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federal reserve Ba n k F IS C A L A G E N T O F T H E DALLAS. TEXAS of U N IT E D Dallas STATES 75222 Circular No. 73-125 May 2 k , 1973 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Enclosed is a current copy of Treasury Department Circular No. 300, Uth Revision, entitled "General Regulations Governing United States Securities. Please note that this revision replaces the Third Revision dated December 23, 196k , and all subsequent amendments, supplements, etc. Additional copies are available upon request. Yours very truly, P. E. Coldwell President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) DEPARTMENT OF THE TREASURY Fiscal Service, Bureau of the Public Debt GENERAL REGULATIONS GOVERNING UNITED STATES SECURITIES Dept. Circular No. 300, 4th Rev. March 9, 1973 WASHINGTON, D.C. THURSDAY, MARCH 15, 1973 WASHINGTON, D.C. Volume 38 ■ Number 50 PART II DEPARTMENT OF THE TREASURY Fiscal Service, Bureau of the Public Debt GENERAL REGULATIONS GOVERNING UNITED STATES SECURITIES Dept. Circular No. 300, 4th Rev. 2 Title 31— Money and Finance: Treasury CHAPTER II— FISCAL SERVICE, DEPARTMENT OF THE TREASURY SUBCHAPTER B— BUREAU OP TH E PUBLIC DEBT PART 30&— GENERAL REGULATIONS GOVERNING U.S. SECURITIES T he regulations in 31 CFR P a rt 306 have been revised an d am ended for th e purpose of facilitating th e functioning of tran sactio n s in m arketable U.S. securities. Notice an d public procedures are u n necessary a n d are dispensed w ith as th e revision is largely declaratory of th e re visions an d am endm ents heretofore pub lished in th e F e d e r a l R e g is t e r an d fiscal policy of th e U nited S tates is involved. T he changes were effected u nder au th o r ity of R.S. 3706; 40 S tat. 288, 502, 844, 1309; 42 S tat. 321; 46 S tat. 20; 48 S tat. 343; 49 S tat. 20; 50 S tat. 481; 52 S tat. 447; 53 S tat. 1359; 56 S tat. 189; 73 S tat. 622; a n d 85 S tat. 5, 74 (31 U.S.C. 738a, 739, 752, 752a, 753, 754, 754a, an d 754b); 5 U.S.C. 301. D ated: M arch 9,1973. [sea l] J o h n K . C arlock, Fiscal Assistant Secretary. D epartm ent of th e T reasury C ircular No. 300, T h ird Revision, dated December 23, 1964 (31 CFR P a r t 306), as am ended, is hereby fu rth e r am ended and issued as th e F o u rth Revision. Sec. 306.0 306.1 306.2 306.3 S ubpart A— G eneral In form atio n A p p lic a b ility o f re g u la tio n s . Official ag en cies. D e fin itio n s o f w o rd s a n d te r m s u se d In th e s e re g u la tio n s. T r a n s p o r ta tio n ch a rg e s a n d risk s in t h e s h ip m e n t o f se c u ritie s . Sub part B— Registration 306.10 306.11 306.12 306.13 G en eral. F o rm s o f r e g is tr a tio n fo r t r a n s f e r a b le se c u ritie s . E rro rs In re g is tr a tio n . N o n tra n s f e r a b le se c u ritie s . Sub part E— In terest Sec. 306.35 306.36 306.37 306.38 S ubpart F— A ssignm ents of Registered Securities— General 306.40 E x e c u tio n o f a s s ig n m e n ts o r sp e cial e n d o rs e m e n ts . F o rm o f a s s ig n m e n t. A lte r a tio n s a n d e ra su re s . V o id an ce o f a s s ig n m e n ts D isc re p a n c ie s in n a m e s. Officers a u th o r iz e d t o c e r tify a s s ig n m e n ts . D u tie s a n d r e s p o n s ib ilitie s o f c e r tif y in g officers. E v id e n ce o f c e r tify in g officer’s a u th o r ity . I n t e r e s t e d p e rso n s n o t to a c t as c e rtify in g officer o r w itn ess. N o n tr a n s f e r a b le se c u ritie s . 306.41 306.42 306.43 306.44 306.45 306.46 306.47 306.48 306.49 Subpart G— Assignm ents by or In B eh alf of Individuals 306.55 306.56 306.57 306.58 306.16 306.17 306.18 306.19 306.20 306.21 306.22 T ra n s fe rs a n d e x c h a n g e s o f s e c u ri tie s — closed p erio d s. E x c h a n g e s o f re g iste re d se c u ritie s . E x c h a n g e s o f re g iste re d se c u ritie s fo r c o u p o n se c u ritie s . E x c h a n g e s o f c o u p o n s e c u ritie s fo r re g iste re d se c u ritie s . D e n o m in a tio n a l e x c h a n g e s o f c o u p o n se c u ritie s . R e issu e of re g is te re d tr a n s f e r a b le se c u ritie s . R e issu e o f n o n tr a n s f e r a b le s e c u ri tie s. E x c h a n g e o f T re a s u ry B on d s, I n v e s tm e n t S eries B -1975-80. S ig n a tu re s , m in o r e rro rs a n d ch a n g e of nam e. A s sig n m e n t o f s e c u ritie s re g iste re d in t h e n a m e s o f o r assig n e d to tw o o r m o re p erso n s. M in o rs a n d In c o m p e te n ts . N o n tr a n s f e r a b le se c u ritie s . S ubpart H— Assignm ents In B eh alf of Estates of Deceased Owners 306.65 306.66 306.67 306.68 S p ecial p ro v isio n s a p p lic a b le to sm a ll a m o u n ts o f se c u ritie s , I n t e r e s t ch eck s, o r re d e m p tio n ch eck s. E s ta te s — a d m in is tr a tio n . E s ta te s n o t a d m in is te r e d . N o n tr a n s f e r a b le se c u ritie s . S ubpart I— Assignm ents by or in B ehalf of Trustees and S im ila r Fiduciaries 306.75 306.76 306.77 306.78 I n d iv id u a l fid u c ia rie s . F id u c ia rie s a c tin g as a u n i t . C o re p re s e n ta tiv e s a n d fid u ciaries. N o n tr a n s f e r a b le se c u ritie s . Sub part J— A ssignm ents in B eh alf of P rivate or Public O rganizations 306.85 306.89 306.90 P riv a te c o r p o ra tio n s a n d u n in c o r p o r a te d a s s o c ia tio n s ( in c lu d in g n o m in e e c o r p o r a tio n s ) . C h a n g e o f n a m e a n d su c c e ssio n o f p r iv a te o rg a n iz a tio n s . P a r tn e r s h ip s (In c lu d in g n o m in e e p a rtn e rs h ip s). P o litic a l e n title s a n d p u b lic c o r p o ra tio n s . P u b lic officers. N o n tr a n s f e r a b le se c u ritie s . 306.95 306.96 A tto rn e y s in fa c t. N o n tr a n s f e r a b le se c u ritie s . 306.86 S ubpart C— Transfers, Exchanges and Reissues 306.15 C o m p u ta tio n o f I n te re s t. T e r m in a tio n o f in te r e s t. I n t e r e s t o n re g is te re d se c u ritie s . I n t e r e s t o n b e a re r se c u ritie s . 306.87 306.88 S ubpart K— Attorneys in Fact S ubpart L— T ran sfer Through Judicial Proceedings 306.100 306.101 306.102 T ra n s fe ra b le s e c u ritie s . E v id e n ce re q u ire d . N o n tra n s f e r a b le se c u ritie s . Subpart D— Redem ption or Paym ent 306.25 306.26 306.27 306.28 P r e s e n ta tio n a n d s u r r e n d e r . R e d e m p tio n o f re g iste re d s e c u ritie s a t m a t u r i ty , u p o n p r io r call, o r fo r p r e r e f u n d in g o r a d v a n c e r e fu n d in g . R e d e m p tio n o f b e a r e r s e c u ritie s a t m a t u r i ty , u p o n p r io r call, o r fo r a d v a n c e r e fu n d in g o r p r e r e f u n d ing. O p tio n a l re d e m p tio n o f T re a s u ry b o n d s a t p a r (b efo re m a t u r i ty o r c all r e d e m p tio n d a te ) a n d a p p lic a tio n o f t h e p ro ceed s In p a y m e n t o f F e d e ra l e s ta te ta x e s . Sub part M— Requests fo r Suspension of Transactions 306.105 306.106 R e q u e s ts a c tio n s R e q u e s ts a c tio n s fo r su s p e n s io n o f t r a n s in r e g iste re d s e c u ritie s . fo r su s p e n s io n o f t r a n s i n b e a r e r se c u ritie s . Subpart N— R elief fo r Loss, Th eft, D estruction, M utilation , or D efacem ent of Securities 306.110 306.111 306.112 306.113 S t a t u t o r y a u t h o r i t y a n d r e q u ir e m e n ts . P ro c e d u re fo r a p p ly in g fo r relief. T y p e o f re lie f g r a n te d . C ases n o t r e q u ir in g b o n d s o f i n d e m n ity . S ubpart O— Book-Entry Procedure * Sec. 306.115 306.116 306.117 306.118 306.119 306.120 306.121 306.122 • D e fin itio n o f te rm s. A u th o r ity o f R eserv e B a n k s. Scope a n d effect o f b o o k - e n try p ro c e d u re . T ra n s fe r o r p led g e. W ith d ra w a l o f T re a s u ry se c u ritie s . D eliv ery o f T re a s u ry se c u ritie s . R e g is te re d b o n d s a n d n o te s . S erv ic in g b o o k - e n try T re a s u ry s e c u r itie s ; p a y m e n t of In te re s t, p a y m e n t a t m a t u r i ty o r u p o n call. S ubpart P— M iscellaneous Provisions 306.125 306.126 306.127 306.128 A d d itio n a l r e q u ire m e n ts . W aiv er o f r e g u la tio n s . P re s e rv a tio n o f e x is tin g rig h ts . S u p p le m e n ts , a m e n d m e n ts o r r e v isio n s. A p p en d ix to S u b p a r t E— I n t e r e s t . C o m p u ta tio n of I n t e r e s t o n T re a s u ry B o n d s, N otes, a n d C e rtific a te s o f In d e b te d n e s s . C o m p u t a t i o n o f D is c o u n t o n T re a s u ry B ills— I n t e r e s t T ab les. A p p en d ix t o S u b p a r t O— B o o k -E n try P ro ce d u re . A u t h o r i t y : R .S. 3706; 40 S ta t. 288, 502, 844, 1309 ; 42 S ta t. 321; 46 S ta t. 20; 48 S ta t. 343; 49 S t a t . 20; 50 S ta t. 481; 52 S ta t. 477; 53 S ta t. 1359; 56 S t a t . 189; 7§ S t a t . 622; a n d 85 S ta t. 5, 74 (31 U.S.C. 738a, 739, 752, 752a, 753, 754, 754a, a n d 7 5 4 b ); 5 U.S.C. 301. Subpart A— General Information § 3 0 6 .0 A p p lic a b ility o f r e g u la t io n s . T hese regulations apply to all U.S. tran sferab le an d n o n tran sferab le secu rities,1 o th er th a n U.S. Savings Bonds an d U.S. Savings Notes, to th e ex ten t specified in these regulations, th e offer ing circulars or special regulations gov erning such securities. § 3 0 6 .1 O fficia l a g e n c ie s . (a) Subscriptions— tenders— bids. Se curities subject to these regulations are issued from tim e to tim e p u rsu an t to public offerings by th e S ecretary of th e T reasury, th ro u g h th e F ederal Reserve banks, fiscal agents of th e U nited S tates, an d th e T reasu rer of th e U nited S tates. O nly th e Federal Reserve banks an d b ranches an d th e D ep artm en t of th e T reasury are authorized to a c t as official agencies, an d subscriptions or tenders for T reasury securities, an d bids, to th e ex ten t provided in th e regulations gov erning th e sale of T reasury securities th ro u g h com petitive bidding, m ay be m ade direct to them . However, tenders for T reasury bills are n o t received a t th e D epartm ent. (b) Transactions after issue. T he B u reau of th e Public D ebt of th e D ep a rt m e n t of th e T reasury is charged w ith m a tte rs relatin g to tran sactio n s in securities. Correspondence concerning tran sactio n s in securities an d requests for ap p ro p riate form s m ay be addressed to (1) th e F ederal Reserve b ank or b ran ch of th e d istrict in w hich th e cor respondent is located, or (2) th e B ureau of th e Public Debt, Division of Securities O perations, W ashington, D.C. 20226, or (3) th e Office of th e T reasu rer of th e 1 T h e se re g u la tio n s m a y also b e a p p lie d t o s e c u ritie s Issu ed b y c e r ta in a g en cie s o f t h e U n ite d S ta te s a n d c e r ta in G o v e rn m e n t a n d G o v e rn m e n t-s p o n s o re d c o rp o ra tio n s . 3 U nited S tates, Securities Division, W ash ington, D.C. 20222, except w here specific in stru ctio ns are otherw ise given in these regulations. T he addresses of th e F ederal Reserve banks and branches are: F e d e ra l R eserv e B a n k o f B o sto n , B o sto n , M ass. 02106. F e d e ra l R eserve B a n k o f N ew Y ork, New Y o rk , N.Y. 10045. B u ffalo B ra n c h , B uffalo, N.Y. 14240. F e d e ra l R eserv e B a n k o f P h ila d e lp h ia , P h ila d e lp h ia , P a. 19101. F e d e ra l R eserv e B a n k o f C lev elan d , C leve la n d , O h io 44101. C in c in n a ti B r a n c h , C in c in n a ti, O hio 45201. P i t t s b u r g h B r a n c h , P itts b u r g h , P a. 15230. F e d e ra l R eserv e B a n k o f R ic h m o n d , R ic h m o n d , Va. 23261. B a ltim o re B ra n c h , B a ltim o re , M d. 21203. C h a rlo tte B ra n c h , C h a rlo tte , N.C. 28201. F e d e ra l R eserv e B a n k o f A tla n ta , A tla n ta , G a. 30303. B ir m in g h a m B ra n c h , B irm in g h a m , Ala. 25202. Ja c k s o n v ille B ra n c h , J a c k so n v ille , F la. 32203. N ash v ille B ra n c h , N ash v ille , T e n n . 37203. New O rle a n s B ra n c h , New O rle a n s, La. 70160. M ia m i Office, M iam i, F la. 33152. F e d e ra l R eserv e B a n k o f C h icag o , C hicago, 111. 60609. D e tro it B r a n c h , D e tro it, M ich . 48231. F e d e ra l R eserv e B a n k o f S t. L o u is, S t. L o u is, Mo. 63166. L ittle R o ck B ra n c h , L ittle R ock, A rk. 72203. L o uisv ille B ra n c h , L ou isv ille, K y. 40201. M e m p h is B ra n c h , M e m p h is, T e n n . 38101. F e d e ra l R eserv e B a n k o f M in n e ap o lis, M in n eap o lis, M in n . 55480. H e le n a B r a n c h , H e le n a , M o n t. 59601. F e d e ra l R eserv e B a n k o f K a n s a s C ity , K a n sa s C ity , Mo. 64198. D en v er B ra n c h , D en v er, Colo. 80217. O k la h o m a C ity B ra n c h , O k la h o m a C ity , O k la. 73125. O m a h a B r a n c h , O m a h a , N ebr. 68102. F e d e ra l R eserv e B a n k o f D allas, D allas, Tex. 75222. El P aso B ra n c h , El P aso, T ex. 79999. H o u s to n B r a n c h , H o u s to n , T ex. 77001. S a n A n to n io B ra n c h , S a n A n to n io , Tex. 78295. F e d e ra l R eserve B a n k o f S a n F ra n c isc o , S a n F ra n c isc o , C alif. 94120. L os A ngeles B ra n c h , Los A ngeles, C alif. 90051. P o r tla n d B ra n c h , P o rtla n d , O reg. 97208. S a lt L ak e C ity B ra n c h , S a lt L ak e C ity , U ta h 84110. S e a ttle B r a n c h , S e a ttle , W ash. 98124. § 3 0 6 .2 D e f in it io n s o f w o rd s a n d te r m s as u s e d in t h e s e r e g u la t io n s . (a) “Advance refunding offer” is an offer to a holder of a security, usually a y ear or m ore in advance of its call or m a tu rity date, to exchange it for an o th er security. (b) A “b ea rer” security is payable on its face a t m a tu rity or call for redem p tion before m a tu rity in accordance w ith its term s to “b earer.” T he ow nership is n o t recorded. Title to such a security m ay pass by delivery w ithout endorse m en t an d w ithout notice. A “coupon” se curity is a bearer security w ith in terest coupons attach ed . (c) “B ureau” refers to th e B ureau of th e Public Debt, Division of Securities O perations, W ashington, D.C. 20226. (d) “Call d ate” or “d ate of call” is nine digits sep arated by one hyphen, for th e date fixed in th e official notice of call example, 12-3456789. T he hyphens are published in th e F ed era l R e g is t e r as th e an essential p a rt of th e num bers and date on w hich th e obligor will m ake p ay m ust be included. (q) “T ransferable securities,” w hich m ent of th e security before m a tu rity in m ay be in eith er registered or bearer accordance w ith its term s. (e) “C ourt” m eans one w hich has ju form, refers to securities w hich m ay be risdiction over th e p arties an d th e sub sold on th e m ark et and tran sfe r of title accom plished by assignm ent an d delivery je ct m atter. (f) “D ep artm en t” refers to th e De if in registered form , or by delivery only if in bearer form. p a rtm e n t of th e T reasury. (r) “T reasu rer’s Office” refers to th e (g) “Face m a tu rity d a te ” is th e p ay m en t d ate specified in th e te x t of a Office of th e T reasu rer of th e U nited States, Securities Division, W ashington, security. (h) “Incom p eten t” refers to a person D.C. 20222. (s) “T reasury securities,” “T reasury under any legal disability except m i bonds,” “T reasury notes,” “T reasury cer nority. (i) “Jo in t ow ner” an d “jo in t ow ner tificates of indebtedness,” an d “T reasury ship” refer to any p erm itted form of bills,” or simply “securities,” “bonds,” “notes,” “certificates,” an d “bills,” u n ow nership by two or m ore persons. (j) “N ontransferable securities” are less otherw ise indicated by th e context, those issued only in registered form refer only to tran sferab le securities. w hich according to th e ir term s are p ay § 3 0 6 .3 T r a n s p o r ta tio n c h a r g e s a n d risk s able only to th e registered owners or in t h e s h ip m e n t o f se c u r itie s . recognized successors in title to th e ex T he following rules will govern tr a n s te n t and in th e m an n er provided in th e offering circulars or special applicable p o rtatio n to, from, an d between th e D e p a rtm e n t an d th e Federal Reserve banks regulations. (k) “P ay m en t” an d “redem ption,” u n an d branches of securities issued on or less otherw ise indicated by th e context, presented for authorized tran sactio n s: (a) T he securities m ay be presented or are used interchangeably fo r paym ent a t m a tu rity or p ay m en t before m atu rity received by th e owners or th eir agents in p u rsu an t to a call for redem ption in person. (b) Securities issued on original issue, accordance w ith th e term s of th e securi unless delivered in person, will be de ties. (1) “P rerefu n d in g offer” is a n offer tolivered by registered m ail or by o th er a holder of a security, usually w ithin th e m eans a t th e risk an d expense of th e year preceding its call or m a tu rity date, U nited S tates. (c) T he U nited S tates will assum e th e to exchange it for a n o th er security. (m) “R edem ption-exchange” is any risk an d expense of any tran sp o rta tio n of authorized redem ption of securities fo r securities w hich m ay be necessary be th e purpose of applying th e proceeds in tween th e Federal Reserve banks and paym ent for o th e r securities offered in branches an d th e T reasury. (d) Securities subm itted for any exchange. (n) A “registered” security refers to a tran sa ctio n a fte r original issue, if n ot security th e ow nership of w hich is regis presented in person, m ust be forw arded tered on th e books of th e D epartm ent. a t th e ow ner’s risk an d expense. I t is payable a t m a tu rity or call for re (e) B earer securities issued on tra n s dem ption before m a tu rity in accordance actions o th er th a n original issue will be w ith its term s to th e person in whose delivered by registered m ail, covered by nam e it is inscribed, or his assignee. insurance, a t th e ow ner’s risk an d ex (o) “Securities assigned in b lank” or pense, unless called for in person by th e “securities so assigned as to become in owner or his agent. Registered securities effect payable to b earer” refers to regis issued on such tran sactio n s will be de tered securities w hich are assigned by livered by registered m ail a t th e risk of, th e ow ner or his authorized rep resen ta b u t w ithout expense to, th e registered tive w ithout designating th e assignee. owner. Should delivery by o th er m eans Registered securities assigned sim ply to be desired, advance arran g em en ts should “The S ecretary of th e T reasu ry ” or in be m ade w ith th e official agency to w hich th e case of T reasury Bonds, Investm ent th e original securities were presented. Series B— 1975-80, to “T he S ecretary of Subpart B— Registration th e T reasury for exchange for th e cu r re n t Series EA or EO T reasury notes” § 3 0 6 . 