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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, July 16,1953 INSTRUCTIONS TO QUALIFIED ISSUING AGENTS OF UNITED STATES SAVINGS BONDS OF SERIES E To All Qualified Issuing Agents of United States Savings Bonds in the Eleventh Federal Reserve District: The attached Fiscal Agency Operating Circular No. 1 repre sents a revision and consolidation of instructions issued by this bank as fiscal agent of the United States over the past several years to qualified issuing agents of United States Savings Bonds. As it becomes necessary or desirable to revise certain other circulars pertaining to operations performed by this bank in its capacity as fiscal agent, new circulars will be issued in the form of Fiscal Agency Operating Circulars with appropriate numbers assigned. It is suggested that the current circular and those which may be issued later be retained in a convenient place for the use of officers and employees engaged in the handling of transactions covered by such circulars. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS Fiscal A gen t o f the United States Fiscal Agency Operating Circular No. X July 1, 1953 INSTRUCTIONS TO QUALIFIED ISSUING AGENTS OF UNITED STATES SAVINGS BONDS OF SERIES E T o AH Qualified Issuing A gen ts o f United States Savings Bonds in the Eleventh Federal R eserve D istrict: The instructions contained herein are applicable, as indicated, to all qualified issuing agents o f United States Savings Bonds, Series E, including consignment agents, prepayment agents, and designated Finance Officers o f the Armed Forces. AUTHORITY OF ISSUING AGENTS 1. Issuing agents are authorized to sell Savings Bonds o f Series E in accordance with, and in the forms o f registration set forth in Treas ury Department Circular No. 530, as revised and amended. Employers qualified as issuing agents for the sale o f Series E bonds to employees participating in payroll allotment plans are also authorized to sell and issue bonds to persons not participating in the plans. 2. Although only the Federal Reserve Banks and Branches and the Treasury Department are authorized to issue United States Savings Bonds o f Series H , Series J, and Series K , any issuing agent is authorized to receive applications for the purchase o f bonds o f these series and to fo r ward the applications and payment therefor to this bank or appropriate branch in order that the bonds may be issued. Application forms to be used in subscribing for bonds o f these series will be furnished to issuing agents upon request. BOND STOCK 3. Shipments o f Savings Bonds, Series E, will be made to qualified issuing agents at the risk and expense o f the Treasury Department upon the issuing agent’s requisition on Form F A 72 or F A 101 on the fo l lowing basis: ( A ) Issuing^ agents qualified under Application-Agreement (F orm 1785) and designated Finance Officers o f the Armed Forces. In amounts sufficient to meet their reasonable requirements. ( B ) Issuing agents qualified under Application-Pledge Agreement, or Application-Trust Agreement (Form 384 or 384-A ). Within the limitation o f the amount o f the qualification and/or collateral pledged as provided in Treasury Department Cir cular No. 657, as amended. ( C ) Issuing agents qualified on prepayment basis (Form 384-Corp.) In amounts covered by funds deposited as prepayment. 4. Organizations other than member banks should furnish the Federal Reserve Bank or Branch with certified specimen signatures o f persons authorized to requisition and receipt for bond stock. Ordinarily, requisi tions received by the Federal Reserve Bank or Branch will be shipped on the same day. Issuing agents are requested to minimize emergency requisitions by maintaining adequate stock to meet their normal sales demands. 5. stock basis. stock, Requisition Form F A 72 should be used in requisitioning blank by all issuing agents other than those qualified on a prepayment Prepayment issuing agents should forward requisitions fo r bond together with appropriate remittances, on Form F A 101. CARE AND PRO TEC TIO N O F STOCK 6. Issuing agents are accountable for savings bond stock furnished to them and should accord the same care and protection to blank bonds as they do to their own securities or documents. W hether they should insure or take other protective measures is within their discretion. In the event o f loss, theft, or destruction o f unissued Savings Bonds, Series E, a full report o f the circumstances in the case should be forwarded immediately to the Federal Reserve Bank o f Dallas. In the absence o f negligence, and upon a reasonable showing o f the facts, the Treasury Department has stated that it will grant relief covering lost, stolen, or destroyed bonds. Pending notification that relief has been granted, agents’ stock accounts will remain charged with the bonds. 