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FEDERAL. RESERVE BANK OF DALLAS F IS C A L . A G E N T O F T H E U N I T E D S T A T E S Dallas, Texas, December 31, 1964 ADVANCE REFUNDING OFFER To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: The following material relating to an advance refunding by the Treasury Department is enclosed: ( 1 ) a summary sheet setting forth pertinent data, ( 2 ) Treasury Department Circulars, Public Debt Series Nos. 13-64, 14-64 and 15-64, and ( 3 ) official subscription forms. Securities Eligible for Exchange and Their Maturity Dates 2% % 3 V2% 4% 3y8% 37/8% 3 3 /4 % 33/4% 3 s/ 8% bonds notes notes notes notes bonds notes bonds 2 /1 5 /6 5 1 1 /1 5 /6 5 1 1 /1 5 /6 5 2 /1 5 /6 6 2 /1 5 /6 6 5 /1 5 /6 6 8 /1 5 /6 7 1 1 /1 5 /6 7 Securities Offered in Exchange and Their Maturity Dates «« 4 % bonds 2 /1 5 /7 0 4 Vs% bonds 2 /1 5 /7 4 / % bonds 8 /1 5 /8 7 -9 2 (reopened issue) 4 1 4 All subscribers requesting registered securities will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service, i.e., an individual’s social security number or an employer identification number. Securities being exchanged should be submitted promptly, preferably with the subscriptions. Holders of the Treasury bonds which will mature on February 15, who plan to redeem the bonds at maturity should not submit them for redemption before February 1. The subscription books will be open for all classes of subscribers on January 4 through January 8, 1965. Subcriptions placed in the mail before midnight, Friday, January 8, will be considered timely. Sub scriptions will be received at this bank and its branches at El Paso, Houston and San Antonio, and should be submitted on the enclosed forms. Additional circulars and forms will be furnished upon request. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ADVANCE REFUNDING U.S.TREASURY DEPARTMENT During the period of January 4 thru 8, 1965* OFFERS TO ISSUE With dates of Securities Issu e 4% Treasury Bonds 4-1/8% Treasury Bonds 4-1/4% Treosury Bonds Jan. 15, 1965 Jan. 15, 1965 Aug. 15, 1962 Maturity Feb. 15, 1970 Feb. 15, 1974 Aug. 15, 1987-92 IN EXCHANGE FOR Outstanding Treasury securities as set forth in the following table. EXCHANGES TO BE MADE ON THE BASIS OF Par for par in multiples of $500 for the new bonds with amounts payable to or payable by (indicated by parentheses) subscribers per $100 face amount as follows : A M O U N T S TO B E ON ACC OUN T AND M A T U R IT Y DATES PRICEO F S E C U R IT IE S TO BE ISSU ED P A ID TO O R BY S U B S C R IB E R ON AC C O U N T O F A C C R U E D I N T E R E S T TO JAN. I S . 1 9 6 5 PAYABLE TO S U B S C R I B E R ON S E C U R I T I E S TO BE EXCHANGED PAYABLE BY S U B S C R IB E R ON S E C U R I T I E S TO B E ISSU ED N E T AM O U N T TO B E P A I D TO S U B S C R I B E R OR BY S U B S C R IB E R F O R 4 % B O N D S O F 1970 2-5/8% 3-1/2% 4% 3-5/8% 3-7/8% 3-3/4% 3-3/4% 3-5/8% Bonds 1965 2/15/65-1/ Note*. B-1965 11/15/651/ Notes, E-1965 11/15/651/ Notes, B-1966 2/15/66y Notes, C-1966 2/15/661/ Bonds 1966 5/15/661/ Notes, A-1967 8/15/671/ Bonds 1967 11/15/671/ $0.60 0.45 0.90 0.40 0.70 0.50 0.05 (0.30) $1.091372 0.589779 0.674033 1.507133 1.611073 0.631906 1.559103 0.610843 $0.65 0.50 0.95 0.45 0.75 0.55 0.10 (0.25) $1.091372 0.589779 0.674033 1.507133 1.611073 0.631906 1.559103 0.610843 Bonds 1965 2/15/65-!/ ($0.25) (0.40) Notes, B-1965 11/15/651/ 0.05 Notes, E-l 965 11/15/651/ (0.45) Notes, B-1966 2/15/661/ (0.15) Notes, C-1966 2/15/661/ (0.35) Bonds 1966 5/15/661/ Notes, A-1967 8/15/671/ (0.80) (1.15) Bonds 1967 11/15/671/ $1.091372 0.589779 0.674033 1.507133 1.611073 0.631906 1.559103 0.610843 — — — — — — $1.691372 1.039779 1.574033 1.907133 2.311073 1.131906 1.609103 0.310843 F O R 4-1/8% B O N D S O F 1974 2-5/8% 3-1/2% 4% 3-5/8% 3-7/8% 3-3/4% 3-3/4% 3-5/8% Bonds 1965 2/15/651/ Notes, B-1965 11/15/651/ Notes, E-1965 11/15/651/ Notes, B-1966 2/15/661/ Notes, C-1966 2/15/661/ Bonds 1966 5/15/661/ Notes, A-1967 8/15/671/ Bonds 1967 11/15/671/ — — — — — — — $1.741372 1.089779 1.624033 1.957133 2.361073 1.181906 1.659103 0.360843 F O R 4-1/4% B O N D S O F 1987-92 2-5/8% 3-1/2% 4% 3-5/8% 3-7/8% 3-3/4% 3-3/4% 3-5/8% $1.766984 1.766984 1.766984 1.766984 1.766984 1.766984 1.766984 1.766984 ($0.925612) (1.577205) (1.042951) (0.709851) (0.305911) (1.485078) (1.007881) (2.306141) FEDERAL INCOME TAX STATUS OF EXCHANGES A / F u l l y t a x a b le u n d e r In t e r n a l R e v e n u e C o d e . I f N o n t a x a b i e u n d e r I n t e r n a l R e v e n u e C o d e ( S e c . 