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FEDERAL RESERVE BANK OF NEW YORK F is c a l Agent of the United States 3 I C ir cu la r N o. 6787 |__A u g u st 2 0 , 197 Amendments to Treasury Department Circulars on Maturity Extensions of Series E and H Savings Bonds and Freedom Shares T o Is s u in g in the a n d P a y in g S e c o n d A g e n ts F e d e r a l fo r R e s e r v e S a vin g s B o n d s D is tr ict: Enclosed are copies of the following Treasury documents, all dated May 20, 1971, which reflect the extensions of maturity for Series E and H Savings Bonds and Freedom Shares that were announced in our Circular No. 6727, dated May 4, 1971: Second Amendment to Treasury Department Circular No. 653, Eighth Revision, ’’ Offering of United States Savings Bonds, Series E.’’ Second Amendment to Treasury Department Circular No. 905, Fifth Revision, ’’Offering of United States Savings Bonds, Series H." First Amendment to Treasury Department Circular No. 3-67, Public Debt Series, ’’ Offering of United States Savings Notes.’’ Additional copies of the enclosures will be furnished upon request. A lfre d H ayes, P re sid e n t. OFFERING OF UNITED STATES SAVINGS BONDS, SERIES E 1971 S e co n d Am endm ent to D epartm ent C ircu la r N o. 653, E ighth R e v is io n , d a ted D e c e m b e r 12, 1969 TR EASURY DEPARTM ENT Washington, May 20, 1971 F i s c a l S e r v ic e B ureau o f the P u b lic D ebt Department Circular No. 653, Eighth Revision, dated December 12, 1969, and the tables incorporated therein, as amended (31 CFR Part 316), are further amended by revision of paragraph (a), renumbering of subparagraph (2) of paragraph (b) as (3), and insertion of a new subparagraph, numbered (2), in § 316.8; the revision of subparagraph (1), paragraph (b), of §316.9; and addition of Tables 2-A and 3-A as follows: § 3 1 6 .8 Extended terms and improved yields for outstanding bonds. (a) Extend ed m aturity periods— (1) G eneral. The terms “extended maturity period,” “second extended maturity period,” and “ third extended maturity period,” when used herein, refer to the intervals after the original maturity dates during which owners may retain their bonds and continue to earn interest on the maturity values or the extended maturity values.8 No special action is re quired of owners desiring to take advan tage of any extensions heretofore or herein granted. (2) Bonds w ith issue dates M ay 1,1941, throu gh April 1, 1952. Owners of Series E bonds with issue dates of May 1, 1941, through April 1, 1952, may retain their bonds for a third and final extended maturity period of 10 years. (3) Bonds w ith issue dates M ay 1,1952, th rou gh January 1, 1957. Owners of Series E bonds with issue dates of May 1, 1952, through January 1, 1957, may re tain their bonds for a second extended maturity period of 10 years. * T h e r e d e m p t io n v a lu e o f a n y b o n d a t t h e m a t u r it y d a t e , t h e e x t e n d e d m a t u r it y d a te o r t h e s e c o n d e x t e n d e d m a t u r it y d a te is t h e b a s e , in e a c h in s ta n c e , u p o n w h ic h in t e r e s t w ill a c c r u e d u r in g t h e p e r io d fo llo w in g . (4) Bonds w ith issue dates o f F ebru ary 1, 1957, or th erea fter. Owners of Series E bonds with issue dates of Febru ary 1, 1957, or thereafter, may retain their bonds for an extended maturity period of 10 years. (b) Im proved yields. * * * (2) Bonds enterin g third extended m aturity period. The investment yield (interest) for the third extended matu rity period for all outstanding bonds entering this period will be at the rate prevailing for Series E bonds being issued at the time the extension begins. Tables showing the yields and the redemption values will be published prior to or as the bonds enter the extension. The yields shown in Tables 2-A and 3-A hereof apply to bonds with issue dates May 1, 1941, and June 1, 1941. Table 3-A will also apply to bonds with issue dates of July 1, 1941, through November 1, 1941, inclusive, unless tables showing different yields are published prior to or as