The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE OF NEW BANK YORK Fiscal Agent of the United States r Circular No. 2 8 0 3 1 L May 29. 1944 J UNITED STATES SAVINGS BONDS Form of Inscription To All Issuing Agents in the Second Federal Reserve District Qualified for Sale of United States War Savings Bonds, Series E: Under a program sponsored by the Treasury Department in cooperation with the National Publishers Association and the Associated Business Papers, a large number of magazines having a total circulation of more than 116 million will feature pictures of a $100 Series E War Savings Bond on their covers during the Fifth War Loan Drive. A number of the photographs which have been prepared for this purpose show bonds bearing an inscription in substantially the following f o r m : Mr. and Mrs. America Everywhere U . S. A. It is understood that this form of inscription was adopted for promotional purposes and to provide uniformity. W e wish to bring to the attention of all issuing agents that, notwithstanding the inscription "Mr. and Mrs. America" on Series E bonds appearing on magazine covers during the period of the Fifth War Loan Drive, there has been no modification of the regulations relating to the registration of savings bonds and the issuance of bonds inscribed in the form "Mr. and Mrs." is not authorized. In the case of savings bonds issued in the names of husband and wife as coowners, the correct form of inscription is "John A. Jones or Mrs. Ella S. Jones". ALLAN SPROUL, President. FEDERAL RESERVE BANK OF N E W YORK F I S C A L A G E N T OF THE UNITED STATES May 27, 194-4- < Additional Provisions for Regulation V Guarantee Agreements To the Banks Concerned: In order to minimise certain administrative problems under Sections 5 and 6 of the standard form of guarantee agreement, the War and Navy Departments have approved amending the agreement as follows: (A) Definition of "Canceled Contract." - Section 4(A)(2) is amended to read as follows: "(2) A 'canceled contract' means a war production contract or part thereof which contract or part is, after the date of the Guarantee Agreement, canceled or terminated not by reason of fault of the Borrower." (B) Exclusion of Small Contracts. (1) Section 4(B) is amended by adding at the end thereof the following sentence: "If the amount which would be included in (x) or (y) with respect to any contract is, on the adjustment notice date, less than £> , such amount shall be excluded from the computation of (x) and (y)." (2) Section 6(A) is amended by inserting after the words "claims on canceled contracts" in clause (2) of the second sentence thereof the words: "included in (x)." (3) Section 6(B) is amended by inserting after the words "any canceled contract" in the first sentence thereof the words: "included in (x)#" No authorization has been received by us from the Maritime Commission in connection with this matter but we are informed that the Commission has it under consideration. May 27, 1944. 2 The War and Navy Departments desire that the special section be added to all guarantee agreements executed on and after June 1, 1944. Yifhere a guarantee agreement on the form of April 6, 1943 is already in use or is executed prior to June 1, 1944, the special section will, at the request of the financing institution and the borrower, be added to the guarantee agreement by means of an appropriate supplement. In cases where the 194-2 form of agreement is in force, the. special section is likewise available, but only if the financing institution and the borrower accept the standard form of April 6, 1943 agreement in its entirety in substitution for the 1942 form of agreement. In such cases, if no material changes are made in the terms of the loan, the new guarantee agreement will be dated as of the date of the original guarantee agreement in order that all canceled contracts which were canceled subsequent to the date of the original agreement may be included for the purposes of adjustments under Sections 5 and 6, Subsection (A) of the special section is intended to eliminate the necessity of tracing the cancelation of a war production contract to the cancelation or termination of a prime contract. Subsection (B) of the special section is designed to permit borrowers to exclude small, contracts from the computation of the adjustment formula. In this connection, we have been authorized by the War and Navy Departments to approve the insertion, in the blank space contained in the amendment to Section 4(B) of the guarantee agreement, of any figure not in excess of $2,500 if in our judgment the total amount of contracts so excluded does not exceed 10$ of the volume of the borrower's war production contracts as of the date of the addition of the special section or of the execution of the new agreement, including the special section, as the case may be. Requests for the exclusion of contracts in excess of $2,500 will, upon submission to us, be forwarded to Washington for consideration. While the borrower or wish to exclude ment to Section the special section is available only in its entirety, if the financing institution does not in a particular case small contracts, the blank space contained in the amend4(B) of the agreement must be lined out. If you desire to avail yourself of the foregoing special section in connection with outstanding guarantee agreements held by you and issued prior to June 1, 1944-, we shall be glad to process such requests provided they are accompanied by information which will furnish us with, the basis for the correct determination of the proportion which the excluded contracts bear to the total contracts. Very truly yours, •y^-eTVx1 A, Phelan, Vice President,
@FedFRASER