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FEDERAL RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, September 2, 1944

PAYMENT OF UNITED STATES SAVINGS BONDS BY
QUALIFIED INCORPORATED BANKS AND TRUST COMPANIES

To Incorporated Banks and Trust Companies
in the Eleventh Federal Reserve District:
As announced by the Secretary of the Treasury on August 29, incorporated banks
and trust companies may make application to a Federal Reserve Bank or branch for
authority to make cash payments of United States Savings Bonds of Series A, B, C, D,
and E, beginning October 2, 1944. For information and guidance, there are enclosed the
following:
1. Copy of press statement by Secretary of the Treasury Morgenthau released to
newspapers on August 29, 1944.
2. Reproduction of letter dated September 5, 1944, by Secretary of the Treasury
Morgenthau, addressed to incorporated banks and trust companies.
3. Pamphlet embodying Treasury Department Circulars No. 750 and No. 751 and
Memorandum of Instructions and Explanation issued in conjunction with Depart­
ment Circular No. 750.
4. Copy of First Supplement to Treasury Department Circular No. 530, Fifth Revi­
sion, as amended.
5. Two copies of Treasury Department Form PD 1958, Application-Agreement.
6. Two copies of order blank for requesting payment stamps.
7. One copy of order blank for requesting additional pamphlets or other data, re­
demption value tables, and transmittal letter forms.
QUALIFICATION
Any incorporated bank or trust company which desires to qualify for the payment
of United States Savings Bonds should execute Form PD 1958 when authorized to do so
by a resolution of its governing board or committee, and return the form to this bank or
its branch at El Paso, Houston, or San Antonio, as the case may be. In the event a formal
meeting of the governing board or committee will not be held prior to October 2, the
president of the bank or, if he is not available, the officer in charge may execute Tempo­
rary Application-Agreement Form PD 1958-T (copies of which will be furnished upon re­
quest) and be qualified until the required resolution is passed at the next regular meeting.
The Form PD 1958-T should be submitted to this bank or branch with a letter explaining
the situation and stating the dates of the last preceding and the next meeting of its board
or committee. The letter should state also that if the temporary qualification is granted,
the board or committee will be requested at the next meeting to ratify the execution of
the Temporary Application-Agreement and to adopt a formal resolution authorizing the
execution of Application-Agreement Form PD 1958 to take the place of Form PD 1958-T.
After the governing board or committee takes action on the matter, the bank should
promptly forward the duly executed Application-Agreement Form PD 1958 to this bank
or appropriate branch. A copy of the form should be retained in the bank’s files.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

PAYMENTS AUTHORIZED
After a bank has received notice of qualification it may, on and after October 2, 1944,
make cash payments of United States Savings Bonds of Series A, B, C, D, and E to the
extent of the current redemption values shown on the special tables furnished by the
Federal Reserve Bank. Such payments may be made only to. individuals (natural persons)
whose names are inscribed on the bonds as owner or coowner and when such individuals
7
have been identified to the complete satisfaction of the bank. Under no circumstances will
a bank be authorized to pay bonds of Series F or Series G or bonds of any series if
inscribed in the names of corporations, associations, partnerships, or fiduciaries, nor may
payment be made to persons named on bonds as beneficiaries or whose names appear
in the inscription for address purposes only.
No bond is eligible for payment until the expiration of the month following its issue
month, e.g. a bond issued as of the first day of the month of September 1944 will be eligi­
ble for payment on the first day of November 1944. The issue date is the first day of the
month in which the bond was purchased and should not be confused with the actual date
of issue shown in the issuing agent’s validating stamp on the bond.
ANNOUNCEMENT TO OWNERS OF UNITED STATES SAVINGS BONDS
Before any public announcement is made to the effect that an incorporated bank or
trust company has qualified for the payment of United States Savings Bonds, particular
attention is invited to the restrictions contained in Part II of the enclosed memorandum
of instructions.
PAYMENT STAMPS
As provided in Part VII of the memorandum of instructions, payment stamps for
recording data on paid bonds will be furnished by the Federal Reserve Bank substantially
in the form shown in the memorandum. The stamp may not exceed 1% inches in any
dimension. The number of stamps required, as well as the lettering desired, should be
requested on the enclosed order blank in duplicate as early as possible in order to allow
sufficient time to have them made and delivered before October 2. The number of stamps
ordered should be restricted to the number of persons who will be authorized to make
payments of the bonds. As soon as a bond is paid, the payment stamp should be imprinted
on it in accordance with paragraph 31 of the enclosed memorandum of instructions, and
the amount paid should be shown in the space provided for that purpose. The stamp
may show a number or symbol to represent the person making payment, or a line may
be provided for his signature or initials.
.
FORWARDING BONDS TO FEDERAL RESERVE BANK OR BRANCH
In forwarding paid bonds to the Federal Reserve Bank or branch for credit or remit­
tance, the bonds should be listed on transmittal letter forms furnished by the Federal
Reserve Bank or appropriate branch. The amount paid on each bond and the serial number
should be listed, and the bonds should be kept in the same order in which they are listed
on the transmittal letter. However, if a microfilm or other record is to be maintained by
the paying bank, the serial numbers need not be shown on the transmittal letter. The
amounts paid should be totaled and the total number of items listed should be shown on
the transmittal letter. No special sorting of the bonds for shipment will be required,
except that bonds paid in one month must be segregated from bonds paid in another month
and listed on separate transmittal letters. No other items should be listed on transmittal
letters covering savings bonds, and it would be helpful if not more than two hundred
bonds are listed on any one letter.
...................
A bank may forward bonds to the Federal Reserve Bank or branch each business
day, although where a bank pays only a small volume of bonds it will be advantageous
if daily shipments can be avoided. In any event all paid bonds on hand on the last business
day of a month must be forwarded to the Federal Reserve Bank or branch not later than
the following business day. The shipment of paid bonds to the Federal Reserve Bank or
branch m aybe made in the same or substantially the same manner in which the qualified
bank handles and forwards checks for cash collection, and paying banks are urged to
maintain adequate records of bonds paid. In this connection attention is invited to para­
graph 34 of the memorandum of instructions. The paid bonds should be dispatched to this
bank or branch for attention of the Fiscal Agency Department, Savings Bond Redemption
Division.

SETTLEMENT FOR PAID BONDS
Immediate settlement will be made by this bank and its branches for the total amount
of paid bonds submitted by a qualified bank. Settlement will be made in accordance with
the request of the paying bank, i.e. by credit in its reserve account if it is a member of
the Federal Reserve System, in its clearing account if it is a nonmember clearing bank,
in the reserve or clearing account of a correspondent bank, or settlement will be made
by check issued by this bank or one of its branches.
REIMBURSEMENT FOR SERVICES IN PAYING BONDS
Under the terms of section 321.5 of Treasury Department Circular No. 750, a quali­
fied paying bank may not make any charge against the owners of bonds for payments
made to them. Each paying bank will be entitled to receive for its services in paying bonds
reimbursement at the end of each calendar quarter according to the scale shown in the
circular.

Those persons in qualified banks who will be responsible for the payment of savings
bonds should thoroughly acquaint themselves with the Treasury’s regulations and instruc­
tions. Inquiries with respect to any matters requiring clarification will be gladly and
promptly answered. Banks are urged to give as prompt attention as possible to the matter
of qualifying and the ordering of payment stamps, pamphlets, and other data.

Yours very truly,
R. R. GILBERT
President

TREASURY DEPARTMENT
Washington
PRESS STATEMENT

FOR RELEASE, NEWSPAPERS
Tuesday, August 29, 1944
The Treasury Department has completed plans for simplifying redemption of Series E War
Bonds, Secretary Morgenthau announced today.
“ However,” said the Secretary, “ We hope the simplification of redemption will not encourage
bond owners to present bonds for payment except in cases of absolute necessity. Huge sums are
still to be required before we can return to a normal period. Every bond owner should remember,
too, that his bonds become increasingly valuable as investments the longer they are held.”
But because of the huge increase in the number of War Bond holders—now estimated to total
about 60 percent of the country’s population, it was deemed advisable to set up the simplified
redemption procedure, eliminating delay and saving trouble.
Beginning October 2, the Secretary said, individual owners or coowners of bonds can turn them
into cash by presenting them to any commercial bank which has qualified for this service. The bank
will pay the redemption value of the bonds immediately following satisfactory identification, and
without charge to the bond owner.
The arrangement applies also to the Series A, B, C and D Savings Bonds which were sold from
1935 to 1941. It does not apply to Series F and G Savings Bonds. It is of potential benefit, Secretary
Morgenthau pointed out, to the estimated 80,000,000 persons to whom some 600,000,000 bonds of
Series E have been sold in the last three years.
Heretofore, it has been necessary to have requests for redemptions certified before an author­
ized officer, and after certification forward them to a Federal Reserve bank or present them direct
to the Treasury. This necessarily caused a certain amount of delay before the bond holder received
payment.
All incorporated banks and trust companies are permitted, under the new rules announced
today, to qualify as bond paying agencies, and it is believed a large majority of them will do so. The
Treasury will compensate them on a quarterly basis, at the rate of 15 cents for each of the first
thousand bonds paid, 12 cents each for the second thousand, and 10 cents each for all in excess of
2, 000.
Proper identification, satisfactory to the bank, is all that any qualified bank will require of a
person desiring to redeem an eligible bond. The new system will not effect in any way, however, the
stipulation that Savings Bonds are non-transferable. Nor does it affect the requirement that Series
E Bonds be held for 60 days from the issue date before they become redeemable.
The new redemption regulations are based on legislation which Congress enacted last year.
The privilege of cashing the Series A-to-E Bonds at commercial banks is available to individuals in
their own right and is not extended to such classes of owners as corporations, associations, partner­
ships, fiduciaries, a person named on a bond as a beneficiary, and a person whose name, as inscribed
on a bond as owner or coowner, has been changed in any manner other than by marriage. Banks are
not authorized to make partial payments on bonds.
The earlier system of handling redemption applications through the Federal Reserve banks will
be continued for all Savings Bond issues where the bond owner prefers to use these facilities, and as
the only authorized method of redemption of Series F and G bonds and1 in a few cases, of the Series
,
A-to-E issues.
Treasury officials said the new procedure might have a deterring effect on redemptions, since a
considerable number of bond owners in the past have cashed their bonds well in advance of expected
financial needs which actually never materialized, or have cashed bonds in larger amounts than, as
later events proved, they actually needed. With the new method providing for immediate payment
of eligible bonds upon their presentation to any qualified bank, it is believed many redemptions such
as those heretofore made in anticipation of delay in payment, and later found unnecessary, will be
avoided.
Another effect, Treasury officials said, may be to encourage the purchase of Series E Bonds by
persons who have money on hand and are uncertain as to whether it will be needed for personal or
family expenses. Knowing that Series E Bonds can be turned into cash immediately if emergency
requires, they probably will resolve their doubts in favor of bond-buying.

