[Federal Register Volume 59, Number 174 (Friday, September 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22231]
[[Page Unknown]]
[Federal Register: September 9, 1994]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Fiscal Service
U.S. Savings Bonds; Revised Issuing Agent Fee Schedule
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces a revised schedule of fees payable to
eligible United States Savings Bond issuing agents. The revised fee
schedule covers issue records transmitted to the Bureau of the Public
Debt, and over-the-counter purchase orders, or electronic purchase
order records, received by Federal Reserve Banks. Such fees will be
paid on a monthly basis, instead of quarterly. The purpose of the
change is to pay issuing agents more frequently and to bring greater
consistency to the timing and method of paying fees.
EFFECTIVE DATE: October 1, 1994.
FOR FURTHER INFORMATION CONTACT: Dean A. Adams, Assistant Chief
Counsel, Bureau of the Public Debt, Parkersburg, WV 26106-1328, (304)
480-5192.
SUPPLEMENTARY INFORMATION: Title 31 CFR Part 317 (also known as
Department of the Treasury Circular, Public Debt Series No. 4-67, as
revised and amended), at Sec. 317.6(b), provides that savings bond
issuing agents, other than Federal agencies, will be paid fees, in
accordance with a schedule published in the Federal Register.
Under the Regional Delivery System (RDS), agents qualified to sell
bonds over-the-counter accept purchase orders and sales proceeds, i.e.,
the purchase price, from purchasers and transmit such orders and
proceeds to designated Federal Reserve Offices that then inscribe and
issue bonds through automated processing. No changes have been made to
the schedule of fees paid to RDS agents.
Issuing agents authorized to inscribe bonds sold over-the-counter
and to report such sales on magnetic tape will continue to receive a
fee of $.85 for each bond. However, effective October 1, 1994, such fee
will be paid monthly by a designated Federal Reserve Office within
forty-five days after the close of the month instead of, as heretofore,
within fifty (50) days after the close of each calendar quarter. In
addition, all such fees will be paid by credit to accounts with Federal
Reserve Banks or by the Automated Clearing House (ACH) method.
Fees paid to these agents will be based upon issue records
transferred to the Bureau of the Public Debt in a calendar month based
on transfer dates assigned to transmittals by a designated Federal
Reserve Office. Fees paid to agents for issuing bonds through payroll
savings plans will also be paid monthly by a designated Federal Reserve
Office within forty-five days after the close of the month by credit to
accounts with Federal Reserve Banks or by the Automated Clearing House
(ACH) method. Such fees will no longer be based upon quarterly volumes.
The new scale will be based upon monthly volumes, as follows: The first
500 bonds @ $.32 each, the next 3,000 bonds @ $.11 each, and all bonds
over 3,500 @ $.06 each.
The fee schedule is included by reference in all issuing agent
agreements and referred to in 31 CFR Part 317, as well as the Issuing
Agent Fee Statement (PD F 4982), distributed to issuing agents. The
purpose of the change in fee schedule is to provide for a more frequent
payment of fees and for greater consistency in the timing and method of
paying fees to issuing agents.
Dated: August 31, 1994.
Gerald Murphy,
Fiscal Assistant Secretary.
Schedule of Fees
The schedule of fees for the issue of Series EE savings bonds are
hereby set forth below:
Eligible organizations, other than Federal agencies, qualified as
issuing agents by Federal Reserve Banks and Branches under 31 CFR Part
317 (also known as Department of the Treasury Circular, Public Debt
Series No. 4-67, as revised and amended) will receive a fee for each
savings bond issued or, in the case of agents authorized to participate
in the Regional Delivery System (RDS), for each over-the-counter
purchase order or electronic purchase order record submitted by an RDS
agent to a Federal Reserve Office. Such fees are specifically
authorized in 31 CFR Sec. 317.6(b). Federal agencies, including wholly-
owned government corporations and independent establishments, are not
eligible to receive fees. Categories of organizations and institutions
eligible for qualification as issuing agents, in accordance with 31 CFR
Sec. 317.3, are identified in 31 CFR Sec. 317.2. These categories
include banks, trust companies, certain savings institutions, Federal
credit unions, and employers operating certain payroll savings plans
for their employees.
