View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK
OF N EW YORK
r Circular No. 3 2 41 "1
L

August 4, 1947

J

SATURDAY CLOSING OF BANKS IN THE STATE OF FLORIDA

To all Banking Institutions in the Second
Federal Reserve District, and Others Concerned:

We have been informed by the Federal Reserve Bank of Atlanta that, pursuant
to the provisions of the banking law recently adopted by the Florida State Legis­
lature, the following banks located in the Counties of Dade and Palm Beach, State
of Florida, will be closed on each Saturday, beginning July 12, 1947:
Coral Gables First National Bank, Coral Gables, Florida
Florida National Bank at Coral Gables, Coral Gables, Florida
First National Bank, Homestead, Florida
Allapattah State Bank, Miami, Florida
Coconut Grove Exchange Bank, Miami, Florida
First National Bank of Miami, Miami, Florida
Florida National Bank & Trust Company at Miami, Miami, Florida
Little River Bank and Trust Company, Miami, Florida
Pan-American Bank of Miami, Miami, Florida
Riverside Bank, Miami, Florida
Mercantile National Bank of Miami Beach, Miami Beach, Florida
Miami Beach First National Bank, Miami Beach, Florida
The North Shore Bank, Miami Beach, Florida
Florida National Bank at Belle Glade, Belle Glade, Florida
First National Bank of Delray Beach, Delray Beach, Florida
First National Bank in Lake W orth, Lake W orth, Florida
Bank of Pahokee, Pahokee, Florida
First National Bank in Palm Beach, Palm Beach, Florida
Atlantic National Bank of W est Palm Beach, W est Palm Beach, Florida
Florida Bank & Trust Company at W est Palm Beach, W est Palm Beach, Florida

In view of the closing of the banks indicated above, there will be a delay, in
many instances, in the presentment of items and in the advice Of dishonor and the
return of unpaid items.




A llan S proul,

President.

FEDERAL RESERVE BANK
OF N EW YORK
Fiscal A gen t of the U nited States

August 8, 1947

P A Y M E N T S B Y B A N K S A N D O T H E R F IN A N C IA L IN S T IT U T IO N S IN C O N N E C TIO N W I T H
T H E R E D E M P T IO N O F A R M E D FORCES L E A V E BONDS

To Incorporated Banks and Trust Companies and Other Financial Institutions
in the Second Federal Reserve District Qualified to Make Payments in
Connection with the Redemption of United States Savings Bonds:

In our printed letter to you, dated July 29, 1947, transmitting a communication from the
Secretary of the Treasury, reference was made to the recently enacted legislation authorizing
the redemption of Armed Forces Leave Bonds beginning September 2, 1947. The Treasury
Department has now completed its circulars and instructions pursuant to which banks and other
financial institutions, qualified as agents for the payment of United States Savings Bonds, are
authorized to make payments in connection with the redemption of Armed Forces Leave Bonds.
At the request of the Treasury Department, we are transmitting to you, as part of this letter,
copies of the documents described in the table o f contents appearing on page 2 hereof. In addi­
tion, copies of the following are enclosed for your information:
(1 ) Treasury Department Circular No. 751, Second Revision, dated August 1, 1947.
(2 ) Treasury Department Circular No. 793, Revised, dated August 1, 1947.

As will appear from this material, the procedure for making payments of Armed Forces
Leave Bonds conforms substantially to that which you are now following in connection with
the payment of Savings Bonds. However, we wish to call your particular attention to the fol­
lowing matters:
(1 ) Y o u are not authorized to make any payments of Arm ed Forces Leave Bonds prior to
September 2, 1947.
(2 ) Y ou should be completely satisfied in every case that the person requesting payment of a bond
is the owner named thereon; complete instructions in this respect are contained in paragraph 10 of the
Treasury Department memorandum which appears at pages 15 and 16 hereof.
(3 ) Y ou will use the same payment stamp which you use in connection with the payment of
Savings B on d s; however, this stamp should be impressed in the upper left-hand corner of A rm ed Forces
Leave Bonds, as illustrated in Exhibit 1 which appears at page 23 hereof.
(4 ) Supplies of transmittal forms to be used in sending paid bonds to us, and of tables of redemp­
tion values of Arm ed Forces Leave Bonds, will be sent to you in ample time to arrive before the end
o f August.
(5 ) Arm ed Forces Leave Bonds and Savings Bonds may not be listed on the same transmittal
letter, although there will be no objection if such bonds listed on separate transmittal letters are
enclosed in the same package sent to us. A s in the case of Savings Bonds paid by you, A rm ed Forces
Leave Bonds paid by you in one calendar month should not be listed on the same transmittal letter with
bonds paid by you in a different calendar month.
(6 ) Arm ed Forces Leave Bonds are in the form o f punched cards which may be processed
mechanically by us and by the Treasury Departm ent; they should not, therefore, be spindled, clipped,
pinned, perforated, bent, folded or otherwise mutilated.

Additional copies of this letter and of the enclosures will be furnished upon request.




A llan S proul,

President.

CONTENTS
PAGE

Letter of the Acting Secretary of the Treasury to Savings Bond Paying A g e n ts ...........................................

3

Treasury Department Circular No. 811, Regulations governing payments by banks and other financial
institutions in connection with the redemption of Armed Forces Leave Bonds.........................................

5

Table o f contents for memorandum of instructions and explanation issued in conjunction with Treasury
Department Circular No. 811....................................................................................................................................

12

Memorandum of instructions and explanation issued in conjunction with Department Circular No.
811, prescribing regulations governing payments by banks and other financial institutions in connection
with the redemption of Armed Forces Leave B onds...........................................................................................

13

I n d e x ........................................................................................................................................ ...........................................

24

Page 2




TREASURY DEPARTM ENT
OFFICE OF THE SECRETARY
W A S H IN G T O N

August 1, 1947.

To the Savings Bond Paying Agent Addressed:
W it h this letter you will receive copies of the official Treasury Department Circulars
and instructions governing the payment of A rm ed Forces Leave Bonds.

Y ou will observe

that the procedure and instructions are very similar to those governing the payment of savings
bonds. Inasmuch as your institution is a qualified paying agent for savings bonds, qualifica­
tion as a paying agent for the leave bonds is possible automatically by the act of paying such
a bond after September 1, 1947. Such a payment will render your institution subject to
the terms and conditions applicable to the paym ent of such bonds and subject to the same
terms and conditions as are set forth in your Application-Agreem ent for the payment of
savings bonds.
T h e Treasury has the responsibility of fulfilling that part of the recently enacted law
which makes the proceeds of the bonds available to owners thereof on their demand after
September 1, 1947. T h e splendid organization available for the payment of savings bonds, it
seems to me, is ideally suited to carrying out this responsibility. I am certain too that your
institution will want to assist the veterans.
Y o u r institution is especially well suited also to counsel the veterans concerning the
desirability of holding their bonds if they do not need the cash at this time.

O n this point

particular attention is invited to the President’s comm ent when he signed the bill.

You

will recall he said, in part, “ If, on the other hand, veterans choose the wise course, hold their
bonds and continue to draw 2]/2 percent interest, their dollars will buy more when they cash
their bonds after inflationary conditions have eased. I urge veterans not to cash their bonds
unless they are in urgent need of the money now .”
I believe that if such information is passed on to the veterans and if they understand that
they can get their funds at any future time on their demand, many of them who do not need
the cash now will hold them to maturity when, of course, interest ceases.
I think you will concur with me that the veteran, and the nation, will benefit m ost by
not cashing his bond at this time, unless, of course, circumstances require such cashing.
One more thing I should like to stress and that is the matter of identification of
owners. W e want to be as certain as we possibly can that the rightful owner receives the full
value due him at the time he cashes his bond. A ccordingly, I strongly urge that you require
each veteran, at least those who are not fully known to your institution, to present the origi­
nal separation papers furnished to him, if he is a discharged veteran, and to use extra care
and diligence where these papers are not available.
Y o u r cooperation will be very much appreciated.




Very truly yours,
A . L. M . W IG G IN S
Acting Secretary of the Treasury

Page 3

R E G U L A T IO N S G O V E R N IN G P A Y M E N T S B Y B A N K S A N D O T H E R F IN A N C IA L IN ST IT U T IO N S
IN C O N N E C T IO N W IT H T H E R E D E M P T IO N OF A R M E D FORCES L E A V E BONDS
1947
Department Circular No. 811

TR EASU RY DEPARTM ENT,
O

f f ic e o f t h e

Fiscal Service
Bureau of the Public Debt

S

ecretary

,

Washington, August 1, 1947.

Pursuant to the authority of the Second Liberty Bond Act, as amended, the following regulations are hereby
prescribed to govern payments by banks and other financial institutions in connection with the redemption of
Armed Forces Leave Bonds.
Subpart A — A U T H O R IT Y TO A C T
Sec. 325.1.

Financial institutions authorized to act.— Commercial banks, trust companies, savings banks,

savings and loan associations, building and loan associations (including cooperative banks), credit unions, cash
depositories, industrial banks, and similar financial institutions which (a ) are incorporated under Federal Law
or under the laws of a State, Territory or Possession of the United States or the District of Columbia; (b ) in
the usual course of business accept, subject to withdrawal, funds for deposit or the purchase of shares; (c ) are
under the supervision of the banking department or equivalent authority of the jurisdiction in which incorporated;
(d ) maintain regular offices for the transaction of their business; and (e ) are open daily and observe regular
business hours, are eligible to become paying agents of Armed Forces Leave Bonds and, upon qualification in
accordance with Section 325.2 hereof, are hereby authorized to make payments in connection with the redemp­
tion of Armed Forces Leave Bonds (hereinafter referred to as bonds), subject to the provisions of this circular
and any instructions issued hereunder.
Sec. 325.2.

Application and qualification.— Federal Reserve Banks, as Fiscal Agents of the United States,

are authorized to qualify eligible institutions hereunder, and to terminate any such qualification as hereinafter
provided.

A ny financial institution qualified as a paying agent of United States Saving Bonds is authorized

hereunder to act as a paying agent of Armed Forces Leave Bonds. The institution will not be required to effect
a new formal Application-Agreement for the purpose.

The act of payment of an Armed Forces Leave Bond

by a qualified paying agent of savings bonds will qualify it as a paying agent of Armed Forces Leave Bonds and
will render it subject to the terms and conditions applicable to the payment of such bonds and subject to the
same terms and conditions as are set forth in the Application-Agreement entered into by it as a paying agent
of savings bonds. A ny other eligible institution not now qualified to pay savings bonds but possessing adequate
authority under its charter that desires to qualify to make payments in connection with the redemption of the
bonds should make application to the Federal Reserve Bank of the Federal Reserve District in which it is located1
on Application-Agreement Form P D 2125 (see appended Exhibit A ) , copies of which may be obtained from
the appropriate Federal Reserve Bank.

If the application is approved, the Federal Reserve Bank will forward

to the applicant a Notice of Qualification Form PD 2126 (see appended Exhibit B ) , establishing that it is quali­
fied to make payments in connection with the redemption of the bonds.

If the application is not approved, the

applicant will be so advised in writing by the Federal Reserve Bank of the District.
Sec. 325.3.

Termination o f an agent’s qualification to pay bonds.— The Secretary of the Treasury or under

authority of the Secretary the appropriate Federal Reserve Bank, as Fiscal Agent of the United States, may, by
written notice, at any time and without previous demand or notice, terminate the qualification of any paying
agent hereunder.

A duly qualified paying agent may discontinue making payments at any time upon written

notice to the Federal Reserve Bank, and its qualification shall thereupon cease.
Subpart B— G E N E R A L
Sec. 325.4.

Meaning of terms in this circular.— For the purpose of this circular, unless otherwise indicated

specifically, or by context, the term s:
(a )

“ Paying a g e n t(s)” or “a g e n t(s)” shall mean any eligible financial institution duly qualified pursuant

to the provisions of this circular to make payments in connection with the redemption of Armed Forces Leave
1 F or the purpose of this circular, eligible institutions in Puerto Rico, the Virgin Islands and the Canal Zone shall be considered as being
within the Second Federal Reserve District and shall make application to the Federal Reserve Bank of New York, and eligible institutions in
Alaska, Hawaii and Guam shall be considered as being within the Twelfth Federal Reserve District and shall make application to the Federal
Reserve Bank of San Francisco.




