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FEDERAL RESERVE BAN K OF DALLAS F IS C A L A G EN T O F T H E U N ITED S T A T E S D A L L A S ,T E X A S 75222 Circular No. 72-120 June 23, 1972 To All Qualified Issuing Agents of Series E Bonds in the Eleventh Federal Reserve District: Enclosed is a copy of Fiscal Agency Operating Cir cular No. 1, "Instructions to Issuing Agents of United States Savings Bonds, Series E", revised June 15, 1972. Operating Circular No. 1 supersedes the circular revised October 25, 1968. Additional copies of Circular No. 1 may be obtained upon request. Yours very truly, P. E. Coldwell President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FISCAL AGENCY OPERATING CIRCULAR NO. 1 Instructions to All Issuing Agents of United States Savings Bonds of Series E in the Eleventh Federal Reserve District FEDERAL RESERVE BANK OF DALLAS FISCAL AGENT OF THE UNITED STATES SCOPE The instructions contained in this circular are applicable, as indicated, to all issuing agents of United States Savings Bonds of Series E which are accountable to this bank for bond stock, including consignment agents, prepayment agents, designated Finance Of ficers of the Armed Forces, and other United States Government Officers or offices. FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 TABLE OF CONTENTS Section 1, GENERAL 1.00 1.05 1.10 1.15 1.20 Right to alter circular References to this bank Authority Series H bond applications References Section 2, ISSUING AGENTS 2.00 2.05 2.10 2.15 2.20 Eligibility Authority Qualification Equal employment opportunity Governmental responsibility Section 3, BLANK BONDS 3.00 3.05 3.10 3.15 3.20 Requisitions Shipments Care and protection of bond stock Procedures for losses Return of excess stock Section 4, SALE OF BONDS 4.00 4.05 4.10 4.15 4.20 4.25 4.30 4.35 General restrictions Minors Others under legal disabilities Investors other than individuals in their own right Commercial banks Forms of registration Limitations on sale of bonds Payment for bonds sold Section 5, INSTRUCTIONS FOR ISSUANCE 5.00 5.05 5.10 5.15 5.20 Inscribing bonds Erasures Dating Payroll deduction plans Procedures for correction of errors in issue Section 6, DELIVERY 6.00 Mailing permissible 6.05 Availability of penalty envelopes 6.10 Use of penalty envelopes 6.15 Undeliverable bonds Section 7, U N C L A I M E D C A S H B A L A N C E S 7.00 7.05 7.10 7.15 Remittance to Treasury Department Accompanying statement Form of remittance Procedure to establish claims Section 8, L O S T B O N D S 8.00 Before delivery to purchaser 8.05 After delivery to purchaser Section 9, A C C O U N T I N G F O R B O N D S 9.00 9.05 9.10 9.15 Separate deposit accounts Reports of sales — consignment basis Reports of sales — prepayment basis Remittance Section 10, F O R M O F P A Y M E N T T O FEDERAL RESERVE B A N K 10.00 Treasury Tax and Loan Account 10.05 Payment by surrender of United States savings stamps 10.10 Other forms of payment 10.15 Prepayment agents Section 11, DISPOSITION O F S T U B S A N D SPOILED B O N D S 11.00 Stubs 11.05 Spoiled bonds 11.10 Unfit bonds Section 12, M I S C E L L A N E O U S 12.00 Maintenance of records by agents 12.05 Forwarding original stubs, bonds and remittances 12.10 Registry fee 12.15 Insurance 12.20 Reimbursement for postal expense 12.25 Mailing address FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 Section 1, GENERAL 1.00 Right to alter circular circulars: Treasury Department Circular No. 530, as revised and amended — “Regulations Gov erning United States Savings Bonds” The right is reserved to withdraw, add to, or amend, at any time, any of the provisions of this circular. Treasury Department Circular No. 653, as revised and amended — “United States Savings Bonds — Series E” 1.05 References to this bank T r e a s u r y Department C ircular No. 657, as amended and supplemented — “Regulations Governing Agencies for the issue of Defense Savings Bonds” Unless otherwise stated, all references to the Federal Reserve Bank of Dallas, or “this bank”, include the Head Office and the Houston, San Antonio, and El Paso Branches. Treasury 4-67, as Agencies Bonds of 1.10 Authority The Secretary of the Treasury has provided that issuing agents qualified for the sale of United States Savings Bonds of Series E, will follow regulations and instructons issued directly by the Secretary of the Treasury or through the Federal Reserve bank of the district as fiscal agent of the United States, covering the sale, issue, inscription and validation of the bonds, and the disposition of registration stubs, and spoiled, and unissued bonds. In addition to the regulations issued by the Secretary of the Trea sury in Department Circular No. 530 (current revision), these instructons are issued by this bank as FISCAL AGENT OF THE UNITED STATES for the guidance of issuing agents in the Eleventh Federal Reserve District. Department Circular PD Series No. revised — “Regulations Governing for the Issue of United States Savings Series E” Section 2, ISSUING AGENTS 2.00 Eligibility All banks; trust companies; and mutual savings banks incorporated by special law or organized under the general laws of the United States, the District of Columbia, or any State; Federal Sav ings and Loan Associations and all other mem bers of the Federal Home Loan Bank System; and all instrumentalities of the United States and other agencies which, by the laws of the United States, may be employed to act as fiscal or fi nancial agents of the United States Government, may be designated for employment as issuing agents for the sale and issuance of United States Savings Bonds of Series E, pursuant to Treasury Department regulations. Any organization, any Treasurer or other appropriate officer or office of any State of the United States or a County or Municipality thereof, which operates a payroll savings plan for the purchase of bonds by their employees, and which would issue a sufficient number of bonds to such employees to warrant designation, may be designated for employment as an issuing agent. 