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Treasury Suspends Sales of State and Local Government Series Securities

FOR IMMEDIATE RELEASE

May 14, 2002

The Treasury Department announced today the suspension of sales of State and Local Government series (SLGS) nonmarketable Treasury securities until further notice, effective May 15, 2002. 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 through May 14, 2002 will be issued on the date requested to the extent possible. New subscriptions for time deposit SLGS will continue to be accepted but will be held and not acted upon 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” at www.irs.gov/bonds.