31 CFR Definitions and Text to Study.pdf

31 CFR Definitions and Text to Study Also 15 USC 77ccc Definitions 31 CFR Subchapter A - SUBCHAPTER A—BUREAU OF THE FISCAL SERVICE (full chapter link) 31 CFR § 363.10 - What is a TreasuryDirect ® account? A TreasuryDirect account is an online account maintained by us solely in your name in which y...

31 CFR Definitions and Text to Study Also 15 USC 77ccc Definitions 31 CFR Subchapter A - SUBCHAPTER A—BUREAU OF THE FISCAL SERVICE (full chapter link) 31 CFR § 363.10 - What is a TreasuryDirect ® account? A TreasuryDirect account is an online account maintained by us solely in your name in which you may hold and conduct transactions in eligible book-entry Treasury securities. (a) Primary account. The primary account is the account that you establish when initially opening your TreasuryDirect account. The primary account may contain the following Treasury securities: (1) Individual. A primary account for an individual may contain Treasury securities purchased initially as book-entry securities that are your personal holdings registered in single owner, owner with beneficiary, and primary owner with secondary owner forms of registration; gifts of savings bonds that have not yet been delivered; and converted savings bonds that were transferred from the conversion linked account. (2) Entities. A primary account for an entity may contain Treasury securities purchased initially as book-entry securities registered in the name of the entity and converted savings bonds in the name of the entity that were transferred from the conversion linked account. (b) Linked account. A linked account is an account that is a separate account from your primary account, but that is connected to your primary account. You use your primary account as a portal to open and access the linked account. Linked accounts include the following: (1) Custom account. A custom account is an account that is linked to your primary account. You use your primary account as the portal to open and access your custom account. You may informally designate a purpose for the custom account, for example, “vacation fund”, or “Johnny's college fund”. However, the designation as to purpose has no legal effect; the registration of the securities held in the custom account determines ownership (Annual purchase limitations include securities held in custom accounts). You, as an individual owner, may use your custom account to buy, redeem, and transfer securities that you own in single owner, owner with beneficiary, and primary owner with secondary owner forms of registration. An individual owner may also buy and deliver gift savings bonds from the custom account. An entity account manager, acting on behalf of 31 CFR Definitions and Text to Study Page 1 of 14 an entity, may use the entity's custom account to buy, redeem, and transfer securities registered in the entity form of registration. (2) Minor account. A minor account is an account established by an individual custodian for an individual who has not yet reached the age of 18 years. We do not permit an entity to open a minor account. A minor account is linked to the custodian's primary account. The minor is the owner of the securities, but the custodian controls the account on behalf of the minor. (3) Conversion account means a linked account in TreasuryDirect that contains only savings bonds that have been converted from definitive bonds to book-entry bonds. (c) Closing an account. If a TreasuryDirect primary account and all associated linked accounts have had no holdings and no activity for a period of two years, we reserve the right to close the account, along with all linked accounts. 31 CFR 363.11 Who is eligible to open a TreasuryDirect ® account? Only an individual or an entity is eligible to open a TreasuryDirect account. In order to open a TreasuryDirect account, an individual or entity account manager must have a valid social security number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or employer identification number. The account owner must have a United States address of record and have an account at a United States depository financial institution that will accept debits and credits using the Automated Clearing House method of payment. 31 CFR 363.12 Who may purchase and hold book-entry securities in TreasuryDirect ®? (a) A TreasuryDirect account owner may purchase and hold securities through his or her account. (b) We do not permit a legally incompetent person to open an account, purchase securities, or convert savings bonds once we have been provided with an order from a court with appropriate jurisdiction determining incompetence to perform such activities. (c) We do not permit a voluntary representative to purchase securities on behalf of the estate of a decedent. 31 CFR Definitions and Text to Study Page 2 of 14 (d) We may reject any application for the purchase of a security, in whole or in part. We may refuse to issue a security in any case or class of cases, if we deem the action to be in the public interest. Our decision in any such respect is final. 