Bankruptcy, Settlement or Other Litigation
Note: This page does not apply to savings bonds, TreasuryDirect accounts or Legacy Treasury Direct accounts. For information or questions related to these subjects, please select “Contact Us” at the top of this page.
Securities received from a bankruptcy, settlement or other litigation are forwarded to Merrill Lynch, FBO: U.S. Department of the Treasury by the Secretary of the Treasury or a Federal Executive Agency through registered mail or special messenger or wired to the Department of the Treasury’s broker-dealer account.
In order to liquidate the securities for your agency, the documents listed below are needed:
Letter of Intent
A Letter of Intent is needed which details exactly what is to be liquidated, how many shares, where to send the proceeds, and the like. It must be printed on agency letterhead and should include the following:
- Agency's instructions for sale of security
- Reference to the security
- How the security was obtained (e.g., bankruptcy or settlement)
- Agency Location Code (ALC) for deposit of proceeds
- Taxpayer Identification Number (TIN)
- Physical address of agency
- Agency contact name, telephone number, fax number and e-mail address
- Signature of a supervisor
- Contact person, other than the supervisor
If multiple securities are being sent at the same time, one Letter of Intent is sufficient as long as all securities are referenced in the letter.
To use a Letter of Intent template, select the appropriate file for bankruptcy below:
- Physical Security Received
- Electronic Security Received
Note: To read or print a PDF document, you need the Adobe Acrobat Reader (v5.0 or higher) software installed on your computer. You can download the Adobe Acrobat Reader from the Adobe Website.
If you need help downloading...
Proof of Ownership
In order for the Bureau of the Public Debt to be able to liquidate the securities for your agency, we must have proof of ownership. A Federal Executive Agency must show evidence of ownership of the security.
The evidence may be documented by one or more of the following instruments:
- Bankruptcy Settlement Agreement
- Decree of Final Distribution
- Statement of Distribution
- Affidavit of Domicile
- Closing Statement
Direct Registration (DRS) Advice
In order to make it easier to pull your securities into Treasury’s broker-dealer account, have the following information on the Direct Registration (DRS) Advice form.
- Your holder account number
- Your agency name, address and contact person
- Number of shares
- Type of security (common stock, warrant, etc.)
For any special circumstances not addressed here, please use the “Contact Us” link at the top of this page.
