View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FE D E R A L R E SE R V E BANK
O F NEW YORK
Fiscal Agent of the United States

r Circular No. 3 1 6 2 1
t December 12,1946 J

TRANSACTIONS IN MARKETABLE SECURITIES
OF THE UNITED STATES GOVERNMENT

To all Banking Institutions and Others Concerned
in the Second Federal Reserve District:

This circular contains information and instructions relative to
transactions with this bank, as fiscal agent o f the United States, involv­
ing United States Treasury bonds, notes, certificates o f indebtedness,
and bills ; and is furnished to banking institutions and others concerned
to acquaint them with the procedure and requirements in connection
with such transactions.
A detailed table o f contents appears on the follow ing page.
W e believe that this circular will be particularly helpful to those
persons in banking institutions and other organizations who may
receive requests fo r information regarding transactions in marketable
government securities, if they have copies available for ready reference.
Additional copies will be furnished upon request.




A l l a n S protjl,

President

,

TABLE OF CONTENTS
Paragraph
Topic

Number

F O R M S O F M A R K E T A B L E S E C U R IT IE S
Types of marketable securities ...............................................................................................................................................1
Securities in bearer f o r m .......................................................................................................................................................... 2
Bonds in registered form ........................................................................................................................................................ 3
T R A N S P O R T A T IO N C H A R G E S A N D R IS K S
Shipments on original issue .............................................................................................................................................
4
Shipments of bearer securities other than on original issue .................................................................................
5
Shipments of registered bonds other than on original issue ...................................................................................
6
Shipments to this bank .....................................................................................................................................................
7
Shipments between this bank and Treasury .................................................................................................................... 8
D E N O M IN A T IO N A L E X C H A N G E
Privilege of exchange .............................................................................................................................................................. 9
Exchange of bearer securities ..................................................................................................................... ................ ..... 10
Exchange o f registered bonds ........................................................................................................................................ ..... 11
O TH ER EXCHANGES
Exchange of bearer for registered bonds ..........................................................................................................................12
Exchange of registered for bearer bonds ..................................................................................................................... .....13
T R A N S F E R O F R E G IS T E R E D B O N D S ....................................................................................................................... .....14
A S S IG N M E N T S O F R E G IS T E R E D B O N D S F O R T R A N S F E R O R E X C H A N G E
Limitations ..................................................................................................................................................................................15
Assignments in general ............................................................................................................... ..................................... .....16
Witnessing officers ....................................................................................................................................................................17
Manner of witnessing .......... ....................................................................................................................................................18
Individual as owner ............................................................................................................................................................. .... 19
T w o or more individuals as owners .............. ............................................................................................................. .....20
Signature by mark ............................................................................................................................................................... .....21
Appointment of attorney-in-fact by individual ............................................................................................................. .... 22
Estate of deceased owner under administration ........................................................................................................ .... 23
Estate of deceased owner not administered ............................................................................................................... .....24
Discrepancy in names ......................................................................................................................................................... .... 25
Administrator, executor or trustee as o w n e r ................................................................................................................. .... 26
Legal guardian as owner ................................................................................................................................................... .... 27
Minor as owner .................................................... .................................................................................................................. 28
Natural guardian as owner ................................................................................................................................................. .... 29
Assignment after majority ................................................................................................................................................. .... 30
Corporation as owner
General ............................................................................................................................................................................... 31
Resolutions ..................................................................................................................................................................... .... 32
Powers of attorney ................................................................................................................................................... ...... 33
Unincorporated association as owner ............................................................................................................................. .... 34
Name or title of officer in inscription ..................................................................................................................... .... 35
Partnership as o w n e r ........................................................................................................................................................... .... 36
Bonds registered in trade names ................................................................................................................................... .... 37
Bonds registered in name of adjudicated bankrupt or insolvent ..............................................................................38
T R A N S F E R S O F S H O R T -T E R M S E C U R IT IE S B Y W IR E
Transfers authorized ................................................................................................................................................................39
Cities between which transfers may be made ....................................................................................................................40
Limitations ............................................................................................................................................................................. ....41
Transfers from New Y ork ............................................................................................................................................... ....42
Transfers to New Y ork . .................................................................................................................................................... ....43
L O S T , S T O L E N O R D E S T R O Y E D S E C U R IT IE S
General ......................................................................................................................................................................................... 44
Lost or stolen securities in bearer f o r m .......................................................................................................................... ... 45
Mutilated or destroyed securities in bearer f o r m .......................................................................................................... ... 46
Lost, stolen or destroyed registered bonds .................................................................................................................... ... 47
Registered bonds payable to bearer .................................................................................................................................. ... 48
P A Y M E N T O R R E D E M P T IO N
Procedure and forms ............................................................................................................................................................... 49
R E V IS IO N O F T H IS C IR C U L A R




....................................................................................................................................

