[Federal Register Volume 61, Number 200 (Tuesday, October 15, 1996)]
[Rules and Regulations]
[Pages 53822-53823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26375]



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Part III





Department of the Treasury





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Fiscal Service



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31 CFR Part 353



Regulations Governing United States Savings Bonds, Series EE and HH; 
Final Rule

  Federal Register / Vol. 61, No. 200 / Tuesday, October 15, 1996 / 
Rules and Regulations  

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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 353

[Department of the Treasury Circular, Public Debt Series No. 3-80]


Regulations Governing United States Savings Bonds, Series EE and 
HH

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Final rule.

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SUMMARY: This rule amends regulations governing Series EE and HH 
Savings Bonds to provide explicitly for the recognition of Federal 
asset forfeiture laws and providing for payment of United States 
Savings Bonds pursuant to Federal judicial or administrative 
forfeiture.

EFFECTIVE DATE: October 15, 1996.

FOR FURTHER INFORMATION CONTACT: Ed Gronseth, Deputy Chief Counsel, or 
Bob Riffle, Attorney-Adviser, Office of the Chief Counsel, Bureau of 
the Public Debt, at (304) 480-5192.

SUPPLEMENTARY INFORMATION:

I. Background

    The Secretary of the Treasury is authorized under 31 U.S.C. 3105 to 
prescribe the terms and conditions of savings bonds including, 
specifically, restrictions on transfer. The Department of the Treasury 
has promulgated regulations in 31 CFR, Subtitle B, that set the terms 
and conditions of savings bonds.
    Savings bonds are Federal contracts, the terms of which are 
contained in laws, offering circulars, and other applicable 
regulations.
    In recent years a number of Federal laws have been enacted 
providing for forfeiture of property in certain specified situations. 
This rule amends the regulations governing United States Savings Bonds, 
Series EE and HH, by providing explicitly for the recognition of 
Federal judicial forfeitures and Federal administrative forfeitures 
made pursuant to Federal forfeiture laws.
    This rule does not provide for recognition of judicial or 
administrative forfeiture orders issued by State or local authorities.
    Series E savings bonds were first issued in 1941; their sale was 
terminated in 1979. Series H bonds were first issued in 1952; their 
sale was terminated in 1979. Series EE and HH bonds were first issued 
beginning in 1980. Series E savings bonds were offered for sale under 
31 CFR Part 316; Series EE bonds are offered under 31 CFR Part 351. 
Series H savings bonds were offered for sale under 31 CFR Part 332; 
Series HH bonds are offered under 31 CFR Part 352. All bonds are 
governed by additional regulations, at 31 CFR Part 315 or 353, 
expressly made part of the terms of the offerings.
    Since Series E and H savings bonds and savings notes are no longer 
being issued they are not being addressed by this rule.

II. Summary of Amendment

    Section 353.15 of the regulations provides that ``savings bonds are 
not transferable and are payable only to the owners named on the bonds, 
except as specifically provided in these regulations and then only in 
the manner and to the extent so provided.'' Section 353.5(a) of the 
regulations states that the registration of the bonds is conclusive of 
ownership. Almost all savings bonds are issued in either coownership or 
beneficiary form. Section 353.7 provides that a bond in coownership 
form is registered ``A or B'' and that a bond in beneficiary form is 
registered ``A payable on death to B'' or ``A POD B.''
    Section 353.35 provides, in part, that ``[p]ayment of a savings 
bond will be made to the person or persons entitled under the 
provisions of these regulations * * *.'' Subpart E of Part 353 sets 
forth rules for recognition of judicial determinations involving 
savings bonds.
    This rule makes payment of Series EE and HH savings bonds pursuant 
to a Federal judicial forfeiture or Federal administrative forfeiture 
an explicit part of the terms and conditions of the contract with 
savings bond investors. This rule amends Subpart E of the regulations 
by providing explicitly for the recognition of changes in ownership 
through Federal forfeiture proceedings.

III. Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'', pursuant to Executive Order 12866. The regulatory 
review procedures, therefore, do not apply. Because this rule relates 
to matters of public contract, as well as the borrowing power and 
fiscal authority of the United States, the notice, public comment, and 
delayed effective date provisions of the Administrative Procedure Act 
are inapplicable pursuant to 5 U.S.C. 553(a)(2). As no notice of 
proposed rulemaking is required, the provisions of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., do not apply. There are no 
collections of information required by this final rule, and, therefore, 
the Paperwork Reduction Act does not apply.

List of Subjects in 31 CFR Part 353

    Bonds, Government securities.

    Dated: October 8, 1996.
Gerald Murphy,
Fiscal Assistant Secretary.

    For the reasons set forth in the preamble, Title 31, Subtitle B, 
Chapter II, Part 353 of the Code of Federal Regulations is amended as 
follows:

PART 353--REGULATIONS GOVERNING UNITED STATES SAVINGS BONDS, SERIES 
EE AND HH

    1. The authority citation for Part 353 continues to read as 
follows:

    Authority: 31 U.S.C. 3105 and 5 U.S.C. 301.

    2. In Subpart E a new section, Sec. 353.24, is added to read as 
follows:


Sec. 353.24  Payment pursuant to judicial or administrative forfeiture.

    (a) Definitions. As used in this part:
    (1) Contact point means the individual designated to receive 
referrals from the Bureau of the Public Debt, as provided for in this 
section, by the Federal investigative agency, United States Attorney's 
Office, or forfeiting agency specified in Public Debt Form 1522.
    (2) Forfeiting agency means the federal law enforcement agency 
responsible for the forfeiture.
    (3) Forfeiture.
    (i) Administrative forfeiture means the process by which property 
may be forfeited by a Federal agency rather than through judicial 
proceedings.
    (ii) Judicial forfeiture means either a civil or a criminal 
proceeding in a United States District Court that may result in a final 
judgment and order of forfeiture.
    (4) Public Debt Form 1522 means the written notification of the 
forfeiture provided by the forfeiting agency to the Bureau of the 
Public Debt on a Public Debt Form 1522 SPECIAL FORM OF REQUEST FOR 
PAYMENT OF UNITED STATES SAVINGS AND RETIREMENT SECURITIES WHERE USE OF 
A DETACHED REQUEST IS AUTHORIZED. Public Debt Form 1522 must specify: 
the contact point; the issue date of each bond; the serial number for 
each bond; the date of forfeiture; the forfeiture fund to which payment 
is to be made; and be signed by an individual authorized by the 
forfeiting agency. The forfeited bonds and the completed Public Debt 
Form 1522 are to be mailed to the Department of the Treasury, Bureau of 
the Public Debt, Parkersburg, WV 26106-1328.
    (b) Forfeiture of bond. (1) Upon receipt and review of the Public 
Debt

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Form 1522, as described in (a)(4) above, the Bureau of the Public Debt 
will make payment to the forfeiture fund specified on the form.
    (2) The Bureau of the Public Debt will record the forfeiture, the 
forfeiture fund into which the proceeds were paid, the contact point, 
and any related information.
    (3) The Bureau of the Public Debt will rely exclusively upon the 
information provided by the Federal agency in the Public Debt Form 1522 
and will not make any independent evaluation of the validity of the 
forfeiture order, the request for payment, or the authority of the 
individual signing the request for payment.
    (4) The amount paid is limited to the redemption value of the 
savings bonds as of the date of forfeiture specified in the Public Debt 
Form 1522.
    (c) Inquiry from previous owner. (1) Upon payment made pursuant to 
(b), all inquiries from the previous owner, including requests for 
payment, reissue, or applications for relief, related to forfeited 
savings bonds will be referred by the Bureau of the Public Debt to the 
contact point named in the Public Debt Form 1522.
    (2) The Bureau of the Public Debt will notify the submitter of the 
inquiry of the referral to the contact point.
    (3) The Bureau of the Public Debt will not investigate the inquiry 
and will defer to the forfeiting agency's determination of the 
appropriate course of action, including settlement where appropriate. 
Any settlement will be paid from the forfeiture fund into which the 
proceeds were deposited.

[FR Doc. 96-26375 Filed 10-11-96; 8:45 am]
BILLING CODE 4810-39-P