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Provided, however, That the requests for payment witnessed and certified to by these officials shall be supported by the fingerprints of the veterans in the place provided therefor on the back of the bonds, and that the bonds be then forwarded to the Treasury of the Philippine Islands or to the Treasurer of the United States for payment. **

313.13 Officer may not certify own request. No person authorjzed to certify requests for payment may certify a request signed by himself, either in his own right or in any representative capacity.**

313.14 Identification; responsibility of certifying officers. Certifying officers will be held responsible for positive identification of the person requesting payment as the person whose name appears on the face of the bond, or the person recognized by the Secretary of the Treasury as entitled to payment under this part, and, if necessary, shall require witnesses to identify that person. Provision for signatures and addresses of witnesses, and for fingerprints in exceptional cases, is made on the back of the bond.**

313.15 Requests for payment by inmates of institutions. Special arrangements for execution of a request for payment may be provided for inmates of an institution, information concerning which may be obtained from the Treasury Department by the head of the institution.**

313.16 Signature requirements. All signatures must be in ink or indelible pencil. Signatures to a request for payment made by mark (X) must be witnessed by at least one person in addition to the certifying officer.**

313.17 Request for payment by agents. No request for payment signed by an agent or person acting under a power of attorney, in behalf of the registered owner, the representative of his estate, or such person or persons as the Secretary of the Treasury may determine to be lawfully entitled thereto, will be recognized by the Treasury Department. In no case will any payment be made other than to the registered owner, or the representative of his estate, or to such person as the Secretary of the Treasury may determine to be lawfully entitled thereto.*+

313.18 Documents required supporting request. In cases where documents are required to support a request for payment and two or more bonds are presented at the same time, only one set of documents will be required.**

313.19 Regulations applying to checks due veteran. The regulations in this part shall also apply to the delivery and payment of (a) checks issued in payment of adjusted service bonds, and (b) checks issued for the difference between the amount certified by the Administrator of Veterans Affairs as due the veteran and the face amount of the bonds issued to him; Provided, however, That when necessary in order to effect an equitable division of the amount due, checks for such difference may be divided in the necessary proportions between adults and minors, or between minors, as persons lawfully entitled thereto.*+ [As amended Dec. 30, 1936, 2 Ê.R. 8]

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**For statutory and source citations, see note to 8 313.1.

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313.20 Transmission of bonds by owner at owner's risk. Any transmission of a bond by the owner to the Treasury of the Philippine Islands, or any transmission of a bond by the owner, either directly or through a banking institution acting as agent for the owner, to a Federal Reserve bank or to the Treasury Department will be at the risk and expense of the owner. The use of registered mail is suggested.** [As amended Dec. 30, 1936, 2 F.R. 8]

313.21 Loss, theft, or destruction of bonds; notification. In case of the loss, theft, or destruction of a bond, the Treasury Department, Division of Loans and Currency, Washington, D. C., should be notified immediately of the serial number of the bond and the name, address, and "A" number of the registered owner. Upon receipt of such notice full information as to the requirements for issuance of a duplicate will be furnished. The Treasury Department should likewise be notified of the recovery of any bond previously reported to be lost, stolen, or destroyed. In the Philippine Islands notice of the loss, theft, or destruction of a bond, or the recovery of a bond previously reported to be lost, stolen, or destroyed, should be given to the Treasury of the Philippine Islands.*+

313.22 Relief on account of loss, theft, or destruction of bonds. Except in cases of loss, theft, or destruction of a bond while being transmitted between post offices or between a post office and the Treasury Department, or fiscal agent thereof, relief will be granted only in accordance with the provisions of section 8 of the Government Losses in Shipment Act (50 Stat. 481; 31 U.S.C., Sup., 738a); applications should be made on Form P. D. 1053 and will be governed in general by the regulations contained in Part 306.24 **