these bonds enter the third extended maturity period. * * * * * § 3 1 6 .9 * Taxation. * * * * (b) Federal incom e tax on bonds. * * * (1) Defer reporting of the increase to the year of final maturity, actual re demption, or other disposition, whichever is earlier; or * * * * * The foregoing revisions and amend ments, adopted on April 30, 1971, were effected under authority of section 22 of the Second Liberty Bond Act, as amended (49 Stat. 21, as amended; 31 U.S.C. 757c) and 5 U.S.C. 301. Notice and public pro cedures thereon are unnecessary as pub lic property and contracts are involved. J oh n K . C arlock, Fiscal Assistant Secretary. TABLE 2—A BONDS BEARING ISSUE DATE M AY 1, 1941 Issue price____ Denomination. $18.75 25.00 $375.00 500.00 $75.00 $37.50 50.00 100.00 $750.00 1,000,00 (1) Redemption values during each half-year period (values increase on first day of period shown) Period after second extended maturity (beginning 30 years after issue date) First )4 year.............................................. . . . . i (5/1/71) H to 1 year................ ................................ ........(11/1/71) 1 to 1)4 years............................. ............... ......... - (5/1/72) 1)4 to 2 years_________________ ____ _ ......... (11/1/72) 2 to 2)4 years........................ ................ . --------- (5/1/73) 2)4 to 3 years......................... ................... _____ (11/1/73) 3 to 3y2 years.............................................. ........... (5/1/74) 3)4 to 4 y e a rs _______ ______ ___ ______ ......... (11/1/74) 4 to 4)4 years--------------------------- ------------ --------- (5/1/75) 4)4 to 5 years.............................. ............... _____ (11/1/75) 5 to 5)4 years.............................................. --------- (5/1/76) b)4 to 6 years..................................... ........ --------(11/1/76) 6 to 6)4 years.............................................. ........-(5 /1 /7 7 ) 6)4 to 7 years............................................. ......... (11/1/77) 7 to 7)4 years......................... ............. ...... ........... (5/1/78) 7)4 to 8 years....... ................. ................ ......... (11/1/78) 8 to 8)4 years............................................. ........... (5/1/79) 8M to 9 years.............................................. -------- (11/1/79) 9 to 9)4 years............................................. ........... (5/1/80) 9)4 to 10 years............................................. --------(11/1/80) THIRD EXTENDED MATURITY VALUE (40 years from issue date)........................ ........... (5/1/81) T H IR D E X T E N D E D M A T U R IT Y P E R IO D $50. 28 51.66 53. 08 54.54 56.04 57.58 59.17 60.80 62. 47 64. 18 65. 95 67. 76 69.63 71.54 73. 51 75.53 77.61 79.74 81.93 84.19 86.50 $100. 56 103. 32 106. 16 109.08 112.08 115. 16 118. 34 121. 60 124. 94 128. 36 131. 90 135. 52 139. 26 143.08 147.02 151.06 155. 22 159.48 163.86 168.38 Approximate investment yield (annual percentage rate) (2) From beginning of third extended maturity period to beginning of each half-year period $201.12 206. 64 212. 32 218.16 224.16 230. 32 236.68 243.20 249.88 256.72 263.80 271.04 278. 52 286.16 294.04 302. 12 310.44 318. 96 327. 72 336. 76 $1,005. 60 1,033. 20 1,061.60 1,090. 80 1,120. 80 1,151. 60 1,183. 40 1, 216. 00 1, 249. 40 1, 283. 60 1,319.00 1, 355. 20 1, 392. 60 1,430.80 1,470. 20 1, 510. 60 1, 552. 20 1,594. 80 1,638. 60 1,683.80 $2, 011. 20 2,066. 40 2,123. 20 2,181. 60 2, 241. 60 2, 303. 20 2,366. 80 2, 432. 00 2, 498. 80 2, 567. 20 2,638.00 2,710. 40 2, 785. 20 2,861.60 2, 940.40 3,021. 20 3,104. 40 3,189. 60 3, 277. 20 3,367. 60 Percent 0.00 5. 49 5.49 5.50 5.50 5. 50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 346.00 1,730.00 3,460.00 5.50 173.00 1 Month, day, and year on which issues of May 1,1941, enter each period. 2 Based on third extended maturity value in effect on the beginning date of the half-year period. (3) From begin ning of each half-year period to beginning of next half-year period (4) From begin ning of each half-year period to third extended maturity 3 Percent 5. 