[Federal Register Volume 76, Number 209 (Friday, October 28, 2011)]
[Rules and Regulations]
[Pages 66855-66856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27740]



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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Parts 351, 353, 359, and 360


United States Savings Bonds, Series EE, HH and I

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

ACTION: Final rule.

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SUMMARY: Treasury is discontinuing the over-the-counter sales of 
definitive (paper) savings bonds. This includes sales through financial 
institutions and mail-in orders. The elimination of definitive savings 
bond issuances will reduce program costs, enhance customer service, and 
minimize environmental impact.

DATES: Effective date: January 1, 2012.

ADDRESSES: You can download this Final Rule at the following Internet 
addresses: http://www.publicdebt.treas.gov, http://www.gpo.gov, or 
http://www.regulations.gov.

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

SUPPLEMENTARY INFORMATION: United States Savings Bonds are non-
marketable Treasury securities which have been sold continuously since 
March 1935. Savings bonds were introduced as a means of encouraging 
broad public participation in government financing by making Treasury 
securities available in small denominations specially tailored to the 
small investor. Savings bonds continue to be an important savings and 
investment tool for individuals, and Treasury is committed to offering 
savings bonds to the public as efficiently as possible.
    Treasury made savings bonds available in electronic (book-entry) 
form through the TreasuryDirect[supreg] system in 2002, and savings 
bonds will continue to be available electronically. However, the 
issuance of paper (definitive) savings bonds will be discontinued as of 
January 1, 2012. The elimination of definitive savings bond issuances 
will reduce program costs, enhance customer service, and minimize 
environmental impact.
    Although no new paper savings bonds will be issued after the 
effective date, this change does not impact the ability to hold or 
redeem existing paper bonds. Individuals will also be able to obtain 
paper Series I savings bonds with their tax refunds through Internal 
Revenue Service Form 8888.

Procedural Requirements

    Executive Order 12866. This rule is not a significant regulatory 
action pursuant to Executive Order 12866.
    Administrative Procedure Act (APA). Because this rule relates to 
United States securities, which are contracts between Treasury and the 
owner of the security, this rule falls within the contract exception to 
the APA, 5 U.S.C. 553(a)(2). As a result, the notice, public comment, 
and delayed effective date provisions of the APA are inapplicable to 
this rule.
    Regulatory Flexibility Act. The provisions of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., do not apply to this rule 
because, pursuant to 5 U.S.C. 553(a)(2), it is not required to be 
issued with notice and opportunity for public comment.
    Paperwork Reduction Act (PRA). We ask for no new collections of 
information in this final rule. Therefore, the Paperwork Reduction Act 
(44 U.S.C. 3501 et seq.) does not apply.
    Congressional Review Act (CRA). This rule is not a major rule 
pursuant to the CRA, 5 U.S.C. 801 et seq., because it is a minor 
amendment that is expected to decrease costs for taxpayers; therefore, 
this rule is not expected to lead to any of the results listed in 5 
U.S.C. 804(2). This rule will take effect January 1, 2012, after we 
submit a copy of it to Congress and the Comptroller General.

List of Subjects

31 CFR Part 351

    Bonds, Federal Reserve System, Government Securities.

31 CFR Part 353

    Bonds, Federal Reserve System, Government Securities.

31 CFR Part 359

    Bonds, Federal Reserve System, Government Securities.

31 CFR Part 360

    Bonds, Federal Reserve System, Government Securities.

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

PART 351--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES EE

0
1. The authority citation for part 351 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.


0
2. Revise Sec.  351.4 to read as follows:


Sec.  351.4  In what form are Series EE savings bonds issued?

    Series EE savings bonds are issued in book-entry form. Effective 
January 1, 2012, Treasury discontinued the issuance of definitive 
Series EE savings bonds.

0
3. Revise Sec.  351.40 to read as follows:


Sec.  351.40  What were the denominations and prices of definitive 
Series EE savings bonds?

    Prior to January 1, 2012, we issued definitive Series EE savings 
bonds in denominations of $50, $75, $100, $200, $500, $1000, $5000, and 
$10,000. The purchase price was one-half the amount of the 
denomination.

0
4. Revise Sec.  351.42 to read as follows:


Sec.  351.42  What is the issue date of a definitive series EE savings 
bond?

    The issue date of a definitive bond is the first day of the month 
in which an authorized issuing agent received payment of the issue 
price.

0
5. Revise the last sentence of Sec.  351.43 to read as follows:


Sec.  351.43  Are Taxpayer Identification Numbers (TINs) required for 
the registration of definitive series EE savings bonds?

