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F E D E R A L R E S E R V E B AN K
O F N E W YORK
Fiscal Agent of the United States
f Circular N o. 3 7 0 7 1
L
M ay 22, 1951
J

P A Y M E N T OF SAVINGS BONDS W IT H O U T O W N ERS’ SIGNATURES

T o A ll Qualified P a yin g A g en ts o f Savings Bonds
in tlie Second Federal E eserve D is tr ic t:

E ffective June 1, 1951, qualified payin g agents m ay make paym ent o f savings
bonds o f any series to the ow ner o r coow ner named on the bonds without requiring
him to sign the request fo r paym ent on the back o f the bond. T his new paym ent p ro­
cedure is designed prim arily to facilitate the paym ent o f savings bonds held in safe­
keeping b y qualified paying agents fo r known custom ers or held in connection w ith
their trust activities. U nder the new procedure, a qualified payin g agent, a fter the
owner has satisfactorily established his identity, need only endorse the bond before
payin g it ; we w ill furnish special endorsem ent stamps fo r this purpose.

H ow ­

ever, the endorsement m ethod cannot be used to effect a transfer o f ow nership or
pledge o f a bond. A qualifying paying agent m ay continue to use the current m ethod
o f paying savings bonds, which is not changed, but under the new m ethod the pay­
in g agent unconditionally guarantees the validity o f each transaction.
T reasury D epartm ent Circular No. 888, dated M ay 15, 1951, a cop y o f which is
enclosed, prescribes the term s and conditions governing the new procedure. Qualified
payin g agents m ust be specially authorized to pay savings bonds pursuant to the
T reasu ry circular. A pplication fo r such authority should be m ade to this Bank on
F o rm P D 2291, tw o copies o f which are also enclosed.
D etailed procedural inform ation and instructions regarding the new m ethod o f
payin g savings bonds are set forth on the follow in g pages.
A dditional copies o f this circular and o f T rea su ry D epartm ent Circular N o. 888
w ill be furnished upon request.




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PR O C E D U R A L IN F O R M A T IO N A N D IN STRU CTION S R E G A R D IN G P A Y M E N T
OF SA VIN G S BONDS W IT H O U T O W N ER S’ SIGNATU RES
P urpose o f change

The follow in g is fo r the purpose o f acquainting you w ith T rea su ry D epartm ent Circular
N o. 888, which is effective June 1, 1951. The circular sets forth a procedure w hereby paying
agents may, subject to the provisions and conditions o f the circular, accept U nited States
Savings B onds that an owner or coow ner ( i f nam ed as such on the b on ds) requests to have
paid, without requiring the owner to sign the request fo r paym ent on the back o f the bond.
These bonds a fter being specially endorsed b y the agent m ay then be paid b y the agent, if
the bonds are otherw ise eligible fo r paym ent under Circular N o. 750, R evised. I f a bond is
not eligible fo r paym ent b y the paying agent it should be forw a rd ed to the F ederal R eserve
Bank fo r payment.
A lthough the currently established m ethods fo r m aking paym ent o f savings bonds are
not changed by the new procedure there is a distinct difference as to an a g en t’ s responsi­
b ility fo r a loss that m ay result from the paym ent o f any bond processed under Circular
No. 888. That circu lar provides that a payin g agent gives the U nited States an unconditional
guarantee as to the va lidity o f each transaction, including the identification o f the owner and
the disposition o f the proceeds in accordance w ith the ow n er’s instructions, and that if a
loss is incurred b y the U nited States as a result o f such transaction the agent shall, upon
request o f the T rea su ry Departm ent, make prom pt reim bursem ent fo r the amount o f the loss.
The unconditional guarantee means that the agent is responsible whether o r not the loss
resulted fro m its fault or negligence.
R esolution necessary

