{"data":{"id":"us/31-cfr-appendix-a-to-part-344","jurisdiction":"us","citation":"31 CFR Appendix A to Part 344","heading":"Appendix A to Part 344—Early Redemption Market Charge Formulas and Examples for Subscriptions From December 28, 1976, Through October 27, 1996","body":"(a) The amount of the market charge for bonds and notes subscribed for before October 28, 1996 can be determined by the following formula:\n(b) The application of this formula can be illustrated by the following example:\n(1) Assume that a $600,000 note is issued on July 1, 1985, to mature on July 1, 1995. Interest is payable at a rate of 8% on January 1 and July 1.\n(2) Assume that the note is redeemed on February 1, 1989, and that the current borrowing rate for Treasury at that time for the remaining period of 6 years and 150 days is 11%.\n(3) The increased annual borrowing cost is $18,000. ($600,000)x(11%-8%)\n(4) The market charge is computed as follows:\n(c) The amount of the market charge for certificates of indebtedness subscribed for before October 28, 1996 can be determined by the following formula:\n(d) The application of this formula can be illustrated by the following example:\n(1) Assume that a $50,000 certificate of indebtedness is issued on March 1, 1987, to mature on November 1, 1987. Interest is payable at a rate of 10%.\n(2) Assume that the certificate of indebtedness is redeemed on July 1, 1987, and that the current borrowing cost to Treasury for the 123-day period from July 1, 1987, to November 1, 1987, is 11.8%.\n(3) The increased annual borrowing cost is $900. ($50,000) × (11.8%−10%)\n(4) The market charge is computed as follows:","path":["Title 31—Money and Finance: Treasury","Subtitle B—Regulations Relating to Money and Finance","CHAPTER II—FISCAL SERVICE, DEPARTMENT OF THE TREASURY","SUBCHAPTER A—BUREAU OF THE FISCAL SERVICE","PART 344—U.S. TREASURY SECURITIES—STATE AND LOCAL GOVERNMENT SERIES"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-31.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:25Z","sha256":"fa244bd8fdc39649378420d08653fbdc2eeb4bc2011a9ddd1385f15cb25fc8ad","source_id":"us-cfr","stale":true,"prev":"us/31-cfr-344.9","next":"us/31-cfr-appendix-b-to-part-344"},"notice":"GroundRules: Original legal text. Not legal advice."}