1 0 G en era l. are considered to be so assigned as to T he reg istratio n used m ust express th e become in effect payable to bearer. actu al ow nership of a security an d m ay (p) “T axpayer identifying n u m b er” n ot include any restrictio n on th e a u m eans th e app ro p riate identifying n u m th o rity of th e owner to dispose of it in ber as required on ta x re tu rn s an d o th er any m anner, except as otherw ise spe docum ents subm itted to th e In te rn a l cifically provided in these regulations. Revenue Service, i.e., a n individual’s so T he T reasury D ep artm en t reserves th e cial security account num ber or a n em rig h t to tre a t th e reg istratio n as con ployer identification num ber. A social clusive of ownership. Requests fo r regis security account n um ber is composed of tratio n should be clear, accurate, and nine digits sep arated by two hyphens, complete, conform w ith one of th e form s for example, 123-45-6789; a n em ployer set fo rth in th is subpart, an d include identification num ber is composed of ap p ro p riate tax p ay er identifying n u m 4 bers.1 T he reg istratio n of all bonds owned by th e sam e person, organization, or fi duciary should be uniform w ith respect to th e nam e of th e owner and, in th e case of a fiduciary, th e description of th e fiduciary capacity. Individual owners should be designated by th e nam es by w hich they are ordinarily know n or un der w hich they do business, preferably including a t least one full given nam e. T h e nam e of an individual m ay be p re ceded by any applicable title, as, for ex am ple, “M rs.,” “Miss,” “Ms.,” “D r.,” or “Rev.,” or followed by a designation such as “M.D.,” “D.D.,” “S r.” o r “J r .” Any o th e r sim ilar suffix should be included w hen ordinarily used or w hen necessary to distinguish th e ow ner from a m em ber of his fam ily. A m arried w om an’s own given nam e, n o t th a t of h e r husband, m ust be used, for example, “M rs. M ary A. Jones,” n o t “Mrs. P ra n k B. Jones.” The address should include, w here ap propri ate, th e num ber an d street, route, or any oth er local fea tu re an d th e Zip Code. § 3 0 6 .1 1 F o r m s o f r e g is tr a tio n f o r tr a n s fe r a b le s e c u r itie s . registered in th e form s “Jo h n A. Doe and Mrs. M ary C. Doe, or eith er of th e m ” or “W illiam C. Doe o r H enry J. Doe, or eith er of th e m ” an d securities so as signed will be tre a te d as th o u g h th e w ords “or eith er of th e m ” do n o t appear in th e assignm ents. T he tax p ay er id en ti fying num ber of any of th e jo in t owners m ay be show n on securities registered in jo in t ow nership form . (1) W ith right of survivorship. I n th e nam es of two o r m ore individuals w ith rig h t of survivorship. Exam ples: J o h n A. Doe (123-45-6789) o r M rs. M ary C. Doe o r t h e su rv iv o r. J o h n A. D oe (123-45-6789) o r M rs. M a ry C. Doe o r M iss M a ry A n n Doe o r t h e su rv iv o rs o r su rv iv o r. J o h n A. Doe (123-45-6789) o r M rs. M ary C. Doe. J o h n A. D oe (123-45-6789) a n d M rs. M ary C. Doe. J o h n A. D oe (123-45-6789) a n d M rs. M ary C. Doe as J o in t t e n a n t s w ith r i g h t o f su rv iv o r s h ip a n d n o t a s t e n a n t s In co m m o n . Lim ited to husband an d w ife: J o h n A. Doe (123-45-6789) a n d M rs M ary C. Doe, as t e n a n t s b y t h e e n tir e tie s . R o b e rt C. S m ith , a s c u s to d ia n f o r Henjry L. B ro w n , a m in o r (1 2 3 -4 5 -6 7 8 9 ), u n d e r t h e law s o f G eo rg ia; C h. 48-3 , C ode o f G a. A n n o. (3 ) Incompetents not under guardian ship. R egistration in th e form “Jo h n A. Brown, a n incom petent (123-45-6789), un d er voluntary g u ardianship,” is p er m itted only on reissue a fte r a voluntary gu ard ian h as qualified for th e purpose of collecting interest. (See §§ 306.37(c) (2) an d 306.57(c)(2).) O therw ise, reg istra tio n in th e nam e of a n incom petent n o t u n d er legal g u ard ian sh ip is n o t authorized. (c) Executors, administrators, guard ians, and similar representatives or fi duciaries. A security m ay be registered in th e nam es of legally qualified execu tors, ad m in istrato rs, guardians, conser vators, or sim ilar representatives o r fidu ciaries of a single estate. T he nam es and capacities of all th e representatives or fiduciaries, as shown in th e ir letters of appointm ent, m u st be included in th e reg istratio n an d m ust be followed by a n adequate identifying reference to th e estate. Exam ples: T he form s of reg istratio n described J o h n S m ith , e x e c u to r o f w ill (o r a d m in is tr a below are authorized for tran sferab le (ii) Without right of survivorship. In t o r o f e s ta te ) o f H e n ry J . Jo n e s, d eceased securities: (12-3456789). th e nam es of two or m ore individuals in (a) Natural persons in their own right. such m an n er as to preclude th e rig h t of W illia m C. Jo n e s, g u a r d ia n (o r co n s e rv a to r, In th e nam es of n a tu ra l persons who are survivorship. E xam ples: e tc .) o f e s ta te o f J a m e s D. B ro w n , a m in o r n o t under any legal disability, in th e ir (o r a n in c o m p e te n t) (1 2 3 -4 5 -6 7 8 9). J o h n A. Doe (123-45-6789) a n d W illia m B. own right, substantially as follows: Doe a s t e n a n t s In co m m o n . (d) Life tenant under will. A security (1) One person. In th e nam e of one J o h n A. J o n e s a s n a t u r a l g u a r d ia n o f H e n ry m ay be registered in th e nam e of a life individual. Exam ples: B. Jo n e s, a m in o r, a n d R o b e rt C. J o n e s te n a n t followed by a n adequate id en tify J o h n A. D oe (1 2 3 -4 5 -6 7 8 9 ). (1 2 3 -4 5 -6 7 8 9 ), w ith o u t r i g h t o f s u rv iv o r ing reference to th e will. Exam ple: Mrs. M ary C. D oe (1 2 3-4 5 -6 7 8 9 ). M iss E liz a b e th J a n e Doe (1 2 3 -4 5 -6 7 8 9 ). An individual who is sole proprietor of a business conducted un d er a tra d e nam e m ay include a reference to th e trad e nam e. E xam ples: J o h n A. Doe, d o in g b u s in e s s as D oe’s H om e A p p lia n c e S to re (12-3456789). or J o h n A. Doe (1 2 3 -4 5 -6 78 9 ), d o in g b u sin e s s as D oe’s H o m e A p p lia n c e S to re . (2) Two or more persons— general. Securities will n o t be registered in th e n am e of one person payable on d ea th to an other, or in an y form w hich purports to authorize tra n sfe r by less th a n all th e persons nam ed in th e registration (or all th e survivors).8 Securities will n o t be 2 T ax p a y e r id e n tif y in g n u m b e r s a re n o t r e q u ir e d fo r fo re ig n g o v e rn m e n ts, n o n r e s id e n t a lie n s n o t e n g a g e d in t r a d e o r b u s in e s s w ith in t h e U n ite d S ta te s , I n te r n a tio n a l o rg a n iz a tio n s a n d fo re ig n c o r p o ra tio n s n o t e n g ag ed in t r a d e o r b u s in e s s a n d n o t h a v in g a n office o r p la c e o f b u s in e s s o r a fin a n c ia l o r p a y in g a g e n t w ith in t h e U n ite d S ta te s , a n d o th e r p e rso n s o r o rg a n iz a tio n s a s m a y b e ex e m p te d fro m f u r n is h in g s u c h n u m b e r s u n d e r r e g u la tio n s o f t h e I n t e r n a l R e v e n u e Service. 3 W arning. D ifferen ce B e tw e e n T ra n s fe ra b le T re a s u ry S e c u ritie s R e g is te re d In t h e N am es o f T w o o r M ore P e rso n s a n d U n ite d S ta te s S av in g s B o n d s i n C o o w n e rsh ip F o rm . T h e effect o f re g is te r in g T re a s u ry s e c u ritie s to w h ic h th e s e r e g u la tio n s a p p ly in t h e n a m e s o f tw o o r m o re p e rso n s differs d e cid ed ly fro m r e g is tr a tio n o f sa v in g s b o n d s In c o o w n e rsh ip fo rm . S av in g s b o n d s a r e v ir tu a lly re d e e m a b le o n d e m a n d a t t h e o p tio n o f e i t h e r co o w n er o n h is s ig n a tu r e alo n e . T ra n s fe ra b le T re a s u ry s e c u ritie s a re re d e e m a b le o n ly a t m a t u r i ty o r u p o n p r io r c a ll b y t h e S e c re ta ry o f t h e T re a s u ry . sh ip . L im ited to h u sband an d w ife: A n n e B. S m ith , life t e n a n t u n d e r t h e w ill o f A d am A. S m ith , d ecea sed (12-3456789). C h a rle s H. B ro w n (123-45-6789) a n d A n n R. B ro w n , as p a r t n e r s i n c o m m u n ity . T he life te n a n t will be considered a fiduciary. (b) Minors and incompetents— (1) (e) Private trust estates. A security Natural guardians of minors. A security m ay be registered in th e nam e an d title m ay be registered in th e nam e of a n a t of th e tru stee or trustees of a single duly u ra l guard ian of a m inor for whose co nstituted private tru st, followed by an estate no legal g u ard ian or sim ilar rep adequate identifying reference to th e resentativ e h as legally qualified. E x au th o rity governing th e tru st. Exam ples: am ple : J o h n J o n e s a n d B la n k T r u s t Co., A lb an y, N.Y., J o h n R . J o n e s a s n a t u r a l g u a r d ia n o f H en ry M. Jo n e s, a m in o r (123 -4 5 -67 8 9 ). E ith er p a re n t w ith whom th e m inor resides, or if he does n o t reside w ith eith er paren t, th e person who furnishes his chief support, will be recognized as his n a tu ra l g u ard ian an d will be con sidered a fiduciary. R eg istratio n in th e n am e of a m inor in his own rig h t as ow n e r or as jo in t owner is n o t authorized. Securities so registered, upon qualifica tion of th e n a tu ra l guardian, will be tre a te d as th o u g h registered in th e nam e of th e n a tu ra l g u ard ian in th a t capacity. (2) Custodian under statute authoriz ing gifts to minors. A security m ay be purchased as a gift to a m inor u n d er a gifts to m inors sta tu te in effect in th e S ta te in w hich eith er th e donor or th e m inor resides. T h e security should be reg istered as provided in th e sta tu te , w ith an identifying reference to th e sta tu te if th e reg istratio n does n o t clearly identify it. E xam ples: W illia m C. Jo n e s, a s c u s to d ia n fo r J o h n A. S m ith , a m in o r (12 3 -4 5 -6 7 8 9 ), u n d e r t h e C a lifo rn ia U n ifo rm G if ts t o M in o rs A ct. t r u s te e s u n d e r w ill o f S a r a h Jo n e s, d e ceased (12-3456789). J o h n Doe a n d R ic h a rd R oe, t r u s te e s u n d e r a g r e e m e n t w ith H e n ry J o n e s d a te d F e b r u a ry 9, 1970 (12-3456789). T he nam es of all trustees, in th e form used in th e tru s t in stru m en t, m u st be included in th e registration, except as follow s: (1) If th ere are several trustees desig n a te d as a b oard or authorized to a c t as a u nit, th e ir nam es should be om itted an d th e words “B oard of T ru stees” sub stitu te d for th e word “tru stees.” E x am ple : B o a rd o f T ru s te e s o f B la n k Co. R e tir e m e n t F u n d , u n d e r co llectiv e b a r g a in in g a g re e m e n t d a te d J u n e 30, 1970 (12-3456789). (2) If th e tru stees do n o t constitute a board or otherw ise ac t as a u nit, an d are eith er too num erous to be designated in th e inscription by nam es an d title, or serve for lim ited term s, some or all of th e nam es m ay be om itted. Exam ples: J o h n S m ith , H e n ry Jo n e s, e t al., t r u s te e s u n d e r w ill o f H e n ry J . S m ith , d ecea sed (12 3456789). 5 T ru s te e s u n d e r , w ill o f H e n ry J . S m ith , d e ceased (12-3456789). T ru s te e s o f R e tir e m e n t F u n d o f I n d u s t r i a l M a n u fa c tu r in g Co., u n d e r d ir e c to rs ’ r e so l u tio n o f J u n e 30, 1950 (12-3456789). (g) States, public bodies, and corpora tions and public officers. A security m ay be registered in th e nam e of a S ta te or county, city, town, village, school dis trict, or o th er political entity, public body (f) Private organizations ( corpora or corporation established by law (in tions, unincorporated associations and cluding a board, commission, adm inis partnerships). A security m ay be regis tratio n , au th o rity or agency) w hich is tered in th e nam e of any private corpora th e owner or official custodian of public tion, u nincorporated association, or p a r t funds, o th er th a n tru s t funds, or in th e nership, including a nom inee, w hich for full legal title of th e public officer having purposes of these regulations is trea te d custody. Exam ples: as th e owner. T he full legal nam e of th e S ta te o f M aine. organization, as set fo rth in its ch arter, T o w n o f R ye, N.Y. articles of incorporation, constitution, M a ry la n d S ta te H ig h w ay A d m in is tr a tio n . p artn e rsh ip agreem ent, or other a u T re a s u re r, C ity o f S p rin g field , 111. th o rity from w hich its powers are de T re a s u r e r o f R h o d e I s la n d — S ta te F o re stry Fund. rived, m ust be included in th e regis tra tio n and m ay be followed, if desired, (h) States, public officers, corporations by a reference to a p articu la r account or or bodies as trustees. A security m ay be fund, o th er th a n a tru st fund, in accord registered in th e title of a public officer ance w ith th e rules an d exam ples given or in th e nam e of a S tate or county or a below: public corporation or public body acting (1) A corporation. T he nam e of a busi as tru stee u nder express au th o rity of law. ness, fra tern a l, religious, or other private An appropriate reference to th e sta tu te corporation m ust be followed by descrip creating th e tru s t m ay be included in th e tive words indicating th e corporate sta tu s registration. Exam ples: unless th e term "corporation” o r th e ab In s u r a n c e C o m m issio n er o f P e n n sy lv a n ia , breviation “In c.” is p a rt of th e nam e or tr u s t e e f o r b e n e fit o f p o lic y h o ld e rs o f B la n k th e nam e is th a t of a corporation or as In s u r a n c e Co. (12 -3 4 56789), u n d e r Sec. sociation organized under Federal law, ------ , P a. S ta ts . such as a n atio n al bank or F ederal sav R h o d e I s la n d I n v e s tm e n t C o m m issio n , tr u s t e e o f G e n e ra l S in k in g F u n d u n d e r Ch. ings an d loan association. Exam ples: S m ith M a n u fa c tu r in g Co., a c o rp o ra tio n 3456789). T h e S ta n d a r d M a n u fa c tu r in g C orp. 3456789). J o n e s & B row n, In c .— D e p re c ia tio n A cct. 3456789). F ir s t N a tio n a l B a n k o f A lb em arle 3456789). A bco & Co., In c., a n o m in e e c o r p o ra tio n 3456789). ( 12 (12 (12 (12 (12 (2) An unincorporated association. T he n am e of a lodge, club, labor union, veteran s’ organization, religious society, or sim ilar self-governing organization w hich is not incorporated (w hether or n o t it is ch a rtered by or affiliated w ith a p a re n t organization w hich is incorpo rated ) m u st be followed by th e words “an unincorporated association.” Exam ples: A m e ric a n L eg io n P o s t No. ------ , D e p a r tm e n t o f t h e D.C., a n u n in c o r p o ra te d a s so c ia tio n (12-3456789). L ocal U n io n No. 100, B ro th e rh o o d o f L o co m o tiv e E n g in e e rs, a n u n in c o r p o ra te d a s so c ia t io n (12-3456789). Securities should no t be registered in th e nam e of an unincorporated association if th e legal title to its property in general, or th e legal title to th e funds w ith w hich th e securities are to be purchased, is held by trustees. In such a case th e securities should be registered in th e title of th e trustees in accordance w ith p ara g ra p h (e) of th is section. T he term "unincorpo rate d association” should n o t be used to describe a tru s t fund, a p artn e rsh ip or a business conducted un d er a trad e nam e. (3) A partnership. T he nam e of a p a r t nership m ust be followed by th e words “a p artn e rsh ip .” Exam ples: S m ith & B ro w n , a p a r tn e r s h ip (12-3456789). Acm e N o v elty Co., a lim ite d p a r tn e r s h ip (12 3456789). Abco & Co., a n o m in e e p a r tn e r s h ip (12 3456789). 35, G en . L aw s o f R.I. S ta te o f C o lo rad o in t r u s t f o r C o lo rad o S u r p lu s P ro p e rty A gency. § 3 0 6 .1 2 E r ro rs in r e g is tr a tio n . If a n erroneously inscribed security is received, it should n o t be altered in any respect, b u t th e B ureau, a F ederal R e serve bank or branch, or th e T re asu re r’s Office should be fu rn ish ed full p a rtic u lars concerning th e erro r an d asked to fu rnish instructions. § 3 0 6 .1 3 N o n t r a n s f e r a b le s e c u r itie s . Upon authorized reissue, T reasury Bonds, Investm en t Series B— 1975-80, m ay be registered in th e form s set fo rth in § 306.11. any tim e. Securities p resented for tr a n s fer or for exchange fo r b earer securities of th e sam e issue m u st be received by th e B ureau n o t less th a n 1 full m o n th before th e d ate on w hich th e securities m atu re or become redeem able p u rsu an t to a call for redem ption before m atu rity . Any se cu rity so p resented w hich is received too late to comply w ith th is provision will be accepted for paym ent only. (b) Closing of transfer books. T he tra n sfe r books are closed for 1 full m o n th preceding in terest paym ent dates an d call or m atu rity dates. If th e date set for closing of th e tra n sfe r books falls on S aturday, Sunday, or a legal holiday, th e books will be closed as of th e close of business on th e la st business day p re ceding th a t date. T he books are reopened on th e first business day following th e date on w hich in terest falls due. Regis tered securities w hich have n o t m a tu red or been called, subm itted for tran sfe r, reissue, or exchange for coupon securi ties, an d coupon securities w hich have n ot m atu red or been called, subm itted fo r exchange for registered securities, w hich are received d uring th e period th e books for th a t loan are closed, will be processed on or a fte r th e d ate such books are reopened. If registered securities are received for tra n sfe r or exchange for b earer securities, or coupon securities are received fo r exchange for registered securities, during th e tim e th e books are closed for pay m en t of final in terest a t m a tu rity or call, unless otherw ise p ro vided in th e offering circular or notice of call, th e following action will be tak en : (1) P aym ent of final in terest will be m ade to th e registered owner of record on th e d ate th e books were closed. (2) P ay m en t of principal will be m ade to (i) th e assignee u n d er a proper assignm ent of th e securities, or (ii) if th e securities have been assigned for exchange for b earer securities, to th e registered owner of record on th e d ate th e books were closed. § 3 0 6 .1 6 E x c h a n g e s o f r e g is te r e d s e c u ritie s. Subpart C— Transfers, Exchanges and Reissues No assignm ents will be required for (a) authorized denom inational ex changes of registered securities fo r like (a) General. T he tra n sfe r of regis securities in th e sam e nam es an d form s tered securities should be m ade by as of reg istratio n an d (b) redem ptionsignm ent in accordance w ith S u b p art F exchanges, or prerefundings, or advance of this p art. T ran sferab le registered se refundings in th e sam e nam es an d form s curities are eligible for denom