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FE D E R AL R E SE R V E B AN K O F D A L L A S
F IS C A L A G E N T O F TH E U N ITE D S T A T E S

Dallas, Texas, M ay 18,1951

IM PO RTAN T IN FO R M ATIO N R E L A T IN G TO P A Y M E N T OF
U N ITE D ST A T E S S A Y IN G S BONDS

To All Qualified Paying Agents in the
Eleventh Federal Reserve District:

This letter is fo r the purpose o f acquainting paying agents w ith the enclosed Treasury
D epartm ent Circular No. 888, w hich is effective June 1, 1951. The circular sets forth a procedure
w hereby paying agents may, subject to the provisions and conditions o f the circular, accept United
States Savings Bonds that an owner or coow ner (if named as such on the bonds) requests to have
paid, w ithout requiring the owner to sign the request fo r paym ent on the back o f the bond. These
bonds after being specially endorsed by the agent m ay then be paid by the agent, if the bonds
are otherw ise eligible fo r paym ent under Circular No. 750, Revised. I f a bond is not eligible fo r
paym ent b y the paying agent it shall be forw arded to the Federal Reserve Bank fo r payment.
A lthough the currently established methods fo r m aking payment o f savings bonds are not
changed by the new procedure there is a distinct difference as to an agent’s responsibility fo r a loss
that m ay result fro m the paym ent o f any bond processed under Circular No. 888. That circular
provides that a paying agent gives the United States an unconditional guarantee as to the validity
o f each transaction, including the identification o f the owner and the disposition o f the proceeds
in accordance with the owner’s instructions, and that if a loss is incurred by the United States as
a result o f such transaction the agent shall, upon request o f the Treasury Department, make prom pt
reim bursem ent fo r the amount o f the loss. The unconditional guarantee means that the agent is
responsible whether or not the loss resulted from its fault or negligence.
In order that a qualified paying agent o f savings bonds may have the privilege o f processing
bonds under Circular No. 888, the governing board or com m ittee must pass a resolution authorizing
the institution to apply fo r authority to process the bonds under that circular. A n official form ,
PD 2291, copies o f which are enclosed, has been provided fo r this purpose. This form must be duly
executed and returned to this bank. W hen the form is in order and there is no reason fo r denying
the institution the privilege, a form PD 2292 will be executed by this bank and forw arded to the
payin g agent as notification that it is eligible to process bonds by special endorsement under
Circular No. 888. Upon receipt o f such notification, assuming that official endorsement stamps are
available, the agent m ay begin processing bonds June 1, 1951, and thereafter under the circular.
The form PD 2291 provides also fo r requisitioning official endorsement stamps or obtaining approval
o f designs fo r such stamps or dies that your institution m ay wish to obtain at its own expense. The
requirem ents fo r such stamps are covered hereinafter.
Presum ing that a bond was eligible fo r processing under Circular No. 888 and your institution
was willing to process it thereunder the follow ing is, in brief, an outline o f the procedure that
would take place:
1. The appropriate employee o f your institution, after the owner has established his identity,
would ascertain that such owner has given adequate authorization to effect payment o f the
bond and instructions fo r disposition o f the bond proceeds.

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

2.

T h e bon d w ould be en dorsed.

3.

T h e b on d w ould b e p aid b y :
(a ) Y o u r In stitu tion i f th e bon d w ould o th erw ise b e eligible f o r p aym en t under the p ro v i­
sions o f T rea su ry D ep a rtm en t C ircu lar N o. 750, R evised , and th en fo rw a rd e d , w ith
o th er paid bonds, in th e usual m anner to th is F ed era l R ese rv e B ank, or
(b ) A F ederal R eserv e B an k if th e bon d w as n o t eligible f o r p a y m e n t (th is w ou ld include
all b onds o f S eries F and G and all b on d s o f Series A th ro u g h E th a t m a y n o t b e paid
u n der th e p rov ision s o f C ircular N o. 750, R evised ) b y a p a y in g agen t. It should be
fo rw a rd e d to th is bank o r th e ap p rop riate b ra n ch f o r p aym en t b y m eans o f a ch eck
d ra w n on th e T rea su rer o f th e U n ited States.

