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federal Reserve Bank of D allas DALLAS, TEXAS 75222 C ircular No. 77-141 December 19, 1977 TREASURY TAX AND LOAN INVESTMENT PROGRAM TO THE CHIEF EXECUTIVE OFFICER, EACH BANK IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Enclosed is an information packet containing the T r e a s u r y ' s proposed rules for the new T r e a s u r y Tax and Loan Investment Program which is tentatively scheduled for implementation in April of 1978. This material should be reviewed a n d , as indicated in the proposed ru les, any written comments should be directed to the Fiscal Assistant Secre ta r y , United States Department of the T r e a s u r y , Room 2112, Washington, D.C. 20220, p rio r to Ja n u a ry 19, 1978. The enclosed a r e proposed rules and a re subject to change pending the outcome of the public h earin gs to be held on Ja n u a ry 12, 1978, and review of the written comments submitted. Plans a re now being made for each Reserve Office to hold several meetings in their respective te r rito r y d u rin g F e b r u a ry - M a r c h , 1978, for the purpose of presenting the T r e a s u r y ' s Investment Program to the banks in this District and to provide an opportunity for questions to be answ ered p r io r to the implementation date. The dates and places of these meetings will be announced at a later date. Any questions concerning the T r e a s u r y Tax and Loan Invest ment Program should be directed to Jack A. Clymer, Assistant Vice P resident of this Bank, Ext. 6340, or the a p p ro p riate officer at our El Paso, Houston, or San Antonio Branch. Sincerely y o u r s , Robert H . Boykin First Vice P resident Enclosures Banks and others are encouraged to use the follow in g incoming W ATS numbers in contacting this Bank: 1-800-492-4403 (intrastate) and 1-800-527-4970 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) SPREAD BETWEEN THE R/P RATE AND THE FEDERAL FUNDS RATE JANUARY - NOVEMBER 1977 Week Ending January 19 26 February 2 9 16 23 March 2 9 16 23 30 April 6 13 20 27 Hay 4 11 18 25 June 1 8 15 22 29 July 6 13 20 27 August 3 10 17 24 31 September 7 14 21 28 October 5 12 19 21 November 2 9 16 23 30 R/P Rate Federal Funds Rate 4.59 4.61 4.54 4.53 4.55 4.61 4.53 4.52 4.53 4.56 4.56 4.53 4.59 4.58 4.50 4.40 4.72 5.05 5.22 5.22 5.23 5.25 5.26 5.20 5.19 5.22 5.23 5.23 5.28 5.32 5.49 5.77 5.81 5.87 5.95 6.04 6.03 6.02 6.23 6.38 6.35 6.30 6.38 6.38 6.31 6.31 4.65 4.72 4.60 4.66 4.70 4.74 4.68 4.63 4.62 4.77 4.74 4.60 4.65 4.71 4.82 5.15 5.31 5.34 5.45 5.36 5.31 5.37 5.43 5.43 5.35 5.33 5.35 5.45 5.80 5.70 5.94 5.99 6.02 5.97 6.05 6.10 6.35 6.41 6.41 6.50 6.49 6.50 6.58 6.42 6.51 6.55 RANGE OF SPREAD AVERAGE OF SPREi Spread (In basis points) 4 to 75 basis points 20 basis points 6 11 6 13 15 13 15 11 9 21 18 7 6 13 32 75 59 29 23 14 8 12 17 23 16 11 12 22 52 38 45 22 21 10 10 6 32 39 18 12 14 20 20 4 20 24 LEVEL AND LIFE OF BALANCES Projected under TTEt-L Investment Program Prior to TT&L Investment Program $ Billions $ Billions 13 r 13 12 11 10 11 12 t 1 Balances at Federal Reserve Banks 10 9 9 i 8 8 7 7 SM 6 6 5 4 3 5 4 3 nnnnmnmnnn 2 1 0 O N D|J F M A M J 1976 J A S J A S O N D |J 1978 1977 1 0 F 1979 Projected A verage Life A verage Life A . N ine m onths ending S eptem b er 1977 ... 2 days B. Calendar year - M A M J 2 1976 .. 2 % days C. Calendar year -1 9 7 5 ..... 2% days 10 days - Assum es 100% o f deposit flo w is through noteoption depositaries 20 days - Assum es 50% o f deposit flo w is through noteoption depositaries * AssumH total amount of Traaaury opa»a<ng caah (FRB and T T H balaneaal la tha aama In 197S-1S7I aa tha companbla parioda In 197V-1I77 SSS8 Balances in TTEfL Accounts at Depositaries H Balances at Depositaries Participating under the Note Option SPREAD B E T W E E N THE R/P RATE AND THE FEDERAL FUNDS RATE JANUARY-OCTOBER 1977 Basis Points 80 Baals Points 80 70 70 60 60 60 50 40 40 30 30 20 20 10 10 0 R/P Rate R/P Rata 0 During the period January 13 through October 5,1977, the average weekly Federal Funds rate has ranged from 6 to 75 basis points above the R/P rate and has averaged 21 basis points above the R/P rate. Q U E S T IO N : Why w a s t h e RP r a t e ( r e p u r c h a s e a g r e e m e n t ) s e l e c t e d a s t h e r a t e o f i n t e r e s t t h a t d e p o s i t a r i e s w o u ld p a y f o r T reasu ry fu n d s? ANSWER: In l o o k i n g a t t h e v a r i o u s m oney m a rk et r a t e s t h a t m ig h t b e c o n s i d e r e d a p p r o p r i a t e f o r t h i s p u r p o s e , we s o u g h t t h a t r a t e w h ic h (1) m o s t c l o s e l y a p p r o x im a t e d t h e r a t e t h a t o t h e r w i s e w o u ld be a v a i l a b l e t o t h e T r e a s u r y i f i t m a in ta in e d i t s c a sh in F e d e r a l R eserv e Banks or d i r e c t l y e n t e r e d t h e m a r k e t b y i n v e s t i n g i n i t s own s e c u r i t i e s an d (2) w a s e q u i t a b l e t o d e p o s i t a r i e s i n t e r m s o f t h e v a lu e o f T rea su ry fu n d s t o th e d e p o s i t a r i e s . T h e RP r a t e on G o v ern m en t s e c u r i t i e s se em e d t o m e e t t h e s e c o n d i t i o n s b e t t e r th a n any o t h e r m oney m a rk et r a t e . In term s o f e q u it y t o d e p o s i t a r i e s , th e f o llo w in g f a c t o r s w ere c o n sid er e d : (1) The T r e a s u r y ' s i n v e s t m e n t in a d e p o sita r y 's o b lig a tio n s is e s s e n t ia lly a secured F e d e r a l f u n d s t r a n s a c t i o n a n d i s c l o s e l y a k i n t o a n RP tr a n sa c tio n . ( 2 ) T h e RP r a t e r e l a t e s t o t r a n s a c t i o n s in U . S . G overnm ent s e c u r i t i e s w h ile th e T r e a su r y a c c e p ts a m uch b r o a d e r c l a s s o f s e c u r i t i e s a s c o l l a t e r a l f o r i t s fu n d s. T h i s , i n e f f e c t , s h o u l d m a k e t h e RP r a t e m a r g i n a l l y fa v o r a b le to d e p o s it a r ie s . (3 ) The i n t e r e s t c o m p u ta t i o n d o e s n o t i n c l u d e com p ou n d in g w h ic h w o u ld , o f c o u r s e , t a k e p l a c e i n d a y - t o - d a y RP t r a n s a c t i o n s . A lso , th e d ate o f p a y m e n t o f i n t e r e s t ( t h e 2 5 t h o f t h e f o l l o w i n g month*) se rv e s to reduce th e e f f e c t iv e d a te . (4) S i n c e t h e am ount o f c r e d i t s t o a d e p o s i t a r y ' s t a x and l o a n a c c o u n t a re n o t added t o th e in t e r e s t - b e a r in g n o te u n t i l th e b u s in e s s day f o llo w in g th e day o f c r e d i t , th e e f f e c t i v e r a t e o f i n t e r e s t b e i n g p a id on T r e a s u r y fu n d s h e l d by th e d e p o s i t a r y i s l e s s th a n th e r a t e o f i n t e r e s t on th e n o te. DEPARTMENT OF TH E TREASURY W A S H IN G T O N . D .C. 20220 F is c a l As s i s t a n t S e c r e t a r y MEMORANDUM TO TREASURY TAX AND LOAN DEPO SITARIES The C o n g r e ss r e c e n t l y p a s s e d P u b li c in g th e T reasury to in v e s t i t s o p era tin g o f d e p o s it a r ie s m a in ta in in g T reasu ry ta x Law 9 5 - 1 4 7 a u t h o r i z cash in o b lig a tio n s and lo a n a c c o u n ts . The i n t e n t o f t h e la w i s t h a t t h e T r e a s u r y w i l l ea rn i n t e r e s t by th e in v e stm en t o f i t s o p e r a tin g b a la n c e s , and, a t t h e sam e t i m e , p a y f e e s t o f i n a n c i a l i n s t i t u t i o n s f o r c e r t a i n s e r v i c e s w h ic h h a v e n o t h e r e t o f o r e b e e n c o m p e n sa b le . T h e se s e r v i c e s a r e t h e h a n d lin g o f t a x and lo a n a c c o u n t s , a c c e p t a n c e o f t a x d e p o s i t s , and t h e i s s u a n c e o f s a v in g s b o n d s . F e e s f o r th e red em p tio n o f s a v in g s bon d s w i l l a l s o b e r e v is e d a t t h e tim e o f im p le m e n ta tio n o f t h e la w . The a t t a c h e d p a c k a g e o f m a t e r i a l c o n t a i n s t h e d e t a i l s o f a p ro p o sed r e v is i o n o f th e T rea su ry ta x and lo a n sy stem d e s i g n e d t o c a r r y o u t t h e i n t e n t o f t h e new la w . The p a c k ag e b y i t s s h e e r s i z e a lo n e m ust seem fo r m id a b le , b u t I b e l i e v e y o u w i l l f i n d t h a t w h i l e i t i n v o l v e s som e v e r y s ig n if ic a n t changes in co n cep t, th e p roced u ral changes are r e l a t i v e l y sim p le . M ost o f th e p a ck a g e i s s im p ly a r e s t a t e m ent o f t h e p r e s e n t p r o c e d u r e s . th e U n der t h e new p ro g ra m , t a x and lo a n s y s te m f o r th e th e T reasu ry w i l l c o n tin u e fo llo w in g purposes: to use 1. As a m eans o f m in im iz in g t h e im p a c t o f T r e a s u r y c a s h f lo w s on r e s e r v e s o f th e b a n k in g sy ste m and on th e m oney m a r k e ts , and . 