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F E D E R A L R E S E R V E BANK
O F NEW YORK
Fiscal Agent of the United States
r Circular No. 3 1 4 7 "I
L October 24, 1946 J

A R M E D FORCES LE A V E BONDS

To all Banking Institutions in the
Second Federal Reserve District:

A t the request of the Treasury Department we send you herewith,
printed on the follow ing pages, a memorandum covering certain infor­
mation o f general interest with respect to Armed Forces Leave Bonds
and checks.
Treasury Department Circular No. 793, containing regulations
governing Armed Forces Leave Bonds, and Form PD 2066, A pplica­
tion by Survivors fo r Payment o f Bond or Check issued under the
Armed Forces Leave A ct o f 1946, will be available shortly.
Additional copies o f this circular may be obtained upon request.




A

llan

S proul,

President.




TREASU RY DEPARTM ENT
Washington

October 14, 1946

The following information relative to Armed Forces Leave Bonds and checks issued
pursuant to the Armed Forces Leave Act o f 1946 is released by the Treasury Department
for the information of banking institutions to assist them in rendering assistance to vet­
erans in connection with these payments. This memorandum is not to be construed as a
regulation but is issued for general information purposes only.

Determination of Amounts Due.
1. All determinations o f compensation due under the act will be made by the respective
branches o f the Armed Services, i. e. the Army, Navy, Marine Corps, and Coast Guard.
These determinations will be made on the basis of applications submitted by persons
entitled. Application forms, which may be obtained at any post office, contain information
as to persons eligible to receive this compensation, method o f computing amounts due for
unused leave, supporting papers required to be sent with claim, place to which applications
are to be sent and other instructions relative to the manner in which the claim is to be pre­
pared and submitted.

Method o f Making Payments.
2. On the basis o f approved applications the respective branches of the Armed Serv­
ices will make payments in bonds and checks on the following b asis:
a. Where the veteran was discharged prior to January 1, 1943, or where the total amount due is
less than $50, the entire amount of the claim will be paid by check drawn on the Treasurer of
the United States. The entire amount of the claim will also be paid by check where application
is made by other than the person entitled (e. g. where veteran is deceased).
b. In all other cases the claim will be paid by issuance of one registered United States Armed
Forces Leave Bond to the highest multiple of $25, and a check drawn on the Treasurer of the
United States for any balance. For example, a claim for $162.50 of a veteran discharged in
August of 1943 will be paid by one bond for $150 and a check for $12.50. The War Depart­
ment will issue checks and bonds through 24 Army Finance offices located in various parts of
the United States, and 5 offices outside the continental limits. The locations of these offices
are shown on page 2 of the application form. The Navy Department will issue all bonds and
checks from Great Lakes, Illinois. The Coast Guard and Marine Corps will issue all bonds and
checks from Washington, D. C.

General Terms and Conditions o f Checks Drawn on Treasurer
o f the United States in Payment o f Terminal Leave.
3. Checks drawn on the Treasurer o f the United States in payment o f terminal leave
will show on their face the legend “ Armed Forces Leave” . These checks are subject to




the terms and conditions o f Treasurer’s checks generally as contained in applicable
Treasury circulars. They should be cashed by banks only on the basis of endorsement by
the payee, or pursuant to a power o f attorney completely describing the check and executed
after the issuance thereof. Under no circumstances should a bank cash a check on the
basis o f endorsement by an executor, administrator or survivor o f a deceased payee.
Persons presenting such checks, which have not been endorsed by the payees, should be
referred to the Federal Reserve Bank o f the district.
4.
Of special importance in the case of these checks are the provisions o f the Armed
Forces Leave Act, relative to payment to survivors in case o f death o f the payee. The Act
specifically defines the survivors entitled to payment (later described herein) and author­
izes the Secretary o f the Treasury to settle all claims o f survivors in connection with such
checks. The settling of such claims will be delegated by the Secretary o f the Treasury to
the Federal Reserve Banks to whom survivors should be referred in connection with
uncashed checks.

