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FEDERAL. RESERVE BANK OF DALLAS FISCA L AGENT O P THE UNITED STATES Dallas, Texas, May 11,1958 NEW OFFERING OF TREASURY SAVINGS NOTES, SERIES B To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department announcing a new offering of Treasury Savings Notes of Series B : “ Secretary o f the Treasury Humphrey announced today that beginning on May 15 a new series of Treasury Savings Notes will be available for purchase at the Federal Reserve Banks and Branches and at the Treasury Department. The new notes will replace those presently on sale, the terms of which were set May 10, 1951. The new notes will be similar in all respects except as to maturity and interest rate. Their maturity will be two years instead of the present three years. The approximate interest rate will range from 2.16 percent per annum if held for six months; to 2.33 percent for one year; to 2.41 percent for eighteen months; and to 2.47 percent if held for the full two years to maturity. “ Treasury Savings Notes are issued primarily to provide a security in which corporations and other taxpayers can invest their tax reserves as they accumulate during the year. These non-marketable notes are also utilized extensively by corporations for the investment of other short-term funds. In addition, the Treasury issues Tax Anticipation bills from time to time to provide a short-term security for those corporations preferring marketable issues for the investment of their tax reserves. “ Since the holders o f savings notes have the privilege of using them for tax payments, or redeeming them for cash at any time after holding them for four months, the rate on the new notes is somewhat lower than the current rate on short-term marketable Government securities.” A copy o f Treasury Department Circular No. 922, dated May 11, 1953, containing regulations and complete details concerning the new Treasury Savings Notes of Series B, is enclosed. A small supply o f the application forms for the new notes, FA 824, is also enclosed. To avoid possible confusion, it will be appreciated if any application blanks for Treasury Savings Notes o f Series A, Form FA 799 Rev., in your possession are destroyed at this time. It is desirable to avoid heavy withdrawals from Treasury Tax and Loan depositaries to meet redemptions and a possible concentration of new deposits from sales in relatively few depositaries as a result of the redemption by some holders of their old savings notes for cash on May 15 and June 1 and the replacement of the notes with the new series purchased through commercial banks with payment through Treasury Tax and Loan accounts. In view of the foregoing, the Treasury Department requests the cooperation of all Treasury Tax and Loan depositaries in handling transactions for their customers involving the redemption o f outstanding notes and the purchase of new notes, both as cash transactions with this bank or appropriate branch. If they are not so handled and the proceeds of cash redemptions are deposited in customers’ accounts with depositaries which take credit in tax and loan accounts for corresponding sales, the Treasury will immediately call funds from such individual depositaries at the earliest possible date, following the deposits. Additional copies of the official circular or supplies of the application, Form FA 824, will be furnished upon request. 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) PA 824 APPLICATION FOR TREASURY SAVINGS NOTES, SERIES B Issued at Par and Accrued Interest From Issue Date Due 2 Years from Date o f Issue To: □ Federal Reserve Bank, Station K, Dallas, Texas □ Federal Reserve Bank Branch, El Paso, Texas □ Federal Reserve Bank Branch, Houston 1, Texas □ Federal Reserve Bank Branch, San Antonio 6 , Texas (D ate) The undersigned hereby applies fo r Treasury Savings Notes, Series B (issued pursuant to Treasury Department Circular No. 922), as follow s: Denomination $100 $500 $1,000 $5,000 $10,000 $100,000 $500,000 $1,000,000 Namfceref Notes P ar A n n u l INSCRIPTION PURCHASER’S NAME..... ......................................... ................................... . Accraed Interest (Typewrite or Print Purchaser's Name) ADDRESS__ DATE OF NOTES PAYMENT DELIVERY $ Total Cost Treasury Savings Notes of Series B will always be dated as o f the fifteenth o f a calendar month. See interest table on reverse side. The date funds are made available to this bank or its branch on collection o f exchange will govern the issue date o f the notes and amount o f accrued interest to be paid. Where payment is made through the Treasury Tax and Loan Account, the date on which the deposit is set up by the depositary bank on its books as shown below will govern the issue date o f the notes and amount of accrued interest to be paid.