2. As a p r im a r y m ethod o f c o lle c tin g c e rta in taxes. I t i s h o p e d t h a t u n d er t h e new p rogram , m o st e x i s t i n g d e p o s i t a r i e s w i l l c o n tin u e to be p a r t o f th e ta x d e p o s it sy stem . Each d e p o s i t a r y w i l l b e g iv e n a s e p a r a t e c h o ic e a s t o w h e th e r i t w ish es to h o ld p a rt o f th e T rea su ry ’s o p e r a tin g ca sh . T hose d e p o s i t a r i e s t h a t e l e c t to h o ld c a sh w i l l , in e f f e c t , b e b u y in g fu n d s from th e T reasury at a ra teo fin te r e s t b a s e d on cu r r en t o v e r n ig h t m oney m a rk et ra tes. - B a se d on t h e f o r e g o i n g , d e p o s ita r ie s as fo llo w s: 2 - th ere w ill be tw o c l a s s e s of 1. D e p o s i t a r i e s t h a t e l e c t t o h o ld T r e a su r y c a s h and fu n c tio n as p a r t o f th e T r e a su r y 's cash c o l l e c t i o n system . T hese d e p o s it a r ie s w i l l b e r e fe r r e d to a s "N ote O p tio n " d e p o s i t a r i e s . 2. D e p o s ita r ie s th a t e l e c t o n ly to p ro v id e th e s e r v ic e o f r e c e i v i n g t a x d e p o s i t s from t a x p a y e r s and r e m i t t in g such d e p o s it s d i r e c t l y to th e F e d e r a l R eserve B anks. T hese d e p o s it a r ie s w i l l b e r e fe r r e d to as " R e m itta n c e O p tion " d e p o s i t a r i e s . In c lu d e d in th e a tta c h e d package i s a r a th e r d e t a ile d d e s c r i p t i o n o f h ow som e o f t h e c h a n g e s , s u c h a s t h e com pu t a t i o n o f th e paym ent o f i n t e r e s t and f e e s , w i l l b e accom p lish e d . We h a v e a t t e m p t e d i n s o f a r a s p o s s i b l e t o h a v e t h e F e d e r a l R e se r v e Banks do t h e c o m p u ta tio n s , e f f e c t t h e c h a r g e s and c r e d i t s , and sen d t o e a c h d e p o s i t a r y s t a t e m e n t s sh o w in g and e x p l a in i n g t h e e n t r i e s m ade. The d e p o s i t a r y n e e d o n l y , t h e r e f o r e , t o r e v ie w th e F e d e r a l R e se r v e B a n k 's s ta t e m e n t . I f you e l e c t th e " R em itta n ce O p tio n ," t h e s i g n i f i c a n t c h a n g e from t h e p r e s e n t p r o c e d u r e i s t h a t a l l o f y o u r a d v i c e s o f c r e d i t w hen r e c e i v e d a t t h e F e d e r a l R e s e r v e Bank w i l l b e t h e b a s i s f o r im m ed ia te c a l l and c h a r g e t o y o u r r e s e r v e a c c o u n t o r t h e r e s e r v e a c c o u n t o f y o u r d e s i g n a t e d m em ber bank c o r r e sp o n d e n t. If changes 1. you e l e c t th e th a t you w i l l "N ote O p tio n ," en cou n ter are: th e m ost sig n ific a n t On t h e b u s i n e s s d a y a f t e r a c r e d i t t o t h e t a x a n d lo a n a c c o u n t , you w i l l c h a r g e t h a t a c c o u n t and c r e d i t a n o t e r e f l e c t i n g fu n d s p u r c h a s e d from t h e T reasury. In o th e r w ords, th e o n ly b a la n c e in your ta x and lo a n a c c o u n t a t th e c l o s e o f ea ch day i s th a t d a y 's c r e d it s to th e a cco u n t. - 3 - 2. ta x C a l l s w i l l b e made from t im e t o t im e b y t h e F e d e r a l R e s e r v e Banks f o r p aym en ts on t h e n o t e s e s s e n t i a l l y i n t h e sam e m anner a s c a l l s h a v e h e r e t o f o r e b e e n made a g a i n s t T r e a s u r y t a x an d l o a n b a l a n c e s . It is a n t i c i p a t e d t h a t t h e a v e r a g e am ount o f t h e n o t e s o u t s t a n d in g w i l l r e p r e s e n t t h e m ajor p a r t o f t h e T r e a su r y 's o p e r a tin g cash w ith a r e la t iv e l y fix e d b a la n c e b e in g m a in ta in e d in T rea su ry a c c o u n ts a t th e F e d e r a l R eserve B anks. W h ile t h e a c t u a l am ount o f n o t e s o u t s t a n d in g w i l l d ep en d upon t h e T r e a s u r y 's cash p o s itio n i t i s exp ected th a t th e average b a l a n c e o f n o t e s o u t s t a n d in g w i l l b e o f t h e m a g n itu d e o f $7 t o 8 b i l l i o n , b a s e d upon ou r e x p e r ie n c e in t h e p a s t 12 m o n th s . The c o m p a ra b le t a x and lo a n a c c o u n t a v e r a g e b a l a n c e i n t h e p a s t 12 m o n th s w as a p p r o x im a te ly $ 1 .5 b i l l i o n . We h o p e t h a t y o u w i l l and lo a n program . e le c t to p a r tic ip a te in th e new S h o u ld y o u h a v e q u e s t i o n s o r com m ents r e g a r d in g t h e r e v i s e d t a x an d l o a n s y s t e m , y o u may c o n t a c t p e r s o n n e l i n my o f f i c e a t t h e T r e a s u r y a s i n d i c a t e d i n t h e e n c l o s e d c o p y o f t h e p r o p o s e d r u l e s , o r y o u may c o n t a c t t h e F e d e r a l R e s e r v e Bank o f y o u r d i s t r i c t . In a se p a r a te l e t t e r , each F ed era l R e s e r v e Bank w i l l p r o v i d e y o u w i t h t h e t e l e p h o n e num bers o f th e p e o p le to c o n ta c t w ith in th e F e d e r a l R eserve Bank. D a v id M osso FRIDAY, DECEMBER 9, 1977 PART V DEPARTMENT OF THE TREASURY Fiscal Service TREASURY TAX A N D LO A N ACCOUNTS Proposed Rules PROPOSED RULES 62308 31 CFR [4810-35] [4810-40] P art 203 T r e a s u r y T ax and L o a n D e p o s it a r ie s DEPARTMENT OF THE TREASURY Fiscal Service [ 31 CFR Parts 203, 214, 317, 321 ] TREASURY TAX AND LOAN ACCOUNTS Proposed Rules AGENCY: Fiscal Servicc, D epartm ent of the Treasury. ACTION: Proposed rulemaking. SUMMARY: The Treasury D epartm ent is proposing to amend its regulations to implement the investment authority pro visions of Pub. L. 95-147 of October 28, 1977. The in tent of th a t law is to permit the Treasury to earn interest by the in vestment of its operating cash balances and a t the same time to pay fees for cer tain services which have not heretofore been compensable. The proposed fees to be paid for the handling of tax deposits and the issu ance and redemption of savings bonds are based upon a survey by Treasury of a sampling of depositaries. These fees may be adjusted in the future on the basis of a detailed study of the proce dures involved and the costs related thereto. The law also makes certain savings and loan associations and credit unions eligible to participate in the Treasury tax and loan account system. Previously, only incorporated banks and tru st com panies were eligible. DATES: W ritten comments on these proposed rules are invited but m ust be received on or before Janu ary 19, 1978. A public hearing will be held from 9 a.m. to 5 p.m. on January 12,1978. The Treas ury plans to issue final rules to be effec tive during the second quarter of calen dar year 1978. ADDRESSES: W ritten comments or in quiries should be submitted to the Fiscal Assistant Secretary, U.S. D epartm ent of the Treasury, Room 2112, Washington, D.C. 20220. The public hearing will be held in the Cash Room, Main Treasury Building, 15th and Pennsylvania Avenue NW„ Washington, D.C. FOR FURTHER INFORMATION CON TACT: Mr. John Kilcoyne, Assistant Fiscal Assistant Secretary (Banking), Office of the Secretary, D epartm ent of the Treasury, Washington, D.C. 20220, 202-566-2849. Additionally, financial institutions having questions as to op erating procedures may direct such questions to the Federal Reserve Bank or Branch serving the geographical area in which the institution is lo cated. SUPPLEMENTARY INFORMATION: The highlights of the revisions and amendments of this proposed rulem ak ing are as follows: ( F O R M E R L Y S PE C IA L D E P O S IT A R IE S O F P U B L IC MONEY) The highlights of the revisions in 31 CFR P a rt 203 are as follows: 1. Under the proposed revision, each Treasury tax and loan depositary selects (a) w hether it wishes to rem it immedi ately all deposits in its tax and loan ac count to the Treasury’s operating ac count a t the Federal Reserve Bank, or (b) whether it wishes to hold Treasury cash. Depositaries electing to remit funds only will be known as Remittance Option depositaries. Those electing to hold funds will be referred to as Note Option de positaries. 2. Note Option depositaries will issue to the Treasury interest-bearing notes representing funds withdrawn from their tax and loan account and, in effect, pur chased by the financial institution. The notes will be payable upon demand and will bear interest a t a rate representing a weighted average rate of repurchase agreements with a one-day m aturity in U.S. Government securities, which are transacted in a national money m arket by a sample of money center banks and non-bank prim ary dealers in Govern m ent securities. This rate will be pub lished in the Federal Reserve Bulletin in the near future. At the present time, regulations of the Board of Governors of the Federal Re serve System and the Federal Deposit I n surance Corporation define “deposits” as including promissory notes and other obligations of banks not specifically ex empted. The Federal Reserve Board and the Federal Deposit Insurance Corpora tion will in the n ear future consider pro posals to exempt notes issued by banks to the Treasury from the definition of deposits. The Treasury is including in this pub lication a synopsis of those parts of its M anual of Instructions and Procedures for Treasury Tax and Loan Depositaries containing inform ation helpful in pro viding an adequate understanding of the revised Treasury tax and loan account system. The complete m anual will be sent directly to each depositary by its Federal Reserve Bank, after the issuance of final rules. (The synopsis will not a p pear in the Code of Federal Regulations.) 