TREASURY DEPARTMENT
WASHINGTON
September 5, 1944

To the Incorporated. Bank or Trust Company addressed:
Most banking institutions of this country have already rendered in­
valuable assistance in making the Treasury's savings bond program an
unparalleled success. Through your efforts, and those of many other issuing
agents, about 30 billions of dollars have been paid in to the Treasury,
representing the sale of nearly 600 million bonds of Series A, B, C, D and E
to more than 80 million people.
The owners of savings bonds, for the most part, are redeeming their
bonds only as sickness or other emergencies necessitate. Slightly under 90
percent of all savings bonds of these series issued since they were placed
on sale in 1935 are 3till outstanding. However, it is natural and under­
standable that a3 the volume of outstanding saving bonds increases redemp­
tions will also increase. In order that more prompt service might be
rendered in the payment of these bonds legislation was passed last year
authorizing the Secretary of the Treasury to utilize the services of incor­
porated banks and trust companies in making such payments.
You will receive this letter from the Federal Reserve Bank of your Dis­
trict, together with the offical circular governing payments by incorporated
banks and trust companies, an explanatory memorandum prepared by the Treasury,
and other documents incident to the procedure. I hope you will examine these
carefully and will conclude to qualify as a paying agent, thus rendering a
further service to bond owners in your community as well as to your country.
I know that I need not stress the importance of seeing that in every case
the owner, and no one else, receives the correct value of his bond, and that
all improper practices, such as use of the bonds for collateral and discount­
ing bonds not eligible for payment, are discouraged.
<e hope these bonds will not be presented unless the owners really need
:
>
’
the money, because huge sums are still to be required before we return to a
normal period. Those who do, however, are entitled to courteous and efficient
service, and this I am sure you are equipped and willing to render.
If you have any questions about the payment procedure, or the scope of
authority or responsibility of paying agents, after reading this material,
the Federal Reserve Bank of your District will be glad to assist you.
Sincerely yours,

F E D E R A L R E S E R V E B A N K OF D A L L A S
FISCAL AGENT OF THE UNITED STATES

Regulations and Instructions G overning Payment

of

UNITED S T A T E S

SAVINGS

(Series A, B, C, D and E)

by

Q ualified Banks and Trust Com panies

Septem ber 5, 1944

BONDS

REGULATIONS GOVERNING PAYMENTS BY INCORPORATED BANKS AND
TRUST COMPANIES IN CONNECTION WITH THE REDEMPTION
OF UNITED STATES SAVINGS BONDS

1944
Department Circular No. 750

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 5, 1944.

Fiscal Service
Bureau of the Public Debt

Pursuant to the authority of the Second Liberty Bond Act, as amended, the following regu­
lations are hereby prescribed to govern payments by incorporated banks and trust companies in
connection with the redemption of United States Savings Bonds on and after October 2, 1944:
Subpart A— AUTHORITY TO ACT
Sec. 321.1. Banks and trust companies authorized to act.— All banks and trust companies,
incorporated under general or special laws of the United States, the District of Columbia, any State,
territory or insular possession of the United States, or the Canal Zone, are eligible and are hereby
authorized, on and after October 2, 1944, to make payments in connection with the redemption
of United States Savings Bonds, subject to the provisions of this circular and any instructions
issued hereunder: Provided, however, That each bank or trust company must be duly qualified by
the Federal Reserve Bank of the District1 before it may make any such payment. Federal Reserve
Banks, as fiscal agents of the United States, are authorized to qualify eligible banks and trust
companies hereunder, and to terminate any such qualification as hereinafter provided.
Sec. 321.2. Application and qualification.— Any eligible bank or trust company which desires
to qualify to make payments in connection with the redemption of United States Savings Bonds
should make application to the Federal Reserve Bank of the Federal Reserve District in which it
is located on Application-Agreement Form PD 1958 (see appended exhibit A ), copies of which may
be obtained from the appropriate Federal Reserve Bank. If the application is approved, the Federal
Reserve Bank will forward to the bank or trust company a Notice of Qualification Form PD 1959
(see appended exhibit B), establishing that it is qualified to make payments in connection with the
redemption of the United States Savings Bonds hereinafter specified. If the application is not
approved, the bank or trust company will be so advised in writing by the Federal Reserve Bank of
the District.
Sec. 321.3. Termination of a bank's qualification to pay bonds.—The Secretary of the Treas­
ury or under authority of the Secretary the appropriate Federal Reserve Bank, as fiscal agent of
the United States, may, by written notice, at any time and without previous demand or notice,
terminate the qualification of any bank or trust company to pay United States Savings Bonds. A
duly qualified bank or trust company may discontinue making payments at any time upon written
notice to the Federal Reserve Bank, and its qualification shall thereupon cease.
Subpart B— GENERAL
Sec. 321.4. Meaning of terms in this circular.— Hereinafter, for the purposes of this circular,
unless otherwise indicated specifically, or by context, the terms:
(a) “ Bank(s)” shall mean any eligible incorporated bank or trust company duly qualified
pursuant to the provisions of this circular to make payments in connection with the redemption
of the United States Savings Bonds hereinafter specified, including such branches and facilities
thereof located within the United States (including the territories and insular possessions of the
United States and the Canal Zone) as it may desire to utilize for this purpose. The term “ facilities,”
as used herein, is defined as those bank facilities at army and navy installations and at defense
plants which have been established for the duration of the war with the specific approval of the
Treasury Department.
(b) “ Bond(s)” shall include only United States Savings Bonds of Series A, B, C, D or E,
including bonds of Series E designated “ Defense Savings Bonds” or “ War Savings Bonds.” (SAV ­
INGS BONDS OF SERIES F AND G ARE NOT INCLUDED.)
1For the purpose of this circular, banks and trust companies in Puerto Rico, the Virgin Islands and the Canal Zone
shall be considered as being within the Second Federal Reserve District and shall make application to the Federal
Reserve Bank of New York, and banks and trust companies in Alaska and Hawaii shall be considered as being within
the Twelfth Federal Reserve District and shall make application to the Federal Reserve Bank of San Francisco.

_ _
1

(c) “ Owner (s )” shall mean an individual (natural person) whose name is inscribed as an
owner (or coowner) in his own right on a bond which is registered in any of the following form s:
(1) in the name of a single individual in his own right, e.g. “ John A. Jones” ;
(2) in the names of two individuals as coowners, e.g. “ John A. Jones or Mrs. Ella S.
Jones” (each is considered as an “ owner,” and payment may be made to either with­
out the consent of the other); or
(3) in the name of one individual, payable on death to another, e.g. “ John A, Jones, pay­
able on death to Mrs. Ella S. Jones,” or “ John A. Jones, p.o.d. Mrs. Ella S. Jones.” (In
this example, John A. Jones is the “ owner” and Mrs. Ella S. Jones is the beneficiary.
Payment under this circular to a beneficiary is not authorized.)
(d) “ Federal Reserve Bank” includes each Federal Reserve Bank and each branch of a Federal
Reserve Bank which has been or may hereafter be utilized by such Federal Reserve Bank to con­
duct any of the transactions in connection with which the term is used in this circular.
Sec. 321.5. Reimbursement of banks’ costs.— A bank shall not make any charge against the
owners of bonds for payments made hereunder. However, each bank shall be entitled to receive,
for its service in paying bonds hereunder, reimbursement for bonds paid and forwarded to the
Federal Reserve Bank each calendar quarter according to the following scale, which shall be appli­
cable separately to each bank and each of its branches and facilities, if utilized, and if the bonds
paid by each are separately scheduled and accounted for:
15 cents each for the first 1,000 bonds
12 cents each for the second 1,000 bonds
10 cents each for all over 2,000 bonds
The date such bonds are forwarded to the Federal Reserve Bank will govern the rate of reimburse­
ment, and the payment of such amount as the bank is entitled to receive shall be made by the Fed­
eral Reserve Bank on behalf of the Treasury Department.
Sec. 321.6. Announcements, etc., of authority to pay bonds.— Any announcement of or any
reference to a bank’s authority to pay savings bonds may be made only in a form or manner or
contain such statements or substance as may be approved by the Secretary of the Treasury or,
under authority of the Secretary, by the Federal Reserve Bank of the District, as fiscal agent of the
United States. A bank shall not make such announcements or references unless and until it is
officially qualified to pay bonds.
Subpart C—SCOPE OF AUTHORITY OF BANKS
Sec. 321.7. General.—In order to protect the interests of the owners and to insure receipt by
the proper persons of the proceeds thereof, savings bonds are registered, are not transferable, and
are payable only to the owner named on the bond (except as otherwise specifically provided in the
regulations governing the bonds). This policy must be understood and effectuated by each bank,
notwithstanding the authority granted herein to make payments of bonds, since it is of the utmost
importance that payment of the appropriate redemption value of the bonds be made to and received
by only the persons entitled under the terms and conditions of the bonds and applicable regulations.
Sec. 321.8. Payments authorized.— Subject to the terms of the bonds and to the provisions of
the regulations governing them (Treasury Department Circular No. 530, as currently in effect on
the date of payment) and the provisions of this circular, a bank may make payment of any United
States Savings Bond of Series A, B, C, D or E, to the individual (natural person) whose name is
inscribed as the owner (or coowner) in his own right on the bond: Provided, That such individual
presents the bond to the bank for payment and that the individual is known to the bank or estab­
lishes his identity to the complete satisfaction of the bank. This authority to make payments to
the owner named on the bond will be held to include the following exceptional cases:
(a) Where the name of the owner as inscribed on the bond has been changed by marriage
and the bank knows or can establish to its complete satisfaction the identity of the owner
whose name has been so changed. The signature to the request for payment should show
both names, for example— “ Miss Mary T. Jones, now by marriage Mrs. Mary J. Smith.”
A BANK IS NOT AUTHORIZED TO PAY A BOND FOR AN OWNER WHOSE NAME
AS INSCRIBED ON THE BOND HAS BEEN CHANGED IN ANY OTHER MANNER.
(b) Where the name of the owner inscribed on the bond is that of a minor child who is not
of sufficient competency and understanding to execute the request for payment and com­
prehend the nature of such act but upon whose behalf request for payment is made by a
—

2

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parent with whom the child resides: Provided, however, That the form of registration
does not indicate a guardian or similar representative of the estate of the minor owner
has been appointed or is otherwise legally qualified. The parent requesting payment on
behalf of the minor child must be known or his or her identity established to the complete
satisfaction of the bank, and the parent must sign the request for payment in the form—
“ John A. Jones, on behalf of John C. Jones” and affix an endorsement in substantially
the following form, which may be typed on the back of the bond: “ I certify that I am the
______________________ _ (father or mother) of John C. Jones and the person with wh6m
he resides. He is________ years of age and is not of sufficient competency and understand­
ing to sign the request.” Such a payment may not be made to any person other than a
father or mother.
Sec. 321.9. Specific limitations of payment authority.— A bank is not authorized hereunder
to pay a bond:
’
(a) If the bond is presented for payment prior to the expiration of 60 days from the issue
date (the issue date should not be confused with the date appearing in the issuing ageqts
dating stamp).
(b) If the bank does not know or can not establish to Its complete satisfaction the identity. tif
the person requesting payment as the owner of the bond (including the establishment df
the identity of parents requesting payment on behalf of minor children, as set forth in
Sec. 321.8 (b )).
•
(c) If the owner requesting payment (form for which appears on the back of each bond) does
not sign his name in ink as it is inscribed on the face of the bond and show his home or
business address. (See also Secs. 321.8(a) and (b) and 321.10(d)).
(d) If the bond appears to bear a material irregularity, for example, an altered, illegible,
incomplete or unauthorized inscription, issue date or issuing agent’s validating stamp
impression; or if a bond appears to be altered, or is mutilated or defaced in such a manner
as to create doubt or arouse suspicion with respect to the bond or any essential part
thereof.
(e) If the bond is marked “ DUPLICATE.”
(f) If Treasury Department regulations require the submission of documentary evidence to
support the redemption of the bond, as in the case of deceased owners, incompetents or
minors under legal guardianship or the change of an owner’s name as inscribed on a
bond if for any reason other than marriage.
(g) If the owner named on the bond and requesting payment is a minor who, in the opinion
of the bank, is not of sufficient competency and understanding to execute the request for
payment and comprehend the nature of such act. (Note the authority granted to banks
to make payments of bonds to either parent on behalf of a minor child under the pro­
visions of Sec. 321.8(b)).
(h) If it is known to the bank that the owner has been declared, in accordance with law,
incompetent to manage his estate.
(i)

If partial redemption is requested.

