[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Rules and Regulations]
[Pages 55429-55430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23090]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 225

RIN-1510-AA77


Acceptance of Bonds Secured by Government Obligations in Lieu of 
Bonds With Sureties

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 acceptance of bonds secured by Government 
obligations in lieu of bonds with sureties. This revision adds 
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 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

    Persons required by Federal law to give an agency a surety bond 
instead may provide a bond secured by Government obligations. To assist 
agencies in reviewing and accepting such bonds, the Secretary of the 
Treasury promulgated regulations codified at 31 CFR part 225, which set 
forth requirements applicable to bonds secured by Government 
obligations in lieu of bonds with sureties. While the FMS continues to 
be responsible for all other operational and regulatory oversight of 
programs under 31 CFR part 225, responsibility for determining the 
acceptability and valuation of collateral pledged 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 reserves 
paragraph (e) within section 225.3. The revised rule inserts in this 
section appropriate references to the new BPD regulation. The revised 
rule results in no substantive change. Acceptable types of collateral 
security and their valuation under this revision are the same as exist 
currently. This rule also revises, for purposes of consistency, the 
format of the authority citation for this part.

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

[[Page 55430]]

rule, no notice of proposed rulemaking is required by 5 U.S.C. 553.

List of Subjects in 31 CFR Part 225

    Banks, Banking.
    For the reasons set out in the preamble, 31 CFR part 225 is amended 
as follows:

PART 225--ACCEPTANCE OF BONDS SECURED BY GOVERNMENT OBLIGATIONS IN 
LIEU OF BONDS WITH SURETIES

    1. Revise the authority citation for part 225 to read as follows:

    Authority: 12 U.S.C. 391; 31 U.S.C. 321, 9301 and 9303.


    2. Amend Sec. 225.3 to revise paragraph (e) to read as follows:


Sec. 225.3  Pledge of Government obligations in lieu of a bond with 
surety or sureties.

* * * * *
    (e) Acceptable Government obligations. 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. 00-23090 Filed 9-12-00; 8:45 am]
BILLING CODE 4810-35-P