1 0 3 7 ( a ) ) e x c e p t fo r g a i n to e x t e n t m o n e y ( o t h e r t h a n I n t e r e s t ) l a r e c e i v e d ( S e c . 1 0 3 1 ( b ) ), r e a liz e d on e x c h a n g e e ALL SUBSCRIPTIONS WILL BE ALLOTTED IN FULL. THE NEW BONDS WILL BE SUBJECT TO PAYMENT AND DELIVERY ON JANUARY 19,1965. FULL INFORMATION CONCERNING TERMS OF THE EXCHANGE OFFERINGS AND TERMS OF NEW SECURITIES MAY BE OBTAINED FROM MOST COMMERCIAL BANKS, FEDERAL RESERVE BANKS AND BRANCHES, OR THE TREASURER OF THE UNITED STATES, WASHINGTON, D. C. 20220. S u b s c r i p t i o n s p l a c e d I n t h e m a i l b y m i d n i g h t F r i d a y , J a n u a r y 8 , 1 9 6 5 , a d d r e s s e d to a n y F e d e r a l R e s e r v e B a n k o r B r a n c h , o r to t h e T r e a s u r e r o t th e u n i t e d S t a t e s , W a s h i n g t o n , D . C . 2 0 2 2 0 , w ill be a cc e p te d . T h e u s e o f r e g i s t e r e d m a ll In s e n d i n g s e c u r it i e s I s r e c o m m e n d e d to r t h e p r o t e c t i o n o f s e c u r i t y h o l d e r s . UNITED STATES OF AMERICA 4 PERCENT TREASURY BONDS OF 1970 Dated and bearing interest from January 15, 1965 Interest payable February 15 and August 15 DEPARTMENT CIRCULAR Due February 15, 1970 TREASURY DEPARTM ENT Office of the Secretary Washington, December 31, 1964 Public D ebt Series — No. 13-64 I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 4 percent Treasury Bonds of 1970: ( 1 ) at 99.40 percent of their face value in exchange for 2 s/a percent Treasury Bonds of 1965, dated June 15, 1958, due February 15, 1965; ( 2 ) at 99.55 percent of their face value in exchange for 3 Vz percent Treasury Notes of Series B-1965, dated November 15, 1962, due November 15, 1965; ( 3 ) at 99.10 percent of their face value in exchange for 4 percent Treasury Notes of Series E-1965, dated November 15, 1962, due November 15, 1965; ( 4 ) at 99.60 percent of their face value in exchange for 3 % percent Treasury Notes of Series B-1966, dated M ay 15, 1962, due February 15, 1966; ( 5 ) at 99.30 percent of their face value in exchange for 3 % percent Treasury Notes of Series C-1966, dated August 15, 1964, due February 15, 1966; ( 6 ) at 99.50 percent of their face value in exchange for 3 % percent Treasury Bonds of 1966, dated November 15, 1960, due M ay 15, 1966; ( 7 ) at 99.95 percent of their face value in exchange for 3 3A percent Treasury Notes of Series A-1967, dated September 15, 1962, due August 15, 1967; or ( 8 ) at 100.30 percent of their face value in exchange for 3 s/s percent Treasury Bonds of 1967, dated M arch 15, 1961, due November 15, 1967. Interest adjustments as of January 15, 1965, and the cash payments on account of the issue prices of the new bonds will be made as set forth in Section IV hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. Delivery of the new bonds will be made on January 19, 1965. The books will be open only on January 4 through January 8, 1965, for the receipt of subscriptions for this issue. 2. In addition to the offering under this circular, holders of securities of the issues enumerated in paragraph 1 of this section are offered the privilege of exchanging all or any part of such securities for 4 Vs percent Treasury Bonds 1974, or 4Vt percent Treasury Bonds of 1987-92, which offerings are set forth in Department Circulars, Public Debt Series— Nos. 14-64 and 15-64, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes1. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the 3 Vz percent Treasury Notes of Series B-1965, 4 per cent Treasury Notes of Series E-1965, 3 s/s percent Treasury Notes of Series B-1966, 3 % percent Treasury Notes of Series C-1966, 3 % percent Treasury Bonds of 1966, 3 % percent Treasury Notes of Series A-1967, or 3 % percent Treasury Bonds of 1967, solely for the 4 percent Treasury Bonds of 1970. Section 1 0 31(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that money is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. II. DESCRIPTION OF BONDS 1. The bonds will be dated January 15, 1965, and will bear interest from that date at the rate of 4 percent per annum, payable on a semiannual basis on August 15, 1965, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1970, and will not be subject to call for redemption prior to maturity. 1 Gain or loss, if any, upon the exchange of the securities of the first issue listed in paragraph 1 of this section, must be fully rec ognized under the Code. 