313.23 Loss by post offices. In the case of a bond lost, stolen, or destroyed while being transmitted between post offices or between a post office and the Treasury Department, or fiscal agent thereof, a duplicate may be issued without requiring a bond of indemnity, as provided in section 4 of the Adjusted Compensation Payment Act, 1936 (49 Stat. 1101; 38 U.S.C., Sup., 686c), as amended. Applications should be made on Form P. D. 1064, but no duplicate will be issued until evidence has been received from the Post Office Department establishing the fact of loss, theft, or destruction. The Secretary of the Treasury reserves the right to require a bond of indemnity in any such case, if he deems it necessary for the protection of the Government.** 24

313.24 Exemption from taxation. In accordance with applicable law, the bonds are exempt, both as to principal and interest from all taxation, except estate, inheritance, or gift taxes, now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority.*+

CBOSS REFERENCES: For internal revenue regulations relating to estate and gift taxes, see 26 CFR Parts 80, 85. For estates and trusts under the income tax provisions of internal revenue regulations, see 26 CFR 3.161–1 to 3.169-2.

24

14 In view of section 8 of the Government Losses in Shipment Act, supra, no distinction now exists between the nature of the relief under $8 313.22, 313.23.

**For statutory and source citations, see note to 8 313.1. *88 314.1 to 314.17, inclusive, issued under the authority contained in sec. 22 (a), Second Liberty Bond Act, as added by sec. 6, 49 Stat. 21; 31 U.S.C., Sup., 757c.

313.25 Reservation of right to amend. The Secretary of the Treasury reserves the right at any time, or from time to time, to revoke or amend the regulations in this part, or to prescribe and issue supplemental or amendatory rules and regulations governing adjusted service bonds.**

PART 314-OFFERING OF UNITED STATES SAVINGS

BONDS 24a

Sec.

Sec.
Series C

314.10 Safekeeping by Federal Reserve 314.1 Offer; general.

banks. 314.2 Termination of sale of Series 314.11 Payment. B bonds.

314.12 Authorized reissues. 314.3 Description of bonds offered. 314.13 Series designations; right to 314.4 Bonds not transferable; further

terminate sale. description.

314.14 Regulations; may require notice 314.5 Exemption from taxation.

of presentation. 314.6 Purchase provisions.

314.15 Reservation of right to refuse 314.7 Limitation on holdings.

issue and terminate offer. 314.8 Authorized forms of registra- 314.16 Postmasters and Federal Retion.

serve banks fiscal agents. 314.9 Delivery by postmasters.

314.17 Reservation of right to amend.

CROSS REFERENCES

United States savings bonds: See Part 315.
Post Office Department regulations : See Postal Service, 39 CFR Chapter I.

SERIESC

314.1 Offer; general. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, approved September 24, 1917, as amended, offers for sale, to the people of the United States, through the Postal Service and other designated agencies (see 8 314.6), an issue of bonds of the United States, designated United States savings bonds, Series C, which will be issued on a discount basis, in amounts of $25 (maturity value) and multiples thereof, will mature in 10 years from the issue date, but will be redeemable before maturity at the option of owners. These bonds will be placed on sale beginning January 1, 1937, and will continue to be on sale until this offering is terminated by notice given by the Secretary of the Treasury to the Postmaster General and to other designated sales agencies.*+

fIn 88 314.1 to 314.17, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Department Circular 571, Secretary of the Treasury, Dec. 16, 1936, 1 F.R. 2165. Amendments are noted in brackets following sections affected.

244 For Offering Circulars of Series A and B, see Treasury Department Circulars 529 and 554 which may be obtained from the Public Debt Service, Treasury Department, Washington, D. O.

