thority or agency) which is the owner or official custodian of public funds, other than trust funds, or in the full legal title of the public officer having custody of the funds. Examples:

State of Maine.

Town of Rye, N.Y. (Street Improvement Fund).

Maryland State Highway Commission.
Treasurer, City of Chicago.

(f) Treasurer of the United States as coowner or beneficiary. A person who desires to have a bond become the property of the United States upon his death may designate the Treasurer of the United States as coowner or beneficiary. Examples:

George T. Jones 123-45-6789 or the Treasurer of the United States of America.

George T. Jones 123-45-6789, P.O.D. the Treasurer of the United States of America. [Dept. Circ. 530, Ninth Rev., 29 F.R. 19034, Dec. 30, 1964, as amended at 31 F.R. 7680, May 28, 1966; 31 F.R. 8914, June 28, 1966] § 315.8 Unauthorized registration.

A savings bond inscribed in a form not substantially in agreement with one of those authorized by this subpart will not be considered as validly issued, except that once it is established that the bond can be reissued in a form of registration which is valid under these regulations it will be considered as having been validly issued from the date of original issue. Subpart C-Limitations on Holdings § 315.10 Annual limitations on hold

ings.

The amounts of savings bonds of each series, issued in any one calendar year,* which may be held by any one person at any one time, computed in accordance with the provisions of § 315.11, are limited, as follows:

(a) Series E-(1) General limitation. $5,000 (issue price) for each calendar year.5

4 The Ninth Revision of this circular contains information on prior annual limitations.

5 Effective December 1, 1969. Investors who purchased less than $5,000 (issue price) of the Series E bonds or $5,000 (face amount) in the case of Series H bonds prior to the effective date of the limitations were entitled only to purchase enough to bring their totals for the year to those amounts. Investors whose purchases exceeded these limitations could not purchase additional bonds during the remainder of the calendar year.

(2) Special limitations for employees' savings plans and savings and vacation plans. $2,000 (face amount) multiplied by the highest number of participants in any employees' savings plan as described in Department Circular No. 653, current revision (Part 316 of this chapter). Qualified savings and vacation plans are also eligible for this special limitation.

(b) Series H-(1) General limitation. $5,000 (face amount) for each calendar year.5

(2) Special limitation for gifts to exempt organizations under 26 CFR 1.501 (c) (3)-1. $200,000 (face amount) for each calendar year for bonds received as gifts by an organization which at the time of purchase is an exempt organization under the terms of 26 CFR 1.501 (c) (3)-1.

The foregoing amendment is made for the purpose of having the limitations in the regulations governing savings bonds conform to the current limitations in 31 CFR 316.5 and 332.5, the offerings of Series E and Series H savings bonds, respectively. In view of the earlier publication of these limitations in 35 F.R. 703, January 17, 1970, and 35 F.R. 849, January 21, 1970, I find that notice and public procedures are unnecessary. This action is effected under the provisions 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. [36 F.R. 22287, Nov. 24, 1971]

§ 315.11 Computation of amount.

(a) Definition of "person". The term "person" for purposes of this section shall mean any legal entity and shall include but not be limited to natural persons, corporations (pubic or private), partnerships, unincorporated associations, and trust estates. The holdings of each person individually and his holdings in any fiduciary capacity authorized by these regulations, such as, for example, his holdings as a guardian of the estate of a minor, as a life tenant, or as trustee under a will or deed of trust, shall be computed separately. A pension or retirement fund or an investment, insurance, annuity or similar fund or trust will be regarded as an entity regardless of the number of beneficiaries or the manner in which their respective

interests are established or determined. Segregation of individual shares as a matter of bookkeeing or as a result of individual agreements with beneficiaries or the express designation of individual shares as separate trusts will not operate to constitute separate trusts under these regulations.

(b) Bonds that must be included in computation. Except as provided in paragraph (c) of this section, there must be taken into account in computing the holdings of each person:

(1) All bonds registered in the name of that person alone;

(2) All bonds registered in the name of the representative of the estate of that person;

(3) All bonds originally registered in the name of that person as owner or reissued at the request of the original owner to add the name of that person as coowner or to designate his as coowner instead of as beneficiary. However, the amount of bonds of Series E and H held in coownership form may be applied to the holdings of either of the coowners or apportioned between them.

