law-guide-69-fr-2506-01-16-2004

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2506 Federal Register / Vol. 69, No. 11 / Friday, January 16, 2004 / Rules and Regulations
amount of credit to be taken against the
next quarterly payment otherwise due.
(2) The notification required in
paragraph (d)(1) of this section shall be
made in writing addressed to the
gaming operation.
* * * * *
[FR Doc. 04–955 Filed 1–15–04; 8:45 am]
BILLING CODE 7565 –01–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Regulations Governing New Treasury
Direct System
AGENCY: Bureau of the Public Debt,
Fiscal Service, Treasury.
ACTION: Final rule.
SUMMARY: New Treasury Direct (also
referred to as Treasury Direct) is a book-
entry, online system for purchasing,
holding and conducting transactions in
Treasury securities. This rule amends
the regulations relating to accounts
belonging to minors. This rule also sets
forth the rules for custom accounts,
which are accounts created for a specific
purpose. This rule also removes
references to special forms of
registration for decedents’ and
incompetents’ estates. Rather than
change registrations for these
circumstances, we will handle the
transactions offline.
When we initiated New Treasury
Direct, we published but deferred the
implementation of several sections
dealing with minor accounts. All
deferred sections dealing with minor
accounts have been deleted or amended
in their entirety, and the new sections
are effective with this rule.
DATES: This rule is effective January 16,
2004.
ADDRESSES: You can download this final
rule at the following Internet address:
http://www.publicdebt.treas.gov.
FOR FURTHER INFORMATION CONTACT :
Elisha Whipkey, Director, Division of
Program Administration, Office of
Securities Operations, Bureau of the
Public Debt, at (304) 480–6319 or
elisha.whipkey@bpd.treas.gov.
Susan Klimas, Attorney-Adviser, Office
of the Chief Counsel, Bureau of the
Public Debt, at (304) 480–8692 or
susan.klimas@bpd.treas.gov.
Dean Adams, Assistant Chief Counsel,
Office of the Chief Counsel, Bureau of
the Public Debt, at (304) 480–8692 or
dean.adams@bpd.treas.gov.
Edward Gronseth, Deputy Chief
Counsel, Bureau of the Public Debt, at
(304) 480–8692 or
edward.gronseth@bpd.treas.gov.
SUPPLEMENTARY INFORMATION: New
Treasury Direct is an account-based,
online, book-entry system for
purchasing, holding, and conducting
transactions in Treasury securities via
the Internet. Currently, Series EE and
Series I savings bonds are offered
through New Treasury Direct. Initially,
only adult individuals were able to open
accounts in New Treasury Direct. This
rule will permit a parent or person who
provides the chief financial support for
a minor to open and access an account
for a minor as custodian of the account.
The custodian is a fiduciary for the
minor. The account is held in the name
and social security number of the minor.
The securities held in the minor’s
account are registered in the name and
social security number of the minor,
with the minor as sole owner, owner
with beneficiary, or primary owner with
secondary owner of the securities. The
minor’s account is a separate account
that is linked to the primary New
Treasury Direct account of the
custodian. The custodian may access
the minor’s account using the
custodian’s primary New Treasury
Direct account as a portal.
Using his or her own New Treasury
Direct account, the custodian may
access the minor’s account to purchase
and make transactions in securities on
the minor’s behalf. The custodian must
certify that he or she is acting on behalf
of the minor when he or she opens the
minor’s account and in all subsequent
transactions in the account. The
custodian may transfer the securities
without a change in registration to
another custodian for the same minor.
The custodian may grant the right to
view the securities to another New
Treasury Direct account holder, and
may grant the right to redeem the
securities to a secondary owner named
on the minor’s securities. When the
minor reaches the age of 18 years, the
transactions that the custodian may
make in the minor’s account are limited
to purchasing securities and transferring
securities to another account identified
by the minor’s social security number,
whether that is an account maintained
by another custodian for the minor, or
the minor’s own previously established
primary account. (We will continue to
refer to a minor who has attained the
age of 18 years by the term ‘‘minor’’,
until the minor’s securities are
transferred to the minor’s (now adult’s)
own primary account.) The minor may
also contact us when he reaches the age
of 18 to have the securities transferred
from the custodian’s account to the
minor’s primary account.
In addition to permitting accounts on
behalf of minors, this rule permits
custom accounts, which are accounts
that are linked to the primary account
of the owner. A custom account
contains securities in the same form of
registration as the primary account, but
the owner may informally designate a
purpose for the custom account.
However, the designation has no legal
effect on the securities held in the
account; the registration of the securities
determines ownership. The annual
purchase limitation will include
securities held in custom accounts.