______________________ □ By draft or check attached hereto drawn on....................................... - ...... ...... ..... .......... ....................... ............. □ By charge to our reserve account which is hereby authorized. □ By duly authorized deposit on our books in accordance with Treasury Department Circular No. 92 (Treasury Tax and Loan Account) on......................................... ..... (D ate), as indicated by the attached officially signed form FA 794. □ TO BANK □ TO PURCHASER (Name o f institution submitting application) By........- ....................................- .................. (Signature and Title) (Address) NOTE: This application, accompanied by payment, should be mailed to the Federal Reserve Bank o f Dallas or appropriate branch. Accrued Interest To Date O f Payment* On $1,000 Treasury Savings fcfotes o f iSeries B A ccrued interest on Notes to be dated as o f the FIFTEEN TH day o f: Date Funds Are Available* January, March, May, July, August, October, December April, June, September, November 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $—0— 0.05806 0.11612 0.17418 0.23224 0.20030 0.34836 0.40642 0.46448 0.52254 0.58060 0.63866 0.69672 0.75478 0.81284 0.87090 0.92896 0.98702 1.04508 1.10314 1.16120 1.21926 1.27732 1.33538 1.39344 1.45150 1.50956 1.56762 1.62568 1.68374 1.74180 $—0— 0.06 0.12 0.18 0.24 0.30 0.36 0.42 0.48 0.54 0.60 0.66 0.72 0.78 0.84 0.90 0.06207 0.12414 0.18621 0.24828 0.31035 0.37242 0.43449 0.49656 0.55863 0.62070 0.68277 0.74484 0.80691 0.86898 0.96 1.02 1.08 1.14 1.20 1.26 1.32 1.38 1.44 1.50 1.56 1.62 1.68 1.74 0.93105 0.99312 1.05519 1.11726 1.17933 1.24140 1.30347 1.36554 1.42761 1.48968 1.55175 1.61382 1.67589 1.73796 , February (Leap Year) February 0— 0.06429 0.12858 0.19287 0.25716 0.32145 0.38574 0.45003 0.51432 0.57861 0.64290 0.70719 0.77148 0.83577 0.90006 0.96435 1.02864 1.09293 1.15722 1.22151 1.28580 1.35009 1.41438 1.47867 1.54296 1.60725 1.67154 1.73583 Date Funds Are Available* 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 i 2 3 4 5 6 7 8 9 10 11 12 13 14 *NOTE: The date the funds are available at this bank or branch for credit to the Treasurer’s Account. In the case of a Treasury Tax and Loan Depositary, the date of availability is the date the Depositary credited the Treasury Tax and Loan Account on its book as shown in the applica tion and Form FA 794. Interest accrues from the Fifteenth day of a given month to the fourteenth day of the follow ing month at the rate per $1,000.00 per day as shown in the above table. UNITED STATES OF AMERICA TREASURY SAYINGS NOTES Series B TREASURY DEPARTMENT Office of the Secretary Washington, May 11, 1953 1953 Department Circular No. 922 Fiscal Service Bureau o f the Public Debt SUBPART A B C D E F G Offering o f Notes. Description o f Notes. Purchase of Notes. Presentation in Payment of Taxes. Cash Redemption at or Before Maturity. Payment or Reissue to Other Than Inscribed Owner. General Provisions. Subpart A : OFFERING OF NOTES Sec. 334.1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, offers for sale to the people of the United States, at par and accrued interest as pro vided in Section 334.12 hereof, an issue of notes of the United States designated Treasury Savings Notes, Series B, which notes, if inscribed in the name of a Federal taxpayer, will be receivable as here inafter provided at par and accrued interest in payment of income, estate and gift taxes imposed by the Internal Revenue Code, or laws amendatory or supplementary thereto. The notes may also be redeemed for cash at par and accrued interest, with certain exceptions applicable to banking institutions, as provided in Section 334.16 hereof. Sec. 334.2. Withdrawal o f Series A Notes.—The sale of Treasury Savings Notes, Series A, offered under Department Circular No. 889, dated May 10, 1951, is hereby terminated at the close of business May 14,1953. Sec. 334.3. Duration of offer.— The sale of notes of Series B offered by this circular will begin on May 15, 1953, and will continue until terminated by the Secretary of the Treasury. Sec. 334.4. Definitions.— (a) The word “ month” as used herein means the period from and including the 15th day of any one calendar month to but not including the 15th day of the next succeeding month. (b) The words “ issue date” mean the date as o f which a note is issued and will always be the 15th day of a calendar month. (c) The words “ interest accrual date” or “ accrual date” mean the date upon which a month’s interest accrues on a note, the first accrual date being the 15th day of the calendar month next following the issue date. Subpart B : DESCRIPTION OF NOTES Sec. 334.5. General.