7. A reasonable showing o f the facts, as used in the preceding para graph, will include identification o f the missing bonds by serial number and denomination. I f the bonds cannot be identified by serial number and denomination, the Treasury Department cannot extend credit for the lost stock since no caveat can be placed against the serial numbers o f the bonds for the purpose o f protecting the Government against loss, in the event the bonds are subsequently presented for an authorized pur pose. A n agent will be expected to remit the issue price o f missing bonds to the Treasury in the absence o f appropriate identification. It is import ant, therefore, fo r agents to maintain an accurate record o f bonds by serial number and denomination. 8. A s a matter o f protection, each agent should limit the amount o f bond stock on hand to a reasonable amount necessary to meet normal sales demands. I f an excess o f stock develops in any denomination, the agent may return it to this bank. Also, a requisition may be submitted at any time it becomes necessary to replace bonds sold or spoiled. RE STRICTIO N S AND LIM ITATIO N S ON SALES O F BONDS 9. Only residents o f the United States (including its territories, insular possessions and the Canal Z on e), citizens o f the United States temporarily residing abroad, and nonresident aliens employed in the United States by the Federal government or an agency thereof, may be named as owners, coowners, or designated beneficiaries o f Series E b onds; — 2— provided, however, that a nonresident alien (not a citizen o f an enemy nation) may be named as coowner or designated beneficiary, but will be entitled only to request and receive payment either at or before maturity. 10. The amount o f Series E bonds issued during any one calendar year (January 1 - December 3 1 ), after the calendar year 1951, that may be held by any one person at any one time is limited to $20,000 (maturity value).* Additional holdings are permitted, however, in certain circum stances where bonds are registered in coownership form. In the case of Series E bonds so registered, no excess exists if in a particular group of coowners the holdings are such that the entire amount held can be allo cated among the several coowners without apportioning an aggregate amount in excess o f $20,000 (maturity value) to any one person, including any amount chargeable to that person individually. F or example, if a married man with two children has already purchased in 1953 $20,000 (maturity value) o f Series E bonds registered in his own name, and his wife and children are not named as the registered owners or coowners o f any Series E bonds issued in 1953, he may purchase an additional $60,000 (maturity value) o f such bonds registered as fo llo w s: $20,000 in his name with his w ife as coowner, $20,000 in his name with one child as coowner, and $20,000 in his name with the other child as coowner. In these circumstances, the man as the sole owner o f $20,000 (maturity value), and as coowner o f $60,000 (maturity value) o f bonds would be entitled under the regulations to redeem all or part o f such bonds without obtaining the signature o f any o f the other coowners. F or the purpose o f calculating limitations, it makes no difference which coowner’s name appears first in the inscription. PAYMENT FOR BONDS 11. Bonds should be issued only upon receipt o f payment in full. For the protection o f issuing agents in cases where checks are tendered in pay ment, the Treasury suggests that agents establish a waiting period for clearance o f the checks before delivery o f the bonds. I f a check is retured unpaid subsequent to delivery o f the bond, a description o f the bond and a statement o f the facts should be furnished this bank and the agent will be expected to obtain payment or have the bond returned immediately. I f payment or return o f the bond is not obtained after two requests therefor, the agent’s file o f correspondence, or a photostatic copy thereof, should be forwarded promptly to the Federal Reserve Bank or Branch for further action. Although full cooperation will be given issuing agents, it is not legally possible for the Treasury to waive any rights it may have to demand reimbursement for any loss which may result to the Treasury on account o f bonds issued and delivered by the agent against uncollectible funds. *The limitation on holdings o f Series E bonds was $5,000 (maturity value) for each calendar year up to and including the calendar year 1947; $10,000 (maturity value) for the calendar years 1948 to 1951, inclusive; and $20,000 fo r the calendar year 1952 and each calendar year thereafter. — 3— AUTHORIZED FORMS OF INSCRIPTION 12. Series K bonds may be registered only in the names o f natural persons (i.e., individuals) in their own right, in one o f the following form s: O ne P erson ( A ) In the name o f one person, for example: John A . Jones 751 East Main Street Blankville, Texas T w o P ersons ( A s C oowners) ( B ) In the names o f two (but only tw o) persons, fo r example: John A . Jones 751 East Main Street Blankville, Texas or Mrs. Ella S. Jones (N ot Mrs. John A . Jones) (It makes no difference which coowner’s name appears first in the inscription in calculating holdings) O ne P erson ( W ith O ne B eneficiary ) ( C ) In the name o f one person, payable on death to one (but not more than one) designated person as beneficiary, fo r example: John A . Jones 751 East Main Street Blankville, Texas Payable on death to Mrs. Ella S. Jones (N ot Mrs. John A . Jones) I f it is desired that, upon the death