31 C F R P a r t 214 D e p o s it a r ie s fo r F ederal T axes The highlights of the revisions in 31 CFR P a rt 214 are as follows: 1. Tax deposits accepted by institutions designated as depositaries for Federal taxes will be rem itted to the Treasury only be credit to a Treasury tax and loan account. 2. Provisions have been made for the paym ent of fees to depositaries to cover acceptance and processing of Federal tax deposits. The Treasury proposes to reim burse depositaries a t a per-item fee of 50i‘ per Federal tax deposit forwarded by the depositary and processed by an FEDERAL REGISTER, V O L . 42, NO. 2 3 7 — F R ID A Y , Internal Revenue Service Center. This fee will also cover the adm inistration of the Treasury tax and loan account. 3. The revisions reflect changes in pro cedures introduced during the past year under which Federal tax deposit forms are forwarded directly to the Intern al Revenue Service Centers ra th e r th an to the Federal Reserve Banks. The revisions do not change any of the procedures applicable to taxpayers m ak ing tax deposits with depositaries for Federal taxes or with Federal Reserve Banks. 31 CFR P a r t s 317 a n d 321 I s s u a n c e and R e d e m p t io n o f S a v in g s B onds Under current practice, Series E sav ings bonds are issued without charge to the Treasury by financial institutions, companies, state and local governments and other organizations in the private sector. Financial institutions also redeem savings bonds and notes, and receive a fee for each bond and note paid: a l though the sale of savings notes has been discontinued, outstanding notes are be ing redeemed. In view of the enactm ent of Pub. L. 95-147, the Treasury has agreed to pay fees to agents which are qualified to issue United States Savings Bonds, Series E (31 CFR P a rt 317), other th a n Federal Agencies which, for this purpose, include Government corporations and independ e n t establishments. Fees to qualified agents which redeem United States Sav ings Bonds and Notes (31 CFR P a rt 321) will also be increased. The fees to be paid for issuing bonds are intended to recompense agents for costs associated with obtaining and con trolling bond stock and inscribing and delivering bonds to purchasers, exclusive of postage which is paid by the Treasury. The fees are based generally on the alter native costs to the Treasury of obtaining or providing this issuing service. As the issuance of savings notes has been discontinued, the reference to De partm ent Circular, Public Debt Series No. 3-67 and all references to notes in 31 CFR 317..5 have been eliminated. P u b l ic H ea rin g A public hearing will be held in the Cash Room, Main Treasury Building, W ashington, D.C., a t 9 a.m. on J a n u ary 12, 1978, in order to provide inter ested persons an opportunity to make oral presentations concerning the pro posed amendments and other aspects of the proposed Treasury tax and loan ac count investment program. The hearing will be of the informal type. Nevertheless, any person who intends to comment orally at the informal public hearing should submit a written statem ent of such intent to the Fiscal Assistant Sec retary, U.S. D epartm ent of the Treasury, Room 2112, Washington, D.C. 20220, be fore Jan uary 6. The statem ent should also provide a concise outline of the topics to be covered, an estimate of the DE CEMBER 9 , 1977 62309 PROPOSED RULES (b) New designations.. (1) R eq uire m ents. (i) Eligible institutions. T he fol lowing classes of financial institutions are eligible to be designated as T reasury ta x an d lo an depositaries: (A) Every in co rpo rated b an k a n d tr u s t com pany in th e U nited S tates, P u erto Rico, th e Virgin Islands, th e P a n a m a C anal Zone an d every U nited S tates b ra n c h of a foreign banking co rp o ra tion authorized by th e S ta te in w hich it is located to tra n s a c t com m ercial b a n k ing business. (B) Every in stitu tio n insured by th e serving th e geographical are a in w hich PART 203— TREASURY TAX AND LOAN th e ta x an d loan depositary is located. F ed era l Savings an d L oan In su ra n ce DEPOSITARIES T ax a n d loan depositaries located in C orporation. (C) Every credit u nion insured by th e S u b p a r t A— G e n e ra l In fo rm a tio n P uerto Rico, th e Virgin Islands, and th e Sec. P a n a m a C an al Zone are included in the A d m in istrato r of th e N atio n al C redit 203.1 Scope of reg ulation s. U nion A dm inistration. Second F ederal Reserve D istrict. 203.2 D efinitions. (D) Savings an d loan, building an d (e) “F ed eral ta x deposit fo rm ” m eans 203.3 D esignition o f fin an cial in s titu tio n s a preinscribed form supplied to a ta x loan, hom estead associations a n d credit as T reasu ry ta x a n d lo an deposi payer by th e T re asu ry D ep a rtm en t to unions, created u n d e r th e laws of any taries. S tate, th e deposits or accounts of w hich 203.4 M axim um b alances. accom pany deposits of F ed eral taxes. 203.5 Sources o f deposit. (f) “F ederal ta x e s” m eans those F ed a re insured by a S ta te or agency thereof, 203.6 D irectives regard ing credits (depos e ra l taxes specified by th e S ecretary of or by a corpo ration c h a rte re d by a S tate its) to T reasu ry ta x a n d loan ac th e T reasu ry o r his delegate as eligible fo r th e sole purpose of insu rin g deposits coun ts. fo r p ay m en t th ro u g h th e procedure p re or accounts of such financial institutions, S u b p a r t B— C o n tra c t shall be eligible fo r designation as an d scribed in th is P a r t an d P a r t 214. (g) “Note O p tio n ” m eans th a t choice w hen th e S ecretary of th e T reasu ry d e 203.7 C o n tra c t o f deposit. available to depositaries u n d er w hich a term ines th e adequacy of such in surance 203.8 C o n tra c tu a l ob ligation s of deposi taries. ta x a n d loan depositary credits deposits arran g em en ts. (ii) O th er requirem ents. In o rder to to its T reasu ry ta x an d loan account, and S u b p a r t C— O p tio n s purchases fun ds from th e T reasu ry in m eet T reasu ry requirem ents for desig 203.9 G en eral re q u ire m en t. th e am o u n t of such deposits to be evi natio n, each financial in stitu tio n m ust 203.10 Note O ption. denced by open-ended in terest-b e arin g possess u n d er its c h a rte r a n d regulations 203.11 R e m itta n c e O ption. issued by its c h a rte rin g a u th o rity eith er notes. 203.12 E lection of o p tio n by previously a u (h) “R em ittan ce O ption” m eans th a t general or specific a u th o rity p erm ittin g th o riz e d depositaries. 203.13 C hange of options. choice available to ta x a n d lo an deposi th e m a in te n an c e of th e ta x an d loan a c taries u n d er w hich funds equivalent to coun t as a dem an d account. E ach fi S u b p a r t D— I n te r e s t a n d C o m p e n s a tio n th e am o u n t of deposits credited by a n an c ia l in stitu tio n m u st also possess th e 203.14 R a te o f in terest. au th o rity to pledge collateral to secure 203.15 C o m pensatio n fo r services rendered. depositary to its T reasu ry ta x an d loan account will be w ithdraw n by th e F ed T reasu ry ta x an d loan funds. S u b p a r t E— C ollateral S e c u rity e ra l Reserve B ank im m ediately upon r e (2) Application procedures. Any eligi 203.16 C ollateral security re q u ire m en ts. ceipt by th e F ederal Reserve B ank of th e ble fin an cial in stitu tio n seeking designa advices of cre d it supporting such d e tion as a T reasury ta x an d loan depos S u b p a r t F— M isc e lla n e o u s P ro v isio n s ita ry a n d thereby th e au th o rity to m a in posits. 