    * * * If the bond was purchased as a gift or award and the owner's 
TIN is not known, the TIN of the purchaser must be included in the 
registration of the bond.

0
6. Remove and reserve Sec.  351.44 through Sec.  351.45.

0
7. Revise Sec.  351.46 to read as follows:


Sec.  351.46  May I purchase definitive Series EE savings bonds over-
the-counter?

    Effective January 1, 2012, Treasury discontinued the over-the-
counter sale of definitive Series EE savings bonds.

0
8. Remove and reserve Sec.  351.83.

PART 353--REGULATIONS GOVERNING DEFINITIVE UNITED STATES SAVINGS 
BONDS, SERIES EE AND HH

0
9. The authority citation for part 353 continues to read as follows:

    Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105, 3125.


0
10. Amend Sec.  353.5 by revising the first sentence of paragraph (a) 
and the first

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sentence of paragraph (c) to read as follows:


Sec.  353.5  General rules.

    (a) Registration is conclusive of ownership. Definitive savings 
bonds were issued only in registered form. * * *
* * * * *
    (c) Registration of bonds purchased as gifts. If the bonds were 
purchased as gifts, awards, prizes, etc., and the taxpayer identifying 
numbers of the intended owners are not known, the purchaser's number 
must be furnished. * * *

0
11. Amend Sec.  353.30 by revising the first sentence to read as 
follows:


Sec.  353.30  Series EE bonds.

    Definitive Series EE bonds were issued at a discount. * * *

0
12. Revise Sec.  353.45 to read as follows:


Sec.  353.45  General.

    (a) Reissue of a bond may be made only under the conditions 
specified in these regulations, and only at:
    (1) A Federal Reserve Bank or Branch, or
    (2) The Bureau of the Public Debt.
    (b) Reissue will not be made if the request is received less than 
one full calendar month before the final maturity date of a bond. The 
request, however, will be effective to establish ownership as though 
the requested reissue had been made. We reserve the right to reissue 
savings bonds in book-entry form only.

PART 359--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I

0
13. The authority citation for part 359 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.


0
14. Revise Sec.  359.4 to read as follows:


Sec.  359.4  In what form are Series I savings bonds issued?

    Series I savings bonds are issued in book-entry form. Effective 
January 1, 2012, Treasury discontinued the issuance of definitive 
Series I savings bonds.

0
15. Revise Sec.  359.25 to read as follows:


Sec.  359.25  What were the denominations and prices of definitive 
Series I savings bonds?

    Prior to January 1, 2012, definitive Series I savings bonds were 
issued in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, 
and $10,000. These definitive bonds were sold at par; that is, the 
purchase price was the same as the denomination (face value).

0
16. Revise Sec.  359.27 to read as follows:


Sec.  359.27  What is the issue date of a definitive Series I savings 
bond?

    The issue date of a definitive bond is the first day of the month 
in which an authorized issuing agent received payment of the issue 
price.

0
17. Revise the last sentence of Sec.  359.28 to read as follows:


Sec.  359.28  Are Taxpayer Identification Numbers (TINs) required for 
the registration of definitive series I savings bonds?

    * * * If the bond was purchased as a gift or award and the owner's 
TIN is not known, the TIN of the purchaser must be included in the 
registration of the bond.

0
18. Remove and reserve Sec.  359.29 through Sec.  359.33.

0
19. Revise Sec.  359.34 to read as follows:


Sec.  359.34  May I purchase definitive Series I savings bonds over-
the-counter?

    Effective January 1, 2012, Treasury discontinued the over-the-
counter sale of definitive Series I savings bonds.

0
20. Remove and reserve Sec.  359.68.

PART 360--REGULATIONS GOVERNING DEFINITIVE UNITED STATES SAVINGS 
BONDS, SERIES I

0
21. The authority citation for part 360 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.

0
22. Amend Sec.  360.5 by revising the first sentence of paragraph (a) 
and the first sentence of paragraph (c) to read as follows:


Sec.  360.5  General rules.

    (a) Registration is conclusive of ownership. Definitive savings 
bonds were issued only in registered form. * * *
* * * * *
    (c) Registration of bonds purchased as gifts. If the bonds were 
purchased as gifts, awards, prizes, etc., and the taxpayer identifying 
numbers of the intended owners are not known, the purchaser's number 
must be furnished. * * *
0
23. Amend Sec.  360.45 by adding the following sentence at the end of 
the section:


Sec.  360.45  General.

    * * * We reserve the right to reissue savings bonds in book-entry 
form only.

Richard L. Gregg,
Fiscal Assistant Secretary.
[FR Doc. 2011-27740 Filed 10-27-11; 8:45 am]
BILLING CODE 4810-39-P