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FEDERAL RESERVE BANK OF DALLAS FISCA L. A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, June 26, 1948 DETAILS CONCERNING SPECIAL OFFERING OF UNITED STATES SAVINGS BONDS OF SERIES F AND G TO INSTITUTIONAL INVESTORS To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is quoted below a press statement which will be issued by the Treasury Department Monday, June 28, with further reference to the purchase o f United States Savings Bonds o f Series F and G by institutional investors: “ Secretary of the Treasury Snyder today made public the text o f amendments to Department Circular No. 580, the Regulations Governing Savings Bonds, and Department Circular No. 654, the circular offering Series F and G Savings Bonds for sale, which have been issued to cover the special offering of Series F and G bonds open to certain classes o f institutional investors and cer tain commercial and industrial banks during the period from July 1 through July 15, 1948. Details with respect to the offering and the various categories of investors eligible to purchase Series F and G Savings Bonds under the special offering were contained in the Secretary’s statement o f June 10, 1948. A ny applications from eligible subscribers received, by a Federal Reserve Bank or Branch, or the Treasury Department, through July 15, 1948, in cluding any mail applications postmarked up to midnight o f July 15, will be accepted and processed under this special offering.” The details mentioned in this bank’s circular letter o f June 10, 1948, are contained in the amendments, copies o f which are enclosed. 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) REGULATIONS GOVERNING SAVINGS BONDS 1348 Fourth Amendment to Department Circular No. 530 Sixth Revision, dated February 13, 1945 T reasury D epartment O ffice of the Secretary Washington, June 25, 1948 Fiscal Service Bureau of the Public Debt To Owners o f United States Savings Bonds and Others Concerned: Pursuant to Section 22 (a) o f the Second Liberty Bond Act, as amended (55. Stat. 7, 31 U.S.C. and Supp. 757c), Subpart C of Department Circular No. 530, Sixth Revision, dated February 13, 1945 (31 CFR 1945 Supp., 315), as amended, is hereby further amended1 and revised to read as follow s: Subpart C— LIM ITATION ON HOLDINGS Sec. 315.8. Amount ivhich may be held.— As provided by Section 22 o f the Second Liberty Bond Act, as added February 4, 1935 (U.S.C. 1946 Ed., title 31, section 757c), and by regu lations prescribed by the Secretary o f the Treasury pursuant to the authority o f that section, as amended by the Public Debt A ct o f 1941, 55 Stat. 7, the amounts o f savings bonds o f the several series issued during any one calendar year that may be held by any one person at any one time are limited as follow s: (a) Series A, B, C, and D.— $10,000 (maturity value) o f each series fo r each calendar year. (b ) Series E.— $5,000 (maturity value) fo r each calendar year up to and including the calendar year 1947, and $10,000 (maturity value) fo r each calendar year thereafter. (c) Series F and G.— $50,000 (issue price) fo r the calendar year 1941, and $100,000 (issue price) fo r each calendar year thereafter, o f either series or o f the combined aggregate o f both, except that, in the case o f commercial banks authorized to acquire such bonds in accordance with Section 315.5, the limitation shall be such as may have been or may hereafter be provided specifically in official circulars governing the offering o f other Treasury securities, but in no event in excess o f $100,000 (issue price) fo r any calendar year. (d) Special Limitation for Series F and G Bonds Purchased by Institutional Investors and Commercial Banks from July 1 through July 15, 1948.— $1,000,000 (issue price) o f either series or of the combined aggregate o f both fo r institutional investors holding savings, insur ance and pension funds and $100,000 (issue price) o f either series or o f the combined aggre gate o f both fo r commercial and industrial banks holding savings deposits or issuing time certificates o f deposit in the names o f individuals and o f corporations, associations, and other organizations not operated fo r profit, subject to the following conditions: (1) For the purposes o f this subsection the classes o f institutional investors will be limited to : (i) insurance companies, (ii) savings banks, (iii) savings and loan associa tions and building and loan associations, and cooperative banks, (iv) pension and retire ment funds, including those o f the Federal, State and local governments, (v) fraternal benefit associations, (vi) endowment funds, and (vii) credit unions. (2) Any bonds o f Series F-1948 and Series G-1948 purchased under this special limitation, including any bonds in excess o f $100,000 (issue price) purchased by eligible institutional investors, must be purchased during the period from July 1 through Julv 15, 1948. ‘ The regulations set forth in this circular are hereby modified to accord with the provisions of subsection (d) o f this section. 