— Treasury Savings Notes, Series B, will in each instance be dated as of the 15th day of a calendar month. The issue date will be determined by the day of the month on which payment at par and accrued interest, if any, is received and credited by an agency authorized to issue the notes. For example, payment received and credited on any day during the period from and including May 15, 1953, to and including June 14, 1953, would result in the issue of notes dated May 15, 1953. They will mature two years from that date and may not be called by the Secretary of the Treasury for redemption before maturity. All notes bearing issue dates within any one calendar year shall constitute a separate series indicated by the letter “ B” followed by the year of maturity. A t the time of issue the issuing agency will inscribe on the face of each note the name and address of the owner, will enter the issue date and will imprint its dating stamp (with current date). The notes will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000. Exchange of authorized de nominations from higher to lower, but not from lower to higher, may be arranged at any agency that issues Treasury Savings Notes, Series B. Sec. 334.6. Acceptance for taxes or cash redemption.— If inscribed in the name of an individual, corporation, or other entity paying income, estate or gift taxes imposed under the Internal Revenue Code, or laws amendatory or supplementary thereto, the notes will be receivable, subject to the pro visions of Section 334.15 of this circular, at par and accrued interest, in payment of such income, estate or gift taxes assessed against the owner or his estate. If not presented in payment of taxes, or if not inscribed in the name of a taxpayer liable to the above-described taxes, and subject to the provisions of Section 334.16 o f this circular, the notes will be payable at maturity, or at the owner’s option and request they will be redeemable before maturity at par and accrued interest. Sec. 334.7. Interest.— Interest on each $1,000 principal amount of Treasury Savings Note, Series B, will accrue monthly on the 15th calendar day of each month after the issue date on a graduated scale, as follows: First to Sixth months, inclusive_________________________________ $1.80 each month. Seventh to Twelfth months, inclusive____________________________ $2.10 each month. Thirteenth to Eighteenth months, inclusive_____________________$2.20 each month. Nineteenth to Twenty-fourth months, inclusive_________________ $2.30 each month. The table appended to this circular shows for notes of each denomination, for each consecutive month after issue date to maturity, (a) the amount of interest accrual, (b) the principal amount of the note with accrued interest (cumulative) added, and (c) the approximate investment yields. Subject to the provisions of Sections 334.15 and 334.16 hereof, when Treasury Savings Notes, Series B, are to be paid on an interest accrual date, the payment will include interest accruing on that date; otherwise, interest will be paid only to the interest accrual date next preceding the date of payment. Interest will be paid only with the principal amount, and will not accrue beyond the maturity date o f the note. Sec. 334.8. Forms of inscription.— Treasury Savings Notes, Series B, may be inscribed in the name of an individual, corporation, unincorporated association or society, or a fiduciary (including trustees under a duly established trust where the notes would not be held as security for the performance of a duty or obligation), whether or not the inscribed owner is subject to taxation under the Internal Revenue Code, or laws amendatory or supplementary thereto. They may also be inscribed in the name of a town, city, county or State or other governmental body and in the name of a partnership, but notes in the name of a partnership are not acceptable in payment of taxes, since a partnership is not a taxpaying entity under the Internal Revenue Code. The notes will not be inscribed in the names of two or more persons as joint owners or coowners; or in the name of a public officer, whether or not named as trustee, where the notes would in effect be held as security for the performance of a duty or obligation. Sec. 334.9. Restrictions on transfer.—Except as otherwise specifically provided herein, the notes may not be transferred, reissued, hypothecated, or pledged as security, may not be paid to any person other than the owner, and may not be accepted in payment of Federal income, estate, or gift taxes assessed against any person other than the owner. The notes will not be acceptable to secure deposits of public moneys. Sec. 334.10. Taxation.