o f the owner, a bond revert to the United States as a donation, it may be registered in the name o f the owner with the Treasurer o f the United States named as beneficiary. M inor or (D ) I ncompetent In the name o f a minor (whether or not under legal guardianship) in any o f the foregoing forms subject to the following conditions: (1) Savings Bonds o f Series E purchased by a custodian legally designated by the Veterans Administration on behalf o f a minor or incompetent with funds received from the Veterans Administration may be registered in either o f the following form s: (a) John Doe, a minor (or an incompetent), under legal custodianship by designation o f the Veterans A d ministration, 751 East Main Street Blankville, Texas (b) John Doe, a minor (o r an incompetent), under legal custodianship o f Sam Doe, by designation o f the Veterans Administration, 751 East Main Street Blankville, Texas (2) In any case in which a guardian o f the estate o f a minor or an incompetent has been appointed by a court o f competent jurisdiction or has otherwise legally qualified, appropriate words, such as “ a minor (o r an incompetent) under legal guardianship,” should be added after the name o f such minor, for example: — 4— Charles E. Brown, a minor (or an incompetent), under legal guardianship o f Henry Smith, 4630 W est Grand Avenue Blankville, Texas Registration in the form “ Henry Smith, legal guardian of Charles E. Brown, a minor (or an incompetent),” is not per mitted. (3) Bonds purchased by a parent, custodian, or guardian with funds already belonging to a minor must be registered in the minor’s name alone without the addition o f a coowner or beneficiary. (4) Bonds purchased as a gift to a minor may be registered in his name as owner, coowner, or beneficiary. (5) Bonds purchased by a minor from his wages, earnings, or other money in his possession may be registered in his name and he may designate a coowner or beneficiary. 13. The full name o f the owner and that o f the coowner or benefi ciary, if any, should be used and should be the name by which the person is ordinarily known and under which he does business; if there are two given names, the initial o f one may be used, or if a person is habitually known and does business by only the initials o f his given names, registra tion may be in such form. In the case o f women, the name should be pre ceded by “ M iss” or “ M rs.” and a married woman’s own given name should be used, not that o f her husband, for example, “ Mrs. Mary A . Jones,” not “ Mrs. Frank B. J o n e s t h e use o f initials only for both given names o f a married woman is not advisable. 14. In registering bonds, issuing agents should try to make sure that the name o f the person to be used in the registration corresponds exactly with the name by which such person has been described as owner, coowner, or beneficiary in the registration o f bonds previously issued. 15. It is permissible for employers issuing bonds to employees to place on the bond a payroll number or other identifying symbol provided such number or symbol is clearly separated from the remainder o f the inscrip tion. 16. Series E bonds may not be registered in the names o f corporations, unincorporated associations, partnerships, fiduciaries, or in any form other than as stated in this section. Bonds should not be registered in the name o f a person under legal disability for reasons other than minority unless a legal representative o f his estate has been appointed. I f a guardian or similar legal representative o f the estate o f such a person has been appointed by a court o f competent jurisdiction, or has otherwise legally qualified, the name o f such person should be followed by appropriate words such as “ an incompetent under legal guardianship” or “ an incom petent under legal guardianship o f Henry Smith.” INSCRIBING BONDS 17. ( A ) Wherever possible, a typewriter, addressing machine or other mechan ical means should be used to inscribe bonds. (B ) The name and post office address (including postal unit number, if any) o f the registered owner should be inscribed in the space provided in the center o f the bond and stubs. I f the bond is to be mailed in a — 5 — window envelope, the name and address o f the registered owner should be placed so that it will appear properly in the window. ( C ) The issue date (month and year only) should be inscribed in the space provided in the upper right-hand portion o f the bond. It is desirable, in the interest o f legible dates throughout the life o f a bond, that the month o f issue, where practical, be spelled out in full. It is particularly desirable to avoid less common abbreviations, such as, “ Mar.” and “ Jun.,” because o f the great possibility that those abbreviations could be mistaken for certain other calendar months. Each bond should be dated as o f the first day o f the month in which full payment o f the issue price is received by the issuing agent. (D ) The name o f the issuing agent and the date on which the bond is inscribed should be imprinted in the space indicated on the bond and stubs, using the stamp furnished or approved by this bank fo r that purpose. 