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FEDERAL RESERVE BANK
OF N EW YORK
Fiscal Agent of the United States
["Circular No. 5 9 6 0 1
U March 21, 1967
J
UNITED STATES SAVINGS NOTES
To Issuing and Paying Agents fo r Series E Savings Bonds
in the Second Federal Reserve D istrict:
Enclosed is a copy of Treasury Department Circular No. 3-67, Public Debt Series, dated
February 22, 1967, which offers a new type of- Treasury security, called United States Savings
Notes, effective May 1, 1967.
The new notes will be issued on a discount basis in denominations of $25, $50, $75, and $100
(face amounts) at 81 per cent of their face amounts (maturity values) and may not be
redeemed until one year or more after the issue date. They will be issued as of the first day of
the month in which payment of the purchase price is received by an issuing agent and will
mature four years and six months from such issue date.
The notes may be purchased only by individuals and only with the simultaneous purchase
of Series E bonds under payroll savings plans or bond-a-month plans. They will be sold in
registered form only, in the name of a single owner or with another individual as coowner or
beneficiary, and must be identical in registration to the Series E bonds issued at the same
time. The investment yield on the notes, if held to maturity, will be approximately 4.74 per cent
per annum, compounded semiannually.
The total face amount of the notes originally purchased by or issued to any one person
during any one calendar year, including those registered in the name of that person with
another person as coowner, that may be held by that person at any one time is limited to $1,350.
Any issuing agent who wishes to issue the new notes will be required to requalify as an
issuing agent for both Series E bonds and savings notes. Accordingly, we are sending to
issuing agents (not including their branch offices that maintain separate savings bond accounts
with us), enclosed with this circular, (a) Treasury Department Circular No. 4-67, Public Debt
Series, dated February 24, 1967, which describes the procedure to be followed by them in
qualifying for the sale and issue of United States Savings Bonds, Series E, and United States
Savings Notes, and (b) two application-agreement forms, one of which should be completed
and promptly returned to the Savings Bond Department of this Bank to obtain a certificate
of qualification as an issuing agent for Series E bonds and savings notes.
In order that we may be aware of the number of issuing agents that issue Series E bonds
under payroll savings plans or bond-a-month plans, we are also enclosing a questionnaire, which
should be completed and promptly returned to the Savings Bond Department of this Bank.
Additional copies of this circular and the enclosures will be furnished upon request.
A
lfred
H
ayes,
President.
OFFERING OF UNITED STATES SAVINGS NOTES
1967 .
,
TREASU RY DEPARTM ENT,
PublSeIDebTferiesr N o ^ 3 -6 7
O F F IC E OF T H E SECRETARY,
----------
W a sh in gton , F eb ru a ry 22, 1967.
Fiscal Service
TA B LE OF CONTENTS
Section
342.0 OFFERING OF NOTES.
342.1 DEFINITION OF WORDS AND TERMS AS USED
IN THIS OFFER.
342.2 DESCRIPTION OF NOTES.
(a) GENERAL.
(b) DENOMINATIONS AND PRICES.
(c) INSCRIPTION AND ISSUE.
(d) TERM.
(e) INVESTMENT YIELD (INTEREST).
342.3 PURCHASE— REGISTRATION.
(a) PURCHASE.
(b) REGISTRATION.
342.4 LIMITATIONS.
(a) ON DEDUCTIONS.
(b) ON HOLDINGS.
A u t h o r i t y : D epartm ent C ircular, P u b lic D ebt
Series N o. 3-67, dated F ebru ary 2 2 , 1967, and the
table incorporated therein (31 C F R P a rt 3 42 ), are
issued under authority o f Sections 18 and 20 o f the
Second L iberty B on d A ct, as amended (31 U .S .C .
753 and 7 54 bj.
Sec. 342.0. O fferin g o f notes.— T h e Secretary o f
the Treasury, under the authority o f the Second
L iberty B on d A ct, as amended, hereby offers fo r
sale U nited States Savings Notes w hich m ay be
urchased on ly w ith the simultaneous purchase o f
eries E bonds under p ayroll savings plans or
throu gh the bond-a-m onth plan. T h e investment
yield on the notes (herein after generally referred
to as “ savings notes” or “ notes” ) w ill be a p p rox i
m ately 4.74 percent per annum, com pounded semi
annually, i f held to m aturity. T h is offerin g o f
notes, w hich shall be effective M a y 1 , 1967, w ill
continue until term inated b y the Secretary o f the
Treasury.