31 CFR 363.13 How can I open a TreasuryDirect ® account? (a) General. You must establish a TreasuryDirect account online before you purchase a Treasury security to be held in your account. Instructions for online account establishment may be found at the official Fiscal Service website at http://www.treasurydirect.gov, or such other Internet address as Fiscal Service may from time to time announce by publication in the Federal Register. When you have completed the application, you will create a password to access your account. We will verify your identity and send your account number to you by e-mail when your account application is approved. In addition to your password, we may require you to use any other form(s) of authentication that we consider necessary for the protection of your account. (b) Entities. An individual, referred to as an entity account manager, must establish an account on behalf of an entity. We will verify the identity of the entity account manager. We may verify the identity of the entity using any evidence we deem appropriate. The entity account manager must certify that he or she is authorized to open and access an account for the entity and has the authority to act alone on behalf of the entity with regard to the account. § 363.26 What is a transfer? (a) A transfer is a transaction to: (1) Move a Treasury security, or a portion of a Treasury security, from one account to another within TreasuryDirect ®; (2) Move a marketable Treasury security to or from a TreasuryDirect account and an account in the commercial book-entry system; (3) Move a marketable Treasury security to a TreasuryDirect account from a Legacy Treasury Direct® account. (b) and (c) not included. 31 CFR Definitions and Text to Study Page 3 of 14 § 363.27 What do I need to know about accounts for minors who have not had a legal guardian appointed by a court? (a) We do not permit a minor to purchase securities. (b) Opening an account in the name of a minor. (1) A parent or an individual who provides the chief financial support of a minor may open an account for a minor. The person opening the account for a minor is referred to as the custodian of the minor's account. (2) The custodian is a fiduciary for the minor as to the securities held in the minor's account. (3) The custodian must have an existing primary TreasuryDirect ® account in order to open the minor's account. (i) The minor's account is an account that is linked to the custodian's primary account. (ii) The custodian must use his or her primary TreasuryDirect account as a portal to open and access the minor's account. (4) Securities contained in the minor's account will be registered in the name and SSN of the minor, in either sole owner, owner with beneficiary, or primary owner with secondary owner forms of registration. (c) Procedure for opening an account for a minor. (1) Online instructions will be provided for establishing an account for a minor. (2) The custodian must certify that all transactions conducted through the account will be on the minor's behalf. (d) Procedure for conducting transactions in the minor's account. The custodian must conduct all transactions in the minor's account on behalf of the minor. Access to the minor's account is through the custodian's primary account. (e) Transactions permitted in the minor's account. (1) The custodian may purchase securities for and on behalf of the minor through the minor's account. (2) The custodian may redeem savings bonds on behalf of the minor through the minor's account. We will report the interest earned on the security to the name and SSN of the minor. (3) The custodian may not purchase gift savings bonds from the minor's account. 31 CFR Definitions and Text to Study Page 4 of 14 (4) The custodian may transfer a security to another TreasuryDirect account, provided the account is a linked account bearing the name and taxpayer identification number of the minor. The custodian can transfer a marketable Treasury security to an account in the commercial book-entry system. (5) Securities may be transferred to the minor's account. (6) Gift savings bonds may be delivered to the minor's account. (7) The custodian may grant rights to view and conduct transactions in the security as may be permitted by § 363.22. (8) The custodian may purchase a zero-percent certificate of indebtedness on behalf of the minor. The zero-percent certificate of indebtedness is the property of the minor. (f) When the minor reaches the age of 18 years. (1) The only transactions that the custodian may make in the minor's account after the minor attains the age of 18 years are to purchase new securities, and to transfer the securities contained in the minor's account to another account in the name and SSN of the minor. The receiving account in the name and SSN of the minor may be a primary account established by the minor, or it may be another minor linked account with the same or a different custodian. The custodian may transfer one or more of the securities at a time, or the custodian may de-link the account and transfer all of the securities contained in the account to the minor's previously established primary TreasuryDirect account. The minor must establish his or her own primary TreasuryDirect account prior to transfer of his or her securities. (2) In order to gain control of the securities held in the minor's account, the minor must first open his or her own primary account. (3) The minor may gain control of the securities held in the minor's account by the custodian transferring the securities held in the minor's account to the minor's primary account, or the minor may request that Fiscal Service transfer the securities to his or her primary account. (4) The minor may gain