1.15 Series H bond applications Although only the Federal Reserve Banks and Branches and the Treasury Department are au thorized to issue United States Savings Bonds of Series H, any issuing agent may receive ap plications for the purchase of bonds of this series and forward the applications and related pay ment to this bank or appropriate branch in order that the bonds may be issued. Applicants for Series H bonds must furnish taxpayer identify ing numbers (social security account numbers or employer identification numbers) for inscription on the bonds. Application forms for the purchase of Series H bonds will be furnished to issuing agents upon request. 2.05 Authority Issuing agents are authorized to sell savings bonds of Series E in accordance with, and in the forms of registration set forth in section 4.25 of this circular. Employers qualified as issuing agents for the sale of Series E bonds to em ployees participating in payroll allotment plans are also authorized to sell and issue bonds to persons not participating in payroll allotment plans. 1.20 References Regulations relative to the authority ef agents to issue Series E savings bonds, and complete in structions concerning sales and issuance, are contained in the following Treasury Department 1 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS prepayment agents should be accompanied by full payment of the issue price of the bonds, b. Punch card bonds of Series E are available in several types of bond and stub assemblies. These types are described below in order that an agent may determine the type most suitable for its operations. When ordering bond stock, agents should specify on each requisition the type of assembly desired. 2.10 Qualification Eligible institutions intending to qualify as is suing agents on a consignment basis should sub mit Application-Trust Agreement Form PD 3827, completed and executed, to this bank. Upon approval of the application, formal notice of qualification will be forwarded to the applicant. The qualification of an institution will permit any of its offices or branches to act under the qualification if specifically requested. In the event there is to be or has been a change in the name or corporate title of a qualified issuing agent, or a merger, the agent should apply for re qualification in its changed name or corporate title. ASSEMBLY TYPE A Bond, original stub and duplicate stub attached on left edge by 1" binding stub. Interleaved w ith o n e - tim e black ca r b o n paper. Highest denomination is $1,000. Duplicate stub enables agent to maintain a record of bonds issued. C Bond and original stub only, each packaged separately. Highest de nomination is $10,000. Bond and original stub only, at tached on left edge with 1" bind ing stub. Interleaved with one time black carbon paper. Highest denomination is $1,000. Bonds and original stubs printed separately in continuous form. Assemblies are collated with car bon interleaved and packaged in units of 500 bonds and stubs in continuous form. Suitable for use on many electrical accounting ma chines. Highest denomination is 2.15 Equal employment opportunity Any issuing agent qualified on or after Septem ber 5,1967, must in its Application-Trust Agree ment agree to be bound by and comply with the provisions of Section 202 of Executive Order No. 11246, entitled “Equal Employment Oppor tunity” (3 C.F.R. 579, 1967 Revision). Any agent qualified prior to that date and having entered (after November 30, 1966} into a contract of de posit covered by Treasury Department Circular No. 92 (revised) or No. 176 (revised) need take no action since this contract of deposit with the Treasury, or the acceptance of deposits there under, constitutes the necessary agreement. All other agents must signify their intent in writing. Stock requisitions of savings bonds or savings notes on or after December 1, 1967, or the sub mission of savings bonds or savings notes paid on or after December 1,1967, for reimbursement, shall constitute such written notice of intent. DESCRIPTION D -l F $ 100 . 2.20 Governmental responsibility G Neither the Treasury Department nor the Federal Reserve Bank of Dallas assumes any responsi bility to any person for payroll deductions made by the issuing agent, or the application by the issuing agent of such deductions to the purchase of bonds. Section 3, BLANK BONDS Continuous form assem bly of double card width. Bond on the right side, original stub on the left. Packaged in units of 1,000 items in continuous form. Suit able for use on many electrical ac counting m achines. Highest de nomination is $200. 