Sec. 342.1. D efinition o f ivords and term s as used
in this offer.— (a ) “ P a y roll savings plans” refer
to voluntary systems m aintained by em ployers
w hereby their officers and em ployees authorize regu
lar deductions from th eir salaries or wages fo r the
purchase o f U nited States Savings B on ds o f Series
E , referred to herein as “ Series E bonds.”
(b ) “ T he bond-a-m onth plan ” refers to the plan
whereby depositors m aintaining accounts with
financial institutions authorize regular m onthly
deductions from such accounts f o r the purchase o f
Series E bonds.
Section
342.5 TAXATION.
(a) GENERAL.
(b) FEDERAL INCOME TAX ON NOTES.
342.6 PAYMENT OR REDEMPTION.
(a) GENERAL.
(b) JUDGMENT CREDITORS.
342.7 GOVERNING REGULATIONS.
342.8 FISCAL AGENTS.
342.9 RESERVATIONS.
(a) ISSUE OF NOTES.
(b) TERMS OF OFFER.
TABLE OF REDEMPTION VALUES AND INVEST
MENT YIELDS.
(c )
“ P articipan ts” refer to individuals h aving
regular deductions made fro m th eir salaries or
wages fo r the purchase o f Series E bonds pursuant
to p ayroll savings plans, or depositors h avin g regu
lar m onthly deductions made fro m their accounts
fo r the purchase o f Series E bonds under the bonda-m onth plan.
Sec. 342.2. D escrip tion o f notes.— (a ) G en
eral.— Savings notes bear a facsim ile o f the signa
ture o f the Secretary o f the Treasury and o f
the Seal o f the D epartm ent o f the Treasury.
T h ey are issued only in registered fo rm and are
nontransferable.
(b )
D enom inations and prices.— Savings notes
are issued on a discount basis at 81 percent o f their
face amounts (m atu rity valu es). T h e denom ina
tions and purchase prices are:
D enomination
Purcliasc
( fa ce am ount)
price
$25.00________________________________________________ $20. 25
50.0 0
40. 50
75.0 0
60.75
100.00________________________________________________ 81.00
(c )
In scrip tion and issue.— A t the time o f issue
the authorized issuing agent w ill ( 1 ) inscribe on
the face o f each savings note the name and address
o f the owner, and the name o f the beneficiary, i f
any, or the names o f the coow ners and the address
o f the first-nam ed coow ner ,1 ( 2 ) enter the issue date
1 When placing a taxpayer identifying number (an individual’s
social security account number) on a note, the issuing agent should
place the number on the note in the same position as on the com
panion Series E bond.
fo r each $ 1 .0 0 o f deductions fo r the purchase o f
Series E bonds. In addition, deductions fo r the
notes, under a p ayroll savings plan, shall not be
m ore than $20.25 per weekly pay period, or $40.50
per biw eekly or sem im onthly pay period, or $81.00
per m onthly pay period, and under the bond-am onth plan, shall n ot exceed $81.00 per month. A
participant, u pon discontinuing his participation in
a p ayroll savings plan or the bond-a-m onth plan, be
com es ineligible f o r fu rth er purchases o f the notes
until such tim e as he again enrolls in a plan.
(b ) On holdings.— T h e total face am ount o f sav
ings notes origin a lly purchased b y or issued to any
one person durin g any one calendar year, inclu din g
those registered in the name o f that person as owner
and those registered in his name w ith another person
as coow ner, that m ay be held by that person at any
one tim e is lim ited to $1,350.
Sec. 342.5. Taxation.— (a ) General.— F o r the
purpose o f determ ining taxes and tax exem ptions,
the increm ent in value represented b y the difference
between the purchase price and the redem ption
value received fo r a savings note w ill be considered
as interest. T h e interest is subject to all taxes im
posed under the Internal Revenue C ode o f 1954.