Attention is directed to Sec. 321.17 hereof for handling bonds of the foregoing classes of cases which
may not be paid by banks.
Subpart D— PAYMENT AND ACCOUNTING
Sec. 321.10. Examination of bonds presented for payment.— Before making payment of bonds
presented hereunder the bank:
(a) Shall determine that the person requesting payment as the “ owner” (as defined in this
circular) is known or his identity is established to the satisfaction of the bank.
(b) Shall examine the bond and determine that it is a bond which the bank is authorized to
pay under the provisions of this circular.
(c) If the request for payment on the back of the bond is already executed, shall determine
that the request is properly signed by the registered owner presenting the bond and that
his home or business address is shown.
(d) If the request for payment on the back of the bond has not been executed or has been
improperly executed by the owner presenting the bond, shall require such owner to
properly sign the request and show his home or business address.
—

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Sec. 321.11. Certification of requests for payment.— In view of the provisions of this circular
governing payment of bonds and the requirements as to the data to be endorsed on each bond, under
Sec. 321.12, a bank will not be required in the case of any bond paid by it to complete the certification
form at the end of the request for payment, nor determine the authenticity of any certification which
may appear on the bond at the time it is presented for payment: Provided, however, That each bank
submitting paid bonds shall be understood by such submission to have represented and certified that
the identity of the owner requesting payment has been duly established to the satisfaction of the
bank by one of its officers or by an employee duly authorized by the bank.
Sec. 321.12. Determination of redemption values and payment of bonds.— The redemption value
of a bond is determined from the period of time (years and full half-year) that it has been outstand­
ing, and the table of redemption values on each bond. The Federal Reserve Bank of the District will
furnish each bank with a table of redemption values from which it will be possible, after determining
the month and year of issue of any bond, to immediately establish its current value. After establish­
ing such value, payment thereof to the owner requesting payment shall be made in cash. No objec­
tion will be made to an arrangement between the owner and the bank under which the owner accepts
in lieu of cash, a credit to his checking or savings account with the bank, or a check or similar instru­
ment payable to his order. Each bank shall place on the face of each bond paid by it the word “ PAID,”
the amount and date of payment and the name, location and transit (or code) number of the bank.
Other data pertinent to the payment procedure of a bank may be included if approved by the Federal
Reserve Bank of the District. The Federal Reserve Bank will furnish rubber stamps for this purpose
or, in lieu thereof, will approve suitable stamps prepared by a bank. The affixation of such data shall
be construed by and between the bank and the Treasury Department to be a certification by the pay­
ing bank that the bond has been paid in accordance with the terms and requirements of this circular
and that payment of the proceeds of the bond has been made to the owner.
Sec. 321.13. Forwarding paid bonds to the Federal Reserve Bank.—After payment, the bonds
shall be forwarded to the Federal Reserve Bank of the District in accordance with instructions issued
by such Federal Reserve Bank.
Sec. 321.14. Redemption of paid bonds by Federal Reserve Banks.—Upon receipt of the paid
bonds the Federal Reserve Bank will make immediate settlement with the forwarding bank for the
total amount of payments made on such bonds; however, such settlement shall be subject to adjust­
ment if any discrepancies are discovered at a later date.
Sec. 321.15. Losses resulting from payments.— Section 22 of the Second Liberty Bond Act, as
amended, provides:
“ (i)

Any losses resulting from payments made in connection with the redemption of savings
bonds shall be replaced out of the fund established by the Government Losses in Shipment
Act, as amended, under such regulations2 as may be prescribed by the Secretary of the
Treasury. The Treasurer of the United States, any Federal Reserve Bank, or any incorpo­
rated bank or trust company authorized or permitted to make payments in connection with
the redemption of such bonds, shall be relieved from liability to the United States for such
losses, upon a determination by the Secretary of the Treasury that such losses resulted
from no fault or negligence on the part of the Treasurer, the Federal Reserve Bank, or the
incorporated bank or trust company * * *. The provisions of Section 33 of the Government
Losses in Shipment Act, as amended, with respect to the finality of decisions by the Secre­
tary of the Treasury shall apply to the determinations made pursuant to this subsec­
tion. * *

(a) Consideration of facts concerning loss.— In any case in which a loss occurs, the paying bank
shall be afforded ample opportunity to present all of the facts pertaining to the circumstances of the
payment for consideration by the Secretary.
Sec. 321.16. Preservation of rights.— Nothing contained in these regulations shall be construed
to limit or restrict any existing rights which holders of savings bonds may have acquired under the
circulars offering such bonds for sale and the regulations prescribed thereunder.
Sec. 321.17. Redemption of bonds not payable by banks.— Any bonds which a bank is not
authorized to pay pursuant to the provisions of this circular should be forwarded by the owner, or
'-^Regulations governing replacement of losses resulting from payments made in connection with the redemption
of United States Savings Bonds are set forth in Treasury Department Circular No. 751.
3The provisions of Section 3 of the Government Losses in Shipment Act, as amended, with respect to the finality
of decisions by the Secretary of the Treasury are— “ Notwithstanding any provision of law to the contrary, the decision
of the Secretary of the Treasury that such loss, destruction, or damage has occurred or that such shipment was made
substantially in accordance with such regulations shall be final and conclusive and shall not be subject to review by
any other officer of the United States.”
—

4

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his agent, after certification of the requests for payment, to the Federal Reserve Bank or branch of
the District for redemption. If a bank should undertake to forward such unpaid bonds at the
request and in behalf of the person entitled to payment, such bonds must be sent separate and apart
from bonds which the bank has paid. Any documentary evidence required to support the redemption
should accompany the bond or bonds when forwarded to the Federal Reserve Bank.
Section. 321.18. Functions of Federal Reserve Banks.— The Federal Reserve Banks, as fiscal
agents of the United States, are authorized to perform such duties, and prepare and issue such forms
and instructions, as may be necessary to the fulfillment of the purpose and requirements of this cir­
cular. The Federal Reserve Banks, in their discretion, may utilize any or all of their branches in the
performance of these duties.
Sec. 321.19. Supplements, Amendments, etc.— The Secretary of the Treasury may at any time
or from time to time supplement, amend, or withdraw, in whole or in part, the provisions of this cii cular, or of any amendments or supplements thereto, information as to which will be furnished
promptly to the Federal Reserve Banks and to the banks qualified hereunder.
HENRY MORGENTHAU, JR.,
Secretary of the Treasury.

EXHIBIT “A ”
Form PD 1958
TREASURY DEPARTMENT
Fiscal Service
Bureau of the Public Debt

APPLICATION-AGREEMENT
; Payments by Incorporated Banks and Trust Companies in connection with the redemption of
United States Savings Bonds
Dated_________.________ _______
to ; t h e f e d e r a l r e s e r v e

bank

o f __ __ ____ ______

, 194

...

_____

" As Fiscal Agent of the United States
The undersigned, eligible under the provisions of Sec. 321.1 of United States Treasury Depart­
ment Circular No. 750, hereby applies for qualification to make payments in connection with the
redemption of United States Savings Bonds, as provided in the said Circular No. 750, and, upon being
so qualified, hereby agrees:
1. To be bound by and to comply with the provisions of Treasury Department Circular No. 750,
including all supplements and amendments thereof and instructions as may be issued there­
under.
2. That the Secretary of the Treasury, or the Federal Reserve Bank of
,
by written notice, may, at any time, and without previous demand or notice, terminate the
qualification of the undersigned, if such authority is granted pursuant to this application;
and that in the event of such termination the undersigned, after receipt of such notice or
after the date of termination specified therein, will not thereafter pay any United States
Savings Bonds.
It is understood that the undersigned may withdraw from this Agreement at any time upon
___________
_
....._
.....
written notice of such intention to the Federal Reserve Bank o f ____
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed under
seal by the officer below named, thereunto duly authorized by a resolution of its governing board or
committee adopted on th e ____ day o f_____________________________ __, 194__ .
(Name)
(Address)

By

(Signature of Officer)
(Title of Officer)

ACKNOWLEDGMENT
State of

)

County of

\

On this--------day of--------------------------------------- , 194

, before me appeared

to me personally known, who, being by me duly sworn, did say that he is
the____________________ of th e__________________________________________________
(Title of Officer)

(Name of Institution)

and that the seal affixed to the above instrument is the corporate seal of said institution, and that
the above instrument was signed and sealed in behalf of said institution by authority of its govern­
ing board or committee, and said officer acknowledged said instrument to be the free act and deed
of said institution.
Notary Public
—

6

—

EXHIBIT “B”
Form PD 1959
TREASURY DEPARTMENT
Fiscal Service
Bureau of the Public Debt

NOTICE OF QUALIFICATION OF AN INCORPORATED BANK OR TRUST COMPANY TO
MAKE PAYMENTS IN CONNECTION WITH THE REDEMPTION OF
UNITED STATES SAVINGS BONDS.
____________________________ , 194
T o:______________________________________

Your Application-Agreement Form PD 1958, dated______________________ , has been approved
as of this date. You are hereby notified that you are qualified to make payments in connection with
the redemption of United States Savings Bonds pursuant to the provisions of Treasury Department
Circular No. 750, and any supplements or amendments thereof and instructions issued pursuant
thereto.
FEDERAL RESERVE BANK OF
Fiscal Agent of the United States

_
_

By

REGULATIONS GOVERNING REPLACEMENT OUT OF THE FUND ESTAB
LISHED BY THE GOVERNMENT LOSSES IN SHIPMENT ACT, AS AMENDED,
OF AN Y LOSSES RESULTING FROM PAYMENTS MADE IN CONNECTION
WITH THE REDEMPTION OF UNITED STATES SAVINGS BONDS
1944
Department Circular No. 751

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 5, 1944.