Page 5

Bonds including such branches located within the United States (including its territories and possessions and
the Canal Zone) and the Republic of the Philippines, as it may wish to utilize. For the purpose of this circular
the term “ branches” shall include any bank facilities which may be established with the specific approval of the
Treasury Department at army and navy installations and other places.
(b ) “ B o n d (s)” shall include only Armed Forces Leave Bonds unless otherwise indicated specifically or by
context.
(c ) “ O w n e r (s)” shall mean the living member or former member of the armed forces whose name is
inscribed in his or her own right on a bond.
(d ) “ Federal Reserve Bank” includes each Federal Reserve Bank and any Branch thereof authorized by
the parent Federal Reserve Bank to conduct any o f the transactions in connection with which the term is used
in this circular.
Sec. 325.5.

Reimbursement o f agents’ costs.— (a ) Each paying agent shall be entitled to receive reim­

bursement for its service for all bonds paid and accounted for by it during the period from September 1, 1947
through December 31, 1947 at the rate of
15 cents each for the first 1,000 bonds
10 cents each for all over 1,000 bonds
Thereafter the number of Armed Forces Leave Bonds paid will be combined with the number of savings
bonds paid in computing reimbursement. In other words, paying agents will be entitled to receive 15 cents each
for the first 1,000 Armed Forces Leave Bonds and savings bonds combined paid and accounted for in each cal­
endar quarter, and 10 cents each for all over 1,000 bonds of either kind paid and accounted for in that quarter.
Each Federal Reserve Bank is authorized to establish a definite and regular closing time for determining those
paid bonds to be considered as accounted fo r in a reimbursable period.

Such closing time may be based upon a

time that the paid bonds are forwarded to, or received by, the Federal Reserve Bank and shall be uniformly
applied throughout the District of such Bank. The scale of rates shall be applicable separately to the agent and
to each o f its branches utilized in making payments under this circular, if the bonds paid by each are separately
scheduled and accounted for. The payment of such amount as the agent is entitled to receive shall be made by
the Federal Reserve Bank on behalf of the Treasury Department.
(b )

Paying agents shall not make any charge whatever to the owners of the bonds in connection with pay­

ments hereunder.
Sec. 325.6.

Announcements, etc., of authority to pay bonds.— A n y announcement of or any reference to an

agent’s authority to pay bonds may be made only in a form or manner or contain such statements or substance as
may be approved by the Secretary of the Treasury or, under authority of the Secretary, by the Federal Reserve
Bank of the District, as Fiscal Agent of the United States.

Subpart C— SCOPE O F A U T H O R IT Y O F P A Y IN G A G E N T S
Sec. 325.7.

General.— Only one Armed Forces Leave Bond has been or will be issued to any one living

member or former member of the armed forces discharged under honorable conditions and otherwise entitled to
receive a payment in such form (except for a very few instances where adjustments have been necessary after
payment was made). That bond will be inscribed only in such member’s name. The lowest denomination bond
authorized for issuance is $50 (except for $25 adjustment bonds) and higher denomination bonds are issued only
in multiples of $25.
No. 793.

The bonds are issued pursuant and subject to the terms of Treasury Department Circular

The bonds are not transferable by sale, exchange, assignment, pledge, hypothecation or otherwise

except as they may be assigned to the Administrator of Veterans Affairs pursuant to the Armed Forces Leave
A ct of 1946, as amended, and regulations prescribed by that Administrator pursuant thereto.

N o claims by

attempted transferees or by persons loaning money on the security of the bonds will be recognized. By the terms
of the Armed Forces Leave Act of 1946, as amended, 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, trus­

tees or receivers in bankruptcy or equity will be recognized, and no payment of the bonds to any such persons
Page 6




will be made, either during the lifetime of the person whose name is inscribed on the bond or after his death.
Upon the death of an owner of a bond the bond becomes payable only to his survivors as defined in the Armed
Forces Leave Act. It is of the utmost importance that payment of the appropriate redemption value of the bonds
be made only to and received by the persons entitled and strictly under the terms and conditions of the bonds
and applicable regulations.
Sec. 325.8.

Payments— to ozvner named on bond.— Subject to the terms of the bonds and to the provisions

of the regulations governing them and the provisions of this circular, an agent may make payment of a bond
only to the individual whose name is inscribed as the ozvner in his own right on the bond:

Provided, That such

individual presents the bond to the agent for payment and that the individual is known to the agent or establishes
his identity to the complete satisfaction of the agent. This authority shall be held to include the payment of bonds
to a person whose name as inscribed on the bond has been changed by marriage ( but not otherzvise). Both names
must be shown, for example— “ (M iss) Mary T . Jones, now by marriage Mrs. Mary J. Smith.”
Sec. 325.9.

Specific limitations of payment authority.— A n agent is not authorized to pay a bond :

(a ) If the bond is presented for payment prior to September 2, 1947.

Payment in any form or manner to

a bond owner before that date is not authorized in any circumstance.
(b ) If the agent does not know or cannot establish to its complete satisfaction the identity of the person
requesting payment as the owner of the bond.
(c ) If the owner requesting payment (form for which appears on the back of each bond) does not sign his
name in ink exactly as it is inscribed on the face of the bond and show his home or business address.

( See also

Sec. 325.10 ( d ) .)
(d ) I f the bond appears to bear a material irregularity, for example, an altered, illegible, incomplete or
unauthorized inscription or issue date; or if a bond appears to be altered, or is mutilated or defaced in such
a manner as to create doubt or arouse suspicion with respect to the bond or any essential part thereof.
(e ) If the bond is marked “ D U P L I C A T E .”

(A n owner of a bond marked “ Duplicate” must submit it

to the Treasury Department, Division of Loans and Currency, Washington 25, D. C., after completing the request
for payment and having it duly certified by an authorized certifying officer.)
( f ) If the owner is deceased, incompetent or under legal guardianship or the owner’s name as inscribed
on a bond is changed for any reason other than marriage, or if it is known to the agent that the owner has been
declared, in accordance with law, incompetent to manage his estate.
( g ) If partial redemption is requested.

(O nly payment o f the entire amount of principal and interest due

may be made and under no circumstances will an exchange be permitted for bonds of a lower denomination.)
Attention is directed to Sec. 325.17 hereof for handling bonds of the foregoing classes of cases which may
not be paid by agents.

Subpart D— P A Y M E N T A N D A C C O U N T IN G
Sec. 325.10.

Examination of bonds presented for payment.— Before making payment of bonds presented

hereunder the agent:
(a ) Shall determine that the person requesting payment as the “ owner” (as defined in this circular) is
known or his identity is established to the satisfaction of the agent.
(b ) Shall examine the bond and determine that it is a bond which (the agent is authorized to pay under the
provisions of this circular.
(c ) If the request for payment on the back of the bond is already executed, shall determine that the
request is properly signed by the registered owner presenting the bond and that his home or business address
is shown.
(d ) If the request for payment on the back of the bond has not been executed or has been improperly
executed by the owner presenting the bond, shall require such owner to properly sign the request and show his
home or business address.




Sec. 325.11.

Certification of requests for payment.— In view of the provisions of this circular governing the

payment of the bonds and the requirements as to the data to be endorsed on each bond, under Sec. 325.12,
an agent will not be required in the case of any bond paid by it to complete the certification form at the end
of the request for payment, nor determine the authenticity of any certification which may appear on the bond
at the time it is presented for payment: Provided, however, That each agent submitting paid bonds shall be
understood by such submission to have represented and certified that the identity of the owner requesting pay­
ment has been duly established by one of its officers or by an employee duly authorized by the agent.
Sec. 325.12.

Determination of redemption values and payment of bonds.— The redemption value of a

bond is determined according to the number of months that it has been outstanding. The Federal Reserve
Bank of the District will furnish each agent monthly with a table of redemption values from which it will
be possible, after determining the month and year of issue of any bond, to establish its current value. After
establishing such value, payment thereof to the owner requesting payment shall be made in cash. N o objection
will be made to an arrangement between the owner and the agent under which the owner accepts in lieu of cash,
a credit to his checking, savings or share account with the agent, or a check or similar instrument payable
to his order. Each agent shall place in the upper left-hand portion on the face of each bond paid by it the
word “ P A ID ,” the amount and date of payment and the name, location and code number assigned to the agent
by the Federal Reserve Bank.

Other data pertinent to the payment procedure of an agent may be included

if approved by the Federal Reserve Bank of the District. Each paying agent of savings bonds acting also as
a paying agent of Armed Forces Leave Bonds should use the same payment stamp for both activities.

The

Federal Reserve Bank will furnish any additional rubber stamps necessary for this purpose, or, in lieu thereof,
will approve suitable stamps in the possession of or prepared by an agent. The affixation of such data shall be
construed by and between the agent and the Treasury Department to be a certification by the paying agent that
the bond has been paid in accordance with the terms and requirements of this circular and the Armed Forces
Leave A ct of 1946, as amended, and regulations issued pursuant thereto, and that payment of the proceeds of
the bond has been made to the owner.
Sec. 325.13.

Forwarding paid bonds to the Federal Reserve Bank.— After payment, the bonds shall be

forwarded to the Federal Reserve Bank of the District in accordance with instructions issued by such Federal
Reserve Bank.
Sec. 325.14.

Redemption of paid bonds by Federal Reserve Banks.— Upon receipt of the paid bonds the

Federal Reserve Bank will make immediate settlement with the paying agent for the total amount of payments
made on such bonds; however, such settlement shall be subject to adjustment if any discrepancies are dis­
covered at a later date.
Sec. 325.15.

Losses resulting from payments.— The amendment to the Armed Forces Leave A ct of 1946,

Public N o. 254, Enacted July 26, 1947, provides in Sec. 4 thereof that the provisions of subsection ( i ) of
Section 22 of the Second Liberty Bond Act, as amended, shall apply with equal force to payments of Armed
Forces Leave Bonds. The said subsection provides:
“ ( i ) A n y losses resulting from payments made in connection with the redemption of savings bonds shall
be replaced out of the fund established by the Government Losses in Shipment A ct, as amended,
under such regulations2 as may be prescribed by the Secretary of the Treasury.

The Treasurer

of the United States, any Federal Reserve Bank, or any qualified paying agent authorized or per­
mitted to make payments in connection with the redemption of such bonds, shall be relieved from
liability to the United States for such losses, upon a determination by the Secretary of the Treasury
that such losses resulted from no fault or negligence on the part of the Treasurer, the Federal
Reserve Bank, or the qualified paying agent. * * * The provisions of Section 3 of the Government
Losses in Shipment Act, as amended,3 with respect to the finality of decisions by the Secretary of the
Treasury shall apply to the determinations made pursuant to this subsection. * * * ”
*
Regulations governing replacement of losses resulting from payments made in connection with the redemption of Armed Forces Leave Bonds
are set forth in Treasury Department Circular No. 751, Second Revision.
The provisions of Section 3 of the Government Losses in Shipment A ct, as amended, with respect to the finality of decisions by the Secretary
of the Treasury are— ‘ 'Notwithstanding any provision of law to the contrary, the decision of the Secretary of the Treasury that such loss,
destruction, or damage has occurred or that such shipment was made substantially in accordance with such regulations shall be final and
conclusive and shall not be subject to review by any other officer of the United States.”

z




(a )

Consideration of facts concerning loss.— In any case in which a loss occurs, the paying agent shall

be afforded ample opportunity to present all of the facts pertaining to the circumstances of the payment for
consideration by the Secretary.
Sec. 325.16.

Preservation of rights.— Nothing contained in these regulations shall be construed to limit

or restrict any existing rights which holders of bonds may have acquired under the Armed Forces Leave Act
or the regulations prescribed thereunder.
Sec. 325.17.

Redemption of bonds not payable by agents.— Any bonds which an agent is not authorized to

pay pursuant to the provisions of this circular should be forwarded by the owner, or his agent, after certifica­
tion of the requests for payment, to the Federal Reserve Bank or Branch of the District for redemption except
that in the case of bonds marked “ Duplicate” the bonds should be sent to the Treasury Department, Division
of Loans and Currency, Washington 25, D. C. If an agent should undertake to forward such unpaid bonds at
the request and in behalf of the person entitled to payment, such bonds must be sent separate and apart from
bonds which the agent has paid.
Sec. 325.18.

