CFR > Title 31 - Money and Finance: Treasury > SUBTITLE B—Regulations Relating to Money and Finance > CHAPTER II—FISCAL SERVICE, DEPARTMENT OF THE TREASURY (parts 200 to 391) > SUBCHAPTER B—BUREAU OF THE PUBLIC DEBT (parts 306 to 391) > PART 363—REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT > SUBPART B—General Provisions Governing Securities Held in TreasuryDirect (§363.7-363.8 to §363.48-363.49) > 363.40—How are payments of principal and interest made?

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.

Code of Federal Regulations

[70 FR 57443, Sept. 30, 2005]