We are also deleting sections referring
to special forms of registration. Initially,
we had planned to permit
representatives of a decedent’s estate
and guardians of an incompetent to
make online transactions in securities
held by a decedent or an incompetent
through the personal New Treasury
Direct account of the representative or
guardian. At this time we believe that
the interests of our customers will be
better served by focusing our resources
on expanding the scope of our basic
online services. We therefore provide
offline servicing for estates through our
customer service staff.
When we initiated New Treasury
Direct, we published but deferred the
implementation of several sections of
the regulations, including those related
to minors. We have since revised our
thinking on the treatment of minor
accounts. Therefore, the provisions of
the regulations published in Volume 67
of the Federal Register at page 64276,
on October 17, 2002, relating to minor
accounts, will never be implemented. In
their place, this rule will apply, as of the
date of its publication in the Federal
Register.
Procedural Requirements
This final rule does not meet the
criteria for a ‘‘significant regulatory
action’’ as defined in Executive Order
12866. Therefore, the regulatory review
procedures contained therein do not
apply.
This final rule relates to matters of
public contract and procedures for
United States securities. The notice and
public procedures requirements and
delayed effective date requirements of
the Administrative Procedure Act are
inapplicable, pursuant to 5 U.S.C.
553(a)(2).
As no notice of proposed rulemaking
is required, the Regulatory Flexibility
Act (5 U.S.C. 601, et seq.) does not
apply.
We ask for no new collections of
information in this final rule. Therefore,
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2507Federal Register / Vol. 69, No. 11 / Friday, January 16, 2004 / Rules and Regulations
the Paperwork Reduction Act (44 U.S.C.
3507) does not apply.
List of Subjects in 31 CFR Part 363
Bonds, Electronic funds transfer,
Federal Reserve system, Government
securities, Securities.
I Accordingly, for the reasons set out in
the preamble, 31 CFR chapter II,
subchapter B, is amended as follows:
I 1. The authority citation for part 363
continues to read as follows:
Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31
U.S.C. 3102, et seq., 3105 and 3125.
PART 363—REGULATIONS
GOVERNING SECURITIES HELD IN
THE NEW TREASURY DIRECT
SYSTEM
I 2. Revise § 363.4 to read as follows:
§ 363.4 How is New Treasury Direct
different from the Treasury Direct system?
New TreasuryDirect is an online
(Internet-accessible only) system which
currently provides for the purchase and
holding of book-entry U.S. savings
bonds and will eventually also provide
for the purchase and holding of
marketable Treasury securities. There is
also a separate TreasuryDirect system
(TreasuryDirect), available since 1986,
for purchasing and holding marketable
Treasury securities in book-entry form.
The TreasuryDirect system for
marketable securities offers more
limited online services. The terms and
conditions for TreasuryDirect are found
at part 357, and are substantially
different from the terms and conditions
of securities held in New Treasury
Direct.
I 3. Amend § 363.6 by revising the
definitions of ‘‘minor’’, ‘‘transfer’’, and
‘‘you’’, and by adding other definitions
in alphabetical order, to read as follows:
§ 363.6 What special terms do I need to
know to understand this part?
* * * * *
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 § 363.15 for more
information about custom accounts.)
* * * * *
De-link means the online process by
which all securities contained within
the minor linked account are moved to
the minor’s primary New Treasury
Direct account and the linked account is
deactivated.
* * * * *
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 § 363.15 for more
information about linked accounts.)
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 linked account means an
account that you control on behalf of a
minor. You use your primary account as
the portal to open and access the minor
linked account. (See §§ 363.15 and
363.27 for more information about
minor accounts.)
* * * * *
Primary account means the account
that you establish when you first open
your New Treasury Direct account; your
primary account is the portal used to
open and access all your linked
accounts. (See § 363.15 for more
information about primary accounts.)
* * * * *
Transfer means moving a minimum
amount of $25 (consisting of principal
and proportionate interest) of a security
from one New Treasury Direct account
to another. The transfer of a specific
security may be restricted by the terms
of this part that apply to that security.
* * * * *
You or your refers to a New Treasury
Direct primary account holder.
I 4. Revise § 363.15 to read as follows:
§ 363.15 What is a New Treasury Direct
account?
A New Treasury Direct 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. Your primary
account that you establish when
initially opening your New Treasury
Direct account may contain the
following Treasury securities:
(1) Treasury securities that are your
personal holdings, in sole owner, owner
with beneficiary, and primary owner
with secondary owner forms of
registration; and
(2) gifts that have not yet been
delivered.