203.17 T e rm in a tio n o f co n tract. (i) “R epo rting cycle” m eans th e tim e ta in a T reasury ta x an d loan accou nt 203.18 Im p le m e n tin g in stru ctio n s. period established for rep o rtin g an d shall file w ith th e F ederal Reserve B ank 203.19 Effective date. com putation purposes w hich m ay be of th e district a n application accom A u t h o r i t y : T h e provisions of th is revised composed of fo u r or five weekly periods, panied by a resolution of its board of d i P a r t 203 issued u n d e r Sec. 8, Act of Sept. 24, each week to be a seven-day period rectors auth o rizin g th e application (both 1917, C h a p te r 56, 40 S ta t. 291, as am ended ending a t th e close of business on on form s prescribed an d available on r e (31 U.S.C. 771); Sec. 6302(c), I n te r n a l R ev W ednesday of ea ch week. quest from the F ederal Reserve B a n k ) . en u e Code of 1954; a n d Sec. 1, 2, a n d 3, Pub. (j) “Special depo sitary ” m eans a de (3) Designation. E ach financial in s ti L. 95-147, 91 S ta t. 1227 (31 U.S.C. 1038); u n less otherw ise noted. positary designated u n d er th e provisions tu tio n satisfying th e eligibility req u ire of 31 CFR P a r t 203 p rior to th e effective m e n ts a n d th e application procedures Subpart A— General Information d a te of th is revision. As of th e effective will receive from th e F ederal Reserve § 2 0 3 .1 S c o p e o f r e g u la tio n s . d ate of this revision, a depositary is to B ank of th e d istric t notification of its The regulations in this P a rt govern the be designated u n d er th is P a r t as a T re a s specific designation as a T re asu ry ta x and loan depositary. A financial in s titu designation of Treasury tax and loan u ry ta x an d loan depositary. depositaries and their contract w ith the § 2 0 3 .3 D e s ig n a tio n o f f in a n c ia l i n s t i t u tion is n o t authorized to m a in ta in a T reasury ta x and loan account u n til it Treasury D epartm ent to m aintain and tio n s a s T r e a s u r y ta x a n d lo a n d e p o s i h as been designated as a T reasury tax administer separate accounts to be ta rie s. an d loan depositary by th e F ederal R e known as Treasury tax and loan ac (a) Previously authorized depositaries. counts in which they may credit funds Every special depositary which, a t th e serve B an k of th e district. representing payments for certain close of business o n ____________ , 1978 § 2 0 3 .4 M a x i m u m b a la n c e . United States obligations and payments (th e business day preceding th e effective E ach F ederal Reserve B ank m ay estab d a te of th is revision of th is P a r t ) , was lish a m axim um balance fo r th e ta x and of Federal taxes. authorized to m a in ta in a T reasu ry tax loan accou nt or note acco unt of an y de § 2 0 3 .2 D e fin itio n s . an d loan account is hereby redesignated pository of its district. as a T reasu ry ta x an d loan accou nt is As used in this P a rt: § 2 0 3 .5 S o u rc e s o f d e p o sit. (a) “Advices of credit” means thosehereby redesignated as a T re asu ry tax A ta x a n d loan depositary m ay cred it and loan depositary. E xisting co n tracts Treasury forms, which are supplied to u n d er th e fo rm er 31 C FR P a r t 203 be to its T reasury ta x an d loan account tax and loan depositaries to be used in tw een depositaries an d th e T reasury D e funds representing : supporting credits to Treasury tax and p a rtm e n t shall continue in effect w ith (a) P ay m en ts for U nited S tates S av loan accounts. ings Bonds issued by th e ta x an d loan out f u rth e r actio n u n til te rm in ated . (b) “Business d a y ” m ean s a business time required, and a telephone number where the person desiring to comment day of th e F ederal Reserve B ank of th e may be reached during the day of J a n district. (c) “Election of O ption fo rm ” m eans a uary 10. An agenda will be prepared thereafter and, if necessary, a maximum docum ent, p rep rin te d an d supplied by time will be allotted to each presentation. th e F ederal Reserve B ank of each dis The Treasury emphasizes th a t comments trict, on w hich a ta x an d loan depositary filed in writing will be given equal weight indicates th e option u n d er w hich i t will with oral statem ents made a t the public adm in ister its T reasury ta x an d loan acco unt a fte r th e effective d a te of th is hearing. 1. Accordingly, the Fiscal Service pro P a rt. (d) “F ederal Reserve B an k of th e dis poses to revise 31 CFR P a rt 203 (D epart m ent Circular No. 92) to read as follows: tr ic t” m eans th e F ederal Reserve B ank FEDERAL REGISTER, V O L . 42, NO. 2 3 7 — F R ID A Y , DECE MBER 9 , 1977 PROPOSED RULES 62310 depositary, in its issuing ag e n t capacity; (b) P ay m en ts fo r U nited S tates S av ings Bonds subscribed for th ro u g h th e ta x an d loan depositary on behalf of its custom ers, b u t w hich m ay be issued only by F ederal Reserve Banks an d th e U nited S tates T reasu ry D ep artm en t; (c) P ay m en ts of such F ederal taxes as th e S ecretary of th e T reasury m ay from tim e to tim e by regu lation a u th o r ize to be paid th ro u g h T reasu ry ta x an d loan accounts. § 2 0 3 .6 D ire ctiv es r e g a r d i n g c re d its ( d e p o s its ) to T r e a s u r y ta x a n d lo a n accounts. (a) P aym ents fo r U nited S tates S av ings Bonds shall be credited in accord ance w ith in stru ctio n s prescribed by th e F ederal Reserve B ank of th e district. (b) F ed eral ta x p aym en ts will be credited in accordance w ith P a r t 214 of th is C h a p te r an d any instru ctio n s issued p u rsu a n t to th a t P a rt. Subpart B— Contract § 2 0 3 .7 C o n tr a c t o f d e p o s it. A financial in stitu tio n w hich is desig n a te d as a T reasury ta x an d loan de positary en ters into a c o n tra c t of d e posit w ith th e T reasu ry D epartm en t. T he parties to this c o n tra c t a re th e T reasury, th ro u g h th e F ederal Reserve B anks as Fiscal Agents of th e U nited S tates, an d financial in stitu tio n s w hich have been designated u n d er procedures set fo rth in § 203.3. T h e term s of th e c o n tra c t include all of the provisions of th is P a rt. § 2 0 3 .8 C o n t r a c t u a l o b lig a tio n s o f th e d e p o s ita rie s . A T reasury tax a n d loan depositary shall: (a) A dm inister a T reasury ta x and loan acco unt in accordance w ith th is P a r t an d any am en d m e n ts or supple m ents th ereto, an d in structions issued p u rsu a n t th ereto, including th e M an ual of In stru ctio n s an d Procedures for T reasury T ax a n d L oan D epo sitaries; (b) Comply w ith th e requirem ents section 202 of Executive O rder 11246, entitled “E qual E m ploym ent O p p o rtu n ity ” as am ended by Executive O rder 11375, entitled “Equal E m ploym ent O p p o rtu n ity Clause,” w hich is incorporated h erein by reference, an d th e regulations issued th e re u n d e r a t 41 CFR C h a p te r 60, as am ended. T he S ecretary of th e T reasury m ay te rm in a te th e c o n tra ct w ith a ta x an d loan depositary for failure to comply w ith th e term s of th e c o n tra ct set fo rth in th is p ara g ra p h , rela tin g to equal em ploym ent opportunity, a fte r following th e procedures specified by th e U.S. D ep a rtm en t of L abor a t 41 CFR P a r t 60-30, as am ended, for noncom pli ance w ith equal em ploym ent o p portun ity requirem ents. day a f te r crediting deposits to its tax an d lo an account, p u rch a se funds from th e T reasu ry in th e am o u n t of such d e posits. T h e pu rchase will be evidenced by in terest-b e arin g notes. (b) O ther additions. (1) A ta x an d loan depositary m ay th e re a fte r be given th e option of ad d in g directly to its note th e am o u n ts of p aym en ts m ade by or th ro u g h it fo r allo tm en ts o n tenders an d subscriptions for U nited S ta te s se curities issued u n d er th e Second L iberty Bond Act, 40 S ta t. 268, as am ended. If perm itted, such p aym ents will be p ro vided for u n d er th e te rm s of th e T re a s u ry ’s offering circulars. T h e paym ents will be added to th e note on th e dates of settlem ent. (2) I n addition, o th e r funds from th e T re asu ry ’s operatin g cash m ay be offered from tim e to tim e to a Note O p tion depositary. T h e depositary m ay th e n decide w h eth er it wishes to p u r chase such ad ditio nal funds from th e T reasury. (c) W ithdraw als. T he am o u n t of a n o te will be payable on dem and w itho ut previous notice. Calls fo r p aym ents on a n o te will be by direction of th e S ecretary of the T reasu ry th ro u g h th e F ederal R e serve B anks. A depositary shall be r e quired to a rra n g e for th e pay m en t of calls on th e pay m en t dates specified in the calls by a charge to th e reserve a c count of a depositary or th e reserve a c count of a m em ber b ank correspondent. (d) In terest. A n o te shall b ea r in te re st which is payable m on th ly th ro u g h th e reserve accoun t of a depositary or th ro u g h th e reserve ac co u n t of a m em ber b an k correspondent. Specific details abou t the com pu tation of th e am o u n t of in te re st due, th e m eans of paym ent, p a y m e n t dates, F ederal Reserve B ank r e sponsibilities. an d o th e r related details are described in th e M an ual of In s tr u c tions a n d P rocedures for T reasu ry T a x an d Loan D epositaries. of § 2 0 3 .1 ! R e m i t ta n c e o p tio n . (a) W ithdraw als. F o r a depositary s e lecting th e R e m ittan c e Option, funds