Functions of Federal Reserve Banks.— The Federal Reserve Banks, as Fiscal Agents of

the United States, are authorized to perform such duties, and prepare and issue such forms and instructions,
as may be necessary to the fulfillment of the purpose and requirements of this circular. The Federal Reserve
Banks, when authorized by the Treasury Department, may utilize any or all of their Branches in the perform­
ance of these duties.
Sec. 325.19.

Supplements, Amendments, etc.— The Secretary of the Treasury may at any time or from

time to time revise, supplement, amend, or withdraw, in whole or in part, the provisions of this circular,
or any revisions, supplements or amendments thereto, information as to which will be furnished promptly to the
Federal Reserve Banks and to the agents qualified hereunder.
Compliance with the notice, public rule making procedure and effective date requirements of the Adminis­
trative Procedure Act (Pub. Law 404, 79th Cong.; 60 Stat. 237) with respect to this circular is found to be
contrary to the public interest because Armed Forces Leave Bonds are redeemable ait any time after
September 1, 1947, at the option of the owners, and a substantial amount of time is essential in order to establish
the procedure necessary for the payment of the bonds after the date set by the Congress.
The regulations set forth in this circular will become effective immediately, the requirements of Sec. 4 (c )
of the Administrative Procedure Act being dispensed with to facilitate the redemption of Armed Forces Leave
Bonds by the owners thereof after September 1, 1947, in accordance with Public Law 254, 80th Congress.




A . L. M . W IG G IN S ,
Acting Secretary of the Treasury.

Page

9

Form
T reasu ry

E X H IB IT “A ”

P D 2125
D ep a rtm en t

Fiscal Service
Bureau o f the Public Debt

A P P L IC A T IO N -A G R E E M E N T
Payments by banks and other financial institutions in connection
with the redemption of Armed Forces Leave Bonds
Dated............................................................, 194......
To

th e

F

ederal

R

eserve

B

a n k

o f ...............................................

Fiscal Agent of the United States:
The .................................................................................... , hereinafter referred to as the undersigned, hereby applies
(Name of institution)

for qualification to make payments in connection with the redemption of Armed Forces Leave Bonds, as pro­
vided in Treasury Department Circular No. 811. The undersigned hereby certifies that (a ) it is incorporated
under the laws of .................................................; (b ) in the usual course of business it accepts, subject to with­
drawal, funds for deposit or the purchase of shares ; (c ) it is under the supervision of th e ............................................
.................................................. v
.................................................... of ........................................................................................................ ;
(Name o f supervising Dept, or similar office)

(State or other jurisdiction)

(d ) it maintains a regular office for the transaction of its business at the address specified below; (e ) it is
open daily and observes regular business hours; and (f ) it has adequate authority under its charter to enter into
this agreement.
In consideration of being qualified as a paying agent, the undersigned hereby agrees :
1.

To be bound by and to comply with the provisions of Treasury Department Circular No. 811, including
all supplements and amendments thereof and instructions issued thereunder.

2.

That the Secretary of the Treasury, or the Federal Reserve Bank of..................................................................,
by written notice, may, at any time, and without previous demand or notice, terminate the qualification
of the undersigned; and that in the event of such termination the undersigned, after receipt of such
notice or after the date of termination specified therein, will not thereafter pay any Armed Forces Leave
Bonds.

It is understood that the undersigned may withdraw from this Agreement at any time upon written notice
of such intention to the Federal Reserve Bank o f .......................................................................................................................
I n W i t n e s s W h e r e o f , the undersigned has caused this Agreement to be executed under seal by the officer
below named, thereunto duly authorized by a resolution of its governing board or committee adopted on the
......................................... day of ...................................................... , 194............

(Name)
[S E A L ]

(Address)

By..................

(Signature o f officer)

(Title o f officer)

ACKNOW LEDGM ENT
State of
County of

L
\

On this ............................................day o f ......................................................................... . 194.......... , before me appeared
........................................................................................................... . to me personally known, who, being by me duly sworn,
did say that he is th e .................................................................... of t h e ..................................................................................................
(Title of officer)

(Name o f institution)

and that the seal affixed to the above instrument is the corporate seal of said institution, and that the above
instrument was signed and sealed in behalf of said institution by authority of its governing board or committee,
and said officer acknowledged said instrument to be the free act and deed of said institution.

Notary Public.
[seal]

M y commission expires...............................................................
( In case the applicant has no corporate seal omit the words, “ and that the seal affixed to the above instrument is
the corporate seal of said institution,” and add at the end of the affidavit “ The institution has no corporate
seal.” )
Page 10




E X H IB IT “ B ”
Form PD 2126
T reasu ry

D ep a rtm en t

Fiscal Service
Bureau of the Public Debt

N O T IC E O F Q U A L IF IC A T IO N OF A B A N K O R O T H E R F IN A N C IA L
IN S T IT U T IO N TO M A K E P A Y M E N T S IN C O N N E C T IO N W IT H
T H E R E D E M P T IO N OF A R M E D FORCES L E A V E BONDS

..............................................................., 194.
To

.....................................................................................................

Gentlemen :
Your Application-Agreement Form P D 2125, dated ......................................................... has been approved as
of this date. You are hereby notified that you are qualified to make payments in connection with the redemp­
tion of Armed Forces Leave Bonds pursuant to the provisions of Treasury Department Circular No. 811, and
any supplements or amendments thereof and instructions issued pursuant thereto.




F

ederal

R

eserve

B

a n k

of

.............................................................

Fiscal Agent of the United States.

B y ........................................................................................................

Page 11

TABLE OF CONTENTS FOR MEMORANDUM OF INSTRUCTIONS AND EXPLANATION
ISSUED IN CONJUNCTION WITH TREASURY DEPARTMENT CIRCULAR NO. 811

Topics
I.
II.

Paragraph
Numbers

Q U A L IF Y IN G T O P A Y B O N D S .................................................................................................................................2-3
A N N O U N C E M E N T S R E G A R D IN G A U T H O R IT Y T O P A Y B O N D S ................................................... ...4-6

III.

G E N E R A L P O L IC Y C O N C E R N IN G P A Y M E N T O F B O N D S ...................................................................

IV.

G E N E R A L D E S C R IP T IO N O F BO N D A N D IN F O R M A T IO N D E S C R IB E D T H E R E O N .............. ...8

V.

P A Y M E N T S A U T H O R IZ E D
General Authority..................................................................................................................................................... ...9

V I.

V II.

7

SP E C IF IC L IM IT A T IO N S ON P A Y M E N T A U T H O R IT Y A N D E X E C U T IO N O F R E Q U E ST S
Limitation on payments due to improper identification....................................................................................10
General requirements............................................................................................................................................... ...10(a)
Separation documents of Army, Navy, Marines and Coast Guard acceptable, of themselves, for
establishing identity............................................................................................................................................... ...10(b)
Separation documents of Army, Navy, Marines and Coast Guard not acceptable, of themselves,
for establishing identity...........................................................................................................................................10(c)
Personal identification...................................................................................................................................................10(d)
D ep ositors................................................................................................................................................................... .. 10(e)
Limitation on payments due to improperly completed requests for payment............................................. ...11
Form of signature— general.......................................................................................................................................12
Signature by mark..................................................................................................................................................... .. 13
Other forms of signature............................................................................................................................................ 14
Limitation on payments due to material irregularities (except mutilation or defacement).................... .. 15
General ....................................................................................................................................................................... ..15(a)
Exceptions to limitation on payments due to material irregularities......................................................... .....15(b)
Limitations on payments due to mutilation or defacement o f bonds............................................................. .. 16
Limitations on payments due to “ duplicate” bonds...............................................................................................17
Limitations on payments due to death, incompetency, etc............................................................................. ..18
Limitations on payments due to requests for partial redemption of bonds............................................... ..19
D E T E R M IN A T IO N O F R E D E M P T IO N V A L U E S A N D P A Y M E N T O F BO N D S
Determination of redemption values.........................................................................................................................20
Payment of redemption value.................................................................................................................................. ..21

V III.

R E C O R D IN G P A Y M E N T D A T A ON P A ID B O N D S
General ..........................................................................................................................................................................22
Payment stamps............................................................................................................................................................23
Use of payment stamps............................................................................................................................................ ..24
Recording amount of payment............................................................. .....................................................................24(a)
Recording date, transaction and the name and location of a g e n t................................................................. ..24(b)

IX .

F O R W A R D IN G B O N D S T O F E D E R A L R E S E R V E BA N K S
P reparation ....................................................................................................................................................................25
Transmittal lists.......................................................................................................................................................... ..25(a)
Recording description of paid bonds.......................................................................................................................25(b)
Frequency of making shipments............................................................................................................................ ..26
Manner of shipment and insurance...........................................................................................................................27
Records and report of shipments............................................................................................................................ ..28

X.

S E T T L E M E N T F O R P A ID B O N D S .........................................................................................................................29

X I.

A D JU S T M E N T O F BO N D S E R R O N E O U S L Y P A ID
Error in amount of payment....................................................................................................................................30
Material irregularity discovered by Federal Reserve B a n k ........................................................................... .31
Errors or irregularities discovered by the D epartm ent................................................................................... .32

X II.

R E IM B U R S E M E N T F O R S E R V IC E S IN P A Y IN G B O N D S .......................................................................33-34

X III.

M IS C E L L A N E O U S
Destruction of records................................................................................................................................................35
36
Inquiries

Page 12




*S

I M P O R T A N T : This memorandum is only for use of banks and other financial institutions elig­
ible to qualify as paying agents of Armed Forces Leave Bonds. It is not for general distribution.

M E M O R A N D U M OF IN STR U C TIO N S A N D E X P L A N A T IO N ISSUED IN C O N JU N CTIO N W IT H
D E P A R T M E N T C IR C U LA R NO. 811, PR E SC R IB IN G R E G U L A T IO N S G O V E R N IN G P A Y ­
M E N T S B Y B A N K S A N D O T H E R F IN A N C IA L IN ST IT U T IO N S IN C ONN EC­
T IO N W I T H T H E R E D E M P T IO N OF A R M E D FORCES L E A V E BONDS.

TREASURY DEPARTM ENT,

Fiscal Service
Bureau
the P ublic D ebt

of

(-OFFICE OF T H E S E C R E T A R Y

Washington, August 1, 1947

1.

This memorandum is presented for the guidance of agents which may qualify to make payments of

Armed Forces Leave Bonds under the provisions of Treasury Department Circular No. 811. Its purpose is to
explain in detail some of the provisions of the circular, and to clarify the transactions authorized thereunder.
Other instructions may be issued from time to time either direct by the Treasury Department or by the Federal
Reserve Banks, as Fiscal Agents of the United States, which will be made available to each qualified paying agent.
The terms “ Federal Reserve B a n k (s),” “ b o n d (s),” “ o w n er(s),” “ paying agen t(s)” and “ agen t(s)” whenever
used herein unless otherwise indicated specifically, or by context, shall have the same meaning as set forth in
Sec. 325.4 of Circular No. 811.
I. Q U A L IF Y IN G T O P A Y B O N D S
2.

Sec. 325.1 of the circular outlines the different classes o f incorporated financial institutions which are

eligible to be qualified to make payments of bonds and the conditions precedent to qualification. In explanation
of the condition under 325.1 ( e ) , the Treasury Department will require each of the otherwise eligible financial
institutions to be open during regular hours on each of the business days observed in the community. W here the
five day week is observed and the institution is open during regular hours each of these days, the condition will
be considered to have been complied with.

Under Sec. 325.2 any qualified paying agent of savings bonds is

authorized to act as a paying agent fo r Arm ed Forces Leave Bonds without filing a new Application-Agreement.
The Treasury will construe the payment of an Armed Forces Leave Bond as evidence of the institution’s desire
to be a paying agent of such bonds and the act of payment will automatically qualify the institution as such an
agent. A n y other eligible institution not qualified as a paying agent of savings bonds that desires to qualify to
pay Armed Forces Leave Bonds shall file an Application-Agreement Form P D 2125, with the Federal Reserve
Bank of the District in which it is located or to which it is assigned.

Upon request of any institution copies of

the Application-Agreement form will be furnished by the Federal Reserve Bank of the District.

Each such

eligible institution presenting Form P D 2125 for the purpose of qualifying to pay bonds, should, after the adop­
tion of an appropriate resolution by its governing board or committee, have a duly authorized officer (a ) com­
plete and execute the Application-Agreement form on behalf of the institution (under its corporate seal if it has
one), (b ) have the form acknowledged before a notary public (who should affix his seal and indicate the date
his commission expires), and (c ) forward it to the Federal Reserve Bank of its District.
3.