inational as ap p ear in th e reg istratio n or assign exchange an d exchange for b earer se m ents of th e securities surrendered. curities. B earer securities are eligible fo r denom inational exchange, an d w hen so § 3 0 6 .1 7 E x c h a n g e s o f r e g is te r e d s e c u r itie s f o r c o u p o n se c u r itie s . provided in th e offering circular, are R egistered securities subm itted for eligible for exchange for registered se curities. Specific in stru ctio n s for issu exchange for coupon securities should ance an d delivery of th e new securities, be assigned to “T he S ecretary of th e signed by th e owner or his authorized T reasury for exchange for coupon se representative, m ust accom pany th e se curities to be delivered to (inserting th e curities presented. (Form PD 3905 or PD nam e an d address of th e person to whom 1827, as appropriate, m ay be used.) D e delivery of th e coupon securities is to nom inational exchanges, exchanges of be m a d e ).” Assignm ents to “T he S ecre T reasury Bonds, In v estm en t Series B— ta ry of th e T reasury for exchange for 1975-80, for th e c u rre n t series of EA coupon securities,” or assignm ents in or EO 1 l/z percen t 5-year T reasury notes, blank will also be accepted. T he coupon and optional redem ption of bonds a t p a r securities issued upon exchange will as provided in § 306.28 m ay be m ade a t have all u n m atu red coupons attach ed . § 3 0 6 .1 5 T r a n s fe r s a n d e x c h a n g e s s e c u r itie s — c lo s e d p e r io d s. of 6 § 3 0 6 .1 8 E x c h a n g e s o f c o u p o n se c u r itie s f o r r e g is te r e d se c u r itie s . Coupon securities presented for ex change for registered securities should have all m atu red in terest coupons de tached. All u n m atu red coupons should be attached, except th a t if presented w hen th e tra n sfe r books are closed (in w hich case th e exchange will be effected on or a fte r th e date on w hich th e books are reopened), th e next m atu rin g cou pons should be detached and held for collection in ordinary course w hen due. If any coupons w hich should be attach ed are missing, th e securities m ust be ac com panied by a rem ittance in an am ount equal to the face am ount of th e missing coupons. The new registered securities will bear in terest from th e in terest pay m ent date nex t preceding the date on w hich the exchange is made. § 3 0 6 .1 9 D e n o m in a t io n a l e x c h a n g e s o f c o u p o n se c u r itie s . All m a tu red in terest coupons and all u n m atured coupons likely to m a tu re be fore an exchange can be com pleted should be detached from securities p re sented for denom inational exchange. All u n m atured coupons should be attached. If any are missing, th e securities m ust be accom panied by a rem ittance in an am ount equal to th e face am ount of the missing coupons. The new coupon securi ties will have all unm atured coupons attached. or th e ir successors. Bonds presented for reissue m ust be accom panied by evidence of entitlem ent. § 3 0 6 .2 2 E x c h a n g e o f T r e a su r y B o n d s , I n v e s t m e n t S e r ie s B —1 9 7 5 — 0 . 8 Bonds of th is series presented for ex change for IV 2 percent 5-year T reasury notes m ust bear duly executed assign m ents to “T he S ecretary of th e T reasury for exchange for th e cu rren t series of EA or EO T reasury notes to be delivered to (inserting th e nam e an d address of th e person to whom th e notes are to be d e l i v e r e d ) T h e notes will bear th e April 1 or O ctober 1 date n ex t preceding th e date th e bonds, duly assigned w ith supporting evidence, if necessary, are re ceived by th e B ureau or a Federal R e serve B ank or B ranch. In te re st accrued a t the ra te of 2% percent on th e bonds surrendered from th e nex t preceding in terest paym ent d ate to th e d ate of ex change will be credited, and in terest a t the ra te of IV2 percen t on th e notes for the sam e period will be charged and th e difference will be paid to th e owner. Subpart D— Redemption or Payment § 3 0 6 .2 5 P r e s e n t a t io n a n d su r r e n d e r . (a) General. Securities, w hether in registered or bearer form, a re payable in regular course of business a t m a tu rity unless called for redem ption before m a tu rity in accordance w ith th e ir term s, in w hich case they will be payable in reg u la r course of business on th e date of § 3 0 6 .2 0 R e is s u e o f r e g is te r e d tr a n s f e r call. T he S ecretary of th e T reasury m ay a b le se c u r itie s . provide for th e exchange of m atu rin g A ssignm ents are n o t required for re or called securities, or in advance of call issue of registered transferable securities or m aturity , m ay afford owners th e op in th e nam e(s) of (a) th e surviving portunity of exchanging a security for jo in t ow ner(s) of securities registered in an o th er security p u rsu an t to a p rere th e nam es of or assigned to two or more funding or a n advance refunding offer. persons, unless th e registration or as R egistered securities should be presented signm ent includes words w hich preclude and surrendered fo r redem ption to th e th e rig h t of survivorship, (b) a succeed Bureau, a F ederal Reserve bank or ing fiduciary or other lawful successor, branch, or th e T reasu rer’s Office, and (c) a rem ainderm an, upon term ination bearer securities to a F ederal Reserve of a life estate, (d) an individual, cor b ank or b ran ch or th e T reasu rer’s Office/ poration or unincorporated association No assignm ents or evidence in support whose nam e has been legally changed, of assignm ents will be required by or (e) a corporation or unincorporated as on behalf of th e registered owner or a s sociation w hich is th e law ful successor signee for redem ption for his or its ac to an o th er corporation or unincorporated count, or fo r redem ption-exchange, or association, and (f) a successor in title exchange p u rsu an t to a prerefunding or to a public officer o r body. Evidence of a n advance refunding offer, if th e new survivorship, succession, or change of securities are to be registered in exactly nam e, as appropriate, m ust be furnished. th e sam e nam es an d form s as appear in T he appropriate taxpayer identifying th e registrations or assignm ents of th e num ber also m ust be furnished if the securities surrendered. To th e ex ten t a p reg istration of th e securities subm itted propriate, these rules also apply to does n o t include such num ber for the securities registered in th e titles of public person or organization to be nam ed on officers who are official custodians of th e reissued securities. public funds. (b) “ Overdue" securities. If a bearer § 3 0 6 .2 1 R e is s u e o f n o n tr a n s fe r a b le s e security or a registered security assigned cu r itie s. in blank, or to bearer, or so assigned as T reasury Bonds, Investm ent Series B - to become in effect payable to bearer, is 1975-80, m ay be reissued only in the presented an d surrendered for redem p nam es of (a) law ful successors in title, tion a fte r it h as become overdue, th e (b) th e legal representatives or d istribu S ecretary of th e T reasury will ordinarily tees of a deceased ow ner’s estate, or the require satisfactory proof of ownership. distributees of a tru s t estate, an d (c) (Form PD 1071 m ay be used.) A security S tate supervisory authorities in p u rsu ance of any pledge required of th e owner 4 See § 306.28 fo r p r e s e n ta tio n a n d s u r u n d er S ta te law, or upon term ination of r e n d e r o f b o n d s e lig ib le fo r u se in p a y m e n t th e pledge in th e nam es of th e pledgors o f F e d e ra l e s ta te tax es. shall be considered to be overdue- afte r th e lapse of th e following periods of tim e from its face m a tu rity : (1) One m o n th for securities issued for a term of 1 year or less. (2) T hree m onths for securities is sued for a term of m ore th a n 1 year b u t n ot in excess of 7 years. (3) Six m onths for securities issued for a term of m ore th a n 7 years. § 3 0 6 .2 6 R e d e m p tio n o f r e g is te r e d s e c u r itie s a t m a tu r ity , u p o n p r io r c a ll, o r f o r p r e r e f u n d in g or a d v a n c e r e f u n d in g . R egistered securities presented an d surrendered for redem ption a t m atu rity or p u rsu an t to a call for redem ption be fore m atu rity need n o t be assigned, u n less th e owner desires th a t paym ent be m ade to some oth er person, in w hich case assignm ents should be m ade to “The S ecretary of th e T reasury for redem p tion for th e account of (inserting nam e an d address of person to whom paym ent is to be m a d e ).” Specific instru ctio n s for th e issuance an d delivery of th e redem p tion check, signed by th e owner or his authorized representative, m ust accom pany th e securities, unless included in th e assignm ent. (Form PD 3905 m ay be used.) P aym ent of th e principal will be m ade eith er (a) by check draw n on th e T reasu rer of th e U nited S tates to th e order of th e person en titled an d m ailed in accordance w ith th e in stru ctio n s re ceived, or (b) upon ap p ro p riate request, by crediting th e am ount in a m em ber b an k ’s account w ith th e F ederal Reserve B ank of its D istrict. Securities presented for prerefunding or advance refunding should be assigned as provided in th e prerefunding or advance refunding offer. § 3 0 6 .2 7 R e d e m p tio n o f b e a r e r se c u r i tie s at m a tu r ity , u p o n p r io r c a ll, o r f o r a d v a n c e r e f u n d in g o r p r e r e f u n d in g . All in terest coupons due an d payable on or before th e d ate of m atu rity or date fixed in th e call for redem ption before m atu rity should be detached from cou pon securities presented for redem ption an d should be collected separately in reg u lar course. All coupons bearing dates subsequent to th e date fixed in a call for redem ption, or offer of prerefunding or advance refunding, should be left a t tached to th e securities. If any such cou pons are missing, th e full face am ount thereof will be deducted from th e p ay m en t to be m ade upon redem ption or the p rerefunding or advance refunding a d ju stm en t unless satisfactory evidence of th e ir d estruction is subm itted. Any am ounts so deducted will be held in th e D ep artm en t to provide for ad ju stm en ts or refunds in th e event it should be de term ined th a t th e missing coupons were subsequently presented or th e ir d estru c tio n is la te r satisfactorily established. In th e absence of o th er instructions, p ay m en t of bearer securities will be m ade by check draw n to th e order of th e person p resenting an d surren d erin g th e securi ties an d m ailed to him a t h is address, as given in th e advice accom panying th e securities. (Form PD 3905 m ay be used.) A F ederal Reserve bank, upon appropri 7 (ii) Partnerships. Bonds held a t th e th e la st preceding in terest becam e due, tim e of th e decedent’s d e a th by a p a r t b u t does include th e day on w hich th e nership in w hich he h a d a n in terest will nex t succeeding in terest p aym ent is due. be deemed to have m et th e above con A fractio n al p a rt of a n in terest period ditions to th e ex ten t of his fractio n al does n o t include th e day as of w hich th e share of th e bonds so held p ro portionate securities were issued or th e day on § 3 0 6 .2 8 O p tio n a l r e d e m p tio n o f T r e a s to his in terest in th e assets of th e which th e la st preceding in terest p ay u r y b o n d s a t p a r ( b e f o r e m a tu r ity o r m en t becam e due, b u t does include th e partnership. c a ll r e d e m p tio n d a t e ) a n d a p p lic a (iii) Trusts. Bonds held in tru s t a t day as of w hich th e tran sactio n te rm i tio n o f t h e p r o c e e d s i n p a y m e n t o f F e d e r a l e s ta te ta x e s. th e tim e of th e decedent’s d ea th will be n atin g th e accrual of in terest is effected. T he 29th of F ebruary in a leap year is (a) General. T reasury bonds to be re deemed to have m et th e above conditions included w henever it falls w ithin eith er in a n am ount n o t to exceed th e am o u n t deemed a t p ar for th e purpose of apply a full in terest period or a fractio n al p a rt ing th e en tire am ount of principal and of th e F ederal estate ta x (a) if th e tru st thereof.7 actually te rm in ated in favor of th e deaccrued in terest to paym ent of th e F ed eral estate ta x on a decedent’s e s ta te 6 cendent’s estate, or (b) if th e tru stee is § 3 0 6 .3 6 T e r m in a t io n o f in te r e st. m ust be presented an d surrendered to a required to pay th e decedent’s F ederal Securities will cease to bear in terest F ederal Reserve bank or b ranch or to the estate ta x un d er th e term s of th e tru st on th e d ate of th e ir m a tu rity unless they in stru m en t or otherw ise, o r (c) to th e Bureau. They should be accom panied by have been called for redem ption before Form PD 1782, fully com pleted an d duly ex ten t th e debts of th e decedent’s estate, m a tu rity in accordance w ith th e ir term s, including costs of ad m in istratio n , S tate executed in accordance w ith th e in stru c or are presented an d su rrendered for re tions on th e form , and evidence as de inh eritan ce and F ederal estate taxes, ex dem ption-exchange or exchange p u r ceed th e assets of his estate w ithout re scribed therein. Redem ption will be su a n t to a n advance refunding or p re m ade a t p a r plus accrued in terest from gard to th e tru s t estate. refunding offer, in w hich case they will (c) Transactions after oumer’s death.cease to bear in terest on th e date of the last preceding in terest paym ent date to th e d ate of redem ption, except th a t if No tran sactio n s involving changes of call, or th e exchange date, as th e case registered bonds are received by a F ed ow nership m ay be conducted a fte r an m ay be. eral Reserve bank or b ranch or th e ow ner’s d ea th w ithout affecting th e eligi B ureau w ithin 1 m onth preceding an in bility of th e bonds for redem ption a t p a r § 3 0 6 . 3 7 In te r e s t o n r e g is te r e d se c u r itie s . (a) Method of payment. T he in terest terest paym ent date for redem ption for application of th e proceeds to p ay before th a t date, a deduction will be m ade m en t of th e F ederal estate tax. T ra n s on registered securities is payable by actions involving no changes of ow ner checks draw n on th e T reasu rer of th e for in terest from th e date of redem ption to th e in terest paym ent date, an d a check ship w hich m ay be conducted w ithout U nited S tates to th e order of th e regis for th e full 6 m onths’ in terest will be affecting eligibility are (1) exchange of tered owners, except as otherw ise p ro paid in due course. T he proceeds of re bonds for those of lower denom inations vided herein. In te re st checks are p re dem ption will be deposited to th e credit w here th e bonds exceed th e am ount of p ared by th e D ep artm en t in advance of of th e In te rn a l Revenue Service C enter th e ta x and are n o t in th e lowest a u th e in terest paym ent d ate an d are ordi designated in Form PD 1782, and the thorized denom inations, (2) exchange n arily m ailed in tim e to reach th e a d representative of th e estate will be n o ti of registered bonds fo r coupon bonds, dressees on th a t date. In te re s t on a reg fied of th e deposit. A form al receipt m ay (3) exchange of coupon bonds for bonds istered security w hich has n o t m atu red be obtained upon request addressed to the registered in th e nam es of th e rep resen t o r been called an d w hich is presented for atives of th e estate, (4) tra n sfe r of any tran sa ctio n d uring th e period th e Center. bonds from th e owner o r his nom inee to (b) Conditions. T he bonds presented th e nam es of th e representatives of th e books for th a t loan are closed will be for redem ption un d er th is section m ust ow ner’s estate, and (5) purchases by or paid by check draw n to th e order of th e have (1) been owned by the decedent a t for th e account of a n ow ner p rio r to his registered owner of record. Upon receipt th e tim e of his d eath and (2) thereupon death, held in book-entry form , and of notice of th e d eath or incom petency co nstituted p a rt of his estate, as d eter th e re a fte r converted to definitive bonds. of a n individual nam ed as registered m ined by th e following rules in th e case However, any such tran sactio n s m u st be owner, a change in th e n am e or in th e of jo in t ownership, partn ersh ip , and tru st explained on Form PD 1782 or in a sup sta tu s of a p artn ersh ip , corporation, or u n incorporated association, th e removal, holdings: plem ental statem en t. resignation, succession, or d eath of a (i) Joint ownerships. Bonds held by fiduciary or trustee, delivery of in terest Subpart E— Interest th e decedent a t th e tim e of his d ea th checks will be w ithheld pending receipt in jo in t ow nership w ith an o th er person § 3 0 6 . 3 5 C o m p u ta tio n o f in te r e st. an d approval of evidence showing who or persons will be deem ed to have m et T he in terest on T reasury securities is en titled to receive th e in terest checks. th e above conditions eith er (a) to th e I f th e inscriptions on securities do n o t ex ten t to w hich th e bonds actually be accrues an d is payable on a sem iannual clearly identify th e owners, delivery of basis unless otherw ise provided in th e cam e th e property of th e decedent’s circular offering th em fo r sale or ex in terest checks will be w ithheld pending estate, or (b ) in a n am ount n o t to exceed change. I f th e period of accrual is an reissue of th e securities in th e correct th e am o unt of the F ederal estate ta x exact 6 m onths, th e in terest accrual is registration. T he final in stallm en t of in w hich th e surviving jo in t ow ner or own a n exact one-h alf y ea r’s in terest w ith terest, unless otherw ise provided in th e offering circular or notice of call, will be ers is required to pay on account of such out regard to th e num ber of days in th e paid by check draw n to th e ord er of th e bonds an d o th e r jointly held property.