### Question
How is the "book-entry security" defined?


### Answer
The term **book-entry security** is defined in *26 CFR § 1.1012-1* as follows -

> 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*