General Terms and Conditions of Armed Forces Leave Bonds.
5. Term s, Issue Date and Interest. Armed Forces Leave Bonds will be issued in
denominations in multiples o f $25, beginning with $50 (such as $50, $75, $100, $125, etc.)
and will have a five-year term. They will bear simple interest at 2% percent from issue
date. Issue dates will be inscribed on each bond at time o f issue and will be based on the
date o f discharge from the service and not the date that the bond is actually issued. Bonds
issued to members still in the service will carry an issue date o f October 1, 1946. The first
quarterly issue date will be A pril 1, 1943 and the last October 1, 1946, making a total o f 15
issue dates. Interest on each bond will start retroactively with the issue date shown
thereon. Thus a bond issued to a veteran discharged in February o f 1943 would be dated
A pril 1,1943, would mature and be payable in five years from that date with interest at 2%
percent per annum (or 12% percent for the five years) on April 1,1948, regardless of when
the bond is actually issued and sent to the veteran.
6. Registration. The bonds will be issued only in registered form, in the name of the
person entitled. (There will be no coowners, beneficiaries, etc.) The name and service or
serial number o f the person entitled will be inscribed in the bond. I f desired by the issuing
branch of the service the address also may be shown but it is not required. Payment on
redemption will be made at maturity only to the registered owner except in the case o f his
death. Federal Reserve Banks, as Fiscal Agents o f the United States, will handle claims
o f survivors in the event o f death of the registered owners. Claims on bonds and checks
may be handled in one transaction.
7. N on-transfer ability. The bonds are not transferable by sale, exchange, assign­
ment, pledge, hypothecation, or otherwise, and they cannot be used as collateral for a
loan. As later described, they may, however, be assigned to the Adm inistrator of Veterans
A ffairs in payment o f National Service L ife or ■Government L ife Insurance premiums,
cost o f conversion o f such insurance, and policy loans.




4

8. Redemption. The bonds are redeemable by the registered owner only at their
maturity, at which time payment will be made in one amount for principal and interest.
Since the earliest quarterly issue date is A pril 1943 and the last October 1946, the bonds
will mature at quarterly intervals beginning A pril 1948. Redemption prior to maturity is
authorized only in the case o f death o f the registered owner, in which case his survivors
may obtain redemption (with interest to the end of the month in which redemption is
made), and distribution of the proceeds prior to maturity as later described.
9. Taxability. The bonds are exempt from all taxation but the interest thereon is
taxable.
Form o f Bond.
10. The bond will be in the form o f a distinctively designed punched card, similar in
principle to punched card T reasurer’s checks. Distinctively designed protective paper
stock will be used. The bonds bear the portrait o f the late Carter Glass, former Secretary
o f the Treasury, the facsimile signature o f Secretary o f the Treasury, John W . Snyder,
an imprint in red o f the seal o f the Treasury, and the legend ‘ ‘ Armed Forces Leave B on d ” .
11. The bond stock is non-denominational and the amount will be inscribed on the
bond only at time of issue. The amount will be imprinted twice, in specified blocks, on
the face o f the bond, in much the same way as amounts are imprinted on Treasurer’ s
checks. The issue date and name, and service or serial number, will also be inscribed on
the bond at time o f issue.
Time Required for Processing Applications and Issuance and Delivery of Bonds and Checks.
12. Bonds have been delivered to the issuing branches o f the Armed Services. H ow ­
ever, the processing of the applications and issuance of bonds and checks may require
considerable time, in view o f the large number o f applications involved. It should be noted
that any delay in this respect Avill not penalize the veteran in connection with his bond,
because the bond, when received, will in any event be dated on the basis o f his date of
discharge and will bear no relation to the date it was actually issued and delivered to him.
Delivery o f Bonds and Checks.
13. Bonds and checks will be mailed to owners by regular mail to the addresses
indicated on their applications. In some instances the services may mail bonds and checks
in the same envelope, while in others they may be mailed separately.

Errors in Amount, Issue Date, or Inscription on Bonds.
14. E rrors in the amount or issue date o f a bond or in the inscription o f name, service
or serial number o f the owner, (resulting either from an error in the original application
or otherwise), should be taken up with the respective issuing office o f the service. In such
cases the issuing office, upon review o f the facts involved and return o f the bond, will
issue a corrected bond.




