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federal reserve bank of

DALLAS, TE X A S

D allas

75222

Circular No. 83-48
March 25, 1983

BOOKLET
UNITED STATES TREASURY SECURITIES:

BASIC INFORMATION

TO ALL DEPOSITORY INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
Enclosed is a copy of a new booklet, "United States Treasury Securities:
Basic Information", which was published by the Federal Reserve Bank of Dallas.
This booklet was designed to assist members of the public interested in investing
in U.S. Treasury bills, notes, or bonds, and contains descriptive information,
application and purchase procedures, and telephone numbers and addresses to
c ontact for additional information.
Single additional copies of the booklet or this circular will be furnished
upon request to the Public Affairs Departm ent, Extension 6289.
Sincerely yours,

William H. Wallace
First Vice President
Enclosure

B a n k s a n d o t h e r s ar e e n c o u r a g e d to use th e fo llo w in g in c o m in g W A T S n u m b e r s in c o n t a c t in g th is Bank:
1-800-442-7 140 ( in tr a s t a te ) a n d 1-8 00-527 -9 20 0 (in te r s ta te ). Fo r c a lls p l a c e d lo cally, p le a s e us e 651 p lu s th e
e x t e n s io n refe rred to ab ove.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

UJNFITT]

STATl
TREA
SECU
BASIC INF<

The information in this pamphlet is designed to assist the public interested in investing in
United States Treasury bills, notes or bonds.

DESCRIPTION
________ BILLS_________

_______ NO TES________

_______ BO NDS________

Treasury bills are always bookentry.

Treasury notes may be either bookentry or definitive.

Treasury bonds may be either bookentry or definitive.

Book-entry bills are obtained through
the Treasury, a Federal Reserve
Bank, or a financial institution. These
securities are handled by Reserve
Banks but are ultimately transferred
to the Treasury.

Book-entry notes are obtained only
through a financial institution.

Book-entry bonds are obtained only
through a financial institution.

Definitive registered notes are
obtained through the Treasury, a
Federal Reserve Bank or a financial
institution.

Definitive registered bonds are
obtained through the Treasury, a
Federal Reserve Bank or a financial
institution.

Always discounted. The face value
is paid at purchase. A check for the
discount as set by the auction is sent
immediately and the face value is
returned at maturity.

Usually discounted. The face value is
paid at purchase. Periodic interest
payments as set by the auction are
paid semi-annually during the life of
the note and the face value is
returned at maturity.

Usually discounted. The face value is
paid at purchase. Periodic interest
payments as set by the auction are
paid semi-annually during the life of
the bond and the face value is
returned at maturity.

1

DENOM INATION
BILLS
$10,000 minimum, thereafter in
multiples of $5,000.

2

NOTES

BONDS

$1,000, $5,000, $10,000, $100,000
and $1 million denominations. Mini­
mum varies with each issue.

$1,000, $5,000, $10,000, $100,000
and $1 million denominations. Mini­
m um varies with each issue.

BILLS
3 months (13 weeks).
6 months (26 weeks).
1 year (52 weeks).

NOTES
2-10 years.
Varies with each issue.

MATURITY
BONDS
Over 10 years.
Varies with each issue.

3

SOLD OR AUCTIONED
________ BILLS________

_______ N O T E S_______

_______ B O N D S ____

Every Monday, for 3-month and
6-month bills. If Monday is a holi­
day, then they are auctioned the
previous Friday or the following
Tuesday. One-year bills are usually
auctioned every 4 weeks on a
Thursday.

Usually once a month or whenever
the Treasury's needs arise. Quarter­
ly financing occurs in February,
May, August and November.

Several times a year, usually in
February, May, August and
November.

Orders or tenders may be submitted
until 12:30 PM Central Time on the
day of the auction.

Orders or tenders may be submitted
until 12:30 PM Central Time on the
day of the auction.

Orders or tenders may be submitted
until 12:30 PM Central Time on the
day of the auction.

4

INTEREST
________ BILLS________

_______ N O T E S________

_______ B O N D S ________

The price and the discount rate are
not known prior to the auction since
they are determined by competitive
bidding.

The price and the coupon rate are
not known prior to the auction since
they are determined by competitive
bidding.