50

TR A N SA C T IO N S IN M A R K E T A B L E SECU RITIES
O F TH E U N ITED STA TE S G O V ERN M E N T

The material in this circular is based largely on regulations issued by the Treasury
Department relating to the more usual types o f transactions in marketable securities o f the
United States Government; and it is therefore suggested that questions concerning cases which
do not appear to be covered by this circular be referred to this bank before action is taken.

FORMS OF MARKETABLE SECURITIES
Types of marketable securities

1. Marketable securities o f the United States Government include Treasury bonds, notes,
certificates o f indebtedness and bills. A ll transactions involving the issue, exchange, transfer
or redemption o f such securities are conducted by this bank as fiscal agent o f the United States.*
Securities in bearer form

2. A ll securities referred to in the preceding section are issued in bearer form. Title to
securities payable to bearer passes by delivery without endorsement. Interest on bearer bonds
and notes, and on certificates o f indebtedness issued prior to September 1,1946, is payable by the
Treasury Department, or any Federal Reserve Bank or branch as fiscal agent o f the United
States, upon presentation and surrender o f the interest coupons appertaining thereto as they
severally mature. In the case o f certificates o f indebtedness issued on or after September 1,
1946, interest is paid with the principal at maturity. Treasury bills are sold on a discount basis
and are paid at face amount without interest at m aturity; income on Treasury bills represents
the difference between the purchase price and the sale price or maturity value.
Bonds in registered form

3. Treasury bonds are available in registered form, as well as in bearer form . A regis­
tered bond is payable to the registered owner whose name is inscribed thereon, or to one
holding under an assignment executed by the registered owner or his duly authorized represent­
ative, in the manner described in the part o f this circular (pages 6-11) entitled “ Assign­
ments o f Registered Bonds fo r Transfer or Exchange.” Transfers o f registered Treasury
bonds are recorded on the books o f the Treasury Department, but the books are closed against
the transfer or exchange o f such bonds fo r one full month preceding each interest payment
date. Bonds which are to reach the Treasury Department before the closing o f the books must
be presented to this bank at least two business days before the closing date. Interest on
registered bonds is paid by Treasury check drawn to the order o f the registered owner and
mailed to him at his address o f record. In the event o f a change o f address, notification should
be submitted prom ptly to the Treasury Department, Division of Loans and Currency, W ash­
ington 25, D. C., on Form P.D. 345, copies o f which will be furnished by this bank upon request.

*
This circular does not relate to transactions involving United States Savings Bonds, Treasury Savings Notes, 2%
Depositary Bonds, Armed Forces Leave Bonds, or any other Government securities which are not marketable.




TRANSPORTATION CHARGES AND RISKS
Shipments on original issue

4.
Information regarding the shipment o f United States Government securities, upon
original issue or in exchange fo r temporary certificates, at the risk and expense of the United
States, is contained in our current circular entitled “ Safekeeping, Handling and Shipment of
Securities, ’ * sent to all member and nonmember banks in the Second Federal Reserve District.
That circular also refers to certain open policies for registered mail insurance held by this
bank under which shipments o f Government securities, which are not made at the risk and
expense o f the United States, may be insured at the expense o f the bank requesting a shipment
by us or making a shipment to us.
Shipments o f hearer securities other than on original issue

5.
Bearer securities to be delivered by this bank on exchange or other transaction, unless
delivered over-the-counter to the owner or his authorized representative, will be shipped by
registered mail and insured under our registered mail insurance policies, at the expense of
the owner, unless we receive written instructions to the contrary.
Shipments o f registered bonds other than on original issue

6.
Registered bonds to be delivered by this bank on exchange, transfer or other transaction,
unless delivered over-the-counter to the owner or his authorized representative, will be shipped
by registered mail without expense to, but at the risk of, the owner. Such shipments will not
be insured, unless we receive written instructions to arrange fo r insurance.

Shipments to this bank

7.
Government securities presented to this bank for exchange, transfer, redemption or
other authorized transaction, unless presented over-the-counter, must be shipped at the risk
and expense o f the owner. In this connection, attention is directed to the fact that registered
bonds assigned in blank, or assigned for exchange fo r bearer bonds without restriction on the
delivery o f such bearer bonds, are in effect payable to bearer and should be treated accordingly
when shipped.
Shipments between this bank and Treasury

8.
In all transactions referred to in this circular which require the transmission o f Gov­
ernment securities between this bank and the Treasury Department, the risk and expense o f
such transportation will be borne by the United States.

DENOMINATIONAL EXCHANGE
Privilege o f exchange

9.
Marketable Government securities may be exchanged at any time for an equal face
amount o f securities in any authorized denominations o f the same issue. Specific instructions
fo r the issue and delivery o f the new securities must accompany the securities presented for
exchange.