In ord er that a qualified paying agent o f savings bonds m ay have the p rivilege o f process­
ing bonds under Circular No. 888, the governing board o r com m ittee must pass a resolution
authorizing the institution to apply fo r authority to process the bonds under that circular.
A n official form , P D 2291, has been provided fo r this purpose. T his fo rm must be duly exe­
cuted and returned to the H ead Office o f this Bank. W hen the fo rm is in order and there is
no reason fo r denying the institution the privilege, a fo rm P D 2292 w ill be executed b y this
Bank and forw a rd ed to the paying agent as notification that it is eligible to process bonds
by special endorsem ent under Circular No. 888. U pon receipt o f such notification, assum ing
that official endorsem ent stamps are available, the agent m ay begin processing bonds June
1, 1951, and thereafter under the circular. The fo rm P D 2291 provides also fo r requisition­
ing official endorsem ent stamps o r obtaining approva l o f designs fo r such stamps or dies that
y o u r institution m ay w ish to obtain at its own expense. The requirem ents fo r such stamps
are covered hereinafter.
O utline o f p roced u re

P resum ing that a bond was eligible fo r p rocessin g under Circular No. 888 and you r insti­
tution was w illing to process it thereunder the follow in g is, in brief, an outline o f the p ro ­
cedure that w ould take p la c e :
1. The appropriate employee o f you r institution, after the owner has established his identity,
would ascertain that such owner has given adequate authorization to effect payment o f the bond and
instructions fo r disposition o f the bond proceeds.
2. The bond would be endorsed.
3. The bond would be p a id :
(a ) by your institution if the bond would otherwise be eligible fo r paym ent under the provi­
sions o f Treasury Department C ircular No. 750, Revised, and then forw arded, with other
paid bonds, in the usual manner to this Bank, or




(b ) i f the bond was not eligible fo r paym ent (this w ould
and all bonds o f Series A through E that may not be
lar No. 750, R evised) by a paying agent, it should be
by means o f a check drawn on the Treasurer o f the

include all bonds o f Series F and G
paid under the provisions o f C ircu­
forw arded to this Bank fo r payment
U nited States.

4. The proceeds if received by you r institution w ould be distributed b y it. The checks drawn
under 3 (b ) above would, o f course, be mailed b y the Federal Reserve Bank in accordance with the
ow n er’s instructions as transmitted by the institution endorsing the bond.
5. Y ou r institution would take such steps as it deems necessary or desirable to maintain sufficient
evidence o f its authority to act in the transaction as well as evidence o f its compliance therewith,
including identification o f the owner requesting paym ent and disposition o f the proceeds in accord­
ance with his instructions.
Special endorsem ent stamps

I f you r institution has decided to use the new procedure it should determ ine the number
o f special endorsem ent stamps it w ill require. T his number should be included in the form ,
P D 2291, to be filed w ith this Bank. I f additional stamps are required thereafter, they m ay
be obtained by letter over the signature o f an officer o f y ou r institution. A n appropriate
number o f stamps w ill be supplied b y this Bank.
M isuse o f the stamps could result in losses to the agent. T his suggests, and we cannot
em phasize this too strongly, the desirability o f carefu lly controlling the use and custody o f
the stamps. It follow s, o f course, that a minimum number o f these stamps should be obtained.
The stamps should be returned to this Bank i f the institution discontinues as a paying agent
o r i f otherwise requested by this Bank.
I f a payin g agent desires to obtain its own endorsem ent stamps it m ay do so after
obtaining approval th ereof fr o m this Bank. A specim en im pression show ing the data to
be included and any special design to be obtained should be supplied to this Bank when such
approval is requested. There is no objection to the inclusion o f a code or o f space fo r initial­
in g o r signing, fo r the purpose o f indicating the em ployee using the stamp or fo r showing a
date the stamp was im pressed. H ow ever, the stamps furnished b y this Bank w ill not be
specially prepared to cover these additions. The stamp must, o f course, contain the data
prescribed in Circular No. 888 and the im pression when made, including any special design,
must not exceed a space bounded b y 1 % inches in the verticle dimension, b y 3 inches
horizontally.
A ll o f the endorsem ent stamp im pressions must be legibly made in a black o r other
dark-colored ink suitable fo r m icrofilm ing. These im pressions should be placed in the area
provid ed on the back o f the bond fo r ow ners to sign requests fo r payment. T here is no ob jec­
tion to record in g sym bols, initials or other notations on the back o f the bond to aid the agent
in identifyin g the em ployee responsible fo r the transaction or fo r reconstructing the trans­
action ; provided, that the agent understands it has the prim ary responsibility fo r producing
such evidence as m ay be required to support a transaction.
O w ner s request