The price and the coupon rate are
not known prior to the auction since
they are determined by competitive
bidding.

Paid semi-annually. The method of
payment depends on the type of
security.

Paid semi-annually. The method of
payment depends on the type of
security.

Book-entry:
Interest paid by the Federal Reserve
Bank or financial institution holding
the book-entry account.

Book-entry:
Interest paid by the Federal Reserve
Bank or financial institution holding
the book-entry account.

Definitive:
Semi-annual interest check is mailed
automatically from the Treasury.

Definitive:
Semi-annual interest check is mailed
automatically from the Treasury.

Income considered earned each year.

Income considered earned each year.

Refund (discount) check will be
mailed on the issue date, usually the
Thursday following a Monday
auction.
If purchased directly through the
Treasury, the Treasury will mail the
check.
If purchased through a Federal
Reserve Bank, the Federal Reserve
Bank will mail the check.
If purchased through a financial
institution or brokerage firm, the
payment method will be determined
by that institution.
Income not considered earned until
the bill has matured or unless it's
sold prior to maturity.

5

TAXES
BILLS

NOTES

BONDS

Exempt from state and local.

Exempt from state and local.

Exempt from state and local.

Must pay federal.

Must pay federal.

Must pay federal.

6

TENDER FORMS
N EED ED FOR PURCHASE
BILLS
3 months (13 weeks)—PD 4632-3.
6 months (26 weeks)—PD 4632-2.
1 year (52 weeks)—PD 4632-1.

NOTES

BONDS

Forms provided for each new issue.

Forms provided for each new issue.

7

LETTER AS
APPLICATION FOR PURCHASE
BILLS

NOTES

BONDS

If a tender form is not obtained, a
letter containing the following infor­
mation may be used as a purchase
application.
1) Identify the type of security:
3-month, 6-month, 1-year.
2) Dollar amount.
3) Name(s)-please print. There is a
two-name limit.
4) Social security number(s).
5) Address.
6) Telephone numbers: business and
home.
7) Signature.
8) Include check.

If a tender form is not obtained, a
letter containing the following infor­
mation may be used as a purchase
application.
1) Identify the series of the note
being purchased.
2) Dollar amount.
3) Name(s)-please print.
4) Social security number(s).
5) Address.
6) Telephone numbers: business and
home.
7) Signature.
8) Include check.

If a tender form is not obtained, a
letter containing the following infor­
mation may be used as a purchase
application.
1) Identify the bond being
purchased.
2) Dollar amount.
3) Name(s)-please print.
4) Social security number(s).
5) Address.
6) Telephone numbers: business and
home.
7) Signature.
8) Include check.

8

PAYMENT
________ BILLS________

_______ N O TES________

_______ B O N D S ________

Full payment for the face value of
the bill must accompany the
tender if purchased through a
Federal Reserve Bank.

Full payment for the face value of
the note plus accrued interest, if any,
must accompany the tender if
purchased through a Federal
Reserve Bank.

Full payment for the face value of
the bond plus accrued interest, if
any, must accompany the tender if
purchased through a Federal
Reserve Bank.

Payment can be made in U.S.
currency, matured Treasury securi­
ties, or by check. Checks issued by a
commercial bank, savings and loan
association, savings bank, or credit
union are acceptable.

Payment can be made in U.S.
currency, matured Treasury securi­
ties, or by check. Checks issued by a
commercial bank, savings and loan
association, savings bank, or credit
union are acceptable.

Payment can be made in U.S.
currency, matured Treasury securi­
ties, or by check. Checks issued by a
commercial bank, savings and loan
association, savings bank, or credit
union are acceptable.

Personal checks are n ot acceptable
unless certified. A U. S. Treasury
check which was issued in payment
for a maturing security may be used.

Personal checks are acceptable.
A U.S. Treasury check which was
issued in payment for a maturing
security may be used.

Personal checks are acceptable.
A U.S. Treasury check which was
issued in payment for a maturing
security may be used.

Checks must be made payable to the
Federal Reserve Bank. They cannot
be endorsed over to the Federal
Reserve Bank.