— Income derived from the notes shall be subject to all taxes now or hereafter imposed under the Internal Revenue Code or laws amendatory or supplementary thereto. The notes shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions of the United States, or by any local taxing authority. Subpart C: PURCHASE OF NOTES Sec. 334.11. Official agencies.— In addition to the Treasury Department, the Federal Reserve Banks and their Branches are hereby designated agencies for the issue and redemption of Treasury Savings Notes, Series B. The Secretary of the Treasury, from time to time, in his discretion, may designate other agencies for the issue of the notes, or for accepting applications therefor, or for making payments on account of the redemption thereof. Sec. 334.12. Applications and payment.— Applications will be received by the Federal Reserve Banks and Branches and by the Treasurer of the United States, Washington, D. C. Banking institutions gen erally may submit applications for the account o f customers but only the Federal Reserve Banks, their Branches and the Treasury Department are authorized to act as official agencies. The use of an official application form is desirable but not necessary. Such forms may be obtained upon request from any Federal Reserve Bank or Branch or the Treasurer of the United States. Every application must be accompanied by payment in full, at par and accrued interest, if any. The amount of accrued interest payable by the purchaser will be computedat the rate at which interest accrues on the notes ($1.80 per month per $1,000 par amount) for the actual number of days from but not including the issue date to and including the date funds are credited to the account of the Treasurer of the United States. For example, if funds are credited on the 20th day of January the issue date will be January 15, and five days' accrued interest must be paid by the purchaser. If collection is delayed so that credit is not given until February 15, the issue date will be February 15, and no accrued interest will be collectible. One day’s accrued interest for a thirty-one day period is $0.05806 per $1,000, for a thirty day period $0.06 per $1,000, for a twenty-nine day period $0.06207 per $1,000, and for a twenty-eight day period $0.06429 per $1,000. Any form of exchange, including personal checks, will be accepted, subject to collec tion, and should be drawn to the order of the Federal Reserve Bank or the Treasurer of the United States, as payee, as the case may be. Any depositary qualified pursuant to the provisions of Treasury Department Circular No. 92, Revised, as amended, will be permitted to make payment by credit for notes applied for on behalf of itself or its customers up to any amount for which it shall be qualified in excess of existing deposits. Sec. 334.13. Reservations.—The Secretary o f the Treasury reserves the right to reject any appli cation in whole or in part, and to refuse to issue or permit to be issued hereunder any notes in any case or in any class or classes of cases if he deems such action to be in the public interest, and his action in any such respect shall be final. If an application is rejected, in whole or in part, any payment received therefor will be refunded. Sec. 334.14. Delivery of notes.— Upon acceptance of a full-paid application, notes will be duly inscribed and, unless delivered in person, will be delivered, at the risk and expense of the United States at the address given by the purchaser, by mail, but only within the United States, its Territories and Island Possessions, and the Canal Zone. No deliveries elsewhere will be made. Subpart D: PRESENTATION IN PAYMENT OF TAXES Sec. 334.15. A t any time after two months from the issue date, during such time and under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe, notes issued hereunder in the name of a Federal taxpayer, may be pre sented by such taxpayer, his agent or his estate for credit against any income (current and back, personal and corporation taxes, and excess profits taxes) or any estate or gift taxes (current and back) imposed by the Internal Revenue Code, or laws amendatory or supplementary thereto, assessed against the inscribed owner or his estate. For example, a note dated January 15 may be presented for credit against taxes due March 15. The notes will be receivable by the Director o f Internal Revenue at par and accrued interest to the day (but no accrual beyond maturity) when the taxes are due, if such day falls on the 15th day of a calendar month, whether the notes are received on or before that day. If the taxes are due on any other day of the month than the 15th, accrued interest will be credited to the accrual date next preceding the day when the taxes are due. Notes are receivable only in payment of taxes equal to or exceeding the entire value of the notes, including accrued interest. The notes must be for warded to the Director at the risk and expense of the owner and, for his protection, should be forwarded by registered mail, if not presented in person. Subpart E : CASH REDEMPTION AT OR BEFORE MATURITY Sec. 334.16. General.