(c) Bonds that may be excluded from computation. There need not be taken into account:

(1) Bonds on which that person is named beneficiary;

(2) Bonds in which his interest is only that of a beneficiary under a trust;

(3) Bonds to which he has become entitled under section 315.67 as surviving beneficiary upon the death of the registered owner, as an heir or legatee of the deceased owner, or by virtue of the termination of a trust or the happening of any other event;

(4) Bonds of Series E purchased with the proceeds of matured bonds of Series A, C-1938, and D, where such matured bonds were presented for that purpose;

(5) Bonds of Series E bearing issue dates from May 1, 1941, to December 1, 1945, inclusive, held by individuals in their own right which are not more than $5,000 (face value) in excess of the prescribed limit;

(6) Bonds of Series E or H reissued under section 315.61 (a);

(7) Bonds of Series E or H reissued in the name of a trustee of a personal trust estate which did not represent excess holdings prior to such reissue;

(8) Bonds of Series E or H purchased with the proceeds of bonds of Series F, G, J, or K, at or after maturity, where such

matured bonds are presented for that purpose in accordance with the provisions of Department Circulars Nos. 653, current revision (Part 316 of this chapter), offering bonds of Series E, and 905, current revision (Part 332 of this chapter), offering bonds of Series H;

(9) Bonds of Series H issued in exchange for bonds of Series E, F, or J under the provision of Department Circular No. 1036 (Part 339 of this chapter) as in effect at the time of the exchange. [Dept. Circ. 530, Ninth Rev., 29 F.R. 19034, Dec. 30, 1964, as amended at 31 F.R. 7682, May 28, 1966]

§ 315.15 Limitation on transfer or pledge.

Savings bonds are not transferable and are payable only to the owners named thereon, except as specifically provided in these regulations, and then only in the manner and to the extent so provided. A savings bond may not be hypothecated, pledged as collateral, or used as security for the performance of an obligation, except as provided in § 315.16. § 315.16 Pledge under Department_Circular No. 154 and Public Debt Series No. 4-67.

A bond may be pledged by the registered owner in lieu of security under the provisions of Department Circular No. 154, current revision (Part 225 of this chapter), if the bond approving officer is the Secretary of the Treasury, in which case an irrevocable power of attorney shall be executed authorizing the Secretary of the Treasury to request payment. A bond may also be deposited as security with a Federal Reserve Bank under the provisions of Department Circular, Public Debt Series No. 4-67 (Part 317 of this chapter).

[32 F.R. 3447, Mar. 2, 1967]

(a) No judicial determination will be recognized which would give effect to an attempted voluntary transfer inter vivos of a bond or would defeat or impair the rights of survivorship conferred by these regulations upon a surviving coowner or beneficiary, and all other provisions of this subpart are subject to this restriction. Otherwise, a claim against an owner or coowner of a savings bond and conflicting claims as to ownership of, or interest in, such bond as between coowners or between the registered owner and beneficiary will be recognized, when established by valid judicial proceedings, upon presentation and surrender of the bond, but only as specifically provided in this subpart.

(b) Neither the Treasury Department nor any agency for the issue, reissue, or redemption of savings bonds will accept notices of adverse claims or of pending judicial proceedings or undertake to protect the interests of litigants who do not have possession of a bond.

(a) Creditors. Payment (but not reissue) of a savings bond registered in single ownership, coownership, or beneficiary form will be made to the purchaser at a sale under a levy or to the officer authorized to levy upon the property of the registered owner or coowner under appropriate process to satisfy a money judgment. Payment will be made to such purchaser or officer only to the extent necessary to satisfy the judgment and will be limited to the redemption value current sixty days after the termination of judicial proceedings. Payment of a bond registered in coownership form pursuant to a judgment or levy against only one of the coowners will be limited to the extent of that coowner's interest in the bond; this interest may be established by an agreement between the coowners or by a judgment, decree, or order of court entered in a proceeding to which both coowners are parties.

(b) Trustees in bankruptcy and receivers. Payment of a savings bond will be made to a trustee in bankruptcy, a receiver of an insolvent's estate, a receiver in equity, or a similar officer of

the court, under the applicable provisions of paragraph (a) of this section, except that payment will be made at the redemption value current on the date of payment.