The appropriate Federal Reserve Bank will consider each application filed and advise the applicant

whether or not its application is approved. The qualification of an institution automatically qualifies any of its
branches (including facilities of banks as defined in the circular) to pay the bonds, if the branches are located
within the United States (including its territories and insular possessions and the Canal Zone) or the Republic
of the Philippines. The Treasury Department will interpose no objection to the payment of Armed Forces Leave
Bonds by those subagents that were established at June 30, 1945, for the payment of savings bonds and which
have continued in that capacity since that time. This exception shall not be construed to permit the establishment
of additional new subagents either directly or indirectly.

The provisions of the Revised Memorandum of

Instructions issued in conjunction with Department Circular N o. 750, Revised, concerning the authority and
limitations of subagents in their savings bond payment activities shall be considered to be applicable with equal
force and effect in any Armed Forces Leave Bond activities of such subagents.




Page 13

II. A N N O U N C E M E N T S R E G A R D IN G A U T H O R IT Y T O P A Y BO N D S
4.

Any institution qualified as a paying agent for savings bonds which intends to become a paying agent for

Armed Forces Leave Bonds may announce that fact prior to September 1, 1947, if it so desires. Such announce­
ments, whether prior or subsequent to September 1, should be conservatively made and presented and must not
urge or promote the cashing of the bonds.
5.

A suggested form of announcement is set forth below.

It may be made in newspapers, magazines or

other publications, by radio, or by a circular notice or envelope stuffer at such times and in such manner as may
be deemed appropriate. N o such notice or stuffer should be included in any mailing relating to the purchase or
sale of goods or services.

The title of the announcement should not be printed in type larger than 12 point and

the text of the announcement should not be printed in type larger than 10 point.
“A N N O U N C E M E N T TO O W N E R S OF A R M E D FORCES L E A V E B O N D S”
“ The (name of institution) is authorized by the United States Treasury Department to cash Armed
Forces Leave Bonds for registered owners* (any time after September 1, 1947).
“ There is no requirement that these bonds be cashed at this time in order to get your money. They
can be cashed any time in the future, upon demand and without delay.
“ Unless you are in real need of the money now this institution and the United States Treasury Depart­
ment strongly recommend that you permit your bond to earn interest at 2 ^ percent (up to its maturity)
until you actually need the cash. W e will be glad to serve you any time.
“ T o facilitate identification, owners should bring their original separation papers with them when
presenting bonds for payment.
* “ Under no circumstances may registered owners cash their bonds before September 2, 1947.”
♦This line should be run on all advertising prior to September 2, 1947.
6.

A qualified paying agent may print as an adjunct to any of its regular advertisements, or it may display

in its lobby or window, any of the following:
“A U T H O R IZ E D

AGENT

FOR P A YM E N T

O F A R M E D FORCES L E A V E B O N D S”

“A U T H O R IZ E D T O P A Y A R M E D FO R CES L E A V E B O N D S ”
“ T H I S B A N K (or other appropriate description of the agent institution) IS A U T H O R I Z E D T O P A Y
A R M E D FORCES L E A V E B O N D S”
The agent’s name may be used with any of these statements. The use of these or any other approved state­
ments, in the newspapers or other form of printed matter should be in type not larger than 10 point. A lobby
or window display of any approved statement must be kept to a conservative size. N o objection will be made
to the display of a sign of a conservative character and size in the window or cage of the agent’s office at which
the bonds are paid. The Treasury suggests these signs should be not larger than 10 x 16 inches in size. They
may read— “ Armed Forces Leave Bonds paid here.” A n y of the above approved statements or signs may be
combined with similarly approved statements and signs relating to the payment of saving bonds.

III. G E N E R A L P O L IC Y C O N C E R N IN G P A Y M E N T O F B O N D S
7.

Particular attention is directed to the provisions of Sec. 325.7 of the circular, because it is of the utmost

importance that payment of the correct redemption value of the bonds be made to and received by only the
registered owners. Paying agents have both an opportunity and a responsibility to render a valuable public
service by paying bonds only under circumstances which will accomplish this objective. Paying agents must not
( 1 ) advance money or make loans on, or discount the redemption value of the bonds, either directly or indirectly,
nor ( 2 ) pay any bond before September 2, 1947. V I O L A T I O N O F T H E S E R E Q U I R E M E N T S I N A N Y
R E S P E C T W I L L BE C A U S E F O R IM M E D IA T E D IS Q U A L IF IC A T IO N O F A P A Y IN G A G E N T .
Page 14




IV . G E N E R A L D E S C R IP T IO N O F B O N D A N D IN F O R M A T IO N IN S C R IB E D T H E R E O N
8.

The bonds are a distinctively designed punch card of check size with a blue tint background, bearing

the portrait of former Secretary of the Treasury Carter Glass. On the face of each bond will appear:
(a )

The denomination of the bond (appears in the center of the bond about one inch below top edge)
which is recorded in the allotted space as *125*dollars

'

$*125* (each amount is to be pre­

ceded and followed by at least one asterisk)
(b )

the name, service serial number, and in some cases the address of the owner (this appears imme­
diately below the denomination)

(c )

the issue date, consisting of the month and year (appears on the right side of bond beneath the printed
words “ Issue Date the first day of

” ) and in each instance it must be either January, April,

July or October. The earliest possible issue date on any bond is April 1, 1943 and the last possible
issue date is October 1, 1946. The bonds mature five years from the issue date.
For the information of paying agents it should be stated that in a very few instances as a result of reenlist­
ments and adjustment of errors some persons received more than one bond and some $25 denomination bonds
were issued.
V. P A Y M E N T S A U T H O R IZ E D
9.

General Authority.— Sec. 325.8 provides in general that a qualified paying agent may pay a bond only

upon the request of the individual whose name actually is inscribed on the bond as the owner: Provided, That
the agent is completely satisfied that the bond is in order for payment, that the owner requesting payment is
competent to act and that he is known to or has been identified to the complete satisfaction of the agent. Sup­
plemental explanations, instructions and exceptions regarding these general statements are set forth hereinafter.
Under this section an agent may pay a bond for an owner where her name as inscribed on a bond has been
changed by marriage. The agent must be satisfied that the owner and the person requesting payment are one
and the same before it makes payment. Further, the woman whose name as inscribed on the bond as owner has
been changed by marriage should sign the request for payment in the form— “ (M iss) Mary T . Jones, now by
marriage M rs. Mary J. Smith.” A G E N T S A R E N O T A U T H O R I Z E D T O P A Y B O N D S F O R P E R S O N S
W H O S E N A M E S A S IN S C R IB E D O N T H E B O N D S H A V E B E E N C H A N G E D IN A N Y O T H E R
M A N N E R T H A N B Y M A R R IA G E .

V I. SP E C IF IC L IM IT A T IO N S ON P A Y M E N T A U T H O R IT Y A N D E X E C U T IO N O F R E Q U E ST S
10.

Limitation on payments due to improper identification.—

(a ) General.— Sec. 325.9 (b ) provides that before a qualified paying agent makes payment of a bond it
must know or identify to its complete satisfaction the person requesting payment as the owner of the bond
(including the identification of a person whose name is changed by marriage). If the agent does not know the
person requesting payment as the owner identification must be made by the agent in a manner which will give
assurance that the proceeds are received by the owner of the bond.

The Treasury will not prescribe the

requirements an agent should follow in accomplishing this objective. Generally, paying agents should require
persons submitting Armed Forces Leave Bonds for redemption to present their original separation, or discharge
papers; in exceptional cases, where the original papers are not available, paying agents will be expected to
exercise extra care and diligence to insure that the person presenting the bond is in fact the owner.

Paying

agents are urged to adopt as part of their payment procedure the recording on each bond (preferably the back)
of a brief but sufficient description of the manner in which identity of persons is established, including serial
numbers or other pertinent data. In any event it should be understood that under the law the bonds are not
transferable and agents are authorized to pay them only to the owner named thereon. Agents must not make any
payments if they in any way effect or assist in effecting the sale, discount, transfer, or hypothecation of a bond
after its issue.
(b ) Separation documents of A rm y, N avy, Marine Corps and Coast Guard acceptable, of themselves, for
establishing identity.— The majority of the enlisted personnel separated from the different services after
January 1943, were issued either a single separation document or two documents in combination, which set




forth a physical description and witnessed signature of the recipient. In the absence of circumstances requiring
additional evidence these documents should be acceptable of themselves for establishing a person’s identity.
Although photostatic copies of these documents will be considered to be acceptable for identification purposes,
paying agents are urged to have the former members of the services present the originals of such documents,
if practical, at the time such members request payment of their bonds. In any event such document or documents
should be examined and it should be ascertained that ( 1 ) the service serial number compares with that on the
bond, (2 ) the physical description fits the person presenting the bond for payment, and (3 ) the signature is
reasonably similar to the signature placed on the bond by such person (paying agents are cautioned to be
certain that the printed form itself provides for the recipient to sign such document before accepting any signa­
ture thereon as having been written in the presence of a witnessing officer).
should be made to detect any possible alterations.

In addition, close observation

If such documents are presented and duly verified as above

and their form numbers and date and place of issue are recorded on the bond (preferably on the back), then in
the absence of any unfavorable facts or circumstances being developed as a result of the Department’s investiga­
tion of an erroneous payment, the paying agent will be considered as having established that any loss which
may occur from such payment resulted from no fault or negligence on its part. Under the statute, of course,
absence of fault or negligence must be established in order to permit the Secretary to relieve the paying agent
of liability to the United States for a loss.
(c ) Separation documents of A rm y, Navy, Marine Corps, and Coast Guard not acceptable, of themselves,
for establishing identity.— There are some original separation documents ( issued principally in connection with
officers) which do not contain a physical description or signature or may contain only one of these items. In
other instances the original documents have been lost and the owner may have only a certificate issued in lieu
of the original. Such certificates do not contain witnessed signatures. If any of the documents referred to in
this subparagraph are accepted by a paying agent they should be supported by suitable supplementary identi­
fication of a dependable nature. The Department as indicated in paragraph 10 (a ) will not prescribe the types
of supplementary documents or evidence which may be considered acceptable identification. Nevertheless it
will be understood that documents which are easily obtained by anyone wihout having to establish his identity,
such as social security cards, are not, of themselves, considered acceptable.

The recording of notations on the

bonds, or otherwise, of accepted documents or evidence is recommended for the reason stated above in 1 0 (b )
as well as for the purpose of apprehending forgers.
(d ) Personal identification.— Personal identification, that is, identification of a stranger by a customer of or
by someone well and favorably known to the paying agent if judiciously used is one of the best methods of identi­
fication and has the approval of the Treasury.

But, of course, personal identification will not be considered good

identification by the Treasury Department when a paying agent accepts the mere statement of the identifier that
he knows the person presenting the bond for payment by the name inscribed on the bond. The personal integrity
and reliability of the identifier are not sufficient. It is the reliability of the source and duration of the identifier’s
knowledge of the person presenting the bond for payment that are important. The paying agent, therefore, should
inquire as to the source and the duration of the identifier’s knowledge of the person presenting the bond and should
be satisfied that they are sound.
(e ) Depositors.— The Department will not object to an agent accepting bonds for payment by mail or other­
wise from its depositors: Provided, that ( i ) the agent has good reason to believe that the depositor did not estab­
lish the account for the purpose of cashing these or other instruments belonging to another person, (ii) each
depositor is also the owner requesting payment, (iii) the agent is completely satisfied that the signature to each
request for payment is that o f the “ owner depositor,” and (iv ) the agent is satisfied that the owner desires the
bond proceeds to be credited in his checking, savings or share account unless, of course, payment is made in
cash, or by a check or similar instrument drawn to the order of the owner.
11.

Limitation on payments due to improperly completed requests for payment.— Sec. 325.9 (c ) provides

that a bond may not be paid if the owner does not sign the request for payment (form for which appears on the
back of each bond) in the prescribed manner (see following paragraphs). A n agent should require completion
o f the request for payment only after it is satisfied that the bond is in order for payment. If the form for
requesting payment is completed before the bond is presented to the agent, the agent should have the owner
again sign the request (after being satisfied the bond is in order for payment), immediately above or below the
first signature (except, of course, as permitted under 1 0 (e ) hereof) for purposes of comparison to an authentic




signature on an acceptable type of identification document. In those unusual instances where it is not practica­
ble to so place the second signature, substantially the same wording in the R E Q U E S T F O R P A Y M E N T may
be typed or imprinted on any other available place on the back of the bond. The request then may be completed
and signed by the owner in the prescribed manner.
12.