— Any Treasury Savings Note, Series B, not presented in payment of taxes will be paid at maturity, or, at the option and request of the owner, and without advance notice, will be redeemed before maturity, at any time after four months from the issue date. For example, a note dated January 15 may be redeemed for cash on or after May 15. If redemption prior to maturity is requested on an interest accrual date the redemption will include interest accruing on that date, otherwise redemp tion will be at par and accrued interest to the interest accrual date next preceding the redemption date, except in the case of a note inscribed in the name of a bank that accepts demand deposits, in which case payment, whether at or before maturity, will be made only at par, with a refund of any accrued interest which may have been paid at the time of purchase of the note. If a note is acquired by a banking institution through forfeiture of a loan, payment will be made at par and the accrued interest payable as of the date of acquisition. Sec. 334.17. Execution o f request for payment.—The owner in whose name the note is inscribed must appear before one of the officers authorized by the Secretary of the Treasury to witness and certify requests for payment, establish his identity, and in the presence of such officer sign and complete the request for payment appearing on the back of the note. After the request for payment has been executed, the witnessing officer should execute the certificate provided for his use. Sec. 334.18. Officers authorized to certify requests for payment.— All officers authorized to certify requests for payment of United States Savings Bonds, as set forth in Treasury Department Circular No. 530, Seventh Revision, as amended, are hereby authorized to certify requests for cash redemption of Treasury savings notes issued under this circular. Such officers include, among others. United States postmasters, certain other post office officials, officers of all banks and trust companies incorporated in the United States or its territories, including officers at branches thereof, and commissioned and warrant officers of the Armed Forces of the United States. Sec. 334.19. Presentation and surrender.— Notes bearing properly executed requests for payment must be presented and surrendered to any Federal Reserve Bank or Branch or to the Treasurer of the United States, Washington 25, D. C., at the expense and risk of the owner. For the owner’s protection, notes should be forwarded by registered mail, if not presented in person. Sec. 334.20. Partial redemption.— Partial cash redemption of a note, corresponding to an authorized denomination, may be made in the same manner as full cash redemption, appropriate changes being made in the request for payment. In case of partial redemption of a note, the remainder will be reissued in the same name and with the same issue date as the note surrendered. Sec. 334.21. Payment.— Payment of any note, either at maturity or on redemption before maturity, will be made by any Federal Reserve Bank or Branch or the Treasurer of the United States, following clearance with the agency of issue, which will be obtained by the agency to which the note is surrendered. Payment will be made by check drawn to the order of the owner, and mailed to the address given in his request for payment, or by credit in any account maintained by a banking institution with the Federal Reserve Bank of its District. Subpart F : PAYMENT OR REISSUE TO OTHER THAN INSCRIBED OWNER Sec. 334.22. Presentation and surrender.— A note may be paid or reissued in accordance with any of the provisions of this subpart only upon the presentation and surrender of the note at the risk and expense of the owner to the issuing agency, accompanied by an appropriate request for the particular transaction. Sec. 384.23. Authorized transfers.— (a) Between husband and wife__ A note inscribed in the name of a married man may be reissued in the name of his wife, and a note inscribed in the name of a married woman may be reissued in the name of her husband. (b) Between affiliated corporations.