[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