Checks must be made payable to the
Federal Reserve Bank. They cannot
be endorsed over to the Federal
Reserve Bank.

Checks must be made payable to the
Federal Reserve Bank. They cannot
be endorsed over to the Federal
Reserve Bank.

Checks must be drawn on an insti­
tution in the Eleventh Federal
Reserve District.

Checks must be drawn on an insti­
tution in the Eleventh Federal
Reserve District.

Checks must be drawn on an insti­
tution in the Eleventh Federal
Reserve District.

9

FORMS OF OW NERSHIP
OR RECORDATION
BILLS

NOTES

BONDS

Financial institutions can record the
transaction through their book-entry
account at a Federal Reserve Bank
for their customer's accounts or
their own account.

Book-entry:
Financial institutions can record the
transaction through their book-entry
account at a Federal Reserve Bank
for their customer's accounts or
their own account.

Book-entry:
Financial institutions can record the
transaction through their book-entry
account at a Federal Reserve Bank
for their customer's accounts or
their own account.

Individuals can keep book-entry
accounts with the Department of the
Treasury by submitting an
application to a Federal Reserve
Bank.

Definitive:
Individuals and financial institutions
can purchase registered securities
at a Federal Reserve Bank.

Definitive:
Individuals and financial institutions
can purchase registered securities
at a Federal Reserve Bank.

Acceptable recordations:

Acceptable registrations:

Acceptable registrations:

One name: John A. Doe,
social security number
and address.

One name: John A. Doe,
social security number
and address.

One name: John A. Doe,
social security number
and address.

(C ontinued on page 111

10

FORMS OF OW NERSHIP
OR RECORDATION (Cont.)
BILLS

NOTES

BONDS

Two names: John A. Doe,
social security number
and address; or
Mary B. Doe and
social security number.

Two names: John A. Doe,
social security number
and address; or
Mary B. Doe and
social security number.

Two names: John A. Doe,
social security number
and address; or
Mary B. Doe and
social security number.

Only one social security number is
required, and that person will
assume the responsibility for taxes.

Only one social security number is
required, and that person will
assume the responsibility for taxes.

Only one social security num ber is
required, and that person will
assume the responsibility for taxes.

Other recordations such as trusts,
partnerships, corporations, pension
funds, etc. are acceptable.

Other registrations such as trusts,
partnerships, corporations, pension
funds, etc. are acceptable.

Other registrations such as trusts,
partnerships, corporations, pension
funds, etc. are acceptable.

11

SELLING BEFORE MATURITY
________ BILLS ________

_______ NO TES_____

_______ B O N D S ______

If purchased through a financial
institution, contact financial
institution regarding sale or transfer.

All notes must be sold through a
broker or a financial institution
that handles securities.

All bonds must be sold through a
broker or a financial institution
that handles securities.

If purchased through the Federal
Reserve Bank or Treasury Depart­
ment, the account must be trans­
ferred to an account maintained
by a financial institution before
sale can take place.

12

LOST OR STOLEN
BILLS

NOTES

BONDS

Ownership of book-entry securities
cannot be lost even if the statement is
lost or stolen.

Notification of lost registered notes
should be communicated directly to
the Treasury Department. Interest
checks will continue from the
Treasury Department.

Notification of lost registered bonds
should be communicated directly to
the Treasury Department. Interest
checks will continue from the
Treasury Department.

13

REINVESTMENT OR ROLLOVER
________ BILLS________

_______ NO TES_______

_______ B O N D S________

Arrangements for reinvestment
or rollover of bills held in a
Treasury book-entry account may
be made on the tender form at
the time of initial purchase.

Maturing notes may be used to pur­
chase new securities. They must be
submitted with a letter of intent or an
appropriate application prior to the
auction date of the security being
purchased.

Maturing bonds may be used to pur­
chase new securities. They must be
submitted with a letter of intent or an
appropriate application prior to the
auction date of the security being
purchased.

If the Treasury is instructed to
roll over the bills at the time of
initial purchase, this instruction will
apply only to the first rollover of
these bills. Supplemental instructions
to the Treasury are required for
subsequent rollover requests.
If reinvestment is not indicated at the
time of purchase, the Treasury will
supply a card (Form PD 4633-2)
which should be returned 20
business days prior to maturity to
reinvest.
(C ontin ued on page 15)

14

REINVESTMENT OR ROLLOVER
________ BILLS_________

_______ NO TES________

(Cont.)