4.

T h e p roceed s i f receiv ed b y y o u r in stitu tion w ould be d istrib u ted b y it. Th e ch eck s draw n
under 3 ( b ) a bove w ould, o f cou rse, b e m ailed b y th e F ed eral R ese rv e B ank in accord an ce
w ith th e ow n er’s in stru ction s as tra n sm itted b y th e in stitu tion en d orsin g th e bond.

5. Y o u r in stitu tion w ou ld ta k e su ch steps as it deem s n ecessa ry o r desirable to m ain tain s u f­
ficien t eviden ce o f its a u th o rity to a ct in th e tra n sa ction as w ell as eviden ce o f its com plia n ce
th ere w ith , inclu d in g iden tifica tion o f th e ow n er req u estin g p a ym en t and d isp osition o f th e
p roceed s in a ccord a n ce w ith his in stru ction s.
T h e p roced u re w as d esign ed f o r use, p rim arily, b y qualified p a y in g a gen ts h old in g sav in gs
b ond s in s a fek eep in g f o r k n ow n cu stom ers or held in con n ection w ith th e ir tru st a ctivities. H ow e v e r,
use o f th e p roced u re is n ot confined to su ch tran saction s. F u rth e rm o re it should be u n derstood th a t
(s u b je c t to re ce ip t b y th e a g en t o f due n otice o f e lig ib ility , F o r m P D 2292) it is en tirely op tion a l
w ith each qualified a g e n t w h eth er it uses th e p rocedu re. H ow ever, in no even t m a y th e p roced u re
be used, e ith e r d ir e ctly or in d irectly, to a ffe ct a tr a n s fe r o f th e ow n ersh ip o r a h y p o th e ca tio n or
p ledge o f a b on d .
I f y o u r in stitu tion h as d ecided to use th e n ew p roced u re it sh ould determ in e th e n u m ber o f
special en d orsem en t stam ps it will requ ire. T h is n u m ber should be included in th e fo r m , P D 2291,
to be filed w ith th is bank. I f addition al stam ps are requ ired th e re a fte r, th e y m a y b e ob tain ed b y
letter ov er th e sig n a tu re o f an officer o f y o u r in stitu tion . A n a p p rop riate n u m ber o f stam ps w ill
b e supplied b y th is bank.
I t ca n n ot b e em phasized too s tro n g ly th a t th e m isu se o f th e stam ps cou ld resu lt in losses to
th e a gen t. T h is s u g g ests th e d esira b ility o f ca re fu lly co n tro llin g th e use and cu sto d y o f th e stam ps.
I t follow s, o f cou rse, th a t a m in im u m n um ber o f th ese stam ps should be obtained. T h e stam ps
sh ould be retu rn ed to th e F ed era l R ese rv e B an k i f th e in stitu tion d iscon tin u es as a p a y in g a g e n t
o r i f oth erw ise req u ested b y th e F ed era l R ese rv e B ank.
I f a p a y in g a gen t d esires to ob tain its ow n en dorsem en t stam ps it m a y do so a fte r o b ta in in g
a pproval th e r e o f fr o m th is F ed era l R ese rv e B ank. A specim en im pression sh o w in g th e data to be
included and a n y special d esign to be obtain ed should be supplied to th is b an k w hen such ap p rov al
is requ ested. T h ere is n o o b je c tio n to th e inclusion o f a code o r o f space f o r initialin g o r sig n in g ,
f o r th e pu rp ose o f in d ica tin g th e em p loy ee u sin g th e stam p o r f o r sh ow in g a date th e stam p w as
im pressed. H ow ever, th e stam ps fu rn ish e d b y th is bank will n ot be sp ecia lly prepared to co v e r
th ese addition s. T h e stam p m u st, o f cou rse, con tain th e data p re scrib e d in C ircu lar N o. 888 and th e
im pression w h en m ade, in clu d in g a n y special d esign , m u st n ot exceed a space boun ded b y one and
th ree-q u a rters ( 1 % ) inch es in th e vertica l d im en sion , b y th ree (3 ) inch es h orizon tally.
A ll o f th e en dorsem en t stam p im pression s m u st be le g ib ly m ade in a black o r o th e r d arkcolored ink su itable f o r m icrofilm in g. T h ese im p ression s should be placed in th e area p rovid ed on
th e b ack o f th e bond f o r ow n ers to sig n req u ests f o r paym en t. T h ere is no o b je ctio n to re co rd in g
sym b ols, initials or o th er n ota tion s on th e b a ck o f th e bond to aid th e a g e n t in id e n tify in g th e
em p loyee respon sible f o r th e tra n sa ction o r f o r re co n stru ctin g th e tr a n s a ctio n ; p rovid ed, th a t th e
a g en t understands it h as th e p rim a ry resp o n sib ility f o r p ro d u cin g su ch eviden ce as m a y be req u ired
to su pp ort a tran saction .
A ll series o f savin gs b on d s are eligible f o r p ro ce ssin g under th e p roced u re p rescrib ed in C ircu lar
N o. 888 b u t th e y m a y be so p rocessed on ly if an o w n e r nam ed as su ch on th e bond a ctu a lly req u ests
p a ym en t o f th e bond. T h e term “ ow n er” as used in C ircu lar N o. 888 also includes a co o w n e r and it
is n ot confined to individuals. A bon d m a y n ot be p rocessed w ith o u t a sig n a tu re to th e req u est f o r
p a ym en t on th e bond if a p a ren t req u ests p a ym en t in b e h a lf o f a m in or child w h o is n am ed on th e
b on d as its ow n er n or m a y a bon d be so p rocessed if th e req u est is m ade b y a b en eficiary w h o h as
b e co m e solely entitled to th e bon d b y rea son o f th e death o f th e ow n er. B on ds reg istered in th e

