[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.

-----------------------------------------------------------------------

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