control of his or her zero-percent certificate of indebtedness by the custodian de-linking the account and transferring the zero-percent certificate of indebtedness to the minor's primary account, or the minor may request that Fiscal Service de-link the account and transfer the zero-percent certificate of indebtedness to his or her primary account. (g) Liability. We rely on the certification of the custodian that he or she is acting on behalf of the minor. We are not liable to the minor, or any other person or party acting on behalf of the minor, for the actions of the custodian, nor are we liable for the application of any proceeds from the transfer or redemption of securities held in the minor's account. The 31 CFR Definitions and Text to Study Page 5 of 14 custodian agrees to indemnify and hold harmless the United States in the event that we suffer any loss on account of any claim relating to a minor account. 31 CFR § 363.40 - How are payments of principal and interest made? (a) Payment of a savings bond that has reached final maturity. We will purchase a zero-percent certificate of indebtedness in your TreasuryDirect ® account using the proceeds of a matured savings bond. (b) Payments of interest and principal (except a savings bond that has reached final maturity). (1) We provide two methods of receiving payments of principal and interest: (i) Payment to your account at a financial institution by the ACH method, or (ii) Payment to your TreasuryDirect account to purchase a zero-percent certificate of indebtedness. (2) You may select different payment destinations for principal and interest for a marketable Treasury security. You may change your payment destination at any time, unless the security is in the closed book period. (See § 363.210.) (3) If we are unable to deliver a payment, we will use the payment to purchase a zero- percent certificate of indebtedness in your TreasuryDirect account. 31 CFR § 363.6 - What special terms do I need to know to understand this part? Account means a TreasuryDirect ® account as described in § 363.10. Authentication means confirming that the person accessing a TreasuryDirect account is the same person whose identity was initially verified at account establishment. Automated Clearing House (ACH) means a funds transfer system governed by the Rules of the National Automated Clearing House Association (NACHA). NACHA provides for the interbank clearing of electronic entries for participating financial institutions. Beneficiary refers to the second individual named in the registration of a definitive savings bond, a converted definitive savings bond, or a book-entry security purchased through the TreasuryDirect system, registered, e.g., “John Doe SSN 123–45–6789 POD (payable on death to) Joseph Doe SSN 987–65–4321. 31 CFR Definitions and Text to Study Page 6 of 14 Book-entry security means a Treasury security maintained by us in electronic or paperless form as a computer record. Business day means any day that funds may be settled through ACH. Closed book period means a period of four business days prior to the date a scheduled marketable security interest and/or maturity payment is made, during which time certain transactions will be delayed until after the closed book period is completed. (See § 363.210.) Commercial book-entry system refers to the book-entry system in which you hold your Treasury securities in a tiered system through securities intermediaries such as financial institutions or brokerage firms. (See § 363.4.) Court means a court of law with jurisdiction over the parties and the subject matter. Conversion account means a linked account in TreasuryDirect that contains only savings bonds that have been converted from definitive bonds to book-entry bonds. Converted savings bond means a savings bond originally issued as a definitive bond that has been surrendered to us and converted to a book-entry savings bond to be maintained by Treasury solely as a computer record. Converting coowner is the coowner who initiates and completes the transaction to convert a definitive savings bond to a book-entry bond through his or her TreasuryDirect account. Co owner means either of the persons named in the registration of a definitive or a converted definitive savings bond, registered, e.g., “John Doe SSN 123–45–6789 or Joseph Doe.” Custodian of a minor account means a person who opens an account on behalf of the minor. (See § 363.27 for more information about minor accounts.) Custom account means an account that you establish for a specific purpose that is linked to your primary account. You use your primary account as the portal to open and access your custom linked account. (See § 363.10 for more information about custom accounts.) Definitive security means a Treasury security held in paper form. De-link means the online process by which all securities contained within the minor linked account are moved to the minor's primary TreasuryDirect account and the linked account is deactivated. 