31 CFR § 363.40 - How are payments of principal and interest made?

---
identifier: "/us/cfr/t31/s363.40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "31 CFR § 363.40 - How are payments of principal and interest made?"
title_number: 31
title_name: "Money and Finance: Treasury"
section_number: "363.40"
section_name: "How are payments of principal and interest made?"
chapter_name: "FISCAL SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "BUREAU OF THE FISCAL SERVICE"
part_number: "363"
part_name: "REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT"
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; 12 U.S.C. 391; 31 U.S.C. 3102,  31 U.S.C. 3121,"
regulatory_source: "67 FR 64286, Oct. 17, 2002, unless otherwise noted."
cfr_part: "363"
---


# 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.

[70 FR 57443, Sept. 30, 2005]