* period. I f th e period of accrual is less registered ow ner of record an d m ailed in th a n a n exact 6 m onths, th e accrued advance of th e in terest p aym ent date in 5 C e rta in Issu es o f T re a s u ry b o n d s a re r e in terest is com puted by determ ining th e tim e to reach th e addressee on or about daily ra te of accrual on th e basis of th e th a t date. In te re s t on securities p re d e e m a b le a t p a r a n d a c c ru e d I n te r e s t u p o n exact num ber of days in th e full in terest sented fo r prerefunding or advance re t h e d e a th o f t h e o w n er, a t t h e o p tio n o f t h e re p re s e n ta tiv e of, o r If n o n e , t h e p e rso n s period an d m ultiplying th e daily ra te by funding will be ad ju sted as provided in e n t i t l e d to , h is e s ta te , fo r t h e p u rp o s e of th e exact num ber of days in th e fra c th e prerefunding or advance refunding h a v in g t h e e n tir e p ro ceed s a p p lie d in p a y tional period fo r w hich in terest h as ac offer. m e n t o f t h e F e d e ra l e s ta te ta x o n t h e d e tually accrued. A full in terest period does c e d e n t’s e s ta te , i n a c c o rd a n c e w ith t h e te r m s 7 T h e a p p e n d ix t o t h i s s u b p a r t c o n ta in s a no t include th e day as of w hich th e se of t h e o fferin g c ir c u la r s c ite d o n t h e face o f t h e b o n d s. A c u r r e n t l i s t o f elig ib le Issu es curities were issued or th e day on w hich c o m p le te e x p la n a tio n o f t h e m e th o d o f c o m ate request, m ay m ake paym ent to a m em ber bank from w hich bearer securi ties are received by crediting th e am ount of th e proceeds of redem ption to th e m em ber b ank’s account. m a y b e o b ta in e d f ro m a n y F e d e ra l R eserve b a n k o r b r a n c h , th e B u r e a u o f t h e P u b lic D eb t, o r t h e T re a s u r e r ’s Office. ' S u b s ta n tia lly t h e sa m e r u le a p p lie s to c o m m u n ity p r o p e rty e x c e p t t h a t u p o n t h e d e a th o f e i t h e r sp o u se b o n d s w h ic h c o n s tl- t u t e p a r t o f t h e c o m m u n ity e s ta te a re d e e m e d t o m e e t t h e r e q u ire d c o n d itio n s to t h e e x t e n t o f o n e - h a lf o f e a c h lo a n a n d issu e of b o n d s. p u t i n g I n te r e s t o n a s e m ia n n u a l b a s is o n T re a s u ry b o n d s, n o te s , a n d c e rtific a te s o f i n d e b te d n e s s, a n d a n o u tlin e o f t h e m e th o d o f c o m p u tin g t h e d is c o u n t r a te s o n T re a s u ry b ills. Also in c lu d e d a re ta b le s o f c o m p u ta tio n o f i n te r e s t o n s e m ia n n u a l a n d a n n u a l b asis. 8 (b) Change of address. To assure p a r a t m atu rity , is represented by th e tim ely delivery of in terest checks, owners difference between th e purchase price should prom ptly notify th e B ureau of an d th e p ar value, an d no coupons are any change of address. (Form PD 345 attached. m ay be used.) The notification m ust be Subpart F— Assignments of Registered signed by th e registered owner or a jo in t Securities— General owner or an authorized representative, an d should show th e ow ner’s taxpayer § 3 0 6 .4 0 E x e c u t io n o f a s s ig n m e n t s o r s p e c ia l e n d o r s e m e n ts . identifying num ber, th e old an d new a d dresses, the serial num ber an d denom ina (a) Execution of assignments. T he as tio n of each security, th e titles of the signm ent of a registered security should securities (for exam ple: 4*4 percent be executed by th e owner or his a u th o r T reasury Bonds of 1987-92, dated Au ized representative in th e presence of an gust 15, 1962), and th e registration of officer authorized to certify assignm ents. each security. N otifications by attorneys All assignm ents m u st be m ade on th e in fact, trustees, or by th e legal rep re backs of th e securities, unless otherw ise sentatives of th e estates of deceased, in authorized by th e Bureau, a F ederal R e com petent, or m inor owners should be serve bank or branch, or th e T reasu rer supported by proof of th e ir authority, of th e U nited S tates. An assignm ent by unless, in th e case of trustees or legal m ark (X) m u st be w itnessed n o t only representatives, they are nam ed in the by a certifying officer b u t also by a t least registration. one other person, who should add an (c) Collection of interest checks— (1) endorsem ent substantially as follows: General. In terest checks m ay be collected “W itness to signature by m ark ,” followed in accordance w ith th e regulations gov by his sig n atu re an d address. erning th e endorsem ent an d paym ent of (b) Special endorsement in lieu of as G overnm ent w arra n ts and checks, w hich signments. A security m ay be presented are contained in th e cu rren t revision of w ithout assignm ent for any authorized D epartm ent C ircular No. 21 (P a rt 360 of tran sa ctio n by a financial in stitu tio n th is c h a p te r). w hich is (1) a m em ber of th e Federal (2) By voluntary guardians of incomReserve System , (2) a m em ber of th e petents. In te re st checks draw n to the F ederal Home Loan B ank System , or (3) order of a person who h as become in insured by th e F ederal Deposit In su ran ce com petent and for whose estate no legal Corporation, provided full instructions g u ardian or sim ilar representative has a re furnish ed as to th e tran sa ctio n de been appointed should be retu rn ed to the sired and th e security bears th e endorse B ureau w ith a full explanation of the m ent, under th e official seal of th e circum stances. For collection of interest, institutio n , as follows: th e D epartm ent will recognize th e rela P re s e n te d i n a c c o rd a n c e w ith in s tr u c tio n s tive responsible for th e incom petent’s o f t h e o w n e r (s ) . care and support or some other person A b sence o f a s s ig n m e n t g u a r a n te e d . as voluntary guardian for th e incom petent. (Application m ay be m ade on (N am e o f fin a n c ia l Form PD 1461.) in s titu tio n ) (d) Nonreceipt, loss, theft, or destruc B y -------------------------------------tion of interest checks. If a n in terest (S ig n a tu r e a n d t i t l e o f check is not received w ithin a reasonable officer) period a fte r an in terest paym ent date, (D a te ) th e B ureau should be notified. Should a check be lost, stolen, or destroyed a fte r T his form of endorsem ent of a security receipt, th e Office of th e T reasurer of the will be an unconditional g u aran tee to U nited States, Check Claims Division, th e D epartm en t of th e T reasury th a t th e W ashington, D.C. 20227, should be n o ti in stitu tio n is acting as atto rn ey in fact fied. N otification should include th e nam e for th e registered owner, or his assignee, an d address of th e owner, his taxpayer under proper au th o rizatio n and th a t th e identifying num ber, and th e serial n u m ber, denom ination, and title of th e se officer is duly authorized to act. curity upon w hich th e in terest was pay § 3 0 6 .4 1 F o r m o f a s s ig n m e n t. able. If th e check is subsequently re Registered securities m ay be assigned ceived or recovered, th e la tte r office in blank, to bearer, to a specified tra n s should also be advised. feree, to th e S ecretary of th e T reasury for exchange for coupon securities, or § 3 0 6 .3 8 I n t e r e s t o n b e a r e r se c u r itie s . Unless the offering circular an d notice to th e S ecretary of th e T reasury for re of call provide otherwise, in terest on cou dem ption or for exchange for o th er se pon securities is payable in regular course curities offered a t m atu rity , upon call or of business upon presentation and su r p u rsu an t to an advance refunding or ren der of th e in terest coupons as they prerefunding offer. Assignm ents to “The m ature. Such coupons are payable a t any S ecretary of th e T reasury,” “T he Sec F ederal Reserve bank or branch, or the reta ry of th e T reasury fo r tra n sfe r,” or T re asu re r’s Office.8 In te re st on T reasury “T he S ecretary of th e T reasury for ex bills, an d any o th er bearer securities change” will n o t be accepted unless sup plem ented by specific instru ctio n s by or w hich m ay be sold and issued on a dis in behalf of th e owner. count basis and w hich are payable a t § 3 0 6 .4 2 8 B a n k in g i n s t i t u t i o n s w ill u s u a lly c a s h th e c o u p o n s w ith o u t c h a rg e as a n a c c o m m o d a t i o n to t h e i r c u s to m e rs . A lte r a tio n s a n d e r a su r e s. If a n altera tio n or erasure h as been m ade in an assignm ent, th e assignor should ap p ear before an authorized cer tifying officer an d execute a new assign m en t to th e sam e assignee. If th e new as signm ent is to o th er th a n th e assignee whose nam e h as been altered or erased, a disclaim er from th e first-n am ed as signee should be obtained. Otherwise, a n affidavit of explanation by th e person responsible for th e alteratio n or erasure should be subm itted for consideration. § 3 0 6 .4 3 V o id a n c e o f a s s ig n m e n ts . An assignm ent of a security to or for th e account of an o th er person, n o t com pleted by delivery, m ay be voided by a disclaim er of in terest from th a t person. T his disclaim er should be executed in th e presence of a n officer authorized to certify assignm ents of securities. Unless otherw ise authorized by th e B ureau, a Federal Reserve bank or branch, or th e T reasu rer of th e U nited S tates, th e dis claim er m u st be w ritten, typed, or stam ped on th e back of th e security in substantially th e following form : T h e u n d e r s ig n e d as a ssig n ee o f t h is s e c u r ity h e re b y d isc la im s a n y in te r e s t h e re in . ( S ig n a tu r e ) I c e r tify t h a t th e a b o v e -n a m e d p e rso n as d escrib ed , w h ose id e n tity is w ell k n o w n o r p ro v e d to m e, p e rso n a lly a p p e a re d b e fo re m e t h e ________ d ay o f _________________________ (M o n th a n d y ear) a t -------------------------------------------------------- a n d (Place) sig n e d t h e above d isc la im e r of In te re s t. (se a l) ____________________________________________ (S ig n a tu re a n d official d e s ig n a tio n of c e rtify in g officer) I n th e absence of a disclaimer, an affi davit or affidavits should be subm itted for consideration explaining why a dis claim er cannot be obtained, reciting all o ther m aterial facts and circum stances relatin g to th e tran saction , including w hether or n o t th e security was delivered to th e person nam ed as assignee and w hether or n o t th e affiants know of any basis for th e assignee claim ing any right, title, or in terest in th e security. A fter an assignm ent has been voided, in order to dispose of th e security, an assignm ent by or on behalf of th e owner will be required. § 3 0 6 .4 4 D is c r e p a n c ie s in n a m e s . T he D epartm ent will ordinarily re quire an explanation of discrepancies in the nam es w hich appear in inscriptions, assignm ents, supporting evidence or in th e signatures to any assignm ents. (Form PD 385 m ay be used for th is purpose.) However, w here th e variations in th e nam e of the registered owner, as in scribed on securities of th e sam e or d if feren t issues, are such th a t both may properly represent th e sam e person, for example, “J. T. S m ith” an d “Jo h n T. Sm ith,” no proof of identity will be re quired if th e assignm ents are signed ex actly as th e securities are inscribed and are duly certified by th e sam e certifying officer. § 3 0 6 .4 5 O fficer s a u th o r iz e d to c e r tify a s s ig n m e n ts. (a) Officers authorized generally. T he following persons are authorized to act as certifying officers for th e purpose of 9 certifying assig n m en ts of, or form s w ith respect to, securities: (1) Officers an d employees of banks an d tru s t com panies incorporated in th e U nited S tates, its territories or posses sions, or th e Com m onw ealth of P uerto Rico, F ederal Savings an d Loan Associa tions, or o th er organizations w hich are m em bers of th e F ederal Home Loan B ank System, who have been authorized to: (i) G enerally bind th e ir respective in stitutions by th e ir acts, (ii) unqualifiedly g u arantee signatures to assignm ents of securities, or (iii) expressly certify a s signm ents of securities. (2) Officers of F ederal Reserve banks and branches. (3) Officers of F ederal L and Banks, F ederal In term ed iate C redit Banks and Banks for Cooperatives, th e C entral B ank fo r Cooperatives, and F ederal Home Loan Banks. (4) U.S. A ttorneys, Collectors of Cus toms, and Regional Commissioners, D is tric t D irectors, an d Service C enter Directors, In te rn a l Revenue Service. (5) Judges and Clerks of U.S. Courts. (b) Authorized officers in foreign coun tries. T he following are authorized to certify assignm ents in foreign coun tries: (1) U.S. diplom atic or consular rep re sentatives. (2) M anagers, assista n t m anagers and o th er officers of foreign branches of banks or tru s t com panies incorporated in th e U nited S tates, its territo ries or possessions, or th e Com m onw ealth of P u erto Rico. (3) N otaries public and other officers authorized to adm inister oaths. T he of ficial position an d au th o rity of any such officer m ust be certified by a U.S. diplo m atic or consular representative under seal of his office. (c) Officers having limited authority. T he following are authorized to certify assignm ents to th e ex ten t set fo rth in connection w ith each class of officers: (1) Postm asters, acting postm asters, assistan t postm asters, inspectors in charge, chief and assistan t chief ac countants, and superintendents of s ta tions of any post office, notaries public an d justices of th e peace in th e U nited S tates, its territo ries and possessions, th e Com m onw ealth of P uerto Rico and th e C anal Zone, b u t only for assignm ent of securities for redem ption for th e account of th e assignor, or for redem ption ex change, or p u rsu an t to an advance re funding or prerefunding offer for other securities to be registered in his nam e, or in his nam e w ith a jo in t owner. The sig nature of any post office official, other th a n a postm aster, m ust be in th e fol lowing form : “Jo h n A. Doe, P ostm aster, by R ichard B. Roe, S u perintendent of S tatio n .” (2) Commissioned officers and w arra n t officers of th e Armed Forces of the U nited S tates for assignm ent of securi ties of any class for any authorized transaction, b u t only w ith respect to a s signm ents executed b y : (i) Arm ed Forces personnel and civilian field employees, an d (ii) m em bers of th e fam ilies of such personnel or civilian employees. (d) Special provisions for certifying assignments. T he Com missioner of th e Public Debt, th e Chief of th e Division of Securities O perations, any F ederal R e serve ban k o r b ranch, or th e T reasu rer of th e U nited S tates, is authorized to m ake special provisions fo r any case or class of cases. § 3 0 6 .4 6 D u t ie s a n d r e s p o n s ib ilit ie s o f c e r t if y in g o ffic e r . A certifying officer m u st require exe cution of a n assignm ent, or a form w ith respect to securities, in his presence a fte r h e has established th e id en tity of th e assignor an d before he certifies th e sig n atu re. H e m u st th e n com plete th e cer tification. An employee who is n o t an officer should in se rt “A uthorized sig n a tu re ” in th e space provided for th e title. However, a n assignm ent of a security need n o t be executed in th e presence of th e certifying officer if he unqualifiedly guarantees th e sig n atu re thereto, in w hich case he m u st place his endorse m en t on th e security, following th e signature, in th e form “S ig n atu re g u a r anteed, F irs t N ational B ank of Jonesville, Jonesville, N.H., by A. B. Doe, P re s ident,” an d ad d th e date. T he certifying officer and, if h e is a n officer or employee of a n organization, th e organization will be held responsible fo r an y loss th e U nited S tates m ay suffer as th e resu lt of his fa u lt or negligence. § 3 0 6 .4 7 E v id e n c e o f c e r t if y in g o ffic e r 's a u th o r ity . T he au th o rity of a n individual to ac t as a certifying officer is established by affixing to a certification of a n assign m ent, or a form w ith respect to securi ties, or a n unqualified g u aran tee of a signature to a n assignm ent, eith er: (a) T he official seal of th e organization, or (b) a legible im p rin t of th e issuing a g e n t’s d atin g stam p, if th e organization is a n authorized issuing ag en t fo r U.S. Savings Bonds of Series E. Use of such stam p shall resu lt in th e sam e responsi bility on th e p a r t of th e organization as if its official seal were used. A cer tification w hich does n o t b ear a seal or issuing ag e n t’s d atin g stam p will n o t be accepted. Any post office official m ust use th e official stam p of h is office. A com missioned or w a rra n t officer of any of th e Arm ed Forces of th e U nited S tates should indicate his ra n k an d sta te th a t th e person executing th e assignm ent is one of th e class whose sig n atu re h e is authorized to certify. A judge or clerk of court m u st use th e seal of th e court. Any oth er certifying officer m u st use his official seal or stam p, if any, but, if h e has n eith er, h is official position an d a specim en of his sig n atu re m u st be certified by some o th er authorized offi cer u nder official seal o r stam p or o th e r wise proved to th e satisfactio n of th e D epartm ent. § 3 0 6 .4 8 I n te r e s te d p e r s o n s n o t to a ct as c e r t if y in g o ffic e r o r w itn e ss . N either th e assignor, th e assignee, nor any person having a n in terest in a se curity m ay a c t as a certifying officer, or as a witness to a n assignm ent by m ark. However, a b an k officer m ay certify an assignm ent to th e bank, o r a n assign m en t executed by an o th er officer in its behalf. § 3 0 6 .4 9 N o n t r a n s f e r a b le se c u r itie s . T he provisions of th is subpart, so fa r as applicable, govern tran sactio n s in T reasury Bonds, Investm ent Series B 1975-80. Subpart G— Assignments by or in Behalf of Individuals § 3 0 6 .5 5 S ig n a tu r e s , m in o r erro rs a n d ch an ge o f nam e. T he ow ner’s signature to an assign m en t should be in th e form in w hich th e security is inscribed or assigned, u n less such inscription or assignm ent is incorrect or th e nam e h as since been changed. In case of a change of nam e, th e signature to th e assignm ent should show both nam es an d th e m an n er in w hich th e change was m ade, for exam ple, “Jo h n Young, changed by order of court from H ans Ju n g .” Evidence of th e change will be required. However, no evidence is required to support a n as signm ent if th e change resulted from m arriage an d th e signature, w hich m ust be duly certified by a n authorized offi cer, is w ritten to show th a t fact, for example, “Mrs. M ary J. Brown, changed by m arriage from Miss M ary Jones.” § 3 0 6 .5 6 A s s ig n m e n t o f s e c u r itie s r e g is te r e d in t h e n a m e s o f o r a s s ig n e d to tw o o r m o r e p e r s o n s . (a) Transfer or exchange. Securities registered in th e nam es of or assigned to two or m ore persons m ay be tr a n s ferred or exchanged fo r coupon bonds during th e lives of all th e jo in t owners only upon assignm ents by all or on th eir behalf by authorized representatives. Upon proof of th e d eath of one, th e De p a rtm e n t will accept a n assignm ent by or in behalf of th e survivor or survivors, unless th e form of reg istratio n or assign m en t includes words w hich precludes th e rig h t of survivorship.9 In th e la tte r case, in addition to assignm ent by or in be h alf of th e survivor or survivors, a n as signm ent in behalf of th e decedent’s estate will be required. (b) Advance refunding or prerefund ing offers. No assignm ents are required for exchange of securities registered in th e nam es of or assigned to two or m ore persons if th e securities to be received in th e exchange are to be registered in th e sam e nam es an d form. If bearer securi ties or securities in a different form are to be issued, all persons nam ed m ust as sign, except th a t in case of d eath p a ra g rap h (a) of th is section shall apply. (c) Redemption or redemption-ex change. (1) Alternative registration or assignment. Securities registered in th e nam es of or assigned to two or more persons in th e alternative, for example, “Jo h n B. S m ith or Mrs. M ary J. S m ith ” or “Jo h n B. S m ith or Mrs. M ary J. S m ith or th e survivor,” m ay be assigned by one of th em a t m a tu rity or upon call, for re dem ption or redem ption-exchange, for his own account or otherwise, w hether •See 1 306.11(a)(2) for form s of re g istra tio n expressing or precluding survivorship. 