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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular N o . 2 9 4 4*1 L M a y 16, 1945 J PAYMENT AT MATURITY OF ADJUSTED SERVICE BONDS OF 1945 To all Banking Institutions in the Second Federal Reserve District: Adjusted Service Bonds of 1945, dated June 15,1936, issued in payment of amounts due on Adjusted Service Certificates, will mature on June 15,1945, when the face amount of the bonds and interest for the full nine-year period will be payable. Payment will be made upon presentation of the bonds to a Federal Reserve Bank or to the Treasurer of the United States, Washington, D. C. The amount due on each, bond is $63.50, which includes $50 principal and $13.50 interest. No further interest will accrue after June 15,1945. The following summary of the instructions with respect to the presentation of Adjusted Service Bonds for payment, contained in Treasury Department Circular No. 560, as amended, has been prepared for the information of banking institutions in this district. Presentation of bonds for payment 1. Adjusted Service Bonds may be presented to this bank for payment directly by the owners, or by banking institutions for account of the owners, after the requests for payment have been executed and certified in accordance with the instructions stated below. Bonds forwarded to the Federal Reserve Banks or the Treasury Department directly by the owners, or by banking institutions for account of the owners, will be sent at the risk and expense of the owners; the use of registered mail is suggested. Bonds may also be presented by the registered owner to any post office in the United States, where requests for payment may be executed in the presence of the postmaster, who will issue receipts for the bonds and forward them to the appropriate Federal Reserve Bank, without charge to the veteran and at the risk of the United States. 2. In order to avoid the possibility of congestion which might result from the presentation for payment of a considerable number of Adjusted Service Bonds on June 15, and to assure payment on that date, bonds should be forwarded to us as soon as may be practicable. Any Adjusted Service Bonds received between now and June 15 will be presumed to be presented for payment on June 15, unless the bonds are accompanied by specific instructions from the owner for earlier redemption. Payment to registered owner 3. Where the registered owner is alive and is legally competent, payment will be made by check drawn on the Treasurer of the United States and payable to the order of the registered owner. The check will be mailed to the registered owner at the address indicated in the request for payment on the reverse side of the bonds, unless we are furnished with written instructions from the owner requesting delivery elsewhere for his account. 4. The request for payment should be signed in ink by the registered owner in the presence of one of the officers authorized to certify requests for payment listed below in paragraph 12. In executing the request for payment, the registered owner should sign his name exactly in the same form as it appears in the inscription on the face of the bond. 5. If the registered owner is alive and legally competent, payment may not be made to any other person. No request for payment signed by an agent or person acting under a power of attorney, on behalf of the registered owner, will be recognized by the Treasury Department. Payment to representative of deceased or incompetent owner 6. If the person entitled to receive payment of Adjusted Service Bonds at maturity is deceased or legally incompetent, payment will be made in accordance with the provisions of paragraphs 7-11 below. In such cases, it will be necessary for us to transmit the bonds to the Treasury Department for release of registration and payment. 7. Estate of owner in process of administration—When a legal representative of the estate of a deceased owner has been duly appointed, payment will be made only to him. The request for payment should be signed in the form, "Estate of A, deceased, by B, executor (administrator) in the presence of one of the officers specified in paragraph 12 below. Payment will be made by check to the order of the representative and will be mailed to him at the address specified in the request for payment. Unless satisfactory evidence of qualification of the representative is already on file with the Treasury Department, bonds presented for payment must be accompanied by a certificate under the seal of the court which appointed the representative, dated not more than six months before presentation of the bond for payment, showing his appointment and qualification and stating that the appointment is still in force and effect. In the case of a bond presented for payment by an administrator, there should be submitted, in addition to the certificate of appointment, an affidavit by the administrator listing the names and addresses of the heirs of the deceased, indicating their relationship to the deceased. 