Fiscal Service
Bureau of the Public Debt

I. REGULATIONS PRESCRIBED
1.
Pursuant to the authority of the Second Liberty Bond Act, as amended, the following regu­
lations are hereby prescribed for the replacement out of the fund established by the Government
Losses in Shipment Act, as amended, of any losses to the United States resulting from payments
made in connection with the redemption of United States Savings Bonds, and shall apply to losses
resulting from payments made (1) by the Treasurer of the United States, (2) by the Federal
Reserve Banks and branches, as fiscal agents of the United States, and (3) by incorporated banks
and trust companies qualified pursuant to Treasury Department Circular No. 750, to pay savings
bonds.
7
—

II. REPORTS OF LOSSES
1. A loss to the United States may result from an erroneous (or unauthorized) payment in
connection with the redemption of savings bonds.
2. If an incorporated bank or trust company, qualified to pay savings bonds, after returns have
been made to the Federal Reserve Bank finds an erroneous payment to have been made, immediate
report should be made to the Federal Reserve Bank. Any such erroneous payments so reported, and
any other erroneous payments found by a Federal Reserve Bank in returns from an incorporated
bank or trust company shall, so far as possible, be adjusted between the Federal Reserve Bank and
the incorporated bank or trust company concerned.
3. Any such erroneous payments which are not adjusted and any other erroneous payments
otherwise found after the account of the Treasurer of the United States has been charged shall
immediately be reported to the Treasury Department, Division of Loans and Currency, Merchandise
Mart, Chicago 54, Illinois.
III. FINAL DETERMINATION OF LOSSES
1. Following receipt of the report of an erroneous payment the Treasury Department will
appropriately advise the paying agent concerned, unless such action is unnecessary. The Depart­
ment shall determine whether or not appropriate adjustment may be effected with the persons con­
cerned in the erroneous payment and in this connection will expect the cooperation of the paying
agent, if necessary.
(a) If it is determined that no loss to the United States will occur, the paying agent will be so
advised.
(b) If it is determined that a final loss to the United States has occurred, the paying agent
will be given every opportunity to present the full facts relating to the payment for consideration
of the Secretary of the Treasury. If the Secretary shall determine that the final loss resulted from
no fault or negligence on the part of the paying agent, the paying agent shall be relieved from
liability to the United States. If, however, the Secretary of the Treasury finds fault or negligence
on the part of the paying agent, notice to that effect will be given such paying agent who will make
prompt restitution.
2. In no case will the Treasurer of the United States, a Federal Reserve Bank or branch, or
the banking institution which made the erroneous payment be called upon to make restitution
unless and until it is determined that a final loss has been incurred as a result of an erroneous
payment due to the fault or negligence of such paying agent.
IV. REPLACEMENT OF LOSSES OUT OF THE FUND
1. When it is established to the satisfaction of the Secretary of the Treasury that a loss has
resulted from a payment made in connection with the redemption of a United States Savings Bond,
the loss shall be subject to immediate replacement out of the fund established by the Government
Losses in Shipment Act, as amended. Any recovery or repayment on account of any such loss as to
which replacement shall have been made out of the fund shall be credited to the fund.
•

V. INVESTIGATION OF LOSSES

1. The Treasury Department, and, in appropriate cases, Federal Reserve Banks, as fiscal
agents of the United States, may request the Secret Service to investigate losses and assist in the
recovery of improper payments. The Treasurer of the United States, the Federal Reserve Banks,
and qualified banking institutions should cooperate with the Secret Service to the fullest extent in
facilitating investigations and making recoveries.
VI. SUPPLEMENTS, AMENDMENTS, ETC.
1. The Secretary of the Treasury may at any time or from time to time supplement, amend,
or withdraw, in whole or in part, the provisions of this circular, or o f any amendments or supple­
ments thereto, information as to which will be furnished promptly to the Federal Reserve Banks
and to banking institutions qualified to make payments of savings bonds under the provisions of
Treasury Department Circular No. 750.
HENRY MORGENTHAU, JR.,
Secretary of the Treasury.
—

8

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TABLE OF CONTENTS FOR MEMORANDUM OF INSTRUCTIONS AND
EXPLANATION ISSUED IN CONJUNCTION WITH TREASURY DEPART­
MENT CIRCULAR NO. 750
TOPICS
I. QUALIFYING TO PAY BONDS

_______________

Paragraph
Number

_
_

____ _______

II. ANNOUNCEMENTS REGARDING AUTHORITY TO PAY BONDS .....
III. GENERAL POLICY CONCERNING PAYMENT OF BONDS

.....

2 -4
5- 7
8

IV. PAYMENTS AUTHORIZED
General authority __________________________________________________________ 9
Authority where owner’s name is changed___________________________________ 10
Authority to pay to parents of minor owners ----------------------------------11
V. SPECIFIC LIMITATIONS ON PAYMENT AUTHORITY AND EXECUTION
OF REQUESTS
Time limitation on payments of bonds before maturity
Limitation on payments due to improper identification
---------------General requirements _!__________________________ ____ _____ _______________
Requirements where parents requestpayment on behalf of minors
Requirements where owners’ names arechanged bymarriage
......
Limitation on payments due to improperly completed requests for payment _
Form of signature___ __ __________ _______________ _____________________
_
Signature by mark ________________________________ ________________________
Signature of parent of a minor______________ ___________ ____________________
Signature of a person whose name is changed by marriage
Limitation on payments due to material irregularities (except mutilation
or defacement)
___________________ ____________________ __ ____________
General
___ ___ ______________________________
Exception to limitation on payments due to material irregularities—
forms of registration______________________________________ -------- ------- ----—
Exception to limitation on payments due to material irregularities—
other than form of registration __________________________________________
Limitations on payment due to mutilation or defacement of bonds
Limitation on payments due to “ duplicate” bonds........
.................
Limitations on payments due to documentary evidence required to
support redemption
________ ______________________________
Limitations on payments due to minority_ ______ ___ __________________
_
Limitations on payments due to incompetency
Limitations on payments due to requests for partial redemption of bonds__
VI.
VII.

VIII.

IX.
X.

XI.

12
13
13 (a)
13 (b)
13 (c)
14
15
16
17
18
19
19 (a)
19 (b)
19 (c)
20
21
22
23
24
25

DETERMINATION OF REDEMPTION VALUES AND PAYMENT OF BONDS
Determination of redemption values__________________
26-27
Payment of redemption values__________________ ___________________________
28
RECORDING PAYMENT DATA ON PAID BONDS
General
_________________________________________________________________ 29
Payment stamps ___________________________________ ________________________ 30
Use of payment stamps______________________________________________________ 31
Recording amount of payment_______________________________________________ 31 (a)
Recording date, transaction and the name and location of bank------------------------ 31 (b)
FORWARDING BONDS TO FEDERAL RESERVE BANKS
Preparation _________________________________________________ _______________ 32
Frequency of making shipments______________________________________________ 33
Manner of shipment and insurance _________________________________________ 34-35
SETTLEMENT FOR PAID BONDS________________________________ ____________ 36
ADJUSTMENT OF BONDS ERRONEOUSLY PAID
Error in amount of payment________________________________________________ 37
Material irregularity discovered by Federal Reserve Bank____________________ 38
Errors or irregularities discovered by the Department ______________________ 39
REIMBURSEMENT FOR SERVICES IN PAYING BONDS ___________________ 40-41
—

9

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Important: This memorandum is for USE of incorporated banks and trust companies only, and is
not for general distribution.

MEMORANDUM OF INTRUCTIONS AND EXPLANATION ISSUED IN CON­
JUNCTION WITH DEPARTMENT CIRCULAR NO. 750, PRESCRIBING REGU­
LATIONS GOVERNING PAYMENTS BY INCORPORATED BANKS AND TRUST
COMPANIES IN CONNECTION WITH THE REDEMPTION OF UNITED STATES
SAVINGS BONDS
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 5, 1944.

Fiscal Service
Bureau of the Public Debt

1. This memorandum is presented for the guidance of eligible banks and trust companies con­
sidering the matter of qualifying to make payments of United States Savings Bonds under the pro­
visions of Treasury Department Circular No. 750, and for the use of those institutions which have
qualified. Its purpose is to explain in detail some of the provisions of the circular and to clarify the
transactions authorized thereunder. Other instructions may be issued from time to time either
directly by the Treasury Department or by the Federal Reserve Banks, as fiscal agents of the
United States, which will be made available to each qualified bank. The terms “ Federal Reserve
Bank(s),” “ bond(s),” “ ow ner(s)” and “ bank(s)” whenever used herein, unless otherwise indi­
cated specifically or by context, shall have the same meaning as set forth in Section 321.4 of Circular
No. 750.
I. QUALIFYING TO PAY BONDS
2. Sec. 821.1 of the circular provides that all banks and trust companies incorporated under
general or special laws of the United States, the District of Columbia, any State, territory or
insular possession of the United States or the Canal Zone are eligible to be qualified to make pay­
ments of savings bonds. Sec. 321.2 provides that any eligible bank or trust company desiring so
to qualify shall file an Application-Agreement Form PD 1958 with the Federal Reserve Bank
of the District in which it is located or to which it is assigned. Copies of the Application-Agreement
form will be furnished by the Federal Reserve Banks. Accordingly, after the adoption of an appro­
priate resolution by its governing board or committee, each eligible bank desiring to qualify to pay
bonds should have a duly authorized officer (a) complete and execute the Application-Agreement
form on behalf of the bank (under its corporate seal), (b) have the form acknowledged before a
notary public (who should affix his seal and indicate the date his commission expires), and (c)
forward it to the Federal Reserve Bank of its District.
3. In a case where it appears to be desirable for a bank to begin making payments and it is
impractical to call a meeting of the governing board or committee of a bank to adopt the appropriate
resolution, consideration will be given to the temporary qualification of the bank pending action
by its governing board or committee at its next regular meeting. The president of the bank or, if
he is not available, the officer in charge, should advise the Federal Reserve Bank of the situation,
stating the dates of the last preceding and the next meeting of its board or committee. The letter
should state also that if the temporary qualification is granted, the board or committee will be
requested at the next meeting to consider adoption of a formal resolution and to ratify the execution
of the temporary Application-Agreement and the functions performed thereunder. After the gov­
erning board or committee takes action on the matter the bank will be expected to promptly forward
its finally executed Application-Agreement, if any, to the Federal Reserve Bank, accompanied by
a letter explaining the action taken by the board or committee with respect to ratification of the
temporary Application-Agreement and the bank’s activities thereunder.
4. The appropriate Federal Reserve Bank will consider each application (including tempor­
ary applications) and advise the applicant whether or not its application is approved. The qualifi­
cation of a bank automatically qualifies any of its branches, or facilities (as defined in the circular),
to pay savings bonds, if they are located within the United States (including the territories and
insular possessions of the United States and the Canal Zone). The Treasury will not object to a
qualified bank entering into subagency agreements with local well established and reputable
financial organizations. The terms of any subagency agreement are for determination by each pay­
ing bank: Provided, however, that no subagent shall be permitted any greater authority in the
payment of bonds than is granted to the qualified bank. All bonds paid by a subagent and all trans­
actions in connection therewith shall be handled by and through the bank establishing the subagent.
Each qualified bank shall be fully responsible for the acts of its subagents and for losses resulting
therefrom.
10
—