3.05 Shipments 3.00 Requisitions Shipments of bond stock to agents will be made at the risk and expense of the Treasury Depart ment. Ordinarily, shipments will be made to is suing agents on the business day following re ceipt of the requisition. a. Issuing agents operating on a consignment or prepayment basis may obtain unissued Series E bonds from this bank by submitting a requisition for bond stock on Form FA-72. Requisitions from 2 FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 3.10 Care and protection of bond stock original issue, but not on authorized reissue, to include only persons (whether natural persons or others) who are: (a) Residents of the United States, its terri tories and possessions, the Commonwealth of Puerto Rico, and the Canal Zone; 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 t h e ir o w n s e c u r i t i e s or d o c u m e n ts . Whether they should insure or take other pro tective measures is within their discretion. (b) Citizens of the United States temporarily residing abroad; and (c) Civilian employees of the United States or members of its Armed Forces, regardless of their residence or citizenship. 3.15 Procedures for losses In the event of loss, theft, or destruction of un issued savings bonds of Series E, a full report of the circumstances in the case should be for warded immediately to the Federal Reserve Bank of Dallas. In the absence of negligence, and upon a reasonable showing of the facts concerning lost, stolen, or destroyed bonds, the Treasury Department will grant relief; however, pending notification that relief has been granted, the agent’s stock account will remain charged with the bonds. A reasonable showing of the facts must include identification of the missing bonds by serial number and denomination. If this infor mation is not furnished, the Treasury Depart ment cannot extend credit for the lost stock since no caveat can be placed against the serial numbers of the bonds, thereby protecting the Treasury against loss in the event the bonds are subsequently presented for reissue, exchange or redemption. An agent will be expected to remit the issue price of missing bonds to the Treasury in the absence of appropriate identification. It is important, therefore, that agents maintain an accurate record of bonds by serial number and denomination. Natural persons not included above may be named as coowners or beneficiaries by natural persons of any of the above classes. Registration of savings bonds, whether on orig inal issue or reissue, is not authorized in any form to include the name of any alien who is a resident of any area with respect to which the Treasury Department restricts or regulates the delivery of checks drawn against funds of the United States or any agency or instrumentality thereof. If a foreign address is shown for an owner, and if such owner meets the residential requirements as set forth above, a notation such as “residential qualifications sufficient” should be typed or stamped on the original registration stub. 4.05 Minors A minor, whether or not under legal guardian ship, may be named as owner or coowner if the bonds are purchased as a gift to him, and a minor may name a coowner or beneficiary on bonds purchased by him from his wages, earnings, or other money in his possession; but bonds pur chased by a parent or guardian with funds al ready belonging to a minor should be registered in the minor’s name alone without the addition of a coowner or beneficiary. 3.20 Return of excess stock As a matter of protection, each agent should limit the bond stock on hand to a reasonable amount necessary to meet normal sales demands. If an excess of stock develops in any denomina tion, the agent may return the excess to this bank. Also, a requisition may be submitted any time it becomes necessary to replace bonds sold or spoiled. 4.10 Others under legal disabilities If a person named in the registration of the bond is under legal disability and a guardian or sim ilar representative of his estate has been ap pointed by a court or is otherwise legally qual ified, the registration should indicate such facts. Bonds should not be registered in the name of a person under disability for reasons other than minority unless a legal representative of his estate has been appointed. Section 4, SALE OF BONDS 4.00 General restrictions Under the provisions of Treasury Department Circular No. 530, as revised and amended, the registration of savings bonds is restricted on 3 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS (b) Two individuals as coowners: John A. Jones 212 East Main Street Blankville, Texas or Mrs. Ellen S. Jones (c) One individual as the registered owner and one other individual as beneficiary: John A. Jones 212 East Main Street Blankville, Texas P.O.D. Miss Mary M. Jones NOTE: In no instance may there be more than two coowners or more than one beneficiary on one bond. The letters “P.O.D.” may be used as an abbreviation of “Payable on Death.” 4.30 Limitations on sale of bonds 4.15 Investors other than individuals in their own right Only Federal Reserve Banks and Branches and the Treasury Department may issue bonds to investors other than natural persons in their own right; however, issuing agents may accept applications on Form FA 907 from such investors and forward them to this bank or appropriate branch for issuance of the bonds. Series E bonds purchased by these investors (shown by types below) should be registered in the investor’s name alone without the addition of a coowner or beneficiary. Information regarding authorized forms of registration may be found in Treasury Department Circular No. 530, or may be obtained from this bank and its branches. (a) Minors, or incom petents, under legal guardianship (guardian appointed by a court and not a natural guardian), or mi nors, or incompetents, under legal cus todianship by designation of the Veterans Administration, where the funds already belong to the ward; After the calendar year 1969, the amount of Series E bonds issued during any one calendar