equivalent to th e am o u n t of deposits credited by a depositary to its T reasury ta x a n d loan acco unt will be w ith draw n by th e F ederal Reserve B ank upon r e ceipt by th e F ed eral Reserve B an k of th e advices of credit supporting such deposits. A depositary sh a ll be required to a rra n g e fo r th e p aym en t of w ith draw als by a n im m ediate charge to the reserve account of th e depositary or th e reserve accou nt of a m em ber b an k co r respondent. (b) R e m itta n ce O ption Classes. D e positaries electing this option will be subdivided in to Class 1 a n d Class 2 d e pending upon th e volume of deposits Subpart C— Options credited to th e ir ta x an d loan accounts § 2 0 3 .9 G e n e ra l r e q u ir e m e n t . d u ring th e previous c a le n d ar year. T he A T reasu ry ta x an d lo an depositary am o u n t differen tiatin g Class 1 from shall ad m in ister its T reasury ta x an d Class 2 is specified in th e M an ual of I n loan account u n d er eith er th e Note O p stru ctio n s an d Procedures for T reasury tion o r th e R em ittan ce Option. T ax an d L oan Depositaries. A deposi § 2 0 3 .1 0 N ote o p t io n . ta ry sh all be subject to th e provisions (a) Deposits. A depositary electing th eapplicable to th e class into w hich it is Note O ption will, as of th e first business placed. FEDERAL REGISTER, V O L . 42, NO. 2 3 7 — FR ID A Y , (1) R e m itta n c e Option— Class 1 re quirem ents. (i) Delivery. A depositary ad m inistering its ta x an d loan accou nt u n d er th e R em ittan ce O ption—Class 1 m u st establish procedures to ensure th e delivery of its advices of cre d it a t th e F ederal Reserve B an k of th e d istrict prior to th e F ederal Reserve B a n k ’s c u t off tim e for processing such credits th e n ex t business day a f te r th e d a te of credit. If a depositary whose volume of credits is hig h er th a n th e am o u n t speci fied in th e M anual of In stru ctio n s an d Procedures for T reasu ry T ax a n d L oan D epositaries ca n n o t a rra n g e to forw ard its advices of cre d it so th a t they re g u larly arrive a t th e F ed eral Reserve B ank prior to th e designated cutoff hour, it should n o t elect th e R e m ittan c e O ption bu t should select th e Note Option. (ii) Late fee. If a n advice of credit does n o t arrive a t th e F ederal Reserve B ank before th e designated cutoff h o u r for r e ceipt of such advices, a la te fee in th e form of in te re st a t th e r a te specified a t § 203.14 of th is P a r t will be assessed for failure to perform u n d er th e te rm s of th e option. Such la te fee assessm ents will be effected on a m onthly basis th ro u g h a d epositary’s reserve accou nt or th e r e serve accou nt of a m em ber ban k co rre spondent. Specific details an d procedures are included in th e M anu al of In s tr u c tions an d Procedures for T reasu ry T ax an d L oan D epositaries. (2) R em itta n ce O ption—Class 2 re quirem ents. (i) Delivery. A depositary adm inisterin g its ta x an d loan account u n d er th e R em ittan ce O ption—Class 2 should fo rw ard its advices of cre d it to th e F ed eral Reserve B ank of th e district via th e m ost expeditious m ean s available. (ii) Analysis credit. All ta x a n d loan balances w hich a re in excess of a c u rre n t day ’s credits will be subject to an a n a ly sis credit, as explained in § 203.15 of this P a r t an d th e M anu al of In stru ctio n s and Procedures for T reasu ry T ax a n d L oan Depositaries. (iii) Excessive flow. A depositary m ay continue as a Class 2 depositary if th e r a te of flow of deposits it accepts does n o t exceed th e am o u n t specified for th is purpose in th e M an ual of In stru ctio n s an d Procedures for T reasu ry T ax an d L oan D epositaries. If a depo sitary’s flow exceeds t h a t am ount, a depositary shall adm in ister its ta x a n d loan account u n d er th e provisions of th e R em ittan ce O ption—Class 1, or th e Note Option. Specific details an d procedures co ncern ing th e excessive flow of deposits are d e scribed in th e M anual of In stru ctio n s an d P rocedures for T reasu ry T ax an d Loan Depositaries. § 2 0 3 .1 2 E le c tio n o f o p t io n b y v iously a u th o r i z e d d e p o s ita r ie s . p re (a) General. A depositary w hich was authorized as of th e close of business on _ 1978 (th e business day p re ceding th e effective d a te of th is revision of th is P a rt) to m a in ta in a ta x an d loan acco unt an d w hich wishes to ad m in ister a ta x an d loan account u n d er th e Note O ption or th e R em ittan ce O ption shall file w ith th e F ederal Reserve B an k of th e D istrict a n Election of O ption form DE CE MBER 9 , 1977 62311 PROPOSED RULES signed by a n official au tho rized to a c t on behalf of th e depositary. T h e depositary will receive from th e F ederal Reserve B ank notice as to th e effective d a te of th a t election. (b) Depositaries n o t filing an Election o f O ption form , y e t accepting ta x de posits. A depositary authorized prior to ------------------ , 1978 (th e effective d a te of th is revision of th is P a r t) to ad m in ister a T reasury ta x an d loan account, w hich h a s n o t filed a n E lection of O ption form by t h a t d ate, or, having filed t h a t form , h a s n o t received fro m th e F ed eral R e serve B ank p rio r to t h a t d ate notice as to th e effective d a te of t h a t elec tio n : (1) U n t i l ------------------- 1978 (th e ef fective d a te of th is revision of th is P a r t ) , shall continue to ad m in ister a ta x an d loan acco unt u n d e r its a u th o riza tio n ef fective p rio r to t h a t d a t e ; a n d (2) O n an d a f t e r ____________ , 1978 (th e effective d a te of th is revision of this P a r t ) , if it continues to cre d it deposits to th e T reasu ry ta x an d lo a n account, will, by en terin g such credits, be presum ed to have assented to all te rm s an d provisions of th is P a r t an d to be ad m inistering th e ta x an d loan acco unt u n d er th e R e m it ta n c e Option. (c) In a ctive depositaries. T h e Secre ta ry of th e T re asu ry will revoke th e a u th o rity of a depositary, authorized prior t o ------------------ - 1978 (th e effective d ate of th is revision of th is P a rt) to ad m in is te r a T re asu ry ta x an d loan account, w hich h a s n o t filed a n Election of O ption form a n d whose ta x a n d lo an account h as h a d no credits fo r six m o n th s a fte r ------------------ , 1978 (th e effective d a te of th is revision of th is P a r t ) . T h erea fter, to accept deposits fo r cre d it to a T reasu ry ta x an d loan account, th e fin an cial in stitu tio n sh all seek new designation in accordance w ith § 203.3. § 2 0 3 .1 3 C h a n g e o f o p tio n s . A depositary is su bject to th e provi sions of th e option it h a s selected u n til such tim e as it provides notice to th e F ederal Reserve B ank requesting a change in option a n d receives form al notificatio n from th e F ed eral Reserve B ank of th e effective d ate of th e change of option. Specific details regarding changes in option a re included in th e M anu al of In stru ctio n s a n d Procedures fo r T reasu ry T ax a n d L oan Depositaries. Subpart D— Interest and Compensation § 2 0 3 .1 4 R a to o f in te re s t. T h e r a te of in te re st to be used in co n nection w ith th e N ote O ption a n d the R e m ittan c e O ption will be a weighted average r a te of rep u rch a se agreem ents w ith a one-d ay m a tu rity in U.S. G overn m e n t securities, w hich a re tra n sa c te d in a n a tio n a l m oney m a rk e t by a sam ple of m oney c e n te r banks a n d n o n -b an k p rim a ry dealers in G o vernm ent securi ties. T his r a te will be published m onthly in th e F ed eral Reserve B ulletin. § 2 0 3 . 