—

II. ANNOUNCEMENTS REGARDING AUTHORITY TO PAY BONDS
5. Sec. B21.6 of the circular provides that a bank shall not make any announcement or
reference relating' to its qualification or authority to pay savings bonds unless and until it .is noti­
fied of its qualification by the Federal Reserve Bank. After receiving such notification the bank may
make only such announcements or references as may be approved by the Secretary of the Treasury
or by the Federal Reserve Bank of the District, as fiscal agent .of the United States. The limitations
covered in Sec. 321.6 refer to statements for publication or general distribution and should not be
construed as prohibiting a bank from stating facts in reply to specific inquiries in the matter.
It is expected, of course, that such statements will not be made in a manner or for the purpose
of circumventing the prescribed limitations.
6. The announcement set forth below may be made at such time or times as may be deemed
appropriate, in newspapers, magazines or other publications, or by a circular notice or envelope
stuffer: Provided, however, that any such notice or stuffer should not be included in any mailing
relating to the purchase or sale of savings bonds or other securities or in any mailing of such
bonds or securities. The title of the announcement may not be printed in type larger than 12 point
and the text of the announcement may not be printed in type larger than 10 point.
“ANNOUNCEMENT TO OWNERS OF UNITED STATES SAVINGS BONDS OF
SERIES A, B, C, D AND E
“ This bank is pleased to announce that it has been qualified by the United States Treasury
Department to pay any Savings Bond of Series A, B, C, D or E, subject to that Department’s
regulations, whenever any such bond is presented for that purpose by an individual (natural
person) whose name appears on the bond as an owner or coowner and who furnishes proper
identification.
“ The Treasury Department and this bank sincerely request that you do not redeem any
bond before its maturity date unless a real personal emergency requires such action. However,
if circumstances require you to cash a bond this bank will be pleased to serve you.”
7. A qualified bank may include in any of its regular advertisements, or it may display in its
lobby or window, any of the following:
“ (AN) AUTHORIZED AGENT FOR PAYMENT OF U. S. SAVINGS BONDS SERIES
A, B, C, D AND E”
“ AUTHORIZED TO PAY U. S. SAVINGS BONDS SERIES A, B, C, D AND E”
“ THIS BANK IS AUTHORIZED TO PAY U. S. SAVINGS BONDS SERIES A, B, C, D
AND E.”
The bank’s name may be used with any of these statements. The use of these, or any other approved
statements, in the newspapers or other form of printed matter should be in type not larger than 10
point. A lobby or window display of any approved statement must be kept to a conservative size. If
a bank has made subagency agreements, its subagents may announce that they will pay U. S. Savings
Bonds Series A, B, C, D and E for the account of___________________ bank. Such announcements, of
course, must conform in size and character to those used by banks. Request for use of statements
in lieu of the foregoing should be submitted to the Federal Reserve Bank of the District.
III. GENERAL POLICY CONCERNING PAYMENT OF BONDS
8. Particular attention is directed to the provisions of Sec. 321.7 of the circular, because it is of
the utmost importance that payment of the appropriate redemption value of the bonds be made to
and received by only the persons entitled thereto under the terms and conditions of the bonds and
applicable regulations. Banks have both an opportunity and a responsibility to render a valuable
public service by paying bonds only under circumstances which will accomplish this objective.
IV. PAYMENTS AUTHORIZED
9. General Authority.— Sec. 321.8 provides in general that qualified banks may pay a Savings
Bond of Series A, B, C, D or E only upon the request of an individual (natural person) whose name
actually is inscribed on the bond in the capacity of an owner or coowner: Provided, that the bank is
completely satisfied that the bond is in order for payment, that the owner requesting payment is
competent to act and that he is known to or has been identified to the complete satisfaction of the
bank. Supplemental explanations, instructions and exceptions regarding these general statements
are set forth hereinafter. UNDER NO CIRCUMSTANCES, HOWEVER, IS A BANK AUTHOR­
IZED TO PAY ANY BOND OF SERIES F OR G, OR BONDS OF ANY SERIES IF INSCRIBED
—

11

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IN THE NAMES OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR FIDUCIARIES.
PAYMENT MAY NOT BE MADE BY BANKS TO A PERSON NAMED ON A BOND AS THE
BENEFICIARY.
10. Authority where owner’s name is changed.— Sec. 321.8 (a) provides that banks may pay
bonds for owners where their names as inscribed on the bonds have been changed by marriage.
HOWEVER, BANKS ARE NOT AUTHORIZED TO PAY BONDS FOR PERSONS WHOSE
NAMES AS INSCRIBED ON THE BONDS HAVE BEEN CHANGED IN ANY OTHER
MANNER.
11. Authority to pay to parents of minor owners.— Sec. 321.8 (b) provides that a bank may pay
bonds to a parent (father or mother, but no other relative or person) on behalf of a minor child if
the child named on the bond as an owner is too young to request payment on his own behalf and
comprehend the nature of his act. However, such authority is conditioned on the facts that (a) the
child lives with the parent and (b) that the inscription on the bond does not indicate the appointment
of some other person as a guardian or similar legal representative of the estate of the minor. The
term owner, as defined in Sec. 321.4 of the circular, is construed to include parents authorized to
receive payment under Sec. 321.8 (b).
V. SPECIFIC LIMITATIONS ON PAYMENT AUTHORITY AND EXECUTION OF REQUESTS
12. Time limitation on payments of bonds before maturity.— Sec. 321.9 (a) provides that no
bond may be paid until 60 days after the issue date of the bond. The issue date is the first day of the
month in which payment was made for the bond and it should not be confused with the actual date
of issue shown in the issuing agent’s validating stamp impression on the bond.
13. Limitation on payments due to improper identification
(a) General requirements.—
(1) Sec. 321.9 (b) provides that before a qualified bank makes payment of a bond it must
know or identify to its complete satisfaction the person requesting payment as the owner of the bond
(including the identification of a parent requesting payment on behalf of a minor and a person whose
name is changed by marriage).
(2) The Treasury Department will not prescribe the requirements a qualified bank should
follow but will expect identifications to be made in a manner which will give assurance that the owner
of the bond requesting payment receives the proceeds of the bond. In this connection signatures or
other notations may be placed on the back of the bond for purposes of identification.
(3) The Department will not object to a qualified bank accepting bonds for payment by
mail or otherwise from its depositors: Provided, that (a) each such depositor is also the owner
requesting payment, (b) the bank is completely satisfied that the signature to each request for pay­
ment is that of the “ owner depositor,” and (c) the bank is satisfied that the owner desires the bond
proceeds to be credited in his checking or savings account unless, of course, payment is made in cash,
or by a check or similar instrument drawn to the order of the owner.
(4) United States Savings Bonds are not transferable and banks are authorized to pay
them only to the owner named thereon. Accordingly, banks should bear in mind that payments
should not be made if they in any way affect or assist in effecting the sale, discount or hypothecation
of a bond.
(b) Requirements where parents request payment on behalf of minors.— Before making pay­
ment in these cases, the qualified bank must be completely satisfied as to the identity of the parent
and reasonably certain of the facts to be certified to by the parent with respect to the minor child
(see par. 11 hereof). Personal appearance of the child will not be necessary if the bank is reasonably
satisfied as to the facts of the case.
(c) Requirements where owners’ names are changed by marriage.— In the case of a request for
payment by an owner whose name as inscribed on the bond has been changed by marriage, the qual­
ified bank must be satisfied that the owner and the person requesting payment are one and the same
before it makes payment.
14. Limitation on payments due to improperly completed requests for payment.— Sec. 321.9 (c)
provides that a bond may not be paid if the owner does not complete and sign the request for pay­
ment (form for which appears on the back of each bond) in the prescribed manner (see following
paragraphs). A qualified bank should require completion of the request for payment only after it is
satisfied that the bond is in order for payment. If the form for requesting payment is completed
before the bond is presented for payment the bank may have the owner again sign the request,
immediately above or below the first signature. If it is not practicable so to place the second signature
—

12

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on the small size Series E bond, substantially the same wording of the REQUEST FOR PAYMENT
form may be typed or imprinted on any other available place on the back of the bond. The request
then may be completed and signed by the owner in the prescribed manner.
15. Form of signature.— The request for payment should be completed and signed in ink (indel­
ible pencil may be accepted) to show (a) the full name (as inscribed on the bond) of the owner
requesting payment and (b) his home or business address. It is important that the signature of
such owner appear exactly as the name is inscribed on the bond. However, the Treasury Department
is aware that slight errors and variations in the correct spelling of names of owners have been made
inadvertently in inscribing bonds and that they have' been undetected by the owner or, perhaps, con­
sidered by him to be of an insignificant nature. Although a bank is not required to pay bonds erro­
neously or improperly inscribed, it may wish to pay such bonds in some cases because of its knowl­
edge of the facts or its reliance upon the integrity of the owner. Accordingly, if a qualified bank is
satisfied that the owner named on the bond and the person requesting payment are one and the same,
no objection will be made to effecting payment of such bonds. In such cases, however, the request for
payment should show the name of the owner as inscribed on the bond followed by the correct signa­
ture. Each of these cases will require careful and individual consideration; therefore, the Treasury
Department must place upon the paying bank the responsibility for determining the propriety of any
such payment as may be made by it.
16. Signature by mark.— If an owner signs his name to the request for payment by mark, the
signature should be in the form— “ John J. Jones (X) his mark” and must be witnessed by at least
one person in addition to the bank’s employee paying the bond. The witness should attest substan­
tially in the form— “ Witness to the signature by mark” and sign his name and show his address
immediately thereafter, on the back of the bond.
17. Signature of parent of a minor.— In an authorized case of a parent requesting payment on
behalf of a minor owner (see par. 11 hereof), the parent should sign the request for payment in the
form— “ John A. Jones, on behalf of John C. Jones” and affix an endorsement in substantially the fol­
lowing form: “ I certify that I am the________ (father or mother) of John C. Jones and the person
_
with whom he resides. He is _ years of age and is not of sufficient competency and understanding
to sign the request.” This endorsement should be stamped, typed or written in ink (or indelible pen­
cil) on the back of the bond.
18. Signature of a person whose name is changed by marriage.— In the case of a woman whose
name as inscribed on the bond as owner has been changed by marriage, the signature to the request
for payment should be in the form—“ Miss Mary T. Jones, now by marriage Mrs. Mary J. Smith.”
19. Limitation on payments due to material irregularities
(Except mutilation or defacement)
(a) General.— Sec. 321.9 (d) provides that an altered, illegible, incomplete (in whole or in part)
or unauthorized inscription, issue or maturity date or issuing agent’s validating stamp impression
ordinarily shall be considered a material irregularity which will render a bond ineligible for payment
by a qualified bank.
(b) Exception to limitation on payments due to material irregularities— forms of registration.
— Bonds undoubtedly will be presented for payment bearing variations from the forms of registra­
tion authorized by the Treasury. (Examples of authorized forms of registration are set forth in Sec.
321.4 (c) of Circular No. 750. For a full coverage of authorized forms of registration, see Depart­
ment Circular No. 530, as currently in effect at the time of payment.) Although banks are not
required to pay bonds bearing such irregularities, no objection will be made to the payment of these
bonds by a qualified bank if it is satisfied that payment will be made in accordance with the owner­
ship interest conferred by the comparable authorized form of registration. For example, a bond bear­
ing the form of registration— “ John A. Jones and Miss Alice R. Jones,” which is unauthorized, may
be paid to either owner according to the rights obtained by owners under the comparable authorized
registration form of— “ John A. Jones or Miss Alice R. Jones.” These cases will require careful and
individual consideration; therefore, the Department must place upon the paying bank the responsi­
bility for determining the propriety of any such payment.
(1)
Attention is called to one Treasury approved variation to the authorized forms of reg­
istration. The War and Navy Departments (including the Coast Guard and Marine Corps) have been
authorized, in the case of bonds issued to persons in the Military and Naval Forces of the United
States, to show the name of the owner and the coowner or beneficiary, if any, without indicating the
address of either, followed by one or more spaces and then showing the name and address^ of the
person to whom the bond is mailed. In these cases the name appearing with an address in this man­
ner may be either (a) a repetition of the name of the owner, coowner or beneficiary, or (b) the name
—