8. No administration of estate of owner—When no legal representative of the estate of a deceased bond owner has been or is to be appointed, and it is established to the satisfaction of the Secretary of the Treasury either that the value of the gross personal estate of the deceased owner, including Adjusted Service Bonds, does not exceed $2,000 or that administration of the estate is not required in the State of the decedent's domicile, payment of a bond owned by such decedent will be made to the person determined by the Secretary of the Treasury to be lawfully entitled thereto. In all such cases, appropriate forms of request f o r payment and full instructions with respect to the procedure for obtaining payment will be supplied by the Treasury Department, Division of Loans and Currency, Washington 25, D. C., upon request. No request for payment should be executed and no bond should be submitted until receipt of such forms and instructions. 9. Owner under legal guardianship—When the Treasury Department has notice that a guardian or other legal representative of a minor or incompetent bond owner has been duly appointed, payment will be made only to such representative. The request for payment should be signed in the form " A , incompetent, by B, guardian (conservator or committee)". In all other respects, the conditions of paragraph 7 above will govern, except that a certificate of appointment will be accepted if dated not more than one year before presentation of the bond f o r payment. 10. Minor or incompetent owner not under legal guardianship—If a bond owner is a minor or an incompetent not under legal guardianship, payment "will be made as follows: (a) Payment to a minor—Payment may be made directly to a minor bond owner not under legal guardianship upon request of the minor if at tha time payment is requested such minor is of sufficient competency and understanding to comprehend the nature of the transaction. In general, the fact that the request for payment has been signed by the minor and duly certified will be accepted as sufficient proof of such competency and understanding. (b) Payment to a parent or other person on behalf of a minor—If a minor bond owner not under legal guardianship is not of sufficient competency and understanding to sign his name to the request and to comprehend the nature of the transaction, payment will be made to either parent of the minor with whom he resides, or if the minor does not reside with either parent, then to the person who furnishes his chief support. Such parent or other person must surrender the bond with the request for payment properly executed, and furnish a certificate, which may be typed on the back of the bond, showing his right to act for the minor. If a parent signs the request, the certificate and signature thereto should be in substantially the following f o r m : " I certify that I am the mother (or father) of John C. Jones and the person with whom he resides. He is years of age, is not under legal guardianship, and is not of sufficient competency to sign this request and to understand the nature of the transaction. Mrs. Mary Jones on behalf of John C. Jones." If a person other than a parent signs the request, the certificate and signature thereto, including a reference to the person's relationship, if any, to the minor, should be in substantially the following form: " I certify that John C. Jones does not reside with either parent and that I furnish his chief support. He is years of age, is not under legal guardianship, and is not of sufficient competency to sign this request and to understand the nature of the transaction. Mrs. Alice Brown, Grandmother, on behalf of John C. Jones." 2 ( c ) Payment to incompetents—In any case where the adult owner of a bond has been judicially declared incompetent, or such incompetency is otherwise established, and no duly qualified legal representative of his estate is acting, payment will be made to any person (whether or not a member of the family of the incompetent) upon presentation of satisfactory proof that such person is acting in behalf of and for the benefit of the incompetent. The Treasury Department may in any particular case require further evidence as to the competency and understanding of a minor. It may also in any particular case require a minor to join in a request for payment executed by a parent or by another person or may require a parent or other person to join in a request f o r payment executed by a minor. 