T h e notes are subject to estate, inheritance, g ift , or
other excise taxes, whether Federal or State, but are
exem pt fro m all taxation now or hereafter im posed
on the principal and interest th ereof b y any State,
or any o f the possessions o f the U nited States, or b y
any local taxin g authority.
(b )
F ed era l incom e tax on notes.— A n ow ner o f
savings notes w ho is a cash basis taxpayer m ay use
either o f tw o m ethods fo r rep ortin g the increase in
the redem ption value o f the notes fo r F ederal in
com e tax purposes, as f o llo w s :
( 1 ) D e fe r reportin g o f the increase until the
year o f m aturity, actual redem ption, or other
disposition, w hichever is earlier, or
( 2 ) E lect to report the increase fo r the year
in w hich it accrues, in w hich case the election
w ill a pp ly also to all Series E bonds then owned
b y him and those thereafter acquired, as well as
to any other sim ilar obligations sold on a d is
cou n t basis.
I f m ethod (1 ) is used, the taxpayer m ay change to
method ( 2 ) w ithout obtaining perm ission fro m the
Internal Revenue Service. H ow ever, once the elec
tion to use m ethod ( 2 ) is m ade, the taxpayer may
not change the m ethod o f reporting, unless he o b
tains perm ission to do so fro m the Internal Revenue
Service. Inquiries requesting fu rth er inform ation
on Federal taxes should be addressed to the D istrict
D irector, Internal Revenue Service, o f the ta x
p ayer’s district, or the Internal Revenue Service,
W ash in gton , D .C . 20224.
Sec. 342.6. P a y m en t or redem ption.— (a ) G en
eral.— A t any tim e 1 year or more after the issue
date, a savings note m ay be redeemed upon presen
tation and surrender o f the note w ith a duly ex
ecuted request fo r paym ent to any Federal Reserve
ill the right-hand p ortion o f the note in the space
provid ed fo r that purpose, and (3 ) im print there
under, by use o f the agent’s validatin g stamp fo r
the issue o f U nited States Savin gs B on ds, the date
the note is actually inscribed. A note shall be valid
on ly i f an authorized issuing agent receives paym ent
th erefor and duly inscribes, dates, stamps, and de
livers it.
(d ) T erm .— A savings note shall be dated as o f
the first day o f the m onth in w hich paym ent o f the
purchase price is received b y an issuing agent.
T h is date is the issue date and the note w ill mature
and be payable at its m aturity value 4 years and 6
m onths from such issue date. T h e note m ay n ot be
called fo r redem ption b y the Secretary o f the Treas
ury p rior to m aturity, and is not redeemable during
the first year from issue date. T hereafter, the note
m ay be redeemed at fixed redem ption values at the
op tion and request o f the owner.
(e) In vestm en t yield {in ter es t).— T h e invest
ment yield on a savings note w ill be approxim ately
4.74 percent per annum, com pounded semiannually,
i f the note is held to m aturity, but the yield w ill
be less i f the note is redeemed p rior to m aturity.
T h e interest w ill be paid as part o f the redem ption
value. T he note w ill increase in value 1 year after
issue date, and at the beginn ing o f each h alf-yea r
period thereafter until m aturity, at w hich time in
terest w ill cease. I f the note is redeemed before
m aturity, interest w ill cease at the end o f the in
terest period next preceding the redem ption date,
except that i f redeemed on a date on w hich the
redem ption value o f the note increases, interest w ill
cease on that date. (S ee table.)
Sec. 342.3. Purchase— registration.— (a ) P u r
chase.— Savings notes m ay be purchased on ly with
the simultaneous purchase o f Series E bonds, as
provid ed in section 342.0. E m p loyers m ay obtain
notes fo r participants in p ayroll savings plans from
authorized issuing a g en ts 2 o r from any Federal R e
serve B an k or B ranch, or the Office o f the Treasurer
o f the U nited States, Securities D ivision , W a sh in g
ton, D .C . 2 0 2 2 0 . P articipants in the bond-a-m onth
plan m ay obtain the notes from authorized financial
institutions. Paym ents fo r the notes m ay be made
in the same manner as paym ents fo r U nited States
Savings B onds. Issuing agents w ill deliver the
notes at the time o f purchase, or by m ail at the risk
and expense o f the U nited States, but only w ithin
the U nited States, its territories and possessions,
the Com m onwealth o f P uerto R ico and the Canal
Zone. N o m ail deliveries elsewhere w ill be made.