4

Exchange of bearer securities

10. Bearer securities presented fo r exchange o f denomination must have all matured
coupons detached and all unmatured coupons attached. The bearer securities issued in
exchange will have corresponding matured coupons detached and unmatured coupons attached.
Requests fo r denominational exchange o f bearer securities should be made on our Form G. B. 35,
copies o f which will be furnished upon request.

Exchange o f registered bonds

11. Registered bonds presented fo r exchange o f denomination do not require any assign­
ment, since the bonds issued in exchange are registered in the same form and there is no
transfer o f ownership involved. Such exchanges may be made at any time, whether or not
the transfer books are closed. Requests for denominational exchange o f registered securities
should be made on our Form G. B. 309, copies of which will be furnished upon request.

OTHER EXCHANGES
Exchange o f bearer for registered bonds

12. Bearer bonds may be exchanged for an equal face amount o f registered bonds in any
authorized denomination o f the same issue. The bonds presented must have all matured
coupons detached and all unmatured coupons attached, and the registered bonds issued in
exchange will bear interest from the last preceding interest-payment date. If, however, bearer
bonds are presented for exchange during any period when the transfer books of the issue in
question are closed, the next maturing coupon should be detached and held for collection in
ordinary course when due, and the registered bonds issued in exchange will bear interest from
the next succeeding interest payment date. Specific instructions fo r the issue and delivery o f
the registered bonds must accompany the bearer bonds presented fo r exchange. Our Form
G. B. 308, copies o f which will be furnished upon request, may be used fo r this purpose.

Exchange o f registered for bearer bonds

13. Treasury bonds in registered form may be exchanged for an equal face amount o f
bonds in bearer form in any authorized denominations o f the same issue. Registered bonds
so presented fo r exchange must be assigned by the registered owners thereof in conform ity
with the requirements set forth in the part o f this circular (pages 6-11) entitled “ Assign­
ments o f Registered Bonds fo r Transfer or Exchange.” The preferred form o f assignment is to
“ The Secretary o f the Treasury for exchange fo r coupon bonds to be delivered t o ...........................
............................................... . ” the name o f the person to whom delivery o f the bearer bonds is to
be made being inserted before completion o f the assignment. Assignments should not be made
simply to “ The Secretary o f the Treasury fo r exchange” or to “ The Secretary o f the
T reasu ry.” Specific instructions fo r the issue and delivery o f the bearer bonds to be issued
must accompany the bonds presented. Our Form G. B. 305, copies o f which will be furnished
upon request, may be used fo r this purpose. Exchanges o f registered bonds for bearer bonds
will not be made while the transfer books o f the issue in question are closed, although the
registered bonds may be presented to this bank at any time.




TRANSFER OF REGISTERED BONDS
14.
A registered Treasury bond may be transferred on the books of the Treasury Depart­
ment into the name o f another person upon presentation of the bond properly assigned in
conform ity with the requirements set forth in the following part entitled “ Assignments of
Registered Bonds for Transfer or Exchange.” Assignments fo r transfer should designate
the transferee by name. Assignments should not be made simply to “ The Secretary of
the Treasury for transfer,” or to “ The Secretary o f the Treasury.” In all cases, bonds
presented for transfer should be accompanied by specific instructions fo r the issue and delivery
o f the bonds to be issued upon the transfer. Our Form G. B. 309, copies of which will be
furnished upon request, may be used fo r this purpose. No transfers will be made while the
transfer books o f the issue in question are closed, although the bonds to be transferred may
be presented to this bank at any time.

ASSIGNMENTS OF REGISTERED BONDS FOR TRANSFER OR EXCHANGE
Limitations

15. The following instructions relate only to assignments o f registered Treasury bonds
for transfer to another name or fo r exchange into bearer bonds o f the same issue. Full infor­
mation and instructions relating to the assignment o f registered Treasury bonds fo r payment
or redemption are contained in Treasury Department Circular No. 666, dated July 21, 1941,
copies o f which will be furnished by this bank upon request.

Assignments in general

16. Assignments o f registered Treasury bonds must be executed by the registered
owner, or his authorized representative, who should appear before one o f the officers authorized
by the Secretary o f the Treasury to witness assignments, establish his identity, and in the pres­
ence o f the officer execute an assignment on the form provided on the back o f the bond. Any
assignment not made upon the bond is considered a detached assignment and will not be
recognized or accepted. I f an assignment is made by anyone other than the registered owner,
appropriate evidence o f the authority of such person to act on behalf o f the owner must be
produced and must accompany the bond, unless such evidence has already been filed with the
Treasury Department. Each assignment must be dated according to the date o f its execution
and all signatures must be made in ink.

