Sec. 344.2

(c) Payment.

(1) Interest computation and payment dates. Interest on a certificate is computed on an annual basis and is paid at maturity with the principal. Interest on a note or bond is paid semi-annually. The government body specifies the first interest payment date, which must occur any time between thirty days and one year of the date of issue, and the final interest payment date must coincide with the maturity date of the security. Interest for other than a full semi-annual interest period is computed on the basis of a 365-day or 366-day year (for certificates) and on the basis of the exact number of days in the half-year (for notes and bonds). See the appendix to subpart E of Part 306 of this chapter for rules regarding computation of interest.

(2) Method of payment. Payment can be made by the Automated Clearing House method (ACH) for the owner's account at a financial institutiondesignated by the owner. Redemptions prior to maturity are paid by Fedwire. To the extent applicable, provisions of Sec. 357.26 on ``Payments'', set forth in 31 CFR Part 357 and provisions of 31 CFR Part 370, shall govern ACH payments made under this offering. The Department of the Treasury can employ alternate payment procedures, instead of ACH, in any case, or class of cases where operational considerations necessitate such action.