[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: 31CFR363.45]

[Page 491-492]
 
                  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.  363.45  What are the rules for judicial and administrative actions 
involving securities held in TreasuryDirect[supreg]?

    (a) Notice of adverse claim or pending judicial proceedings. We are 
not subject to and will not accept a notice of an adverse claim or 
notice of pending judicial proceedings involving a security held in 
TreasuryDirect.
    (b) Competing claims to a security. The Department of the Treasury, 
Public Debt, and the Federal Reserve Banks are not proper defendants in 
a judicial proceeding involving competing claims to a security held in 
TreasuryDirect.
    (c) Divorce decree. We will recognize a divorce decree that either 
disposes of a security held in TreasuryDirect or ratifies a property 
settlement agreement disposing of a security that is the property of 
either of the parties. If the divorce decree does not set out the terms 
of the property settlement agreement, we will require a certified copy 
of the agreement.
    (d) Final court order. We will recognize a final order entered by a 
court that affects ownership rights in a security held in TreasuryDirect 
only to the extent that the order is consistent with the provisions of 
this part. The owner of the security must be a party to the proceedings.
    (e) Levy to satisfy money judgment. We will honor a transaction 
request submitted by a person appointed by a court and having authority 
under an order of a court to dispose of a security held in 
TreasuryDirect pursuant to a money judgment against the owner of the 
security, as owner is defined in section 363.6 of this part. In the case 
of savings bonds, we will only make payment pursuant to the court order 
to the extent of the money judgment. We will not transfer the savings 
bonds.
    (f) IRS levy. We will honor an IRS notice of levy under section 6331 
of the Internal Revenue Code with respect to:
    (1) The owner, as owner is defined in section 363.6 of this part; 
and
    (2) A secondary owner, if the secondary owner has the right to 
conduct transactions in a security at the date and time the notice of 
levy is delivered to Public Debt.
    (g) Trustee in bankruptcy, a receiver of an insolvent's estate, a 
receiver in equity,

[[Page 492]]

or a similar court officer. We will honor a transaction request 
submitted by a trustee in bankruptcy, a receiver of an insolvent's 
estate, a receiver in equity, or a similar court officer, if the 
original court order is against the owner, as owner is defined in Sec.  
363.6 of this part. In the case of savings bonds, we will only make 
payment. We will not transfer the savings bonds.
    (h) Court order that attempts to defeat or impair survivorship 
rights. We will not recognize a court order that attempts to defeat or 
impair the survivorship rights of a beneficiary, secondary owner, 
coowner of a converted savings bond, or the registered owner of an 
undelivered gift security held in TreasuryDirect.

[70 FR 57435, Sept. 30, 2005]