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F E D E R AL R E SE R V E BANK
O F N E W YO R K
Fiscal Agent of the United States

r C i r c u la r
L

N o . 3 7 2 2 ~l
J u n e 1 8, 1 9 5 1
J

REDEM PTION OF T R E A SU R Y BONDS TO P A Y FEDERAL ESTATE T A X

To all Banks and O thers Concerned,
in the Second Federal R eserve D istrict:

T reasu ry bonds in registered or coupon fo r m o f any o f the series listed below, which upon
the death o f the owner constitute part o f his estate, m ay be redeem ed at par and accrued interest
to the date o f paym ent by the duly constituted representative o f the deceased ow n er’s estate fo r
the purpose o f paying F ederal estate taxes.
T R E A S U R Y BONDS

D ated

S e ries

211 1962-67
/ >’s

Due

M ay

5,1942

June 15,1962-67

Dec.

1,1942

Dec. 15,1963-68

2y2 ’ s 1964-69

A p r. 15,1943

June 15,1964-69

2i/2 ’ s 1964-69

Sept. 15,1943

Dec. 15,1964-69

21o ,s 1965-70
/

Feb.

1,1944

Mar. 15,1965-70

2*4’ s 1956-59

Feb.

1,1944

Sept. 15,1956-59

2M>’s 1966-71

Dec.

1,1944

M ar. 15,1966-71

212 ,s 1967-72
/

June

1,1945

June 15,1967-72

2 1 ’ s 1959-62
/4

June

1,1945

June 15,1959-62

212 ,s 1967-72
/

Nov. 15,1945

Dec. 15,1967-72

21 ’s 1959-62
/4

Nov. 15, 1945

Dec. 15,1959-62

2y2 ’ s 1963-68

,

2 % per cent T reasury Bonds, Investm ent Series B-1975-80
These bonds are redeemable fo r this purpose by the term s o f their issue and not by virtue o f the
provision s o f Title 31 U. S. Code, Sec. 765, which provides, generally, that any U nited States
bonds bearing interest o f m ore than 4 per cent per annum may be received at par in payment
o f F ederal estate taxes. There are no bonds outstanding which qualify under that interest rate
requirement.
The T reasury D epartm ent im poses the follow in g conditions upon the redem ption o f bonds
to pay F ed eral estate ta x e s :
(1 ) The bonds must actually be owned by the decedent at the time o f his death and must consti­
tute a part o f his estate.
(2 ) The amount o f Federal estate tax due must equal or exceed the par value, plus accrued
interest, o f the bonds redeemed to pay the tax.
(3 )

The bonds must be submitted by the duly constituted representative o f the deceased ow n er’s




(

o v e r

)

estate to the Division o f Loans and Currency, W ashington 25, D. C., directly or through a Federal
Reserve B an k ; th ey are not d irectly acceptable by the C ollector o f Internal Revenue.
(4 ) In order to secure proper paym ent and credit, the bonds must reach the Division o f Loans and
Currency at least three fu ll weeks before the date upon which credit to the C ollector’s account is de­
sired ; unless otherwise requested, payment w ill be made and credit given as soon as possible follow ing
receipt o f the bonds.
(5 ) Registered bonds must be duly assigned by the representative o f the estate to “ The Secretary
o f the Treasury fo r redemption, the proceeds to be paid to the Collector o f Internal Revenue
a t ...................................................................................... for credit on Federal estate taxes due from the estate
o f ................................................................................ , deceased.”
( 6) I f registered bonds are submitted after the closing o f the books fo r paym ent o f interest (one
fu ll calendar month prior to payment date), payment will be made at par with a deduction o f interest
from the date o f paym ent to the interest payment date; if received during the period the books are closed,
with a request fo r paym ent at a date after the reopening o f the books, paym ent w ill be made at par,
plus accrued interest, from the date o f the reopening o f the books to the date on which payment is desired.
In either case, checks fo r the fu ll six m onths’ interest due on the last day o f the closed period will be
forw arded in due course to the representative o f the estate o f the owner.
(7 ) F orm P D 1782 (R evised), copies o f which may be obtained from this Bank, must be properly
completed, signed, sworn to, and submitted with the bonds, whether in registered or coupon form,
together with a certificate o f the appointment o f the personal representative under seal o f the court,
dated not more than six months prior to the submission o f the bonds and showing that at that time
the appointment was still in full force and effect.

F ollow in g clearance by the D ivision o f Loans and Currency, a m emorandum receipt fo r the
bonds w ill be forw arded to the representative o f the estate and w ill be follow ed by form al
receipt from the C ollector o f Internal Revenue.
A dditional copies o f this circular w ill be furnished upon request.




A

llan

S

proul,

President.

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