[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: 31CFR306.23] [Page 154-155] 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 C_Transfers, Exchanges and Reissues Sec. 306.23 Securities eligible to be held in the TREASURY DIRECT Book-entry Securities System. (a) Eligible issues. The Secretary will, from time to time, cause to be published in the Federal Register a notice describing those series of Treasury issues of bonds and notes issued before August 1, 1986, that will be eligible for conversion to the TREASURY DIRECT Book-entry Securities System. The notice shall specify the period during which requests for conversion will be accepted. (b) Establishment of TREASURY DIRECT account. To convert a bearer or registered security to book-entry form to be held in TREASURY DIRECT, the owner(s) must establish at the time of conversion, or prior thereto, an account in TREASURY DIRECT in accordance with Sec. 357.20 of part 357. Similarly, to transfer to TREASURY DIRECT a security held in book- entry form under subpart O of this part, the owner(s) must establish at the time of transfer, or prior thereto, an account in TREASURY DIRECT in accordance with Sec. 357.20 of part 357. (c) Procedure for conversion of bearer security. To convert a bearer security to TREASURY DIRECT, the owner must present it to the Department of the Treasury, accompanied by a request for conversion, which must include the information needed for establishing a TREASURY DIRECT account, unless such account has been previously established, and is identified by its number in the request. (d) Procedures for conversion of registered security. To convert a registered security to TREASURY DIRECT, the owner(s) thereof must execute an assignment in accordance with subpart F of this part. The assignment must be in substantially the following form: ``To the Secretary of the Treasury for conversion to book-entry and deposit in TREASURY DIRECT,''. The security should be accompanied by the information needed for establishing the TREASURY DIRECT account, or where an account has been previously established, the above assignment should be reworded to include the account number. (e) Procedure for transfer of book-entry security held under subpart O. To transfer a book-entry security held under subpart O of this part, the owner(s) must arrange with the bank or other entity where the security is being held to transfer the same to TREASURY DIRECT. No such transfer will be accepted unless a TREASURY DIRECT account has previously been established and the number thereof is shown in the transfer request. (f) Terms and conditions of securities held in TREASURY DIRECT. An eligible security held in TREASURY DIRECT shall be subject to subpart C and other applicable portions of part 357, and the provisions of part 306 shall not apply thereto. (g) Re-conversion from TREASURY DIRECT to registered form or to book-entry under subpart O. The owner(s) of a security converted or transferred to TREASURY DIRECT in the manner herein provided may, by executing an appropriate transaction request, transfer the book-entry security to a book-entry account held under the provisions of subpart O of this part. Thereafter, to the extent that the security was originally eligible for such conversion the book-entry security held under subpart O may be converted to one in registered form. Securities transferred from TREASURY DIRECT [[Page 155]] under this subsection shall be thereupon subject to the provisions of part 306, and part 357 shall no longer apply thereto. [53 FR 15554, May 2, 1988, as amended at 64 FR 38126, July 15, 1999]