year (January 1-December 31) that may be held by any one person at any one time is limited to $5,000 (issue price). Additional holdings are per mitted, however, in certain circumstances where bonds are registered in coownership form. In the case of Series E bonds so registered, no ex cess exists if, in a particular group of coowners, the holdings are such that the entire amount held can be allocated among the several coowners without apportioning an aggregate amount in excess of $5,000 (issue price) to any one person, including any amount chargeable to that person individually. For example, if a married man with two children has already purchased this year $5,000 (issue price) of Series E bonds registered in his own name, and his wife and children are not named as the registered owners or coowners of any Series E bonds issued this year, he may purchase an additional $15,000 (issue price) of such bonds registered as follows: $5,000 in his name with his wife as coowner, $5,000 in his name with one child as coowner, and $5,000 in his name with the other child as coowner. In such circumstances, the man as sole owner of $5,000 (issue price) and as coowner of $15,000 (isue price) of bonds would be entitled under the regulations to redeem all or part of such bonds without obtaining the signature of any of the coowners. For the purpose of calculating limita tions, it makes no difference which coowner’s name appears first in the inscription on the bonds. (b) Executors, administrators, guardians, cus todians, conservators, etc., when appointed by a court; (c) Trustees, whether or not of a personal trust estate, including an adequate identify ing reference to the trust instrument; (d) Corporations, unincorporated associations, partnerships, churches, hospitals, homes, schools, etc.; and (e) States and public bodies or officers 4.20 Commercial banks Series E bonds may not be registered in the name of a commercial bank, except as a fiduciary. 4.25 Forms of registration Subject to the restrictions set forth in the pre ceding paragraphs, the following are examples of the only forms of registration authorized for Series E bonds which may be issued by qualified issuing agents: (a) One individual as sole owner: John A. Jones 212 East Main Street Blankville, Texas 4 FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 4.35 Payment for bonds sold Bonds should be issued only upon receipt of payment in full. For the protection of issuing agents in cases where checks are tendered in paym ent, the Treasury suggests that agents establish a waiting period for clearance of the checks before delivery of the bonds. If a check is returned unpaid subsequent to delivery of the bond, a description of the bond and a statement of the facts should be furnished this bank. The agent should also obtain payment from the bond purchaser or have the bond returned imme diately. If payment is not received or the bond is not obtained after two requests, the agent’s file of correspondence, or a photographic copy of the correspondence should be forwarded promptly to the Federal Reserve Bank of Dallas 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 de mand reimbursement for loss resulting from bonds being issued and delivered by an agent against uncollectible funds. (d) The name of 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 for that purpose. At the beginning of each year, issuing agents should be careful to make appro priate change of the “year” date in their validating stamps. If a validating stamp be comes unusable or if it is worn to the extent that clear impressions cannot be obtained, replacement will be made by this bank upon request. “Year” date slugs will be supplied upon request and are avail able each December for the next calendar year. 5.05 Erasures Care should be exercised in inscribing bonds. Erasures or alterations on a bond are not per mitted. If an error is made in the inscription, the bond and stub should be marked “Spoiled,” the is suing agent’s stamp impressed thereon, and a new bond issued. Spoiled bonds should be returned to this bank using a separate Form PD 3252. Section 5, INSTRUCTIONS FOR ISSUANCE 5.10 Dating 5.00 Inscribing bonds Bonds should bear as an issue date the month and year in which the full payment for the issue price of the bond was initially received by the issuing agent. If, for example, payment is re ceived for a larger number or denomination of 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 with the month in which the remittance was received. The following instructions should be observed by personnel issuing bonds: (a) Whenever possible, a typewriter, address ing machine or other mechanical device should be used to inscribe bonds. (b) The name and post office address (includ ing postal ZIP code) of the registered owner should be inscribed in the space provided in the center of the bond and stub. If the bond is to be mailed in a window envelope, the name and address of the registered owner should be placed so that it will ap pear properly in the window. 