---
kind: "section"
citation: "31 C.F.R. § 363.40"
title: "31"
number: "363.40"
heading: "How are payments of principal and interest made?"
url: "https://uscodex.org/cfr/31/363.40"
---

# §363.40. How are payments of principal and interest made?

- (a) **Payment of a savings bond that has reached final maturity.** We will purchase a zero-percent certificate of indebtedness in your TreasuryDirect ® account using the proceeds of a matured savings bond.
- (b) **Payments of interest and principal (except a savings bond that has reached final maturity).**
  - (1) **We provide two methods of receiving payments of principal and interest—**
    - (i) Payment to your account at a financial institution by the ACH method, or
    - (ii) **Payment to your TreasuryDirect account to purchase a zero-percent certificate of indebtedness.**
  - (2) You may select different payment destinations for principal and interest for a marketable Treasury security. You may change your payment destination at any time, unless the security is in the closed book period. (See [§ 363.210](/cfr/31/363.210.md).)
  - (3) If we are unable to deliver a payment, we will use the payment to purchase a zero-percent certificate of indebtedness in your TreasuryDirect account.

## Notes

### Amendments

[70 FR 57443, Sept. 30, 2005]

### Authority

Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3102, et seq.; 31 U.S.C. 3121, et seq.

### Source

Source: 67 FR 64286, Oct. 17, 2002, unless otherwise noted.

### Amendments

[70 FR 57443, Sept. 30, 2005]