1 5 C o m p e n s a t i o n f o r serv ice s r e n d e re d . (a) General. I n lieu of com pensating ta x an d loan depositaries sep arately for th e servicing of th e ta x a n d loan account, th e T re asu ry h a s considered t h a t service to g e th er w ith th e service of accepting F ederal ta x deposits in establishing th e p er-ite m fee fo r each F ederal ta x d e posit, as prescribed a t section 214.6(b) of th is C hapter. (b) R e m itta n c e O ption—Class 2 depos itaries. Fees payable to R e m ittan c e O p tion —Class 2 depositaries fo r F ed eral ta x deposits a n d for servicing th e ta x an d loan acco un t will be reduced by a n a n a l ysis credit rep resen tin g th e value of th e balances in ta x a n d lo a n accounts in excess of a c u rre n t d a y ’s credits. Specific details reg ard in g th e d eterm in a tio n of th e am o u n t of com pensation due a re dis cussed in th e M a n u al of In stru c tio n s an d Procedures for T reasu ry T ax an d Loan Depositaries. Subpart E— Collateral Security § 2 0 3 .1 6 C o lla te ra l m e n ts . s e c u rity re q u ire c o nstruction an d Development, th e I n te r A m erican D evelopm ent B ank or th e A sian D evelopm ent B ank: At face value. (3) O bligations p artially insured or g u ara n tee d by any U.S. G overnm ent agency: A t a value equal to th e am o u n t of th e insurance or guaranty. (4) Notes rep resen ting loans to s tu dents in colleges or vocational schools w hich are insured e ith er by F ederal in su ran ce or by a S ta te agency or private no n p ro fit in stitu tio n or organization a d m in istering a stu d e n t loan insurance pro g ram in accordance w ith a form al agreem ent w ith th e Com m issioner of E d u catio n u n d er th e provisions of th e H igh er E ducation Act of 1965 or th e N a tio n al V ocational S tu d e n t L oan I n s u r ance A ct of 1965: A t face value. (5) O bligations issued by S ta te s of th e U nited S ta te s : At 90 p ercen t of face value. (6) O bligations of P u erto Rico: A t 90 p ercen t of face value. (7) O bligations of counties, cities, an d o th e r governm ental au th o rities a n d in stru m e n talities w hich a re n o t in d efau lt as to paym ents on principal or in terest: A t 80 p ercen t of face value. (8) O bligations of dom estic co rpo ra tions w hich m ay be purchased by banks as investm ent securities u n d er th e r e quirem ents of F ederal b an k regulatory ag en cies: At 80 p erc en t of face value. (9) C om m ercial and ag ricu ltu ral p ap e r an d b an k e rs’ acceptances approved by th e F ed eral Reserve B ank of th e d is tric t an d having a m a tu rity a t th e tim e of pledge of n o t to exceed one y ea r: A t 90 percent of face value. (e) A ssign m en t of securities. A ta x an d loan depositary t h a t pledges secu rities w hich are n o t negotiable w ithou t its en dorsem ent or assig nm ent m ay, in lieu of placing its unqualified endorse m e n t on each security, fu rn ish a n ap p ro p ria te resolution an d irrevocable power of atto rn e y autho rizing th e Federal R e serve B ank to assign the securities. T he resolution an d power of atto rn e y shall conform to such term s an d conditions as th e F ed eral Reserve B an k sh a ll prescribe. (a) Mote Option. P rio r to crediting d e posits to its T re asu ry ta x an d lo an a c count, a N ote O ptio n depositary shall pledge co llateral security ip accordance w ith th e req uirem ents an d valuations of p a ra g ra p h (d) of th is section, to cover th e full am o u n t of th e n o te balan ce an d th e closing balan ce in its T reasu ry ta x a n d lo an ac co u n t in excess of recognized in su ran ce coverage. (b) R e m itta n c e Option. P rio r to crediting deposits to its T reasu ry ta x an d lo a n account, a R e m ittan c e O ption d e po sitary sh a ll pledge co llateral security in accordance w ith th e requ irem ents an d valuations of p a ra g ra p h (d) of th is sec tion in a n am o u n t w h i.h is sufficient to cover th e m axim um b alance in th e tax an d loan accou nt a t th e close of business each day, less recognized in su ran ce cov erage. (c) Deposit o f securities. Collateral security required u n d er p a ra g ra p h s (a) a n d (b) of th is section shall be deposited w ith th e F ed eral Reserve B ank of th e Subpart F— Miscellaneous Provisions district, o r w ith a custo dian o r cu sto d ian s w ith in th e U nited S ta te s desig § 2 0 3 .1 7 T e r m i n a t i o n o f c o n tr a c t. n a te d by th e F ed eral Reserve B ank, u n (a) T erm ina tio n by the Treasury. T he d er te rm s a n d conditions prescribed by S ecretary of th e T reasury m ay te rm in ate th e F ed eral Reserve Bank. (d) Acceptable securities. Unless o th th e c o n tra c t of a T reasu ry ta x a n d loan erwise specified by th e S ecretary of th e depositary a t any tim e upon notice to T reasury, co llateral security pledged t h a t effect to th a t depositary. u n d er th is section m ay be tra n sfe ra b le (b) T erm ina tio n by the ta x and loan securities of an y of th e following classes: depositary. A ta x an d loan depositary (1) O bligations issued or fully insured m ay te rm in a te th e c o n tra c t by su b m it or g u ara n tee d by th e U nited S tates or tin g a notice in w riting to th e F ederal any U.S. G overnm ent agency, a n d obli Reserve B ank of th e d istrict 30 days be gations of G overnm ent-sponsored corpo fore th e d a te of th e intended te rm in a ratio n s w hich u n d er specific s ta tu te m ay tion. be accepted as security fo r public funds: § 2 0 3 .1 8 I m p l e m e n t i n g in s tr u c tio n s . At face value. F ederal Reserve B anks are authorized (2) O bligations issued or fully g u a ra n teed by the In te rn a tio n a l B ank fo r R e to issue in stru ctio ns consistent w ith this FEDERAL REGISTER, V O L . 4 2 , NO. 2 3 7 — F R ID A Y , DE CE MBER 9 , 1977 62312 PROPOSED RULES P a r t to im plem ent the req uirem en ts of th is P a r t w hich shall be binding upon ta x a n d loan depositaries. § 2 0 3 .1 9 REPORTING CYCLES - TTfiL INVESTMENT PROGRAM Reporting Cycle & IMonth # ■ E ffe c tiv e d a te . This revision of this P a r t is effective o n ____________ , 1978. S y n o p s i s o p P e r t i n e n t I n f o r m a t i o n as C o n t a in e d i n t h e M anua l o f I n s t r u c t io n s and P rocedu res fo r T reasury T ax and L o a n A c c o u n t D e p o s it a r ie s 1. In te r e s t on Notes. T h e a m o u n t of in te re st d u e on th e notes will b e c o m p u te d by applying to th e average a m o u n t of th e n o te for each 7-day period of a re p o rtin g cycle th e average ra te of in te re st (d e te rm in e d in accordance w ith Section 203.14 of 31 C FR P a rt 203) for t h a t 7-day period. I n te r e s t due will be c o m p u te d a t sim ple in te r e s t o n th e basis of th e b a n k in te re st m e th o d a n d will be payable on th e 25th of e ac h m o n th fo r th e previous re p o rtin g cycle. Federal Reserve B anks will c o m pu te th e a m o u n t of in te re s t a n d will charge th e a m o u n t d u e to th e dep o sitary ’s reserve ac c o u n t or th e reserve a cc o u n t of a m em ber b a n k correspondent. W hen th e average daily closing b alan ce of a n o te d u rin g th e week is $25,000 or less, th e first $5,000 shall be exem pt fro m in te re st. 2. A m o u n t differentiatin g Class 1 and Class 2 R e m itta n c e O ption Depositaries. D epositaries w h ich d u rin g th e p rio r c a le n d a r year processed credits of $1.5 m illion or m ore to th e ir tax a n d loan a cc o u n ts will be p laced in R e m itta n c e O ptio n—Class 1. Tax a n d loan dep ositaries w hich d u rin g th e prior c ale n d ar year processed credits to th e ir tax and, loan a cc o u n ts of less t h a n $1.5 m illion will be placed in R e m itta n c e O ptio n—Class 2. I f a t a n y tim e d u rin g th e year a R e m itta n c e O ptio n—Class 2 depositary generates a flow of deposits to its ta x a n d loan a cc o u n t d u rin g th e preceding th re e re p o rtin g cycles exceed ing $3 m illion on a n a n n u a liz e d basis, th e d e p o sitary will a u to m a tic a lly be tra n s fe rre d to R e m itta n c e O p tion s—Class 1, or, If it so elects, to th e Note O ption. 3. C om p ensation o f R e m itta n c e O ption— Class 2 D evositaries. T he a m o u n t of co m p ensation d u e Class 2 depositaries based u D o n th e arm lication of t h e u n ifo rm fee of 50i* to th e n u m b e r of F e d eral tax depo sits nroce^sed will be red uced by a n analysis c re d it re p re se n tin g th e value of t h e b a la n c e in th e den ositarv’s tax a n d lo an a cc o u n t in excess of a c u r r e n t dav's credits. T h e a m o u n t of th e analysis c red it will be d e te rm in e d by annlyin<r th e ra te of in te re st soecified in Section 203.14 of 31 C FR P a rt 203 for th e applicable neriod of tim e to th e average a m o u n t in tra n s it, com m encing as of th e first b usiness day a fte r c red it to th e tax a n d loan accou nt. 4. Chanae o f Options. A deno-ntarv m av change from one on tion to a n o th e r a fte r due n o tic e to th e Federal Reserve B an k of th e d istric t. T h e changes will be effected as of th e b e g in n in g of a s u b se q u e n t re p o rtin g cycle. T h e deDOSitarv will be su b je c t to th e provisions of th e existing o p tio n u n t il i t receives f o rm il no tificatio n fro m th e Federal Reserve B an k t h a t th e ch ange h a s been effected. 5. Classification o f Depositaries. T h e classification of depositaries selecting th e Note O ption in to th e Classes 'A', ‘B’, a n d ‘C’ will c o n tin u e as h a s been th e p ractice for tax a n d lo an depo sitaries p rio r to th e in c e p tio n of t h e tax a n d lo an in v e s tm e n t program . 