11. Payment to joint fiduciaries—Where there are two or more persons acting as joint fiduciaries, such as administrators, executors, trustees or guardians of a bond owner's estate, the bond will be paid upon a properly executed request by any one or more of such fiduciaries but payment will be made for the account of all. Officers authorized to ivitness and certify requests for payment 12. The request for payment appearing on the back of an Adjusted Service Bond must be executed by the registered owner, or by the legal representative of a deceased or incompetent owner, in the presence of one of the following officers, who will complete the certificate appearing at the end of the f o r m : (a) Any United States postmaster, acting postmaster, inspector in charge of a post office, or other post-office employee designated by the postmaster under authority of the Postmaster General. Signatures of these officers should be authenticated by a legible imprint of a dating stamp of the post office. ( b ) The officer in charge of any home, hospital, or other facility of the Veterans' Administration, but only for patients and members of such facilities. (c) Any executive officer of a bank or trust company (or manager of a branch thereof) incorporated in the United States, its organized territories or insular possessions. The signature of such an officer should be authenticated either by a legible impression of the corporate seal of the bank or trust company or a legible imprint of the dating stamp used by it in connection with the issuance of Series E War Savings Bonds. ( d ) A judge or a clerk of a United States court, under the seal of the court; United States Collectors of Customs and Internal Revenue; commanding officers of the Army, Navy, Marine Corps, and Coast Guard of the United States for members of their respective establishments; and officials of the Treasury Department, who may be designated from time to time by the Secretary of the Treasury. (e) In a foreign country: United States diplomatic and consular representatives and attaches, under their respective seals; and managers and executive officers of foreign branches of banks or trust companies incorporated in the United States, if their signatures are authenticated by legible impressions of the corporate seals of such banks or trust companies. 13. Notaries public, justices of the peace or commissioners certify requests for payment of Adjusted Service Bonds. of deeds, are not authorized to 14. No person authorized to certify requests for payment may certify a request signed by himself, either in his own right or in any representative capacity. Investment of proceeds of payment 15. Many veterans owning Adjusted Service Bonds have expressed the wish to continue their investment and exchange their bonds for other interest-bearing securities. While direct exchanges are not possible, W a r Savings Bonds of Series E are on sale at post offices and banking institutions generally, and at many other agencies. A table showing the value of Adjusted Service Bonds on June 15, 1945, according to the number of bonds held, the total amount of Series E bonds that may be purchased with the proceeds of payment, and the cash balance remaining, appears on page 4 of this circular. 1G. In addition to Series E bonds, United States Savings Bonds of Series F and G are on continuous sale. During the period of the Seventh W a r Loan Drive, three series of marketable Treasury Bonds, in the denominations of $500 and upwards, will be available for purchase up to June 30, when the subscription books will close. Complete information with respect to these issues is contained in our Circular No. 2935, dated May 1,1945. ALLAN SPROUL, President. 3 The following table shows the value of Adjusted Service Bonds on June 15, 1945, according to the number of bonds held, and the total amount of War Savings Bonds of Series E that may be purchased with the proceeds of redemption, together with the balance remaining. A D J U S T E D SERVICE BONDS Number Held 1 Value at Maturity $ 63.50 SERIES E BONDS that may be purchased Face Amount $ 75. Issue Price $ BALANCE Remaining 56.25 $ 7.25 2 127.00 150. 112.50 14.50 3 190.50 250. 187.50 3.00 4 254.00 325. 243.75 10.25 5 317.50 400. 300.00 17.50 6 381.00 500. 375.00 6.00 7 444.50 575. 431.25 13.25 8 508.00 675. 506.25 1.75 9 571.50 750. 562.50 9.00 10 635.00 825. 618.75 16.25 11 698.50 925. 693.75 4.75 12 762.00 1,000. 750.00 12.00 13 825.50 1,100. 825.00 .50 14 889.00 1,175. 881.25 7.75 15 952.50 1,250. 937.50 15.00 16 1,016.00 1,350. 1,012.50 3.50 17 1,079.50 1,425. 1,068.75 10.75 18 1,143.00 1,500. 1,125.00 18.00 19 1,206.50 1,600. 1,200.00 6.50 20 1,270.00 1,675. 1,256.25 13.75 21 1,333.50 1,775. 1,331.25 2.25 22 1,397.00 1,850. 1,387.50 9.50 23 1,460.50 1,925. 1,443.75 16.75 24 1,524.00 2,025. 1,518.75 5.25 25 1,587.50 2,100. 1,575.00 12.50 26 1,651.00 2,200. 1,650.00 1.00 27 1,714.50 2,275. 1,706.25 8.25 28 1,778.00 2,350. 1,762.50 15.50 29 1,841.50 2,450. 1,837.50 4.00 30 1,905.00 2,525. 1,893.75 11.25 31 1,968.50 2,600. 1,950.00 18.50 4