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Treasury Suspends Sales of State and Local Government Series Securities

FOR IMMEDIATE RELEASE

February 19, 2003

The Treasury Department announced today the suspension of sales of State and Local Government series (SLGS) nonmarketable Treasury securities until further notice, effective immediately. This suspension is necessary because the statutory debt ceiling has not been raised. The suspension will facilitate Treasury's managing debt subject to limit.

The suspension applies to demand deposit and time deposit securities. Subscriptions for SLGS received by the Bureau of the Public Debt prior to this announcement will be issued on the date requested. New subscriptions for SLGS will not be accepted until the suspension is lifted. The Internal Revenue Service has issued guidance to affected entities in Rev. Proc. 95-47, 1995-2 C.B. 417, which is available in the “Tax Exempt Bond Tax Kit” which can be found by following the link labeled “More Topics for Tax Exempt Bonds” at www.irs.gov/bonds.