— A note inscribed in the name o f a parent corporation, which is hereby defined as a corporation owning more than 50 percent o f the stock, with voting power, of another corporation, may be reissued in the name of a subsidiary, and a note registered in the name o f a subsidi ary may be reissued in the name of the parent corporation. Sec. 334.24. Authorized pledge.— A note may be pledged as collateral for a loan from a banking institution, and if title thereto is acquired by the institution because of default in the payment of the loan, the notes will be redeemed at par and accrued interest to the interest accrual date next preceding the date of such acquisition, unless acquired on an interest accrual date, in which case redemption will be made at par and accrued interest to that date. Proof of the date of acquisition must be furnished, and payment must be requested by the pledgee under a power of attorney given by the pledgor in whose name the note is inscribed. The note will not be transferred to the pledgee. Sec. 334.25. Payment to representatives of deceased or incompetent owners and payment or reissue to heirs or legatees o f deceased owners.— In case of the death or disability of an individual owner, if the notes are not to be presented in payment of taxes, payment will be made to the duly constituted repre sentative of his estate, or they may be reissued to one or more o f his heirs or legatees upon satisfactory proof of their right; but no reissue will be made in the names of two or more persons jointly or as coowners. Sec. 334.26. Payment or reissue to successors of corporations, unincorporated associations or part nerships.— If a corporation or unincorporated body in whose name notes are inscribed is dissolved, con solidated, merged or otherwise changes its organization, the notes may be paid to, or reissued in the name of, those persons or organizations lawfully entitled to the assets of such corporation or body by reason o f such changes in organization. Sec. 334.27. Payment to representatives of bankrupt or insolvent owners.— If an owner of notes is declared bankrupt or insolvent, payment, but not reissue, will be made to the duly qualified trustee, receiver or similar representative if the notes are submitted with satisfactory proof of his appointment and qualification. Sec. 334.28. Payment as a result of judicial proceedings.— Payment, but not reissue, will be made as a result of judicial proceedings in a court of competent jurisdiction, if the notes are submitted with proper proof of such proceedings and their finality. Sec. 334.29. Instructions and information.— Before executing the request for payment or submitting the notes under the provisions of this subpart, instructions should be obtained from a Federal Reserve Bank or Branch or from the Treasury Department, Division of Loans and Currency, Washington 25, D. C. Subpart G: GENERAL PROVISIONS Sec. 334.30. Regulations.—Except as provided in this circular, the notes issued hereunder will be subject to the general regulations of the Treasury Department, now or hereafter prescribed, governing bonds and notes o f the United States; the regulations currently in force are contained in Department Circular No. 300, as amended. See. 334.31. Loss, theft or destruction.— In case of the loss, theft or destruction o f a savings note immediate notice (which should include a full description of the note) should be given the agency which issued the note and instructions should be requested as to the procedure necessary to secure a duplicate. Sec. 334.32. Fiscal agents.— Federal Reserve Banks and their Branches, as fiscal agents of the United States, are authorized to perform such services or acts as may be appropriate and necessary under the provisions of this circular and under any instructions given by the Secretary of the Treasury, and they may issue interim receipts pending delivery of the definitive notes. Sec. 334.33. Amendments.