(b ) R egistra tion .— O n origin al issue a savings
note ( 1 ) is lim ited to registration in the name o f a
natural person (w hether adult or m in o r), alone or
w ith another natural person as coow ner or bene
ficiary, and ( 2 ) must be identical in registration to
the com panion Series E bond purchased under the
p a yroll savings plan or the bond-a-m onth plan.
Sec. 342.4. Lim itations.— (a ) O n deductions.—
D eductions fo r savings notes shall not exceed $1.08
3 G en era lly , In corp ora ted banks, tru s t com p a n ies and o th e r
a gen cies as h a ve been d u ly qualified as iss u in g a gen ts o f Series E
bonds.
2
Bank or B ranch, or the Office o f the Treasurer o f
the U nited States, Securities D ivision , W ash in gton ,
D .C . 2 0 2 2 0 , or to any financial institution w hich has
been designated as p ayin g agent b y the Secretary
o f the Treasury.
(b )
J u d gm ent creditors.— Paym ent o f a savings
note to the purchaser at a sale under a levy or to the
officer authorized to levy upon the p rop erty o f the
ow ner under a ppropriate process to satisfy a m oney
ju dgm en t w ill not be m ade until 1 year after the
issue date o f the note.
Sec. 342.7. G overn in g regulations.— S a v i n g s
notes are subject to the regulations o f the Treasury
Departm ent, n ow or hereafter prescribed, govern
in g U nited States Savings Bond,s, contained in D e
partm ent C ircu lar N o. 530, current revision (31
C F R P a rt 3 1 5 ),3 except as otherwise specifically
p rovided herein.
Sec. 342.8. F isca l agents.— F e d e r a l Reserve
B anks and Branches, as fiscal agents o f the U nited
States, are authorized to p erform such services as
m ay be requested o f them by the Secretary o f the
Treasury in connection w ith the issue, delivery,
redem ption, and paym ent o f savings notes.
Sec. 342.9. R eservations.— (a ) Issue o f n otes.—
The Secretary o f the Treasury reserves the righ t to
reject any application fo r purchase o f savings notes,
in w hole or in part, and to refuse to issue or perm it
to be issued hereunder any such notes in any case or
any class or classes o f cases i f he deems such action
to be in the p u b lic interest, and his action in any
such respect shall be final.
(b )
T erm s o f offer.— T h e Secretary o f the T reas
ury m ay at any time or fro m time to tim e su pple
ment or amend the terms o f this offerin g o f notes, or
o f any amendments or supplements thereto.
3 C op ies m a y be ob ta in ed fr o m a n y F e d e ra l R eserv e B a n k or
B ra n ch , o r th e B u rea u o f th e P u b lic D ebt, D iv is io n o f L oa n s and
C u rren cy B ra n ch , 536 S ou th C la rk S treet, C h ica go, 111. 60605.
JO SEPH W. BARR,
A ctin g S ecreta ry o f the T reasury.
UNITED STATES SAVINGS NOTES— REDEMPTION VALUES AND INVESTMENT YIELDS
Table shows: (1) redemption values, by denomination, during each successive half-year term o f holding after first vear 1
follow ing the date of issue; (2) the approxim ate investm ent yield on the purchase price from issue date to the beginning of
each half-year p e r io d 2; and (3) the approxim ate investm ent yield on the current redemption value from the beginning of
each half-year period - to m aturity. Yields are expressed in terms of rate percent per annum com pounded semiannually.
Maturity value
Issue price _______
Period after issue date
$25 .00
20 .25
$50 .00
40.50
$75 .00
60 .75
$100 .00
81 .00
Approximate investment yield
(2) On purchase
(3) On current
price from issue redemption value
date to begin
from beginning
(1) Redemption values during each half-year period after the
ning of each
of each half-year
first year (values increase on first day o f period shown) t
half-year period 2 period to ma
turity 2 and 3
1 to V/t years
. _
_
1% to 2 years _
2 to 2Yi years - _
2% to 3 years _
3 to 3}i years
3Yi to 4 years
4 to 4 ^ years _ _
MATURITY VALUE
(4}i years from issue date)
$21.
