[Federal Register Volume 63, Number 241 (Wednesday, December 16, 1998)]
[Rules and Regulations]
[Page 69191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33263]



[[Page 69191]]

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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 357

[Department of the Treasury Circular, Public Debt Series, No. 2-86]


Regulations Governing Book-Entry Treasury Bonds, Notes and Bills

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

ACTION: Final rule.

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SUMMARY: The Department of the Treasury is publishing a final rule to 
amend its TRADES Commentary (Appendix B of 31 CFR Part 357), to update 
the list of states that have enacted Revised Article 8 of the Uniform 
Commercial Code and that were the subject of prior notices published by 
Treasury in the Federal Register. Appendix B provides explanatory 
information regarding the regulations governing Treasury securities 
held in the commercial book-entry system, referred to as the Treasury/
Reserve Automated Debt Entry System (``TRADES'').

EFFECTIVE DATE: December 16, 1998.

FOR FURTHER INFORMATION CONTACT: Sandra Dyson, Attorney-Advisor (202) 
219-3320, or Cynthia E. Reese, Deputy Chief Counsel, (202) 219-3320. 
Copies of the final rule are being made available for downloading from 
the Bureau of the Public Debt home page at the following address: 
www.publicdebt.treas.gov.

SUPPLEMENTARY INFORMATION: The final rule to govern Treasury securities 
held in the commercial book-entry system, or TRADES, was published 
August 23, 1996 (61 FR 43626), and was effective January 1, 1997. 
Appendix B of the rule, the TRADES Commentary, addresses the limited 
scope of federal preemption of state law under Section 357.11 of the 
Section-by Section Analysis. If the choice of law rules set forth in 
TRADES lead to the application of the law of a state that has not yet 
adopted Revised Article 8 of the Uniform Commercial Code (Revised 
Article 8) then TRADES applies Revised Article 8 (as approved by the 
American Law Institute and the National Conference of Commissioners on 
Uniform State Laws, or the ``uniform version''). Treasury indicated in 
the preamble to the final rule that if a state passes a version of 
Revised Article 8 that is substantially identical to the uniform 
version, then reference to the uniform version would no longer be 
required. In the TRADES Commentary, Treasury further stated that it had 
reviewed the laws of those states which had adopted Revised Article 8 
as of the date of the publication of the final rule and had concluded 
that they were substantially identical to the uniform version. Those 28 
states were enumerated and listed by name alphabetically in a footnote.
    Treasury further indicated that it would publish in the Federal 
Register a notice setting forth its conclusion as to whether additional 
state enactments of Revised Article 8 are ``substantially identical'' 
to the uniform version for purposes of the regulations. Treasury has 
published such notices with respect to 22 states: California (62 FR 26, 
January 2, 1997), District of Columbia (62 FR 34010, June 18, 1997), 
Delaware, Hawaii, Maine, Missouri, Montana, Nevada, New Jersey, New 
York, North Carolina, North Dakota, Ohio, Tennessee and Puerto Rico (62 
FR 61912, November 20, 1997), South Dakota (63 FR 20099, April 23, 
1998), Georgia, Florida and Connecticut (63 FR 35807, July 1, 1998) and 
Wisconsin, New Hampshire and Michigan (63 FR 50159, September 21, 
1998). The TRADES Commentary further states that Treasury will, on an 
annual basis, amend the Commentary (Appendix B) to reflect subsequent 
enactments. The Commentary was amended last year to add California and 
the District of Columbia to the list. Accordingly, this final rule 
amends Appendix B to reflect the addition of the other nineteen 
aforementioned states for which Treasury has published notices to the 
list of states enumerated therein.

Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'' pursuant to Executive Order 12866. The notice and 
public comment procedures requirements 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 contained in this final 
rule. Therefore, the Paperwork Reduction Act does not apply.

List of Subjects in 31 CFR Part 357

    Bonds, Electronic funds transfer, Federal Reserve System, 
Government securities, Incorporation by reference, Securities.

    For the reasons set forth in the preamble, Title 31, Chapter II, 
Subchapter B, Part 357 is amended as follows:

PART 357--REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES 
AND BILLS

    1. The authority citation for Part 357 continues to read as 
follows:

    Authority: 31 U.S.C. Chapter 31; 5 U.S.C. 301; 12 U.S.C. 391.

    2. Appendix B to Part 357 is amended in the Section-by-Section 
Analysis for Section 357.11(b), in the third paragraph, by revising the 
fourth sentence and footnote 11 to read as follows:

Appendix B to Part 357--TRADES Commentary

* * * * *
Section-by-Section Analysis
* * * * *
Section 357.11--Law Governing Other Interests
* * * * *
    (b) Limited Scope of Federal Preemption * * *
    * * * Treasury has determined that the versions of Article 8 passed 
by 5011 states that have enacted Article 8 meet this 
standard. * * *
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    \11\ Alabama, Alaska, Arizona, Arkansas, California, Colorado, 
Connecticut, Delaware, District of Columbia, Florida, Georgia, 
Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, 
Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, 
Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New 
Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, 
Oregon, Pennsylvania, Puerto Rico, South Dakota, Tennessee, Texas, 
Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and 
Wyoming.

    Dated: November 10, 1998.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 98-33263 Filed 12-15-98; 8:45 am]
BILLING CODE 4810-39-W