### Question
How does the law define book-entry security?


### Answer
Under *26 CFR § 1.1012-1*, **book-entry security** is defined as:

> a transferable Treasury bond, note, certificate of indebtedness, or bill issued under the Second Liberty Bond Act (31 U.S.C. 774(2)), as amended, or other security of the United States (as defined in paragraph (c)(7)(iii)(*b*) of this section) in the form of an entry made as prescribed in 31 CFR Part 306, or other comparable Federal regulations, on the records of a Reserve Bank.

#### Citation:
  - *26 CFR § 1.1012-1*