REGULATIONS GOVERNING THE PAYMENT OF UNITED STATES
SAVINGS BONDS WITHOUT THE OWNERS’ SIGNATURES
TO THE REQUESTS FOR PAYMENT
1951
Department Circular No. 888
Fiscal Service
Bureau of the Public Debt

TREASURY DEPARTMENT
Office of the Secretary
Washington, May 15, 1951

P u rsu a n t to section 22 (a ) o f th e Second L ib e r ty B on d A ct, as am en ded (31 U.S.C. 7 5 7 c ), the
fo llo w in g a dd ition al reg u la tion s app lica ble to U nited S ta tes S a vin gs B on ds are p rescrib ed b y the
S e c re ta ry o f th e T rea su ry , e ffectiv e June 1, 1951.
Sec. 330.1. P u rp ose o f reg u la tion s.— T h ese reg u la tion s p rescrib e a p ro ce d u re w h ereb y eligible
qualified p a y in g a gen ts m a y specially en dorse certa in U n ited S tates S avin gs B on ds in lieu o f re q u irin g
th e ow n er o r coow n er to sign th e req u est f o r p aym en t and to p a y such b onds i f th e y are oth erw ise
s u b je c t to p a ym en t under th e p rov ision s o f T re a su ry D ep artm en t C ircu lar 750, R evised, o r to fo rw a rd
to th e F ed era l R eserv e B an k o f th e D is trict f o r p a ym en t th o se b onds w h ich are n ot s u b je ct to p aym en t
u n d er said C ircu lar 750. A lth o u g h th e p roced u re is d esign ed f o r use p rim a rily in con n ection w ith b ond s
held b y p a y in g a gen ts in sa fek eep in g or tru st a ccou n ts f o r kn ow n cu stom ers, it is n ot lim ited to b on d s
held in su ch accou n ts. H ow ever, U N D E R N O C IR C U M S T A N C E S shall th e p roced u re b e used to e ffe ct
a tr a n s fe r o f ow n ersh ip o r a h y p oth eca tion or p led ge o f a bond. V io la tio n o f th ese p roh ib ition s w ill be
ca u se f o r th e w ith d ra w a l o f an a g e n t’ s p riv ileg e to p rocess bonds u nder th is circu lar.
Sec. 330.2. A g e n ts eligible to p rocess b on d s.— In ord er to establish its e lig ib ility to p rocess savin gs
b onds under th is circu la r, an in stitu tion qualified as a p a y in g agen t o f savin gs b onds m u st c e r tify on
T re a su ry D ep a rtm en t F o r m P D 2291, th a t b y d u ly execu ted resolu tion o f its g ov ern in g b oa rd or
com m ittee, th e in stitu tion has been a u th orized to ap p ly f o r th e p riv ile g e o f p ro ce ssin g bonds in a cco rd ­
a n ce w ith th e p rovision s and con d ition s o f th is circu la r, in clu d in g all su pplem ents, am en dm en ts and
rev ision s th e r e o f and a n y in stru ction s issued in con n ection th erew ith . Such a p p lication and certifica tion
sh ould b e m a d e to th e F ed eral R e se rv e B an k o f th e D istrict w h ich will, w h en app rop riate, issue, on
F o r m P D 2292, n otifica tion o f th e a ccep ta n ce o f such app lica tion -certifica tion . T h e S ecreta ry o f the