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The bonds will be acceptable to secure deposits of public moneys. They will not be acceptable in pay ment of taxes. 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provisions will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. 5. The bonds will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States bonds. III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington, D. C. 20220. Banking institutions generally may submit subscrip tions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. All subscribers requesting registered bonds will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before January 19, 1965, or on later allotment, and may be made only in a like face amount of securities of the eight issues enumerated in paragraph 1 of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identifying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. Cash payments due to subscribers will be made in the case of bearer securi ties following their acceptance and in the case of registered securities following discharge of registration. In the case of registered securities, the payment will be made by check drawn in accordance with the assignments on the securities surrendered or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District.2 6 5 4 3 2. 2 % percent bonds of 1965. — Coupons dated February 15, 1965, must be attached to the bonds in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($10.91372 per $1,000) plus the payment ($6.00 per $1,000) due on account of the issue price of the new bonds will be paid to subscribers. 3. 3 Vi percent notes of Series B-1965. — Coupons dated M ay 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 (5.89779 per $1,000) plus the payment ($4.50 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 4. 4 percent notes of Series E-1965. — Coupons dated M ay 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.74033 per $1,000) plus the payment ($9.00 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 5. 3 % percent notes of Series B-1966. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.07133 per $1,000) plus the payment ($4.00 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 6. 3 % percent notes of Series C-1966. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($16.11073 per $1,000) plus the payment ($7.00 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 7. 3 % percent bonds of 1966. — Coupons dated M ay 15, 1965, and all subsequent coupons must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.31906 per $1,000) plus the payment ($5.00 per $1,000) due on account of the issue price of the new bonds will be paid to subscribers. 8. 3 % percent notes of Series A - 1967. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.59103 per $1,000) plus the payment ($.50 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 9. 3 % percent bonds of 1967. — Coupons dated M ay 15, 1965, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.10843 per $1,000) will be credited, the payment ($3.00 per $1,000) due the United States on account of the issue price of the new bonds will be charged and the difference will be paid to subscribers. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Eligible Treasury securities in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, D. C. 20220. The securities must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the securities sur rendered, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1970”; if the new bonds are desired registered in another name, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1970 in the name of---------------------------if new bonds in coupon form are desired, the assignment should be to “The Secretary of the Treasury for exchange for 4 percent Treasury Bonds of 1970 in coupon form to be delivered to-------------------------------------------- ”. VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. G. d’A N D ELO T BELIN, Acting Secretary of the Treasury. UNITED STATES OF AMERICA 4 Vs PERCENT TREASURY BONDS OF 1974 Dated and bearing interest from January 15, 1965 Due February 15, 1974 Interest payable February 15 and August 15 TREASURY DEPARTM ENT Office of the Secretary Washington, December 31, 1964 DEPARTMENT CIRCULAR -----------------Public D ebt Series — No. 14-64 I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 4)4 percent Treasury Bonds of 1974 : (1) at 99.35 percent of their face value in exchange for 2)4 percent Treasury