[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR359.12]

[Page 445]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 359_OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I--Table of 
Contents
 
                      Subpart A_General Information
 
Sec.  359.12  What happens in deflationary conditions?

    In certain deflationary situations, the semiannual inflation rate 
may be negative. Negative semiannual inflation rates will be used in the 
same way as positive semiannual inflation rates. However, if the 
semiannual inflation rate is negative to the extent that it completely 
offsets the fixed rate of return, the redemption value of a Series I 
bond for any particular month will not be less than the value for the 
preceding month.