T re a s u ry reserv es th e r ig h t to w ith d ra w su ch p rivilege fr o m a n y in stitu tion at a n y tim e and such
a ction m a y b e taken eith er b y th e T rea su ry D ep artm en t d ire ct o r th ro u g h a F ederal R ese rv e B ank,
a ctin g as fiscal a g en t o f th e U n ited States.
Sec. 330.3. B on ds eligible f o r p rocessin g .— A U n ited S tates S a vin gs B ond o f a n y series m a y be
p rocessed under th ese reg u la tion s p rovid ed th a t th e re g iste re d ow n er (w h ich term as n o w and h e re a fte r
used in th is circu la r includes a coo w n e r) nam ed on th e bon d requ ests its paym en t. T h e term “ o w n e r”
is defined to inclu de individuals, in corp ora ted and u n in corp ora ted bodies, e x ecu tors, a d m in istrators, and
o th e r fid u ciaries nam ed on th e bonds. T h e p roced u re does n ot apply, f o r exam ple, to cases w h ere a
p a re n t req u ests p a ym en t in b e h a lf o f a m in or child w h o is nam ed on th e b on d as its ow n er o r to cases
w h e re req u ests fo r p aym en t are m ade b y su rv iv in g beneficiaries, or to a n y oth er cases re q u irin g death
certifica tes o r o th e r su p p ortin g eviden ce.
S ec. 330.4. G u a ra n ty giv en to th e U n ited States.— E a ch p a y in g a g e n t b y th e a ct o f p a y in g a bond
w ith o u t th e sig n a tu re o f th e ow n er or p resen tin g a bond to th e F ed eral R eserve B ank o f th e D istrict
f o r p a ym en t w ith o u t th e ow n er’ s sig n a tu re, u nder th ese regu lation s, shall be deem ed th e re b y to have
u n con d ition ally gu a ra n teed to the U nited S tates (a ) th e v a lid ity o f th e tra n sa ction , in clu d in g th e
iden tifica tion o f th e ow n er and th e d isp osition o f th e p roceeds in a ccord a n ce w ith his in stru ction s, and
( b ) th a t i f a loss is incu rred b y th e U n ited States as a resu lt o f such tran saction th e a gen t shall upon
re q u e st o f th e T rea su ry D ep artm en t m ake p rom p t reim b u rsem en t f o r th e am ou n t o f the loss.
Sec. 330.5. E vid en ce o f ow n er’s a u th oriza tion to a gen t.— B y th e a ct o f p resen tin g a bon d to the
F e d e ra l R eserv e B an k (eith er as a “ p aid ” b on d or f o r p aym en t b y th e F ed era l R eserve B an k ) w ith ou t
th e ow n er’ s sig n a tu re to th e req u est f o r paym en t, th e p a y in g a gen t rep resen ts to th e U n ited S tates
th a t it has ob tain ed adequ ate in stru ction s fr o m th e ow n er w ith re sp e ct to p a y m e n t o f th e bond and
d isp osition o f its p roceeds. T o su p p ort th is rep resen ta tion a gen ts should m ain tain ap p rop riate record s
e v id e n cin g th e receip t o f su ch in stru ction s as well as re co rd s estab lish in g com plia n ce th erew ith .

