Acceptance of Bonds Secured By Government Obligations in Lieu of Bonds With Sureties
other · Fiscal Service · Rule · Published 1999-01-29 · Effective 1999-03-01 · 64 FR 4762
Document
Document number
99-2165
Federal Register citation
64 FR 4762
CFR reference
31 CFR 225
Type
Rule
Action
Final rule.
Category
other
Sub-agency
Fiscal Service
Publication date
1999-01-29
Effective date
1999-03-01
Abstract
The Financial Management Service (Service) is issuing this final rule to revise 31 CFR Part 225, which governs the acceptance of bonds secured by Government obligations in lieu of bonds with sureties. This final rule specifically addresses the mechanics of pledging book- entry Government obligations, and clarifies existing requirements for accepting bonds secured with Government obligations. These revisions are intended to provide greater clarity and flexibility by replacing obsolete references and unnecessary requirements with current references and requirements. In addition, the rule expands the use to which the proceeds of pledged Government obligations may be applied in the event of a default in performance.