Full text of District Notices (Federal Reserve Bank of Dallas) : [Treasury Department Circular No. 300, 4th Revision - General Regulations Governing United States Securities], Circular No. 73-125

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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