18. Care should be exercised in inscribing bonds. Erasures or altera tions on a bond are not permitted. I f an error is made in the inscription, the bond and both stubs should be marked “ Spoiled,” the issuing agent’ s stamp impressed thereon, and a new bond issued. Spoiled bonds should be returned to us as provided under the heading “ Preparation o f Reports.” DATING 19. Bonds should bear an issue date o f the first day o f the month in which the remittance was initially received by the issuing agent. If, for example, payment is received for a larger number or denomination o f bonds than the agent has on hand on a given date and the necessary unissued bond stock is not received until the following month, the bonds, when inscribed, should be dated the month in which the remittance was received. 20. In the case o f bonds purchased under the payroll deduction plan o f a qualified issuing agent, the month in which salary deductions accu mulate to the full issue price o f the bond to be issued would be the issue date. I f a qualified issuing agent actually receives on or before the last day o f a given month a list o f bonds to be issued accompanied by a check cover ing the issue price, and the bonds for any reason cannot be issued in that particular month, they should be given the dating o f the month that pay ment was received. The issuing agent’s dating stamp should reflect, in the space provided, the date the bonds are actually inscribed. However, a bond should never bear an issue date (month o f issue) subsequent to the date the bond is inscribed. CORRECTION OF ERRORS 21. I f errors are made in issuing bonds through incorrect inscrip tions, unauthorized forms o f registration, wrong denominations, error in issue dates, duplications, improper authentications or otherwise, the following procedure should be observed: (A ) Either at the time o f inscription or subsequently, while both the bond and original (manila) registration stub are in the possession o f the issuing agent, the incorrect bond and stub should be canceled and con sidered as “ Spoiled in Issue.” A new bond may then be issued by the issuing agent with the dating to which the purchaser is entitled. — 6 — (B ) If the original (manila) registration stub is not in the possession o f the issuing agent, the incorrect bond should in all cases be forwarded to this bank, as all such bonds requiring reissue must be reissued by the Federal Reserve Bank or, in some instances, by the Treasury Depart ment. Issuing agents should not, under any circumstances, reissue such bonds when the origvtal (manila) registration stubs are not in their possession, or consider such bonds as " Spoiled in process o f Issue.” Bonds forwarded to this bank for reissue should be accompanied by Form PD 1491 executed by the registered ow ner; or, if the error was made by the issuing agent, a Form F A 14 executed by the issuing agent. If Form F A 14 is not available, a statement containing full information made over an authorized signature should accompany the bonds. Appropriate notations should be made on the records o f the issuing agent. I f refunds due to duplications or other erroneous issues are necessary, a statement by the issuing agent should accompany the bonds surrendered. DELIVERY OF BONDS 22. The Postmaster General has authorized the dispatch o f inscribed savings bonds to owners or their agents, by official issuing agencies, as ordinary first class mail without payment o f postage if enclosed in pre scribed special penalty envelopes with distinctive markings to indicate the character o f the contents. 23. The special penalty envelopes are available in plain or window types, and may be obtained through this bank or appropriate branch upon request. Military issuing agents will obtain penalty envelopes through their regular supply channels. 24. There are set forth below in brief form, the principal require ments o f the Treasury Department in regard to use o f these special penalty envelopes: ( A ) The name and return address o f the authorized issuing agent must be printed or stamped on the envelope in the space above “ Authorized Issuing Agent.” ( B ) Unless delivered in person, inscribed bonds shipped at the risk o f the Treasury should be dispatched to the owners, or their agents, by first class mail, in the special penalty envelopes with distinctive markings, supplied for that purpose. ( C ) The special envelopes must be used only fo r the purpose provided. They may not be used for the mailing o f bonds for redemption, reissue, or other purposes. (Attention is directed to the penalty provided for the improper use o f the franking privilege.) The envelope should not be used for other than original delivery o f bonds even though postage is paid, but there is no objection to enclosing as penalty matter a letter o f transmittal describing the contents or containing information as to the condition o f an employee’s bond account under the payroll allot ment plan. Firm advertising material, even though relating largely to savings bonds campaigns should not be enclosed in penalty envelopes. (D ) Care must be used in enclosing bonds in envelopes and in effecting delivery o f the bonds to the local post office. (They should not be deposited in an ordinary mail box.) ( E ) N o reimbursement will be allowed for postage and registry fees in connection with the delivery o f savings bonds to owners. ( F ) The use o f this special penalty envelope in mailing bonds to authorized purchasers or owners residing in foreign countries is prohibited. — 7 — UNDELIVERABLE BONDS 25. Every issuing agent should make diligent effort and exhaust all available means to make delivery o f bonds. W hen, however, the bonds have been issued by an issuing agent at the request o f another person or organization, the necessary effort to deliver the bonds may be made by such other person or organization. 