[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Rules and Regulations]
[Pages 55428-55429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23089]


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

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 203

RIN-1510-AA76


Payment of Federal Taxes and the Treasury Tax and Loan Program

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Final rule.

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

SUMMARY: The Financial Management Service (FMS) is issuing this final 
rule which governs the processing of Federal tax payments by financial 
institutions and the Federal Reserve Banks using electronic payment or 
paper methods; the designation of Treasury Tax and Loan (TT&L) 
depositaries; and the operation of the investment program of the 
Department of the Treasury (Treasury). This revision removes current 
references to the acceptability and valuation of collateral pledged to 
secure deposits of tax payments through the Treasury Investment 
Program, and replaces them with references to the new rule published by 
Treasury's 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 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 
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

    The TT&L program encompasses two separate components--a depositary 
component through which the Treasury collects Federal tax deposits and 
payments from business taxpayers for employee withholding and other 
types of taxes, and an investment component through which the Treasury 
invests short-term operating balances not needed for immediate cash 
outlays. More than 1,500 of the TT&L depositaries borrow excess short-
term Treasury operating funds by participating in the investment 
component of the TT&L program. Through agreements, participating 
depositaries borrow Treasury funds in the form of a note secured with 
collateral pledged to the Treasury and pay interest to the Treasury on 
these balances. The Secretary of the Treasury (Secretary) previously 
promulgated regulations, codified at 31 CFR part 203, governing the 
TT&L program and the pledging of such collateral.

[[Page 55429]]

    While FMS continues to be responsible for any other operational and 
regulatory oversight of programs under 31 CFR part 203, 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 (1) unless otherwise specified by the 
Secretary, collateral security pledged under Sec. 203.24 may be 
transferable securities, owned by the depositary free and clear of all 
liens, charges, or claims, of any of the classes listed in procedural 
instructions; and (2) collateral valuations will be assigned by the 
Federal Reserve Bank of the District. The revised rule results in no 
substantive change. The revised rule states that acceptable types and 
valuations of collateral are addressed in 31 CFR part 380. Pursuant to 
Sec. 380.3, BPD has specified that the above provisions of the current 
rule continue.

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 USC 553.

List of Subjects in 31 CFR Part 203

    Banks, Banking.
    For the reasons set out in the preamble, 31 CFR part 203 is amended 
as follows:

PART 203--PAYMENT OF FEDERAL TAXES AND THE TREASURY TAX AND LOAN 
PROGRAM

    1. The authority citation for part 203 continues to read as 
follows:

    Authority: 12 U.S.C. 90, 265-266, 332, 391, 1452(d), 1464(k), 
1767, 1789a, 2013, 2122 and 3102; 26 U.S.C. 6302; 31 U.S.C. 321, 323 
and 3301-3304

    2. Amend Sec. 203.24 to revise paragraph (d) to read as follows:


Sec. 203.24  Collateral security requirements.

* * * * *
    (d) Acceptable securities. 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. 00-23089 Filed 9-12-00; 8:45 am]
BILLING CODE 4810-35-P