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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.