5.15 Payroll deduction plans In the case of bonds purchased under the pay roll deduction plan of a qualified issuing agent, the month in which salary deductions accumu late to the full issue price of the bond to be issued would be the issue date. If a qualified issuing agent actually received on or before the last day of a given month a list of bonds to be issued accompanied by a check covering the issue price, and the bonds for any reason can not be issued in that particular month, the bonds should be given the dating of the month that payment was received. The issuing agent’s dat ing stamp should show, in the space provided, (c) The issue date (month and year only) should be inscribed in the space provided in the upper right-hand portion of the bond. It is desirable, in the interest of legibility, that the month of issue be spelled out in full. It is particularly desirable to avoid less common abbreviations, such as “Mar.” and “Jun.”, because of the possibil ity that these abbreviations could be mis taken for certain other calendar months. 5 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS Section 6, DELIVERY the date the bonds are actually inscribed. A bond should never bear an issue date (month of issue) subsequent to the date the bond is inscribed. 6.00 Mailing permissible Where personal delivery of bonds issued by agents is not feasible, the bonds may be mailed to purchasers. The Postmaster General has authorized the dispatch of inscribed savings bonds to owners or their agents, by official issu ing agencies, as ordinary first class mail without payment of postage, if enclosed in special pen alty envelopes with distinctive markings to indicate the nature of the contents. 5.20 Procedures for correction of errors in issue If errors are made in issuing bonds through inincorrect inscriptions, unauthorized forms of registration, wrong denominations, incorrect is sue date, duplications, improper authentications or otherwise, the following procedure should be followed: (a) Either at the time of inscription or subse quently, while both the bond and original registration stub are in the possession of the issuing agent, the incorrect bond should be canceled and considered as “Spoiled in Process of Issue.” A new bond may then be issued by the agent with the dating to which the purchaser is entitled. 6.05 Availability of penalty envelopes Since penalty envelopes may be purchased only under contracts negotiated by the General Ser vices Administration, the special envelopes re quired for the use of issuing agents will be purchased by the Treasury Department and will be furnished to issuing agents by this bank or approprate branch on request. Envelopes bear ing the penalty clause may not be procured in any other manner. Military issuing agents will obtain penalty envelopes through their regular supply channels. (b) If the original registration stub is not in the possession of the issuing agent, the in correct bond should in all cases be recalled and 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 Department. ISSUING AGENT SHOULD NOT, UNDER ANY CIRCUMSTANCES REISSUE BONDS WHEN THE ORIGINAL REGISTRATION STUBS ARE NOT IN THEIR POSSES SION, OR CONSIDER SUCH BONDS AS “SPOILED IN PROCESS OF ISSUE.” Bonds forwarded to this bank for reissue to correct an error made in the application by the purchaser should be accompanied by a Form PD-1491 executed by the regis tered owner; or, if the error was made by the issuing agent, a Form FA-14 executed by the issuing agent. If Form FA-14 is not available, a statement containing full in formation and bearing an authorized sig nature should accompany the bonds. Ap propriate notations should be made on the records of the issuing agent. If refunds re sulting from duplications or other errone ous issues are necessary, a statement by the issuing agent should accompany the surrendered bonds. 6.10 Use of penalty envelopes There are set forth below in brief form, the principal requirements of the Treasury Depart ment with regard to the use of these special penalty envelopes: (a) The name and return address of the author ized issuing agent must be printed or stamped on the envelope in the space above the caption “Authorized Issuing Agent.” (b) Unless delivered in person, inscribed bonds shipped at the risk of the Treasury should be dispatched to the owners, or their agents, by first class mail, in the special penalty envelopes with distinctive mark ings, supplied for that purpose. (c) The special envelopes must be used only for the purpose provided. They may not be used for the mailing of bonds for re demption, reissue, or other purposes. (At tention is directed to the penalty provided for the improper use of the franking privi lege.) The envelope should not be used for other than the original delivery of bonds even though postage is paid, but 6 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS c. Undeliverable bonds, following their receipt by this bank from issuing agents, will be sent to, and held in safekeeping by the Treasury De partment, Division of Loans and Currency, 536 South Clark Street, Chicago, Illinois 60605. That office will, upon receipt of a request from an issuing agent, an organization having a payroll savings plan, or a registered owner, release a previously undeliverable bond and forward it direct to the registered owner if satisfactory evi dence is submitted establishing his right to such bond. there is no objection to enclosing as pen alty matter a letter of transmittal describ ing the contents or containing information as to the condition of an employee’s bond account under the payroll allotment plan. Firms advertising material, even though relating largely to savings bond cam paigns should not be enclosed in penalty envelopes. (d) Care must be used in enclosing bonds in envelopes and in effecting delivery of the bonds to the local post office. These enve lopes should not be deposited in an ordi nary mail box. Section 7, UNCLAIMED CASH BALANCES (e) No reimbursement will be allowed for postage and registry fees in connection with the delivery of savings bonds to owners. 