[Title 31 CFR 2.27]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 31 - MONEY AND FINANCE: TREASURY]
[Part 2 - NATIONAL SECURITY INFORMATION]
[Subpart D - Safeguarding]
[Sec. 2.27 - Storage [4.1(b)].]
[From the U.S. Government Printing Office]


31MONEY AND FINANCE: TREASURY12002-07-012002-07-01false2.27Sec. 2.27MONEY AND FINANCE: TREASURYNATIONAL SECURITY INFORMATIONSafeguarding
Sec. 2.27  Storage [4.1(b)].

    Classified information shall be stored only in facilities or under 
conditions designed to prevent unauthorized persons from gaining access 
to it.
    (a) Minimum Requirements for Physical Barriers--(1) Top Secret. Top 
Secret information shall be stored in a GSA-approved security container 
with an approved, built-in, three-position, dial-type, changeable, 
combination lock; in a vault protected by an alarm system and response 
force; or in other types of storage facilities that meet the standards 
for Top Secret information established under the provisions of 
Sec. 2.25. Top Secret information stored outside the United States must 
be in a facility afforded diplomatic status. One or more of the 
following supplementary controls is required:
    (i) The area that houses the security container or vault shall be 
subject to the continuous protection of U.S. guard or duty personnel;
    (ii) U.S. Guard or duty personnel shall inspect the security 
container or vault at least once every two hours; or

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    (iii) The security container or vault shall be controlled by an 
alarm system to which a force will respond in person within 15 minutes.

Within the United States, the designated security officer in each 
Treasury bureau and the Department Offices shall prescribe those 
supplementary controls deemed necessary to restrict unauthorized access 
to areas in which such information is stored. Any vault used for the 
storage of sensitive compartmented information shall be configured to 
the specifications of the Director of Central Intelligence. Prior to an 
office or bureau operating such a vault, formal written certification 
for its use must first be obtained from the Special Assistant to the 
Secretary (National Security) as the senior Treasury official of the 
Intelligence Community.
    (2) Secret and Confidential. Secret and Confidential information 
shall be stored in a manner and under the conditions prescribed for Top 
Secret information, or in a container, vault, or alarmed area that meets 
the standards for Secret or Confidential information established under 
the provisions of Sec. 2.25. Secret and Confidential information may 
also be stored in a safe-type filing cabinet having a built-in, three-
position, dial-type, changeable, combination lock, and may continue to 
be stored in a steel filing cabinet equipped with a steel lock-bar 
secured by a GSA-approved three-position, dial-type, changeable, 
combination padlock. The modification, however, of steel filing cabinets 
to barlock-type as storage equipment for classified information and 
material is prohibited and efforts are to be made to selectively phase 
out the use of such barlock cabinets for storage of Secret information. 
Exceptions may be authorized only by the Departmental Director of 
Security upon written request from the designated bureau security 
officer. The designated security officer in each Treasury bureau and the 
Departmental Offices shall prescribe those supplementary controls deemed 
necessary to restrict unauthorized access to areas in which such 
information is stored. Access to bulky Secret and Confidential material 
in weapons storage areas, strong rooms, evidence vaults, closed areas or 
similar facilities shall be controlled in accordance with requirements 
approved by the Department. At a minimum, such requirements shall 
prescribe the use of GSA-approved, key-operated, high-security padlocks. 
For Secret and Confidential information stored outside the United 
States, it shall be stored in the manner authorized for Top Secret, in a 
GSA-approved safe file, or in a barlick cabinet equipped with a 
security-approved combination padlock if the cabinet is located in a 
security-approved vault and/or in a restricted area to which access is 
controlled by United States citizen personnel on a 24-hour basis.
    (b) Combinations--(1) Equipment in Service. Combinations to dial-
type, changeable, combination locks shall be changed only by persons 
having an appropriate security clearance, and shall be changed,
    (i) Whenever such equipment is placed in use;
    (ii) Whenever a person knowing the combination no longer requires 
access to it;
    (iii) Whenever a combination has been subjected to possible 
compromise;
    (iv) Whenever the equipment is taken out of service: or
    (v) At least once each year.