1The second and third amendments are hereby withdrawn from circulation. They were issued, respectively, to provide for the purchase o f savings bonds of Series E outside o f the limitation under certain conditions and to increase the Series E limitation from $5,000 to $10,000. The pertinent provisions are set forth in Sec tions 315.8 (b) and 315.9 (d) (4) of this amendment. Sec. 315.9. Calculation of Amount.— In computing the amount o f savings bonds o f any one series issued during any one calendar year held by any one person at any one time for the purpose o f determining whether the amount is in excess o f the authorized limit as set forth in the next preceding section, the following rules shall govern: (a) The term “ person” shall mean any legal entity, including but not limited to an individual, a partnership, a corporation (public or private), an unincorporated association or a trust estate, and the holdings o f each person, individually and in a fiduciary capacity, shall be computed separately. (b) In the case o f bonds o f Series A, B, C, D, and E, the computation shall be based upon maturity values. In the case o f bonds o f Series F and G the computation shall be based upon issue prices. (c) Except as provided in subsection ( d ) , there must be taken into account: (1) all bonds originally issued to and registered in the name o f that person alone; (2) all bonds originally issued to and registered in the name o f that person as coowner or reissued, at the request of the original owner, to add the name o f that person as coowner or to designate him as coowner instead o f as beneficiary under the provisions o f this circular, except that the amount o f bonds o f Series E held in coownership form may be applied to the holdings o f either o f the coowners, but will not be applied to both, or the amount may be apportioned between them; and (3) all bonds acquired by him before March 1, 1941, upon the death o f another or the happening o f any other event. (d) There need not be taken into account: (1) bonds o f which that person is merely the designated beneficiary; (2) those in which his interest is only that o f a beneficiary under a trust; (3) those to which he is entitled as surviving designated beneficiary upon the death of the registered owner, as an heir or legatee o f the deceased registered owner, or by virtue of the termination of a trust or the happening o f any other event, unless he became entitled to any such bonds in his own right before March 1, 1941; or (4) with respect to bonds o f Series E, those purchased with the proceeds o f matured bonds o f Series A and Series C-1938, where the Series A or Series C bonds were presented by an individual (natural person in his own right) owner or coowner fo r that purpose and the Series E bonds are registered in his name in any form o f registration authorized for that series. (e) Nothing herein contained shall be construed to invalidate any holdings within or, except as provided in subsection (c) above, to validate any holdings in excess of, the author ized limits, as computed under the regulations in force at the time such holdings were acquired. Sec. 315.10. Disposition of excess .— I f any person at any time acquires savings bonds issued during any one calendar year in excess of the prescribed amount, the excess must be immediately surrendered fo r refund o f the purchase price, less (in the case o f Series G bonds) any interest which may have been paid thereon, or for such other adjustment as may be possible. JOHN W. SNYDER Secretary o f the Treasury. UNITED STATES SAYINGS BONDS SERIES F AND SERIES G 1948 Third Amendment to Department Circular No. 654 Second Revision, dated January 1, 1944, as amended. TREASU RY D EPARTM EN T Office of the Secretary Washington, June 25, 1948 Fiscal Service Bureau of the Public Debt Section IV and Section V o f Department Circular No. 654, Second Revision, dated January 1, 1944, as amended, are hereby further amended to read as follow s: IV. LIMITATION ON HOLDINGS 1. The amount of United States Savings Bonds o f Series F, or o f Series G, or the combined aggregate amount of both series originally issued during any one calendar year to any one person, including those registered in the name o f that person alone, and those registered in the name of that person with another named