50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 6.49 Percent 5.49 5.50 5.50 5.50 5.50 5.52 5.51 5. 49 5.47 5. 52 5. 49 5. 52 5. 49 5. 51 5.50 5. 51 5.49 5. 49 5.52 5.49 3 Yield on purchase price from issue date to third extended maturity date is 3.S6 percent. TABLE 3-A BONDS BEARING ISSUE DATE JUNE 1, 19411 Issue price___ Denomination. $18.75 25.00 $37.50 50.00 $75.00 100.00 $375.00 500.00 (1) Redemption values during each half-year period (values increase on first day of period shown) Period after second extended maturity (beginning 30 years after issue date) First )4 year....................................................... 3 (6/1/71) V2 to 1 year............................................................ (12/1/71) 1 to 1)4 years...........................................................(6/1/72) to 2 years.........................................................(12/1/72) 2 to 2)4 years...........................................................(6/1/73) 2J^ to 3 years.........................................................(12/1/73) 3 to 3)4 years...........................................................(6/1/74) 3)4 to 4 years.........................................................(12/1/74) 4 to 4)4 years...........................................................(6/1/75) 4yi to 5 years......................................................... (12/1/75) 5 to years...........................................................(6/1/76) 5M to 6 years.........................................................(12/1/76) 6 to 6)4 years...........................................................(6/1/77) 6J^ to 7 years.........................................................(12/1/77) 7 to 7)4 years...........................................................(6/1/78) 7)4 to 8 years.........................................................(12/1/78) 8 to 8)4 years........................................................(6/1/79) 8 to 9 years.........................................................(12/1/79) 9 to 9)4 years...................................................... (6/1/80) 9)4 to 10 years....................................................... (12/1/80) THIRD EXTENDED MATURITY VALUE (40 years from issue date)....... .......... ...............6-1-81 T H IR D E X T E N D E D M A T U R IT Y P E R IO D $50.80 52.20 53.63 55. 11 56.62 58.18 59.78 61.42 63.11 64.85 66.63 68.46 70.35 72.28 74.27 76. 31 78.41 80.57 82. 78 85.06 $101. 60 104.40 107. 26 110.22 113.24 116. 36 119. 56 122.84 126.22 129.70 133.26 136. 92 140. 70 144. 56 148. 54 152.62 156. 82 161.14 165.56 170.12 $203. 20 208.80 214. 52 220.44 226.48 232.72 239.12 245.68 252.44 259.40 266.52 273.84 281.40 289.12 297.08 305.24 313.64 322. 28 331.12 340.24 $1,016.00 1,044. 00 1,072. 60 1,102. 20 1,132. 40 1,163. 60 1,195. 60 1,228. 40 1,262. 20 1,297. 00 1; 332. 60 1,369. 20 1,407.00 1,445. 60 1, 485. 40 1,526. 20 1, 568. 20 1,611.40 1.655. 60 1,701. 20 $2,032.00 2,088.00 2,145. 20 2,204. 40 2,264.80 2,327. 20 2,391. 20 2, 456. 80 2,524. 40 2,594. 00 2,665. 20 2,738.40 2, 814. 00 2,891.20 2,970. 80 3,052. 40 3,136. 40 3,222. 80 3,311. 20 3,402. 40 87.40 174.80 349. 60 1,748.00 3,496.00 1 Yields also apply to bonds with issue dates July 1 through November 1, 1941, unless tables showing different yields are published. (See Sec. 316.8(b)(2).) 2 Month, day, and year on which issues of June 1,1941, enter each period. For sub sequent issue months add the appropriate number of months. Approximate investment yield (annual percentage rate) $750.00 1 ,000,00 (2) From beginning of third extended maturity period to beginning of each half-year period Percent 0.00 5.51 5. 50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5. 50 5. 50 5.50 5.50 5.50 5. 50 (3) From begin ning of each half-year period to beginning of next half-year period (4) From begin ning of each half-year period to third extended maturity 3 Percent 5. 51 5.48 5. 52 5.48 5. 51 5.50 5.49 5.50 5.51 5.49 5.49 5.52 5.49 5.51 5.49 5.50 5.51 5.49 5. 