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Treasury Suspends Sales of State and Local Government Series Securities

EMBARGOED FOR RELEASE AT 2:00 P.M.

October 14, 2004

The Treasury Department announced the suspension of sales of State and Local Government series (SLGS) nonmarketable Treasury securities until further notice, effective as of 3:00 p.m., Eastern Daylight Time today, October 14, 2004. 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 3:00 p.m., EDT, October 14, 2004, 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, 1995-47 I.R.B. 12 which is available in the “Tax Exempt Bond Tax Kit” which can be found by following the link labeled “TEB Tax Kit” at www.irs.gov/bonds.