6. R eportin g Cycles. T he follow ing ta b le reflects th e soecific d a te s of th e re p o rtin g cycles in 1978 a n d 1979. Year 1978 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1979 First Week _ Second Week 214.8 214.9 1/12-18 2/9-15 3/9-15 4/13-19 5/11-17 6/8-14 7/13-19 8/10-16 9/14-20 10/12-18 11/9-15 12/14-20 1/19-25 2/16-22 3/16-22 4/20-26 5/18-24 6/15-21 7/20-26 8/17-23 9/21-27 10/19-25 11/16-22 12/21-27 1/26-2/1 2/23-3/1 3/30-4/5 3/23-29 4/27-5/3 5/25-31 6/22-28 6/29-7/5 7/27-8/2 8/24-30 8/31-9/6 9/28-10/4 10/26-11/1 11/23-29 11/30-12/6 12/28-1/3 - 1/4-10 2/1-7 3/1-7 4/5-11 5/3-9 6/7-13 7/5-11 8/2-8 9/6-12 10/4-10 11/1-7 12/6-12 1/11-17 2/8-14 3/8-14 4/12-18 5/10-16 6/14-20 7/12-18 8/9-15 9/13-19 10/11-17 11/8-14 12/13-19 1/18-24 2/15-21 3/15-21 4/19-25 5/17-23 6/21-27 7/19-25 8/16-22 9/20-26 10/18-24 11/15-21 12/20-26 1/25-31 2/22-28 3/22-28 4/26-5/2 5/24-30 6/28-7/4 7/26-8/1 8/23-29 9/27-10/3 10/25-31 11/22-28 12/27-1/2 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Scope of regulations. D efinitions. D esignation. C o n tra c t of deposit. T e rm in a tio n of c o n tra c t of deposit. D eposits of Federal taxes w ith d e positaries. Deposits of Federal taxes w ith Federal Reserve Banks. A dditional in stru ctio n s. Effective date. A u t h o r i t y : T he provisions of th is revised P a rt 214 issued u n d e r Sec. 10, 56 S ta t. 356. as am en d ed (12 U.S.C. 265); Sec. 15, 38 S ta t. 265 (12 U.S.C. 391); Sec. 8, 40 S ta t. 291, as am ended (31 U.S.C. 771); Sec. 6302(c), T nternal R evenue Code of 1954, as am ended; Sec. 2 a n d 3, Pub . L. 95-147, 91 S ta t. 1227 (31 U.S.C. 1038). § 214.1 S c o p e o f r e g u la tio n s . T he regu lations in th is revision of this P a r t govern th e designation of fin a n cial in stitu tio n s as depositaries fo r F e d e ral taxes a n d th e h a n d lin g of deposits of F ederal taxes by such depositaries an d by F ederal Reserve Banks. § 2 14.2 D efinitions. As used in this P a r t : (a) “D epositary” m eans a depositary for F ederal taxes. (b) “F ederal Reserve B ank of th e dis tr ic t” m ean s th e F ederal Reserve B ank serving th e geographical a re a in w hich th e financial in stitu tio n is located. F or FEDERAL REGISTER, V O L . Fifth Week 1/5-11 2/2-8 3/2-8 4/6-12 5/4-10 6/1-7 7/6-12 8/3-9 9/7-13 10/5-11 11/2-8 12/7-13 TAXES 214.7 Fourth Week Jan. Feb. Mar. Apr. May - June - July - Aug. - Sept. - Oct. - Nov. - Dec. - 2. Accordingly, th e Fiscal Service p ro poses to revise 31 CFR P a r t 214 (D e p art m en t C ircular No. 1079) to rea d as fol lows: PART 214— DEPOSITARIES FOR FEDERAL Sec. 214.1 214.2 214.3 214.4 214.5 214.6 Third Week 42, NO. 2 3 7 — FR ID A Y , 3/29-4/4 5/31-6/6 8/30-9/5 11/29-12/5 this purpose, depositaries located in P uerto Rico, th e Virgin Islands an d th e P a n a m a C anal Zone are included in th e Second F ed eral Reserve D istrict. (c) “F ederal ta x deposit fo rm ” m eans a preinscribed form supplied to a ta x payer by th e T reasury D e p a rtm e n t to accom pany deposits of F ederal taxes m ade u n d er th e procedure prescribed by th is P a rt. (d) "F ederal taxes” m eans th ose F e d eral taxes specified by th e S ecretary of th e T reasury or his delegate as eligible for p aym ent th ro u g h th e p ro cedure prescribed by th is P a rt. (e) “Im m ediate credit item ” m eans a check or o th er p ay m en t in stru m e n t for w hich im m ediate credit is given in a c cordance w ith th e check collection schedule of the receiving F ederal Reserve B ank or B ran c h of th e district. (f) “Qualified depositary for F ederal ta x e s” m eans a previously designated depositary for F ed eral taxes th a t a t th e close of b u s in e s s ____________ , 1978 (day preceding th e effective d ate of th is r e vision) was qualified by th e F ederal R e serve B ank of th e d istrict u n d er th e p ro visions of th e fo rm er P a r t 214. § 214.3 D e s i g n a ti o n . (a) Previously designated depositaries. (1) T h e designation of each qualified depositary for F ederal taxes w hich a t th e close of business on ------------------ 1978 (th e day preceding th e effective d ate of th is revision) w as authorized to m a in ta in a T reasury tax an d loan accou nt u n der th e provisions of th e fo rm er P a r t 203 of th is C h a p te r is hereby extended. E xisting co n tra cts betw een such deposi DECE MBER 9 , 1977 62313 PROPOSED RULES taries a n d th e T reasu ry D ep a rtm en t (b) B y Depositaries. A depositary m ayw arded by th e depositary an d processed shall continue in effect w ith o u t f u rth e r te rm in ate its c o n tra c t by subm ittin g a by th e In te rn a l Revenue Service Center. action u n til te rm in ated . notice, in w riting, to th e F ed eral Reserve T his fee covers th e a d m in istra tio n of th e (b) New designations. (1) Eligibility. B ank of th e d istrict 30 days before th e T reasu ry ta x an d loan accoun t as well as th e h a n d lin g of F ederal ta x deposits. E ach financial in stitu tio n designated as d ate of the intended term in atio n . a T reasury ta x an d loan depositary § 2 1 4 .6 D e p o sits o f F e d e r a l t a x e s w ith Fees payable m ay be reduced by th e analysis cred its described in § 203.15 of u n d e r th e provisions of th e c u rre n t re d e p o s ita rie s . th is C hap ter. vision of P a r t 203 of th is C h a p te r is eli (a) Deposits w ith depositaries. A de gible fo r designation as a depositary for positary shall, th ro u g h an y of its offices § 2 1 4 .7 D e p o sits o f F e d e r a l ta x e s w ith F ederal taxes. F e d e ral R eserve B anks. (2) Application fo r designation. Any t h a t accept d epo sits: A F ederal Reserve B ank shall, th ro u g h (1) Accept from a ta x p ay e r cash, a eligible financial in stitu tio n seeking des an y of its offices: postal m oney o rd er d raw n to th e order ig n atio n as a depositary fo r F ederal taxes (a) Accept a ta x deposit d irectly from sh all file w ith th e F ederal Reserve B ank of th e depositary, or a check or d r a f t a ta x p a y e r w hen such ta x deposit i s : of th e d istric t a n application on form s draw n on an d to th e o rder of th e deposi (1) M ailed or delivered by a ta x p ay e r available from th e F ederal Reserve B ank. tary , covering a n am o u n t to be deposited Any financial in stitu tio n n o t already des as F ederal taxes w hen accom panied by located w ithin th a t B a n k ’s te rrito ria l ignated as a T reau sry ta x a n d loan de a F ederal ta x deposit fo rm on w hich th e boundaries; an d a m o u n t of th e deposit h a s been properly (2) I n th e fo rm of cash, a check draw n positary m ay m ake sim ultaneous ap p li entered in th e space provided. A de cation w ith th e F ed eral Reserve B ank p o sitary m ay a t its discretion accept a to th e o rder of t h a t B ank a n d considered to be a n im m ediate cred it item by th a t fo r such designation. check d raw n on a n o th e r financial in s ti B ank, a postal m oney o rder d raw n to th e (3) Designations. E ac h financial in s ti tution , b u t i t does so purely on a volun o rd er of th a t Bank, or T reasu ry bills, as tu tio n satisfying th e eligibility requ ire ta ry basis an d absorbs fo r its own a c authorized in P a r t 309 of th is C hapter, m e n ts an d th e application procedures c o unt an y float involved. covering an am o u n t to be deposited as will receive from th e F ederal Reserve (2) W hen requested to do so by a F ederal taxes; and B ank of th e d istrict notification of its ta x p ay e r who m akes a deposit of F ed (3 ) Accom panied by a F ederal ta x de specific designation as a depositary for eral taxes in cash over th e counter, issue posit form on w hich th e am o u n t of th e F ed eral taxes. a co u n ter receipt. ta x deposit h a s been properly entered in § 2 1 4 . 