Knowledge of combinations shall be limited to the minimum number of 
persons necessary for operating purposes. Records of combinations shall 
be classified no lower than the highest level of classified information 
that is protected by the combination lock. When securing a combination 
lock, the dial must be turned at least four (4) complete times in the 
same direction after closing. Defects in or malfunctioning of storage 
equipment protecting classified national security or officially limited 
information must be reported immediately to the designated office or 
bureau security official for appropriate action.
    (2) Equipment Out of Service. When security equipment, used for the 
storage of classified national security or officially limited 
information, is taken out of service, it shall be physically inspected 
to ensure that no classified information or officialy limited 
information remains therein. Built-in, three-position, dial-type, 
changeable, combination locks shall be reset to the

[[Page 96]]

standard combination 50-25-50 and combination padlocks shall be reset to 
the standard combination 10-20-30. The designated security officer in 
each Treasury bureau and the Departmental Offices shall prescribe such 
supplementary controls deemed necessary to fulfill their individual 
needs to be consistent with Sec. 2.27.
    (3) Security Container Check Sheet. Each piece of security equipment 
used for the storage of classified information will have attached 
conspicuously to the outside a Standard Form 702 (Security Container 
Check Sheet) on which an authorized person will record the date and 
actual time each business day that they initially unlock and finally 
lock the security equipment, followed by their initials. Users of this 
form are to avoid citations which reflect the opening, locking and 
checking of the security equipment at standardized (non-actual) times, 
e.g., opened at 8:00 a.m. and closed/checked at 4:00 p.m. Bureaus and 
the Departmental Offices may continue to use Optional Form 62 (Safe or 
Cabinet Security Record) in lieu of the SF 702 until September 30, 1990, 
or such time as their supplies of Optional Form 62 are exhausted. The 
reprinting or photostatic reproduction and use of Optional Form 62 is 
not authorized. On each normal workday, regardless of whether the 
security equipment was opened on that particular day, the security 
equipment shall be checked by authorized personnel to assure that no 
surreptitious attempt has been made to penetrate the security equipment. 
Such examinations normally consist of a quick or casual visual check to 
note either any obvious marks or gashes, or defects or malfunction of 
the security equipment which are different from their prior observations 
or experience in operating the equipment concerned. Any such 
discrepancies in the appearance of or functioning of the security 
equipment, based upon this visual check, should be reported to 
appropriate security officials. The ``Checked By'' column of the SF 702 
or Optional Form 62 shall be annotated to reflect the date and time of 
this action followed by that person's initials. Security equipment used 
for the storage of classified information that has been opened on a 
particular day shall not be left unattended at the end of that day until 
it has been locked by an authorized person and checked by a second 
person. In the event a second person is not available within the office, 
the individual who locked the equipment shall also annotate the 
``Checked By'' column of the SF 702 or Optional Form 62. Reversible 
``OPEN-CLOSED'' or ``LOCKED-UNLOCKED'' signs, available through normal 
supply channels, shall also be used on such security equipment. The 
respective side of the sign shall be displayed to indicate when the 
container is open or closed. Except for the SF 702 or Optional Form 62, 
the top surface area of security equipment is not to be used for storage 
and must be kept free of extraneous material. SF 702 and/or Optional 
Form 62 shall be utilized on all security equipment used for storing 
information bearing the control legend ``Limited Official Use''. The 
designated security officer in each Treasury bureau and the Department 
Offices may, as warranted, prescribe supplementary use of the SF 702 or 
Optional Form 62 to apply to other authorized legends approved by the 
Department for officially limited information.
    (4) Safe Combination Records. Combinations to security equipment 
containing classified information shall be recorded on Standard Form 700 
(Security Container Information), national stock number 7540-01-214-
5372. Bureaus and the Departmental Offices may continue to use Treasury 
Form 4032 (Security Container Information) in lieu of the SF 700 until 
September 30, 1990, or such time as their supplies of Treasury Form 4032 
are exhausted. The reprinting of Treasury Form 4032 is not authorized. 
Each part of the SF 700 shall be completed in its entirety. The names, 
addresses and home telephone numbers of personnel responsible for the 
combination, and the classified information stored therein, must be 
indicated on part 1 of the SF 700. The completed part 1 shall be posted 
in the front interior of the top, control or locking drawer of the 
security equipment concerned. Part 2 shall be inserted in the envelop 
(part 2A) provided, and forwarded via appropriate secure means to the 
designated bureau