31 CFR Definitions and Text to Study Page 7 of 14 Delivery means moving a minimum amount of $25 (consisting of principal and proportionate interest) of a security held as a gift from the account of the purchaser to the account of the recipient. Entity means any owner of a TreasuryDirect account that is not an individual. Entity is a sole proprietorship, partnership, corporation, limited liability company or professional limited liability company, trust, the estate of a decedent, or the estate of a living person such as an incompetent or a minor. Entity account manager is the individual who initially opens the TreasuryDirect account for an entity, or his or her replacement; who is authorized by the entity to act alone on its behalf to open, access, and conduct transactions with respect to the account; and who certifies that he or she is so authorized. Federal Reserve Bank (Reserve Bank) means a Federal Reserve Bank or Branch. Final maturity of a savings bond means the date beyond which an unredeemed savings bond no longer earns interest. 1 1 Series EE and Series I savings bonds currently have an original maturity period of 20 years and an extended maturity period of 10 years beyond original maturity during which the bonds continue to earn interest. Financial institution, or depository financial institution, means an entity described in 12 U.S.C. 461 (b)(1)(A)(i)–(vi). Gift means a Treasury security purchased for or transferred to an intended recipient, without consideration. Incompetent individual or incompetent person means an individual who has been declared by a court to be legally incompetent, incapacitated, or otherwise unable to manage his or her financial affairs. Individual means a natural person. Interest on a savings bond means the difference between the purchase price and the redemption value of the bond. Legacy Treasury Direct® system is a non-Internet-based book-entry system maintained by Treasury since 1986 for holding and conducting permitted transactions in marketable Treasury securities directly with Treasury as book-entry products. (See § 363.4.) Legal guardian of a minor or incompetent person refers to the court-appointed or otherwise qualified person, regardless of title, who is legally authorized to act for the minor or incompetent individual. 31 CFR Definitions and Text to Study Page 8 of 14 Legal representative refers to the court-appointed or otherwise qualified person, regardless of title, who is legally authorized to manage and settle the estate of a decedent. The term includes an executor and an administrator. Legally incompetent means a court has declared an individual to be incapable of handling his or her business affairs. Linked account means an account that is a separate account from your primary account, but connected to your primary account. You use your primary account as a portal to open and access the linked account. (See § 363.10 for more information about linked accounts.) Marketable Treasury security refers to a Treasury bill, note, or bond that is negotiable and transferable, that is, may be bought and sold in the secondary market. Minor means an individual under the age of 18 years. The term minor is also used to refer to an individual who has attained the age of 18 years but has not yet taken control of the securities contained in his or her minor account. Minor account means an account that a custodian controls on behalf of a minor, that is linked to the custodian's primary account. (See §§ 363.10 and 363.27 for more information about minor accounts.) Non-converting co-owner is the co-owner who does not participate in the transaction to convert a definitive savings bond to a book-entry bond. Online means use of the Internet. Owner when referring to an individual, is either the single individual named in the registration of a security held in the single owner form of registration, the first individual named on a security held in the owner with beneficiary form of registration, the first individual named on a security held in the primary owner with secondary owner form of registration, or either individual named on a converted savings bond held in the coowner form of registration; when referring to a minor linked account, the owner is the minor; when referring to an entity, the owner is the entity. Payroll savings plan is a method for the purchase of savings bonds using periodic ACH credits from your employer or financial institution to purchase a payroll zero-percent certificate of indebtedness until a sufficient amount of payroll zero-percent certificate of indebtedness is accumulated to enable the purchase of a savings bond in an amount, series, and registration that you previously selected using functionality in your TreasuryDirect account. (See also the definition of payroll zero-percent certificate of indebtedness.) Payroll zero-percent certificate of indebtedness is a restricted form of the zero- percent certificate of indebtedness that is held separately from the zero-percent certificate of indebtedness and used only for purchases made through the payroll savings plan. (See also the definition for zero-percent certificate of indebtedness.) 