13

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of another person. In any event the person whose name appears with an address in this manner does
not thereby obtain any right or additional rights in the bond. An example of this form of registra­
tion is :
Registration

Comment

John A.Jones
or
Miss Alice R. Jones

Coowner
Coowner

Mr. Frank J. Jones
Person to whom bond is mailed.
312 Main Street
This person obtains no right in
Center Point
the bond by reason of his name
Maine
being printed thereon.
(c)
Exceptions to limitation on payments due to material irregularities— other than form of
registration.— It may be that bonds will be presented to banks for payment bearing material irregu­
larities in the inscription, issue or maturity date or the issuing agent’s validating stamp. (For
example, a bond may lack an issuing agent’s validating stamp. See also par. 15 hereof.) Although a
bank is not required to pay bonds bearing irregularities, it may wish to pay such bonds in some cases
because of its knowledge of the facts or its reliance upon the integrity of the owner. Accordingly,
if a bank is fully satisfied that no fraud is involved in the apparent irregularities, no objection will
be made to payment of the bonds by the bank. Each of these cases will require careful and individual
consideration; therefore, the Department must place upon the paying bank the responsibility for
determining the propriety of any such payment.
20. Limitations on payment due to mutilation or defacement of bonds.— Sec. 321.9(d) pro­
vides that if a bond or any essential part thereof appears to be altered or is mutilated or defaced in
a manner creating doubt or arousing suspicion with respect to the authenticity or validity of the
bond, it must not be paid by a qualified bank. Where suspicions are aroused, it would be helpful, if
practicable, for the bank to give a receipt for the bond and to obtain as much information as possible
concerning the person presenting it. The bond and information should be communicated promptly
to the Federal Reserve Bank, which will take appropriate action in the matter.
21. Limitation on payments due to “duplicate” bonds.— In explanation of Sec. 321.9(e) it may
be stated that a substitute savings bond marked “ DUPLICATE” is issued by the Department in
cases where a validly issued bond has been determined by the Secretary of the Treasury to have been
lost, stolen or destroyed or to have been mutilated so as to require replacement. In some instances
the bond assumed to have been lost, stolen or destroyed will have been redeemed at the time the bond
marked “ DUPLICATE” is presented for payment. In order to determine the facts of the case and
prevent a possible loss to the United States, the Department requires that all bonds marked
“ DUPLICATE” be cleared with it before payment. For that reason a qualified bank is not author­
ized under any circumstances to pay any savings bond marked “ DUPLICATE.”
22. Limitations on payments due to documentary evidence required to support redemption.—
As indicated in Sec. 321.9(f), Treasury Department Regulations Governing United States Savings
Bonds (Circular No. 530) require documentary evidence to support the redemption of a bond in cer­
tain circumstances. For example, where the owner is deceased and the beneficiary, if any, or some
other party, requests payment of the bond; in most cases where an incompetent or minor is under
legal guardianship; or where a request is made by a person whose name has been changed in any
manner other than by marriage. As the Department desires to pass on the evidence submitted in
these cases before payment is made, banks are not authorized to make payment in such cases.
23. Limitations on payments due to minority.— As stated in Sec. 321.9 (g ) , a minor owner of a
bond is not eligible to request payment thereof if he is not of sufficient competency and understand­
ing to comprehend the nature of his act. The determination of the minor’s competency and under­
standing is a matter for individual consideration in each case. A bank should be satisfied as to the
lack of understanding and competency of the minor to act on his own behalf and that the child
resides with the parent requesting payment before any such payment is made. Personal appearance
of the child to determine his competency and understanding to act for himself will not be necessary
if the bank knows of or is satisfied with respect thereto.
24. Limitations on payments due to incompetency.— Sec. 321.9(h) provides that a bank should
not pay a bond for an owner who, to the knowledge of the bank, has been declared, according to law,
to be incompetent to manage his estate.
25. Limitations on payments due to requests for partial redemption of bonds.— In explanation
of Sec. 321.9 (i), it may be stated that Treasury Department regulations provide that savings bonds
of any series in a denomination other than the lowest eligible for purchase by the general public may
—

14

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be redeemed in part at the current redemption value, but only in amounts corresponding to author­
ized denominations. In these cases the words— “ to the extent of $
(maturity value) ,” are added
to the first sentence of the request for payment. However, a partial redemption requires also the
reissuance of other bonds and special accounting; therefore, banks are not authorized to make any
partial payments on bonds.
VI. DETERMINATION OF REDEMPTION VALUES AND PAYMENTS OF BONDS
26. Determination of redemption values.— As stated in Sec. 321.12, the redemption value of a
bond is determined from the period of years and full half-year the bond is outstanding and the table
of redemption values on the bond. However, for the convenience of banks a special table of redemp­
tion values will be furnished monthly by the Federal Reserve Banks. From these tables the amount
currently due on any bond of Series A, B, C, D and E of any denomination may readily be deter­
mined. The Federal Reserve Banks will advise banks of the date the tables should be expected each
month and if they are not received by that time, the Federal Reserve Bank should be notified imme­
diately. EXTREME CARE SHOULD BE TAKEN TO USE ONLY THE TABLE ESPECIALLY
PREPARED FOR THE MONTH DURING WHICH PAYMENTS ARE BEING MADE.
27. Bonds increase in redemption value at the end of the first year from the issue date and at
the end of each successive half-year period thereafter until maturity. In the event a bond is pre­
sented to a bank for payment just prior to a change in value of the bond, the owner should be
reminded of this fact by the bank, if practicable, so that he may take advantage of the pending
increase in value, if he so desires.
28. Payment of redemption value.—As further stated in Sec. 321.12, the current redemption
value of a bond shall be paid by the bank in cash. However, no objection will be made to any arrange­
ment mutually agreeable to the owner requesting payment, and the bank making payment whereby
the owner accepts, in lieu of cash, a credit to his checking or .savings account with the bank, or a
check or similar instrument payable to his order.
.
^
VII. RECORDING PAYMENT DATA ON PAID BONDS
29. General.— In order to facilitate handling bf and accounting and settlement for paid bonds
as well as to safeguard against payment of the bonds a second time, it, is Considered important for
all concerned that paid bonds be handled by banks in a manner which will accomplish these objec­
tives at the time payment is made. With this in mind the Treasury Department has prescribed a
hand stamp setting forth certain data to record payment, for use by tellers or other employees of
qualified banks.
30. Payment stamps.— The Federal Reserve Bank of the District will provide hand stamps
(hereinafter referred to as “ payment stamp (s)” ), and each bank seeking qualification should advise
the Federal Reserve Bank as soon as possible of the data it desires recorded on the stamps it will use
and the initial number of stamps to be required. The number of stamps should be kept to a minimum
consistent with practical necessity. In the interest of uniformity it appears preferable that only the
Federal Reserve Banks shall obtain the payment stamps. The data ordinarily to be included in the
payment stamp will be as follows:
PAID $

D 366

TH E BLAN K N A TIO N A L BANK
68-76
BLANK, TEXAS

OCTOBER 20, 1944
By

........................... 10

___ For recording amount paid
___ Code number to be supplied by Federal Reserve Bank
___ Name of paying bank
ABA transit number of paying bank
...... Location of paying bank
___ Actual date bond paid
___ As bank may elect, either (1) code number or symbol representing the person
making payment, or (2) the written initials or signature of such person, or
(3) both.

In imprinting such stamps, black or dark blue nonwashable ink should be used and extreme care
should be taken not to smear or blur the data recorded by the stamp.
31. Use of payment stamps
(a) Recording amount of payment.—As soon as a bond is paid the payment stamp should
be imprinted on the bond. An unused space will be found in the upper right portion on the face of all
bonds, immediately to the left of the panel or space used for stating the maturity date or period (in
the case of bonds of Series A to D, inclusive), or the issue date (in the case of bonds of Series E).
The payment stamp should be imprinted on the face of each paid bond in that space in a manner
which will permit writing in a clear space the amount paid. Immediately after stamping the bond
the amount of the bond payment should be written in ink (indelible pencil or a dark colored crayon
—