Witnessing officers

17. Executive officers o f all banks and trust companies (and their branches) incorporated
under Federal, State, or Territorial laws, are authorized to witness assignments o f registered
Treasury bonds. A complete list o f all other officers so authorized by the Secretary o f the
Treasury will be furnished by this bank upon request. A notary public or a commissioner o f
deeds within the United States is not authorized to witness assignments o f registered Treasury
bonds fo r transfer or exchange.
Manner of witnessing

18. An executive officer o f a bank or trust company acting as witnessing officer must
affix to the assignment his official signature, title, an impression o f the seal o f the bank or
trust company, and the date o f the assignment.




6

Individual as owner

19. An assignment by an individual owner should be made in exactly the same form in
which his name is inscribed on the face o f the bond. An assignment by a woman who has
married since the bond was issued should be made in the form, “ Miss Mary Jones, now by
marriage Mrs. Mary B row n” ; no evidence o f the marriage will be required to support the
assignment. An assignment by a person whose name has been changed by court order since
the bond was issued should be in the form , “ Jung Smelt, now by court order John Sm ith” ;
a certified copy o f the court order changing the name should be submitted in support o f the
assignment.
Two or more individuals as owners

20. Bonds registered in the names o f two or more persons in substantially the form
“ John Jones and Mrs. Mary Jones,” or “ John Jones or Mrs. Mary Jones,” or “ John Jones
and Mrs. M ary Jones, or the survivor,” are deemed to be held in joint ownership, with right
o f survivorship, and during the lives o f the coowners assignments fo r transfer or exchange into
coupon bonds must be executed by all. In case o f the death o f any such coowner and upon
satisfactory p ro o f of death and survivorship, assignments may be made by the survivor or
survivors and no assignment will be required by the personal representative o f the deceased
coowner. Bonds registered in the form “ John Jones or Mrs. Mary Jones, or either o f them”
are deemed to be held in coownership, without right o f survivorship, and during the lives o f
the coowners assignments for transfer or exchange into coupon bonds must be executed by
both. In case of death of any such coowner, such an assignment must be executed by the
survivor and by the personal representative o f the deceased coowner, supported by evidence
o f appointment and qualification o f such representative as stated in paragraph 23 below. I f
the name o f any coowner has been changed, an assignment by such coowner should be executed
in the manner described in the preceding paragraph.
Signature by mark

21. A signature to an assignment made by mark (X ) must be witnessed by at least one
person in addition to the officer before whom the assignment is acknowledged; such person
should write beneath his name his complete address and the words “ Witness to the mark o f
(name o f a ssig n or)” .
A ppoin tm en t of attorney-in-fact b y individual

22. A n individual owner or coowner o f a registered Treasury bond may, by power of
attorney executed and acknowledged in the presence o f an officer authorized to witness assign­
ments o f such bonds, appoint an attorney-in-fact to assign the bonds. Form P. D. 1001 should
be used when the attorney-in-fact is to be given general power to assign any Treasury bonds
registered in the grantor’s name, and Form P. D. 1002 should be used when the power is to
be limited to the assignment o f specific b on d s; copies o f these forms will be furnished by this
bank upon request. The original power o f attorney must in all cases be submitted to this bank
to be filed with the Treasury Department. A n assignment by an attorney-in-fact should be
in the form “ John Jones, by H enry Smith, attorney-in-fact.” An attorney-in-fact may not
assign bonds to himself in his individual capacity unless the power o f attorney contains a
specific provision authorizing such assignment. An assignment made under a power o f
attorney dated more than one year prior to the date o f the assignment must be supported by
an affidavit o f the attorney stating that the grantor is still living and is not under any legal
disability and that the power o f attorney remains in force.




Estate of deceased owner under administration

23. Where a deceased registered owner has left a will which has been admitted to probate,
or has died intestate and his estate is in the process o f administration, an assignment o f bonds
registered in the name o f the deceased must be made by the executor or administrator or other
duly appointed representative o f the estate. Such an assignment should be supported by a
certificate under seal o f the court which appointed such representative, dated not more than
six months prior to the date o f the assignment, showing the appointment and qualification o f
such representative and stating that the appointment was still in force on the date of the
certificate. I f the registered owner was a resident o f the State o f New Y ork at the time o f
his death, bonds, the face amount o f which plus accrued interest, if any, exceeds $200, presented
to this bank for transfer should be accompanied by a waiver and consent from the New York
State Department o f Taxation and Finance. An assignment by such a representative should
be in the form “ Estate o f John Smith, by Henry Jones, adm inistrator’ ’. W here there are
two or more legal representatives, all must unite in the assignment unless by express statute
or decree of court or by testamentary provision some one or more o f them is authorized to
dispose o f the bonds. I f a personal representative o f a deceased owner wishes to assign bonds
to himself individually, the assignment should be supported by a certified copy o f an order of
the court having jurisdiction o f the estate, specifically identifying the bonds and authorizing
the assignments.
Estate of deceased owner not administered

