[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Rules and Regulations]
[Pages 55427-55428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23088]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 202

RIN-1510-AA75


Depositaries and Financial Agents of the Government

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Final Rule.

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SUMMARY: The Financial Management Service (FMS) is issuing this final 
rule which governs the designation of Depositaries and Financial Agents 
of the Federal Government; their authorization to accept deposits of 
public money and to perform other specific services; and the securing 
of public money. This revision removes current references to collateral 
acceptability and valuation and replaces them with references to the 
new rule of the Bureau of the Public Debt (BPD), codified at 31 CFR 
part 380, governing collateral acceptability and valuation. The 
revision is necessary because the responsibility for determining the 
acceptability and valuation of collateral under 31 CFR part 202 was 
recently transferred from FMS to BPD.

EFFECTIVE DATE: October 13, 2000.

FOR FURTHER INFORMATION CONTACT: Mary Bailey, Financial Program 
Specialist, at (202) 874-6749; Walt Henderson, Senior Financial Program

[[Page 55428]]

Specialist, at (202) 874-6705; Cynthia L. Johnson, Director, Cash 
Management Policy and Planning Division, at (202) 874-6590; or Marc 
Seldin, Senior Attorney, at (202) 874-6680. A copy of this final rule 
is available on FMS' web site at the following address: 
www.fms.treas.gov/regs.html.

SUPPLEMENTARY INFORMATION:

Background

    Depositaries accepting deposits of public money and providing other 
financial agency services to the United States (depositaries) are 
required to pledge adequate acceptable securities as collateral, as 
directed by the Secretary of the Treasury (Secretary). The Secretary 
previously promulgated regulations, codified at 31 CFR part 202, 
setting forth general requirements for designating depositaries and the 
pledging of collateral.
    While FMS continues to be responsible for all other operational and 
regulatory oversight of programs under 31 CFR part 202, responsibility 
for determining the acceptability and valuation of collateral pledged 
for programs under this regulation was recently transferred from FMS to 
BPD, another bureau within the Fiscal Service of the Department of the 
Treasury (Treasury). BPD has promulgated a regulation, codified at 31 
CFR part 380 and published elsewhere in this issue of the Federal 
Register, governing such collateral acceptability and valuation. The 
current rule provides that types and valuation of acceptable collateral 
securities will be specified in Treasury procedural instructions. The 
revised rule results in no effective change. Current references to 
collateral acceptability and valuation are removed and replaced with 
references to BPD's collateral acceptability and valuation rule, which 
similarly provides that types and valuations of acceptable collateral 
securities will be specified in Treasury procedural instructions. 
Treasury procedural instructions issued under the current rule and the 
revised rule are presently identical. This rule also revises the 
heading of this part for clarity and the format of the authority 
citation for this part for consistency.

Regulatory Analyses

    It has been determined that this regulation is not a significant 
regulatory action as defined in Executive Order 12866. Therefore, a 
Regulatory Assessment is not required.
    Executive Order 12866 and the President's memorandum of June 1, 
1998 require each agency to write all rules in plain language.
    We invite your comments on the clarity of this rule. Please send 
any comments to the Department of the Treasury, Financial Management 
Service, Cash Management Policy and Planning Division, 401 14th Street, 
SW, Washington, DC 20227.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act do not apply.
    Because this regulation merely affects internal agency organization 
and does not substantively change the current rule, no notice of 
proposed rulemaking is required by 5 U.S.C. 553.

List of Subjects in 31 CFR Part 202

    Banks, Banking.

    For the reasons set out in the preamble, 31 CFR part 202 is amended 
as follows:
    1. Amend the heading of part 202 to read as follows:

PART 202--DEPOSITARIES AND FINANCIAL AGENTS OF THE FEDERAL 
GOVERNMENT

    2. Revise the authority citation for part 202 to read as follows:

    Authority: 12 U.S.C. 90, 265-266, 391, 1452(d), 1464(k), 1789a, 
2013, 2122 and 3101-3102; 31 U.S.C. 3303 and 3336.

    3. Amend Sec. 202.6 to revise paragraph (b) to read as follows:


Sec. 202.6  Collateral security.

* * * * *
    (b) Acceptable security. Types and valuations of acceptable 
collateral security are addressed in 31 CFR part 380. For a current 
list of acceptable classes of securities and instruments described in 
31 CFR part 380 and their valuations, see the Bureau of the Public 
Debt's web site at www.publicdebt.treas.gov.
* * * * *

    Dated: September 1, 2000.
Richard L. Gregg,
Commissioner.
[FR Doc. 00-23088 Filed 9-12-00; 8:45 am]
BILLING CODE 4810-35-P