Sec. 330.6. Endorsement of bonds.— E ach bon d p rocessed u nder th ese reg u la tion s shall b e a r t h e
fo llo w in g en dorsem en t (see Sec. 330.7 f o r a dd ition al in stru ction s co v e rin g b onds in scribed in c o o w n e r­
sh ip f o r m ) :
“ A b s e n ce o f ow n e r’ s sign a tu re, and
v a lid ity o f tran saction , gu aran teed
in a ccord a n ce w ith T re a su ry D e­
p a rtm en t C ircu lar N o. 888.
(N am e and location of agent)”
T h is en dorsem en t m u st b e p laced on th e b ack o f th e b on d in the space provided for the owner to request
payment. T h e en dorsem en t stam p m u st be legibly im pressed in b la ck o r o th e r d ark -colored ink. T h e
F ed eral R eserv e B an k o f th e D istrict w ill fu rn is h ru b b er stam ps fo r im p ressin g th e above en d orsem en t
or, in lieu th e re o f, w ill a p p rov e design s f o r suitable stam ps to be ob tain ed b y p a y in g a gen ts. R e q u e sts
f o r en dorsem en t stam ps to be fu rn ish ed o r a pproved b y th e F ed era l R ese rv e B an k shall be m a de in
w ritin g b y an officer o f th e in stitu tion .
Sec. 330.7. Bonds in coownership form.— In a dd ition to th e en dorsem en t p rescrib ed in Sec. 330.6
h e re o f, th e p a y in g a g e n t shall in th e case o f b ond s re g iste re d in coow n ersh ip fo rm in d icate w h ich
coow n er req u ested p aym en t. T h is should be done b y en circlin g in b la ck o r o th e r d ark -colored ink th e
nam e o f su ch coow n er (o r b oth coow n ers if a jo in t req u est f o r p a ym en t is m a d e ) as it appears in th e
in scription on th e fa c e o f th e b on d .
Sec. 330.8. Payment of bonds.— B on ds b ea rin g th e special en dorsem en t p rescrib ed in Sec. 330.6
h e re o f, m a y be paid b y p a y in g a gen ts i f th e bonds are o th erw ise eligible f o r p a ym en t under th e p r o v i­
sions o f D ep a rtm en t C ircu lar 750, R evised . (T h e sam e specific lim itation s o f p a ym en t a u th o r ity se t
fo r th in Sec. 321.9 o f D ep artm en t C ircu lar 750, R e v ise d — e x ce p t f o r a bsen ce o f th e ow n e r’s s ig n a tu re
u nder th ese reg u la tion s— con tin u e to a p p ly .) T h ese paid bonds should, o f cou rse, b e a r th e a g e n t’ s
p aym en t stam p and th e data requ ired th ereb y and th e b ond s should be fo rw a rd e d to th e F e d e ra l
R eserve B an k o f th e D istrict, w ith o th er paid bonds, in th e usual m anner. A ll o th e r b onds b e a rin g th e
special en dorsem en t should be fo rw a rd e d to th e F ed era l R ese rv e B an k o f th e D istrict f o r p a y m e n t.
T h ese bonds should be separated fr o m paid bonds and sh ould b e a ccom pa n ied b y a pp rop riate in stru ctio n s
g o v e rn in g d isp osition o f th e ch eck to be issued in p a y m e n t o f th e bon d p roceed s. See Sec. 330.3 h e r e o f
w ith re s p e ct to b ond s eligible f o r special en dorsem en t u n der th ese regu lation s.
Sec. 330.9. Liability of paying agents under this circular.— In a ccord an ce w ith th e g u a ra n te e
p rovision s o f Sec. 330.4 h ereof, p a y in g a gen ts are a bsolu tely and u n con d ition ally liable f o r a n y losses
in cu rred b y th e U n ited S ta tes b y rea son o f th e p ro ce ssin g o f b ond s under th ese regu lation s.
Sec. 380.10. Functions of Federal Reserve Banks.— T h e F ed eral R ese rv e B anks, as fiscal a g e n ts
o f th e U nited States, are a u th orized and d irected to p e rfo rm such duties, and p rep are and issu e su ch
in stru ction s, as m a y be n ecessa ry to th e fu lfillm en t o f th e p u rp ose and req u irem en ts o f th is circu la r.
T h e F ederal R eserv e B anks m a y utilize a n y o r all o f th eir B ran ch es in th e p e rfo rm a n ce o f th ese du ties.
Sec. 330.11. M odification o f oth er circu la rs.— T h e p rovision s o f th ese reg u la tion s shall b e co n s id ­
ered as a m en da tory o f and su p p lem en ta ry to D ep a rtm en t C irculars 530, 653, 654, 750, 751, and 885,
and any revision s th e re o f, and th ose circu la rs are h e re b y m odified w h ere n e ce ssa ry to a ccord w ith th e
p rov ision s h e re o f.
Sec. 330.12. Other circulars generally applicable.— E x ce p t as p rovid ed in th ese reg u la tion s th e
circu la rs re fe r re d to in th e p reced in g section w ill con tin u e to b e g en era lly applicable.
Sec. 330.13. Supplements and amendments.— Th e S e cre ta ry o f th e T re a su ry m a y a t a n y tim e o r
fr o m tim e to tim e supplem ent or am end th e term s o f th ese reg u la tion s, o r o f any am en dm en t o r
supplem en t th ereto.
JO H N W . S N Y D E R
S e cre ta ry o f th e T re a su ry