31 CFR Definitions and Text to Study Page 9 of 14 Person means an individual or an entity. Primary account means the account that you establish when you first open your TreasuryDirect account; your primary account is the portal used to open and access all your linked accounts. (See § 363.10 for more information about primary accounts.) Primary owner means the first person named in the registration of a security held in TreasuryDirect registered, e.g., “John Doe SSN 123–45–6789 with Joseph Doe SSN 987– 65–4321.” In this example, John Doe is the primary owner. Principal amount means the amount of the original investment. Principal amount does not include any interest earned. Recipient means the person to whom a gift is given. Redemption of a savings bond refers to the payment of principal and interest at final maturity, or prior to final maturity at the option of the owner. The owner may redeem all principal and interest or a portion of the principal and the proportionate amount of interest. Redemption value means principal plus accrued interest of a bond, or a portion of the principal plus a proportionate amount of accrued interest on the bond, as of the date of redemption. Registration or Registered means that the name and taxpayer identification number(s) (TIN) of the person(s) named on the security are maintained on our records. Reinvestment means using the redemption proceeds of a maturing marketable security to purchase a new marketable security of the same type and term, using the automatic reinvestment option available in TreasuryDirect. Secondary owner means the second person named in the registration of a book-entry security held in TreasuryDirect registered, e.g. “John Doe SSN 123–45–6789 with Joseph Doe SSN 987–65–4321.” In this example, Joseph Doe is the secondary owner. Security, or Treasury security, as used in this part, means an obligation issued by Treasury that may be held in TreasuryDirect. Series EE savings bond is an accrual-type savings bond, issued either in definitive (paper) form or in book-entry form, that accrues interest on the principal based on rates determined by Treasury. Series I savings bond is a savings bond, issued either in definitive (paper) form or in book-entry form, that accrues interest in accordance with a formula that includes a fixed component and a component indexed to the rate of inflation. 31 CFR Definitions and Text to Study Page 10 of 14 Signature guarantee program means a signature guarantee program established under 17 CFR 240.17Ad–15, issued under authority of the Securities Exchange Act of 1934. For the purpose of this part, we recognize the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), and the New York Stock Exchange, Inc., Medallion Signature Program (MSP). These certifications are acceptable for transfers of securities, but are not acceptable for offline account establishment. Single owner means the individual named in the registration of a book-entry Treasury security or a converted savings bond without a beneficiary, secondary owner, or coowner. Social security account number or social security number (SSN) means the identifying number required on tax returns and other documents submitted to the Internal Revenue Service by an individual. A SSN is composed of nine digits separated by two hyphens, for example, 123–45–6789. Taxpayer identification number (TIN) means the identifying number required on tax returns and other documents submitted to the Internal Revenue Service; that is, an individual's social security number (SSN) or an employer identification number (EIN). A SSN is composed of nine digits separated by two hyphens, for example, 123–45–6789. An EIN is composed of nine digits separated by one hyphen, for example, 12–3456789. The hyphens are an essential part of the numbers. Tender means an offer, or bid, to purchase a marketable Treasury security. Transaction is any action affecting Treasury securities or account information. Transfer is a transaction to move a security, or a portion of a security, to or from a TreasuryDirect account. (See § 363.26.) Verification means confirming the identity of an online applicant for a TreasuryDirect account at account establishment using an online verification service or offline verification. Verification service means a public or private service that confirms the identity of an online applicant for a TreasuryDirect account at account establishment using information provided by the applicant. Voluntary representative means the person qualified by the Department of the Treasury to accept payment or direct distribution of a decedent's securities pursuant to § 363.44. We, us, or our refers to the Bureau of the Fiscal Service. The term includes the Secretary of the Treasury and the Secretary's delegates at the Treasury Department and Bureau of the Fiscal Service. The term also includes any fiscal or financial agent we designate to act on behalf of the United States. You or your refers to a TreasuryDirect primary account holder. 31 CFR Definitions and Text to Study Page 11 of 14 Zero-percent certificate of indebtedness is a one-day, non-interest-bearing security that automatically matures and is rolled over each day until you request that it be redeemed. 15 USC 77ccc Definitions [links kept with text for this section] When used in this subchapter, unless the context otherwise requires— (1)Any term defined in section 2 of the Securities Act of 1933 [15 U.S.C. 77b], and not otherwise defined in this section shall have the meaning assigned to such term in such section 2 [15 U.S.C. 77b]. (2)The terms “sale”, “sell”, “offer to sell”, “offer for sale”, and “offer” shall include all transactions included in such terms as provided in paragraph (3) of section 2(a) of the Securities Act of 1933 [15 U.S.C. 77b(a)], except that an offer or sale of a certificate of interest or participation shall be deemed an offer or sale of the security or securities in which such certificate evidences an interest or participation if and only if such certificate gives the holder thereof the right to convert the same into such