[Federal Register Volume 67, Number 247 (Tuesday, December 24, 2002)]
[Rules and Regulations]
[Pages 78384-78385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32378]


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

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 352


Offering of United States Savings Bonds, Series HH

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

ACTION: Final rule.

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

SUMMARY: This Final Rule amends the offering of Series HH United States 
Savings Bonds to permit the investment yield to be changed by 
announcement by the Secretary of the Treasury or the Secretary's 
designee. The change affects bonds that are issued or enter into an 
extended maturity period on or after January 1, 2003. Permitting the 
investment yield to be set by announcement provides flexibility in 
reflecting changes in prevailing interest rates.

EFFECTIVE DATE: January 1, 2003.

ADDRESSES: You can download this final rule at the following Internet 
address: http://www.publicdebt.treas.gov.

FOR FURTHER INFORMATION CONTACT:
Elisha Whipkey, Director, Division of Program Administration, Office of 
Securities Operations, Bureau of the Public Debt, at (304) 480-6319 or 
[email protected].
Susan Klimas, Attorney-Adviser, Office of the Chief Counsel, Bureau of 
the Public Debt, at (304) 480-8692 or [email protected].
Dean Adams, Assistant Chief Counsel, Office of the Chief Counsel, 
Bureau of the Public Debt, at (304) 480-8692 or 
[email protected].
Edward Gronseth, Deputy Chief Counsel, Bureau of the Public Debt, at 
(304) 480-8692 or [email protected].

SUPPLEMENTARY INFORMATION: We are amending the offering regulations for 
United States Savings Bonds of Series HH. Effective January 1, 2003, 
the investment yield for Series HH savings bonds that are issued or 
enter into an extended maturity period on or after January 1, 2003, 
will be set by announcement by the Secretary or the Secretary's 
designee. We are also removing the table at the end of the offering 
regulations, since the information contained in the table will change 
with each announcement of change in the investment yield.
    Currently, the investment yield must be changed by an amendment to 
the regulations.
    The purpose of permitting the investment yield to be set by 
announcement is to provide greater flexibility for the Secretary in 
responding to market conditions and prevailing interest rates.

Procedural Requirements

    This final rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866. Therefore, the 
regulatory review procedures contained therein do not apply.
    This final rule relates to matters of public contract and 
procedures for United States securities. The notice and public 
procedures requirements and delayed effective date requirements of the 
Administrative Procedure Act are inapplicable, pursuant to 5 U.S.C. 
553(a)(2).
    As no notice of proposed rulemaking is required, the Regulatory 
Flexibility Act (5 U.S.C. 601, et seq.) does not apply.
    We ask for no new collections of information in this final rule. 
Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply.

List of Subjects in 31 CFR Part 352

    Bonds, Government securities.

    Accordingly, for the reasons set out in the preamble, 31 CFR 
Chapter II, Subchapter B, is amended as follows:

PART 352--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES HH

    1. The authority citation for part 352 continues to read as 
follows:

    Authority: 31 U.S.C. 3105, 5 U.S.C. 301.

    2. Amend Sec.  352.2 as follows:
    a. Redesignate current paragraphs (e)(1)(i) through (e)(1)(vii) as 
paragraphs (e)(1)(ii) through (e)(1)(viii);
    b. Add new paragraph (e)(1)(i);
    c. Revise redesignated paragraph (e)(1)(ii); and
    d. Revise paragraph (e)(2). The addition and revisions read as 
follows:


Sec.  352.2  Description of bonds.

* * * * *
    (e) Investment yield (interest).--(1) During original maturity. The 
investment yields for Series HH bonds during their original maturity 
periods are as specified in paragraphs (e)(1)(i) and (ii) of this 
section.
    (i) Bonds with issue dates of January 1, 2003, and thereafter. The 
investment yield applicable to Series HH bonds issued on or after 
January 1, 2003, will be furnished in rate announcements by the 
Secretary or the Secretary's designee. The rate announced will apply to 
bonds issued during the period covered by the announcement.
    (ii) Bonds with issue dates of March 1, 1993, through December 1, 
2002.

[[Page 78385]]

Series HH bonds with issue dates of March 1, 1993, through December 1, 
2002, yield 4 percent per annum, paid semiannually, to original 
maturity.
* * * * *
    (2) During extended maturity. The investment yields for Series HH 
bonds during their extended maturity periods are as specified in 
paragraphs (e)(2)(i), (ii), and (iii) of this section.
    (i) Bonds that enter an extended maturity period on or after 
January 1, 2003. The investment yield applicable to Series HH bonds 
that enter an extended maturity period on or after January 1, 2003, 
will be furnished in rate announcements by the Secretary or the 
Secretary's designee. The rate announced will apply to bonds that enter 
an extended maturity period during the period covered by the 
announcement.
    (ii) Bonds that entered an extended maturity period from March 1, 
1993, through December 1, 2002. The investment yield applicable to 
Series HH bonds that entered an extended maturity period from March 1, 
1993, through December 1, 2002, is 4 percent per annum, paid 
semiannually.
    (iii) Bonds that entered an extended maturity period from January 
1, 1990, through February 1, 1993. The investment yield applicable to 
Series HH bonds that entered into an extended maturity period from 
January 1, 1990, through February 1, 1993, is 6 percent per annum, paid 
semiannually.
* * * * *

    3. Remove Table 1 at the end of part 352.

    Dated: November 19, 2002.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 02-32378 Filed 12-19-02; 1:33 pm]
BILLING CODE 4810-39-P