Form o f signature and address— general.— The request for payment should be completed and signed

in ink (although the practice is not encouraged, indelible pencil may be accepted) to show (a ) the full name
(as inscribed on the bond) of the owner requesting payment and (b ) his home or business address. Agents are
authorized to pay bonds only if the signature of the owner is exactly as the name is inscribed on the bond. H ow ­
ever, the Treasury Department is aware that slight errors and variations in the correct spelling of names of
owners have been made inadvertently in inscribing bonds and that they have been undetected by the owner or,
perhaps, considered by him to be of an insignificant nature. Although an agent is not required to pay bonds
erroneously or improperly inscribed, it may wish to pay such bonds in some cases because of its knowledge of the
facts or its reliance upon the integrity of the owner. Accordingly, if an agent is fully satisfied that the owner
named on the bond and the person requesting payment are one and the same, no objection will be made to effect­
ing payment of such bonds. In such cases, however, the request for payment should show the name o f the owner
as inscribed on the bond followed by the correct signature. Each of these cases will require careful and individual
consideration; therefore, the Treasury Department must place upon the paying agent the responsibility for any
such payment. The Department considers the current address to be of importance to it and the paying agent in
the event of later discovery that a bond was improperly cashed, and therefore requires the owner to show his
current home or business address on the back of the bond presented for payment.

Where the address has been

recorded on the face of the bond and the owner is still at the same address no objection will be made to the owner
or the paying agent showing the word “ same” (or a similar notation) in the appropriate space on the back of the
bond. It is the duty, of course, of the owner presenting the bond to record the address information on the bond.
13.

Signature by mark.— If an owner signs his name to the request for payment by mark, the signature

should be in the form— “John J. Jones ( x ) his mark” and must be witnessed by at least one person in addition
to the agent’s employee paying the bond. The witness should attest substantially in the form— “ Witness to the
signature by mark” and sign his name and show his address immediately thereafter, on the back of the bond.
14.

Other form s o f signature.— See paragraph 9 hereof for form of signature to be used by an owner whose

name has been changed by marriage.
15.

Limitation on payments due to material irregularities (except mutilation or defacement).—

(a ) General.— Sec. 3 2 5 .9 (d ) provides that an altered, illegible, incomplete (in whole or in part) or unau­
thorized inscription, issue date, denominational amount or service serial number shall be considered a material
irregularity which will render a bond ineligible for payment by a paying agent.
(b ) Exceptions to limitation on payments due to material irregularities.— It may be that bonds will be pre­
sented to agents for payment bearing material irregularities in the inscription, denominational amount, issue date
or service serial number. In no case, of course, can the current redemption value of a bond be readily established
if the issue date or denominational value is indistinct or incomplete. Therefore, under no circumstances should
a bond be paid by an agent if the issue month, the issue year or denominational value is not clear or has not
been recorded on the bond.

However, in other instances even though an agent is not authorized to pay bonds

bearing irregularities, it may wish to pay such bonds in some cases because of its knowledge of the facts or its
reliance upon the integrity of the owner.

(See also, paragraph 12 hereof.)

Accordingly, if the agent is fully

satisfied that no fraud is involved in any apparent irregularities, no objection will be made to payment of such
a bond by the agent.

Each of these cases will require careful and individual consideration; therefore, the

Department must place upon the paying agent the responsibility for any such payment.
16.

Limitations on payments due to mutilation or defacement of bonds.— Sec. 3 2 5 .9 (d ) provides that if a

bond or any essential part thereof appears to be altered or is mutilated or defaced in a manner creating doubt
or arousing suspicion with respect to the authenticity or validity o f the bond, it must not be paid by a paying
agent.

W here suspicions are aroused, it would be helpful, if practicable, for the agent to give a receipt for the

bond and to obtain as much information as possible concerning the person presenting it.




The bond and infor­
Page 17

mation should be forwarded promptly to the Federal Reserve Bank, which will take appropriate action in the
matter.
17.

Limitations on payments due to “ duplicate” bonds.— In explanation of Sec. 325.9(e) it may be stated

that a substitute Armed Forces Leave Bond marked “ D U P L I C A T E ” is issued by the Department in a case
where a validly issued bond has been determined by the Secretary of the Treasury to have been lost, stolen or
destroyed or to have been mutilated so as to require replacement.

In some instances the bond claimed to have

been lost, stolen or destroyed will have been redeemed at the time the bond marked “ D U P L I C A T E ” is pre­
sented for payment. In order to determine the facts of the case and prevent a possible loss to the United States,
the Department requires that all bonds marked “ D U P L I C A T E ” be cleared with it before payment.

For that

reason a paying agent is not authorized under any circumstances to pay any bond marked “ D U P L I C A T E .”
18.

Limitations on payments due to death, incompetency, etc.— A s indicated in Sec. 3 2 5 .9 (f), paying

agents are not to pay bonds where owners are deceased, incompetent or under legal guardianship. A s evidence
must be obtained and examined before payment is made in these cases, paying agents should refer the cases to
the Federal Reserve Bank or the Treasury Department, Division of Loans and Currency, Washington 25, D . C.
19.

Limitations on payments due to requests for partial redemption of bonds.— In explanation of Sec.

3 2 5 .9 (g ), it may be stated that Treasury Department regulations do not permit any denominational exchanges,
consequently no partial payment and reissue of the remainder will be permitted.

V II. D E T E R M IN A T IO N
20.

O F R E D E M P T IO N

VALU ES AN D

PAYM ENT

OF BONDS

Determination of redemption values.— A s stated in Sec. 325.12, the redemption value of a bond is

determined from the denomination and the period of months the bond is outstanding. For the convenience of
paying agents a special table of redemption values will be furnished monthly by the Federal Reserve Banks. The
tables will show the current amount due for all denominations from $25 to $1,000 inclusive.

The amount

currently due on any bond of any denomination listed may be read directly from these tables. For bonds of
denominations in excess of those listed the agent should add the correct value for the denominations needed to
equal the denomination of the bond presented. For example, the value of a bond of $1,500 denomination would
be computed by adding together the current redemption value of the $500 and $1,000 bonds. In explanation
it may be stated that to date only about 17,000 bonds of denominations higher than $1,000 have been issued.
The Federal Reserve Banks will advise agents of the date the tables should be expected each month and if they
are not received by that time, the Federal Reserve Bank should be notified immediately. E X T R E M E C A R E
S H O U L D BE T A K E N T O U S E O N L Y T H E T A B L E E S P E C IA L L Y P R E P A R E D FO R T H E M O N T H
D U R I N G W H I C H P A Y M E N T S A R E B E IN G M A D E .
21.

Payment of redemption value.— A s further stated in Sec. 325.12, the current redemption value of a

bond shall be paid by the agent in cash.

However, no objection will be made to any arrangement mutually

agreeable to the owner requesting payment and the agent making payment whereby the owner accepts, in lieu
of cash, a credit to his checking, savings or share account with the agent, or a check or similar instrument payable
to his order.
V III. R E C O R D IN G P A Y M E N T D A T A O N P A ID B O N D S
22.

General.— In order to facilitate handling of and accounting and settlement for paid bonds as well as

to safeguard against payment of the bonds a second time, it is important for all concerned that paid bonds be
handled by paying agents in a manner which will accomplish these objectives at the time payment is made.
W ith this in mind the Treasury Department has prescribed a hand stamp setting forth certain data to record
the payment, for use by tellers or other employees of qualified paying agents. Qualified paying agents of United
States savings bonds will use the same payment stamp furnished to them by the Federal Reserve Bank for
stamping savings bonds. It is extremely important to the economical processing of the bonds by the Treasury
that the bonds not be spindled, folded, pinned, or clipped together or otherwise bent, torn or mutilated.
Accordingly the full cooperation of paying agents in processing and mailing the bonds in avoiding such mutila­
tion will be sincerely appreciated.
Page 18




23.

Payment stamps.— Financial institutions not noiv qualified as paying agents of savings bonds will be

furnished hand stamps (hereinafter referred to as “ payment stam p (s)” or “ stam p (s)” ) , by the Federal
Reserve Bank of the District. Each such bank or other financial institution seeking qualification should advise
the Federal Reserve Bank as soon as possible of the data it desires recorded on the stamps it may use and the
initial number of stamps to be required. Paying agents of savings bonds will use the payment stamps provided
in connection therewith.

W hen payment stamps are requested the number should be kept to a minimum

consistent with practical necessity. In the interest of uniformity it is preferable that only the Federal Reserve
Banks shall obtain the payment stamps. The data ordinarily to be included in the payment stamp will be as
follow s:
P A ID $

I For recording amount paid

T H E X Y Z N A T IO N A L B A N K

I Name and location of agent and such code number as may be assigned

68-76 X Y Z , V A . 68-76

j

S E P T . 20, 1947
BY

by Federal Reserve Bank

< T o show actual date of payment

...................................................... 10

I A n agent may elect, either to (1 ) show a code number or symbol
I

representing the person making payment, (2 ) provide space for

\

the written initial or signature of such person, or (3 ) both.

In order to minimize the possibility of subsequent alteration and to effect a distinct and permanent record on
microfilm, the Department urges the use of a black or dark blue penetrating ink in imprinting the payment stamp
and recording other data required thereby. Other colors of penetrating inks dark enough to microfilm satis­
factorily may be used. However, it will be appreciated if agents can arrange eventually to use only the black
or dark blue colors. In any event, extreme care should be taken not to smear or blur the data recorded on
the bonds.

24.

Use of payment stamps.—

(a ) Recording amount of payment.— A N I M P O R T A N T

CHANGE

COM PARED

TO

S A V IN G S

B O N D P R O C E D U R E IS S E T F O R T H IN T H IS P A R A G R A P H . A s with savings bonds, Armed Forces
Leave Bonds should have the payment stamp imprinted thereon as soon as they are paid. Also as in the case
of savings bonds the payment stamp should be imprinted on the face of the bond. H O W E V E R T H E IM P R IN T
SH O ULD

BE RECORDED

IN

TH E UPPER LEFT

HAND

C O R N E R O F T H E B O N D S IN A

M A N N E R W H I C H W I L L P E R M IT R E C O R D IN G T H E A M O U N T P A ID I M M E D I A T E L Y A B O V E
T H E P O R T R A IT A N D U N D E R T H E BO R D ER E M B E L L IS H M E N T S .

(See exhibit No. 1, attached,

showing an outline of a bond with a specimen stamp appearing in proper position.)

Although the Department

regrets the necessity for this variation from the savings bond procedure for recording the payment data, it will
be appreciated if paying agents will give special attention thereto. Full compliance will allow the Treasury to
realize the maximum economy possible in functioning the bonds through the mechanical processes possible with
this punched card bond.

Immediately after stamping the bond the amount of the bond payment should be

written in such space on the face of the bond by use of a black or dark blue ink or other colored ink dark
enough to microfilm satisfactorily.

Although indelible pencil or a dark colored crayon will be accepted, the

use thereof is not encouraged. In any recording made on the face of a bond by an agent, extreme care should be
exercised to prevent defacing the bond’s serial number, the name, service serial number and address, if any, of
the owner, or the issue date.
(b ) Recording date, transaction and the name and location of agent.— A s provided in Sec. 325.12, each
bond shall show in addition to the amount of payment (a ) the date of the payment (month, day and year), (b )
the name, location and code number assigned to the paying agent by the Federal Reserve Bank, and (c ) the
word “ P A ID ” . All of this data will be provided in the agent’s payment stamp.

Particular care should be

taken to insure recording the correct date of payment of each bond. A number or other symbol may be included
to indicate the person in the institution qualified as the paying agent who is responsible for the bond payment,
and provision may be made for his signature or initials.




Page 19

IX . F O R W A R D IN G B O N D S T O F E D E R A L R E S E R V E BA N K S
25.

