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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States J"Circular No. 5 6 0 4 * 1 L January IS, 1965 J Payment of Final Interest on Registered Treasury Securities To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: T h e fo llo w in g statem ent w as m ade public tod a y b y the T re a su ry D ep a rtm en t: A change in the method of making final interest payments on all the Treasury’s registered marketable securities will become effective for the first time on the 2% percent bonds remaining for redemption on February 15th, the Treasury said today. The revised regulations were published on December 30, 1964, and will speed up pay ments of final interest and result in a uniform method covering periodic interest payments of registered Treasury securities. Heretofore the final interest payment on these securities has been paid with the princi pal instead of by separate check as was the case with prior interest payments. The final interest installment will be paid under the new regulations by Treasury check in the same manner as all earlier interest installments have been paid: that is, it will be paid on the maturity date by cheek payable to the holder of record on the Department’s books at the close of business one full month prior to that date. This means that purchasers of registered securities during the month preceding maturity will no longer receive the final interest payment. Accordingly, purchases during the month preceding maturity will involve adjustments on account of accrued interest just as adjust ments have been necessary on purchases of registered securities during the final month of any other interest period. A lfred H ayes, President.
@FedFRASER