A ll series o f savings bonds are eligible fo r processing under the procedure prescribed in
Circular N o. 888 but they m ay be so processed only i f an ow ner named as such on the bond
actually requests paym ent o f the bond. The term “ ow n er” as used in Circular N o. 888 also
includes a coow ner and it is not confined to individuals. A bond m ay not be processed w ith­
out a signature to the request fo r paym ent on the bond i f a parent requests paym ent in behalf
o f a m inor child who is nam ed on the bond as its ow ner nor m ay a bond be so processed if
the request is m ade b y a beneficiary who has becom e solely entitled to the bond by reason o f
the death o f the owner. B onds registered in the name o f an executor or other fiduciary, a
corporation, o r an unincorporated body, as owner, m ay be processed under the circular, p ro ­




vided docum entary evidence o f authority is not required under T rea su ry regulations gov ern ­
in g savings bonds (D epartm ent Circular No. 530, Sixth R ev ision ). In this connection agents
are referred to Subparts 0 , P and Q o f T rea su ry Circular No. 530.
W ith respect to bonds in coow nership fo r m that m ay be processed under Circular N o. 888,
agents are required to indicate which coow ner requested paym ent. T his m ay be done by
encircling, in black o r other dark-colored ink, the co ow n er’s name as it appears in the inscrip­
tion on the fa ce o f the bond. I f coow ners have join tly requested paym ent both names should
be encircled.
It should be understood that T rea su ry regulations (C ircular No. 530) provide that a
surviving coow ner becom es the sole and absolute owner o f the bond i f it has not been p re­
sented fo r paym ent during the life o f the coow ner. The same is true o f beneficiaries that
survive bond ow ners. Because o f these rights, a paying agent should be aw are o f the risk o f
loss that it takes whenever it processes a bond on the basis o f an authorization fo r paym ent
that was not recently filed by the ow ner to w hom paym ent w ill be made.
Paym ent p roced u re

The procedure f o r actually payin g bonds has not been changed b y the procedure fo r
endorsing bonds. I f the bond is eligible fo r endorsem ent under Circular No. 888 it m ay be
paid b y a p ayin g agent i f that bond is eligible also f o r paym ent under the p rovision s o f T rea s­
u ry Circular No. 750, R evised. The paym ent procedure prescribed under C ircular No. 750
should be follow ed in its entirety fo r such bonds, including the affixation and com pletion o f
the data required b y the a g en t’s paym ent stamp. In other w ords both the special endorse­
ment stamp (on the back o f the bond) and the paym ent stamp (on the fa ce o f the b on d ) o f
the payin g agent should appear on bonds paid b y the agent.
I f a bond is not eligible fo r paym ent b y a payin g agent under T rea su ry Circular N o. 750,
R evised, it must, as heretofore, be forw a rded to this Bank fo r paym ent b y a check draw n on
the T reasurer o f the U nited States. These w ould include Series F and G bonds and all Series
A through E bonds not paid b y pa yin g agents. These bonds, assuming, o f course, that they
are eligible fo r endorsement, m ust bear the special endorsem ent on the back o f the bond. Such
bonds w ould not bear the a gen t’ s paym ent stamp. The m ailing address fo r forw a rd in g the
check— which w ill be draw n to the order o f the ow ner indicated b y the agent— must be shown,
otherw ise the check w ill be forw a rd ed to the payin g agent subm itting it to this Bank. Bonds
submitted fo r paym ent b y this Bank must be kept separate fr o m bonds paid b y paying agents.
The regulations provid e that an agent obtain authority fo r the paym ent o f bonds and
instructions fo r disposition o f the proceeds fr o m an ow ner and retain such evidence together
w ith necessary records evidencing com pliance therewith. It is expected that paying agents
w ill use this procedure only fo r custom ers that are fu lly known to them. T h erefore they have
the fu ll responsibility fo r p rop erly id en tifyin g the ow ners o f bonds that they accept fo r
endorsement. The T reasury D epartm ent w ill not prescribe any specific rules governing the
fo r m or type o f such authorities, instructions and records that should be obtained. Inas­
much as ow ners o f public debt obligations m ay at any time present their securities, or claims
in the event o f alleged loss o r theft o f the securities, the T rea su ry D epartm ent could not
p ro p e rly authorize the destruction o f any records that an agent m ay obtain as evidence o f
the p ro p rie ty o f the paym ent o f a savings bond. A ccordin gly, the D epartm ent w ill not specify
the period o f time that an a gen t’ s records should be retained and any destruction o f such
record s m ust be undertaken by the agent on its own responsibility. There is no objection,
o f course, to m icrofilm ing the appropriate evidence and then destroying the original documents.




