PART 375—MARKETABLE TREASURY SECURITIES REDEMPTION OPERATIONS Authority: 5 U.S.C. 301; 31 U.S.C. 321; 31 U.S.C. 3111; 12 U.S.C. 391. Source: 65 FR 3116, Jan. 19, 2000, as amended at 91 FR 15541, Mar. 30, 2026, unless otherwise noted. Subpart A—General Information § 375.0 What authority does the Treasury Department have to redeem its securities? Section 3111 of title 31 of the United States Code authorizes the Secretary of the Treasury to issue obligations under 31 U.S.C. chapter 31 to buy, redeem, or refund, at or before maturity, outstanding bonds, notes, certificates of indebtedness, Treasury bills, or savings certificates of the U.S. Government and, under regulations of the Secretary of the Treasury in this chapter, to use money received from the sale of an obligation and other money in the general fund of the Treasury Department in making such purchases, redemptions, or refunds. § 375.1 Where are the rules for the redemption operation located? The provisions in this part and the redemption operation announcement govern the redemption of marketable Treasury securities under 31 U.S.C. 3111. (See § 375.10.) § 375.2 What special definitions apply to this part? The definitions in 31 CFR part 356 govern this part except as follows: Accrued interest Bank Customer FedTrade Maximum redemption amount Minimum offer amount Multiple Offer Price Redemption operation Security Settlement Settlement amount Settlement date Submitter Tender We us You § 375.3 What is the role of the Federal Reserve Bank of New York in this process? As fiscal agent of the United States, the Federal Reserve Bank of New York performs various activities necessary to conduct a redemption operation under this part. These activities may include but are not limited to: (a) Accepting and reviewing tenders; (b) Calculating redemption operation results; (c) Issuing notices of redemptions; (d) Accepting deliveries of Treasury securities at settlement; and (e) Processing the Treasury payment for securities delivered at settlement. Subpart B—Offering, Certifications, and Delivery § 375.10 What is the purpose of the redemption operation announcement? We provide public notice that we are redeeming Treasury securities by issuing a redemption operation announcement. This announcement lists the details of each proposed redemption operation, including the maximum redemption amount, the range of maturities of eligible securities, descriptions of the securities that fall within that maturity range, and the redemption operation and settlement dates. The redemption operation announcement and this part specify the terms and conditions of a redemption operation. If anything in the redemption operation announcement differs from anything in this part, the redemption operation announcement will apply. Accordingly, you should read the applicable redemption operation announcement along with this part. § 375.11 Who may participate in a redemption operation? (a) Submitters. (1) An institution that the Federal Reserve Bank of New York has designated as a primary dealer; or (2) An entity approved by the Treasury Department to participate directly in redemption operations. (b) Others. § 375.12 How do I submit an offer? As a submitter, you must submit an offer in a tender to the Treasury Department via the Federal Reserve Bank of New York. You must submit any tenders in an approved format and the Bank must receive them prior to the closing time stated in the redemption operation announcement. If we do not receive your tenders timely, we will reject them. Your tenders are binding on you after the closing time specified in the redemption operation announcement. You are responsible for ensuring that we receive your tenders on time. We will not be responsible in any way for any unauthorized tender submissions or for any delays, errors, or omissions in submitting tenders. § 375.13 What requirements apply to offers? (a) General. (b) Price format. (c) Maximum number of offers. § 375.14 Do I have to make any certifications? By submitting a tender offering a security or securities for sale, you are deemed to certify to us that: (a) You are in compliance with this part and the redemption operation announcement; (b) You will not use any redemption operation information from FedTrade as a basis for any transaction unless: (1) such information is available to you from another source at the time of the transaction; or (2) such transaction is solely for the purpose of hedging specific, identifiable risks to you arising from the acceptance or rejection of your offers in a Treasury redemption operation or unwinding hedges of specific, identifiable risks to you arising from securities you redeem in a Treasury redemption operation; and (c) You will not convey any redemption operation information from FedTrade to another person or entity except for the purpose of effectuating a transaction permitted under paragraph (b) of this section. § 375.15 Who is responsible for delivering securities? As a submitter, you are responsible for delivering any securities we accept in the redemption operation, including any securities for which you submitted offers on behalf of others. (See § 375.23.) All securities you deliver must be free and clear of all liens, charges, claims, and any other restrictions. Subpart C—Determination of Redemption Operation Results; Settlement § 375.20 When will the Treasury Department decide which offers to accept? We will determine which offers or portions of offers to accept after the closing time for receipt of tenders. All such determinations will be final. § 375.21 How will the Treasury Department announce the redemption operation results? We will make the redemption operation results available on our website. For each operation, the results generally will include information such as the amounts offered and accepted and pricing information. § 375.22 Will I receive confirmations and, if I am submitting offers for others, do I have to provide confirmations? (a) Confirmations to submitters. (b) Confirmation of customer offers. § 375.23 How does the securities delivery process work? If any of the offers you submitted are accepted, you must transfer the correct book-entry Treasury securities in the correct par amount against the correct settlement amount on the settlement date. You must deliver the securities to the account specified in the redemption operation announcement. § 375.24 Does the Treasury Department prorate offers at the highest accepted price for a particular security? Offers at the highest accepted price for a particular security may be accepted on a prorated basis. Subpart D—Miscellaneous Provisions § 375.30 Does the Treasury Department have any discretion in this process? (a) We have the discretion to: (1) Accept or reject any offers or tenders submitted in a redemption operation; (2) Redeem less than the maximum redemption amount specified in the redemption operation announcement; (3) Add to, change, or waive any provision of this part; or (4) Change the terms and conditions of a redemption operation. (b) Our decisions under this part are final. We will provide a public notice if we change any redemption operation provision, term, or condition. § 375.31 What could happen if someone does not fully comply with the redemption operation rules or fails to deliver securities? (a) General. (b) Liquidated damages.