24. W here a registered owner has died intestate and no legal representative o f his estate
has been, or is to be, appointed; and (1) either the gross value o f the estate, both real and
personal, does not exceed $500, or (2) administration o f the estate is not required in the state
o f the decedent’ s domicile, the person or persons entitled to the bonds under the laws of such
state may make application for exchange or transfer o f the bonds without administration.
Form P. D. 1646, copies o f which will be furnished by this bank upon request, should be used
in making such an application. The form , completed and executed in accordance with the
instructions printed thereon, should be submitted to this bank with the supporting evidence
required by such instructions, to be transmitted to the Treasury Department fo r consideration.
I f the registered owner was a resident o f the State o f New Y ork at the time o f his death, bonds,
the face amount o f which plus accrued interest, if any, exceeds $200, presented to this bank
fo r transfer should be accompanied by a waiver and consent from the New York State Depart­
ment o f Taxation and Finance. The bonds should not be assigned or submitted to this bank
until the holder has been notified that the application has been approved by the Treasury
Department, and has received instructions regarding the manner in which the assignment
is to be made.
Discrepancy in names

25. In any case in which there is a discrepancy between the name o f a deceased registered
owner as it appears on a bond, and the name by which he is described in any certificate or
other evidence submitted in support o f an assignment, an affidavit establishing the identity
o f the registered owner with the person named in such certificate or other evidence will be
required. Form P. D. 385, copies o f which will be furnished by this bank upon request, may
be used fo r this purpose, although any substantially similar form o f affidavit will be acceptable.
The notary public or other officer authorized to administer oaths, before whom such an affidavit
is executed, should affix his seal and indicate the date his commission expires; if such officer
has no seal o f office, there should be attached to the affidavit a certificate o f the appropriate
public official authenticating the officer’s authority to act on the date o f the affidavit.
Administrator, executor or trustee as owner

26. Bonds registered in the name o f an administrator, executor or trustee, in his repre­
sentative capacity, should be assigned by him in the form in which the bonds are inscribed




8

and no supporting evidence will be required, except that any assignment to such representative
in his individual capacity must be supported by a court order specifically describing the bonds
and authorizing such assignment. Assignments o f bonds registered in the title, without the
name, o f such a representative will be recognized only when accompanied by proof of the
appointment and qualification o f the representative as stated in paragraph 23 above.
Legal guardian as owner

27. Bonds registered in the name o f a legal guardian, conservator, or committee of the
estate o f a minor or incompetent, in his representative capacity, should be assigned by him
in the form in which the bonds are inscribed. Such an assignment should be supported by a
certificate under seal of the court which appointed such guardian, conservator, or committee,
dated not more than one year prior to the date o f the assignment, showing the appointment
o f such representative and stating that the appointment was still in force on the date o f the
certificate. In the event of a discrepancy between the name o f the guardian or ward as it
appears upon the bond, and as it appears in any certificate or other evidence submitted in
support o f the assignment, an affidavit o f identity should be furnished.
Minor as owner

28. W here bonds are registered in the name o f a minor without more, or in the name
o f a minor by a natural guardian as, fo r example, “ John Jones, minor, by Henry Jones, natural
guardian” , assignments fo r transfer or exchange may be made as follow s:
(a) If the entire gross value of the estate, both real and personal, of the minor exceeds $500, an
assignment during the minority may be made only by a guardian legally appointed by a court of
competent jurisdiction, or otherwise legally qualified, in the manner set forth in paragraph 27 above, or
may be made pursuant to order or decree of a court of competent jurisdiction.
(b) If the entire gross value of such estate does not exceed $500, and no legal guardian has been
appointed, and it is established to the satisfaction of the Secretary of the Treasury that the proceeds
of the bonds are necessary and are to be used for the support or education of the minor, a natural
guardian may apply for permission to assign the bonds on behalf of the minor. Form L. & C. 302,
copies of which will be furnished by this bank upon request, should be used in making such an
application. The form, completed and executed in accordance with the instructions printed thereon,
should be submitted to this bank to be transmitted to the Treasury Department for consideration. The
bonds should not be assigned or submitted to this bank until the holder has been notified that the
application has been approved, and has received instructions regarding the manner in which the
assignment is to be made. In such a case, the Treasury reserves the right to require a bond of indemnity
with satisfactory sureties.
Natural guardian as owner