n am e o f an ex e cu to r or o th er fidu ciary, a corp ora tion or an u n in corp orated b od y, as ow n er m a y be
p ro cessed under th e circu la r unless d ocu m en ta ry eviden ce o f a u th ority is req u ired u nder T rea su ry
reg u la tion s g ov ern in g savin gs bonds, D ep artm en t C ircular N o. 530, S ix th R evision . In th is co n ­
n e ction a gen ts are refe rre d to S u bp arts 0 , P and Q o f th a t C ircular. In all cases w h ere evidence
o f a u th o rity to receiv e p aym en t is requ ired, the requ ests f o r p aym en t on th e bonds m u st be signed.
W ith resp ect to bonds in coow n ersh ip fo r m th a t m a y be p rocessed u nder C ircu lar N o. 888,
a gen ts a re req u ired to indicate w h ich coow n er req u ested paym en t. T h is m a y be done b y en circlin g,
in black or o th er d ark colored ink, th e co o w n e r’s nam e as it appears in th e in scrip tion on th e fa c e
o f th e bond. I f coow n ers h ave jo in tly req u ested p a ym en t b o th nam es sh ould be encircled.
It should be u n derstood th a t T rea su ry reg u la tion s (C ircu la r N o. 530) p ro v id e th a t a s u rv iv in g
co o w n er b ecom es th e sole and a bsolu te ow n er o f th e bon d i f it has n ot been p resen ted f o r p a ym en t
d u rin g th e life o f th e coow n er. T h e sam e is true o f beneficiaries th a t su rvive b on d ow n ers. B ecau se
o f su ch r ig h t a p a y in g a gen t should be aw are o f th e risk o f loss th a t it ta kes w h en ever it p rocesses
a bon d on th e b asis o f an a u th oriza tion f o r p aym en t th a t w'as n o t re ce n tly filed b y th e ow n er to
w h om p a ym en t w ill be m ade.
T h e p roced u re f o r a ctu a lly p a y in g b onds has n ot been ch an ged b y th e p roced u re f o r en dorsin g
bonds. I f th e b on d is eligible f o r en dorsem en t under C ircu lar N o. 888 it m a y be paid b y a p a y in g
a g e n t if th a t b on d is eligible also f o r p aym en t under th e p rovision s o f C ircu lar N o. 750, R evised .
T h e p a ym en t p roced u re p rescrib ed u nder C ircu lar N o. 750 shall be fo llo w e d in its e n tire ty f o r such
bon d s, inclu din g th e affixation and com pletion o f th e data req u ired b y th e a g e n t’ s p aym en t stam p.
In o th er w ords b oth the special en dorsem en t stam p (on th e b ack o f th e b on d ) and th e p aym en t
sta m p (o n th e fa c e o f th e b on d ) o f the p a yin g a g e n t sh ould appear on bonds p aid b y th e agen t.
I f th e bon d is n ot eligible f o r p a ym en t b y a p a y in g a g e n t under C ircu lar N o. 750, R evised , it