Bonds of 1965, dated June 15, 1958, due February 15, 1965; (2 ) at 99.50 percent of their face value in exchange for 3)4 percent Treasury Notes of Series B-1965, dated November 15, 1962, due November 15, 1965; (3 ) at 99.05 percent of their face value in exchange for 4 percent Treasury Notes of Series E-1965, dated M ay 15, 1964, due November 15, 1965; (4 ) at 99.55 percent of their face value in exchange for 3)4 percent Treasury Notes of Series B-1966, dated M ay 15, 1962, due February 15, 1966; (5 ) at 99.25 percent of their face value in exchange for 3)4 percent Treasury Notes of Series C-1966, dated August 15, 1964, due February 15, 1966; (6 ) at 99.45 percent of their face value in exchange for 3)4 percent Treasury Bonds of 1966, dated November 15, 1960, due M ay 15, 1966; (7 ) at 99.90 percent of their face value in exchange for 3)4 percent Treasury Notes of Series A-1967, dated September 15, 1962, due August 15, 1967; or ( 8 ) at 100.25 percent of their face value in exchange for 3 )4 percent Treasury Bonds of 1967, dated March 15, 1961, due November 15, 1967. Interest adjustments as of January 15, 1965, and the cash payments on account of the issue prices of the new bonds will be made as set forth in Section IV hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. Delivery of the new bonds will be made on January 19, 1965- The books will be open only on January 4 through January 8, 1965, for the receipt of subscriptions for this issue. 2. In addition to the offering under this circular, holders of securities of the issues enumerated in paragraph 1 of this section are offered the privilege of exchanging all or any part of such securities for 4 percent Treasury Bonds of 1970 or 4% percent Treasury Bonds of 1987-92, which offerings are set forth in Department Circulars, Public Debt Series— Nos. 13-64 and 15-64, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes1. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved Septem ber 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the 3)4 percent Treasury Notes of Series B-1965, 4 percent Treasury Notes of Series E-1965, 3% percent Treasury Notes of Series B-1966, 37/8 percent Treasury Notes of Series C-1966, 3)4 percent Treasury Bonds of 1966, 3% percent Treasury Notes of Series A-1967, or 3)4 percent Treasury Bonds of 1967, solely for the 4)4 percent Treasury Bonds of 1974. Section 1031(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that m oney is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. 1 Gain or loss, if any, upon the exchange of the securities of the first issue listed in paragraph 1 of this section, must be fully rec ognized under the Code. II. DESCRIPTION OF BONDS 1. The bonds will be dated January 15, 1965, and will bear interest from that date at the rate of 4y% percent per annum, payable on a semiannual basis on August 15, 1965, and thereafter on February 15 and August 15, in each year until the principal amount becomes payable. They will mature February 15, 1974, and will not be subject to call for redemption prior to maturity. 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The bonds will be acceptable to secure deposits of public moneys. 4. Bearer bonds with interest coupons attached, and bonds registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Treasury. 5. A ny bonds issued hereunder which are owned by a decedent at the time of his death and thereupon constitute a part of his estate will be redeemed at par and accrued interest prior to maturity, provided the Secretary of the Treasury is authorized by the representative of the estate to apply the entire proceeds of redemption to payment of the decedent’s Federal estate taxes. 6. The bonds will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing United States bonds. III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, W ashington, D. C. 20220. Banking institutions generally may submit sub scriptions for account of customers, but only the Federal Reserve Banks and the Treasury Department are authorized to act as official agencies. 2. A ll subscribers requesting registered bonds will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment. IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before January 19, 1965, or on later allotment, and may be made only in a like face amount of securities of the eight issues enumerated in paragraph 1 of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identi fying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. Cash payments due to subscribers will be made in the case of bearer securities following their acceptance and in the case of registered securities follow ing discharge of registration. In the case of registered securities, the payment will be made by check drawn in accordance with the assignments on the securities surrendered or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. 