R E G U LATIO N S G O V E R N IN G TH E P A Y M E N T O F U N ITED STA TES SAVING S BONDS W IT H O U T
TH E O W N ER S’ SIG N A TU R ES TO T H E R E QU ESTS F O R P A Y M E N T

1951

Department Circular No. 888

TREASU RY DEPARTM ENT,
O

Fiscal Service
Bureau o f the Public Debt

f f ic e

of t h e

S ecretary,

Washington, M ay 15, 1951.

Pursuant to section 22 (a ) of the Second Liberty Bond A ct, as amended (31 U .S.C . 7 57 c), the follow ­
ing additional regulations applicable to United States Savings Bonds are prescribed by the Secretary o f the
Treasury, effective June 1, 1951.
Sec. 330.1. Purpose of regulations.— These regulations prescribe a procedure whereby eligible qualified
paying agents may specially endorse certain United States Savings Bonds in lieu of requiring the owner or
coowner to sign the request for payment and to pay such bonds if they are otherwise subject to payment under
the provisions of Treasury Department Circular 750, Revised, or to forward to the Federal Reserve Bank of
the District for payment those bonds which are not subject to payment under said Circular 750. Although the
procedure is designed for use primarily in connection with bonds held by paying agents in safekeeping or
trust accounts for known customers, it is not limited to bonds held in such accounts. However, U N D E R N O
C IR C U M S T A N C E S shall the procedure be used to effect a transfer o f ownership or a hypothecation or
pledge o f a bond. Violation o f these prohibitions will be cause for the withdrawal o f an agent’s privilege to
process bonds under this circular.
Sec. 330.2. A gents eligible to process bonds.— In order to establish its eligibility to process savings bonds
under this circular, an institution qualified as a paying agent o f savings bonds must certify on Treasury Depart­
ment Form P D 2291, that by duly executed resolution of its governing board or committee, the institution has
been authorized to apply for the privilege o f processing bonds in accordance with the provisions and condi­
tions o f this circular, including all supplements, amendments and revisions thereof and any instructions issued
in connection therewith. Such application and certification should be made to the Federal Reserve Bank of the
District which will, when appropriate, issue, on Form P D 2292, notification o f the acceptance of such application-certification. The Secretary o f the Treasury reserves the right to withdraw such privilege from any insti­
tution at any time and such action may be taken either by the Treasury Department direct or through a
Federal Reserve Bank, acting as fiscal agent o f the United States.
Sec. 330.3. Bonds eligible for processing.— A United States Savings Bond of any series may be processed
under these regulations provided that the registered owner (w hich term as now and hereafter used in this cir­
cular includes a coow ner) named on the bond requests its payment. The term “ owner” is defined to include
individuals, incorporated and unincorporated bodies, executors, administrators, and other fiduciaries named on
the bonds. The procedure does not apply, for example, to cases where a parent requests payment in behalf of
a minor child who is named on the bond as its ow ner or to cases where requests for payment are made by
surviving beneficiaries, or to any other cases requiring death certificates or other supporting evidence.
Sec. 330.4. Guaranty given to the United States.— Each paying agent by the act o f paying a bond with­
out the signature o f the owner or presenting a bond to the Federal Reserve Bank o f the District for payment
without the owner’s signature, under these regulations, shall be deemed thereby to have unconditionally guar­
anteed to the United States (a ) the validity o f the transaction, including the identification o f the owner and
the disposition o f the proceeds in accordance with his instructions, and ( b ) that if a loss is incurred by the
United States as a result o f such transaction the agent shall upon request o f the Treasury Department make
prompt reimbursement for the amount of the loss.
Sec. 330.5. Evidence o f owner’s authorization to agent.— By the act o f presenting a bond to the Federal
Reserve Bank (either as a “ paid” bond or for payment by the Federal Reserve Bank) without the owner’s
signature to the request for payment, the paying agent represents to the United States that it has obtained
adequate instructions from the owner with respect to payment o f the bond and disposition o f its proceeds.
T o support this representation agents should maintain appropriate records evidencing the receipt of such
instructions as well as records establishing compliance therewith.