10 or n o t th e other jo in t owner or owners ready incurred, or to be in cu rred during to rs m ay assign securities, for afiy are deceased. any 90-day period, for th e care an d sup authorized tran sactio n w ithin th e scope (2) Joint registration or assignment. p o rt of th e incom petent or his legal de of th e ir au th o rity . The assignm ents m ust be supported by: Securities registered in th e nam es of or pendents. assigned to two or m ore persons jointly, (2) F or redem ption-exchange, if th e ( 1 ) Temporary administrators. A ce r fo r example, “Jo h n B. S m ith an d Mrs. securities are m atu red or have been tificate, u n d er court seal, showing th e M ary J. S m ith,” or “Jo h n B. S m ith and called, or p u rsu an t to a n advance re ap p o in tm en t in full force w ithin th irty Mrs. M ary J. S m ith as te n an ts in com funding or p rerefunding offer, for rein days preceding th e d ate of receipt of m on,” or “Jo h n B. S m ith and M ary J. vestm ent in o th e r securities to be reg th e securities. (2) Special administrators. A certifi S m ith as p artn e rs in com m unity," m ay istered in th e form “A, a n incom petent be assigned by one of them during th e (123-45-6789) u n d er voluntary g u ard ian cate, u n d er co u rt seal, showing th e a p p o in tm en t in full force w ithin 6 m onths lives of all only for redem ption a t ship." preceding th e d ate of receipt of th e m atu rity or upon call, and th e n only for redem ption for th e account of all. No An application on Form PD 1461 by securities. assignm ents are required for redem p th e person seeking au th o rity to ac t as A uthority for assignm ents fo r tra n sa c tion-exchange for securities to be reg voluntary guardian will be required. (d) Assignments by legal guardianstions n o t w ithin th e scope of ap p o in t istered in the sam e nam es an d form s as m e n t m u st be established by a duly ap p ear in th e registration or assignm ent of minors or incompetents. Securities certified copy of a special order of court. of th e securities surrendered. Upon proof registered in th e nam e an d title of th e (b) In course of administration. A se of th e d eath of a jo in t owner, th e su r legal guardian or sim ilar representative curity belonging to th e estate of a de of th e estate of a m inor or incom petent vivor or survivors m ay assign securities cedent w hich is being adm inistered by a so registered or assigned for redem ption m ay be assigned by th e representative duly qualified executor or general a d for any authorized tran sa ctio n w ithout or redem ption-exchange for any account, m in istrato r will be accepted fo r any a u except th a t, if words w hich preclude th e proof of his qualification. Assignm ents by thorized tran sa ctio n upon assignm ent by a representative of any o th e r securities rig h t of survivorship9 appear in th e reg such representative. (See § 306.77.) U n istra tio n or assignm ent, assignm ent in belonging to a m inor or incom petent less th e security is registered in th e n am e behalf of th e decedent’s estate also will m ust be supported by properly certified of an d shows th e capacity of th e rep re evidence of qualification. T he evidence be required. m ust be d ated n o t m ore th a n 1 year sentative, th e assignm ent m u st be sup a copy th e § 3 0 6 .5 7 M in o rs a n d in c o m p e te n t s . before th e d ate of th e assignm ents an d ported by a certificate orcertified ofnder letters of appointm ent, u (a) Assignments by natural guardian m ust contain a sta te m en t showing th e co u rt seal. T he certificate or certification, of securities registered in name of minor. appointm ent is in full force unless (1) it if required, m u st be d ated n o t m ore th a n Securities registered in th e nam e of a shows th e ap p o in tm en t was m ade n ot 6 m onths before th e date of th e assign m inor for whose estate no legal guardian m ore th a n 1 year before th e d ate of th e m en t an d m ust co n tain a statem en t th a t or sim ilar representative h as qualified assignm ent, or (2) th e representative or th e app o in tm en t is in full force, unless m ay be assigned by the n a tu ra l guardian a corepresentative is a corporation. An (1) it shows th e ap p o in tm en t was m ade upon qualification. (Form PD 2481 m ay assignm ent by th e representative will n o t n o t m ore th a n 1 year before th e date of be accepted a fte r receipt of notice of th e assignm ent, or (2) th e representative be used for th is purpose.) (b) Assignments of securities reg term in atio n of th e guardianship, except or a corepresentative is a corporation, or istered in name of natural guardian of for tra n sfe r to th e form er ward. (3) redem ption is being m ade fo r appli minor. Securities registered in th e nam e § 3 0 6 .5 8 N o n tr a n s fe r a b le s e c u r itie s . catio n of th e proceeds in p aym ent of of a n a tu ra l g uardian of a m inor m ay be T he provisions of th is subpart, so fa r F ederal estate taxes as provided by assigned by th e n a tu ra l g uardian fo r any as applicable, govern tran sactio n s in § 306.28. authorized tran sa ctio n except one for th e (c) After settlement through court pro ap p a ren t benefit of th e n a tu ra l guardian. T reasury Bonds, Investm ent Series B - ceedings. S ecurities belonging to th e 1975-80. I f th e n a tu ra l g uardian in whose nam e estate of a decedent w hich h as been th e securities a re registered is deceased Subpart H— Assignments in Behalf of settled in court will be accepted for any or is no longer qualified to ac t as n a tu ra l Estates of Deceased Owners authorized tran sactio n upon assignm ents guardian, th e securities m ay be assigned by th e person or persons entitled, as de § 3 0 6 .6 5 S p e c ia l p r o v is io n s a p p lic a b le to by th e person th e n acting as n a tu ra l term ined by th e court. T he assignm ents sm a ll a m o u n t s o f s e c u r itie s , in te r e st guardian. T he assignm ent by th e new should be supported by a copy, certified c h e c k s o r r e d e m p tio n c h e c k s . n a tu ra l guardian should be supported by u n d er co u rt seal, of th e decree of d istri E ntitlem en t to, or th e au th o rity to bution, th e rep resen tativ e’s final account proof of th e d ea th or disqualification of th e form er n a tu ra l guardian an d by dispose of, a sm all am ount of securities as approved by th e court, or o th er p e rti evidence of his own sta tu s as n a tu ra l an d checks issued in paym ent th ereo f or n e n t court records. guardian. (Form PD 2481 m ay be used in paym ent of in terest thereon, belong for th is purpose.) No assignm ent by a ing to th e estate of a decedent, m ay be § 3 0 6 . 6 7 E sta te s n o t a d m in is te r e d . n a tu ra l g uardian will be accepted a fte r established th ro u g h th e use of certain (a) Special provisions under State receipt of notice of th e m inor’s a tta in sh o rt forms, according to th e aggregate laws. If, u n d er S tate law, a person has m en t of m ajority, rem oval of his dis am ount of securities and checks in been recognized or appointed to receive ability of m inority, disqualification of volved (excluding checks representing in or distrib u te th e assets of a decedent’s th e n a tu ra l g uardian to ac t as such, te re st on th e se cu rities), as indicated by estate w ith o u t reg u lar adm inistration, qualification of a legal guardian or th e following table: his assignm ent of securities belonging to sim ilar representaitve, or th e d ea th of th e estate will be accepted provided he th e minor. subm its ap p ro p riate evidence of his a u Amount Circumstances Form To be executed by(c) Assignments by voluntary guard thority. ians of incompetents. R egistered securi (b) Agreement of persons entitled. *100 No adminis PD ties belonging to an incom petent for Person who paid W hen it appears th a t no legal rep re tration. 2216 burial expenses. whose estate no legal guardian or sim ilar sentative of a decedent’s estate has been 500 E state being Executor or PD representative is legally qualified m ay adminis administrator. 2488 or is to be appointed, securities belonging tered. be assigned by th e relative responsible to th e estate m ay be duly disposed of 500 E state settled. PD Former cxecutor fo r his care and support or some o th er p u rsu a n t to a n agreem ent an d assign or adm inistra 2458-1 tor, attorneys or person as voluntary g u a rd ia n : m en t by all persons en titled to sh are in other qualified th e decedent’s personal estate. (Form (1) F or redem ption or exchange for person. PD 1646 m ay be used.) However, all b earer securities, if th e proceeds of th e debts of th e decedent an d his estate m u st securities are needed to pay expenses al§ 3 0 6 .6 6 E sta te s— a d m in is tr a tio n . be paid or provided fo r an d th e in terests •S e e $ 306.11 (a) (2) fo r fo rm s o f r e g is tr a (a) Temporary or special administraof any m inors or incom petents m u st be t i o n ex p re ssin g o r p re c lu d in g su rv iv o rsh ip . tors. T em porary or special ad m in istra protected. 11 § < 3 0 6 .6 8 N o n tr a n s f e r a b le s e c u r itie s . T he provisions of th is subpart, so fa r as applicable, govern transactions in T reasury Bonds, In vestm ent Series B 1975-80. Subpart I— Assignments by or in Behalf of Trustees and Similar Fiduciaries § 3 0 6 .7 5 In d iv id u a l fid u c ia r ie s . (a) General. Securities registered in, or assigned to, th e nam es and titles of individual fiduciaries will be accepted for any authorized tran sa ctio n upon as signm ent by th e designated fiduciaries w ithout proof of th e ir qualification. If th e fiduciaries in whose nam es th e se curities are registered, or to whom they have been assigned, have been succeeded by o th er fiduciaries, evidence of successorship m ust be furnished. If th e a p p o intm ent of a successor is n o t required under th e term s of th e tru s t in stru m en t or otherw ise and is n o t contem plated, assignm ents by th e surviving or rem ain ing fiduciary or fiduciaries m ust be sup ported by ap propriate proof. This re quires (1) proof of th e death, resignation, removal or disqualification of th e form er fiduciary an d (2) evidence th a t th e su r viving or rem aining fiduciary or fiduci aries are fully qualified to adm inister th e fiduciary estate, w hich m ay be in th e form of a certificate by them showing th e appointm ent of a successor has n o t been applied for, is not contem plated and is n o t necessary under th e term s of th e tru s t in stru m en t or otherw ise. Assign m ents of securities registered in th e titles, w ithout th e nam es of th e fiduci aries, for example, “T rustees of the George E. W hite M em orial Scholarship F und under deed of tru st dated 11/10/40, executed by Jo h n W. W hite,” m ust be supported by proof th a t th e assignors are th e qualified and acting trustees of th e designated tru st estate, unless they are em powered to act as a u n it in w hich case th e provisions of § 306.76 shall a p ply. (Form PD 2446 m ay be used to fu rn ish proof of incum bency of fiduci aries.) Assignm ents by fiduciaries of securities n o t registered or assigned in such m an n er as to show th a t they belong to the estate for w hich th e assignors are acting m ust also be supported by evidence th a t th e estate is entitled to the securities. (b) Life tenants. Upon term in atio n of a life estate by reason of th e d eath of th e life te n a n t in whose nam e a security is registered, or to whom it has been as signed, th e security will be accepted for any authorized tran sactio n upon assign m ent by th e rem ainderm an, supported by evidence of entitlem ent. § 3 0 6 .7 6 F id u c ia r ie s a c tin g as a u n it. Securities registered in th e nam e of or assigned to a board, com m ittee or other body authorized to ac t as a u n it fo r any public or private tru st estate m ay be assigned for any authorized tran sactio n by anyone authorized to ac t in behalf of such body. Except as otherw ise provided in th is section, th e assignm ents m ust be supported by a copy of a resolution adopted by th e body, properly certified u n der its seal, or, if none, sw orn to by a m em ber of th e body having access to its records. (Form PD 2495 m ay be used.) If th e person assigning is designated in th e resolution by title only, his incum bency m ust be duly certified by an o th er m em ber of th e body. (Form PD 2446 m ay be used.) If th e fiduciaries of any tru st estate are em powered to a c t as a unit, although n o t designated as a board, com m ittee or o th er body, securities registered in th e ir nam es or assigned to th em as such, or in th e ir titles w ithout th e ir nam es, m ay be assigned by anyone a u thorized by th e group to ac t in its behalf. Such assignm ents m ay be supported by a sw orn copy of a resolution adopted by th e group in accordance w ith th e term s of th e tru s t in stru m en t, an d proof of th e ir au th o rity to a c t as a u n it m ay be re quired. As a n alternative, assignm ents by all th e fiduciaries, supported by proof of th e ir incum bency, if n o t nam ed on th e securities, will be accepted. § 3 0 6 .7 7 C o r e p r e se n ta tiv e s a r ie s . and f id u c i I f th e re are two or m ore executors, adm inistrators, g uardians or sim ilar rep resentatives, or trustees of a n estate, all m ust unite in th e assignm ent of any se curities belonging to th e estate. How ever, w hen a sta tu te , a decree of court, or the in stru m en t u n d er w hich th e rep resentatives or fiduciaries are acting p ro vides otherwise, assignm ents in accord ance w ith th e ir au th o rity will be a c cepted. If th e securities have m atu red o r been called an d are subm itted for r e dem ption fo r th e account of all, or for redem ption-exchange or p u rsu a n t to an advance refunding or prerefunding offer, an d th e securities offered in exchange are to be registered in th e nam es of all, no assignm ent is required. § 3 0 6 .7 8 N o n tr a n s fe r a b le s e c u r itie s . The provisions of th is subpart, so fa r as applicable, govern assignm ents of T reasury Bonds, In v estm en t Series B 1975-80. Subpart J— Assignments in Behalf of Private or Public Organizations § 3 0 6 .8 5 P r iv a te c o r p o r a tio n s a n d u n i n co r p o r a te d a s s o c ia t io n s ( in c lu d in g n o m in e e s). Securities registered in th e nam e of, or assigned to, a n unin co rp o rated associa tion, or a p riv ate corporation in its own rig h t or in a represen tativ e or fiduciary capacity, or as nom inee, m ay be assigned in its behalf for any authorized tra n sa c tion by any duly authorized officer or officers. Evidence, in th e form of a reso lution of th e governing body, au th o riz ing th e assigning officer to assign, or to sell, or to otherw ise dispose of th e se curities will ordinarily be required. Reso lutions m ay relate to any or all registered securities owned by th e organization or held by it in a representative or fiduciary capacity. (Form PD 1010, or any sub stan tially sim ilar form , m ay be used w hen th e au th o rity relates to specific se curities; Form PD 1011, or any su b stan tially sim ilar form , m ay be used for se curities generally.) If th e officer derives his au th o rity from a ch arter, co n stitu tion or bylaws, a copy, o r a p e rtin e n t ex tra c t therefrom , properly certified, will be required in lieu of a resolution. If th e resolution or other supporting docum ent shows th e title of a n authorized officer, w ithout his nam e, it m u st be supple m ented by a certificate of incumbency. (Form P D 1014 m ay be used.) § 3 0 6 .8 6 C h a n g e o f n a m e a n d s u c c e s s io n o f p r iv a te o r g a n iz a tio n s . If a private corporation or un in co r p orated association changes its n am e or is lawfully succeeded by an o th er cor p o ration or unincorporated association, its securities may be assigned in behalf of th e organization in its new nam e or th a t of its successor by a n authorized officer in accordance w ith § 306.85. The assignm ent m ust be supported by evi dence of th e change of nam e or successorship. § 3 0 6 .8 7 P a r tn e r s h ip s ( in c lu d in g n o m i n e e p a r t n e r s h ip s ) . An assignm ent of a security registered in th e nam e of or assigned to a p a r tn e r ship m ust be executed by a general p a r t ner. Upon dissolution of a p artn ersh ip , assignm ent by all living p artn e rs an d by th e persons en titled to assign in behalf of any deceased p a rtn e r’s estate will be required unless th e laws of th e ju risd ic tion authorize a general p a rtn e r to bind th e p artn e rsh ip by any ac t ap propriate for winding up p artn e rsh ip affairs. In those cases where assignm ents by or in behalf of all p a rtn e rs are required th is fac t m ust be shown in th e assignm ent; otherwise, an affidavit by a form er gen eral p a rtn e r m ust be furnished id en tify ing all th e persons who h ad been p a r t ners im m ediately prior to dissolution. Upon voluntary dissolution, for any jurisdiction w here a general p a rtn e r m ay n o t ac t in w inding up p artn e rsh ip affairs, an assignm ent by a liquidating p artn e r, as such, m ust be supported by a duly executed agreem ent am ong th e p artn e rs appointing th e liquidating p artn e r. § 3 0 6 .8 8 P o lit ic a l co r p o r a tio n s. e n t itie s and p u b lic Securities registered in th e nam e of, or assigned to, a S tate, county, city, town, village, school district o r o th er political entity, public body or corporation, may be assigned by a duly authorized officer, supported by evidence of his authority. § 3 0 6 .8 9 P u b lic o ffic e r s. Securities registered in th e nam e of, or assigned to, a public officer designated by title m ay be assigned by such officer, supported by evidence of incumbency. Assignm ents for th e officer’s own a p p a r en t individual benefit will n o t be recog nized. § 3 0 6 .9 0 N o n tr a n s fe r a b le se c u r itie s . T he provisions of th is su b p art apply to T reasury