**For statutory and source citations, see note to 8 313.1.

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314.2 Termination of sale of Series B bonds. By notice heretofore given to the Postmaster General, the sale of United States savings bonds of Series B pursuant to Department Circular No. 554, dated December 16, 1935, will terminate on December 31, 1936. All applications for United States savings bonds received by mail subsequent to December 31, 1936, will be treated as applications for Series C bonds.**

314.3 Description of bonds offered. United States savings bonds, Series C, will be issued only in registered form, in denominations of $25, $50, $100, $500, and $1,000 (maturity values), at prices hereinafter set forth, and will bear the name and address of the owner and the date as of which issued, which on original issue shall be inscribed thereon by the authorized postmaster (or other agent) at the time of issue, and an imprint of the dating stamp (with current date) of the postmaster or other issuing agent in the circle in the lower left corner of the bond. All such savings bonds are to be dated as of the first day of the month in which the issue price is received, and will mature and be payable 10 years from such issue date. They may be redeemed prior to maturity (but not within 60 days after the issue date), at the owner's option, in accordance with the table of redemption values appearing at the end of Dept. Circ. 571. They may not be called for redemption by the Secretary of the Treasury prior to maturity. A table of redemption values for each bond appears on the face thereof. Partial redemption of savings bonds of denominations other than $25 (maturity value) will be permitted in accordance with § 315.7 (a). No interest will be paid on savings bonds, but the purchase price has been fixed so as to afford an investment yield of about 2.9 percent per annum compounded semiannually if the bonds are held to maturity. If the owner exercises his option to redeem a bond prior to maturity the yield will be less, varying with the respective redemption values.*+

314.4 Bonds not transferable; further description. The savings bonds will not be transferable, and will be payable only to the owner named thereon, except in case of death or disability of the owner or as a result of judicial proceedings, or as otherwise specifically provided in, and in any event only in accordance with, regulations prescribed from time to time by the Secretary of the Treasury (see Part 315). Savings bonds shall be valid only if inscribed with the owner's name and address, dated the first day of the month in which the issue price is received, and duly delivered by an authorized postmaster or other issuing agent; they will bear the facsimile signature of the Secretary of the Treasury, and the seal of the Treasury Department will be impressed thereon; if issued by a postmaster they will bear the post office dating (money order) stamp, and if issued by another agent they will bear the dating stamp of that agent.**

314.5 Exemption from taxation. The savings bonds shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, or gift taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excessprofits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds authorized by the Second Liberty Bond Act, approved September 24, 1917, as amended, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in (b). For the purposes of determining taxes and tax exemptions, the increment in value of savings bonds represented by the difference between the price paid and the redemption value received (whether at or before maturity) shall be considered as interest.**

**For statutory and source citations, see note to 8 314.1. **For statutory and source citations, see note to 8 314.1.

314.6 Purchase provisions. Savings bonds of Series C may be purchased for cash, at post offices of the first, second, and third classes, and at selected post offices of the fourth class, at any time while this offer is in effect; and, subject to regulations prescribed by the Board of Trustees of the Postal Savings System, the withdrawal of postal savings deposits will be permitted for the purpose of acquiring savings bonds. Savings bonds may also be purchased by mail upon application to the Treasurer of the United States, Washington, D. C., or to any Federal Reserve bank, accompanied by a remittance to cover the issue price. Any Federal credit union or Federal savings and loan association which has been designated and has qualified for employment as fiscal agent of the United States for the purpose may accept, from its members only, applications for United States savings bonds, accompanied by remittance of the purchase price, and will transmit such applications and remittances to the appropriate Federal Reserve bank for issue of the bonds. The issue prices of the various denominations of savings bonds of Series C follow:

Issue

(purchase) Denomination (maturity) value:

price $25.

$18.75 $50

37.50 $100.

75.00 $500

375.00 $1,000 --

750.00 **

CROSS REFERENCES: For regulations governing Federal savings and loan associations and Federal credit unions, as fiscal agents of the United States, in connection with the sale of United States savings bonds to their members, see Part 312. For regulations of the Post Office Department relating to the Postal Savings System, see 39 CFR Part 18.

314.7 Limitation on holdings. Section 22 of the Second Liberty Bond Act, as amended, provides that it shall not be lawful for any one person at any one time to hold savings bonds issued during any one calendar year in an aggregate amount exceeding $10,000 maturity value. In determining whether this limitation is exceeded at any time by any one person, there must be taken into account the aggregate present interest of that person at such time in the maturity value of all savings bonds issued during any one calendar year in

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