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BECCS & CUBES

NOTE: On November 15, 2006, the last bond eligible for conversion to BECCS and CUBES was called, bringing the conversion program to an end. Our website will continue to provide information about the program for historical purposes only.

These U.S. Treasury programs convert stripped bearer securities into book-entry securities that can be held in commercial book-entry accounts with brokers and financial institutions.

BECCS - (BEarer Corpora ConversionS) Allows holders of the principal portions, or corpora, of U.S. Treasury bearer securities that have been stripped of all noncallable coupons to convert their bearer principal securities to book-entry form.

CUBES - (Coupons Under Book-Entry Safekeeping) Allows holders of detached bearer coupons to convert their securities to book-entry form. Only full dollar amounts can be held in CUBES; amounts of less than one dollar per CUBES CUSIP will not be credited to an account.

NOTE: Once BECCS and CUBES have been converted to book-entry form, return conversion to physical form is prohibited.

Conditions for Conversion

Bearer corpora and detached bearer coupons will not be accepted if they are submitted:

  1. Within 30 days of their maturity.
  2. If a call provision has been invoked within 30 days of the securities call date.

Transferable
For a callable corpus to be eligible for conversion to a transferable BECCS security:

  • All associated callable coupons must be submitted with the corpus.
  • The callable coupons will be linked to the corpus when converted to book entry.
  • Once linked, callable coupons may not be transferred separately.
  • Noncallable coupons will be converted to transferable CUBES securities.

Nontransferable
If a callable corpus is submitted without all of its callable coupons:

  • The corpus will be converted to a nontransferable BECCS security.
  • Any callable coupons submitted with the corpus will be converted to nontransferable CUBES securities.

For further BECCS and CUBES information, rules and regulations see 31 CFR, Part 358.