Preparation.— Sec. 325.13 provides that paying agents shall submit paid bonds to Federal Reserve

Banks under instructions of such Banks. These instructions will not require any special sorting of bonds prior
to shipment, except that bonds paid in one month must be segregated from bonds paid in another month, and
Armed Forces Leave Bonds must not be intermingled with savings bonds. The latter requirement does not
prohibit the dispatch of Armed Forces Leave Bonds and savings bonds in the same envelope or wrapper but
care should be taken to maintain the segregation required, including separate transmittal letters, and to
adequately protect the Armed Forces Leave Bonds against tearing, bending, or other mutilation.
(a ) Transmittal lists.— Paying agents will be expected to prepare and forward to the Federal Reserve
Bank with each group of paid bonds a list which will :
( 1 ) Identify the agent.
(2 ) Show the month in which the bonds were paid.
(3 ) Show the date the bonds were forwarded.
( 4 ) Set forth, in the order in which the bonds are prepared fo r shipment, the amount paid on each bond
in the shipment. Where the method used by the agent for recording bond serial numbers permits, no
objection will be made to the agent grouping all bonds bearing the same paid amount and listing them
in the following manner—
10 @

$53 .8 5 ................ $538.50

10 @

$54.16................

541.60

Etc.
The bonds in this instance should be grouped according to the amount of payment stated on the bonds.
(5 ) Set forth the total amount paid on all bonds in the shipment.
( 6 ) Set forth opposite each amount listed the appropriate serial number of the bond, unless a record of
such information is maintained in some other form by the agent. In this connection any qualified pay­
ing agent is authorized to microfilm the face or reverse side o f the bonds, or both, if it so desires.
Such film records must be maintained as confidential.

The agent may project such film records upon

a screen but no prints, enlargements, or other reproductions thereof shall be made except with official
permission which may be secured through the Federal Reserve Bank.
( 7 ) Show the actual total number of bonds submitted with each list.

This is essential to the maintenance

of records and the simplification of the computation and reconcilement of claims of paying agents for
services rendered in the payment of bonds.
( 8 ) Indicate the manner in which settlement and possible adjustments for the bonds should be made by the
Federal Reserve Bank.
The original of these lists, hereinafter referred to as “ transmittal letters,” must be included with the bonds
when they are forwarded to the Federal Reserve Bank.

A copy of the transmittal letter and a record of the

bonds by serial number and amount paid must be retained by the paying agent.

For the benefit of the paying

agent in presenting the facts in connection with any claim for relief which may have to be presented on account of
bonds lost, destroyed or damaged as a result of shipment, it is suggested that the employee or employees who
listed and prepared the bonds for shipment and who dispatched them to the Federal Reserve Bank should initial
the copy of the transmittal letter retained by the agent.
(b ) These paid bonds will be subject to the provisions of the Government Losses in Shipment Act, as
amended, while they are in shipment (see paragraph 27 hereof). It will be essential to any claim that may be
made by a paying agent for relief under the provisions of that Act, in the event of the loss or destruction of or
damage to the bonds during shipment, that the bonds be identified by serial numbers and amounts paid. It will
be the responsibility of the paying agent to produce such information.

If the Treasury Department is advised

of the month of payment, and the serial number and the amount paid on each bond in the shipment, the Depart­
ment will be able to identify the bonds included in the shipment and make settlement with the paying agent for
the loss resulting from shipment. Relief may not be granted otherwise.

A paying agent may establish a record

of the bonds included in a shipment (i) by microfilm, (ii) by recording the bond serial number on its transPage 20




mittal letters directly opposite the respective bond redemption values set forth thereon, or (iii) it may establish
the necessary record in any other manner it deems desirable.

I f a paying agent does not maintain such record,

it will be considered as prima facie evidence that it does not desire to avail itself of the protection afforded
under the Government Losses in Shipment Act.
26.

Frequency of making shipments.— A paying agent may forward bonds to the Federal Reserve Bank

each business day, although where an agent pays only a small volume of bonds it will be advantageous if
daily shipments can be avoided.

IN A N Y E V E N T A L L

P A ID B O N D S O N

HAND

ON

TH E LAST

B U S IN E S S D A Y O F A M O N T H M U S T B E F O R W A R D E D T O T H E F E D E R A L R E S E R V E B A N K
NOT LATER TH AN
27.

T H E F O L L O W I N G B U S IN E S S D A Y .

Manner of shipment and insurance.— The shipment of paid bonds to a Federal Reserve Bank by a

paying agent will be made at the risk of the United States. Accordingly, the shipments will be subject to the
provisions of the Government Losses in Shipment Act, as amended,1 and the regulations2 prescribed pursuant
thereto, except as may be modified hereunder.

It is essential to obtaining relief under the Act that there be a

compliance with the prescribed regulations. Bonds paid under the provisions of Treasury Department Circular
N o. 811 may be prepared for dispatch and may be sent to the Federal Reserve Bank in the same or a substantially
similar manner in which the agent would handle and ship paid savings bonds or checks. Paid savings bonds and
Armed Forces Leave Bonds may be included in the same envelope or wrapper (see paragraph 2 5 ). Assuming
that (i) the basic record of shipment, as provided in paragraph 25 hereof, is maintained, (ii) the bonds are
properly stamped, as provided in paragraph 24 hereof, and (iii) due care is used in handling and dispatching
the paid bonds, an agent should have no difficulty in establishing its claim for and obtaining relief under the
Act in the event a shipment is lost, destroyed or damaged. Pending establishment of such of these claims as may
be presented by an agent, the Treasury will allow an immediate temporary settlement with the agent on the
basis of the amount stated in its transmittal letter, if the agent submits the required description by bond serial
numbers of each of the bonds involved in the claim.
28.

Records and reports of shipments.— A paying agent will not be required to mail or send separate

notices of each shipment made either to the Federal Reserve Bank o f the District or to the Treasury Department,
nor will the agent have to make any accumulated report of shipments effected under the Government Losses in
Shipment Act.

In the event it comes to the knowledge of an agent that any shipment made by it has been

lost, destroyed or damaged, or if it has been so alleged, immediate notice thereof should be given to the Federal
Reserve Bank.

A ll provisions of Treasury Department regulations relating to the handling and shipment of

valuables under the Government Losses in Shipment Act, as amended, which are inconsistent with the pro­
visions of this memorandum are hereby modified with respect to the shipment of paid bonds by qualified paying
agents.
X . S E T T L E M E N T F O R P A ID B O N D S
29.

A s provided in Sec. 325.14, immediate settlement will be made by Federal Reserve Banks for the total

amount o f paid bonds submitted by a paying agent, subject to audit and verification.

Settlement will be made

according to the request of the paying agent, by credit in its reserve account if the agent is a bank which is a
member of the Federal Reserve System, or in its clearing account (if any) if the agent is a bank which is not
a member of the System, or in the reserve or clearing account of a correspondent of an agent, or settlement will
be made by check issued by the Federal Reserve Bank drawn on the Treasurer of the United States. Although
Federal Reserve Banks will examine paid bonds promptly, such examination and redemption of the bonds will
not always be possible on a daily basis. In each instance settlement will be subject to later adjustment for incor­
rect or improper payment of bonds.

XL
30.

A D JU S T M E N T O F B O N D S E R R O N E O U S L Y P A ID

Error in amount of payment.— In the event of over payment or under payment of the proper redemp­

tion value due on a bond, the Federal Reserve Bank will make the necessary correction on the bond and its
1 A ct of July 8, 1947, C. 444, Sec. 1, 50 Stat. 479 as amended by the A ct of August 10, 1939, C. 665, Sec. 1, 53 Stat. 1358; U .S .C ., title 5,
Sec. 134.
* Treasury Department Circulars Nos. 576 and 577.




Page 21

records and will advise the paying agent of the discrepancy, furnishing all the details necessary for the agent to
effect an adjustment with the owner. When a paying agent is advised by the Federal Reserve Bank that an under
payment has been made, the Treasury will expect the paying agent to see that the owner receives the full amount
of the under payment.
31.

Material irregularity discovered by Federal Reserve Bank.— Bonds bearing material irregularities of

a nature which make it necessary to return them to the paying agent will be returned promptly after discovery of
the irregularity by the Federal Reserve Bank.

In those cases where the agent is not authorized to pay the

returned bond the agent, upon effecting settlement with the person presenting the bond, should cancel its pay­
ment stamp before releasing the bond to such owner. Whenever necessary payment stamps should be canceled by
writing or stamping in a dark colored ink the word “ canceled” and the date of cancellation followed by the
signature and title of an officer of the paying agent.

If a bond appears to have been materially altered or muti­

lated with intent to defraud, the original bond will be retained by the Federal Reserve Bank for investigation of
the case and a photostatic copy of the bond forwarded to the agent. Thereafter, if and when the bond is accept­
able for redemption, the Federal Reserve Bank of the District will give instructions to the agent with regard to
disposition of the case. Adjustment for the amount of payment represented by the bond, if any, will be made in
the manner set forth in paragraph 30 hereof.

In any event paying agents are expected to respond promptly

when so requested in connection with paid bonds presented by them.
32.

Errors or irregularities discovered by the Department.— W here an erroneous payment of or an irregu­

larity in a bond is discovered by or brought to the attention of the Treasury Department after receipt by it of
the bond, prompt notice will be given to the paying agent and the case will be handled as the circumstances may
require: Provided, however, that the agent which paid the bond will not be required to make restitution in con­
nection with such bond unless and until the Secretary of the Treasury has determined that a final loss has
occurred and he is unable to find that such loss resulted from no fault or negligence on the part of the agent.

X II. R E IM B U R S E M E N T F O R S E R V IC E S IN P A Y IN G B O N D S
33.

Under the provisions of Sec. 325.5 of Circular No. 811, a qualified paying agent is entitled to receive

reimbursement for its services in paying the bonds.
presenting claims for such reimbursement.

Forms will be supplied by the Federal Reserve Banks for

Each agent desiring reimbursement should present its claim

promptly after the close of each calendar quarter (ending March, June, September, and December) ; Provided,
however, that the first four months (September to December 1947, inclusive) will be treated as the first quarter
for reimbursement purposes.
34.

Thereafter the usual calendar quarter periods will be observed.

The form (which will be the same as that used in connection with reimbursement for savings bond

payments) will provide for stating the number of bonds paid and the amount of reimbursement claimed.

In

stating the number of bonds paid during a reimbursable period, there should be taken into consideration the
total number of bonds included on each of the agent’s transmittal letters bearing a date of shipment within the
period or received during the period, according to the basis prescribed by the Federal Reserve Bank of the
District. Beginning with January 1, 1948, Armed Forces Leave Bonds and savings bonds will be combined for
the computation of reimbursement but for that purpose only. Each branch (including authorized bank facilities)
of a qualified paying agent may be regarded as a separate entity in computing claims, provided separate trans­
mittal letters support bonds paid by each. Such bonds may be shipped directly to the Federal Reserve Bank by
the branch, or through the head office. In the event a Federal Reserve Bank returns an improperly paid bond
(or a photostatic copy thereof) to an agent, the tally for the current quarter shall be reduced accordingly.

If

the bond may be corrected and resubmitted as new business the bond will be counted, for the purpose of comput­
ing reimbursement, when it is resubmitted.

X I I I . M IS C E L L A N E O U S
35.

Destruction of records.— Records accumulated in connection with the payment of Armed Forces Leave

Bonds may be disposed of in accordance with the Bank’s desires in the matter with one exception. A n y records
pertaining to a claim made or to be made to the Treasury on account of loss, theft or destruction of any paid
bonds, should be retained until such claim is finally adjudicated by the Department. It is presumed in this
Page 22




paragraph that transmittal letters for paid bonds sent to a Federal Reserve Bank or other records pertaining
thereto, would not be destroyed by a bank until the bank was reasonably certain that the bonds and transmittal
letters had been received by the appropriate Federal Reserve Bank or Branch.
36.

A n y inquiry in connection with this memorandum or other inquiry with respect to this subject should

be communicated to the Federal Reserve Bank of the District in which the paying agent is located.
A . L. M . W IG G IN S
Acting Secretary of the Treasury.

EXHIBIT NO. I
Outline of an Armed Forces Leave Bond
with a specimen payment stamp appearing in proper position




IN D E X
Paragraph
Numbers
ANNOUNCEM ENTS OF A U TH O R ITY TO
P A Y BONDS
Approved announcements ................................... ........... 5,6
Lobby and window display signs...................................
6
Prior to September 2, 1947...........................................
4
Prohibition against making............................................
4
Publication of ................................................................. 5,6
Radio ................................................................................
5
DESCRIPTIO N OF BONDS
Data inscribed by issuing agents...................................
8
Denominations authorized for issuance.................... 8 ,8(a)
Design and type of bond..................................................
8
General..............................................................................
8
Issue dates ..................................................................... 8 (c )
Name of owner inscribed.............................................. 8 (b )
Service serial number on bonds................................... 8 (b )
DESTRU CTION OF R E CO RD S...................................