§ 315.22 Payment or reissue pursuant to judgment.

(a) Divorce. A degree of divorce ratifying or confirming a property settlement agreement or otherwise settling the respective interests of the parties in a bond will not be regarded as a proceeding giving effect to an attempted voluntary transfer under the provisions of § 315.20. Consequently, reissue of a savings bond may be made to eliminate the name of one spouse as owner, coowner, or beneficiary, or to substitute the name of one spouse for that of the other as owner, coowner, or beneficiary pursuant to such a decree. The evidence required under § 315.23 must be submitted in any case. Where the decree does not set out the terms of the property settlement agreement a certified copy of the agreement must also be submitted. If bonds are registered with a person other than one of the spouses as owner or coowner there must be submitted either a request for reissue by such person or a certified copy of a judgment, decree, or order of court entered in a proceeding to which he was a party, determining the extent of the interest in the bond held by the spouse whose name is to be eliminated, and reissue will be permitted only to the extent of the spouse's interest in the bonds. Payment rather than reissue will be made if requested.

(b) Gifts causa mortis. A bond belonging solely to one person will be paid or reissued on the request of the person found by a court to be entitled thereto by reason of a gift causa mortis by the sole owner.

(c) Date for determining rights. For the purpose of determining whether or not reissue shall be made under this section pursuant to judicial proceedings, the rights of all parties involved shall be those existing under these regulations at the time of the entry of the final judgment, decree, or order.

§ 315.23 Evidence necessary.

To establish the validity of judicial proceedings, there must be submitted certified copies of a final judgment, decree, or order of court and of any necessary supplementary proceedings.

If the judgment, decree, or order of court was rendered more than six months prior to the presentation of the bond, there must also be submitted a certificate from the clerk of the court, under its seal, dated within six months of the presentation of the bond showing that the judgment, decree, or order of court is in full force. A request for payment by a trustee in bankruptcy must be supported by duly certified evidence of his appointment and qualification. A request for payment by a receiver of an insolvent's estate must be supported by a copy of the order appointing him, certified by the clerk of the court, under its seal, as being in full force on a date not more than six months prior to the date of the presentation of the bond. A request for payment by a receiver in equity or a similar officer of the court, other than a receiver of an insolvent's estate, must be supported by a copy of an order authorizing him to present the bond for redemption, certified by the clerk of the court, under its seal, as being in full force on a date not more than six months prior to the presentation of the band.

Subpart F-Relief for Loss, Theft, Destruction, Mutilation, Defacement, or Nonreceipt of Bonds

§ 315.25 After receipt by owner or his representative.

Relief, either by the issue of a substitute bond marked "Duplicate" or by payment, may be given under section 8 of the Act of July 8, 1937, as amended (50 Stat. 481, as amended, 31 U.S.C. 738a), for the loss, theft, destruction, mutilation, or defacement of a bond after receipt by the owner or his representative. In granting relief under the act, the Secretary of the Treasury may require a bond of indemnity in such form and with such surety as may be deemed necessary for the protection of the United States of America. In all cases the bond must be identified and the applicant must submit satisfactory evidence of loss, theft, or destruction, or a satisfactory explanation of the mutilation or defacement. Relief on account of loss or theft ordinarily will not be granted until six months after the date of receipt by the Bureau of the Public Debt of the notice of such loss or theft.

§ 315.26 Procedure to be followed.

(a) Immediate notice of the facts concerning the loss, theft, destruction, muti

lation, or defacement of a bond, together with its complete description (series, year and month of issue, serial number, name and address of the registered owner or coowners), should be given to the Bureau of the Public Debt, Division of Loans and Currency Branch. Defaced bonds and all available fragments of mutilated bonds in any form whatsoever should be submitted. That office will furnish the proper application form and instructions.

(b) The application must be made by the person or persons (including both coowners, if living), authorized under these regulations to request payment of the bond, except as follows:

(1) If the bond is in beneficiary form and the owner and beneficiary are both living, both ordinarily will be required to join in the application.

(2) If a minor named on a bond as owner, coowner, or beneficiary is not of sufficient competency and understanding to request payment, both parents ordinarily will be required to join in the application.

§ 315.27 Nonreceipt of bond.

