# U.S. Treasury Securities-State and Local Government Series
> **Fiscal Service** · Final rule. · Published 2012-06-07 · Effective 2012-06-07 · 77 FR 33634
## Document
- **Document number:** 2012-13779
- **Category:** other
- **Sub-agency:** Fiscal Service
- **Federal Register citation:** 77 FR 33634
- **CFR reference:** 31 CFR 344
- **Publication date:** 2012-06-07
- **Effective date:** 2012-06-07
- **Treasury docket:** Department of the Treasury Circular, Public Debt Series No. 3-72
## Abstract

The Department of the Treasury (Treasury) is issuing this final rule to revise the regulations governing State and Local Government Series (SLGS) securities. SLGS securities are non-marketable Treasury securities that are only available for purchase by issuers of tax-exempt securities. Current financial market conditions have resulted in extraordinarily low yields in the secondary market for some marketable Treasury securities. As a result, rates applicable to non- marketable State and Local Government Series (SLGS) securities sold to issuers of tax-exempt securities could be negative. To prevent this, Treasury is instituting a floor on the daily SLGS rate, by amending the definition of "SLGS rate" and the definition of the "annualized effective Demand Deposit rate" for Demand Deposit SLGS securities. Additionally, Treasury is revising the definition of "Y" in the annualized effective Demand Deposit rate calculation formula to clarify the calculation method to be used during a year that contains a leap day.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2012/06/07/2012-13779/us-treasury-securities-state-and-local-government-series)
---
*AI Analytics · CC0 1.0*