (2) Delivery of bond proceeds to registered owner. If the gift bond 
has reached final maturity and has been automatically redeemed, then the 
Treasury Direct account owner may direct that the held redemption 
proceeds be delivered to the Treasury Direct account of the registered 
owner (or minor linked account, if the registered owner is a minor), 
where we will use the proceeds to purchase a certificate of indebtedness 
in the name of the registered owner. If the bond is registered in the 
coowner form of registration, the account owner may direct that the held 
redemption proceeds be delivered to the account of either coowner, where 
we will use the proceeds to purchase a certificate of indebtedness in 
the name of the coowner to whose account the bond was delivered.

[70 FR 14943, Mar. 23, 2005, as amended at 70 FR 57347, Sept. 30, 2005]