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or Departmental Offices central repository for security combinations. 
Part 2 shall have the highest level of classified information, stored in 
the security equipment concerned, annotated in both the top and bottom 
border areas of the completed SF 700. Part 2A shall have the highest 
level of classified information, stored in the security equipment 
concerned, annotated in the blank space immediately above the word, 
``WARNING'' which appears on the SF 700. The completion of the SF 700 or 
Treasury Form 4032 does not constitute a classification action but 
serves as an administrative requirement to ensure the protection of 
classified information stored in such security equipment. SF 700 shall 
be utilized on all security equipment used for storing information 
bearing the control legend ``Limited Official Use''. The designated 
security officer in each Treasury bureau and the Departmental Offices 
may prescribe supplementary use of the SF 700 to apply to other 
authorized legends approved by the Department for officially limited 
information, as warranted.
    (c) Keys. The designated security officer in each Treasury bureau 
and the Departmental Offices shall establish administrative procedures 
for the control and accountability of keys and locks whenever key-
operated, high-security padlocks are utilized. The level of protection 
provided such keys shall be equivalent to that afforded the information 
being protected by the padlock.
    (d) Classified Document Cover Sheets. Classified document cover 
sheets alert personnel that documents or folders are classified and 
require protection from unauthorized scrutiny. Individuals who prepare 
or package classified documents are responsible for affixing the 
appropriate document cover sheet. Orange Standard Form 703 (Top Secret 
Cover Sheet), red SF 704 (Secret Cover Sheet) and blue SF 706 
(Confidential Cover Sheet) are the only authorized cover sheets for 
collateral classified information. The national stock numbers of these 
cover sheets are as follows: SF 703, 7540-01-213-7901; SF 704, 7540-01-
213-7902; and SF 705, 7540-01-213-7903. In order to maintain the 
integrity of the color coding process the photocopying and use of non-
color coded classified document cover sheets is prohibited. Bureaus and 
offices shall maintain a supply of classified document cover sheets 
appropriate for their needs. Classified document cover sheets are 
designed to be reused and will be removed before classified information 
is filed to conserve filing space and prior to the destruction of 
classified information. Document cover sheets are to be used to shield 
classified documents while in use and particularly when the transmission 
is made internally within a headquarters by courier, messenger or by 
personal contact. File folders containing classified information should 
be otherwise marked, e.g., at the top and bottom of the front and back 
covers, to indicate the overall classification of the contents rather 
than permanently affixing the respective classified document cover 
sheet. Treasury Directive 71-02 provides for the use of a green cover 
sheet, TD F 71-01.6 (Limited Official Use Document Cover Sheet) for 
information bearing the control legend ``Limited Official Use''. Bureaus 
or offices electing to create and use other cover sheets for officially 
limited information must obtain prior written approval from the 
Departmental Director of Security.
    (e) Activity Security Checklist. Standard Form 701 (Activity 
Security Checklist) provides a systematic means to make a thorough end-
of-day security inspection for a particular work area and to allow for 
employee accountability in the event that irregularities are discovered. 
Bureaus and the Departmental Offices may include additional information 
on the SF 701 to suit their unique needs. The SF 701, available through 
normal supply channels has a national stock number of 7540-01-213-7900. 
It shall be the only form used in situations that call for use of an 
activity security checklist. Completion, storage and disposition of SF 
701 will be determined by each bureau and the Departmental Offices.