21.
22.
22.
23.
23.
24.
07
53
03
56
14
74
36
25.00
$42.
43.
44.
45.
46.
47.
48.
14
06
06
12
28
48
72
50.00
tpUO.
91i
Z
66. 09
#
Uo
75.00
$84.
86.
88.
90.
92.
y4.
y /.
28
12
12
24
56
yo
44
100.00
Percent
4.
4.
4.
4.
4.
4.
4.
01
13
26
37
50
60
67
Percent
4.74
1 Savings notes are not redeemable before 1 year from issue date.
2 Except the first half-year.
3 4.74 percent for entire period from issuance to maturity.
U. S. GOVERNMENT PRINTING O FFICE : 1967 O - 247-800
4.
5.
5.
5.
5.
5.
5.
95
04
12
20
22
24
25
REGULATIONS GOVERNING AGENCIES FOR THE ISSUE OF
UNITED STATES SAVINGS BONDS OF SERIES E AND
UNITED STATES SAVINGS NOTES
1967
Department Circular
Public Debt Series No. 4-67
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, February 24, 1967.
Fiscal Service
Bureau of the Public Debt
TA B LE OF CONTENTS
Sec.
317.0
317.1
317.2
Sec.
PURPOSE.
DEFINITIONS OF WORDS AND TERMS AS
USED IN THIS CIRCULAR.
PROCEDURE FOR QUALIFYING AS AN IS
SUING AGENT.
(a) GENERAL.
(b) BASIS ON WHICH STOCK MAY BE OB
TAINED.
(1) TRUST AGREEMENT.
(2) PLEDGE AGREEMENT.
(i) PLEDGE OF COLLATERAL.
(ii) SECURITY.
(3) PREPAYMENT OF STOCK.
(c) ISSUING AGENTS OF BONDS QUALIFIED
UNDER TREASURY DEPARTMENT CIRCU
LAR NO. 657, AS AMENDED.
317.3 CERTIFICATE OF QUALIFICATION.
317.4 MODIFICATION OR TERMINATION OF QUAL
IFICATION.
(a) BY THE UNITED STATES.
(b) BY ISSUING AGENTS.
317.5 ISSUANCE OF BONDS AND NOTES.
317.6 ACCOUNTING.
317.7 FISCAL AGENTS.
317.8 RESERVATIONS.
D epartm ent C ircular N o. 657, dated A p r il 15, 1941, as am ended (31 C F R P a rt 3 17 ), is hereby
rescinded and replaced by D epartm ent C ircular, P u b lic D ebt Series No. 4—67, as fo llo w s :
A U T H O R I T Y : Secs. 317.0 through 317.8 issued under Sections 18, 2 0 and 22 o f the Second
L iberty B o n d A ct, as am ended (40 Stat. 1309, 48 Stat. 383 and 49 Stat. 2 1 , all as am ended; 31 U .S .C .
753, 754b and 757c).
Sec. 317.0. P u rp o se.— These regulations p re
scribe the procedures whereby (a ) banks, trust
com panies and savings institutions chartered by or
incorporated under the laws o f the U nited States
or those o f any State or T erritory o f the U nited
States or the C om m onw ealth o f Puerto R ico, (b )
agencies o f the U nited States and o f State and
local governm ents, (c ) em ployers op erating p a y
roll savings plans fo r the purchase o f U nited
States Savings B on ds, and (d ) other entities, may
qu a lify, and thereafter act, as agents fo r the sale
and issue o f U nited States Savings B onds o f Series
E and U nited States Savings Notes, issued p u r
suant to Treasury D epartm ent C irculars No. 653,
current revision, and P u b lic Debt Series No. 3-67
(31 C F R Parts 316 and 3 42 ), respectively.
Sec. 317.1. D efinitions o f w ords and term s as
used in this circular.— (a ) “ B on ds” refer to
United States Savings B on ds o f Series E.
