[Code of Federal Regulations]

[Title 31, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR348.2]



[Page 317]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY

 

PART 348_REGULATIONS GOVERNING DEPOSITARY COMPENSATION SECURITIES--Table of Contents

 

Sec.  348.2  Redemption/call/reinvestment.



    (a) Redemption by financial agents. The securities may be redeemed 

prior to maturity by financial agents only under such terms and 

conditions as set forth in agreements between the financial agents and 

the Department of the Treasury, Financial Management Service, 

Washington, DC.

    (b) Call by the Treasury. The securities are subject to call before 

maturity. The Secretary will announce such call by any means the 

Secretary deems appropriate.

    (c) Reinvestment at maturity. The securities shall be automatically 

redeemed at maturity and the principal amount reinvested in new 

securities having the same description in all material respects as the 

ones redeemed, except that the Secretary shall have the authority to 

modify the rate of interest for the re-issued securities. The securities 

shall be automatically redeemed and re-invested unless the agent 

certifies in writing, to the Treasury, Financial Management Service, 

Washington, DC, that it declines automatic reinvestment within seven 

calendar days prior to maturity date.