Regulations Governing Book-Entry Treasury Bonds, Notes and Bills

This document amends the regulations governing book-entry Treasury bills, bonds, and notes by changing the time period during which the Department of the Treasury (Treasury) may delay the transfer of a newly-purchased security from TreasuryDirect to an account in TRADES. The previous rule provided that for Treasury bonds and notes purchased on original issue or on the additional issue of an outstanding issue, transfer from or within TreasuryDirect could be delayed for a period not to exceed 14 calendar days. The potential delay was to ensure that payment, if made by check, could be received and properly credited to Treasury's account. This amendment permits Treasury to delay the transfer of a newly-purchased security from TreasuryDirect to an account in TRADES for a period not to exceed 30 days. The previous 14 day period is not appropriate if using Pay Direct. With Pay Direct, investors purchase securities by having the funds electronically deducted from their deposit account at their financial institution and the 30 day period provides additional time for the investor to become aware of any unauthorized debit. This change benefits Treasury in preventing the transfer and sale of the security before the investor has time to discover any unauthorized debit that may have occurred.