[Federal Register Volume 67, Number 216 (Thursday, November 7, 2002)]
[Notices]
[Pages 67895-67896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28117]


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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 fee schedule will take effect 
on January 2, 2003. The basic fee for the transfer of a Treasury book-
entry security will decrease from $.49 to $.27, a 45 percent fee 
reduction from CY 2002. Concurrent with Treasury's fee reduction, the 
Federal Reserve will be decreasing the fee for the movement of funds 
from $.06 to $.05. These changes will result in a combined fee of $.32 
for a Treasury security transfer. This represents a $.23 fee reduction 
from CY 2002.
    In addition to the basic fee, off-line transfers have a surcharge. 
The surcharge for an off-line Treasury book-entry transfer in CY 2003 
will be $25.00, unchanged from CY 2002.

EFFECTIVE DATE: January 2, 2003.

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.
John M. Lilly, Financial Systems Analyst, 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 its basic fee from the levels currently in 
effect. Effective January 2, 2003, the basic fee will decrease from 
$.49 to $.27 for each Treasury securities transfer and reversal sent 
and received, a 45 percent fee reduction from CY 2002. The surcharge 
for an off-line Treasury book-entry transfer in CY 2003 will be $25.00, 
unchanged from CY 2002.
    The basic transfer fee assessed to both sends and receives is 
reflective of costs associated with the processing of a security 
transfer. The off-line surcharge reflects the additional processing 
costs associated with the manual processing of off-line securities 
transfers.
    The Treasury does not charge a fee for account maintenance, the 
stripping and reconstituting of Treasury securities, 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 (Federal Reserve Docket No. R-1133).
    The following is the Treasury fee schedule that will take effect on 
January 2, 2003, for the book-entry transfers on NBES:

                     Treasury-NBES Fee Schedule \1\
                [Effective January 2, 2003, (in dollars)]
------------------------------------------------------------------------
                                                    Funds \2\
        Transfer type         Basic fee   Off-line   movement  Total fee
                                         Surcharge     fee
------------------------------------------------------------------------
On-line transfer originated.        .27        .00        .05        .32
On-line transfer received...        .27        .00        .05        .32
On-line reversal transfer           .27        .00        .05        .32
 originated.................
On-line reversal transfer           .27        .00        .05        .32
 received...................
Off-line transfer originated        .27      25.00        .05      25.32
Off-line transfer received..        .27      25.00        .25      25.32
Off-line account switch             .27        .00        .05        .32
 received...................
Off-line reversal transfer          .27      25.00        .05      25.32
 originated.................
Off-line reversal transfer          .27      25.05         25      25.32
 received...................
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\1\ The Treasury does not charge a fee for account maintenance, the
  stripping and reconstituting of Treasury securities, 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.



[[Page 67896]]

    Authority: 31 CFR 357.45

    Dated: October 23, 2002.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 02-28117 Filed 11-6-02; 8:45 am]
BILLING CODE 4810-39-P