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Proceeds from the Sale of a Security

After the sale of the security, the Special Assets and Liabilities Division will notify the Federal Executive Agency of the proceeds. The net proceeds will be credited to the agency’s Agency Location Code (ALC).

Method of Payment

The preferred method of payment for the proceeds from the sale of a security is the Fedwire Deposit System via Credit Gateway and Collections Information Repository (CIR). The net proceeds will be deposited in the ALC shown in the Letter of Intent. To help the agency facilitate the acceptance of the net proceeds, the Fedwire entry provides a tracer message that includes:

  • A unique reference number/title
  • Agency contact
  • Phone number

The Special Assets and Liabilities Division provides this information to the broker-dealer.

Notification

The Special Assets and Liabilities Division will provide a receipt for the proceeds through fax or e-mail to the agency’s contact once the wire has been completed.

Note: On rare occasions, cash dividends, security dividends, or additional shares of securities received as a result of a stock split are received in our broker-dealer account while we’re in the process of liquidating the security. In the event that this happens, the additional shares will be liquidated and the net proceeds credited to the agency’s ALC.