26. A s used in these instructions, the term “ undeliverable bond” includes any bond issued against payment in full, which remains undeliv ered after a diligent effort has been made and all available means have been exhausted to make delivery, and which—■ ( A ) remains undelivered in the possession o f an authorized issuing agent, or in the possession o f an employer that operates a payroll savings plan but is not an authorized issuing agent, after six full months from the date on which the bond was issued, as shown by the issuing agent’s dating stamp; or ( B ) remains undelivered, regardless o f the date o f issue, in the possession o f an authorized issuing agent, whose qualification is being terminated. 27. Such undeliverable bonds should be submitted to this bank accom panied by appropriate forms for submission to the Treasury Department. Each agent holding undeliverable bonds should report its holdings promptly to this bank at which time forms and instructions will be fur nished in order that the bonds may be shipped. 28. A request from an issuing agent, organization operating a pay roll savings plan, or registered owner for the release and delivery o f a bond which was previously undeliverable should be addressed to the Treasury Department, Division o f Loans and Currency, 536 South Clark Street, Chicago 5, Illinois. The bond will be released by the Treasury and forwarded to the registered owner if satisfactory evidence is sub mitted establishing his right to such bond. Such requests should not be addressed to this bank. UNCLAIMED CASH BALANCES REMAINING IN BOND PURCHASE PAYROLL ALLOTMENT ACCOUNTS 29. The Treasury Department, upon the request o f an employer, is willing to accept cash balances credited to employees’ accounts under pay roll allotment plans, where the balances are insufficient to purchase bonds and where refunds cannot be made because the employee’s whereabouts are unknown, to be held in custody subject to claim by the employee or an authorized representative o f his estate. 30. A full explanation o f the procedure for this arrangement will be furnished upon request. LOSS, THEFT, OR DESTRUCTION OF BOND STOCK OR BONDS 31. In the event o f loss, theft, or destruction o f unissued bond stock or o f inscribed bonds which have not been delivered to the purchasers thereof, immediate notice o f the facts, together with a complete descrip tion o f the bonds, including serial numbers, should be furnished to this bank. — 8— 32. In the event o f the loss, theft, destruction, mutilation, or deface ment o f a bond after delivery to the owner, relief, either by the issue o f a duplicate bond or by payment, may be had under the provisions o f the Government Losses in Shipment A ct, as amended, upon the filing o f a claim and furnishing p roof o f loss satisfactory to the Treasury Depart ment. In any such case, immediate notice o f the facts, together with a complete description o f the bond (including series, month and year o f issue, serial number, and name and address o f the registered owner) should be given by the registered owner to the Office of the Register o f the Treasury, Chicago Branch, 536 South Clark Street, Chicago 5, Illinois. Forms P D 1048 are available for this purpose, and a supply o f these forms may be obtained from this bank or one o f its branches. R E P O R T O F SALES AND REM ITTANCE FO R BONDS SOLD 33. G eneral — Each qualified consignment issuing agent shall open and maintain on its books, fo r the account o f the Federal Reserve Bank o f Dallas as Fiscal Agent o f the United States, a separate deposit account for the proceeds o f all sales o f Savings Bonds, Series E, to be known as "Series E Bond Account.” 34. Each consignment issuing agent should submit to this bank reports o f sales on Form F A 82, accompanied by the original stubs from the bonds reported sold and a remittance o f the sales price. Issuing agents paying in advance fo r bond stock should submit reports on Form F A 102, disregarding this reference to remittance for bonds sold. Spoiled bonds should be submitted on the same forms. 35. Each agent should submit reports at frequent intervals during the month, preferably weekly, except that agents with comparatively small amount o f sales may report monthly or semimonthly. Sales should not be held unreported in any event for more than 30 days. I f no sales are made during a particular month, a sales report for reconcilement purposes should be forwarded indicating such fact and showing the issue price o f the unissued stock on hand. 36. Remittances should be in funds that are immediately available; or, in the case o f qualified depositary banks, by credit to the Treasury T a x and Loan Account. 