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e-CFR data is current as of September 17, 2020

Title 31Subtitle BChapter IISubchapter APart 363Subpart D → Subject Group


Title 31: Money and Finance: Treasury
PART 363—REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT
Subpart D—Zero-Percent Certificate of Indebtedness


Zero-Percent Certificate of Indebtedness

§363.141   How do I purchase a zero-percent certificate of indebtedness?

(a) Primary and linked accounts. You may purchase a zero-percent certificate of indebtedness through one or more of the following four methods:

(1) Payroll deduction, in which your employer sends funds through the ACH method to your TreasuryDirect® account;

(2) Deposit by your financial institution, in which your financial institution sends funds by the ACH method to your TreasuryDirect® account on a recurring or one-time basis;

(3) Through the Buy Direct function of your TreasuryDirect® account, in which you direct us to debit funds from your financial institution account to purchase a zero-percent certificate of indebtedness. This method is limited to an amount no greater than $1000 per transaction. When you use the Buy Direct function to debit funds to purchase all or a portion of a zero-percent certificate of indebtedness, you will not be permitted to schedule a redemption to your financial institution from the zero-percent certificate of indebtedness within five business days after the settlement date of the debit entry; and

(4) By using the proceeds from the redemption of a savings bond, the proceeds of a maturing security, or an interest payment from a security to purchase a zero-percent certificate of indebtedness.

(b) Payroll savings plan. You may purchase a payroll zero-percent certificate of indebtedness for your payroll savings plan through payroll deduction, in which your employer sends funds through the ACH method to your TreasuryDirect® payroll savings plan, or through a credit using the ACH method by your financial institution, in which your financial institution sends funds by the ACH method to your TreasuryDirect® payroll savings plan.

[75 FR 70816, Nov. 19, 2010]

§363.142   When is a zero-percent certificate of indebtedness issued?

A zero-percent certificate of indebtedness is issued the business day after the purchase transaction is made.

[69 FR 50309, Aug. 16, 2004. Redesignated at 75 FR 70816, Nov. 19, 2010]

§363.143   How do I purchase a security using the redemption proceeds of my zero-percent certificate of indebtedness?

You may purchase an eligible security by redeeming all or a portion of your zero-percent certificate of indebtedness and applying the proceeds toward the purchase of another eligible security. To do this, your zero-percent certificate of indebtedness must be of sufficient value to cover the cost of the security. If you are paying for a security using the redemption proceeds of a zero-percent certificate of indebtedness, you must pay the full amount of the purchase price of the security using the redemption proceeds.

[69 FR 50309, Aug. 16, 2004. Redesignated at 75 FR 70816, Nov. 19, 2010]

§363.144   Can I redeem my zero-percent certificate of indebtedness?

You can redeem part or all of the value of your zero-percent certificate of indebtedness at any time, with one exception: if you purchased all or a portion of your zero-percent certificate of indebtedness through a debit using the ACH method, you may not schedule a redemption from your zero-percent certificate of indebtedness within five business days after the date of the debit entry.

[70 FR 57444, Sept. 30, 2005. Redesignated at 75 FR 70816, Nov. 19, 2010]

§363.145   May I delete a pending transaction involving a zero-percent certificate of indebtedness?

(a) You may delete a pending purchase of a zero-percent certificate of indebtedness initiated from your TreasuryDirect® account.

(b) You may delete a pending purchase of a security using a zero-percent certificate of indebtedness as payment.

(c) You may not delete a pending redemption of all or part of the value of a zero-percent certificate of indebtedness.

[69 FR 50309, Aug. 16, 2004. Redesignated at 75 FR 70816, Nov. 19, 2010]

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