51 5.50 Percent 5.50 5.50 5.50 6.50 5.50 5.50 5.50 5.50 5. 50 5.50 5.50 5. 50 5.50 5.50 5.50 5.50 5.50 5.50 5.51 5.50 ‘ 5.50 3 Based on third extended maturity value in effect on the beginning date of the half-year period. 4 Yield on purchase price from issue date to third extended maturity date is 3.89 percent. G P O 9 13.220 OFFERING OF UNITED STATES SAVINGS BONDS S E R IE S H 1071 S e c o n d Amendment to Department C ir cu l a r No. 905, Fif th R e v i s i o n , d ate d D e c e m b e r 12, 1969 TREASURY D EPAR TM EN T Washington, May 2 0 , 1971 F is c a l Service B ureau o f the P u b l i c Debt S ection 332.8, paragraph (a ), and § 332.10 o f Department Circular No. 905, F ifth R e v isio n , dated Decem ber 12, 1969, as amended (31 C FR Part 332), have been amended and revised to read as fo llo w s : § 332.8 Extended terms and improved yields for outstanding bonds. (a) Extended maturity periods — (1 ) General. The terms “ extended maturity p eriod ” and “ secon d extended maturity p e rio d ,” when used herein, refer to the intervals after the original maturity dates dur ing which ow ners may retain their bonds and continue to earn interest thereon. No s p e c ia l action is re quired o f owners desirin g to take advantage o f any ex te n sio n s heretofore or herein granted. (2) Bonds with issue dates June 1 , 1952 , through January 1 , 1957 . Owners o f S eries H bonds with issu e date o f June 1, 1952, through January 1, 1957, may retain their bonds for a se co n d extended maturi ty period o f 10 years. (3) Bonds with issue dates February 1, 1957 , through November 1 , 1965 . Owners o f Series H bonds with iss u e dates o f February 1, 1957, through November 1, 1965, may retain their bonds for an extended maturity period o f 10 years. § 332.10 Redemption or payment. A Series H bond may be redeemed at par at any time after 6 months from the is s u e date. T he bond must be presented and surrendered, with a duly execu ted request for payment, to (a ) a F ederal R eserve Bank or Branch, (b) the O ffic e o f the Treasurer o f the United States, S ecurities D iv isio n , Washington, D.C. 20220, or (c ) the Bureau o f the P u b lic Debt, D iv ision o f Loans and Currency Branch, 536 South Clark Street, C h ica go, IL 60605. A bond received by an agent during the calendar month preced in g an interest payment date may not be redeemed until that date. JOHN K . C A R L O C K Fiscal Assistant Secretary o f the Treasury. GP 0 9 13.218 OFFERING OF UNITED STATES SAVINGS NOTES I 071 Fi rs t Amendment to Department C i r c u l a r P u b l i c De b t S e r i e s No. 3 -6 7 , R e v i s e d , dated Jun e 19, 1968 TREASURY DEPARTMENT Washington, May 20, 1971 F isc a l Service Bureau o f the P u b l i c Debt Department C ircular, P u b lic Debt S eries No. 3-67, R e v ise d , dated June 19, 1968 (31 C FR Part 342), has been amended by insertion o f § 342.2a and amendment and revision o f paragraph (b ), subparagraph (1), o f se ction 3 4 2 .5 , as fo llo w s : § 342.2a Extension. Owners who wish to continue their investm ent beyond maturity may retain their sa v in g s n otes for a 10-year period after the maturity date and earn interest upon the maturity value o f their n otes. The in vest ment yield (in terest) w ill be the rate prevailin g for Series E bonds bein g issu ed at the time the extension b egin s. T a b le s show ing the yield and the redemption valu es w ill be published prior to or as the n otes enter their exten sion . Interest under th ese p ro v isio n s w ill accru e beginning six months after maturity and at the beginning o f each s u c c e s s iv e half-year period thereafter. § 342.5 Taxation. (b) Federal income tax on notes. * * * (1) D efer rep ortin gof the in crea se to th ey ea r o f final maturity, actual redemption, or other d isp osition , w hichever is earlier; or JOHN K . C A R L O C K Fiscal Assistant. Secretary o f the Treasury. TERMINATION OF SALE The sale of United States Savings Notes was terminated at the close of business June 30,1970. gp o 9 I 3 . 2 19
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