[Federal Register Volume 65, Number 3 (Wednesday, January 5, 2000)]
[Notices]
[Pages 557-558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-43]


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DEPARTMENT OF THE TREASURY

Fiscal Service


Fee Schedule for the Transfer of U.S. Treasury Book-Entry 
Securities Held on the National Book-Entry System

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

ACTION: Notice.

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SUMMARY: The Department of the Treasury is announcing a new fee 
schedule for the transfer of book-entry securities maintained on the 
National Book-Entry System (NBES). This new fee schedule will commence 
on April 1, 2000. The new basic fee for a Treasury book-entry security 
transfer, will result in a 13% savings for our NBES customers. Based on 
current projected volumes, this should amount to a savings of about 
$1.7 million annually. Concurrent with Treasury's fee reduction, the 
Federal Reserve will be reducing the fee for the movement of funds 
resulting from a securities transfer. The combined savings will be 18%, 
and should amount to about $2.6 million annually.
    In addition to the basic fee, off-line transfers have a surcharge. 
The surcharge for an off-line Treasury book-entry transfer will be 
increasing 38%.

EFFECTIVE DATE: The new fees will go into effect April 1, 2000.

FOR FURTHER INFORMATION CONTACT:
Edward C. Leithead, Director, Primary & Secondary Market Fixed Income 
Securities (Financing), Bureau of the Public Debt, Suite 3014, 26 
Federal Plaza, New York, NY 10278, telephone (212) 264-6358.
Diane M. Polowczuk, Government Securities Specialist (Financing), 
Bureau of the Public Debt, Room 510, 999 E Street NW, Washington, DC 
20239-0001, telephone (202) 691-3550.

SUPPLEMENTARY INFORMATION: On October 1, 1985, the Department of the 
Treasury established a fee structure for the transfer of Treasury book-
entry securities maintained on NBES.
    Based on the latest review of book-entry costs and volumes, 
Treasury will decrease the basic fee and increase the off-line 
surcharge from the levels currently in effect. Beginning April 1, 2000, 
the basic fee will be $.65 for each securities transfer and reversal 
sent and received, a 13% fee reduction per transfer. The current off-
line surcharge of $13.00 will increase to $18.00, which is a 38% 
increase.
    The basic transfer fee assessed to both senders and receivers 
reflects the decreased costs to process a transfer. The increased off-
line surcharge reflects the additional costs associated with the 
processing of off-line security transfers.
    The Treasury does not charge a fee for account maintenance, the 
stripping and reconstituting of Treasury securities, or the wires 
associated with original issues, or interest and redemption payments. 
The Treasury currently absorbs these costs and will continue to do so.
    The fees described in this notice apply only to the transfer of 
Treasury book-entry securities held on NBES. The Federal Reserve System 
assesses a fee to recover the costs associated with the processing of 
the funds component of Treasury book-entry transfer messages, as well 
as the costs of providing book-entry services for Government agencies 
on NBES. Information concerning book-entry transfers of government 
agency securities, which are priced by the Federal Reserve System, is 
set out in a separate Federal Register notice published by the Board of 
Governors of the Federal Reserve System in this issue of the Federal 
Register (Docket No. 1054).
    The following is the Treasury fee schedule that will be effective 
April 1, 2000, for the book-entry transfers on NBES:

[[Page 558]]



                                          Treasury-NBES Fee Schedule 1
                                      Effective April 1, 2000 [In Dollars]
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                                                                                            Funds 2
                          Transfer type                            Basic fee   Off-line    movement    Total fee
                                                                               surcharge      fee
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On-line transfer originated.....................................         .65         .00         .05         .70
On-line transfer received.......................................         .65         .00         .05         .70
On-line reversal transfer originated............................         .65         .00         .05         .70
On-line reversal transfer received..............................         .65         .00         .05         .70
Off-line transfer originated....................................         .65       18.00         .05       18.70
Off-line transfer received......................................         .65       18.00         .05       18.70
Off-line account switch received................................         .65         .00         .05         .70
Off-line reversal transfer originated...........................         .65       18.00         .05       18.70
Off-line reversal transfer received.............................         .65       18.00         .05      18.70
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\1\ The Treasury does not charge a fee for account maintenance, the stripping and reconstituting of Treasury
  securities, or the wires associated with original issues, or interest and redemption payments. The Treasury
  currently absorbs these costs and will continue to do so.
\2\ The funds movement fee is not a Treasury fee, but is charged by the Federal Reserve for the cost of moving
  funds associated with the transfer of a Treasury book-entry security.

    Authority: 31 CFR 357.45.

    Dated: December 17, 1999.
Donald V. HAMMOND,
Fiscal Assistant Secretary.
[FR Doc. 00-43 Filed 1-4-00; 8:45 am]
BILLING CODE 4810-35-P