7.00 Remittance to Treasury Department The Treasury Department is willing to receive upon the request of any employer any cash bal ances credited to employees’ accounts under payroll allotment plans in cases where the bal ances are insufficient to purchase bonds and where refunds cannot be made because the employees’ whereabout are unknown. The Trea sury Department will hold the funds, subject to claim by the employee or an authorized represenative of his estate. (f) The use of special penalty envelopes in mailing bonds to purchasers or owners re siding in foreign countries is prohibited. (g) Agents are requested to submit an envelope inventory report to this bank annually. A form for that purpose will be sent to agents at the appropriate time. 7.05 Accompanying statement 6.15 Undeliverable bonds A statement showing the names of employees en titled to such balances, their last known ad dresses, their trades or occupations, their Social Security numbers and badge numbers, if any, and the amount due each employee, should ac company the funds transferred to the Treasury Department. In the event the list and accompany ing remittance should include any funds repre sented by unpaid checks issued to refund the amount due an employee, there should also be given the date of the check and the bank on which drawn, together with information as to whether payment had been stopped. In this con nection, in order to avoid duplicate payments, employers are cautioned not to include in their remittances any funds represented by unpaid checks drawn to the order of employees unless stop-payment orders have been placed against the outstanding checks. a. Issuing agents should forward to this bank any bonds issued against payment in full which remain undelivered after three full months from the date of issue as shown by the issuing agent’s validating stamp, or after all efforts to effect de livery have been exhausted (whichever is later), and which are in the possession of an authorized issuing agent; or an employer having a payroll savings plan who is not an authorized issuing agent; or any undeliverable bond, regardless of date of issue, in the possession of an authorized issuing agent whose qualification is being termi nated, provided diligent effort has been made and all available resources exhausted to effect delivery. b. Undeliverable bonds may be forwarded to this bank under the mailing instruction appli cable to the return of spoiled bond stock. A let ter giving a full explanation of the circumstances and action taken to effect delivery should be sent to this bank. 7.10 Form of remittance Employers should draw a check, draft, or money order payable to the Treasurer of the United 7 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS nished by this bank. If substitute bonds are to be issued in any such cases, they will be issued by this bank, or by the Treasury Department. States for the total amount of the unclaimed balances remitted to the Treasury for custody. Remittances accompanied by the statement should be forwarded direct to the Treasury De partment, Bureau of Accounts, Fiscal Service, Washington, D.C. 20220. The Treasury will ac knowledge receipt of the remittances and will establish appropriate accounts for the employees covering the proceeds deposited with the Trea surer of the United States. 8.05 After delivery to purchaser In the event of the loss, theft, or destruction of bonds AFTER delivery to the owners, applica tion for relief should be made by the registered owner or co-owners on Form PD-1048, executed to contain the complete description of the bonds including series, month and year of issue, serial numbers, and names and addresses of the regis tered owners, together with the circumstances surrounding the alleged loss. Forms PD-1048 may be obtained from this bank or its branches, or from the Treasury Department, and after ex ecution, should be forwarded to the Treasury Department, Division of Loans and Currency, 536 South Clark Street, Chicago, Illinois 60605. 7.15 Procedure to establish claims Any person entitled to make claim for and re ceive any of the money so deposited should submit a request for payment to the Bureau of Accounts at the address shown in the preceding paragraph over his own signature, setting forth the following information: (a] name of the em ployer for whom the employee was working when the payroll deductions were made; (b) location of employment; (c) Social Security num ber; (d) badge number, if any; (e) present ad dress; (f) address while employed by the subject company; (g) full name as carried on the payroll and trade or occupation while working for the subject company; (h) the period of employment with the company; (i) the amount due; and (j) any information which will be helpful in identi fying the employee and in establishing his claim. If the claimant is holding a check issued by the employer on which the claim is based, it should be forwarded with the request for payment. Ap plication by a legal representative will be recog nized, but the legal representative must furnish evidence as to the capacity in which he is acting, and as to his authority. Section 9, ACCOUNTING FOR BONDS 9.00 Separate deposit accounts Each institution qualified as an issuing agent on a consignment basis will open and maintain, or continue for the account of the Federal Reserve Bank of Dallas as Fiscal Agent of the United States, separate deposit accounts for the pro ceeds of all sales of savings bonds, Series E. Each issuing agent shall remit to this bank the balance of such account in immediately avail able funds when rendering reports of transac tions on Form PD 3252. 