Bonds, In v estm en t Series B 1975-80. Subpart K— Attorneys in Fact § 3 0 6 .9 5 A tto r n e y s in f a c t. (a) General. Assignm ents by a n a t torney in fa c t will be recognized if sup ported by an adequate power of attorney. Every power m ust be executed in th e 12 presence of an authorized certifying offi cer under the conditions set out in § 306.45 for certification of assignments. Powers need not be submitted to sup port redemption-exchanges or exchanges pursuant to advance refunding or pre refunding offers where the securities to be issued are to be registered in the same names and forms as appear in the in scriptions or assignments of the securi ties surrendered. In all other cases, the original power, or a photocopy showing the grantor’s autograph signature, prop erly certified, must be submitted, to gether with the security assigned on the owner’s behalf by the attorney in fact. An assignment by a substitute attorney in fact must be supported by an author izing power of attorney and power of substitution. An assignment by an at torney in fact or a substitute attorney in fact for the apparent benefit of either will not be accepted unless expressly au thorized. (Form PD 1001 or 1003, as ap propriate, may be used to appoint an attorney in fact. An attorney in fact may use Form PD 1006 or 1008 to appoint a substitute. However, any form sufficient in substance may be used.) If there are two or more joint attorneys in fact or substitutes, all must unite in an assign ment, unless the power authorizes less than all to act. A power of attorney or of substitution not coupled with an in terest will be recognized until the Bu reau receives proof of revocation or proof of the grantor’s death or incompetency. (b) For legal representatives and fiduciaries. Assignments by an attorney in fact or substitute attorney in fact for a legal representative or fiduciary, in addition to the power of attorney and of substitution, must be supported by evidence, if any, as required by §§ 306.57 (d ), 306.66(b), 306.75, and 306.76. Powers must specifically designate the securities to be assigned. (c) For corporations or unincorporated associations. Assignments by an attorney in fact or a substitute attorney in fact in behalf of a corporation or unincor porated association, in addition to the power of attorney and power of substi tution, must be supported by one of the following documents certified under seal of the organization, or, if it has no seal, sworn to by an officer who has access to the records: ( 1 )A copy of the resolution of the gov erning body authorizing an officer to appoint an attorney in fact, with power of substitution, if pertinent, to assign, or to sell, or to otherwise dispose of, the securities, or (2) A copy of the charter, constitution, or bylaws, or a pertinent extract there from, showing the authority of an offi cer to appoint an attorney in fact, or (3) A copy of the resolution of the governing body directly appointing an attorney in fact. If the resolution or other supporting document shows only the title of the authorized officer, without his name, a certificate of incumbency must also be furnished. (Form PD 1014 may be used.) The power may not be broader than the resolution or other authority. (d) For public corporations. A general not so assigned as to have become -in power of attorney in behalf of a public effect payable to bearer, or (2) the as corporation will be recognized only if it signment was affected by fraud, the transaction for which the security was is authorized by statute. received will be suspended. The inter § 3 0 6 .9 6 N on tran sferab le securities. ested parties will be given a reasonable The provisions of this subpart shall period of time in which to effect settle apply to nontransferable securities, sub ment of their interests by agreement, or ject only to the limitations imposed by to institute judicial proceedings. the terms of the particular issues. (b) Late notice. If, after a registered security has been transferred, exchanged, Subpart L— Transfer Through Judicial or redeemed in reliance on an apparently Proceedings valid assignment, an owner notifies the § 3 0 6 .1 0 0 T ran sferab le securities. Bureau that the assignment was affected The Department will recognize valid by fraud or that the security had been judicial proceedings affecting the owner lost or stolen, the Department will un ship of or interest in transferable se dertake only to furnish available curities, upon presentation of the securi information. ties together with evidence of the (c) Forged assignments. A claim that proceedings. In the case of securities reg an assignment of a registered security istered in the names of two or more per is a forgery will be investigated. If it is sons, the extent of their respective established that the assignment was in interests in the securities must be deter fact forged and that the owner did not mined by the court in proceedings to authorize or ratify it, or receive any which they are parties or must otherwise benefit therefrom, the Department will be validly established.1 0 recognize his ownership and grant ap § 3 0 6 .1 0 1 E vidence required. propriate relief. Copies of a final judgment, decree, or § 3 0 6 .1 0 6 R equ ests fo r su sp en sion o f order of court and of any necessary sup transactions in bearer securities. plementary proceedings must be sub (a) Securities not overdue. Neither the mitted. Assignments by a trustee in Department nor any of its a g e n ts will bankruptcy or a receiver of an insolvent’s accept notice of any claim or of pending estate must be supported by evidence of judicial proceedings by any person for his qualification. Assignments by a re the purpose of suspending transactions ceiver in equity or a similar court officer in bearer securities, or registered securi must be supported by a copy of an order ties so assigned as to become in effect authorizing him to assign, or to sell, or payable to bearer which are not overdue to otherwise dispose of, the securities. as defined in § 306.25.1 However, if the 1 Where the documents are dated more securities are received and retired, the than 6 months prior to presentation of department will undertake to notify per the securities, there must also be sub sons who appear to be entitled to any mitted a certificate dated within 6 available information concerning the months of presentation of the securities, source from which the securities were showing the judgment, decree, or order, received. or evidence of qualification, is in full (b) Overdue securities. Reports that force. Any such evidence must be certi bearer securities, or registered securities fied under court seal. so assigned as to become in effect pay § 3 0 6 .1 0 2 N on tran sferab le securities. able to bearer, were lost, stolen, or pos The provisions of this subpart shall sibly destroyed after they became over apply to Treasury Bonds, Investment due as defined in § 306.25 will be accepted Series B-1975-80, except that prior to by the Bureau for the purpose of sus maturity any reference to assignments 11 I t has b een th e lo n g sta n d in g p olicy o f th e shall be deemed to refer to assignments of the bonds for exchange for the current D ep artm en t to assu m e n o resp o n sib ility for th o f bearer in th e series of IV2 percent 5-year EA or EO p oe p ro tectio npersons cla secu rities hn o tth erein ssession o f im in g rig ts Treasury notes. an d to give n o effect to an y n o tic e o f su ch Subpart M— Requests for Suspension of Transactions claim s. T h is policy w as form alized on April 27, 1867, w h en th e Secretary o f th e Treasury issued th e fo llo w in g sta tem e n t: § 3 0 6 .1 0 5 R equ ests for su sp en sio n o f "In co n seq u en ce o f th e in creasing trouble, transactions in registered securities. w h olly w ith o u t p ractical b en efit, arisin g from (a) Timely notice. If prior to the time n o tices w h ich are co n sta n tly received a t th e a registered security bearing an appar D ep a rtm en t resp ectin g th e loss o f coupon to bearer, d of ently valid assignment has been func bonds, w h ich s are payable rem ain in g inan lank Treasury n o te Issued and b tioned, a claim is received from the owner a t th e tim e o f loss, It b ecom es necessary to or his authorized representative showing give th is p u b lic n o tice, th a t th e G overnm ent that (1) the security was lost, stolen, or ca n n o t p ro tect an d w ill n o t un d ertak e to destroyed and that it was unassigned, or p rotect th e ow ners o f su ch bon d s an d n o tes a g a in st th e con seq u en ces o f th eir ow n fa u lt 10 T itle In a finder cla im in g ow nership o f or m isfortu n e. “H ereafter all bonds, n o tes, and coupons, a registered secu rity w ill n o t be recognized. payable to bearer, and Treasury n o tes Is A finder cla im in g ow nership o f a bearer se su ed and rem a in in g in b lank, w ill be paid to cu rity or a registered secu rity assign ed in b lan k or so assign ed as to becom e in effect th e party p resen tin g th e m in p u rsu an ce o f th e reg u la tion s o f th e D ep a rtm en t, In th e payable to bearer m u s t p erfect h is title in accordance w ith th e p rovision s of S ta te law . course o f regular business; and n o a tte n tio n w ill be paid to ca vea ts w h ich m ay be filed If th ere are n o su ch provisions, th e D ep art for th e purpose o f p rev en tin g su ch p ay m en t w ill n o t recognize h is t itle to th e m e n t.” secu rity. 13 pending redemption of the securities if the claimant establishes his interest. If the securities are presented, their re demption will be suspended and the pre senter and the claimant will each be given an opportunity to establish owner ship. Subpart N— Relief for Loss, Theft, Destruc tion, Mutilation, or Defacement of Securities § 3 0 6 .1 1 0 Statutory q u irem en ts. au th ority and re Relief is authorized, under certain con ditions, for the loss, theft, destruction, mutilation or defacement of U.S. securi ties, whether before, at, or after m a turity. A bond of indemnity, in such form and with such surety, sureties or security as may be required to protect the inter ests of the United States, is required as a condition of relief on account of any bearer security or any registered secur ity assigned in blank or so assigned as to become in effect payable to bearer, and is ordinarily required in the case of un assigned registered securities. § 3 0 6 .1 1 1 P roced ure fo r ap p lyin g for relief. Prompt report of the loss, theft, de struction, mutilation or defacement of a security should be made to the Bureau. The report should include: (a) The name and present address of the owner and his address at the time the security was issued, and, if the report is made by some other person, the ca pacity in which he represents the owner. (b) The identity of the security by title of loan, issue date, interest rate, serial number and denomination, and in the case of a registered security, the exact form of inscription and a full de scription of any assignment, endorse ment or other writing. (c) A full statement of the circum stances. All available portions of a mutilated, de faced or partially destroyed security must also be submitted. § 3 0 6 .1 1 2 T yp e o f r e lie f granted. (a) Prior to call or maturity. After a claim on account of the loss, theft, de struction, mutilation, or defacement of a security which has not matured or been called has been satisfactorily established and the conditions for granting relief have been met, a security of like descrip tion will be issued to replace the original security. (b) At or after call or maturity. Pay ment will be made on account of the loss, theft, destruction, mutilation, or deface ment of a called or matured security after the claim has been satisfactorily established and the conditions for grant ing relief have been met. (c) Interest coupons. Where relief has been authorized on account of a de stroyed, mutilated or defaced coupon security which has not matured or been called, the replacement security will have attached all unmatured interest coupons if it is established to the satisfaction o f the Secretary of the Treasury that the coupons were attached to the original security at the time of its destruction, mutilation or defacement. In every other case only those unmatured interest cou pons for which the Department has re ceived payment will be attached. The price of the coupons will be their value as determined by the Department at the time relief is authorized using interest rate factors based on then current mar ket yields on Treasury securities of com parable maturities. § 3 0 6 .1 1 3 Cases n o t req u irin g b on ds o f ind em n ity. A bond of indemnity will not be re quired as a condition of relief for the loss, theft, destruction, mutilation, or de facement of registered securities in any of the following classes of cases unless the Secretary of the Treasury deems it essential in the public interest: (a) If the loss, theft, destruction, mutilation, or defacement, as the case may be, occurred while the security was in the custody or control of the United States, or a duly authorized agent there of (not including the Postal Service when acting solely in its capacity as public carrier of the m ails), or while in the course of shipment effected under regulations issued pursuant to the Gov ernment Losses in Shipment Act (Parts 260, 261, and 262 of this chapter). (b) If substantially the entire security is presented and surrendered and the Secretary of the Treasury is satisfied as to the identity of the security and that any missing portions are not sufficient to form the basis of a valid claim against the United States. (c) If the security is one which by the provisions of law or by the terms of its is sue is nontransferable or is transferable only by operation of law. (d) If the owner or holder is the United States, a Federal Reserve bank, a Federal Government corporation, a State, the District of Columbia, a territory or pos session of the United States, a municipal corporation, or, if applicable, a political subdivision of any of the foregoing, or a foreign government. Subpart O— Book-Entry Procedure § 3 0 6 .1 1 5 D e fin itio n o f term s. In this subpart, unless the context otherwise requires or indicates: (a) “Reserve Bank” means a Federal Reserve bank and its branches acting as Fiscal Agent of the United States and when indicated acting in its individual capacity. (b) “Treasury security” means a Treasury bond, note, certificate of in debtedness, or bill issued under the Sec ond Liberty Bond Act, as amended, in the form of a definitive Treasury security or a book-entry Treasury security. (c) “Definitive Treasury security” means a Treasury bond, note, certificate of indebtedness, or bill issued under the Second Liberty Bond Act, as amended, in engraved or printed form. (d) “Book-entry Treasury security” means a Treasury bond, note, certificate of indebtedness, or bill issued under the Second Liberty Bond Act, as amended, in the form an entry made as prescribed in this subpart on the records of a Reserve Bank. (e) “Pledge” includes a pledge of, or any other security interest in, Treasury securities as collateral for loans or ad vances or to secure deposits of public monies or the performance of an obliga tion. (f) “Date of call” (see § 306.2) is “the date fixed in the official notice of call published in the F e d e r a l R e g i s t e r * * * on which the obligor will make payment of the security before maturity in ac cordance with its terms.” (g) “Member bank” means any n a tional bank, State bank or bank or trust company which is member of a Reserve Bank. § 3 0 6 .1 1 6 A uthority o f R eserve B ank s. Each Reserve Bank is hereby author ized, in accordance with the provisions of this subpart, to (a) issue book-entry Treasury securities by means of entries on its records which shall include the name of the depositor, the amount, the loan title (or series) and maturity date; (b) effect conversions between bookentry Treasury securities and definitive Treasury securities; (c) otherwise service and maintain book-entry Treasury se curities; and (d) issue a confirmation of transaction in the form of a written ad vice (serially numbered or otherwise) which specifies the amount and descrip tion of any securities, that is, loan title (or series) and maturity date, sold or transferred and the date of the transac tion. § 3 0 6 .1 1 7 S cop e and entry procedure. e ffec t o f book - (a) A Reserve bank as fiscal agent of the United States may apply the bookentry procedure provided for in this sub part to any Treasury securities which have been or are hereafter deposited for any purpose in accounts with it in Its individual capacity under terms and conditions which indicate that the Reserve bank will continue to maintain such deposit accounts in its individual capacity, notwithstanding application of the book-entry procedure to such securi ties. This paragraph is applicable, but not limited, to securities deposited: “ (1) As collateral pledged to a Reserve bank (in its individual capacity) for ad vances by i t ; (2) By a member bank for its sole account; (3) By a member bank held for the ac count of its customers; (4) In connection with deposits In a member bank of funds of States, munici palities, or other political subdivisions; or (5) In connection with the perform ance of an obligation or duty under Fed eral, State, municipal, or local law, or judgments or decrees of courts. The application of the book-entry pro cedure under this paragraph shall not derogate from or adversely affect the 12 T h e ap p en d ix to th is su b p art c o n ta in s ru les o f Id en tification o f b o o k -en try secu ri t ie s for Federal in com e ta x purposes. 