29. Bonds registered in the name o f a natural guardian fo r a minor, designated either as
natural guardian or as guardian, as, fo r example, “ John Jones, natural guardian o f Henry
Jones, a m inor” , or “ John Jones, guardian o f Henry Jones, a m inor” , may be assigned by the
natural guardian under his representative title as set forth on the bond, without further proof
o f his appointment or authority to act. No assignment by a natural guardian to himself
individually will be recognized, however, unless accompanied by a certified copy o f an order or
decree o f a court o f competent jurisdiction specifically authorizing the assignment.
Assignment after majority

30. No assignment o f any bonds by the legal or natural guardian o f a minor fo r exchange,
or fo r transfer to any person other than the ward, will be recognized after notice o f the attain­
ment o f m ajority by the ward, or of the termination o f the guardianship, unless the ward joins
in such assignment. In support o f such an assignment, there should be submitted a copy of




9

tlie birth certificate of tiie ward certified under seal by the public official having custody o f the
original, or a certified copy of a finding by a court of competent jurisdiction that the ward has
attained his majority. In the event o f a discrepancy between the name o f the ward as it
appears on the bond, and as it appears in the accompanying evidence, an affidavit o f identity
should be furnished.
Corporation as owner
General

31. Bonds registered in the name of a corporation may be assigned by one or more officers
authorized by resolution o f the board o f directors, or other body exercising similar functions.
Such an assignment may also be made by a person other than an officer, when such person acts
pursuant to a power of attorney executed by an officer authorized by appropriate resolution to
grant such a power o f attorney. Assignments should be made in the form , “ X Corporation,
by A.B., Vice President (or attorney-in-fact, as thé case may b e ) ” .
Resolutions

32. An assignment o f a bond registered in the name o f a corporation must be supported
by a certified copy o f the resolution o f the board o f directors or other governing body authoriz­
ing the assignment. The resolution should set forth the name o f the officer authorized, as well
as his official title and the name o f the corporation. Form P.D. 1009 may be used when general
authority is to be given to assign any bonds registered in the corporation’s name, and Form
P.D. 1010 may be used when authority is to be limited to the assignment o f specific bonds. I f
the bonds are held by the corporation as fiduciary, Form P.D. 1011 (general authorization) or
Form P.D. 1012 (specific authorization) should be used. Copies o f any o f these form s will be
furnished by this bank upon request. These form s should be completed and certified in accord­
ance with the instructions printed thereon. I f a resolution is adopted by any board or body
other than the governing body o f the corporation, the authority o f such board or body should
be shown by a certified copy o f the instrument from which it derives its powers, as, fo r example,
the charter or by-laws o f the corporation. The entire instrument need not be submitted, but
only an extract therefrom certified under the corporate seal. I f the corporation has no seal,
a statement to that effect should be inserted in the certification, and the certification should be
sworn to by two officers o f the corporation before a notary public or other officer qualified to
administer oaths, who should affix his official seal and indicate the date his commission expires.
Powers o f attorney

33. I f authority to assign bonds on behalf o f a corporation is to be conferred upon a person
other than an officer o f the corporation, the governing body should by resolution authorize an
officer o f the corporation to execute a power o f attorney appointing the desired person the
attorney-in-fact o f the corporation fo r the purpose. Bonds assigned under such authority
should be accompanied by a certified copy o f such resolution and by the original power of
attorney, duly executed and acknowledged in the presence of one o f the officers authorized to
witness assignments o f registered bonds. The form s o f resolution P.D. 1009 or P.D. 1010
referred to in paragraph 32 may be used for this purpose if the text o f the resolution is amended
by adding the words, “ with power to appoint one or more attorneys” . The officer designated
in the resolution may appoint the attorney-in-fact by using Form P.D. 1003 when general
authority is to be given to assign any bonds registered in the corporation’ s name, or Form P.D.
1004 when authority is to be limited to the assignment o f specific bonds.
Unincorporated association as owner

34. Bonds registered in the name o f an unincorporated association (not preceded by the
name and title o f some officer) should be assigned on behalf o f the association by an officer or




10

officers thereof authorized either by resolution o f the governing body o f the association or by
resolution adopted by the membership. When such authority has been granted by the governing
body, the assignment should be supported by (a ) an excerpt from the constitution, charter or
by-laws showing that the governing body is authorized to dispose of the property of the associa­
tion, and (b) a copy of a resolution adopted by the governing body authorizing the named
officer or officers to sell and assign bonds registered in the name of the association or assigned
to it. Such resolution may be adopted in the form provided on Form P.D. 1013, copies of
which will be furnished by this bank upon request. The excerpt from the constitution, charter
or by-laws and the copy of the resolution should be certified under seal o f the association; if,
however, the association does not possess a seal, certifications that the association does not
possess a seal and that the excerpt and resolution are true copies should be subscribed and
sworn to by two officers of the association before a notary public or other officer authorized
to administer oaths, who should affix his seal and indicate the date his commission expires.
W hen such authority has been granted by resolution adopted by the membership, a copy o f the
resolution, certified in the manner specified above, should be submitted in support o f the
assignment; in such a case, no excerpt from the constitution, charter or by-laws will be required.
Name or title o f officer in inscription

