31 CFR § 356.34 - What could happen if someone does not fully comply with the auction rules or fails to pay for securities?

---
identifier: "/us/cfr/t31/s356.34"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "31 CFR § 356.34 - What could happen if someone does not fully comply with the auction rules or fails to pay for securities?"
title_number: 31
title_name: "Money and Finance: Treasury"
section_number: "356.34"
section_name: "What could happen if someone does not fully comply with the auction rules or fails to pay for securities?"
chapter_name: "FISCAL SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "BUREAU OF THE FISCAL SERVICE"
part_number: "356"
part_name: "SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, FISCAL SERVICE SERIES NO. 1-93)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 31 U.S.C. 3102,  12 U.S.C. 391."
regulatory_source: "69 FR 45202, July 28, 2004, unless otherwise noted."
cfr_part: "356"
---


# 356.34 What could happen if someone does not fully comply with the auction rules or fails to pay for securities?

(a) *General.* If a person or entity fails to comply with any of the auction rules in this part, we will consider the circumstances and take what we deem to be appropriate action. This could include barring the person or entity from participating in future auctions under this part. We also may refer the matter to an appropriate regulatory agency.

(b) *Liquidated damages.* If you fail to pay for awarded securities in a timely manner, we may require you to pay liquidated damages of up to one percent of the par amount of securities we awarded to you. Our use of this liquidated damages remedy does not preclude us from using any other appropriate remedy.