Fee Schedule--Over-the-Counter Issues
Qualified issuing agents, other than Federal agencies, will be paid
a fee for each over-the-counter savings bond order transaction, based
on the method used to transmit the purchase information and remittance
to a Federal Reserve Office or the Bureau of the Public Debt as set
forth below.
(a) Class 1 Fees: Each issuing agent, authorized under a special
arrangement to inscribe bonds sold over-the-counter and report sales
(original issues) on magnetic tape, will be paid a fee of $.85 for each
Series EE bond issue record transmitted to the Bureau of the Public
Debt during a calendar month, based on transfer dates assigned to the
transmittals by a designated Federal Reserve Office. Class 1 fees will
be paid to each such issuing agent by a designated Federal Reserve
Office within forty-five (45) days after the close of the month by a
credit to an account with a Federal Reserve Bank or by the Automated
Clearing House (ACH) method.
(b) Class 2 Fees: Each issuing agent, authorized to participate in
the Regional Delivery System, will be paid a fee of $.50 for each paper
Series EE purchase order received by a Federal Reserve Office from the
agent during a calendar month. Class 2 fees will be paid to each such
agent by a designated Federal Reserve Office within forty-five (45)
days after the close of the month by a credit to an account with a
Federal Reserve Bank.
(c) Class 3 Fees: Each issuing agent, i.e., a depository financial
institution, authorized to participate in the Regional Delivery System,
will be paid a fee of $.85 for each purchase order record submitted to
the Federal Reserve Office during a calendar month, if the agent elects
to prepare electronic records of Series EE purchase order information
and to transmit such information to a designated Federal Reserve Office
for inscription of the bonds. Class 3 fees will be paid to each such
agent by a designated Federal Reserve Office within forty-five (45)
days after the close of the month by a credit to the institution's
account with a Federal Reserve Bank.
Coverage of Over-the-Counter Fees
Class 1 fees are intended to recompense issuing agents that are
authorized to inscribe bonds sold over-the-counter for costs associated
with obtaining and controlling unissued bond stock, accepting and
reviewing purchase orders, and inscribing and delivering bonds. Postage
costs for mailing bonds are excluded. Class 2 fees are intended to
recompense authorized RDS participants for costs associated with
accepting and reviewing purchase orders and preparing transmittals to a
Federal Reserve Office. Class 3 fees are intended to recompense
authorized RDS participants for costs associated with accepting and
reviewing purchase orders, generating electronic records of purchase
orders, and transmitting such information to a Federal Reserve Office.
Fee Schedule--Payroll and Other Issues
Qualified issuing agents, other than Federal agencies, will be paid
a fee for each Series EE savings bond issued through deductions under a
payroll savings plan on the following scale:
(a) For the first 500 bonds issued in a month, $.32 per bond.
(b) For the next 3,000 bonds issued in a month, $.11 per bond.
(c) For all Series EE bonds over 3,500 issued in a month, $.06 per
bond.
Payroll fee payments will be based on the number of individual bond
issue records transmitted by an issuing agent to the Bureau of the
Public Debt during a calendar month in accordance with transfer dates
assigned to the transmittals by a designated Federal Reserve Office.
Payroll fees will be paid to such agent by a designated Federal Reserve
Office within forty-five (45) days after the close of the month by a
credit to an account with a Federal Reserve Bank or by the Automated
Clearing House (ACH) method.
Coverage of Payroll Fees
In establishing and paying a fee for savings bonds issued under
payroll savings plans, the Department of the Treasury is recompensing
issuing agents for costs associated with obtaining and controlling bond
stock and in inscribing and delivering the bonds. The fee does not
include postage costs for mailing bonds. The amount of the fee is
generally based on the cost to the Department of employing alternative
methods to obtain or to provide this issuing service.
Charge to Customers
Any individual who purchases Series EE savings bonds over-the-
counter, through a Bond-a-Month plan, through deductions under a
payroll savings plan, or through any other authorized means, may not be
charged any fee whatsoever by an issuing agent, an employer, or any
other organization or individual for issuing Series EE savings bonds or
conducting any related activities. A financial institution that accepts
fees from the Department of the Treasury for issuing savings bonds or
accepting over-the counter purchase orders shall not make any charge to
customers for the same service. Customers in this context include
employers that provide a payroll savings plan for their employees and
have arranged for a financial institution to issue the bonds.
[FR Doc. 94-22231 Filed 9-8-94; 8:45 am]
BILLING CODE 4810-39-W