(b )
“ Federal Reserve B a n k ” refers to the F e d
eral Reserve B ank o f the Federal Reserve district
in w hich the issuing agent, or the applicant o rg a
nization, is located, and includes Branches to the
extent utilized by the parent Bank. In the con
text o f these regulations, the reference to the F e d
1
eral R eserve B ank is in its capacity as fiscal agent
o f the U nited States.
(c ) “ Issuing agent” refers to an organization
w hich has been issued a certificate o f qualification
to sell and issue bonds and notes, or bonds only.
(d ) “ N otes” refers to U nited States Savings
Notes.
(e ) “ O rga n ization ” refers to any entity de
scribed in Sec. 317.0 as eligible to q u a lify as an
issuing agent o f the bonds and notes, or bonds only.
Sec. 317.2. P roced u re f o r q u a lifyin g as an
issuing a gen t.— (a ) G eneral.— A n organization de
sirin g to q u a lify as an issuing agent shall obtain
from and file w ith the Federal Reserve B ank an
appropriate application-agreem ent form . I f the
organization desires to q u a lify as an issuing agent
fo r bonds only, it shall, before submission, amend
the form furnished so that it refers on ly to bonds.
T h rou gh use o f the appropriate form , the person
authorized to act on behalf o f the organization
w ill certify that it is authorized by its gov ern in g
body, or other body authorized to act in the prem
ises, to app ly fo r and act as an issuing agent under
the terms o f the agreement, these regulations and
the circulars offerin g the bonds and notes fo r sale,
(c )
Issu ing agents o f bonds qualified under
T r e a s u r y D epa rtm en t C ircular N o. 657, as
am ended.— Issuing agents o f bonds qualified p rior
to the rescission o f Treasury D epartm ent C ircu lar
N o. 657, as amended, w ho do n ot desire to q u a lify
as issuing agents fo r the notes, m ay continue to act
w ithout requalification and b y so d o in g shall be
subject to the terms and conditions o f this circu la r
and the agreements under w h ich they qualified
in the same m anner and to the same extent as
th ough they had requalified hereunder.
Sec. 317.3. C ertificate o f qualification.— U n til
such time as a certificate o f qualification is issued
by the F ederal Reserve B ank, an .organization
shall n ot make any effort to o r p erform any acts
as an issuing agent, or advertise in any manner
that it is authorized to p erform such acts, or that
it has applied fo r qualification as an issuing agent.
U p on approval o f the application-agreem ent, the
Federal Reserve B ank w ill issue a certificate o f
qualification to the organization. T h e org an iza
tion w ill be notified i f the application-agreem ent
is not approved, o r after qualification, at any such
tim e as the certificate o f qualification is m odified
or terminated.
Sec. 317.4. M odification or term ination o f
qualification.— (a ) B y the U nited S ta tes.— T h e
Secretary o f the T reasury, or the Federal Reserve
B ank, m ay m o d ify or term inate the, qualification
o f an issuing agent at any tim e, upon notice to
that effect, and m ay require the im m ediate sur
render o f any part or all o f the stocks o f bonds
and notes held b y the agent fo r sale and not
th eretofore issued or sold, and any part or all o f
the proceeds due on account o f the stocks issued
or sold. T h e Secretary o f the Treasury, or the
Federal Reserve B ank, m ay also regulate the
am ount o f stocks o f bonds and notes w hich may
be obtained, in clu d in g tem porary increases over
the am ount o f stocks obtainable by the issuing
agent regardless o f the basis o f qualification, and
under Section 317.2, paragraph ( b ) , subpara
graphs (2 ) or ( 3 ) , w ithout requiring a pledge o f
additional collateral or additional prepaym ent fo r
stocks.
(b )
B y issuing a gen t.— A n issuing agent w hich
has fu lly com plied w ith the term s o f its agreement
and the regulations and instructions issued p u r
suant thereto may at any tim e request the Federal
Reserve B ank to m o d ify or term inate its qualifi
cation.
Sec. 317.5 Issuance o f bonds and notes.— Issu
ing agents must com ply with all regulations and
instructions issued by the Treasury D epartm ent or
the Federal R eserve B ank concerning the sale, in
scription, dating, validation and issue o f the bonds
and notes, and disposition o f the registration
stubs. N o issuing agent shall have authority to
sell bonds and notes other than as p rovid ed in the
offerin g circulars and the gov ern in g regulations.*
or, i f appropriate, bonds on ly, and that applicable
Federal or State law perm its or does n ot proh ibit
the organization from so acting. T h e Secretary
o f the Treasury, either directly or throu gh the F e d
eral Reserve B ank, may deny qualification to, or
sp ecify the basis o f qualification o f, any organ iza
tion.