5

Bonds Lost, Stolen or Destroyed.
15. Registered owners, upon submission o f required evidence, may obtain relief, by
issuance of substitute bonds, in case o f loss, theft, destruction, mutilation, or defacement,
o f Armed Forces Leave Bonds, where such bonds have previously been delivered to them
or their representatives. In any such cases, notice of the facts (including as complete a
description as possible of the bond as to amount, issue date, serial number, and name and
service or serial number of the registered owner) should be given to the Treasury D epart­
ment, Division of Loans and Currency, Washington 25, D. C., Avhich will handle all claims
o f this nature. These claims will not be handled by Federal Reserve Banks.
16. Claims arising from non-delivery of bonds (i. e. loss or destruction prior to
delivery to registered owner) should be taken up with the issuing offices which, upon
receipt o f appropriate evidence, will issue replacement bonds in such cases.
Assignment o f Bonds to Veterans Administration.
17. A veteran may assign his bond to the Administrator o f Veterans Affairs, in con­
nection with either National Service L ife Insurance or Government L ife Insurance, for
any o f the following purposes:
a. Payment of premiums in advance on policy in force.

b. Payment of premiums to cover new insurance applied for.
c. Payment of premiums for reinstatement of a lapsed policy and payment of premiums thereon
in advance.
d. Payment for the difference in reserve for conversion of policy in force and payment of pre­
miums in advance.
e. Payment of all or part of a policy loan made prior to July 31,1946, and interest on such loan.

18. Regulations o f the Administrator o f Veterans A ffairs will govern the procedure
fo r the making o f these assignments and the granting of credit on the books o f the Veterans
Administration. It is understood these regulations will be issued at an early date and that
any office o f the Veterans Administration will provide veterans with full information rela­
tive to their rights and privileges and the procedure to be followed.
Applications o f Survivors in Deceased Cases.
19. In the case of death o f a person to whom an Armed Forces Leave Bond has
been issued his survivors, as defined in the Act, may obtain redemption o f the bond and
distribution o f the proceeds (including interest to the end o f the month in which the bond
is redeemed but not after its m aturity), prior to, upon, or after its maturity, upon applica­
tion at the option o f such survivors. The A ct specifies that the survivors entitled will
consist of the surviving spouse and children, if any, in equal shares, and if no surviving
spouse or child, or children, then in equal shares to the holder’s surviving parents, if any.
I f there is no such survivor, any such bond will be retired and the amount thereof covered
into the general fund o f the Treasury.
20. The same rules fo r rights o f survivors apply in the case o f Armed Forces Leave
checks where payees have died before cashing them. This includes both odd amount checks




and cnecks issued in full settlement of unused terminal leave (i. e. where amount of claim
was less than $50, or where date of discharge was prior to January 1, 1943.)
21. Applications by survivors on either bonds or checks will, under the Act, be
handled by the Secretary o f the Treasury. The applicable regulations will be contained
in Treasury Circular No. 793. Federal Reserve Banks, acting as Fiscal Agents of the
United States, will be empowered to settle these claims in behalf of the Secretary o f the
Treasury. This work will be done only by the twelve main Federal Reserve Banks and
not by the branches. Where both a bond and a check are involved for the same deceased
owner the application can be handled as one transaction and one distribution of the
proceeds will be made for both.
22. Survivors who desire to make application for payment of either or both bonds
and checks should be referred to the Federal Reserve Bank of the district which will supply
the necessary form on which application should be made, and any other instructions.
23. In view o f the specific provisions o f the A ct relative to rights o f survivors, it is
important that Arm ed Forces Leave Checks not be cashed by banks on the basis of endorse­
ment by an executor, administrator or survivor.

Redemption o f Bonds at Maturity.
24. It is contemplated that the Treasury will be in a position to have these bonds
redeemable at maturity through commercial banks, as paying agents, in much the same
way as is now done for Savings Bonds o f Series A -E . This will be contingent upon the
enactment o f the necessary authorizing legislation by the Congress. It is also contemplated
that the Federal Reserve Banks will function as agents o f the Treasurer of the United
States in handling transactions by paying agents as they now do for Savings Bonds.
Inform ation relative to payment at maturity will be provided prior to A pril 1, 1948, the
first maturity date.