35

DISCOUNTING, H Y PO TH E CATIO N , ETC.,
OF BONDS ........................................................ 7 ,10(a)
PA Y M E N T OF BONDS
Accounting for paid bonds
Adjustments ........................................................ 30,31,32
Loss in shipm ent................................... 2 5 (a ),2 5 (b ),27
Manner of settlement for......... .................... 25(a) (8), 29
Microfilming, other recording...................... 25 ( a ), 25 (b)
Preparation for dispatch............................................... 25
Records, reports of paid bonds and
shipments.................................. 25(a) (6), 25(b), 27,28
Segregation from savings bonds................................. 25
Settlement .................................................... 25(a) (8), 29
Shipment of bonds, frequency of, etc.......................... 26
Shipment of bonds, manner o f ............... ...................... 27
Sorting of bonds............................................................ 25
Transmittal lists ...................................................... 25(a)
Address of owner, in request for payment. . ................. 12
Adjustments, erroneously paid bonds
Discovered by Treasury Department.......................... 32
Incorrect am ounts........................................................ 30
Material irregularity discovered by Federal
Reserve B a n k ............................................................ 31
Cancellation of paid bonds later discovered
to be ineligible for payment....................................... 31
Description of bonds......................................................
8
G eneral......................................................................... •..
9
Identification
Acceptable documents for establishing identity___ 10(b)
Acceptable documents for establishing identity,
not prescribed by Treasury..................... 10(a), 10(c)
Change of name, by marriage................................ 10(a)

Page 24




Paragraph
Numbers
Depositors................................................................. 10(e)
Documents
Alteration, check fo r............................................. 10(b)
Check data on ...................................................... 10(b)
Record data relative to................... 10(a), 10(b), 10(c)
General .............................................................. 7 ,9 ,10(a)
Notations on bonds relating to ........ 10(a), 10(b), 10(c)
Personal identifiers ................................................. 10(d)
Separation papers, presentation o f ........ 10,10(a), 10(b)
Limitation on payments
9
Change of name (other than by marriage)...............
Death, incompetency, etc............................................... 18
Discounted, hypothecation, etc......................................
7
Duplicate bonds ............................................................ 17
General ..................................................................... 10(a)
Identification, not completely satisfactory................. 9,10
Incompetency, death, etc.............................................. 18
Mutilated, defaced, irregular bonds........................ 15,16
Partial payments .......................................................... 19
Persons other than owners, presented by. . . . . 9 , 10(a)
Prohibition on any payments prior to
September 2, 1947......................................................
7
Requests for payment not properly completed........ 11,12
Value cannot be determined......................................... 15
Losses resulting from
Action by Treasury concerning.................................. 32
Mutilation of bonds, avoiding...................................... 22,25
Payment stamps and ink to be used............................ 23,24
Recording data of payment............................................... 24
Redemption values and tables........................................... 20
Redemption values, payment o f....................................... 21
Redemption values, recording
on bond............................................... 24(a), Exhibit No. 1
Signature by mark............................................................ 13
Signature, change of name by marriage.........................
9
Signatures, comparison o f............................................. 10,11
Signatures, to requests for payment.......................... 11,12
Signatures, variations compared to spelling
on face of bond................................................................ 12
Q U ALIFICATIO N TO P A Y BONDS
By qualified agents for savings bonds.......................... .....2
By other eligible financial institutions........................... .... 2
By branches of agents...................................................... .... 3
Subagents.......................................................................... .... 3
REIM BURSEM ENT FOR PAID BONDS
Claim for, may be filed..................................................... 33
Combine number of paid savings and leave
bonds after January 1, 1948........................................ 34
Number paid bonds included.....................25(a) (7), 33,34
Periods for making reimbursement................................ 34

f

R E G U L A T IO N S G O V E R N IN G R E P L A C E M E N T O U T OF T H E FU N D E ST A B L ISH E D B Y T H E G O V ­
E R N M E N T LOSSES IN SH IP M E N T A C T , AS A M E N D E D , OF A N Y LOSSES R E SU L T IN G F R O M
P A Y M E N T S M A D E IN C O N N E C TIO N W IT H T H E R E D E M P T IO N OF U N IT E D STA T E S SA V IN G S
B ON DS A N D A R M E D FORCES L E A V E BONDS

V
947 ,

v

TREASURY DEPARTM ENT

Departm ent Circular N o. 751
Second R evision

O F F I C E OF T H E S E C R E T A R Y

FiscaTservice

Washington, August 1, 1947

Bureau o f the Public Debt

Department Circular No. 751, Revised, dated June 30, 1945, (31 C .F .R . 1945 Supp. 322) is hereby
amended in order to include Armed Forces Leave Bonds.

That circular is issued as a Second Revision to

read as follows:
Subpart A — R E G U LA TIO N S P R E SC R IB E D
Sec. 322.1.

Application of regulations.— Pursuant to the authority of Section 2 2 ( i) of the Second Liberty

Bond Act, as amended, (5 9 Stat. 47, 31 U .S .C . and Supp. 7 5 7 c (i)) and the Armed Forces Leave A ct of 1946,
as amended by Pub. Law N o. 254, 80th Cong., the following regulations are hereby prescribed for the replace­
ment out of the fund established by the Government Losses in Shipment Act, as amended, of any losses to the
United States resulting from payments made in connection with the redemption of United States Savings Bonds
and Armed Forces Leave Bonds, and shall apply to losses resulting from payments made (1 ) by the Treasurer
of the United States, (2 ) by any Federal Reserve Bank or Branch, as Fiscal Agent of the United States, and
( 3 ) by any bank or other financial institution duly qualified as a paying agent pursuant to Treasury Department
Circulars N o. 750, Revised, or N o. 811.

Subpart B — R E P O R TS OF LOSSES
Sec. 322.2.

L oss to the United States.— A loss to the United States may result from an erroneous (or

unauthorized) payment in connection with the redemption of the bonds.
Sec. 322.3.

Erroneous payments reported to or discovered by Federal Reserve Banks.— If a financial

institution, qualified to pay savings bonds or Armed Forces Leave Bonds, finds an erroneous payment to have
been made, either before or after the bonds have been forwarded to the Federal Reserve Bank, immediate report
thereof should be made to the Federal Reserve Bank. A ny such erroneous payments so reported, and any other
erroneous payments found by a Federal Reserve Bank of bonds received from a duly qualified paying agent
shall, so far as possible, be adjusted between the Federal Reserve Bank and the paying agent concerned.
Sec. 322.4.

Report to Treasury of cases involving erroneous payments.— A ny such erroneous payments

which cannot be adjusted by a Federal Reserve Bank and any other erroneous payments found after the
account of the Treasurer of the United States has been charged shall immediately be reported by the Federal
Reserve Bank to the Treasury Department, Division of Loans and Currency, Merchandise Mart, Chicago 54,
Illinois, in the case of Savings Bonds or, in the case of Armed Forces Leave Bonds, to the Division of Loans
and Currency, Washington 25, D . C.

Subpart C— F IN A L D E T E R M IN A T IO N OF LOSSES
Sec. 322.5.

Reported erroneous payment, general action by Treasury.— Following receipt of the report

of an erroneous payment, the Treasury Department will appropriately advise the paying agent concerned, unless
such action is unnecessary. The Department shall determine whether or not appropriate adjustment may be
effected with the persons concerned in the erroneous payment and in this connection will expect the cooperation
of the paying agent, if necessary.
(a ) If it is determined that no loss to the United States will occur the paying agent will be so advised.
(b ) If it is determined that a final loss to the United States has occurred, the paying agent will be given
every opportunity to present the full facts relating to the payment for consideration of the Secretary of the




Treasury. If the Secretary shall determine that the final loss resulted from no fault or negligence on the part of
the paying agent, notice to that effect will be given the paying agent and he will be relieved from liability to the
United States. If, however, the Secretary of the Treasury is unable to find that the loss resulted from no fault
or negligence on the part of the paying agent, notice to that effect will be given such paying agent, who will be
expected to make prompt restitution.
Sec. 322.6.

Restitution by paying agents.— In no case will the Treasurer of the United States, a Federal

Reserve Bank (including any of its Branches) or the financial institution qualified as a paying agent, whichever
made the erroneous payment, be called upon to make restitution unless and until the Secretary has determined
that a final loss has occurred as a result of an erroneous payment, and is unable to find that such loss resulted
from no fault or negligence on the part of the paying agent.

Subpart D— R E P L A C E M E N T OF LOSSES O U T OF FU N D
Sec. 322.7.

Replacement and recovery in connection with losses.— W hen it is established to the satisfaction

of the Secretary of the Treasury that a loss has resulted from a payment made in connection with the redemp­
tion of a United States Savings Bond or an Armed Forces Leave Bond the loss shall be subject to immediate
replacement out of the fund established by the Government Losses in Shipment Act, as amended. Any recovery
or repayment on account of any such loss as to which replacement shall have been made out of the fund, shall
be credited to the fund.
Subpart E — IN V E S T IG A T IO N OF LOSSES
Sec. 322.8.

Use of United States Secret Service.— The Treasury Department, and, in appropriate cases,

Federal Reserve Banks, as Fiscal Agents of the United States, may request the Secret Service to investigate
losses and assist in the recovery of improper payments. The Treasurer of the United States, the Federal Reserve
Banks, and qualified paying agents should cooperate with the Secret Service to the fullest extent in facilitating
investigations and making recoveries and they will be expected to take such actions as may be necessary on their
part to complete such investigations and recoveries.

Subpart F— SU P P LE M E N TS, A M E N D M E N T S , E TC .
Sec. 322.9.

Supplements, amendments, etc.— The Secretary of the Treasury may at any time or from time

to time supplement, amend, or withdraw, in whole or in part, the provisions of this circular, or of any amend­
ments or supplements thereto, information as to which will be furnished promptly to the Federal Reserve Banks
and to eligible financial institutions qualified to make payments of savings bonds or Armed Forces Leave Bonds
under the provisions of Treasury Department Circulars N o. 750, Revised, and No. 811, respectively.
Compliance with the notice, public rule making procedure and effective date requirements of the
Administrative Procedure Act (Pub. Law 404, 79th C on g.; 60 Stat. 237) is found to be unnecessary with
respect to this revision for the reason that it is issued merely to conform the provisions of Department Circular
N o. 751, Revised, to Pub. Law 254, 80th Cong., amending the Armed Forces Leave Act of 1946.
This revision will become effective on September 2, 1947.




A . L. M. W IG G IN S
Acting Secretary of the Treasury.

REGULATIONS GOVERNING ARMED FORCES LEAVE BONDS1
1947
Department Circular No. 793
dated
November 12, 1946
Revised

TR EASU RY DEPARTM ENT
O

f f ic e

Fiscal Service
Bureau of the Public Debt

To

M

em bers an d

F

orm er

of

S

t h e

ecretary

Washington, August 1, 1947

M

em bers of th e

A

rm ed

F

orces of t h e

U

n it e d

S

tates an d

O

thers

C

oncerned

:

Armed Forces Leave Bonds are issued pursuant to the Armed Forces Leave Act of 1946 as amended 2
(hereinafter referred to as the A ct) to living members and living former members of the Armed Forces of the
United States in settlement and compensation of accumulated leave under the conditions set forth in the Act.
In accordance with 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 authority contained in said Acts, Department Circular
No. 793, dated November 12, 1946, (31 C F R 1946 Supp., 3 2 4 ), which contains the regulations governing Armed
Forces Leave Bonds, is hereby amended and issued as a First Revision to read as follows:
I.
324.1.
Bonds” .