as coowner, that may be held by that person at any one time shall not exceed $100,000 (issue p ric e ), except as provided in paragraph 2. Commercial banks (which are defined for this purpose as those accepting demand deposits) are not authorized to acquire savings bonds of Series F or Series G, except as provided in paragraph 2, or (in accordance with the provisions o f V, 1 (2) hereof) in official circulars governing the offering o f other Treasury securities.1 2. For the period from July 1, 1948, through July 15, 1948, there is hereby provided fo r cer tain classes o f institutional investors, and fo r certain commercial and industrial banks, a special limitation on holdings as follow s: (1) The limitation will be $1,000,000 (issue price) o f United States Savings Bonds o f Series F or Series G or the combined aggregate o f both fo r institutional investors holding savings, insur ance and pension funds, and $100,000 (issue price) o f either series or o f the combined aggregate o f both fo r commercial and industrial banks holding savings deposits or issuing time certificates o f deposit in the name o f individuals and o f corporations, associations and other organizations not operated fo r profit. (2) For the purposes o f this special limitation the classes o f institutional investors will be limited to : (i) insurance companies, (ii) savings banks, (iii) savings and loan associations and building and loan associations, and cooperative banks, (iv) pension and retirement funds, including those o f the Federal, State and local governments, (v) fraternal benefit associations, (vi) endow ment funds, and (vii) credit unions. (3) Any bonds o f Series F-1948 and Series G-1948 purchased under this special limitation, including any bonds in excess o f $100,000 (issue price) purchased by eligible institutional investors, must be purchased during the period from July 1 through July 15, 1948. 3. Any bonds acquired on original issue which create an excess must immediately be sur rendered fo r refund o f the issue price, as provided in the regulations governing savings bonds. V. AUTHORIZED FORMS OF REGISTRATION 1. United States Savings Bonds of Series F and Series G may be registered only in one of the following fo r m s : (1) In the names o f natural persons (that is, individuals), whether adults or minors, in their own right, as follow s: (a) In the name o f one person; (b) in the names o f two (but not more than tw o) persons as coowners; and (c) in the name o f one person payable on death to one (but not more than one) other designated person. 'Circulars heretofore issued making provisions for subscription to Series F and Series G bonds by commercial banks are numbered as follows: 729 and 740, offering 2 % % Treasury Bonds o f 1965-70; 730, offering 214% Treas ury Bonds of 1956-59; 741 and 756, offering 2% Treasury Bonds of 1952-54; 755, offering 2 % % Treasury Bonds of 1966-71; 770, offering 1 % % Treasury Bonds of 1950; 776, offering 2% % Treasury Bonds o f 1967-72; and 777, of fering 214% Treasury Bonds of 1959-62. (2) In the name o f an incorporated or unincorporated body in its own right; but may not be registered in the names o f commercial banks, which are defined for this purpose as those accepting demand deposits, except as provided in IV,2 o f this Circular or to such extent and under such conditions as may have been or may hereafter be provided specifically in official circulars governing the offering o f other Treasury securities. (3) In the name o f a fiduciary (except where the fiduciary would hold the bonds merely or principally as security for the performance o f a duty or obligation). (4) In the name o f the owner or custodian o f public funds. 2. Restrictions .— Only residents (whether individuals or others) o f the United States (which fo r the purposes o f this section shall include the 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 of savings bonds originally issued on or after April 1, 1940, or of authorized reissues thereof, except that such persons may name as coowners or beneficiaries o f their bonds American citizens permanently residing abroad or nonresident aliens who are not citizens o f enemy nations. American citizens permanently residing abroad and nonresident aliens who become entitled to bonds under these regulations, by right o f survivorship or otherwise upon the death o f another, will have the right only to receive payment either at or before maturity. 3. Full information regarding authorized form s o f registration will be found in the regula tions currently in force governing United States Savings Bonds. JOHN W. SNYDER, Secretary o f the Treasury.
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