( o ver )

Sec. 330.6. Endorsement of bonds.— Each bond processed under these regulations shall bear the follow­
ing endorsement (see sec. 330.7 for additional instructions covering bonds inscribed in coownership form ) :
Absence of owner’s signature, and validity of transaction,
guaranteed in accordance with Treasury Department
Circular N o. 888.
(N am e and location o f agent)
This endorsement must be placed on the back o f the bond in the space provided for the owner to request pay­
ment. The endorsement stamp must be legibly impressed in black or other dark-colored ink. The Federal
Reserve Bank o f the District will furnish rubber stamps for impressing the above endorsement or, in lieu
thereof, will approve designs for suitable stamps to be obtained by paying agents. Requests for endorsement
stamps to be furnished or approved by the Federal Reserve Bank shall be made in writing by an officer o f the
institution.
Sec. 330.7. Bonds in coownership form.— In addition to the endorsement prescribed in sec. 330.6 hereof,
the paying agent shall in the case of bonds registered in coownership form indicate which coowner requested
payment. This should be done by encircling in black o r other dark-colored ink the name o f such coowner (o r
both coowners if a joint request for payment is made) as it appears in the inscription on the face o f the bond.
Sec. 330.8. Paym ent of bonds.— Bonds bearing the special endorsement prescribed in sec. 330.6 hereof,
may be paid by paying agents if the bonds are otherwise eligible for payment under the provisions o f Depart­
ment Circular 750, Revised. (T h e same specific limitations o f payment authority set forth in sec. 321.9 of
Department Circular 750, Revised— except for absence o f the owner’s signature under these regulations— con­
tinue to apply.) These paid bonds should, o f course, bear the agent’s payment stamp and the data required
thereby and the bonds should be forwarded to the Federal Reserve Bank o f the District, with other paid bonds,
in the usual manner. A ll other bonds bearing the special endorsement should be forwarded to the Federal
Reserve Bank o f the District for payment. These bonds should be separated from paid bonds and should be
accompanied by appropriate instructions governing disposition o f the check to be issued in payment o f the
bond proceeds. See sec. 330.3 hereof with respect to bonds eligible for special endorsement under these
regulations.
Sec. 330.9. Liability of paying agents under this circular.— In accordance with the guarantee provisions
of sec. 330.4 hereof, paying agents are absolutely and unconditionally liable for any losses incurred by the
United States by reason o f the processing of bonds under these regulations.
Sec. 330.10. Functions of Federal R e s e n ’e Banks.— The Federal Reserve Banks, as fiscal agents o f the
United States, are authorized and directed to perform such duties, and prepare and issue such instructions,
as may be necessary to the fulfillment o f the purpose and requirements o f this circular. The Federal Reserve
Banks may utilize any or all o f their Branches in the performance o f these duties.
Sec. 330.11. Modification of other circulars.— The provisions o f these regulations shall be considered as
amendatory o f and supplementary to Department Circulars 530, 653, 654, 750, 751, and 885, and any revi­
sions thereof, and those circulars are hereby modified where necessary to accord with the provisions hereof.
Sec. 330.12. Other circulars generally applicable.— Except as provided in these regulations the circulars
referred to in the preceding section will continue to be generally applicable.
Sec. 330.13. Supplements and amendments.— T h e Secretary of the Treasury may at any time or from
time to time supplement or amend the terms of these regulations, or o f any amendment or supplement thereto.