35.
Bonds registered in the name and title o f an officer o f an unincorporated association,
who is still acting in the capacity indicated, may be assigned by that officer exactly in the form
used in the inscription and no supporting evidence will be required. When, however, bonds
are registered in the name and title o f an officer who is no longer acting in the capacity indicated,
or are registered simply in the title of an officer, assignments should be executed by the
incumbent o f the office and should be supported by a certificate o f incumbency on Form P.D.
1015, dated prior to the assignment, and executed and attested in accordance with the instruc­
tions printed on the form. Copies o f the form may be obtained from this bank upon request.

Partnership as owner

36.
Bonds registered in the name of a partnership should be assigned by a member o f the
firm, substantially as follow s: “ Smith and Jones, a partnership, by John Jones, a member o f
the firm .” I f the assignment is to be made to one o f the partners individually, it should be
executed by a partner other than the intended assignee.

Bonds registered in trade names

37.
Bonds registered in a trade name, such as “ The Boston S tore,” an unincorporated
business owned by a single individual, should be assigned in the form , “ The Boston Store,
unincorporated, John Jones, sole ow ner.” I f the business is owned by a partnership, the
assignment should be in the form , “ H enry Smith and James Brown, partners, doing business
under the name o f The Boston Store, by Henry Smith, a member of the firm,” or words of
similar import.

Bonds registered in name o f adjudicated bankrupt or insolvent

38.
I f the holder o f registered bonds is adjudicated bankrupt, assignment may be made
by the trustee in bankruptcy upon p roof o f his appointment and of approval o f his bond. The
Treasury Department may in any case require an order o f court authorizing the assignment.
Assignment by receivers o f bankrupts or insolvents must ordinarily be supported by an order
o f court authorizing the assignment.




TRANSFERS OF SHORT-TERM SECURITIES BY WIRE
Transfers authorized

39. The Federal Reserve Banks, as fiscal agents of the United States, will transfer out­
standing unmatured Treasury bills, certificates of indebtedness and notes, for account of the
owners, by wire free of charge between the cities specified in the following paragraph; provided,
in any case, (a) that the transfer is in connection with a sale of such securities, and (b) that
delivery in the city to which the transfer is to be made is necessary to consummate the sale.
Transfers fo r any other reason, such as transfers fo r the convenience o f owners or transfers
o f securities as collateral, are not authorized. Transfers are provided fo r owners of securities
as a privilege and not as a right. A ll transfers are conditioned on the existence of adequate
facilities o f the Federal Reserve Banks without responsibility on the part of such Federal
Reserve Banks for delays in effecting deliveries for any reason whatever.

Cities between which transfers may be made
40. Treasury bills, certificates o f indebtedness and notes may be transferred between any
o f the following cities: Boston, New York, Philadelphia, Cleveland, Cincinnati, Pittsburgh,
Richmond, Baltimore, Charlotte, Atlanta, New Orleans, Chicago, Detroit, St. Louis, Little Rock,
Louisville, Memphis, Minneapolis, Kansas City, Dallas, E l Paso, Houston, San Antonio and
San Francisco. Treasury certificates of indebtedness and notes, but not Treasury bills, may
be transferred between any of the follow ing cities, or between any o f such cities and any of
the cities mentioned above: Birmingham, Jacksonville, Nashville, Denver, Oklahoma City and
Omaha. Transfers of certificates o f indebtedness and notes may be made between any of the
cities mentioned and Washington, D. C., but such transfers may be made only against receipt
and, in the case o f transfers to Washington, deliveries will be made only to banking institutions.
Limitations

41. Transfers are not authorized —
(a)
(b)
(c)
(d)

on
on
on
on

the day of original issue of the securities;
the last business day of any month;
the business day next preceding an interest payment day for the particular issue; or
or after the business day next preceding the day of maturity of the particular issue.

Transfers from New York

42. Securities presented to us fo r transfer from New York by wire should be accompanied
by a signed request for such transfer on our Form G.B. 435, copies of which will be furnished
on request. I f such form is not used, we should be furnished with a letter requesting the
transfer and containing instructions stating the city to which the transfer is to be made,
the name and address o f the transferee, and whether delivery o f the securities to the transferee
is to be made against payment or against receipt. I f delivery is to be made against payment,
the instructions should specify the amount o f the payment and the disposition which we are to
make o f the proceeds. The letter should also contain a certification to the effect that the
transfer involves a sale o f the securities and that the delivery requested is necessary to
consummate the sale.
Transfers to New York

43. Securities transferred to New Y ork by wire will be delivered to the transferee at our
window. However, securities transferred to us by wire fo r account o f a member bank situated
outside of New York City will be delivered to the safekeeping account o f such member bank
with us, when we are so requested.