9.05 Report of sales — consignment basis Each issuing agent operating on the consignment basis shall render reports of sales to the Head Office of this bank on Form PD 3252. Agents with comparably small amounts of sales may report monthly or semi-monthly, and agents with a larger volume of sales should report at weekly intervals. If there have been no sales during an entire month, a report, for reconcilement pur poses, should nevertheless be submitted show ing the issue price of bond stock on hand as of the date of the report. Military issuing agents and other designated Government officers should report monthly as of the last day of each month on Form PD 3252 and at such time as an officer is relieved from duty. Reports may be sub mitted more frequently, if desired. Section 8, LOST BONDS 8.00 Before delivery to purchaser In the event of the loss, theft, or destruction of unissued bond stock or of inscribed bonds which have not been delivered to the purchasers, or of inscribed bonds issued and mailed and not received by the registered owners or other per sons to whom the bonds were to be delivered, issuing agents should give immediate notice of the facts to this bank, together with a complete description of the bonds, including serial num bers, inscriptions, issue dates and dates issued and mailed. Upon receipt of this information, appropriate instructions and forms will be fur 8 FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 9.10 Reports of sales — prepayment basis able rubber stamp or perforating equipment. The cancellation should be effected in such a manner as to avoid making the verification of any of the stamps difficult. A legible impression of the issuing agent’s authentication stamp (payment stamp if the issuing agent is also a qualified paying agent) should also be im printed on the face of each album. Issuing agents will be responsible for the examination of stamp albums to determine that they are properly com pleted and that the aggregate value of the stamps affixed is correct and is recorded on the face of the album. The owner’s name and address should also be recorded on the album. Each agent qualified on a prepayment basis should make an accounting on Form PD 3252 once each week, if practicable; however, if bonds are issued at semi-monthly or monthly payroll periods, an accounting may be made on that basis. Space is provided under the caption “METHOD OF PAYMENT” for prepayment agents to check the block labeled “Prepaid Ac count” in lieu of submitting a remittance. 9.15 Remittance Each stub transmittal, Form PD 3252, should be completed in all respects, and should be ac companied by a remittance for the total issue price shown on the form. When two or more Forms PD 3252 are submitted simultaneously, a single remittance for the combined sales amount may be tendered if desired. 10.10 Other forms of payment Qualified issuing agents may remit for bonds sold by the use of bank draft, money order, or other forms of cash payment, and member banks m ay a u t h o r iz e p a y m e n t th r o u g h r e s e r v e accounts. Section 10, FORM OF PAYMENT TO FEDERAL RESERVE BANK 10.15 Prepayment agents Funds deposited with this bank by prepayment agents in payment for bond stock will be used in settlement for bonds issued upon return of original registration stubs. If practicable, an ac counting should be made on Form PD 3252 once each week; however agents who issue bonds at monthly or semimonthly payroll periods may account for sales accordingly. 10.00 Treasury Tax and Loan Account Any incorporated bank or trust company, quali fied as an issuing agent, which is also qualified as a special depositary under the provisions of Treasury Department Circular No. 92, as re vised, may make settlement for the balance in its Series E bond account by credit in its “Treasury Tax and Loan Account.” Advice of credit, Form FA 794, authorizing payment through the “Treasury Tax and Loan Account” should accompany each sales report submitted. Section 11, DISPOSITION OF STUBS AND SPOILED BONDS 11.00 Stubs 10.5 Payment by surrender of United States savings stamps The original registration stubs from bonds issued should be forwarded to this bank accompanied by Form PD 3252. The stubs should be batched in groups not exceeding 6,000 stubs in number or $900,000 in amount (issue price), and a sep arate sales report prepared for each batch. All original registration stubs of bonds issued should be accounted for and the number of pieces of each denomination enclosed should agree with the figures shown on the reports. Issuing agents may accept savings stamps pre sented in payment, in whole or in part, for Series E savings bonds and may submit such stamps to this bank for credit or cash settlement or as an alternative may apply them in payment of their sales reports. Agents may also accept stamps for cash redemption but are not re quired to do so. Savings stamps may also be cashed at local post offices. Savings stamps are in effect bearer obligations and should be treated as such. Accepted stamps may be af fixed to an album and forwarded to this bank at the risk and expense of the United States provided that each stamp is canceled by a suit 11.05 Spoiled bonds Issuing agents qualified on a consignment basis may submit spoiled bonds, on a separate Form PD 3252, on a monthly basis. Prepayment agents should submit spoiled bonds whenever conven 9 FISCAL AGENCY OPERATING CIRCULAR NO. 1 FEDERAL RESERVE BANK OF DALLAS of the