m u st, as h e re to fo r e , be fo rw a rd e d to th is bank or th e a p p rop ria te b ra n ch f o r p aym en t b y a ch eck
d ra w n on th e T rea su rer o f th e U nited States. T h ese w ould include b ond s o f Series F and G and all
S eries A th ro u g h E b onds n ot paid b y p a y in g a gen ts. T h ese bonds, assu m in g, o f course, th a t th e y
a re eligible f o r endorsem en t, m u st b ear th e special en dorsem en t on th e b ack o f th e bond. Such bonds
w ou ld n ot b ear th e a g e n t’s p a ym en t stam p. Th e m a ilin g address fo r fo rw a rd in g th e ch eck — w h ich
ch e ck will be draw n to th e ord er o f the ow n er indicated b y the agen t— m u st be show n, oth erw ise
th e ch eck w ill be fo rw a rd e d to th e p a y in g a gen t su b m ittin g it to th is bank. B on ds su bm itted f o r p a y ­
m en t b y th is b an k m u st be k ep t separate fro m b ond s paid b y p a y in g a gen ts.
T h e reg u la tion s provid e th a t an a gen t obtain a u th o rity fo r th e p a ym en t o f b onds and in stru c­
tion s f o r d isp osition o f th e p roceed s fr o m an ow n er and reta in such eviden ce to g e th e r w ith n ecessary
re co rd s evid en cin g com plian ce th erew ith . It is exp ected th a t p a y in g a gen ts will use th is p rocedu re
on ly f o r cu stom ers th a t are fu lly k n ow n to them . T h e re fo re th e y have th e fu ll resp on sib ility fo r
p ro p erly id e n tify in g th e ow n ers o f b ond s th a t th e y a ccep t f o r endorsem en t. T h e T rea su ry D ep art­
m en t w ill n ot p rescrib e any specific rules g ov ern in g th e fo r m or typ e o f such au th orities, in stru ction s,
and record s th a t should b e obtained. Inasm uch as ow n ers o f public d eb t ob liga tion s m a y p resen t
th e ir secu rities, or claim s in th e event o f alleged loss o r th e ft o f the secu rities, at a n y tim e th e
T re a su ry D ep artm en t could n ot p rop erly authorize th e d estru ction o f a n y re co rd s th a t an a gen t
m a y ob tain as eviden ce o f th e p ro p rie ty o f th e p aym en t o f a sav in gs bond. A cc o rd in g ly , the
D e p a rtm en t w ill n ot s p e c ify th e p eriod o f tim e th a t an a g e n t’ s record s should b e retain ed and a n y
d e stru ction o f such record s m u st be undertaken b y th e agen t on its ow n resp on sib ility. T h ere is
n o o b je ctio n , o f cou rse, to m icrofilm in g the a pp rop riate eviden ce and th en d e stro y in g th e origin al
docu m en ts.
F E D E R A L R E SE R V E B A N K OF D A L L A S
Fiscal Agent o f the United States

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