[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: 31CFR306.106]

[Page 171-172]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 306_GENERAL REGULATIONS GOVERNING U.S. SECURITIES--Table of Contents
 
            Subpart M_Requests for Suspension of Transactions
 
Sec.  306.106  Requests for suspension of transactions in bearer 
securities.

    (a) Securities not overdue. Neither the Department nor any of its 
agents will

[[Page 172]]

accept notice of any claim or of pending judicial proceedings by any 
person for the purpose of suspending transactions in bearer securities, 
or registered securities so assigned as to become in effect payable to 
bearer which are not overdue as defined in Sec.  306.25.\11\ However, if 
the securities are received and retired, the department will undertake 
to notify persons who appear to be entitled to any available information 
concerning the source from which the securities were received.
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    \11\ It has been the longstanding policy of the Department to assume 
no responsibility for the protection of bearer securities not in the 
possession of persons claiming rights therein and to give no effect to 
any notice of such claims. This policy was formalized on April 27, 1867, 
when the Secretary of the Treasury issued the following statement:
    ``In consequence of the increasing trouble, wholly without practical 
benefit, arising from notices which are constantly received at the 
Department respecting the loss of coupon bonds, which are payable to 
bearer, and of Treasury notes issued and remaining in blank at the time 
of loss, it becomes necessary to give this public notice, that the 
Government cannot protect and will not undertake to protect the owners 
of such bonds and notes against the consequences of their own fault or 
misfortune.''
    ``Hereafter all bonds, notes, and coupons, payable to bearer, and 
Treasury notes issued and remaining in blank, will be paid to the party 
presenting them in pursuance of the regulations of the Department, in 
the course of regular business; and no attention will be paid to caveats 
which may be filed for the purpose of preventing such payment.''
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    (b) Overdue securities. Reports that bearer securities, or 
registered securities so assigned as to become in effect payable to 
bearer, were lost, stolen, or possibly destroyed after they became 
overdue as defined in Sec.  306.25 will be accepted by the Bureau for 
the purpose of suspending redemption of the securities if the claimant 
establishes his interest. If the securities are presented, their 
redemption will be suspended and the presenter and the claimant will 
each be given an opportunity to establish ownership.