security or securities. (3)The term “prospectus” shall have the meaning assigned to such term in paragraph (10) of section 2(a) of the Securities Act of 1933 [15 U.S.C. 77b(a)], except that in the case of securities which are not registered under the Securities Act of 1933 [15 U.S.C. 77a et seq.], such term shall not include any communication (A) if it is proved that prior to or at the same time with such communication a written statement if any required by section 77fff of this title was sent or given to the persons to whom the communication was made, or (B) if such communication states from whom such statement may be obtained (if such statement is required by rules or regulations under paragraphs (1) or (2) of subsection (b) of section 77fff of this title) and, in addition, does no more than identify the security, state the price thereof, state by whom orders will be executed and contain such other information as the Commission, by rules or regulations deemed necessary or appropriate in the public interest or for the protection of investors, and subject to such terms and conditions as may be prescribed therein, may permit. (4)The term “underwriter” means any person who has purchased from an issuer with a view to, or offers or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking; but such term shall not include a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributors’ or sellers’ commission. (5)The term “director” means any director of a corporation, or any individual performing similar functions with respect to any organization whether incorporated or unincorporated. 31 CFR Definitions and Text to Study Page 12 of 14 (6)The term “executive officer” means the president, every vice president, every trust officer, the cashier, the secretary, and the treasurer of a corporation, and any individual customarily performing similar functions with respect to any organization whether incorporated or unincorporated, but shall not include the chairman of the board of directors. (7)The term “indenture” means any mortgage, deed of trust, trust or other indenture, or similar instrument or agreement (including any supplement or amendment to any of the foregoing), under which securities are outstanding or are to be issued, whether or not any property, real or personal, is, or is to be, pledged, mortgaged, assigned, or conveyed thereunder. (8)The term “application” or “application for qualification” means the application provided for in section 77eee of this title or section 77ggg of this title, and includes any amendment thereto and any report, document, or memorandum accompanying such application or incorporated therein by reference. (9)The term “indenture to be qualified” means (A) the indenture under which there has been or is to be issued a security in respect of which a particular registration statement has been filed, or (B) the indenture in respect of which a particular application has been filed. (10)The term “indenture trustee” means each trustee under the indenture to be qualified, and each successor trustee. (11)The term “indenture security” means any security issued or issuable under the indenture to be qualified. (12)The term “obligor”, when used with respect to any such indenture security, means every person (including a guarantor) who is liable thereon, and, if such security is a certificate of interest or participation, such term means also every person (including a guarantor) who is liable upon the security or securities in which such certificate evidences an interest or participation; but such term shall not include the trustee under an indenture under which certificates of interest or participation, equipment trust certificates, or like securities are outstanding. (13)The term “paying agent”, when used with respect to any such indenture security, means any person authorized by an obligor thereon (A) to pay the principal of or interest on such security on behalf of such obligor, or (B) if such security is a certificate of interest or participation, equipment trust certificate, or like security, to make such payment on behalf of the trustee. (14)The term “State” means any State of the United States. (15)The term “Commission” means the Securities and Exchange Commission. 31 CFR Definitions and Text to Study Page 13 of 14 (16) The term “voting security” means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a person, or any security issued under or pursuant to any trust, agreement, or arrangement whereby a trustee or trustees or agent or agents for the owner or holder of such security are presently entitled to vote in the direction or management of the affairs of a person; and a specified percentage of the voting securities of a person means such amount of the outstanding voting securities of such person as entitles the holder or holders thereof to cast such specified percentage of the aggregate votes which the holders of all the outstanding voting securities of such person are entitled to cast in the direction or management of the affairs of such person. (17) The terms “Securities Act of 1933” [15 U.S.C. 77a et seq.] and “Securities Exchange Act of 1934” [15 U.S.C. 78a et seq.] shall be deemed to refer, respectively, to such Acts, as amended, whether amended prior to or after the enactment of this subchapter. (18) The term “Bankruptcy Act” means the Bankruptcy Act or title 11. 31 CFR Definitions and Text to Study Page 14 of 14