(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
may use your custom account to buy,
redeem and transfer securities that you
own in sole owner, owner with
beneficiary, and primary owner with
secondary owner forms of registration.
You may also buy and deliver gift
securities from your custom account.
(2) Minor account. A minor account is
an account established by a custodian
for a person who has not yet reached the
age of 18 years. 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. (See
§ 363.27 for more information about
minor accounts.)
I 5. Amend § 363.24 by adding
paragraph (p) to read as follows:
§ 363.24 What transactions can I perform
online through my New Treasury Direct
account?
* * * * *
(p) You can open and access any
linked accounts using your primary
account as a portal.
I 6. Revise § 363.27 to read as follows:
§ 363.27 What do I need to know about
accounts for minors who have not had a
legal guardian appointed by a court?
(a) Opening an account in the name
of a minor. (1) A parent or a person 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 New Treasury Direct
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 New Treasury Direct account as
a portal to open and access the minor’s
account.
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2508 Federal Register / Vol. 69, No. 11 / Friday, January 16, 2004 / Rules and Regulations
(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.
(b) 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.
(c) 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.
(d) 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
securities 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 securities from the minor’s account.
(4) The custodian may not transfer
securities from the minor’s account if
the transfer will result in a change of
ownership in the security.
(5) Securities may be transferred to
the minor’s account.
(6) Gift securities may be delivered to
the minor’s account.
(7) The custodian may grant the right
to view securities in the minor’s account
to another New Treasury Direct account
holder, and may grant the right to
redeem securities in the minor’s account
to a secondary owner, if any, named on
the securities held in the minor’s
account.
(e) 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 New
Treasury Direct account. The minor
must establish his or her own primary
New Treasury Direct 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 Public Debt
transfer the securities to his or her
primary account.
(f) 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 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.
§§ 363.28 through 363.32 [Removed and
reserved]
I 7. Remove and reserve §§ 363.28
through 363.32.
I 8. Revise § 363.36 to read as follows:
§ 363.36 What securities can I purchase
and hold in my New Treasury Direct
account?
You can purchase and hold eligible
Treasury securities in your account.
Current eligible securities are book-
entry Series EE and I savings bonds. We
intend to designate additional Treasury
securities as eligible securities from
time to time.
§ 363.51 [Amended]
I 9. Amend § 363.51 by removing
paragraph (b) and redesignating
paragraphs (c) and (d) as (b) and (c),
respectively.
I 10. Amend § 363.66 to read as follows:
§ 363.66 What forms of registration are
available for book-entry savings bonds?
The forms of registration available are
single owner, owner with beneficiary,
and primary owner with secondary
owner.
§§ 363.70 and 363.71 [Removed and
reserved]
I 11. Remove and reserve §§ 363.70 and
363.71.
I 12. Revise § 363.82 to read as follows:
§ 363.82 May an account owner deliver a
book-entry savings bond purchased as a
gift to a minor?
An account owner may deliver a bond
purchased as a gift to a minor. The
account owner must deliver the security
to the minor’s linked account. Once
delivered, the bond will be under the
control of the custodian of the minor’s
account. (See § 363.27.)
§§ 363.85 [Removed and reserved]
I 13. Remove and reserve § 363.85.
§ 363.90 [Amended]
I 14. Amend § 363.90 by removing
paragraph (a)(3) and redesignating
paragraphs (a)(4), (5), and (6) as
paragraphs (a)(3), (4), and (5),
respectively.
§ 363.96 [Amended]
I 15. Amend § 363.96 by removing
paragraph (e).
Dated: January 13, 2004.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 04–1039 Filed 1–13–04; 3:11 pm]
BILLING CODE 4810 –39–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[CGD05–04–002]
Drawbridge Operation Regulations;
Intracoastal Waterway, Beach
Thorofare, NJ
AGENCY: Coast Guard, DHS.
ACTION: Notice of temporary deviation
from regulations.
SUMMARY: The Commander, Fifth Coast
Guard District, has approved a
temporary deviation from the
regulations governing the operation of
the Margate Bridge across Beach
Thorofare, at Intracoastal Waterway
(ICW) mile 74.0, located in Margate,
New Jersey. From midnight on January
4, 2004, through midnight on February
5, 2004, this deviation allows the bridge
to remain closed to navigation. This
closure is necessary to facilitate
emergency mechanical and structural
repairs.
DATES: This deviation is effective from
midnight on January 4, 2004, through
midnight on February 5, 2004.
FOR FURTHER INFORMATION CONTACT :
Terrance Knowles, Environmental
Protection Specialist, Fifth Coast Guard
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