2. 2 % percent bonds of 1965. — Coupons dated February 15, 1965, must be attached to the bonds in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($10.91372 per $1,000) plus the payment ($6.50 per $1,000) due on account of the issue price of the new bonds will be paid to subscribers. 3. 3 Vi percent notes of Series B-1965. — Coupons dated May 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($5.89779 per $1,000) plus the payment ($5.00 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 4. 4 percent notes of Series E-1965. — Coupons dated M ay 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.74033 per $1,000) plus the payment ($9.50 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 5. 3 % percent notes of Series B-1966* — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.07133 per $1,000) plus the payment ($4.50 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 6. 3 % percent notes of Series C-1966. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($16.11073 per $1,000) plus the payment ($7.50 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 7. 3 % percent bonds of 1966. — Coupons dated M ay 15, 1965, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964 to January 15, 1965 ($6.31906 per $1,000) plus the payment ($5.50 per $1,000) due on account of the issue price of the new bonds will be paid to subscribers. 8. 3 % percent notes of Series A-1967. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.59103 per $1,000) plus the payment ($1.00 per $1,000) due on account of the issue price of the bonds will be paid to subscribers. 9. 3 % percent bonds of 1967. — Coupons dated M ay 15, 1965, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964, to Janu ary 15, 1965 ($6.10843 per $1,000) will be credited, the payment ($2.50 per $1,000) due the United States on account of the issue price of the new bonds will be charged and the difference will be paid to subscribers. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Eligible Treasury securities in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, W ashington, D. C. 20220. The securities must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the securities surrendered, the assignment should be to “ The Secretary of the Treasury for exchange for 4% percent Treasury Bonds of 1974” ; if the new bonds are desired registered in another name, the assignment should be to “ The Secretary of the Treasury for exchange for 4% percent Treasury Bonds of 1974 in the name of_____________________________if new bonds in coupon form are desired, the assignment should be to “ The Secretary of the Treasury for exchange for 4% percent Treasury Bonds of 1974 in coupon form to be delivered to__________________________ ” VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. G. d’A N D E L O T B E L IN , Acting Secretary of the Treasury. UNITED STATES OF AMERICA 4Va PERCENT TREASURY BONDS OF 1987-92 Dated August 15, 1962, with interest from January 15, 1965 Due August 15, 1992 Redeemable at the option of the United States at par and accrued interest on and after August 15, 1987 Interest payable February 15 and August 15 DEPARTMENT CIRCULAR TREASURY DEPARTM ENT Office of the Secretary Washington, December 31, 1964 Public D ebt Series — No. 15-64 I. OFFERING OF BONDS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites subscriptions from the people of the United States for bonds of the United States, designated 4 Vi percent Treasury Bonds of 1987-92: ( 1 ) at 100.25 percent of their face value in exchange for 2 % percent Treasury Bonds of 1965, dated June 15, 1958, due February 15, 1965; ( 2 ) at 100.40 percent of their face value in exchange for 3Vz percent Treasury Notes of Series B-1965, dated November 15, 1962, due November 15, 1965; ( 3 ) at 99.95 percent of their face value in exchange for 4 percent Treasury Notes of Series El-1965, dated M ay 15, 1964, due November 15, 1965; ( 4 ) at 100.45 percent of their face value in exchange for 3 s/s percent Treasury Notes of Series B-1966, dated M ay 15, 1962, due February 15, 1966; ( 5 ) at 100.15 percent of their face value in