Records of Bonds to be maintained by Treasury Department.
25. The Treasury Department will maintain, in Washington, D. C., records o f all
bonds issued and outstanding. These will be maintained both by name o f the owner and
by bond serial number and will be used as a basis for servicing these securities. W ith
the bond in punched card form the T reasury’s procedures will include a mechanical com­
parison o f every bond redeemed against the corresponding record o f bonds issued as a
basis fo r audit o f all bonds retired.

General.
The punched card type o f bond has been used in the interest o f economy and efficiency.
The bonds have been designed fo r use in mechanical accounting machines; therefore, it is
important that all persons handling such bonds avoid the use o f pins, staples, or other
mutilating devices. The cooperation o f financial institutions in this respect will be greatly
appreciated.




7

REGULATIONS GOVERNING ARM ED FORCES LEAVE B O N D S1
1946
Department Circular No. 793

TREASURY DEPARTMENT,
O f f ic e

Fiscal Service
Bureau of the Public Debt

To

M em bers
cerned

and

F ormer M em bers

of th e

Secretary,

Washington, November 1 2 ,19A6.
of t h e

A

rmed

F orces

of t h e

U n it e d S t a t e s ,

and

Oth ers Con ­

:

Under Section 6 of the Armed Forces Leave Act of 1946 (hereinafter referred to as the A ct),’
living members and living former members of the Armed Forces of the United States are entitled to
receive under the conditions set forth in the Act, bonds of the United States in settlement and compen­
sation of accumulated leave. Under the terms of the Act these bonds are issued under authority and
subject to the provisions of the Second Liberty Bond Act, as amended.
Pursuant to the authority contained in said Acts the following regulations are prescribed to govern
such bonds:
I. SU BSTAN TIVE REGULATIONS

324.1
Bonds.”

Designation.— The bonds issued for the above purpose are designated “ Armed Forces Leave

324.2 Issue and inscription.— Armed Forces Leave Bonds are issued by the Secretary of the Treas­
ury (hereinafter referred to as the Secretary) acting through the Army, Navy, Marine Corps, and
Coast Guard, which are designated as issuing agents. They are inscribed only in the names of living
members or living former members of the armed forces. In each case a single bond in the highest
appropriate multiple of $25 is issued where the amount due is $50 or more. The name and serial or
service number of the owner will be inscribed on the bond and at the option o f the issuing agent the
address may also be inscribed. No exchange will be permitted for bonds of lower denomination, for
example, if a bond for $275 is issued to a particular owner he may not exchange that bond for a bond in
the amount of $200 and a bond in the amount of $75.
324.3 Date and maturity of bond, and interest.—The issue date of a bond will be the first day of the
quarter-year period (January 1, April 1, July 1, or October 1) next following the date of discharge from
the armed forces of the former member whose name is to be inscribed thereon, provided he was dis­
charged on or after January 1, 1943, and prior to September 1, 1946, or in case a member of the armed
forces was still on active duty on September 1, 1946, his bond will be dated October 1, 1946. Each bond
will mature five years from its issue date. In case of the death of the owner of any such bond payment
may be made prior to maturity upon proper application, at the option of such owner’s survivors, as
defined in the Act (see 324.9 h ereof). Interest will accrue at the rate of 2y2% per annum from the issue
date to the date of maturity or to the last day of the month in which payment is made, whichever may be
earlier. Interest will be paid only with the principal sum.
324.4 Transfer and pledge.— The bonds are nontransferable by sale, exchange, assignment, pledge,
hypothecation or otherwise, except that they may be assigned by the owner to the Administrator o f
Veterans’ Affairs for redemption by such Administrator, for the purpose of paying premiums or the
difference in reserve in case of conversion to insurance on another plan or a policy loan made prior to
July 31, 1946, on a United States Government life insurance policy or a national service life insurance
policy under such regulations as may be prescribed by the Administrator of Veterans’ Affairs. Such
assignment may not be used directly or indirectly as a means of securing in cash the proceeds o f such bond
or any portion thereof prior to the date of its maturity or the maturity of such policy by death, which­
ever is earlier (see 324.6 hereof). No claims by attempted transferees or by persons loaning money on
the security of the bonds will be recognized.
324.5 Claims of creditors.— By the terms of the Act the bonds are exempt from claims of creditors,
including any claim of the United States, and shall not be subject to attachment, levy, or seizure by or
under any legal or equitable process whatever. Accordingly, no claims of creditors, assignees for the
benefit of creditors, trustees or receivers in bankruptcy or equity will be recognized, and no payment of
the bonds to any such persons will be made, either during the lifetime of the person whose name is
inscribed on the bonds or after his death.
1 Section 324.11 hereof relates to payment o f Armed Forces Leave checks to survivors.
1 Pub. Law 704, 79th Cong.