37. M ilitary I ssuing A gents — Designated Finance Officers o f the Arm ed Forces should render accountings for sales on Form F A 82 at least once each month and always upon their transfer or removal. M ETH O DS O F PAYM ENT 38. T reasury T a x and L oan A ccount — A n y incorporated bank or trust company which is qualified as a special depositary under the pro visions o f Treasury Department Circular No. 92, as revised, and which is also qualified as an issuing agent, may make settlement for the bal ance in its Series E Bond Account by credit in its “ Treasury T a x and Loan Account” up to any amount for which it shall be qualified in excess o f existing deposits. Advice o f credit, Form F A 794, authorizing pay ment through the “ Treasury T a x and Loan Account” should accompany each sales report submitted. — 9— 39. P repayment A gents — Funds deposited with this bank in pre payment for bond stock will be used in settlement for bonds issued upon return o f original registration stubs. I f practicable, an accounting should be made on Form F A 102 once each week; however, agents who issue bonds at monthly or semimonthly payroll periods may account for sales accordingly. 40. O ther F orms of P ayment — Qualified issuing agents, other than banking institutions, which do not pay in advance for bond stock should deposit the proceeds o f sales o f bonds in a separate bank account, segregated from any o f their own funds. These agents should report, and remit the entire proceeds o f sales o f bonds at least monthly, and prefer ably weekly. 41. Banking institutions which do not utilize Treasury T a x and Loan Accounts may make payment by bank drafts, or in the case o f member banks, through their reserve accounts. 42. United States Savings Stamps accepted in payment fo r Series E bonds should be cashed by issuing agents at their local post office and the proceeds remitted at the time report Form F A 82 or requisition Form F A 101 is submitted. W here it is not feasible for issuing agents to obtain payment for stamps at post offices, the stamps may be forwarded to the Federal Reserve Bank or Branch as full or part payment fo r sales, at the risk o f the United States, provided all stamps are canceled thoroughly in a manner which will not make verification difficult, and the agent’s dating stamp is impressed on the back o f each card or album. Shipment o f stamps not conform ing to the foregoing requirements will be at the risk o f the sender. 43. P reparation of R eports — The original (manila) registration stubs from bonds issued should be forwarded with the report o f sales, Form F A 82 (and remittance) or F A 102, to the address shown in the section captioned “ Mailing Address.” A ll original stubs o f bonds issued must be accounted for, and the number o f pieces o f each denomination enclosed must agree with the figures shown on the report. Stubs o f d if ferent months o f issue should be listed on separate reports. E very care should he exercised to prevent the original stubs from being stapled, folded, creased, or mutilated in any way, since they are designed f o r use in mechanical accounting equipment. A lso to facilitate their processing through the mechanical equipment, the original stubs should be detached from the bond assemblies at the perforation in a manner which will not mutilate the stubs or leave fragments o f paper attached to the stubs. Agents should refrain from cutting the stubs from the assemblies to minimize such mutilation. 44. Issuing agents should maintain for a period o f at least one year an adequate record o f all bonds issued, showing fo r each bond the series, denomination, serial number, issue date, validating date, and the form o f registration. This may consist o f duplicate (salm on-colored) registration stubs or other form o f record. A fter a period o f one year, duplicate stubs may be destroyed or salvaged as waste paper provided — 10 — they are mutilated in such manner that lists o f bond owners could not be compiled therefrom. I f other adequate record is maintained, the stubs may be destroyed at any time. 45. Bonds spoiled in process o f issue should be returned with the origi nal registration stubs attached (but not pinned or stapled) to the bonds, scheduled on Form F A 82 or F A 102, in the space provided. Spoiled, bonds and related stubs shoidd not be punched or perforated in any man ner, but the word “ Spoiled," “ V oid" or “ Canceled” should be written or stamped on the face o f each bond and related stub. FORWARDING ORIGINAL STUBS, BONDS, AND REMITTANCES 46. Each sales report Form F A 82 or F A 102, together with the related original registration stubs, United States Savings Stamps and other remittances, spoiled bonds, or unissued stock, should be dispatched in the following m anner: ( A ) Shipments weighing eight ounces or less should be dispatched by first class registered mail, uninsured, declared at the minimum valuation for shipments o f no intrinsic value, ( B ) Shipments weighing more than eight ounces, but not in excess o f appropriate limitations, should be dispatched as insured mail to be treated as registered mail at the fourth class rate o f