12

LOST, STOLEN OR DESTROYED SECURITIES
General

44. R elief on account o f the loss, theft, destruction, mutilation or defacement of United
States securities may be given under the authority of, and subject to the conditions set forth in,
the Government Losses in Shipment Act, as amended, and regulations thereunder.
Lost or stolen securities in bearer form

45. Title to United States securities in bearer form passes by delivery, without endorse­
ment, and without notice to the Treasury Department. An innocent purchaser for value
without notice before maturity acquires good title to bearer securities, even though reported
lost or stolen. No proof o f ownership is required when bearer securities are presented in
regular course to the Treasury Department or the Federal Reserve Banks fo r payment,
exchange or conversion, and such securities are customarily handled in the regular course of
business without reference to serial number. In the circumstances, the Treasury Department
and the Federal Reserve Banks assume no responsibility with respect to bearer securities
reported lost or stolen, and enter no stoppages or caveats against payment, exchange or con­
version o f such securities. However, if a bearer security, identified by number and description,
has been lost or stolen under such circumstances, and such a period o f time has elapsed after it
has matured or has become redeemable pursuant to a call fo r redemption, as in the judgment
o f the Secretary o f the Treasury would indicate that it has been destroyed or irretrievably
lost, is not held by any person as his own property and will never become the basis o f a valid
claim against the United States, the Secretary may grant relief to the owner by making
payment o f the amount which would have been payable at maturity or redemption, provided
the owner files with the Secretary a bond o f indemnity with satisfactory sureties. Although
no relief will be granted prior to the maturity or redemption of bearer securities, it is desirable
that an affidavit o f loss be filed soon after discovery o f the loss. Such an affidavit should be
made on Form P.D. 1022, copies o f which will be furnished by this bank upon request.
Mutilated or destroyed securities in bearer form

46. I f it is clearly proven to the satisfaction o f the Secretary of the Treasury that a bearer
security, identified by number and description, has been wholly or partially destroyed, or so
mutilated or defaced as to impair its value to the owner, the Secretary may grant relief to the
owner by issuing a substitute marked “ duplicate” showing the serial number of the original
security, provided that the owner may be required to file a bond o f indemnity with satisfactory
sureties. In the case of an issue which has matured or has been called fo r redemption, relief
may be granted by payment o f the amount which would have been payable at maturity or
redemption. A n affidavit o f destruction should be submitted on Form P.D. 1022 in the case
o f bearer securities completely destroyed, or on Form P.D. 1023 in the case o f bearer securities
mutilated or partially destroyed. Copies o f such forms will be furnished by this bank upon
request.
Lost, stolen or destroyed registered bonds

47. I f it is clearly proven to the satisfaction o f the Secretary of the Treasury that a
registered bond, identified by number and description, which has not been so assigned as to
become in effect payable to bearer, has been lost or stolen so that it is not held by any person
as his own property, or has been wholly or partly destroyed, or so mutilated or defaced as to
impair its value to the owner, the Secretary may grant relief to the owner by issuing a substitute
marked “ duplicate” showing the serial number o f the original security, provided that the
owner may be required to file a bond o f indemnity with satisfactory sureties. In the case o f




13

an issue which has matured or has been called for redemption, relief may be granted by payment
o f the amount which would have been payable at maturity or redemption. Application for
relief should be made on Form P.D. 1025 in the case of registered bonds lost or totally destroyed,
or on F orm P.D. 1028 in the case o f registered bonds mutilated or partially destroyed. Copies
o f such form s will be furnished by this bank upon request.
Registered bonds payable to bearer

48. A registered bond assigned in blank, or assigned for exchange for bearer bonds without
restriction on the delivery o f such bearer bonds, is in effect payable to bearer. Accordingly,
in the event a bond so assigned should be lost, stolen, destroyed, mutilated or defaced, the
ow ner’s claim fo r relief would be governed by substantially the same rules as those applicable
to bearer securities.
PAYMENT OR REDEMPTION
Procedure and forms

49. Full information regarding the presentation and surrender of marketable Government
securities fo r payment at maturity, or fo r redemption pursuant to a call for redemption in
accordance with the terms o f such securities, will be found in Treasury Department Circular
No. 666, dated July 21,1941, copies of which will be furnished by this bank upon request. When
such securities are submitted to this bank fo r payment or redemption, bearer securities should
be accompanied by an application on our Form G.B. 311, and registered securities should be
accompanied by an application on our Form G.B. 310. Copies o f such form s will be furnished
upon request.
REVISION OF THIS CIRCULAR
50. The right is reserved to withdraw, add to, or amend at any time any o f the provisions
o f this circular.




14


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102