[Federal Register Volume 63, Number 44 (Friday, March 6, 1998)]
[Notices]
[Page 11357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5927]
Federal Register / Vol. 63, No. 44 / Friday, March 6, 1998 /
Notices
[[Page 11357]]
DEPARTMENT OF THE TREASURY
Fiscal Service
Coupons Under Book-Entry Safekeeping (CUBES) and Bearer Corpora
Conversion System (BECCS); Opening of Programs
AGENCY: Bureau of the Public Debt, Fiscal Service, Department of the
Treasury.
ACTION: Notice.
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SUMMARY: This notice is being published to announce the reopening by
the Department of the Treasury of its Coupons Under Book-Entry
Safekeeping (CUBES), and the opening of its Bearer Corpora Conversion
System (BECCS) programs, pursuant to the newly amended 31 CFR part 358.
The reopening of CUBES will permit the conversion to book-entry of
certain physical coupons detached from U.S. Treasury bearer securities.
The opening of BECCS will permit the conversion to book-entry of U. S.
Treasury stripped bearer corpora to book-entry form. CUBES and BECCS
securities will be held in the commercial book-entry system, or TRADES.
With the openings of the conversion window for CUBES and BECCS,
depository institutions holding eligible coupons and corpora will have
the opportunity, during the period from April 6, 1998, to and including
October 9, 1998, to convert such coupons and corpora to book-entry
form. Other entities wishing to convert coupons and corpora must
arrange to do so through a depository institution.
DATES: April 6, 1998 through October 9, 1998, as described.
FOR FURTHER INFORMATION CONTACT: Maureen Parker, Director, Division of
Securities Systems, Bureau of the Public Debt (304) 480-7761; Susan
Klimas, Attorney-Adviser, Office of the Chief Counsel, Bureau of the
Public Debt (304) 480-5192; Edward C. Gronseth, Deputy Chief Counsel,
Office of the Chief Counsel, Bureau of the Public Debt (304) 480-5192.
SUPPLEMENTARY INFORMATION: A final rule amending 31 CFR part 358, the
regulations governing CUBES, is published in this issue of the Federal
Register. The final rule adds a new program, BECCS, that provides for
the conversion of United States Treasury stripped bearer corpora to
book-entry. To reflect the expanded scope of part 358, the title of the
part has changed to Regulations Governing Book-Entry Conversion of
Detached Bearer Coupons and Bearer Corpora. The amendment updates the
terms and conditions governing conversions of coupons that occur after
the effective date of the rule and provides the terms and conditions
for the conversion of bearer corpora to BECCS. The amendment also
shortens the notice requirement for openings of the CUBES program from
two months to not less than 30 calendar days.
The regulations governing the book-entry conversion of detached
bearer coupons and bearer corpora permit openings of the CUBES and
BECCS windows for conversion to book-entry form of detached, physical
coupons and stripped bearer corpora. The newly amended 31 CFR 358.0(a)
provides, in part, that notice of time periods for conversion, as well
as coupons and corpora eligible for conversion and applicable fees,
will be published in the Federal Register no less than 30 days prior to
the date coupons may be presented. Accordingly, pursuant to that
authority, Treasury will reopen the window for conversion under its
CUBES program, and open the window for conversion under its BECCS
program beginning April 6, 1998, and ending close of business October
9, 1998. Under the program, depository institutions holding coupons
stripped from Treasury securities and bearer corpora that have been
stripped of all non-callable coupons will be permitted to convert them
to book-entry form. Entities other than depository institutions that
hold such coupons and bearer corpora and that wish to convert them to
book-entry accounts under the CUBES and BECCS programs must arrange for
conversion through a depository institution.
Detached bearer coupons and bearer corpora that are submitted
within 30 days of their maturity date or, if the call provision has
been invoked, within 30 days of their call date, will not be accepted
for conversion.
Presentation of coupons under the CUBES and BECCS windows may be
made only at the Federal Reserve Bank of New York and in compliance
with the presentation procedures established by the Federal Reserve
Bank of New York. Submissions of coupons are subject to the terms and
conditions described in part 358.
A depository institution wishing to participate in CUBES or BECCS
should contact Grace Jaiman (212) 720-8183 or Joanna Grever (212) 720-
8184 of the Federal Reserve Bank of New York as soon as possible to
obtain an information package and the necessary supplies required to
present the stripped coupons and bearer corpora in acceptable form. The
institution should inform the Federal Reserve Bank of New York of its
intention to participate as soon as possible, but no later than two
weeks before deposit, and should submit a completed holdings statement
on the form provided in the information package.
Participants will be charged a separate conversion transaction fee
of $4 for each coupon and each corpus conversion transaction processed.
A corpus submitted with all associated callable coupons will be charged
one conversion transaction fee. A corpus submitted minus one or more
associated callable coupons will be charged a transaction fee for the
conversion of the corpus and a transaction fee for each separate
callable coupon converted. Each non-callable coupon submitted will be
charged a conversion transaction fee. The fee for any coupon or corpus
that is rejected by the Department, for whatever reason, is non-
refundable.
Submitters of coupons are deemed to agree to the terms and
conditions set forth in this notice, 31 CFR part 358, and any other
requirements that may be prescribed by the Department of the Treasury
and the Federal Reserve Bank of New York.
Dated: March 3, 1998.
Van Zeck,
Acting Commissioner, Bureau of the Public Debt.
[FR Doc. 98-5927 Filed 3-5-98; 8:45 am]
BILLING CODE 4810-39-P