parcel post, in addition to the insurance fee for domestic insured mail for an amount o f insurance o f $25.01 to $50.00 on each shipping unit. The package must be securely wrapped and sealed by two responsible employees, and must bear the following notation: “This article is put up and mailed by authority o f the Post Office Department upon prepayment o f postage at the fourth-class (par cel post) rate and insurance fee. It must be recorded and handled as a registered article by postal employees. By authority o f Assistant Postmaster General, Bureau o f Finance.” ( C ) Shipments o f this type mailed from first class post offices are subject to a seventy-two-inch size limitation, girth and length combined, and to a weight limitation o f forty pounds if the delivery point (this bank) is in the first or second zone from the point o f shipment. The weight limit is twenty pounds if delivery is in the third to eighth zone. The current one-hundred-inch size limitation and seventy-pound weight limitation will continue to apply to all such shipments mailed from second, third, or fourth class offices o r from any rural or star route. Under Postal regulations the remittance check, or draft, is first class matter, and must be handled accordingly. I f stubs are forwarded at the fourth class rate o f postage, the remittance check should be either separately mailed as first class matter, accompanied by one copy o f the sales report, or enclosed in a separate addressed envelope, securely attached to the package o f stubs, with first class postage affixed thereon. 47. Shipments made in accordance with the foregoing instructions are covered under the Government Losses in Shipment Act, as amended, and related regulations provided that an inventory o f the contents o f each shipment is maintained by the issuing agent. The A ct applies also to properly canceled savings stamps included in shipments as remittances for bond sales. I f cash or instruments payable to bearer are included as remittances, the valuations should be increased to include them. — 11 — MAILING ADDRESS 48. Sales reports o f consignment agents and military issuing agents (F orm F A 82, original registration stubs, remittance, and spoiled or unissued bond stock) should in all cases be addressed to : Federal Reserve Bank o f Dallas Fiscal Agency Department Station K, Dallas, Texas 49. Prepayment issuing agents should address their sales reports (F orm F A 102, original registration stubs, spoiled or unissued stock, and requisitions for replacement stock as well as requisitions and remittances for additional stock) to the office o f this bank to which payment was made covering the issue price o f the bonds. In other words, prepayment agents located in the El Paso, Houston, and San Antonio territories o f the branches o f this bank should forward sales reports to the respective branches, while agents located in the territory served by the head office should submit reports to the Dallas office. REIM BURSEM ENT F O R POSTAGE AND R E G ISTRY FEES 50. A s has been the case heretofore, issuing agents, other than bond issuing officers o f the Armed Services, may, if they desire, be reimbursed for the postal charges incurred in forwarding their sales reports and enclosures conditioned on full compliance with postal instructions as out lined in this circular. Reimbursement may be requested periodically, preferably on a monthly basis, on Form F A 103, directed to this bank. 51. The right is reserved to withdraw, add to, or amend, at any time, any o f the provisions o f this circular. F ederal R eserve B an k of D allas Fiscal A gen t o f the United States. TABLE O F CONTENTS Topic Paragraph Authority of Issuing Agents-------------------------------------------------------------------------- 1,2 Bond Stock________________________________________________________________ 3,4, S Care and Protection of Stock---------------------------------------------------------------------- 6, 7,8 Restrictions and Limitations on Sales of Bonds-------------------------------------------- 9,10 Payment for Bonds.------- --------------------------------------------------------------------------------- 11 Authorized Forms of Inscription------- --- -------------------------------------- 12,13,14, IS, 16 Inscribing Bonds _________________________________________________________ 17,18 Dating -------------------- ----------- ------ -------------------------------------------------------- — .....19,20 Correction of Errors__ ______________________________________________________ 21 D elivery o f B o n d s _____________________________ _______________________ 22, 23,24 Undeliverable B o n d s _________ ___ ___ ____ _____________________ ____ 25, 26,27,28 Unclaimed Cash Balances in Payroll Allotment Accounts_________________ 29,30 Loss, Theft, or Destruction of Bond Stock or Bonds______________________ 31, 32 Report of Sales and Remittance for Bonds Sold________________ 33, 34,35,36, 37 Methods of Payment---------------------------------------------------__38, 39,40, 41,42,43,44,45 Forwarding Original Stubs, Bonds, and Remittances_____________________46,47 Mailing Address _____ 48,49 Reimbursement for Postage and Registry Fees______________________________ 50