4 C o n tr a c t o f d e p o s it. (3) Regardless of th e form of paym ent, th e space provided. (b) W hen requested to do so by a ta x T he designation of a depositary u n d er in every in stan ce place in th e space p ro this P a r t creates a c o n tra c t betw een the vided on th e face of ea ch F ed eral ta x d e payer who m akes a deposit of F ederal depositary an d th e T reasu ry D ep a rtm en t posit form a sta m p im pression reflecting taxes in cash over th e counter, issue a th ro u g h th e F ed eral Reserve B ank as F is th e d ate on w hich th e ta x deposit was co u n ter receipt. (c) W hen a deposit of F ederal taxes cal A gent of th e U nited S tates. T he received by th e depositary, by reference to w hich th e tim eliness of th e ta x p a y is m ade in accordance w ith th e req u ire term s of th is c o n tra c t include: m e n t will be determ ined, an d th e nam e m en ts of p a ra g ra p h (a) of th is section, (a) All of th e provisions of th is P a r t an d location of th e depositary. a B ank shall place in th e space provided except § 214.7. (4) C redit on th e d ate of receipt all on th e face of each F ed eral ta x deposit (b) Any in stru ctio n s issued p u rsu a n t deposits of F ed eral taxes to th e T reasu ry form accepted directly from a taxpayer, to th is P a r t by th e T reasu ry or by F ed ta x a n d loan acco unt a n d ad m in ister a sta m p im pression reflecting th e nam e e ra l Reserve B anks as Fiscal A gents of t h a t acco unt p u rsu a n t to th e provisions of th e B ank a n d th e d a te on w hich th e the U nited S tates. ta x deposit was received by th e B ank of P a r t 203 of th is C h ap ter. (c) T h e provisions prescribed in sec (5) F o rw ard each day to th e I n te rn a l so t h a t th e tim eliness of th e F ederal tion 202 of Executive O rd er 11246, e n R evenue Service C en ter servicing th e ta x p ay m en t can be determ ined. How title d “E qual E m ploym ent O p p o rtu n ity ” geographical a re a in w hich th e deposi ever, if such a deposit is m ailed to a (30 F R 12319) as am ended by Executive ta ry is located, th e F ederal ta x deposit Bank, i t shall be subject to th e “Timely O rd er 11375; th e requirem en ts of sec form s for all ta x deposits received t h a t m a ilin g tre a te d as tim ely filing and tion 503 of th e R eh ab ilitatio n Act of day. E ach subm ission of deposit in fo rm a paying ” clause of section 7502 of th e I n 1973, 29 U.S.C. § 793, an d th e regulations tion shall be on th e prescribed T reasury te rn a l R evenue Code (26 U.S.C. 7502). issued th e re u n d e r a t 20 C FR P a r t 741, form a n d in th e aggregate am o u n t of (d) W hen a deposit of F ederal taxes w hich are in co rp o rated h erein by re fe r th e F ederal ta x deposit form s. is n o t in accordance w ith th e req u ire ence, requiring G overnm ent co ntracto rs (6) E stablish, p rio r to tra n s m itta l to m en ts governing form of p ay m en t set to tak e affirm ative actio n to employ th e In te rn a l R evenue Service Center, an fo rth in p a ra g ra p h (a) of this section, a qualified h an d ica p p ed individuals, ex adequ ate record of all deposits of F ed B ank shall place in th e space provided cept th a t depositaries w hich u n d er th is eral taxes so t h a t it will be able to id en on th e face of each F ederal ta x deposit P a r t a n d P a r t 203 receive on an a n n u a l tify deposits in th e event ta x deposit form a sta m p im pression reflecting th e basis fee naym ents of less th a n $2,500 are form s are lost in sh ip m en t between it nam e of th e B ank an d th e d a te on exem pt from com pliance w ith these reg an d th e In te rn a l Revenue Service C en w hich th e proceeds of th e accom panying u latio ns; a n d req uirem ents of section 503 ter. F o r th is purpose, a record m u st be D a y m e n t in stru m e n t are collected by th e of the V eterans E m ploym ent an d R e ad m ad e of each deposit show ing as a m in i B ank. T his d a te shall be used fo r th e ju stm e n t Act of 1972, 38 U.S.C. 5 2012, m um th e d a te of deposit, th e ta x p a y e r’s purpose of determ ining th e tim eliness Executive O rder 11701, an d th e reg u la identifying num ber, a n d th e am o u n t of of th e F ederal ta x paym ent. tions issued th e re u n d e r a t 41 CFR S u b th e deposit. T h e d ep ositary’s copies of § 2 1 4 .8 A d d itio n a l in s tr u c tio n s . p a r t 1-12.11, w hich are incorporated tr a n s m itta l le tte rs m ay be used to p ro F ederal Reserve B anks are authorized h ere in by reference, fo r th e prom otion of vide th e necessary in fo rm atio n if in d i em ploym ent of disabled an d V ietnam vidual deposits are listed sep arately to issue in stru ctio n s co nsistent w ith these e ra veterans, except th a t depositaries show ing date, ta x p a y e r’s identifying regulations fo r carryin g o u t th e req u ire m en ts of th is P art. w hich u n d e r this P a r t a n d P a r t 203 re num ber, a n d am ount. ceive on a n a n n u a l basis fee n ay m en ts of (7) N ot accept com pensation from § 2 1 4 . 9 E ffe c tiv e d a le . less th a n $10,000 are exem pt from com tax p ay ers for accepting deposits of F ed T h e provisions of th is P a r t, as revised, pliance w ith these regulations. eral taxes a n d h an d lin g th e m as re become effective as o f------------------ , 1978. quired by th is section. § 2 1 4 .5 T e r m i n a t i o n o f c o n tr a c t. 3. Accordingly, th e Fiscal Service p ro (a) B y Treasury. T h e S ecretary of th e (b) Com pensation fo r services. T h e poses to am en d 31 CFR P a r t 317 (D e p art T re asu ry m ay te rm in a te th e c o n tra ct T reasury will com pensate depositaries m e n t C ircular, Public D ebt Series No. w ith an y depositary a t any tim e upon fo r F ederal taxes a t a un ifo rm fee of 5 Of1 4-67) by revising § 317.5 to rea d as fol notice to t h a t effect. fo r each F ederal ta x deposit form f o r lows: FEDERAL REGISTER, V O L . 42, NO. 2 3 7 — F R ID A Y , DE CE MBER 9 , 1977 PROPOSED RULES 62314 PART 317— REGULATIONS GOVERNING AGENCIES FOR ISSUE OF U.S. SAVINGS BONDS OF SERIES E AND U.S. SAVINGS NOTES * § 3 1 7 .5 * * * * Is s u a n c e o f b o n d s. (a) General. Issuing agents m u st com ply w ith all regulations an d instru ctio n s issued by th e D e p a rtm e n t of th e T reasury or th e F ed eral Reserve B anks concerning th e sale, inscription, dating, validation an d issue of th e bonds, a n d disposition of th e issue records. No issuing ag e n t shall have a u th o rity to sell bonds o th e r th a n as provided in th e offering circulars an d th e governing regulations.1 (b) Fees. Issuing agents, o th e r th a n F ederal agencies w hich fo r th e purpose of th is section include G overnm ent cor porations an d in d ep en d en t establish m ents, shall be paid for each savings bond issued d u ring a calen d ar q u a rte r as follow s: Seventy cents for each bond issued on sale by a financial in stitu tio n on the basis of a n application received o v er-th ecou nter or by m ail, or u n d er a b o n d -am on th plan; T h irty cents for each bond issued on sale by a financial in stitu tio n u n d er a payroll plan, if th e bond is inscribed by any m eans o th e r th a n a com puter; T en cents for each bond issued on sale by a financial in stitu tio n u n d er a payroll plan, if th e bond is inscribed by com puter; T en cents fo r each bond issued on sale by a n o n -fin an cial in stitu tio n ; an d Five cents for each bond reissued to e f fect d istrib ution to a p a rtic ip a n t in a pension, retirem en t, savings, vacation or sim ilar plan. (c) Basis for p a y m e n t of fees. A fee will be paid for each Series E savings bond issue included in tra n sm itta ls of reg istratio n stubs o r m agnetic tap e to the B ureau of th e Public D ebt for th e a c count of a n eligible ag e n t d u rin g each 1 D e p a rtm e n t of th e T reasu ry C irculars No. 530, c u rr e n t revision (31 CFR P a r t 315), and No. 653, c u r re n t revision (31 CFR P a r t 316). FEDERAL REGISTER, V O L . 42, NO. calen d ar qu arter, based on th e tra n sfe r dates assigned to th e tra n sm itta ls by a F ederal Reserve Bank. (d) No charge to customers. F inancial institu tio n s accepting fees from th e T re asu ry fo r issuing savings bonds shall n o t m ake an y charge to custom ers for th e sam e service. 4. Accordingly, th e Fiscal Service p ro poses to am end 31 CFR P a r t 321 (De p a rtm e n t C ircular No. 750, Second R evi sion) by revising § 321.5 to read as fol lows: PART 321— PAYMENTS BY BANKS AND OTHER FINANCIAL INSTITUTIONS OF UNITED STATES SAVINGS BONDS AND UNITED STATES SAVINGS NOTES (FREEDOM SHARES) Subpart B— Authority To Act § 3 2 1 .5 P a y i n g a g e n t fe e s a n d c h a r g e s . (a) Scale or rate and procedures. E ach paying ag en t sh all receive reim burse m e n t a t th e ra te of 30 cents for each bond or note paid h ere u n d er w hich is received by a F ederal Reserve B ank a n d fo r w arded for th e a g e n t’s accou nt to th e D ep a rtm en t of th e T reasu ry d u rin g each calen d ar q uarter. (b) No charge to owners. P ayin g agents shall n o t m ake an y charge w hatever to owners of savings bonds an d savings notes in connection w ith paym ents hereun der. D ated: November 25, 1977. D a v id Mosso, Fiscal A ssista n t Secretary. I n f l a t io n a r y I m pa c t C e r t ific a t io n P u r s u a n t to th e provisions of OMB C ir c u la r No. A-107, d a te d J a n u a ry 28, 1975, i t is hereby certified t h a t u p o n d ue con sideration a n d ap p licatio n of th e T reasu ry Id e n tifica tio n C riteria th e in flation ary im p a c t of th e p ro posed revisions a n d a m e n d m e n ts to 31 CFR P a rts 203, 214, 317 a n d 321 h a s been con sidered, a n d it h a s been d e te rm in e d t h a t th e proposed revisions will be a n ti-in fla tio n a ry . D ated: November 25,1977. D a v id Mosso, Fiscal Assistant Secretary. [FR Doc.77-35130 Filed 12-8-77;8:45 am ] 2 3 7 — FR ID A Y , DE CEMBER 9 , 1977 U. S. G O V E R N M E N T P R I N T IN G O F F I C E : 1971 O - 2 51-8 53
@FedFRASER