Regulations Governing Book-Entry Treasury Bonds, Notes and Bills; Regulations Governing Payments by the Automated Clearing House Method

The purpose of this final rule is to amend the general regulations governing book-entry Treasury securities, which apply to investors in the TREASURY DIRECT system, to require the Bureau of the Public Debt to send prenotification messages when an investor has requested that payments on his account be made by the Automated Clearing House (ACH) method, and to modify the number of days required to wait after a prenotification message is sent before live dollar entries can be initiated. This amendment will bring the procedures for prenotification messages for TREASURY DIRECT ACH payments in conformity with the procedures for the National Automated Clearing House Association (NACHA). Part 370 governs payments by the ACH method when such payments are made by Treasury on account of United States securities, including ACH payments in the TREASURY DIRECT system. This rule affects only ACH payments in the TREASURY DIRECT system. Because the amended Part 357 will contain some prenotification procedures inconsistent with Part 370, Part 370 will indicate that it applies to ACH payments made by Treasury on account of United States securities, except as otherwise provided.