[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: 31CFR357.10]

[Page 403-404]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 357_REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES AND BILLS 
HELD IN LEGACY TREASURY DIRECT--Table of Contents
 
     Subpart B_Treasury/Reserve Automated Debt Entry System (TRADES)
 
Sec.  357.10  Laws governing a Treasury book-entry security, TRADES, and 
security interests or entitlements.

    Source: 67 FR 7080, Feb. 15, 2002, unless otherwise noted.


    (a) What law governs the rights and obligations of the United States 
and the

[[Page 404]]

Federal Reserve Banks; and the rights of any Person against the United 
States and the Federal Reserve Banks? Except as we provide in paragraph 
(b) of this section, the following are governed solely by Treasury 
regulations, including the regulations of this part, the applicable 
offering circular (which is 31 CFR part 356, in the case of securities 
issued on and after March 1, 1993), the announcement of the offering, 
and Federal Reserve Bank Operating Circulars:
    (1) The rights and obligations of the United States and the Federal 
Reserve Banks with respect to a Book-entry Security or Security 
Entitlement and the operation of TRADES, and
    (2) The rights of any Person, including a Participant, against the 
United States and the Federal Reserve Banks with respect to a Book-entry 
Security or Security Entitlement and the operation of TRADES.
    (b) What law governs security interests in Security Entitlements 
that are not recorded on a Federal Reserve Bank's books? See the 
following table:

------------------------------------------------------------------------
 If a security interest in a                         Then it is governed
  security entitlement is--        And it is--              by--
------------------------------------------------------------------------
(1) in favor of a Federal     not recorded on the   the law (not
 Reserve Bank from a           books of a Federal    including the
 Participant.                  Reserve Bank          conflict-of-law
                               pursuant to Sec.      rules) of the
                               357.12(e)(2).         jurisdiction where
                                                     the head office of
                                                     the Federal Reserve
                                                     Bank maintaining
                                                     the Participant's
                                                     Securities Account
                                                     is located.
(2) in favor of a Federal     not recorded on the   the law determined
 Reserve Bank from a Person    books of a Federal    in the manner
 that is not a Participant.    Reserve Bank          specified in Sec.
                               pursuant to Sec.      357.11.
                               357.12(e)(2).
------------------------------------------------------------------------

    (c) What law governs if the jurisdiction in paragraph (b)(1) of this 
section did not adopt Revised Article 8, or Revised Article 8 as amended 
by Revised Article 9 (both incorporated by reference, see Sec. 357.2)? 
The law specified in paragraph (b)(1) of this section shall be the law 
of that State as though that State adopted Revised Article 8.