exchange for 3V& percent Treasury Notes of Series C-1966, dated August 15, 1964, due February 15, 1966; ( 6 ) at 100.35 percent of their face value in exchange for 3 3A percent Treasury Bonds of 1966, dated November 15, 1960, due M ay 15, 1966; ( 7 ) at 100.80 percent of their face value in exchange for 3 Vi percent Treasury Notes of Series A-1967, dated September 15, 1962, due August 15, 1967; or ( 8 ) at 101.15 percent of their face value in exchange for 3 % percent Treasury Bonds of 1967, dated M arch 15, 1961, due November 15, 1967. Interest adjustments as of January 15, 1965, and the cash payments on account of the issue prices of the new bonds will be made as set forth in Section IV hereof. The amount of the offering under this circular will be limited to the amount of eligible securities tendered in exchange and accepted. Delivery of the new bonds will be made on January 19, 1965. The books will be open only on January 4 through January 8, 1965, for the receipt of subscriptions for this issue. 2. In addition to the offering under this circular, holders of securities of the issues enumerated in paragraph 1 of this section are offered the privilege of exchanging all or any part of such securities for 4 percent Treasury Bonds of 1970, or 4 Vs percent Treasury Bonds of 1974, which offerings are set forth in Department Circulars, Public Debt Series— Nos. 13-64 and 14-64, issued simultaneously with this circular. 3. Nonrecognition of gain or loss for Federal income tax purposes1. — Pursuant to the provisions of section 1037(a) of the Internal Revenue Code of 1954 as added by Public Law 86-346 (approved September 22, 1959), the Secretary of the Treasury hereby declares that no gain or loss shall be recognized for Federal income tax purposes upon the exchange with the United States of the 3Vz percent Treasury Notes of Series B-1965, 4 percent Treasury Notes of Series E-1965, 3 % percent Treasury Notes of Series B-1966, 3 % percent Treasury Notes of Series C-1966, 3 3A percent Treasury Bonds of 1966, 3 3A percent Treasury Notes of Series A-1967, or 3 s/s percent Treasury Bonds of 1967, solely for the 4 Vi percent Treasury Bonds of 1987-92. Section 1031(b) of the Code, however, requires recognition of any gain realized on the exchange to the extent that money is received by the security holder in connection with the exchange. T o the extent not recognized at the time of the exchange, gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations. 1 Gain or loss, if any, upon the exchange o f the securities of the first issue listed in paragraph 1 o f this section, must be fully recognized under the Code. II. DESCRIPTION OF BONDS 1. The bonds now offered will be identical in all respects with the 4 % percent Treasury Bonds of 1987-92 issued pursuant to Department Circular Public Debt Series — Nos. 14-62 and 10-64, dated July 30, 1962, and July 9, 1964, respectively, except that interest will accrue from January 15, 1965. With this exception the bonds are described in the following quotation from Department Circular No. 14-62: “ 1. The bonds will be dated August 15, 1962, and will bear interest from that date at the rate of 4 Vi percent per annum, payable semiannually on February 15 and August 15 in each year until the prin cipal amount becomes payable. They will mature August 15, 1992, but may be redeemed at the option of the United States on and after August 15, 1987, in whole or in part, at par and accrued interest, on any interest day or days, on 4 months’ notice of redemption given in such manner as the Secretary of the Treasury shall prescribe. In case of partial redemption the bonds to be redeemed will be deter mined by such method as may be prescribed by the Secretary of the Treasury. From the date of redemption designated in any such notice, interest on the bonds called for redemption shall cease. “2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. “3. The bonds will be acceptable to secure deposits of public moneys. “4. Bearer bonds with interest coupons attached, and bonds, registered as to principal and interest, will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of bonds of different denominations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secre tary of the Treasury. “5. Any bonds issued hereunder which upon the death of the owner constitute part of his estate, will be redeemed at the option of the duly constituted representatives of the deceased owner’s estate, at par and accrued interest to date of payment,1 provided: (a ) that the bonds were actually owned by the decedent at the time of his death; and ( b ) that the Secretary of the Treasury be authorized to apply the entire proceeds of redemption to the payment of Federal estate taxes. Registered bonds submitted for redemption hereunder must be duly assigned to ‘The Secretary of the Treasury for redemption, the proceeds to be paid to the District Director of Internal Revenue at _______________________ for credit on Federal estate taxes due from estate of------------------------------------.’ Owing to the periodic closing of the transfer books and the impossibility of stopping payment of interest to the registered owner during the closed period, registered bonds received after the closing of the books for payment during such closed period will be paid only at par with a deduction of interest from the date of payment to the next interest payment date;1 2 bonds received during the closed period for payment at a date after the books reopen will be paid at par plus accrued interest from the reopening of the books to the date of payment. In either case checks for the full six months’ interest due on the last day of the closed period will be forwarded to the owner in due course. All bonds sub mitted must be accompanied by Form PD 1782,3 properly completed, signed and certified, and by proof of the representatives’ authority in the form of a court certificate or a certified copy of the representatives’ letters of appointment issued by the court. The certificate, or the certification to the letters, must be under the seal of the court, and except in the case of a corporate representative, must contain a statement that the appointment is in full force and be dated within six months prior to the submission of the bonds, unless the certificate or letters show that the appointment was made within one year immediately prior to such submission. Upon payment of the bonds appropriate memorandum receipt will be forwarded to the representatives, which will be followed in due course by formal receipt from the District Director of Internal Revenue. “6. The bonds will be subject to the general regulations of the Treasury Department, now or here after prescribed, governing United States bonds.” III. SUBSCRIPTION AND ALLOTMENT 1. Subscriptions will be received at the Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington, D. C. 20220. Banking institutions generally may submit subscrip1 An exact half-year’s interest is computed for each full half-year period irrespective of the actual number o f days in the half year. For a fractional part of any half year, computation is on the basis of the actual number of days in such half year. 2 The transfer books are closed from January 16 through February IS, and from July 16 through August 15 (both dates inclu sive) in each year. 3 Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from the Treasury Department, Washington, D. C. 20226. tions for account of customers, but only the Federal Reserve Banks and the Treasury Department are author ized to act as official agencies. 2. All subscribers requesting registered bonds will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service, i.e., an individual’s social security number or an employer identification number. 3. The Secretary of the Treasury reserves the right to reject or reduce any subscription, and to allot less than the amount of bonds applied for; and any action he may take in these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon allotment IV. PAYMENT 1. Payment for the face amount of bonds allotted hereunder must be made on or before January 19, 1965, or on later allotment, and may be made only in a like face amount of securities of the eight issues enumerated in paragraph 1 of Section I hereof, which should accompany the subscription. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identifying number, as required by paragraph 2 of Section III hereof, has not been furnished; provided, however, if a subscriber has applied for but is unable to furnish the identifying number by the payment date only because it has not been issued, he may elect to receive, pending the furnishing of the identifying number, interim receipts and in this case payment will be deemed to have been completed. Cash payments due from subscribers should accompany the subscription. 2. 