— The Secretary of the Treasury may at any time or from time to time supplement or amend the terms of this circular, or of any amendments or supplements thereto, and may at any time or from time to time prescribe amendatory rules and regulations governing the offering of the notes, information as to which will promptly be furnished to the Federal Reserve Banks. G. M. HUMPHREY, Secretary of the Treasury. TREASURY SAVINGS NOTES - SERIES B TABLE OF TAX-PAYMENT OR REDEMPTION VALUES AND INVESTMENT YIELDS The table below shows for each month from issue date to maturity date the amount of interest accrual; the principal amount with accrued interest added, for notes of each denomination; the approximate investment yield on the par value from issue date to the 15th of each month following the isspe date; and the approximate investment yield on the current redemption value from the 15th of the month indicated to the maturity date. 15th Note. The word "month" as used in this table means the period from and including the 15th day of any one calendar month to but not including the day of the next succeeding month. $100.00 Amount of Interest accrual each month after Issue month Interest accrues at rate of $1.80 per month per $1,000 par amount: First month— — — — — — — — Second month— ----------------Third month-------------------Fourth month--- Fifth month-— Sixth month-------------------Interest accrues at rate of $ 2 , 1 0 per month per $1,000 par amount: Seventh month------------- -— — Eighth month------------------Ninth m o n t h - - — — — — -— Tenth month---— --— --— — — — Eleventh month----------------Twelfth month-----------------Interest accrues at rate of $2 . 2 0 per month per $1,000 par amount: Thirteenth month------------ t — Fourteenth month---------------Fifteenth month----------------Sixteenth month— — — — — « Seventeenth month--------------Eighteenth month------------------ Interest accrues at rate of $ 2 . 3 0 per month per $1,000 par amount: Nineteenth month— — --— -— -— * Twentieth month---— — — — — Twenty-first month-------------Twenty-second month-----------Twenty-third month--— — ------MATURITY----------------------1/ 2/ $500.00 $1,000.00 $5,000.00 $10,000.00 $100,000.00 O O O O O O 8 Par value $500,000.00 Tax-payment or redemption values during each monthly period after Issue month 1/ $500.90 501.80 502.70 503.60 50a.50 505.ao $1,001.80 1,003.60 i.oo5.ao 1.007.20 1,009.00 1.010.80 $5,009.00 5,018.00 5.027.00 5,036.00 5.095.00 5.059.00 $10,018.00 1 0 . 3 6 .0 0 0 lO.O5a.OO 10,072.00 10,090.00 10,108.00 $100,180.00 100.360.00 1 0 0 .5 9 0 . 0 0 100.720.00 100,900.00 101.080.00 506.*5 507.50 508.55 509.60 510.65 511.70 1.012.90 1.015.00 1.017.10 1,019.20 1 .0 2 1 . 3 0 i,o23.ao ,0 6 9 . 5 0 5.075.00 5.085.50 5,096.00 5.106.50 5.117.00 10.129.00 10,150.00 10.171.00 10,192.00 1 0 ,2 1 3 . 0 0 1 0 ,2 3 9 . 0 0 101.290.00 101,500.00 101,710.00 101,920.00 102,130.00 1 0 2 ,3 9 0 . 0 0 509,600.00 510,650.00 511.700.00 1.012,900.00 1,015,000.00 1,017,100.00 1,019.200.00 1 .0 2 1 .3 0 0 . 0 0 1 .0 2 3 , 0 0 . 0 0 9 103.aa 103.66 512.80 513.90 515.00 516.10 517.20 518.30 1,025.60 1,027.80 1,030.00 1,032.20 i.osa.ao 1.036.60 5.128.00 .1 3 9 . 0 0 5 ,1 5 0 . 0 0 5,161.00 5.172.00 5.183.00 IO.256.OO 10,278.00 10,500.00 10,322.00 10. 3 9 9 .00 1 0 .3 6 6 . 0 0 102,560.00 102.780.00 103.000.00 1 0 3 . 2 0 .0 0 2 1 0 3 ,9 9 0 . 0 0 103.660.00 512,800.00 5 1 3 .9 0 0 . 0 0 515.000.00 516,100.00 517.200.00 5 l8 .3 0 0 . 0 0 1,025,600.00 1,027.800.00 1 . 3 0 , 0 0 .0 0 0 0 1 ,0 3 2 . 0 0 . 0 0 2 1 ,0 3 9 , 0 0 . 0 0 9 1,036,600.00 103.89 10a.12 35 10a.58 10a.81 5 1 9 .* 5 520.60 521.75 522.90 529.05 1,038.90 i,oai.2o 1 . 9 3 .5 0 0 1.095.80 1 , 9 8 .1 0 0 5 .1 9 9 . 5 0 5.206.00 5 .2 1 7 . 5 0 5 ,2 2 9 . 0 0 5 .2 9 0 . 5 0 1 0 ,9 8 1 . 0 0 103.890.00 .1 2 0 . 0 0 1 0 9 ,3 5 0 . 0 0 1 0 9 ^5 8 0 . 0 0 1 0 9 ,8 1 0 . 0 0 5 1 9 . 5 0 .0 0 9 520,600.00 5 2 1 .7 5 0 . 0 0 522.900.00 5 2 9 . 5 0 .0 0 0 1,038,900.00 ,0 9 1 ,2 0 0 . 0 0 1 .0 9 3 , 0 0 . 0 0 5 1 ,0 9 5 , 0 0 . 0 0 8 1 ,0 9 8 .1 0 0 . 0 0 105.0a 525.20 1 1 0 , 0 9 .0 0 5 1 0 5 .0 9 0 . 0 0 525.200.00 1.0 $100.18 100.36 100.5a 1 0 0 .7 2 100.90 101.08 101.29 101.50 101.71 101.92 1 0 2 .1 3 102 .3*1 1 0 2 .5 6 102.78 103.00 1 0 3 .2 2 10 a. .0 5 0 . 9 0 5 5 5 .2 5 2 . 0 0 10 ,3 8 9 . 0 0 1 0 ,9 1 2 . 0 0 1 0 ,9 3 5 . 0 0 1 0 ,9 5 8 . 0 0 109 $500,900.00 501.800.00 502,700.00 5 0 3 ,6 0 0 . 0 0 5 0 9 .5 0 0 . 0 0 5 0 5 . 0 0 .0 0 9 5 0 6 , 5 0 .0 0 9 5 0 7 .5 0 0 . 0 0 5 0 8 .5 5 0 . 0 0 $1,001,800.00 1,003,600.00 1 .0 0 5 ,9 0 0 . 0 0 1,007,200.00 1,009.000.00 1,010,800.00 1 5 0 , 0 0 .0 0 9 Approximate Approximate Investment Investment yield on par yield on current tax-payment or value from redemption issue date to values from beginning of beginning of each monthly each monthly period period to there maturity after Percent Percent 2 .9 7 2/ 2 .9 9 2.16 2 .5 0 2.16 2.16 2.52 2.16 2 .5 9 2.16 2 .5 6 2.16 2 .5 8 2.21 2 .5 8 2 .2 5 2 .5 9 2 .2 7 2 .5 9 2 .3 0 2.60 2.61 2.62 2 .3 1 2 .3 3 2 .3 5 2.62 2.36 2.38 2 .6 3 2 .3 9 2 .9 0 2 .9 1 2 .6 3 2 .6 9 2.65 2.66 2 .9 6 2.66 2.66 2.65 2.65 2 .9 7 2 .6 5 2 .9 2 2 .9 9 2 .9 5 2 .9 7 Rot acceptable In payment of taxes until after the second month from Issue date, and not redeemable for cash until after the fourth month from Issue date. Approximate Investment yield for entire period from Issue date to maturity.