Security Liquidation is a process in which the Bureau of the Fiscal Service can convert securities (obligations) that have been received by Federal Executive Agencies into cash. The Department of the Treasury delegated this program to the Bureau of the Fiscal Service. Through this redelegation authority, the Security Liquidation process is accomplished by the Fiscal Service in the Office of Public Debt Accounting, Debt Accounting Branch (DAB).
The securities include:
- Bonds, notes or other securities acquired by the Secretary of the Treasury for the United States Government
- Securities delivered to the Secretary by a Federal Executive Agency
Securities received by an agency for any of the following reasons may be liquidated by DAB:
- Internal Revenue Service (IRS) levy
- Bankruptcy, Settlement or Other Litigation
- Donations to a Federal Executive Agency
Physical securities must be sent to Merrill Lynch, FBO: U.S. Department of the Treasury by registered mail or special messenger. Electronic securities may be wired to the Department of the Treasury’s broker-dealer account. Select “Contact Us” in the main navigation above to obtain the phone number you’ll need to call for more information on how to wire the security.
View the proceeds process and methods of payment.
If DAB is unable to liquidate the security after a reasonable amount of time, it will be returned along with an explanation to the Federal Executive Agency.