[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: 31CFR363.40]

[Page 487-488]
 
                  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 B_General Provisions Governing Securities Held in TreasuryDirect
 
Sec.  363.40  How are payments of principal and interest made?

    (a) Payment of a savings bond that has reached final maturity. We 
will purchase a certificate of indebtedness in your 
TreasuryDirect[supreg] account using the proceeds of a matured savings 
bond.
    (b) Payments of interest and principal (except a savings bond that 
has reached

[[Page 488]]

final maturity). (1) We provide two methods of receiving payments of 
principal and interest:
    (i) Payment to your account at a financial institution by the ACH 
method, or
    (ii) Payment to your TreasuryDirect account to purchase a 
certificate of indebtedness.
    (2) You may select different payment destinations for principal and 
interest for a marketable Treasury security. You may change your payment 
destination at any time, unless the security is in the closed book 
period. (See Sec.  363.210.)
    (3) If we are unable to deliver a payment, we will use the payment 
to purchase a certificate of indebtedness in your TreasuryDirect 
account.

[70 FR 57443, Sept. 30, 2005]