721711— m

2

324.6 Assignment to the Administrator of Veterans’ Affairs.— Any registered owner of an Armed
Forces Leave Bond who desires to use his bond in payment of premiums or other payments in connection
with United States Government life insurance or national service life insurance policies should mail or
deliver his bond to the Office of the Veterans’ Administration to which he pays his premiums. The bond
should be accompanied by a completed VA Form 9-1625, “ Directions for use of Proceeds of Armed Forces
Leave Bonds” , obtainable at any Veterans’ Administration Office. Before submitting the bond to the
Veterans’ Administration the assignment form printed on the bottom of the back of the bond should be
signed by the owner exactly as his name appears on the face of the bond. No certification or witness
to the signature of the owner on such assignment form will be required.
324.7 Payment to registered owner at maturity.— To secure payment at maturity the registered
owner should appear before one of the officers authorized to certify requests for payment, establish his
identity and sign his name to the request for payment printed on the back of the bond. The signature
should be in exactly the form as his name is inscribed on the face. No power of attorney to request
payment will be recognized.
(a) Certification of request.— After the request for payment has been signed the certifying officer
should complete and sign the certificate appearing at the end of the form for request for payment and the
bond should then be presented in person or by mail to the Federal Reserve Bank of the District in which
the owner resides 1 or to the Treasurer of the United States, Washington 25, D. C., or to such other
paying agent as may be designated by the Secretary of the Treasury. The use of registered mail is
desirable for the protection of the owner.
( b) Certifying officers.— The following officers are authorized to certify requests for payment of
Armed Forces Leave Bonds:
(1) Certain designated officers in the Treasury Department at Washington;
(2) Officers of incorporated banks or trust companies;
(3) Commissioned officers of the Army, Navy, Marine Corps and Coast Guard of the United
States (only for members of such establishments) ;
(4) The officer in charge of any home, hospital or other facility of the Veterans’ Administra­
tion (only for patients and members o f such facilities) ;
(5) Such other officers as may from time to time be designated by the Secretary for that purpose.
(c) Instructions to certifying officers.— Certifying officers should require positive identification of
the person signing a request for payment.
324.8 Right to payment on death of owner.— Upon the death of an owner of an Armed Forces
Leave Bond the bond becomes payable only to his survivors in the following order:
(a) Surviving wife or husband and children, if any, in equal shares;
( b) If such owner leaves no surviving spouse or children, then in equal shares to such owner’s sur­
viving parents, if any. If there are no such survivors the bond will be retired and the amount covered
into the general fund of the Treasury. Accordingly, payment will not be made to an executor or admin­
istrator of the estate of a deceased registered owner, and if a bond should come into the possession of such
an executor or administrator, or other person not a survivor, following the death of the owner it should
be immediately delivered to one of the survivors, if a n y; otherwise forwarded to the Division of Loans and
Currency, Washington 25, D. C., with a signed statement that there are no known survivors.
324.9 Payment to survivors.— Survivors of a deceased registered owner in the order provided in
the preceding section are entitled to receive payment of an Armed Forces Leave Bond at their option
and upon application to the Secretary o f the Treas ury at any time following the death of such registered
owner, whether before, upon or after maturity of the bond. Application for such payment should be
made on Form PD 2066, copies of which may be obtained from any Federal Reserve Bank. See Section
324.13 for instructions as to filing the application.
1 The Federal Reserve Banks are located at Boston, N ew York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas
7 2 1711 —m

City, Dallas and San Francisco.