_______ BONDS

If reinvestment or redemption
is indicated at the time of initial
purchase and subsequently needs to
be revoked, a notarized Form
PD 4633 should be submitted to
the Treasury.
If no instructions are given, the bill
will automatically be redeemed at
maturity and a redemption check will
be mailed from the Treasury by the
maturity date.

15

REDEM PTION
________ BILLS________

_______ NO TES________

_______ B O N D S ________

Bills will automatically be redeemed
by the Treasury at maturity and a
check for the proceeds will be mailed
unless reinvestment instructions
are given at time of purchase or sent
to the Treasury at least 20 business
days prior to maturity.

Maturing notes may be delivered in
person or sent to the Federal Reserve
Bank by registered insured mail
10 days before maturity.

Maturing bonds may be delivered in
person or sent to the Federal Reserve
Bank by registered insured mail
10 days before maturity.

All Treasury notes must be redeemed
by a Federal Reserve Bank;
however, they may be presented
for payment through a financial
institution.

All Treasury bonds must be re­
deemed by a Federal Reserve Bank;
however, they may be presented
for payment through a financial
institution.

Registered securities presented one
year or more after the maturity date
require a certificate of ownership
(Form PD 1071) certified by an
authorized officer of a financial insti­
tution or notary public.

Registered securities presented one
year or more after the maturity date
require a certificate of ownership
(Form PD 1071) certified by an
authorized officer of a financial insti­
tution or notary public.

16

RECORDED MESSAGES
Information on current rates:
(214) 651-6177
Dallas
(214) 263-1093
Metro number (Dallas/Fort Worth area)
1 (800) 442-7390
Toll-free Intrastate WATS number (in Texas,but outside Dallas/Fort Worth area)
1 (800) 527-9208
Toll-free Interstate WATS number (outside of
Texas)
Current Treasury offerings of notes and bonds:
(214) 651-6384
Dallas

17

TELEPHONE NUM BERS
Forms (bills, notes, bonds) and related information:
(214) 651-6362
Federal Reserve Bank of Dallas
Problems with receiving statement of account, interest checks, etc.:
(202) 287-4113
Department of the Treasury, Washington, D.C.
New offerings of notes and bonds:
(202) 287-4113
Department of the Treasury, Washington, D.C.
Information regarding securities can be obtained from Federal Reserve branch offices by dialing the main
numbers listed below and asking for the Marketable Issues Division.
El Paso

(915) 544-4730
(800) 351-1012 (Intrastate incoming WATS)
(800) 392-1631 (Interstate incoming WATS)

Houston

(713) 659-4433

San Antonio

(512) 224-2141

18

ADDRESSES
BILLS

NOTES

BONDS

Problems with receiving statement of
accounts, etc.:

Problems with receiving interest
checks, etc.:

Problems with receiving interest
checks, etc.:

Bureau of the Public Debt
Department X
Washington, D.C. 20226

Bureau of the Public Debt
Department A
Washington, D.C. 20226

Bureau of the Public Debt
Registered Securities
U.S. Treasury Dept.
Washington, D.C. 20226

A letter of application or tender form to purchase securities should be sent to the appropriate address listed below.
Dallas office:

Tender for Securities
Securities Department
Federal Reserve Bank of Dallas
Station K
Dallas, Texas 75222

Houston Branch office:

Tender for Securities
Fiscal Agency Department
Houston Branch
Federal Reserve Bank of Dallas
P.O. Box 2578
Houston, Texas 77252
(C ontin ued on page 20)

19

ADDRESSES

20

(Cont.)

El Paso Branch office:

Tender for Securities
Cash/Fiscal Agency Department
El Paso Branch
Federal Reserve Bank of Dallas
P.O. Box 100
El Paso, Texas 79999

San Antonio Branch office:

Tender for Securities
Cash/Fiscal Agency Department
San Antonio Branch
Federal Reserve Bank of Dallas
P.O. Box 1471
San Antonio, Texas 78295

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