15

—

will be accepted) in such space on the face of the bond. If more than one bond is presented at the
same time by the same owner, each bond must be stamped and the amount paid on each bond must
be shown thereon. It is essential for facilitating the handling of the bonds that the amount of the
bond payment be recorded in the same general area on all bonds. The necessity of a permanent rec­
ord is the reason for requesting that the amount be recorded in ink, although indelible pencil or a
dark colored crayon may be used. In any recording made on the face of a bond by a bank, extreme
care should be exercised to prevent defacing the bond’s serial number, the name and address of any
of the owners or the beneficiary, the issue or maturity dates, or the issuing agent’s validating stamp.
Only the payment stamp of the qualified bank should be placed on the bond.
,
(b) Recording date, transaction and the name and location of bank.— As provided in Sec.
321.12, each bond shall show in addition to the amount of payment (a) the date of the payment
(month, day and year), (b) the name, location and ABA transit number of the paying bank or a
code number, if any, assigned by the Federal Reserve Bank, and (c) the word “ PAID.” All of
this data will be provided in the bank’s payment stamp. Particular care should be taken to insure
recording the correct date of payment of each bond. A number or other symbol indicating the per­
son in the bank or the subagency thereof responsible for the bond payment, and provision for sig­
nature or initials, may be included.
VIII. FORWARDING BONDS TO FEDERAL RESERVE BANKS
32. Preparation.— Sec. 321.13 provides that banks shall submit paid bonds to Federal Reserve
Banks under instructions of such banks. These instructions will not require any special sorting of
bonds prior to shipment, except that bonds paid in one month must be segregated from bonds paid in
another month.
(a) Banks will be expected to prepare and forward to the Federal Reserve Bank a list show­
ing the amount paid on each bond included in a shipment and the total amount paid on all such
bonds. The amount paid on each bond, and the serial number (unless a microfilm or other record is
maintained as hereinafter provided) should be listed in the order in which the bonds are to be
dispatched to the Federal Reserve Bank. The original list should be included with the shipment
and a copy should be retained by the bank. The lists (hereinafter referred to as transmittal letters)
may be prepared on the type of cash letter form used by the bank in forwarding checks for cash
collection. Each transmittal letter will be expected also to show the total number of bonds pre­
sented with that transmittal letter, in order to facilitate computation of the amount due the bank
as a reimbursement for services in paying bonds.
(b) These paid bonds will be subject to the provisions of the Government Losses in Shipment
Act, as amended, while they are in shipment (see par. 34 hereof). It will be essential to any claim
that may be made by a bank for relief under the provisions of that Act, in the event of the loss or
destruction of or damage to the bonds during shipment, that the bonds be identified by serial num­
bers and amounts paid. If the Treasury Department is advised of the month of payment, and the
serial number and the amount paid on each bond in the shipment, the Department will be able to
identify the bonds included in the shipment and to make settlement with the paying bank. Relief
may not be granted otherwise. A bank may establish a record of the bonds included in a shipment
by (a) microfilm, (b) by recording the bond serial numbers on its transmittal letters directly
opposite the respective bond redemption values set forth thereon, or (c) it may establish the neces­
sary record in any other manner it deems desirable.
33. Frequency of making shipments.— A bank may forward bonds to the Federal Reserve Bank
each business day, although where a bank pays only a small volume of bonds it will be advantageous
if daily shipments can be avoided. IN ANY EVENT ALL PAID BONDS ON HAND ON THE
LAST BUSINESS DAY OF A MONTH MUST BE FORWARDED TO THE FEDERAL RESERVE
BANK NOT LATER THAN THE FOLLOWING BUSINESS DAY.
34. Manner of shipment and insurance.— The shipment of paid bonds to a Federal Reserve
Bank by a bank will be made at the risk of the United States. Accordingly, the shipments will be
subject to the provisions of the Government Losses in Shipment Act, as amended,1 and the regu­
lations2 prescribed pursuant thereto, except as may be modified hereunder. Bonds paid under the
provisions of Treasury Department Circular No. 750 may be prepared for dispatch and may be
shipped to the Federal Reserve Bank in the same or a substantially similar manner in which the
bank handles and ships checks for cash collection. Assuming that (a) the basic record o f ship­
ment, as provided in paragraph 32 hereof, is maintained, (b) the bonds are properly stamped, as
provided in paragraph 31 hereof, and (c) due care is used in handling the paid bonds, a bank
should have no difficulty in establishing its claim for and obtaining relief under the Act in the
event a shipment is lost, destroyed or damaged.
’A ct of July 8, 1937, C. 444, Sec. 1, 50 Stat. 479 as amended by the Act of August 10, 1939, C. 665, Sec. 1, 53 Stat.
1358; U.S.C., title 5, Sec. 134.
2Treasury Department Circulars Nos. 576 and 577.
—

16

—

35. A bank will not be required to mail to Federal Reserve Banks or the Treasury Depart­
ment separate notices of each shipment made, nor will it have to make any accumulated report of
shipments effected under the Act. In the event it comes to the knowledge of a bank that any ship­
ment made by it has been lost, destroyed or damaged, or if it has been so alleged, immediate notice
thereof should be given the Federal Reserve Bank. All provisions of Treasury Department regula­
tions relating to the handling and shipment of valuables under the Government Losses in Shipment
Act, as amended, which are inconsistent with the provisions of this memorandum are hereby modi­
fied with respect to the shipment of paid bonds by qualified banks.
IX. SETTLEMENT FOR PAID BONDS
36. As provided in Sec. 321.14, immediate settlement will be made by Federal Reserve Banks
for the total amount of paid bonds submitted by a bank. Settlement will be made according to the
request of the paying bank, by credit in its reserve account if it is a member of the Federal Reserve
System, or in its clearing account (if any) if the bank is not a member of the System, or in the
reserve or clearing account o f a correspondent of a qualified bank, or settlement will be made by a
check issued by the Federal Reserve Bank. Although Federal Reserve Banks will examine paid
bonds promptly, such examination and redemption of the bonds will not always be possible on a
daily basis. In each instance settlement will be subject to later adjustment for incorrect or improper
payment of bonds.
X. ADJUSTMENT OF BONDS ERRONEOUSLY PAID
37. Error in amount of payment.— In the event of over payment or under payment of the
proper redemption value due on a bond, the Federal Reserve Bank will make the necessary cor­
rection on the bond and its records and will advise the paying bank of the discrepancy, furnishing
all the details necessary for the bank to effect an adjustment with the owner.
38. Material irregularity discovered by Federal Reserve Bank.— Bonds bearing material irregu­
larities of a nature which make it necessary to return them to the bank will be returned promptly
after discovery of the irregularity by the Federal Reserve Bank. If a bond appears to have been
materially altered or mutilated with intent to defraud, the original bond should be retained by the
Federal Reserve Bank for investigation of the case and a photostatic copy of the bond forwarded to
the bank. Thereafter, if and when the bond is acceptable for redemption, the Federal Reserve
Bank of the District will give instructions to the bank with regard to disposition of the case. Adjust­
ment for the amount of payment represented by the bond, if any, will be made in the manner set
forth in paragraph 37 hereof.
39. Errors or irregularities discovered by the Department.— Where an erroneous payment of
or an irregularity in a bond is discovered by or brought to the attention of the Treasury Depart­
ment after receipt by it of the bond, prompt notice will be given to the bank and the case will be
handled as the circumstances may require: Provided, however, that the bank which paid the bond
will not be required to make restitution in connection with such bond unless and until it is deter­
mined by the Secretary of the Treasury that a loss has been sustained by the United States as a
result of fault or negligence on the part of the bank.
XI. REIMBURSEMENT FOR SERVICES IN PAYING BONDS
40. Under the provisions of Sec. 321.5 of Circular No. 750, a qualified bank is entitled to
receive reimbursement for its service in paying savings bonds. Forms will be supplied by the Fed­
eral Reserve Banks for presenting claims for such reimbursement. Each bank desiring reimburse­
ment should present its claims promptly after the close of each quarter (ending March, June, Sep­
tember and December).
41. The form will provide for stating the number of bonds paid and the amount of reimburse­
ment claimed. In stating the number of bonds paid during a quarter, there should be taken into
consideration the total number of bonds included on each of the bank’s transmittal letters bearing
a date within the quarter regardless of when the bonds were received by the Federal Reserve Bank.
This procedure, it is believed, will provide a uniform basis for stating and auditing claims. Each
branch or facility of a qualified paying bank may be regarded as a separate,entity in computing
claims, provided separate transmittal letters support bonds paid by each. Such bonds may be shipped
directly to the Federal Reserve Bank by the branch or facility, or through the parent bank. Sub­
agencies will not be regarded as entities for this purpose, under any circumstances. In the event a
Federal Reserve Bank returns a paid bond (or a photostatic copy thereof) to a bank for correc­
tion and resubmission as new business, the tally for the current quarter shall be reduced accord­
ingly, and the bond will be counted, for the purpose of computing reimbursement, under the date
of the subsequent transmittal letter with which it is resubmitted.
42. Any inquiry in connection with this memorandum or other inquiry with respect to this
subject should be communicated to the Federal Reserve Bank of the District in which the bank
is located.
D. W. BELL
Under Secretary of the Treasury
—

17

—

INDEX
Paragraph
Number

ANNOUNCEMENTS BY BANKS OF AUTHORITY TO PAY BONDS
Approved announcements
....... ______ ______ ___________ :______....................—— ----Manner and frequency of making..... _____ LJ____ ___ ____ ___...------------- -----------------Prohibition against making________ ,___ __________ ..._______ __________________________
Requests for making announcements not covered in memorandum _________ _________
DISCOUNTING, HYPOTHECATION, ETC., OF BONDS

6, 7
6, 7
5
7

____________________1 3 (a )(4 )

PAYMENT OF BONDS
Associations, payments prohibited when bonds are so inscribed ___
-- -- - Beneficiaries, payments prohibited to person named in such capacity on the bond ------Corporations, payments prohibited when bonds are so inscribed________ — -----Documentary evidence supporting payment, prohibition on payment of such bonds
“ DUPLICATE” bonds, prohibition on payment of bonds so marked
Fiduciaries, payments prohibited when bonds are so inscribed___ :

— .
--------—...-------

9
9
9
22
21
9

Forwarding paid bonds to Federal Reserve Banks
33
Frequency of forwarding ____________________
Insurance of shipments
... ...........
_ ______ ..... ...._ 32(b), 34,35
_
_
Listing bonds forwarded
...
______________________________ _________•
32(a)
Losses of shipments _____________________________ ________________________32(b), 34, 35
Manner of forw arding__________________________________________________________
34
Microfilming, or other records of bonds forwarded __________________________
32 (b)
Preparation of bonds______________________ ______________________________________
32
Records and reports of bonds forwarded
_____ ____ _____________ 32 (a ) , 32 ( b ) , 34. 35
Sorting of bonds ____________________________
32
General authority

______ ___ __________________ ____ ____________________ ___ __

9

Identification
Change of name (person whose name is changed by marriage, see also pars. 10, 18)
13(c)
General requirements
____ _____________________
13(a) (1), (2), (3) and (4)
Mail or otherwise, bonds presented by, identification of customers
__________13(a) (3)
13(a) (2)
Notations on back of bonds for purpose o f_________ ____ _____ _ ____ _
Parents of incompetent minors (see also pars. 11, 17)____
_____
13(b)
Incompetency of owners_____ ___ ______ _______ ________________________________

24

Irregularities
Exceptions to general limitations on payments (see par. 19 ( a ) )
Variations from form of registration authorized by Treasury
19(b), 19(b) (1)
Variations in inscription, issue or maturity dates or the issuing agent’s
validating stamp
...
.
___ _____________________ ______ ___
19(c)
General, limitation on payments

__________________________________ ___ ...

19(a)

Limitations on payments due to time bond is outstanding_________________________
12
Mail, or otherwise, presentation of bonds for payment
1 3 (a )(3 )
M inors________________________________________________________ __ _______ 11, 13(b), 17, 23
Mutilation or defacement of bonds, limitation of payments and action to be taken
_ .
.
20
Owners, changes in name of as inscribed on bond (see also pars. 13(c), 18).
10
Parents of incompetent minors_____________________ ______ ____ _____ ___...
1 1 ,13(b), 17
Payment, cash, checks, deposits___________________ ______ __ .... ___ ____ ___ _
28
Payment, recording amount of on bond___ __________
____________________ __...__
31(a)
Partial payments_____ ________________________________________ __ ________________ _
25
Partnerships, payments prohibited when bonds are so inscribed_____________________
9
—