SU B ST A N T IV E R E G U L A T IO N S

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 Treasury
(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.3 The name and serial or service number of the owner will be inscribed
on the bond and at the option of the issuing agent the address may also be inscribed. N o exchange will be per­
mitted 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 discharged 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, but shall be redeemable in cash at any time after September 1, 1947, at the option of the owner, at
full face value plus accrued interest. Interest will accrue at the rate of 2J ^ % 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. Inter­
est 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 of 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. N o claims by attempted transferees or by persons loan­
ing money on the security of the bonds will be recognized.
324.5. Claims o f 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 credi­
tors, trustees or receivers in bankruptcy or equity will be recognized, and no payment o f 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.
324.6. Assignment to the Administrator of Veterans’ Affairs.— A ny 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 V A Form 9-1625, “ Directions for use of Proceeds of Armed Forces Leave Bonds” , obtainable
1 Section 324.13 hereof relates to payment of Armed Forces Leave checks to survivors.
* Pub. Law 704, 79th Cong. Amendatory A ct is Pub. Law 254, 80th Cong.
* Except that upon request settlement and compensation will be made entirely in cash to any applicant who has not made application for
settlement and compensation and who makes application to the Secretary after July 26, 1947, the date of enactment of the amendatory Act. 'Hie
term “ Secretary” as used in this footnote means in the case of personnel of the Army, the Secretary of W a r ; in the case of personnel of the Navy
and Marine Corps, the Secretary of the N a vy; and in the case of personnel of the Coast Guard, the Secretary of the Treasury, and the designated
representatives of each such Secretary.




at any Veterans’ Administration Office. Before submitting the bond to the Veterans’ Administration the assign­
ment 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. N o certification or witness to the signature of the owner on such assignment
form will be required.
324.7. General payment and redemption provisions.— Armed Forces Leave Bonds may be redeemed before,
at, or after maturity, in accordance with the terms of this Circular at face value plus accrued interest to the
date of maturity or to the last day of the month in which payment is made whichever may be earlier. Only
payment of the entire amount will be permitted. N o partial payment and no reissue of the bond in part may
be made. N o power of attorney to request payment in behalf of the registered owner will be recognized.
324.8. Payment to registered owner (general).— A t any time after September 1, 1947, an owner whose
name is inscribed on the face of an Armed Forces Leave Bond may at his option redeem such bond at full
face value plus accrued interest upon ( 1 ) presentation of the bond (unless marked “ D U P L I C A T E ” ) to any
incorporated bank or trust company or other organization qualified as a paying agent under the provisions
of Department Circular No. 811 or any amendment thereto, ( 2 ) establishing his identity, (preferably through
use of original separation papers bearing his description and witnessed signature) to the satisfaction of the
paying agent, and ( 3 ) signing the request for payment exactly as his name is inscribed on the face of the
bond and adding his home or business address. Even though the request for payment has been signed or
signed and certified prior to the presentation of the bond, nevertheless, the paying agent is required to estab­
lish to its satisfaction the identity of the owner requesting payment and such paying agent may require the
owner to sign again the request for payment. N o charge will be made to the owner.
324.9. Payment to registered owner (other cases).— Registered owners to whom qualified paying agents
are not readily accessible and those who have bonds marked “ D U P L I C A T E ” should sign the request for pay­
ment of their bonds in the presence of and have their signatures thereto duly certified by an authorized certify­
ing officer and should present and surrender their bonds to the appropriate Federal Reserve Bank4 or to the
Treasurer of the United States, Washington 25, D. C., except that bonds marked “ D U P L I C A T E ” should be
forwarded to the Division of Loans and Currency, at the same address.
(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.
(b ) Certifying officers.— The following officers are authorized to certify requests for payment of Armed
Forces Leave B onds:
( 1 ) Designated officers.— Certain designated officers in the Treasury Department in W ashington;
( 2 ) Banks, trust companies and branches.— A n y officer of any bank or trust company incorporated in
the United States or its organized territories, or domestic or foreign branch of such bank or trust
company, including those doing business in the organized territories or insular possessions of the
United States under Federal charter or organized under Federal law, Federal Reserve Banks,
Federal Land Banks, and Federal Home Loan Banks; any employee of any such bank or trust
company expressly authorized by the corporation for that purpose, who should sign over the title
“ Designated Employee” ; and Federal Reserve Agents and Assistant Federal Reserve Agents,
located in the several Federal Reserve Banks;
( 3 ) Veterans’ home or hospital or other facility.— The officer in charge of any home, hospital, or
other facility of the Veterans’ Administration (only for patients and members of such facilities) ;
(4 ) Foreign countries.— United States diplomatic and consular representatives; notaries public, if their
official character and jurisdiction are certified by a United States diplomatic or consular officer
over an impression of his rubber stamp, or by his certificate over his seal which should be trans­
mitted with but should not be impressed on the bond itself. (See also ( 5 ) hereof) ;
( 5 ) Arm ed Forces.— Commissioned officers of the Arm y, Navy, Marine Corps, and Coast Guard of
the United States for members of their establishments or civilian employees (and the families of
such members or employees) under their jurisdiction, persons in countries in which there are no
United States diplomatic or consular representatives and persons who are in areas remote from
such representatives;
( 6 ) Issuing agents fo r saznngs bonds of Series E .— A ny officer of a corporation which is a duly quali­
fied issuing agent for savings bonds of Series E may certify a request for payment of an Armed
Forces Leave Bond. All certifications by such officers must be authenticated by a legible imprint
of the issuing agent’s dating stamp;
(7 ) Special provisions.— The Commissioner and Associate Commissioner of the Public Debt, the Chief
of the Division of Loans and Currency, or a Federal Reserve Bank is authorized to make special
provision for certification in any particular case in which none of the officers authorized to certify
requests for payment of Armed Forces Leave Bonds is readily accessible.
(c ) Instructions to certifying officers.— Certifying officers should require positive identification o f the per­
son signing a request for payment.
4 The Federal Reserve Banks are located at Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis,
Kansas City, Dallas, and San Francisco.




324.10. 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 surviving
parents, if any. I f 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 administrator 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 any; otherwise forwarded to the Division of Loans and Currency, Washington 25, D. C., with
a signed statement that there are no known survivors.
324.11. 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 of the Treasury 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 P D 2066,
copies of which may be obtained from any Federal Reserve Bank. See section 324.15 for instructions as to
filing the application.
(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 stepmother,
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 parents may receive the
benefits provided under this Act and preference shall be given to the parent or parents, not exceed­
ing 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. N o 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 proceed­
ings for the appointment of a legal representative.
(c ) A ll 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 of 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 payment 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 of United States registered bonds.
324.12. 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 “ D U P L I C A T E ” , or at or after maturity by payment of the bond in accordance with the
provisions of Section 8 of the Government Losses in Shipment A ct (U . S. C. 1940 Ed., title 31, sec. 738a ).
Relief in such cases will be governed by the regulations contained in Department 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 of 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.
324.13.

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 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 check issued
in the name of the survivor, payment will be made to his estate.

II.

PRO C EDU R E

324.14. Presentation and surrender of bonds.— Presentation
Bond should be made in accordance with the applicable provisions
is suggested if the owner does not present and surrender the bond
issued in lieu of lost, stolen, destroyed, mutilated, or defaced bonds
ment, Division of Loans and Currency, Washington 25, D. C.

and surrender of an Armed Forces Leave
of this Circular. The use of registered mail
in person. Bonds marked “ D U P L I C A T E ”
should be submitted to the Treasury Depart­

324.15. Payment to survivors.— Survivors applying for payment under section 324.11 hereof should
forward the bonds, accompanied by the applications on Form P D 2066, to the appropriate Federal Reserve
Bank or to the Treasury Department, Division of 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 actual 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 324.11 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 doubtful or unusual cases to the Treasury Department, Division of
Loans and Currency, for final decision.
324.16. 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 of
Loans and Currency are designated to make determinations on behalf of the Secretary as provided in the Act.

III.

GENERAL

324.17. 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.
324.18. Address for communications.— A ll 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 of such bonds in connection with Government life insurance
or national service life insurance payments should be addressed to the Office of the Veterans’ Administration to
which the assured has been paying premiums, or to the Director of Insurance Accounts Service, Veterans’
Administration, Washington 25, D. C.
324.19. 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.
Compliance with the notice, public procedure, and effective date requirements of the Administrative Pro­
cedure A ct (Pub. Law 404, 79th C ong.; 60 Stat. 237) is found to be unnecessary with respect to this revision
for the reason that it is issued merely to conform the regulations governing Armed Forces Leave Bonds to
the Act (Pub. Law 254, 80th Cong.) amending the Armed Forces Leave Act of 1946 under which amendatory
A ct Armed Forces Leave Bonds are made redeemable at the option of the owners at any time after
September 1, 1947.
This revision will become effective on September 2, 1947.




A . L. M . W IG G IN S
Acting Secretary of the Treasury.

^

3 2

*+j)

Savings Bond Redemption Dept.

Sav. B.59-100M-9-47

TRANSMITTAL LETTER
PAID ARMED FORCES LEAVE BONDS

F D ofA new E o I k ANK
EE L
y

INSTRUCTIONS TO PAY IN G AGENTS
D o not schedule on this form bonds paid in different months. Use a separate form for each month. D o not send more than 200
bonds with one transmittal letter.
Paying agents must maintain in their files a record of the serial numbers o f bonds included in each shipment.
Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated.
Forward the bonds together with the original copy o f this transmittal letter to the Federal Reserve Bank o f New York, Savings Bond
Redemption Department, Federal Reserve P.O. Station, New Y ork 45, New York.
Federal R

eserve

Ba

n k

of

N

ew

Y

ork

Savings Bond Redemption Department,
Federal Reserve P.O. Station,
New York 45, New York.

Date............................................................................

W e enclose for settlement......................................................................................................... Armed Forces Leave Bonds paid by us during the
(Number of Pieces— N ot More Than 200)

month o f..........................................................................in the amount of $ ...............................................................
(Total Amount Paid)

IMPRESS PAYM ENT STAMP
IN THIS SPACE

These Spaces for the Use of the Federal Reserve Bank
Payment Month ........................................ ................... Total Pieces ....
Agent’s Number ........................................ ................... Amount Paid ..
Batch N u m ber............................................. ................... Date of Letter
Transaction Code ......................................................... U /C Date ........

Agent’s A /C Credited W ith :
...........................................................................

Check Issued...........................................□

The above impression is made for the purpose
o f identification only. It does not constitute
an acknowledgment of payment for bonds.

P A Y M E N T INSTRU C TIO N S

IMPRESS PAYM ENT STAMP
IN THIS SPACE

Issue check to our order in the amount of

.

.

.

.

Credit our Reserve Account in the amount of

.

.

.

.

♦Credit:
..........................................................................for our account the amount of
Name o f Correspondent
The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment o f payment for bonds.

*D o not use this space unless you desire payment by credit to your account with a correspondent bank.




Sav.

B.59- 100M-9-47

^ ^ otnew^

Savings Bond Redemption Dept.

ork^

TRANSMITTAL LETTER
PAID ARMED FORCES LEAVE BONDS

INSTRUCTIONS TO PAY IN G AGENTS
D o not schedule on this form bonds paid in different months. Use a separate form for each month. D o not send more than 200
bonds with one transmittal letter.
Paying agents must maintain in their files a record o f the serial numbers o f bonds included in each shipment.
Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated.
Forward the bonds together with the original copy o f this transmittal letter to the Federal Reserve Bank o f New York, Savings Bond
Redemption Department, Federal Reserve P.O. Station, New Y ork 45, New York.
Federal R

eserve

Ba

n k

of

N

ew

Y

ork

Savings Bond Redemption Department,
Federal Reserve P.O. Station,
New York 45, New York.

Date............................................................................

W e enclose for settlement......................................................................................................... Armed Forces Leave Bonds paid by us during the
(Number o f Pieces— N ot More Than 200)

month o f..........................................................................in the amount of $ ................................................................
(Total Amount Paid)

IMPRESS PAYMENT STAMP
IN THIS SPACE

These Spaces for the Use of the Federal Reserve Bank
Payment Month ............................................................Total Pieces....................
Agent’s N u m b er........................................ ....................Amount P aid.................
Batch N u m ber.................................................................Date of Letter...............
Transaction Code ..........................................................U /C Date ............ .........

Agent’s A /C Credited W ith:
...........................................................................

Check Issued ...........................................□

The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment o f payment for bonds.

P A Y M E N T INSTRUCTIONS

IMPRESS PAYMENT STAMP
IN THIS SPACE

Issue check to our order in the amount of

Credit our Reserve Account in the amount of
♦Credit:
.......................................................................... for our account the amount of

$.

Name of Correspondent
The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment o f payment for bonds.

♦Do not use this space unless you desire payment by credit to your account with a correspondent bank.




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