(b ) B ases on w h ich stock m ay be obtained.
( 1 ) T ru st a greem ent.— A n organization may
obtain stocks on the basis o f an application-trust
agreement. U nder the terms o f such agreement,
the stocks o f bonds and notes obtained, together
w ith the proceeds o f sale therefrom , are at all times
the p rop erty o f the U nited States, fo r w hich the
organization shall be fu lly accountable.
( 2 ) P led g e agreem ent.
(i) P led g e o f collateral.— A n organization may
obtain stock on the basis o f a pledge o f collateral.
U nder the term s o f the a pp lication -p led ge agree
ment, collateral is pledged at the cost p rice o f the
m axim um am ount o f stocks o f bonds and notes,
and the proceeds o f sales therefrom , fo r w hich the
organization m ay be accountable at any one time.
( ii) S ecu rity .— Security w hich m ay be required
under the app lication-p led ge agreement shall co n
sist o f either o r both o f the fo llo w in g :
( A ) T h e am ount o f insurance directly
available to the U nited States coverin g the
proceeds o f the issuing agent’s sales o f bonds
and notes b y reason o f the agent’s coverage
b y an acceptable Federal or State insurance
corporation or f u n d ; fo r exam ple, in the case
o f a mem ber bank o f the Federal D eposit In
surance C orp oration, the am ount o f security
w ould be $15,000 and w ould cover a p p ro x i
m ately $ 2 0 ,0 0 0 (fa ce am ount) o f stocks o f
bonds and notes.
( B ) U nited States Treasury bonds or other
direct obligation s o f the U nited States, or o b
ligations un con dition ally guaranteed as to
both principal and interest b y the U nited
States, in negotiable form , w hich w ill be ac
cepted at face v a lu e ; and U nited States S a v
ings B on ds o f any series registered in the
name o f the issuing agent, w hich w ill be ac
cepted at issue price. Savings bonds must be
accom panied b y an irrevocable p ow er o f at
torney, executed on b eh a lf o f the issuing
agent, authorizin g the Secretary o f the T reas
u ry to request paym ent o f the bonds. A ll o b
ligations deposited pursuant hereto must be
delivered to the Federal Reserve B ank before
stocks o f bonds and notes m ay be obtained.
(3 ) P rep a ym en t o f stock .— A n organization
whose prim ary fun ction as an issuing agent will
relate to the issue ,of bonds and notes bought under
its payroll savings plan, and w hich is not qualified
under subparagraph ( 1 ) or ( 2 ) o f this paragraph,
is required to execute an application-prepaym ent
agreement, under the terms o f w hich all stocks
o f bonds and notes obtained fo r its issue function
are p repaid at cost price.
♦Treasury Department Circulars No. 530, current revision (31
CFR Part 315), No. 653, current revision (31 CFR Part 316)
and Public Debt Series No. 3-67 (31 CFR Part 342).
2
Sec. 317.6. A cco u n tin g .— IsShing agents must
com p ly w ith all regulations and instructions issued
by the Treasury D epartm ent, govern in g the ac
counting fo r stocks o f bonds and notes received as
issuing agent and the proceeds o f sales thereof.
E ach issuing agent, other than an agent qualified
on the basis o f prepaym ent o f stock, shall open
and maintain, or continue to m aintain, fo r the
Federal Reserve B ank, a separate deposit account
fo r the proceeds o f all sales o f bonds and notes to
be known, as appropriate, as the “ Savings B ond
and N ote A ccou n t,” or the “ Series E bond ac
count.” A n issuing agent w hich is also a deposi
tary pursuant to Treasury D epartm ent C ircular
No. 92, current revision (31 C F R P a rt 2 03), may
make paym ent by credit fo r the proceeds o f its
sales o f bonds and notes up to any amount fo r
w hich it shall be qualified under that circu lar in
excess o f existing deposits when so authorized by
the Federal Reserve Bank.