18

—

Paragraph
Number

PAYMENT OF BONDS (Continued)
Policy, general_____________________________________________________________________

8

Redemption values
Tables of, to be provided banks monthly--------------------------------------------------------------Values change in month succeeding that in which bond is presented-----------------------

26
27

Request for payment, Form of
Form of request completed before presentation (see par. 13(a) ( 3 ) ) ----------------------General requirements for completion_____________________________________________
Signatures to, requirements and exceptions______________________________________
Signature to, by mark___________________________________________________________
Signature to, by parent of incompetent minor (see also pars. 11, 1 3 ( b ) ) -----------------Signature to, by owner whose name is changed by marriage (see also, pars.
10 and 1 3 ( c ) ) _______________________________________________________________

14
14
15
16
17
18

Settlement for paid bonds
Adjustments, errors in payment and irregularities_____________________________ 37, 38, 39
By Federal Reserve Banks_______________________________________________________
36
PAYMENT STAMPS
Data to be recorded by_____________________________________________________________ 31(b)
Ink to be used______________________________________________________________________ 31 (a)
Obtaining from Federal Reserve Banks______________________________________________
30
Specimen of data shown on stamp__________________________________________________
30
Use of stamps______________________________________________________________________ 31 (a)
QUALIFICATION TO PAY BONDS
Application— Agreement Form (execution and presentation thereof)-------------------------Bank eligible to qualify_____________________________________________________________
Branches and facilities of banks_____________________________________________________
Notice o f qualification (approval or disapproval of application)--------------------------------Subagents, establishment of by banks________________________________________________
Temporary qualifications___________________________________________________________

2
2
4
4
4
3

REIMBURSEMENT FOR SERVICES
Banks entitled to___________________________________________________________________
Bonds to be included in computation of amount reimbursement--------------------------------Claims for, banks, branches and facilities____________________________________________
Treatment of bonds returned due to improper payment______________________________

40
41
41
41

—

19

—

REGULATIONS GOVERNING UNITED STATES SAVINGS BONDS

1944
First Supplement to
Department Circular No. 530
Fifth Revision, Dated
June 1, 1942,
as amended.

Treasury Department
OFFICE OF THE SECRETARY
Washington, September 5, 1944

Fiscal Service
Bureau of the Public Debt

To Owners of United States Savings Bonds of
Series A, B, C, D and E, and others concerned:

The general payment and redemption provisions of the regulations governing United
States Savings Bonds as set forth in Subpart H of Department Circular No. 530, Fifth
Revision, dated June 1, 1942 (7 F.R. 5158), as amended, are supplemented as follows,
effective October 2, 1944:
“Payment at banks and trust companies: Notwithstanding the foregoing provisions
of this subpart, the provisions of Treasury Department Circulars Nos. 529, 554, 571, 596,
and 653, all as supplemented, amended, or revised, and any instructions on the bonds, an
individual (natural person) whose name is inscribed on the face of a bond of Series A, B,
C, D, or E, either as owner or coowner in his own right, may present such bond (unless
marked ‘duplicate’ ) to any incorporated bank or trust company which has qualified as a
paying agent under the provisions of Department Circular No. 750, dated September 5,
1944, and upon identification to the satisfaction of such paying agent and upon signing
the request for payment, may receive immediate payment for the bond at the current
redemption value if presented prior to maturity, or at full maturity value if presented at
or after maturity. No charge will be made to the owner.
“ Payment at qualified banks or trust companies is confined to bonds of Series A, B, C,
D, and E and will be made only to a person named on the face of the bond as owner or
coowner in his own right. Redemption of bonds of Series F and G, and partial redemption
of bonds of any series, may not be effected at incorporated banks or trust companies.
“ The provisions of this supplement do not supersede the procedure heretofore estab­
lished for the redemption of savings bonds, which will continue in full force and effect.
However, they provide certain additional facilities for the redemption of savings bonds,
which may be availed of by owners concerned, under the conditions set forth herein and
when offered by qualified banks and trust companies.”
HENRY MORGENTHAU, JR.
Secretary of the Treasury

Form PD 1958
TREASURY DEPARTMENT
Fiscal Service
Bureau of the Public Debt

APPLICATION-AGREEMENT
Payments by Incorporated Banks and Trust Companies in connection with the redemption of
United States Savings Bonds

T°
=

___________________ ,194___
□
□
O
□

Federal Reserve Bank, Dallas 13, Texas
Federal Reserve Bank Branch, El Paso, Texas
Federal Reserve Bank Branch, Houston 1, Texas
Federal Reserve Bank Branch, San Antonio 6, Texas
A s fiscal agent of the United States

The undersigned, eligible under the provisions of Sec. 321.1 of United States Treasury Depart­
ment Circular No. 750, hereby applies for qualification to make payments in connection with the
redemption of United States Savings Bonds, as provided in the said Circular No. 750, and, upon
being so qualified, hereby agrees:
1. To be bound by and to comply with the provisions of Treasury Department Circular No. 750,
including all supplements and amendments thereof and instructions as may be issued there­
under.
2. That the Secretary of the Treasury, or the Federal Reserve Bank of Dallas, by written notice,
may, at any time, and without previous demand or notice, terminate the qualification of the
undersigned, if such authority is granted pursuant to this application; and that in the event
of such termination the undersigned, after receipt of such notice or after the date of ter­
mination specified therein, will not thereafter pay any United States Savings Bonds.
It is understood that the undersigned may withdraw from this Agreement at any time upon
written notice of such intention to the Federal Reserve Bank of Dallas.
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed under
seal by the officer below named, thereunto duly authorized by a resolution of its governing board or
committee adopted on the______ day of______________________________ , 194
(Bank)

(Address)

BANK
SEAL

By---------------------------------------------(Signature of Officer)

(Title of Officer)

ACKNOWLEDGMENT
State of
County of

SS.

On this_____ day of__________________ , 194

, before me appeared- ........................ ................. ,

to me personally known, who, being by me duly sworn, did say that he is the. ____________________
(Title of Officer)

of the_________________________________________

_____________________________ and that the seal

(Name of Institution)

affixed to the above instrument is the corporate seal of said institution, and that the above instru­
ment was signed and sealed in behalf of said institution by authority of its governing board or com­
mittee, and said officer acknowledged said instrument to be the free act and deed of said institution.

(Notary Public)

NOTARY
SEAL

My commission expires.

Form PD 1959
TREASURY DEPARTMENT
Fiscal Service
Bureau of Public Debt

NOTICE OF QUALIFICATION OF AN INCORPORATED BANK OR TRUST COM­
PANY TO MAKE PAYMENTS IN CONNECTION WITH THE REDEMPTION
OF UNITED STATES SAVINGS BONDS

NO.

(Date)

To:

Your Application-Agreement Form PD 1958, dated

_ ____
_

____

,

has been approved as of this date. You are hereby notified that you are qualified to make
payments in connection with the redemption of United States Savings Bonds pursuant to
the provisions of Treasury Department Circular No. 750, and any supplements or amend­
ments thereof and instructions issued pursuant thereto.

FEDERAL RESERVE BANK OF DALLAS
Fiscal Agent of the United States
By

Form PD 1958-T
TREASURY DEPARTMENT
Fiscal Service
Bureau of the Public Debt

TEMPORARY APPLICATION-AGREEMENT
Payments by Incorporated Banks and Trust Companies in connection with the redemption of
United States Savings Bonds
To:

-----------------------------------------------(Date)

□ Federal Reserve Bank, Dallas 13, Texas
□ Federal Reserve Bank Branch, El Paso, Texas
□ Federal Reserve Bank Branch, Houston 1, Texas
□ Federal Reserve Bank Branch, San Antonio 6, Texas
A s Fiscal Agent of the United States

The undersigned, eligible under the provisions of Sec. 321.1 of United States Treasury Depart­
ment Circular No. 750, hereby applies for qualification to make payments in connection with the
redemption of United States Savings Bonds, as provided in the said Circular No. 750, and, upon
being so qualified, hereby agrees:
1. To be bound by and to comply with the provisions of Treasury Department Circular No. 750,
including all supplements and amendments thereof and instructions as may be issued there­
under.
2. That the Secretary of the Treasury, or the Federal Reserve Bank of Dallas, by written
notice, may, at any time, and without previous demand or notice, terminate the qualification
of the undersigned, if such authority is granted pursuant to this application; and that in the
event of such termination the undersigned, after receipt of such notice or after the date of
termination specified therein, will not thereafter pay any United States Savings Bonds.
It is understood that the undersigned may withdraw from this Agreement at any time upon
written notice of such intention to the Federal Reserve Bank of Dallas.
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed under
seal by the officer below named.
(Name)

(Address)

BANK
SEAL

By---------------------------------------------(Signature of Officer)

(Title of Officer)

ACKNOWLEDGMENT
State of
County of

SS.

On this„ ..... day of___________________ , 194___, before me appeared__________________________,
to me personally known, who, being by me duly sworn, did say that he is t h

e ...._______________
(Title of Officer)

of the___________________________________________________________________ _____ and that the seal
(Name of Institution)

affixed to the above instrument is the corporate seal of said institution, and that above instrument
was signed and sealed in behalf of said institution.

(Notary Public)

NOTARY
SEAL

My commission expires

ORDER FOR PAYM ENT STAMPS FOR USE OF QUALIFIED AGENTS
PLEASE SUBMIT THIS ORDER IN DUPLICATE

Toi

□
□

Federal
Federal
Federal
Federal

Reserve
Reserve
Reserve
Reserve

Bank, Dallas 13, Texas
Bank Branch, El Paso, Texas
Bank Branch, Houston 1, Texas
Bank Branch, San Antonio 6, Texas

Please prepare Payment Stamps to be used in stamping paid savings bonds, as foil
Number of stamps required______________________

(Name of Incorporated Bank)

(Location)

(State)

_______________________________________

DO N O T U SE TH

(A . B. A . Number)

--------------------

Last line of payment stamp may read:
(
(

)

Teller No.______
or
) By_________ No____
Please indicate form of stamp desired.

-------------------

By.
(Date)
(Title)
N O TE :

This order should be submitted immediately if you contemplate qualifying as :
Agent in order to avoid delay in delivery of stamps following actual qualificat

ORDER FORM FOR USE BY BANKS QUALIFIED TO PAY
UNITED STATES SAVINGS BONDS

To:
□
□
□
□

Federal Reserve
Federal Reserve
Federal Reserve
Federal Reserve
As Fiscal Agent

Bank, Dallas 13, Texas
Bank Branch, El Paso, Texas
Bank Branch, Houston 1, Texas
Bank Branch, San Antonio 6, Texas
of the United States.

Please send us the following:
________ Cards— Redemption Value Tables. (These will be supplied after qualification.)
________ Pamphlets— Treasury Department Circulars Nos. 750 and 751 and memorandum of
instructions.
________ Transmittal Letters
(Specify data or forms desired)

(Date)

(Name of Bank)

(Address)

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