[Federal Register Volume 62, Number 156 (Wednesday, August 13, 1997)] [Rules and Regulations] [Pages 43283-43284] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-21405] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 357 [Department of the Treasury Circular, Public Debt Series, No. 2-86] Regulations Governing Book-Entry Treasury Bonds, Notes and Bills AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury is publishing a final rule to its TRADES Commentary, (Appendix B of 31 CFR Part 357), to update the list of states that have enacted Revised Article 8 of the Uniform Commercial Code and that were the subject of prior notices published by Treasury in the Federal Register. Appendix B provides explanatory information regarding the regulations governing Treasury securities held in the commercial book-entry system, referred to as the Treasury/ Reserve Automated Debt Entry System (``TRADES''). EFFECTIVE DATE: August 13, 1997. FOR FURTHER INFORMATION CONTACT: Walter T. Eccard, Chief Counsel (202) 219-3320, or Cynthia E. Reese, Deputy Chief Counsel, (202) 219-3320. Copies of the final rule are being made available for downloading from the Bureau of the Public Debt home page at the following address: www.publicdebt.treas.gov. SUPPLEMENTARY INFORMATION: The final rule to govern Treasury securities held in the commercial book-entry system, or TRADES, was published August 23, 1996 (61 FR 43626), and was effective January 1, 1997. Appendix B of the rule, the TRADES Commentary, addresses the limited scope of federal preemption of state law under Sec. 357.11 of the Section-by Section Analysis. If the choice of law rules set forth in TRADES lead to the application of the law of a state that has not yet adopted Revised Article 8 of the Uniform Commercial Code (Revised Article 8) then TRADES applies Revised Article 8 (as approved by the American Law Institute and the National Conference of Commissioners on Uniform State Laws, or the ``uniform version''). Treasury indicated in the preamble to the final rule that if a state passes a version of Revised Article 8 that is substantially identical to the uniform version, then reference to the uniform version would no longer be required. In the TRADES Commentary, Treasury further stated that it had reviewed the laws of those states which had adopted Revised Article 8 as of the date of the publication of the final rule and had concluded that they were substantially identical to the uniform version. Those 28 states were enumerated and listed by name alphabetically in a footnote. Treasury further indicated that it would publish in the Federal Register a notice setting forth its conclusion as to whether additional state enactments of Revised Article 8 are ``substantially identical'' to the uniform version for purposes of the regulations. Treasury has published such notices with respect to California (62 FR 26, January 2, 1997) and the District of Columbia (62 FR 34010, June 18, 1997). The TRADES Commentary further states that Treasury will, on an annual basis, amend the Commentary (Appendix B) to reflect subsequent enactments. Accordingly, this final rule amends Appendix B to reflect the addition of California and the District of Columbia to the list of states enumerated therein. In addition we are making a technical amendment that corrects the footnote in Appendix B to the rule we published in 61 FR 43626, August 23, 1996. [[Page 43284]] Procedural Requirements This final rule does not meet the criteria for a ``significant regulatory action'' pursuant to Executive Order 12866. The notice and public comment procedures requirements of the Administrative Procedure Act are inapplicable, pursuant to 5 U.S.C. 553(a)(2). As no notice of proposed rulemaking was required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) do not apply. There are no collections of information contained in this final rule. Therefore, the Paperwork Reduction Act does not apply. List of Subjects in 31 CFR Part 357 Bonds, Electronic funds transfer, Federal Reserve System, Government securities, Incorporation by reference, Securities. For the reasons set forth in the preamble, Title 31, Chapter II, Subchapter B, Part 357 is amended as follows: PART 357--REGULATIONS GOVERNING BOOK-ENTRY TREASURY BONDS, NOTES AND BILLS 1. The authority citation for Part 357 continues to read as follows: Authority: 31 U.S.C. chapter 31; 5 U.S.C. 301; 12 U.S.C. 391. Appendix B to Part 357--[Amended] 2. Appendix B to part 357 is amended by redesignating the second footnote 9 through footnote 17 as footnote 10 through 18. 3. Appendix B to part 357 is further amended in the Section-by- Section Analysis for Sec. 357.11(b), in the third paragraph, by revising the fourth sentence and redesignated footnote 11 to read as follows: Appendix B to Part 357--TRADES Commentary * * * * * Section-by-Section Analysis * * * * * Section 357.11--Law Governing Other Interests * * * * * (b) Limited Scope of Federal Preemption * * * * * * * * Treasury has determined that the versions of Article 8 passed by 30 11 states that have enacted Article 8 meet this standard. * * * \11\ Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming. --------------------------------------------------------------------------- Dated: July 17, 1997. Gerald Murphy, Fiscal Assistant Secretary. [FR Doc. 97-21405 Filed 8-12-97; 8:45 am] BILLING CODE 4810-39-W