JOHN W . SN YD ER,
Secretary of the Treasury.

Form PD 2291
(May 1951)
TR EA SU R Y DEPARTM ENT
Fiscal Service
Bureau o f the Public Debt

APPLICATION-AGREEMENT
For establishment of eligibility of paying agent of savings bonds for processing
United States Savings Bonds under the provisions
of Treasury Department Circular No. 888

Dated.................................................... . 19..........
To

th e

F ed era l R eserve B a n k o f

N ew

Y ork ,

Fiscal A gent of the United States:
In consideration for the privilege o f processing United States Savings Bonds under Treasury Department
Circular No. 888, the undersigned, a qualified paying agent o f savings bonds, hereby certifies that by duly
executed resolution o f its governing board or committee, it has been authorized to comply with and be bound
by the provisions of said circular, including all supplements, amendments and revisions thereof and any
instructions issued thereunder.
For use in connection with processing bonds under Circular No. 888, the undersigned hereby applies for
□ approval of the attached design o f the special endorsement stamp to be obtained by it.
□

special endorsement stamps.

I n W i t n e s s W h e r e o f , the undersigned has caused this Application-Agreement to be executed under
seal by the officer below named, thereunto duly authorized by a resolution o f its governing board or committee

adopted on the .............. day of ......................................... 19..........

(Name of institution)

(Address)
[S e a l]

B y................................. ........................

(Signature of officcr)

(Title of officer)

ACKNOWLEDGMENT
State o f
County of

)
J

On th is .............. day o f ............................... , 19.........., before me appeared ............................................................ ,
to me personally known, who, being by me duly sworn, did say that he is the..............................................................
(Title of officer)

o f the ........................................................................................ and that the seal affixed to the above instrument is the
(Name of institution)

corporate seal of said institution, and that the above instrument was signed and sealed in behalf o f said institu­
tion by authority of its governing board or committee, and said officer acknowledged said instrument to be the
free act and deed o f said institution.
Notary Public
[S e a l ]

M y commission expires.......... .
(In case the applicant has no corporate seal omit the words, “ and that the seal affixed to the above instrument
is the corporate seal of said institution,” and add at the end o f the affidavit “ The institution has no corporate
seal.” )




Form PD 2292
(M ay 1951)
TREASURY DEPARTM ENT
Fiscal Service
Bureau of the Public Debt

NOTICE OF ELIGIBILITY OF QUALIFIED PAYING AGENT
OF SAYINGS BONDS TO PROCESS UNITED STATES SAVINGS BONDS
UNDER THE PROVISIONS OF TREASURY DEPARTM ENT CIRCULAR NO. 888

19.

To.

G

entlem en

:

Y ou r Application-Agreement Form P D 2291, dated............................................................, has been
accepted as o f the above date. Y ou are hereby notified that your institution is eligible to process
United States Savings Bonds pursuant to the provisions and conditions o f Treasury Department
Circular No. 888, including all supplements, amendments and revisions thereof and any instructions
issued thereunder.




F

ederal

R

ese rv e

B

ank

of

N

ew

Y

ork,

Fiscal A gent o f the United States.

By ....................................-.............................................
(Signature)

(Title)

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