following items made by issuing agents to this bank: (a) spoiled and unissued bond stock, (b) registration stubs, (c) remittances for bonds sold, (d) canceled savings stamps, (e) transmittal forms. The method of mailing one or more of these items, depending upon the com bined weight of the shipment is outlined below: ient on separate transmittal letters and should inscribe the word “Replace” or “Refund” in the space directly above the authorized signature. All spoiled bonds and the original stubs detached from spoiled bonds should be marked “Void” or “Canceled” and be imprinted with the validating stamp. The stubs should be assembled separately in the same order as the bonds and both spoiled bonds and stubs should be forwarded to this bank with Form PD 3252. Spoiled bonds and/or stubs should not be intermingled with stubs from bonds sold. Care should be exercised to prevent the bonds and original registration stubs from being folded, creased, perforated, or muti lated in any way. SHIPMENTS WEIGHING LESS THAN ONE POUND (1) Shipments weighing less than one pound of bond registration stubs, remittances not in bearer form, and spoiled stock should be sent by ordinary first class mail. (2) Shipments weighing less than one pound containing cash or other remittances pay able to bearer and unissued bond stock should be sent by first class registered mail. 11.10 Unfit bonds If an issuing agent finds that it has bonds which are in such a condition that they cannot be processed under regular procedures, the bonds should be classed as unfit for use. This would include bonds damaged in shipment, exposed to the elements, assemblies not properly prepared by the manufacturer, e.g., bonds not correctly punched, contain lightly printed areas or upside down overprinting of the serial number, or have other m anufacturing d eficien cies. The stubs should not be detached from the bonds, and they should be returned to the Federal Reserve Bank with a properly executed savings bond report, Form PD 3252. The word “UNFIT” should be printed on the face of the report. SHIPMENTS WEIGHING ONE POUND OR MORE Shipments weighing one pound or more of items incident to the issuance of Series E sav ings bonds should be sent by fourth class registered mail provided the shipment does not exceed the weight and size limitations prescribed by postal authorities. 12.10 Registry fee Issuing agents should not pay the registry fee on shipments sent by registered mail since the Treasury Department has made provision with the U.S. Postal Service for payment of these fees under a contractual agreement. Each regis tered package should, how ever, be marked “Registered” and bear the following legend, placed in close proximity to the return address: "Registry Fee Paid by U.S. Treasury Depart ment.” The legend may be typed, stamped or printed on the envelope, or the gummed label (Form FA-121) furnished by this bank, which bears the prescribed legend, may be used. Section 12, MISCELLANEOUS 12.00 Maintenance of records by agents Agents are required to maintain for at least one year an adequate record of bonds issued. The record should show the series, denomination, serial number, issue date, validating date, and exact form of registration. In the case of the Type “A ” assembly, the duplicate stubs may be used for this purpose. Applications for the pur chase of bonds (or microfilm copies of such ap plications) should be retained by agents for a period of at least two years from the date the bonds are inscribed. 12.15 Insurance No insurance need be placed by issuing agents on bonds forwarded to purchasers or on ship ments of stubs, spoiled bonds or unissued stock forwarded to this bank, since the provisions of the Government Losses in Shipment Act are applicable to shipments prepared in accordance with the instructions. In order to comply with 12.05 Forwarding original stubs, bonds and remittances The provisions of the Government Losses in Shipment Act, as amended, apply to shipments 10 FEDERAL RESERVE BANK OF DALLAS FISCAL AGENCY OPERATING CIRCULAR NO. 1 the Act, issuing agents should retain a record of the contents of each shipment and the mailing thereof in order that the serial number of any bond lost, stolen, or destroyed may be deter mined. In connection with the mailing of bonds to purchasers or their agents, the Treasury Department has stated that the application or schedule for purchase of bonds showing the necessity for mailing, together with related bond information on the application, bond schedule, or bond stubs or other record and evidence of a uniform method of handling, would appear to be sufficient record in the absence of unusual or suspicious circumstances. Uniformity of pro cedure and exercise of due care in handling the bonds at time of enclosure into envelopes, seal ing and dispatch thereof, should be observed. reimbursed for postal expense incurred in for warding their sales reports and enclosures con ditioned on full compliance with postal instruc tions as outlined in this circular. Reimbursement may be requested periodically, preferably on a quarterly basis, on Form FA 103, directed to this bank. 12.25 Mailing address Sales transmittals of issuing agents (Form PD 3252, original registration stubs, remittance, and spoiled or unissued bond stock) should in all cases be addressed to: Federal Reserve Bank of Dallas Fiscal Agency Department Issuing Agents Section Station K Dallas, Texas 75222 12.20 Reimbursement for postal expense Issuing agents, other than United States Govern ment bond issuing officers may, if they desire, be 11