3

(a) Definition of survivors.— Survivors are defined in the Act as follows:
(1) “ Spouse” means a lawful wife or husband;
(2) “ Children” include
(a) a legitimate child;
(b) a child legally adopted;
(c) a stepchild, if, at the time of death of the member or former member of the armed
forces, such stepchild is a member of the deceased’s household;
(d) an illegitimate child, but in the case of a male member or former male member of the
armed forces only if he has been judicially ordered or decreed to contribute to such
child’s support; has been judicially decreed to be the putative father of such child; or
has acknowledged under oath in writing that he is the father of such child; and
(e) a person to whom the member or former member of the armed forces at the time of
death stands in loco parentis and so stood for not less than twelve months prior to the
date of death;
(3) “ Parent” includes father and mother, grandfather and grandmother, stepfather and step­
mother, father and mother through adoption, and persons who, for a period of not less than
one year prior to the death of the member or former member of the armed forces, stood in
loco parentis to such member or former member: Provided, That not more than two par­
ents may receive the benefits provided under this Act and preference shall be given to the
parent or parents, not exceeding two, who actually exercised parental relationship at the
time of or most nearly prior to the date of the death of such member or former member of
the armed forces.
( b) Payment only.— Only payment of the entire amount of the bond will be permitted. No partial
payment and no reissue of the bond in part may be made. Payment in all cases will be made by separate
checks drawn in the proper amounts to the individual survivors, except that in the case of a survivor
under 17 years of age or under mental disability, the check will be drawn either to the guardian of such
survivor, if the Secretary has received notice of the appointment of such guardian, or in the absence of
such notice, to a proper person selected by the Secretary, for the use and benefit of such survivor, without
the necessity of resorting to judicial proceedings for the appointment of a legal representative.
(c) All survivors must join.— Since no partial payment or reissue may be made, all survivors of the
class entitled to receive payment must unite in the application, except that in the case of survivors under
17 years of age or under mental disability, legally qualified guardians, if any, may sign in their behalf,
and in the absence of such legal guardians, such proper persons as the Secretary may select to act on
behalf o f such survivors.
(d) Time of vesting of survivors’ rights.— A survivor’s right to receive payment becomes fixed upon
the date of the death of the owner. If a survivor dies before receiving payment the right to receive pay­
ment of his or her share of the bond passes to the estate of such survivor. For example, if the registered
owner dies and leaves a widow and two children and the widow dies prior to receipt of payment, her share
passes to her estate and payment of the bond will be made one-third to the widow’s representative and
one-third to each of the surviving children. If no executor or administrator is appointed for the estate
of a deceased survivor, settlement may be made in the same manner as provided for the settlement without
administration of estates of deceased owners o f United States registered bonds.
324.10 Loss, theft, destruction, mutilation or defacement of bonds.— If an Armed Forces Leave
Bond is lost, stolen, destroyed, mutilated or defaced, relief may be granted before maturity by the issue
of a substitute bond to be marked “ DUPLICATE” , or at or after maturity by payment of the bond in
accordance with the provisions of Section 8 o f the Government Losses in Shipment Act (U. S. C. 1940
Ed., title 31, sec. 738a). Relief in such cases will be governed by the regulations contained in Depart­
ment Circular 300, as amended. In any such case immediate notice of the facts, together with a complete
description of the bond (including name and address of owner, bond serial number, amount, and issue
date), should be given to the Treasury Department, Division o f Loans and Currency, Washington 25,
D. C., which will forward appropriate forms for requesting relief, together with full instructions.
Usually such relief will be granted without requiring a bond of indemnity.
324.11 Checks.—
(a ) Payment to survivors of checks issued to the registered owner (1) in full settlement of leave,
(2) in payment of bonds, or (3) in payment of the odd amount due the member or former member of
71 1 —
271 m