14 relationships that would otherwise exist between a Reserve bank in its individual capacity and its depositors concerning any deposits under this paragraph. Whenever the book-entry procedure Is applied to such Treasury securities, the Reserve bank is authorized to take all action necessary in respect of the bookentry procedure to enable such Reserve bank in its individual capacity to per form its obligations as depositary with respect to such Treasury securities. (b) A Reserve bank, as fiscal agent of the United States, shall apply the book-entry procedure to Treasury se curities deposited as collateral pledged to the United States under current re visions of Department of the Treasury Circulars Nos. 92 and 176 (Parts 203 and 202 of this chapter), and may apply the book-entry procedure, with the ap proval of the Secretary of the Treasury, to any other Treasury securities de posited with a Reserve bank, as fiscal agent of the United States. (c) Any person having an interest in Treasury securities which are deposited with a Reserve bank (in either its in dividual capacity or as fiscal agent) for any purpose shall be deemed to have con sented to their conversion to book-entry Treasury securities pursuant to the pro visions of this subpart, and in the m an ner and under the procedures prescribed by the Reserve bank. (d) No deposits shall be accepted un der this section on or after the date of maturity or call of the securities. § 3 0 6 .1 1 8 T ran sfer or p led ge. (a) A transfer or a pledge of bookentry Treasury securities to a Reserve bank (in its individual capacity or as fiscal agent of the United S ta tes), or to the United States, or to any transferee or pledgee eligible to maintain an appro priate book-entry account in its name with a Reserve bank under this subpart, is effected and perfected, notwithstand ing any provision of law to the contrary, by a Reserve bank making an appro priate entry in its records of the securi ties transferred or pledged. The making of such an entry in the records of a Reserve bank shall (1) have the effect of a delivery in bearer form of definitive Treasury securities; (2) have the effect of a taking of delivery by the transferee or pledgee; (3) constitute the transferee or pledgee a holder; and (4) if a pledge, effect a perfected security interest therein in favor of the pledgee. A trans fer or pledge of book-entry Treasury securities effected under this paragraph shall have priority over any transfer, pledge, or other interest, theretofore or thereafter effected or perfected under paragraph (b) of this section or in any other manner. (b) A transfer or a pledge of trans ferable Treasury securities, or any in terest therein, which is maintained by a Reserve bank (in its individual capacity or as fiscal agent of the United States) in a book-entry account under this sub part, including securities in book-entry form under § 306.117(a) (3), is effected, and a pledge is perfected, by any means that would be effective under applicable law to effect a transfer or to effect and perfect a pledge of the Treasury securi ties, or any interest therein, if the securi ties were maintained by the Reserve bank in bearer definitive form. For pur poses of transfer or pledge hereunder, book-entry Treasury securities main tained by a Reserve bank shall, notwith standing any provision of law to the con trary, be deemed to be maintained in bearer definitive form. A Reserve bank maintaining book-entry Treasury securi ties either in its individual capacity or as fiscal agent of the United States is not a bailee for purposes of notification of pledges of those securities under this subsection, or a third person in posses sion for purposes of acknowledgment of transfers thereof under this subsection. Where transferable Treasury securities are recorded on the books of a depositary (a bank, banking institution, financial firm, or similar party, which regularly accepts in the course of its business Treasury securities as a custodial service for customers, and maintains accounts in the names of such customers reflect ing ownership of or interest in such securities) for account of the pledgor or transferor thereof and such securities are on deposit with a Reserve bank in a book-entry account hereunder, such de positary shall, for purposes of perfecting a pledge of such securities or effecting delivery of such securities to a purchaser under applicable provisions of law, be the bailee to which notification of the pledge of the securities may be given or the third person in possession from which acknowledgment of the holding of the securities for the purchaser may be ob tained. A Reserve bank will not accept notice or advice of a transfer or pledge effected or perfected under this subsec tion, and any such notice or advice shall have no effect. A Reserve bank may con tinue to deal with its depositor in accord ance with the provisions of this sub part, notwithstanding any transfer or pledge effected or perfected under this subsection. (c) No filing or recording with a public recording office or officer shall be neces sary or effective with respect to any transfer or pledge of book-entry Treas ury securities or any interest therein. (d) A Reserve bank shall, upon receipt of appropriate instructions, convert book-entry Treasury securities into de finitive Treasury securities and deliver them in accordance with such instruc tions; no such conversion shall affect existing interests in such Treasury securities. (e) A transfer of book-entry Treasury securities within a Reserve bank shall be made in accordance with procedures established by the bank not inconsistent with this subpart. The transfer of bookentry Treasury securities by a Reserve bank may be made through a telegraphic transfer procedure. (f) All requests for transfer or with drawal must be made prior to the m a turity or date of call of the securities. § 3 0 6 .1 1 9 rities. W ithdraw al o f T reasury secu (a) A depositor of book-entry Treas ury securities may withdraw them from a Reserve bank by requesting delivery of like definitive Treasury securities to it self or on its order to a transferee. (b) Treasury securities which are actually to be delivered upon withdrawal may be issued either in registered or in bearer form, except that Treasury bills and EA and EO series of Treasury notes will be issued in bearer form only. § 3 0 6 .1 2 0 rities. D elivery of T reasury secu A Reserve bank which has received Treasury securities and effected pledges, made entries regarding them, or trans ferred or delivered them according to the instructions of its depositor is not liable for conversion or for participation in breach of fiduciary duty even though the depositor had no right to dispose of or take other action in respect of the se curities. A Reserve bank shall be fully discharged of its obligations under this subpart by the delivery of Treasury se curities in definitive form to its depositor or upon the order of such depositor. Customers of a member bank or other depositary (other than a Reserve bank) may obtain Treasury securities in defini tive form only by causing the depositor of the Reserve bank to order the with drawal thereof from the Reserve bank. § 3 0 6 .1 2 1 R egistered b on ds and notes. No formal assignment shall be required for the conversion to book-entry Treas ury securities of registered Treasury se curities held by a Reserve bank (in either its individual capacity or as fiscal agent) on the effective date of this subpart for any purpose specified in § 306.117(a). Registered Treasury securities deposited thereafter with a Reserve bank for any purpose specified in § 306.117 shall be assigned for conversion to book-entry Treasury securities. The assignment, which shall be executed in accordance with the provisions of Subpart F of this part, so far as applicable, shall be to “Federal Reserve Bank o f ---------------_ , as fiscal agent of the United States, _ for conversion to book-entry Treasury securities.” § 3 0 6 .1 2 2 Servicing book -en try T reas ury secu rities; pa ym en t o f interest, p a ym en t at m aturity or u p on call. Interest becoming due on book-entry Treasury securities shall be charged in the Treasurer’s account on the interestdue date and remitted or credited in ac cordance with the depositor’s instruc tions. Such securities shall be redeemed and charged in the Treasurer’s account on the date of maturity or call, and the redemption proceeds, principal and in terest, shall be disposed of in accordance with the depositor’s instructions. Subpart P— Miscellaneous Provisions § 3 0 6 .1 2 5 A dditional req uirem en ts. In any case or any class of cases aris ing under these regulations the Secre tary of the Treasury may require such 15 additional ^vidence and a bond of in demnity, with or without surety, as may in his judgment be necessary for the protection of the interests of the United States. § 3 0 6 .1 2 6 W aiver o f regu lation s. The Secretary of the Treasury reserves the right, in his discretion, to waive or modify any provision or provisions of these regulations in any particular case or class of cases for the convenience of the United States or in order to relieve any person or persons of unnecessary hardship, if such action is not inconsist ent with law, does not impair any exist ing rights, and he is satisfied that such action would not subject the United States to any substantial expense or liability. § 3 0 6 .1 2 7 § 3 0 6 .1 2 8 S u p p lem en ts, am en d m en ts or revisions. The Secretary of the Treasury may at any time, or from time to time, prescribe additional supplemental, amendatory or revised regulations with respect to U.S. securities. A p p e n d ix F or T h e H alt- Y e a r Interest period P reservation o f ex istin g rights. Nothing contained in these regulations shall limit or restrict existing rights which holders of securities heretofore issued may have acquired under the cir culars offering such securities for sale or under the regulations in force at the time of acquisition. S ubpart E — I n terest — C o m p u t a t io n o p I n t e r e s t o n T reasury B o n d s, T r e a su r y N o t e s , a n d T r e a s u r y C e r t if i c a t es o f I n d e b t e d n e s s , a n d C o m p u t a t io n o f D is c o u n t o n T r e a s u r y B il l s — I n t e r e s t T ables to c o m p u t a t io n o f in t e r e s t o n a n n u a l b a s is O ne D ay’s In terest Is 1/365 or 1/366 o f 1-Y ear’s In terest C om p u tation o f in te rest on Treasury bonds, n o te s, and certificates o f In d eb ted n ess w ill be m ade o n an a n n u a l b asis In all cases where In terest is payable in o n e a m o u n t for t h e fu ll term o f th e secu rity, u n less su ch term is an exact h a lf-y ea r (6 m o n t h s ) , an d It Is provided th a t in te rest sh a ll be com p u ted on a se m i a n n u a l basis. I f th e term o f th e secu rities is ex a ctly 1 year, th e in te rest is com p u ted for th e fu ll p e riod at th e specified rate regardless o f th e n u m b er o f d ays in su ch period. I f th e term o f th e secu rities is less th a n 1 f u ll year, th e a n n u a l Interest period for p urposes o f c o m p u ta tio n Is considered to be th e fu ll year from b u t n o t In clu d in g th e d a te o f issu e t o and in clu d in g th e a n n i versary o f su ch date. If th e term o f t h e se cu rities is m ore th a n 1 f u ll year, c o m p u ta tio n Is m ade on th e b asis o f on e fu ll a n n u a l in te rest period, en d in g w ith th e m a tu rity d a te, an d a fra ctio n a l part o f th e p receding fu ll a n n u a l Interest period. T h e c o m p u ta tio n o f in te rest for an y fra c tio n a l part o f an a n n u a l In terest period Is m a d e o n t h e b asis o f 365 a ctu a l days in su ch period, or 366 days if February 29 fa lls w ith in su ch a n n u a l period. C O M P U T A T IO N O F I N T E R E S T O N S E M I A N N U A L B A S IS One D ay’s In terest is 1/181, 1/182, 1/183 or 1/184 o f 1 /2 Y ear’s In terest C o m p u ta tio n o f in te rest o n Treasury bonds, n o tes, an d certificates o f In d eb ted n ess w ill be h a lf-y ea r (ex a ctly 6 m o n th s) en d in g o n t h e d ay su ch in itia l In terest b ecom es d u e. I f t h e in itia l in te r e st covers a period in ex cess o f 6 m o n th s, co m p u ta tio n is m ade on t h e basis o f on e f u ll h a lf-y ea r period, en d in g w ith th e In terest due date, an d a fra ctio n a l p art o f th e preced in g fu ll h a lf-y ea r period. In terest for any fra ctio n a l p art o f a f u ll h a lf-y ea r period is co m p u ted o n th e b asis o f th e ex act n u m b er o f days In th e fu ll period, in clu d in g February 29 w h en ever it fa lls w ith in su ch a period. T he n u m b er o f days in a n y h a lf-y ea r p e riod is sh o w n in th e fo llo w in g table: m ade o n a sem ia n n u a l b a sis in all cases w here in terest is p ayable for o n e or m ore f u ll h a lf year (6 m o n th s) periods, or for on e or m ore f u ll h a lf-y ea r periods an d a fra ctio n a l part o f a h a lf-y ea r period. A sem ia n n u a l in te rest period is an exact h a lf-y ea r or 6 m on th s, for co m p u ta tio n purposes, an d m ay com prise 1 8 1 ,18 2 ,1 8 3 or 184 a ctu a l days. An ex a ct h a lf-y e a r ’s in te rest a t th e sp ec i fied rate is com p u ted for each f u ll period o f ex actly 6 m o n th s, irrespective o f th e a ctu a l n u m b er o f days in th e h alf-year. I f t h e in itia l in te rest covers a fractio n a l part o f a h a lf-y ea r, co m p u ta tio n is m ade on th e b a sis o f t h e a ctu a l n u m b er o f d ays in th e Beginning and ending days are Beginning and ending days are last days of m onths listed under 1st or 15th of m onths listed interest period (num ber of days) under interest period (num ber of days) Regular year Regular year Leap year Leap year January to J u ly ................................................ February to A ugust......................................... March to Septem ber........ ............................... A pril to O ctober..................................... .......... May to N ovem ber............................................. June to Decem ber............................................ July to Jan u a ry ............................. ................... August to F e bru ary......................................... September to M arch......................................... October to A pril................................................ N ovember to M ay............................................. December to June........ .................................... 181 181 184 183 184 183 184 184 181 182 181 182 182 182 184 183 184 183 184 184 182 183 182 183 181 184 183 184 183 184 184 181 182 181 182 181 182 184 183 184 183 184 184 182 183 182 183 182 1 year (any 2 consecutive half-years)............ 365 366 365 366 T h e fo llo w in g are d ates for e n d -o f-th e m o n th in te rest co m p u ta tion s. W h en in te r e s t I n te r e a t-c o m p u ta tio n p erio d en d s p erio d w ill be fro m b u t on— w ill n o t in clu d e— Jan . 31____________ J u ly 31. Feb. 28 In 365Aug. 31. day year. Feb. 29____________ Do. Mar. 30, 31_S ep t. 30. Apr. 30____________ Oct. 31. May 30, 31_________Nov. 30. J u n e 30___________ D ec. 31. J u ly 31___________ Jan . 31. Aug. 29, 30 or 31___ Feb. 28 In 365-day year. Feb. 29 in leap year. S ept. 3 0 ___ Mar. 31. Oct. 30, 31_________Apr. 30. Nov. 30___________ May 31. D ec. 30, 31_J u n e 30. U S E O F IN T E R E S T T A B L E S (3) C alcu late th e a ctu a l n u m b er o f days In th e fra ctio n a l period from b u t n o t in clu d in g th e d a te o f issu e or th e day o n w h ich th e la st p reced in g in te rest p a y m en t w as m ade, t o an d In clu d in g th e day o n w h ich th e n ex t su cceed in g in te rest p a y m en t is du e or th e day as o f w h ich th e tra n sa ctio n w h ich term in a tes th e accrual o f a d d itio n a l Inter est is effected. (4) M u ltip ly th e appropriate d ecim a l (1 d ay’s in te rest o n $1,000) by th e n u m b er o f days In th e fra ctio n a l p art o f th e In terest period. T h e appropriate d ecim al w ill be fo u n d in th e appended ta b le for In terest payable se m ia n n u a lly or a n n u a lly , as th e case m ay be, op p osite th e rate borne by th e secu rity, a n d in th e co lu m n sh o w in g th e f u ll Interest period o f w h ich th e fra ctio n a l period is a part. (For in te rest o n an y o th er a m o u n t, m u ltip ly th e a m o u n t o f in te rest o n $1,000 by th e o th er a m o u n t expressed as a d ecim al o f $1,000.) T R E A SU R Y In th e appended ta b les d ecim als are set fo rth for u se in co m p u tin g Interest for fra c tio n a l p arts o f in te rest periods. T he decim als cover in te rest o n $1,000 for 1 day In each p ossible se m ia n n u a l (Table I ) , and a n n u a l (Table II) in te rest period, a t all rates o f in terest, in step s o f V p ercen t, from y8 t o 9 s percen t. T he a m o u n t o f in te rest accru in g on an y d ate (for a fra ction a l part o f a n Interest period) on $1,000 fa ce a m o u n t of any Issue o f Treasury bonds. Treasury n o tes, or Treas ury certificates o f in d eb ted n ess m ay be ascer ta in ed in th e fo llo w in g w a y : (1) T he d ate o f issu e, th e d ates for th e p a y m en t o f In terest, th e basis (sem ia n n u a l or a n n u a l) u p o n w h ich In terest is com p uted , an d th e rate o f in te rest (p ercen t per a n n u m ) m ay be d eterm in ed from th e te x t of th e se cu rity, or from th e official circular governing th e issue. (2) D eterm in e th e in te rest period o f w h ich th e fra ction is a part, an d ca lcu la te th e n u m ber o f days in th e fu ll period to d eterm in e th e proper co lu m n to be u sed in se lectin g th e d ecim al for 1 d ay’s In terest. B IL L S T he m eth o d s o f co m p u tin g d isco u n t rates o n U.S. Treasury b ills are g iven below : C o m p u ta tio n w ill be m ade o n a n a n n u a l b a sis in a ll cases. T h e a n n u a l period for ban k d isco u n t is a year o f 360 days, a n d all co m p u ta tio n s of su ch d isco u n t w ill b e m ade o n th a t basis. T he a n n u a l period for tru e d is co u n t is 1 f u ll year from b u t n o t in clu d in g th e d a te o f Issue to an d in clu d in g th e a n n i versary o f su ch date. C om p u ta tio n o f tru e d isco u n t for a fra ctio n a l part o f a year wlU be m ade o n th e b a sis o f 365 days In th e year, or 366 days if February 29 fa lls w ith in th e year. B A N K D IS C O U N T T he b a n k d isco u n t rate o n a Treasury b ill m ay be ascertain ed by (1) su b tra ctin g th e sale price o f th e b ill from its face v alu e to o b ta in th e am o u n t of d iscou n t; (2) d iv id in g th e a m o u n t o f d isco u n t by th e n u m b er o f days th e b ill is to ru n to o b ta in th e a m o u n t o f d isco u n t per day; (3) m u ltip ly in g th e am o u n t o f d isco u n t per day by 360 (th e n u m ber o f days in a com m ercial year o f 12 m o n th s o f 30 days each ) t o o b ta in th e a m o u n t o f d isco u n t per year; a n d (4) d iv id in g th e a m o u n t o f d isco u n t per year by t h e face valu e of th e b ill to o b ta in th e ban k d isco u n t rate. For ex a m p le: 91-day bill: Principal a m o u n t— m a tu rity v a lu e ________________________$100. 00 Price a t issu e— a m o u n t rece iv ed . 9 9 .5 0 A m ou nt o f d isc o u n t_________ . 50 $0.50^-91 X 360-7-$100 = .01978 or 1.978 p ercen t T R U E D IS C O U N T first tw o step s described u n d er “B an k D is c o u n t”; (3) m u ltip ly in g th e a m o u n t o f d is co u n t per day by th e a ctu a l n u m b er o f days in th e year from d a te o f issu e (365 ordinarily, b u t 366 if February 29 fa lls w ith in th e year from d ate o f issu e) to o b ta in th e a m o u n t o f d isco u n t per year; and (4) d ivid in g th e a m o u n t o f d isco u n t per year by th e sale price o f th e b ill t o o b ta in t h e tru e d isco u n t rate. For e x a m p le: 91-day bill: P rincipal a m o u n t— m a tu rity v a l u e ________________________$100. 00 Price a t issue— a m o u n t rec e iv e d . 99. 50 T h e tru e d isco u n t rate o n a Treasury b ill o f n o t m ore th a n o n e-h a lf year in le n g th m ay be ascertained by (1 an d 2) o b ta in in g th e a m o u n t o f d isco u n t per day by fo llo w in g th e . 