Sec. 317.7. F isca l agen ts.— T h e Federal R e
serve Banks are authorized to p erform such duties
and prepare and issue such form s and instructions
as m ay be necessary to fu lfill the purposes and
requirements o f these regulations.
Sec. 317.8. R eserva tion s.— T h e Secretary o f the
Treasury m ay at any tim e or from time to time,
revise, supplement, amend, or w ithdraw , in whole
or in part, the provisions o f these regulations, or
o f any revisions, supplements, or amendments
thereto.
JO H N K. C A RLO C K ,
Fiscal Assistant Secretary.
3
U. S. GOVERNMENT PRINTING OFFICE : 1967 O - 248-080
Form PD 3827
TREASURY DEPARTMENT
Bureau of the P ublic Debt
ISSUING A G EN T - A P P L IC A T IO N - T R U S T A G R E E M E N T
(UNITED S T A T ES SAVINGS BONDS, SERIES E - UNITED S T A T E S SAVINGS NOTES)
T o : F ed era l R eserv e Bank or Branch at
A s F is c a l A gent o f the United S ta tes.
The u n d e r sig n e d ,------------------------------------------------------ (Name of o r g ^ w --------------------;
hereby makes a p p lica tio n to q ua lify as an issu in g agent o f (1) United States Savings B on d s, S eries E,
and (2) United States Savin gs N o te s, without p led ge of c o lla te r a l se cu rity , and c e r t ifie s that it is not
prohibited under a p p lica b le F ed era l or State law from s o a ctin g .
In co n sid e ra tio n of su ch q u a lific a tio n , the undersigned hereby a grees as fo llo w s :
(a) T o be bound by and to com ply with the p rov isio n s o f Department C ircu lar, P u b lic D ebt Series
N o. 4 -6 7 , the regu lation s governing a g e n c ie s for the issu e o f United States S avin gs B on d s,
Series E, and United States Savings N o te s , hereinafter referred to as bonds and n o te s , as w ell
as Department C ircu lars N o. 653 , and P u b lic Debt S eries N o. 3-67, the re s p e c tiv e offerin g
circu la rs for said s e c u r itie s , includin g all r e v is io n s , supplem ents and amendments th ereof,
and instruction s issu e d thereunder by the T reasury Department and the a b ove F ed era l R e serv e
Bank, as f is c a l agent of the United S ta tes, relating to the c u s to d y , sa le and iss u e o f said bonds
and n otes ;
(b) T o r e c e iv e and maintain its s to ck o f bonds h eretofore re ce iv e d under p reviou s q u a lific a tio n as
issu in g a gen t, a n d /o r bonds and n otes hereafter obtained under this q u a lific a tio n , as w ell as
to hold a ll p ro ce e d s d erived from their s a le , in trust as property of the U nited States of A m erica,
and,
(c ) T o assum e re s p o n s ib ility for a ll a cts o f its o ffic e r s and e m p loy ees in the c u s to d y , s a le and
iss u e o f said bonds and n o te s .
IN WITNESS W HEREOF, the undersigned has ca u s e d this A pp lication -A greem en t to be e x e cu te d by
the o ffic e r named b e lo w , thereunto duly authorized by a re so lu tio n of its govern in g board or com m ittee
adopted on t h e _ -----------day o f ----------------------------------- -- — , 1 9 ----------- •
S ign ed , s e a le d and dated th is ________ day o f ----------------- ------------------------- » 19-
(Name of organization)
( SEA L)
A dd ress
----------
(C ity or tow n)
By
(Number and street)
(State)
(Signature of o ffice r )
(Z IP c o d e )
FEDERAL RESERVE BANK
OF N E W YORK
Fiscal Agent of the United States
SAVINGS BOND DEPARTMENT
M a r c h 21, 1967
QUESTIONNAIRE
1. Do you issue United States Savings Bonds, Series E, on “ the bond-amonth plan” ?
Y e s.........
N o .........
2. Do you issue United States Savings Bonds, Series E, under “ payroll
savings plans” ?
Y e s .........
N o .........
(Signature)
(Name o f institution)
(Address)
(Issuing agent’s account number)
@FedFRASER