2% percent bonds of 1965. — Coupons dated February 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($10.91372 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($2.50 per $1,000) due the United States on account of the issue price of the new bonds will be charged, and the difference ($9.25612 per $1,000) must be paid by subscribers. 3. 3 ’A percent notes of Series B-1965. — Coupons dated M ay 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($5.89779 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($4.00 per $1,000) due the United States on account of the issue price of the bonds will be charged, and the difference ($15.77205 per $1,000) must be paid by subscribers. 4. 4 percent notes of Series E-1965. — Coupons dated M ay 15 and November 15, 1965, must be attached to the notes in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.74033 per $1,000) plus the payment ($.50 per $1,000) due to the subscriber on account of the issue price of the bonds will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued will be charged, and the difference ($10.42951 per $1,000) must be paid by subscribers. 5. 3% percent notes of Series B-1966. — Coupons dated February 15, 1965, and all subsequent coupons must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.07133 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued, plus the payment ($4.50 per $1,000) due the United States on account of the issue price of the bonds will be charged, and the difference ($7.09851 per $1,000) must be paid by subscribers.6 8 7 6. 3% percent notes of Series C-1966. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($16.11073 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($1.50 per $1,000) due the United States on account of the issue price of the bonds will be charged, and the difference ($3.05911 per $1,000) must be paid by subscribers. 7. 3 % percent bonds of 1966. — Coupons dated M ay 15, 1965, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.31906 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($3.50 per $1,000) due the United States on account of the issue price of the new bonds will be charged, and the difference ($14.85078 per $1,000) must be paid by subscribers. 8. 3% percent notes of Series A-1967. — Coupons dated February 15, 1965, and all subsequent coupons, must be attached to the notes in bearer form when surrendered. Accrued interest from August 15, 1964, to January 15, 1965 ($15.59103 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($8.00 per $1,000) due the United States on account of the issue price of the bonds will be charged, and the difference ($10.07881 per $1,000) must be paid by subscribers. 9. 3% percent bonds of 1967. — Coupons dated M ay 15, 1965, and all subsequent coupons, must be attached to the bonds in bearer form when surrendered. Accrued interest from November 15, 1964, to January 15, 1965 ($6.10843 per $1,000) will be credited, accrued interest from August 15, 1964, to January 15, 1965 ($17.66984 per $1,000) on the bonds to be issued plus the payment ($11.50 per $1,000) due the United States on account of the issue price of the new bonds will be charged, and the difference ($23.06141 per $1,000) must be paid by subscribers. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Eligible Treasury securities in registered form tendered in payment for bonds offered hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations of the Treasury Department governing assignments for transfer or exchange, in one of the forms hereafter set forth, and thereafter should be surrendered with the subscription to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, D. C. 20220. The securities must be delivered at the expense and risk of the holder. If the new bonds are desired registered in the same name as the securities sur rendered, the assignment should be to “The Secretary of the Treasury for exchange for 4 Vi percent Treasury Bonds of 1987-92”; if the new bonds are desired registered in another name, the assignment should be to “The Secretary of the Treasury for exchange for 4 Vi percent Treasury Bonds of 1987-92 in the name of_____ _____. _______________ if new bonds in coupon form are desired, the assignment should be to “The Secretary of the Treasury for exchange for 4Vi percent Treasury Bonds of 1987-92 in coupon form to be delivered to__________ VI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive payment for bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive bonds. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. G. d’A N D E LO T BELIN, Acting Secretary of the Treasury.
@FedFRASER