50 A m ou n t of d isc o u n t_________ ).50-h91 X 3 6 5 -f $99.50 = .02016 or 2.016 p ercent T a b le I —D ecim al fo r 1 D a y ’s I n t e r e s t o n $1,000 a t V a r io u s R a tes o f I n t e r e s t , P ay a b le S em ia n n u a lly o r o n a S em ia n n u a l B a s is , in R eg u la r Y e a r s o f 365 D ays an d in L e a p Y e a r s o f 366 D ays (to D e t e r m in e A pplica ble N u m b e r o f D a y s , S e e “ C o m pu ta tio n o f I n t e r e s t o n S e m ia n n u a l B a sis ” ) R ate per annum (percent) H .............................................. . H ..........- .................................. . H .............................................. . . h .............................................. . % ............................. - ............... . T .............................- ............... /i . ............................................. . 1J4.............................- ............. . V/%............................. - ............. . . l£fr— - ..................................... . 1x ..................... - ................... . . 2........ ....................................... . 2 H ............................................ . 214............................................ . 2% ........................... - ............... . . 2 h ............................................. . 2Va ............................................. . 2V i..................... - ..................... . . ....................... - ................... . . 3V6........- .................................. . 3 H ............................................ . W<............................................ . . 4____ _ ____ _ _ . ............................................. . 4K . . . % ............................................. Wt . 5k . 5% aJS............................................. 5»/8............................................. . 5Z ............................................. . A . 6.............................................. . ........................... .......................... ........................... ........................... ........................... H alf-year of 184 days $0.003 . 006 .010 .013 .016 .020 .023 . 027 . 030 . 033 .037 .040 .044 .047 . 050 . 054 . 057 .061 . 064 . 067 . 071 .074 . 078 .081 .084 . 088 . 091 .095 .098 . 101 . 105 . 108 . 112 .115 . 118 .122 . 125 . 129 .132 . 135 .139 . 142 . 146 . 149 . 152 .156 . 159 .163 396 793 190 586 983 380 777 173 570 967 364 760 157 554 951 347 744 141 538 934 331 728 125 521 918 315 711 108 505 902 298 695 092 489 885 282 679 076 472 869 266 663 059 456 853 250 646 043 739 478 217 957 696 435 174 913 652 391 130 870 609 348 087 826 565 304 043 783 522 261 000 739 478 217 957 696 435 174 913 652 391 130 870 609 348 087 826 565 304 043 783 522 261 000 739 478 Half-year of 183 days $0.003 . 006 . 010 .013 . 017 . 020 . 023 .027 . 030 .034 . 037 . 040 . 044 .047 . 051 .054 .058 .061 .064 .068 .071 .075 . 078 . 081 . 085 . 088 .092 . 095 . 099 . 102 . 105 . 109 .112 . 116 . 119 . 122 . 126 . 129 . 133 . 136 .140 . 143 . 146 . 150 .153 . 157 .160 . 163 415 830 245 661 076 491 907 322 737 153 568 983 398 814 229 644 060 475 890 306 721 136 551 967 382 797 213 628 043 459 874 289 7u4 120 535 950 366 781 196 612 027 442 857 273 688 103 519 934 301 601 902 202 503 803 104 404 705 005 306 607 907 208 508 809 109 410 710 011 311 612 913 213 514 814 115 415 716 016 317 617 918 219 519 820 120 421 721 022 322 623 923 224 525 825 126 426 Half-year of 182 days $0. 003 . 006 . 010 . 013 . 017 . 020 . 024 . 027 . 030 . 034 . 037 . 041 . 044 . 048 . 051 . 054 . 058 .061 . 065 . 068 . 072 . 075 . 078 . 082 . 085 . 089 . 092 . 096 . 099 . 103 . 106 . 109 . 113 . 116 . 120 . 123 . 127 . 130 . 133 . 137 .140 .144 . 147 .151 .154 . 157 . 161 . 164 434 868 302 736 170 604 038 472 906 340 774 208 642 076 510 945 379 813 247 681 115 549 983 417 851 285 719 153 587 021 456 890 324 758 192 626 060 494 928 362 796 230 664 098 532 967 401 835 066 132 198 264 330 396 462 527 593 659 725 791 857 923 989 055 121 187 253 319 385 451 516 582 648 714 780 846 912 978 044 110 176 242 308 374 440 505 571 637 703 769 835 901 967 033 099 165 Half-year of 181 days $0.003 . 006 . 010 .013 .017 . 020 . 024 . 027 . 031 . 034 . 037 . 041 . 044 . 048 . 051 . 055 . 058 .062 .065 . 069 . 072 . 075 .079 . 082 . 086 . 089 . 093 .096 .100 . 103 .107 . 110 . 113 . 117 . 120 . 124 . 127 .131 . 134 . 138 .141 . 145 .148 .151 .155 .158 . 162 . 165 453 906 359 812 265 718 171 624 077 530 983 436 889 342 795 248 701 154 607 060 513 966 419 872 325 779 232 685 138 591 044 497 950 403 856 309 762 215 668 121 574 027 480 933 386 839 292 745 039 077 116 155 193 232 271 309 348 387 425 464 503 541 580 619 657 696 735 773 812 851 890 928 967 006 044 083 122 160 199 238 270 315 354 392 431 470 508 547 586 624 663 702 740 779 818 856 T a b l e I I —D e c im a l f o e 1 D a y ’s I n t e r e s t o n $1,000 a t V a r io u s R a t e s o f I n t e r e s t , P a y a b l e A n n u a ll y o r o n a n A n n u a l B a s is , in R e g u l a r Y e a r s o f 365 D a y s a n d in L e a p Y e a r s o f 366 D a y s R ate per annum (percent) R egular year, 365 days $0.003 424 658 . 006 849 315 . 010 273 973 . 013 698 630 . 017 123 288 .020 547 945 . 023 972 603 . 027 397 260 . 030 821 918 . 034 246 575 .037 671 233 . 041 095 890 . 044 520 548 . 047 945 205 . 051 369 863 . 054 794 521 . 058 219 178 .061 643 836 . 065 068 493 .068 493 151 . 071 917 808 . 075 342 466 .078 767 123 .082 191 781 . 085 616 438 . 089 041 096 . 092 465 753 . 095 890 411 . 099 315 068 . 102 739 726 . 106 164 384 . 109 589 041 . 113 013 699 . 116 438 356 . 119 863 014 . 123 287 671 . 126 712 329 . 130 136 986 . 133 561 644 . 136 986 301 . 140 410 959 . 143 835 616 . 147 260 274 . 150 684 932 . 154 109 589 . 157 534 247 . 160 958 904 . 164 383 562 H ......................... X ......................... V s-....................... X ......................... *A....................... . X ......................... Vs......................... 1............... . m ....................... I X ..... . m ..................... . m ..................... . IH..................... . I X ..................... . V A - ................. . 2........................ 2 ys..................... . 2 X -................... W s..................... . 2X...................... . 2 H - ................. 2 X ..................... 2Vs.......... - ......... . 3........................ 3H ..................... 3 X ..................... . ZV%-................... . 3H ..................... 3%..................... . 3 X ..................... 3Vs..................... . 4........................ 4 H -................... . I X ..................... . 4V t..................... 4 ^ ..................... . 45*............. . 1%..................... . m ..................... . 5......................... . BVs..................... . 6 X ..................... . SV»..................... . 5J4............. . 5Vs..................... . 6 X ..................... . 5Va..................... . 6......................... A p p e n d ix to Leap year, 366 days $0.003 415 301 .006 830 601 . 010 245 902 .013 661 202 . 017 076 503 .020 491 803 .023 907 104 .027 322 404 . 030 737 705 . 034 153 005 . 037 568 306 . 040 983 607 . 044 398 907 . 047 814 208 . 051 229 508 .054 644 809 . 058 060 109 . 061 475 410 . 064 890 710 . 068 306 011 .071 721 311 . 075 136 612 . 078 551 913 . 081 967 213 . 085 382 514 . 088 797 814 .092 213 115 . 095 628 415 . 099 043 716 . 102 459 016 . 105 874 317 . 109 289 617 . 112 704 918 . 116 120 219 . 119 535 519 . 122 950 820 . 126 366 120 . 129 781 421 . 133 196 721 . 136 612 022 . 140 027 322 . 143 442 623 . 146 857 923 . 150 273 224 . 153 688 525 . 157 103 825 . 160 519 126 . 163 934 426 S ubpart O — B o o k -E n tr y P rocedure RECORDS FO R FEDERAL IN C O M E T AX P U R P O S E S There axe a tta ch ed th ree d o cu m en ts in co n n ectio n w ith th e b o o k -en try procedure w h ich sim p lify recordkeeping for Federal in com e ta x purposes. T h ey apply to tran sfer able Treasury bonds, n o tes, certificates o f in d eb ted n ess, or b ills issu ed u n d er th e Second Liberty B ond Act, as am en ded, a n d to “any o th er secu rity o f th e U n ite d S ta tes.” T he q u oted term is defined to in clu d e a bond, n o te, certifica te o f in d eb ted n ess, b ill, d e b en tu re, or sim ilar ob lig a tio n w h ich is su b ject to th e provision s o f 31 CFR Part 306, or o th er com parable F ederal reg u la tio n s an d w h ich is issu ed by an y d ep a rtm en t or agency of th e G overn m en t o f th e U n ited S ta tes, or th e F ederal N a tio n a l M ortgage A ssociation, th e Federal H om e Loan Banks, th e Federal Land B anks, th e Federal In term ed ia te Credit B anks, th e B an k s for C ooperatives, or th e T enn essee V alley A uthority. The th ree d o cu m en ts a r e : (1) T h e su b sta n ce o f Treasury D ep art m en t D ecision 7081, p u b lish ed in th e F e d e r a l R e g i s t e r on D ecem ber 31, 1970; 1 (2) R ev en u e R u lin g 71-21, p u b lish ed in In tern a l R even u e B u lle tin 1971-3, dated January 18, 1971; and (3) R even u e R u lin g 71-15, p u b lish ed in In tern al R ev en u e B u lle tin 1971-3, dated Jan u ary 18, 1971. T h e first d o cu m e n t m odifies th e ta x id en tifica tio n ru les regarding th e d eterm in a tio n o f b asis an d h o ld in g period o f secu rities h eld as in v estm en ts. I t ap p lies to th e sale or tran sfer o f b o o k -en try secu rities p u rsu a n t to a w ritten in str u c tio n by a taxpayer. It perm its th e taxpayer in its w ritten in stru c tio n to its b an k or to th e person th ro u g h w h om th e taxpayer m akes th e sale or tra n s fer to id e n tify th e secu rities b ein g sold or transferred by sp ecify in g th e u n iq u e lo t n u m b er w h ich h e h a s assign ed to th e lo t co n ta in in g th em . T he taxpayer m ay m ake th e sp ecification eith er— (a) in th e w ritten in stru ctio n , or (b) in th e case o f a taxpayer h av in g a booken try a cco u n t a t a Reserve bank, in a list of lo t n u m b ers w ith respect to all b o ok -en try secu rities o n th e books of th e R eserve b ank sold or transferred by h im on th a t date: P ro vid ed , T h e lis t is m ailed to or received by th e R eserve b an k on or before th e la tte r ’s n e x t b u sin ess day. T hese provision s apply o n ly if th e taxpayer a ssig n s lo t n u m b ers in nu m erical sequ en ce to su ccessiv e p u rch ases o f secu rities in th e sam e lo an t itle (series) a n d m a tu rity date, execp t th a t secu rities o f th e sam e loan title (series) an d m a tu rity d a te w h ich are p u r chased a t t h e sam e price o n th e sam e d ate m ay be in clu d ed w ith in th e sam e lot. T he w ritten advice o f tra n sa ctio n fu r n ish ed to th e taxpayer by th e Reserve bank, or by h is b ank or an y other person th ro u g h w h om t h e taxpayer m akes th e sale or tra n s fer, w h ich specifies th e a m o u n t and th e d e scrip tio n o f th e secu rities sold or transferred an d th e d a te o f th e tra n sa ctio n is sufficient con firm ation . T h e R eserve b an k n eed n o t u se or refer to th e lo t num ber. The secon d d o cu m en t con cern s an ow ner o f secu rities w h o h a s assign ed se q u en tia l n u m b ers to h is su ccessive purch ases. T h e ow ner reta in s fu ll in te rest in th e secu rities b u t tran sfers th e m to a b an k w h ich has a b o o k -en try a cco u n t w ith a R eserve bank, or 1 F iled as part o f th e original d o cu m en t. S ee 26 CFR 1.1012-1 (c) (7 ). 17 to a p o th er p arty w h ich tra n sfers th e m to a b an k w hidh <has a b o ok -en try a cco u n t w ith a Reserve bank. W hen a t a later d a te th e b an k In stru cts th e R eserve b an k to se ll or tran sfer secu rities h eld in book en try for Its cu stom er, th e b ank need n o t refer to th e se q u en tia l n u m b er w h ich h a d b een assign ed o n th e ow ner’s books. T he ta x id en tifica tio n req u irem en ts are sa tisfied if th e ow ner’s w ritten In stru ctio n to h is b an k or to th e p erson th ro u g h w hom th e taxpayer m akes t h e sale or tran sfer su fficien tly id en tifies th e secu rities to be so ld or transferred an d refers to th e lo t n u m b er assign ed to th e m In th e ow n er’s books. T h e b a n k ’s in stru ctio n to th e R eserve ban k w ill n o t refer t o lo t num bers; t h e R e serve b a n k w ill confirm th e sa le to th e b an k In t h e m an n er it d eem s appropriate. T h e m em b er b an k w ill confirm th e sa le or tra n s fer to Its cu stom er by fu r n ish in g a w ritten advice o f tra n sa ctio n sp ecifyin g th e a m o u n t an d d escrip tio n o f t h e secu rities sold an d th e d a te o f sale. T h e co n firm ation n eed n o t refer to lo t num ber. T h is d o cu m e n t also p erm its su b sta n tia lly th e sa m e k in d o f id en tifica tio n an d confirm a tio n p rocedures w h en se cu rities are purch ased th rou g h th e b o o k -en try a cco u n t for th e b a n k ’s cu stom ers. T h e th ird d o cu m e n t provides th a t a dealer, w h o properly h o ld s secu rities In Inventory in accordance w ith § 1.471-5 o f th e In co m e T ax R eg u la tio n s an d proposes to tran sfer th e m to a b o o k -en try sy stem in a R eserve bank, w ill c o n tin u e to m a in ta in h is books and rec ords for Federal Incom e ta x p urposes w ith resp ect to su ch secu rities In accordance w ith S 1.471-5 o f th e reg u la tio n s an d n o t § 1.1012-1 o f th e reg u la tio n s. S e c t io n 1012— B a s i s of P r o perty— C o st 26 CFR 1.1012.1 B asis o f p r o p e r ty . R ev. R u l. 71 -21.1 A taxpayer ow n s as In vestm en ts T reasury secu rities a n d certa in o th er se cu ri tie s described in th e n ew S 1.1012-1 (c) (7) (ill) (a ) o f th e In com e Tax R eg u la tio n s. T he taxpayer ow ner w ill a ssign a lo t n u m b er to 1 A lso released as T ech n ica l In fo rm a tio n R elease 1063, d a ted D ec. 30,1970. th e se cu rities In h is books. T h e n u m b ers w ill be assign ed in n u m erica l seq u en ce to su cc es sive p u rch ases o f th e sam e lo a n t itle (series) an d m a tu rity d a te, ex cep t th a t secu rities o f th e sam e lo a n t itle (series) an d m a tu rity d a te w h ich are p u rch ased a t th e sam e price o n th e sam e d a te m ay be Inclu d ed in th e sam e lo t. T he owner proposes to reta in f u ll Interest in th e se cu rities b u t h e w ill tran sfer p o sses sio n o f th e m to a bank. T h a t ban k w ill n o t keep records o f th e secu rities by u se o f th e above-described lo t num b ers. T h e b an k w ill also ta k e p o ssessio n of lik e secu rities for other taxpayers. T h e b a n k w ill tran sfer a ll o f th e se secu ri tie s to a b o o k -en try sy stem o f a Federal Reserve bank. T h e se cu rities w ill be en tries in th e b o o k -en try a cco u n t o f th e bank and, as su ch , th e secu rities w ill n o lon ger ex ist in d efin itiv e form . T h a t a cco u n t w ill n o t reflect th e fa c t t h a t th e b ank h o ld s se cu rities for several taxpayers. W hen th e ow ner w ish es to sell certain secu rities, h e w ill so In stru ct th e b an k in w ritin g. T h e ow n er’s in stru ctio n w ill s u f ficien tly id e n tify th e se cu rities to be sold, an d w ill a lso refer t o th e lo t n u m b er a s sig n ed in th e books o f th e ow ner to th e secu rities to be sold. T h e b ank w ill th e n In struct, in w riting, th e Federal Reserve bank to tran sfer th e secu rities. T he la tter In stru c tio n w ill n o t refer to t h e p ertin en t lo t n u m ber. T h e Federal R eserve b ank w ill confirm t h e sa le to th e ban k in th e m ann er it d eem s appropriate. T h e b a n k w ill confirm th e sale t o th e ow ner by fu r n ish in g a w ritte n advice o f tra n sa ctio n sp ecify in g th e a m o u n t and d escrip tion of th e se cu rities sold an d th e d a te o f th e sale. T he con firm ation w ill n o t refer to lo t num bers. W hen t h e ow ner desires t o b u y a d d itio n a l secu rities as In v estm en ts o f th e k in d d e scribed in th e n ew § 1.1012-1 (c) (7) (111) (a) o f th e regu lation s, h e w ill order th e b an k to p u rch ase th e m . T h e b an k w ill In stru ct th e Federal R eserve b ank to o b ta in th e secu rities and to p u t th e m In th e b a n k ’s b o o k -en try accou n t. T he con firm ation o f th e p u rch ase from th e Federal Reserve b an k to t h e b an k and from th e ban k to th e ow ner w ill b e o f th e n a tu re u sed for t h e sale o f secu rities. T he ow ner w ill a ssig n lo t n u m b ers in th e m ann er d escribed above to th e se purchased s e c u r itie s: H eld, th e above procedure Is c o n siste n t w ith th e ta x record req u irem en ts o f n ew § 1.1012-1 (c) (7) o f th e regu lations. T h is pro cedure exem p lifies t h e tax record req u ire m e n ts w h en secu rities are transferred by p arties to a b an k w ho h as an a cco u n t in th e b o o k -en try sy stem o f a Federal R eserve bank. T he ta x record req u irem en ts in th e case o f a b an k w ho p u ts its ow n In v estm en t secu rities in th e b o o k -en try system are se t fo rth in new § 1.1012-1 (c) (7) o f th e regu lations. S e c t io n 471— G e n e r a l R u l e fo r I n v e n t o r ie s 26 CFR 1.471-5 In v e n to r ie s b y dealers in R ev. R u l. 7 1 - 1 5 1 se cu rities. (A lso se c tio n 1012; 1.1012-1.) A dealer, as d efined In se c tio n 1.471-5 o f th e In co m e T ax R eg u la tio n s, h old s Treasury secu rities and o th er secu rities o f t h e U n ited S ta tes. "Other secu rities o f th e U n ite d S tates" m ea n s a tran sferab le bond, n ote, certificate o f In d eb ted n ess, b ill, d e b en tu re, or sim ilar o b lig a tio n w h ich is su b je c t to th e p rovision s o f 31 CFR Part 306 or o th er com parable F ederal reg u la tio n s an d w h ich is issu ed by (1) an y d ep artm en t or agen cy o f t h e G overn m en t o f th e U n ited S ta tes, or (2) th e Federal N a tion al M ortgage A ssociation, th e F ederal H om e L oan Bank, th e Federal Land B anks, th e Federal In te r m ed ia te Credit B anks, t h e B an k s for Co operatives, or th e T enn essee Valley A u thority. T h e d ealer properly h old s su ch secu rities In Inventory In accordance w ith I 1.471-5 o f th e In co m e Tax R egu la tion s. He proposes to tran sfer th o se secu rities to a b o ok -en try sy stem m a in ta in ed by a Federal Reserve bank. T he dealer w ill co n tin u e to m a in ta in h is books an d records for Federal Incom e tax p urposes w ith respect to su ch secu rities in accordance w ith § 1.471-5 o f th e regu la tion s. H eld, th e dealer Is n o t su b ject t o th e pro v isio n s o f § 1.1012-1 o f t h e reg u la tio n s rela t in g to Id en tificatio n o f property w ith resp ect to su ch secu rities. S u ch a dealer m u st, h o w ever, com ply w ith t h e p rovision s o f § 1.471-5 o f th e reg u la tio n s rela tin g to Inventory by dealers in secu rities. [FR D oc.73-4897 F iled 3 -1 4 -7 3 ;8 :4 5 am ] 1Also released as T ech n ica l In fo rm a tio n R elease 1064, dated Jan . 14,1971. U .S. GOVERNMENT PRINTING OFFICE :1973- 0 - 499-114