4

the armed forces over and above the bond issued in settlement of leave, will be made to the persons
entitled as provided in the above regulations relating to bonds. Accordingly, such checks received by
executors or administrators of deceased registered owners should not be deposited for collection but
should be turned over to the survivors or returned to the issuing office with a statement of the facts.
( b)
In the case of a survivor entitled to payment who dies before receiving and collecting the che
issued in the name of the survivor, payment will be made to his estate.
II. P R O C E D U R E

324.12 Surrender of bonds at maturity by registered owner.— Registered owners desiring payment
of their bonds at maturity, after completing the request for payment in accordance with the provisions
of 324.7 hereof, should forward the bonds to the appropriate Federal Reserve Bank or to the Treasurer
of the United States, Washington 25, D. C. The use of registered mail is desirable for the protection of
the owner. Federal Reserve Banks as fiscal agents of the United States are authorized to make payment
of bonds so presented if in proper form. Bonds marked “ DUPLICATE” issued in lieu of lost, stolen,
destroyed, mutilated or defaced bonds must be submitted to the Treasury Department, Division of Loans
and Currency, Washington 25, D. C., as Federal Reserve Banks are not authorized to pay such bonds.
324.13 Payment to survivors.— Survivors applying for payment under section 324.9 hereof should
forward the bonds, accompanied by the applications on Form PD 2066, to the appropriate Federal Reserve
Bank or to the Treasury Department, Division o f Loans and Currency, Washington 25, D. C. Usually
payment will be expedited by the use of the Federal Reserve Banks. The form must be accompanied in
each case by (1) a death certificate for the registered owner, (2) an explanation of any discrepancy
between the name as given on the face of the bond and the name as given in the death certificate, and (3)
' in case of an application by parents other than the own father and mother still living together, a signed
and sworn statement giving the basis for the claim of parental relationship as defined in the Act (see
324.9 hereof). The right is reserved to require other and further evidence in cases where such action
appears desirable. Federal Reserve Banks as fiscal agents of the United States are authorized to make
payment to survivors upon applications in accordance with these regulations, but may submit any doubt­
ful or unusual cases to the Treasury Department, Division of Loans and Currency, for final decision.
324.14 Designation of agents to make determination.— The various Federal Reserve Banks as fiscal
agents of the United States, the Fiscal Assistant Secretary of the Treasury, the Assistant to the Fiscal
Assistant Secretary, the Commissioner and Associate Commissioner of the Public Debt, and the Chief of
the Division o f Loans and Currency are designated to make determinations on behalf of the Secretary as
provided in the Act.
III. G E N E R A L

324.15 Taxation.— Under the Act all amounts paid or payable under Section 6 in cash, bonds or
both (except interest in the case of bonds) shall be exempt from taxation.
324.16 Address for communications.— All inquiries after issue in connection with the payment of
or transactions in Armed Forces Leave Bonds should be addressed to the Federal Reserve Bank of the
District in which the owner resides, or to the Treasury Department, Division of Loans and Currency,
Washington 25, D. C., except that any inquiries regarding the use o f such bonds in connection with
Government life insurance or national service life insurance payments should be addressed to the Office o f
the Veterans’ Administration to which the assured has been paying premiums, or to the Director of Insur­
ance Accounts Service, Veterans’ Administration, Washington 25, D. C.
324.17 Additional regulations.— The Secretary of the Treasury may at any time, or from time to
time, prescribe additional, supplemental, amendatory or revised rules and regulations governing Armed
Forces Leave Bonds.
Publication of notice and public procedure thereon with respect to these regulations are found to be
contrary to the public interest for the reason that such notice and public procedure would expose inter­
ested parties to undue delay in the exercise of rights provided by the Act.
These regulations will become effective immediately, the requirements of section 4 (c) of the Admin­
istrative Procedure Act (Public Law 404, 79th Congress) being dispensed with in order that survivors
entitled may take prompt advantage of their rights under the Act.
JOHN W. SNYDER,
Secretary of the Treasury.
s . S. GOVERNMENT PR IN TIN G O F F IC E




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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102