If a bond, on original issue or on reissue, is not received from the issuing agent by the registered owner or other person to whom delivery of the bond was directed, the issuing agent should be notified as promptly as possible and given all information available about the transaction. The agent will then obtain appropriate instructions and forms. After approval of the application for relief, relief will be granted by the issuance of a bond, bearing the same issue date as the bond which was not received.

§ 315.28 Recovery or receipt of bonds reported lost, stolen, destroyed, or not received.

If a bond reported lost, stolen, destroyed, or not received, is recovered or received before relief is granted, the Bureau of the Public Debt, Division of Loans and Currency Branch, should be notified promptly. If recovered or received after relief is granted, the bond should be surrendered promptly to the same office for cancellation.

Subpart G-Interest

§ 315.30 General.

Savings bonds are issued in two forms: (a) Appreciation bonds, issued on a discount basis and redeemable before

final maturity at increasing fixed redemption values; and

6

(b) Current income bonds, issued at par, bearing interest payable semiannually and redeemable before final maturity at par or at fixed redemption values less than par.

[Dept. Circ. 530, Ninth Rev., 29 F.R. 19034, Dec. 30, 1964, as amended at 31 F.R. 11303, Aug. 26, 1966]

§ 315.31 Appreciation bonds.

Bonds issued on a discount basis increase in redemption value at the end of the first half-year from issue date and at the end of each successive half-year period thereafter until their maturity date, when the full face amount becomes payable.' Bonds of Series E bearing issue dates of May 1, 1941, through May 1, 1949, will continue to increase in redemption value after the maturity date for twenty years and those bearing issue

• The final interest on Series H bonds bearing issue dates of June 1, 1952, through January 1, 1957, covers a period of 2 months. from 91⁄2 years to 9 years, 8 months. The final interest for bonds bearing issue dates of February 1, 1957, through May 1, 1959, covers a period of 6 months, from 91⁄2 years to 10 years. Bonds so dated will continue to earn interest for a 10-year optional extension period during which time interest will accrue and be paid beginning 6 months from the original maturity date, in accordance with the provisions of Department Circular No. 905 (Part 332 of this chapter), current revision. Since May 1, 1957, the only current income bonds on sale are those of Series H. See Department Circular No. 906 (formerly codified as 31 CFR Part 333), as amended for Series K.

7 Series E bonds issued on or before April 30, 1952, increased in redemption value at the beginning of the second year after issue date and at the beginning of each successive half-year period thereafter to original maturity. Series E bonds issued on and after May 1, 1952, and Series J bonds, the sale of which terminated on April 30, 1957, increased in redemption value at the beginning of each successive half-year period after issue date. At original maturity the last increase in redemption value of Series E bonds issued on or after May 1, 1952, covers these periods: 2 months, from 91⁄2 years through 9 years, 8 months, for bonds issued before February 1, 1957; 5 months, from 82 years through 8 years, 11 months, for bonds issued on or after February 1, 1957, but before June 1, 1959; 3 months, from 712 years through 7 years, 9 months (for bonds issued on and after June 1, 1959, but before December 1, 1965; and 6 months, from 61⁄2 years through 7 years for bonds issued on and after December 1, 1965.

dates beginning with June 1, 1949, for ten years after the maturity date, in accordance with the provisions of Department Circular No. 653, current revision.* The increment in value (interest) on appreciation bonds is payable only on redemption of the bonds.

[Dept. Circ. 530, Ninth Rev., 29 F.R. 19034, Dec. 30, 1964, as amended at 31 F.R. 7683, May 28, 1966]

§ 315.32 Current income bonds.

(a) Interest rates. The interest payable on a current income bond is fixed by the provisions of the Department circular offering the particular series of bonds to the public."

(b) Method of interest payments. Interest due on a current income bond is payable semiannually beginning six months from its issue date and will be paid on each interest payment date by check drawn to the order of the person or persons in whose names the bond is inscribed, in the same form as their names appear in the inscription on the bond, and mailed to the address of record (that given for the delivery of interest checks in the application for purchase or the request for reissue or, if no instruction is given as to the delivery of interest checks, the address given for the owner or the first-named coowner), except that:

(1) In the case of a bond registered in the form "A payable on death to B" the check will be drawn to the order of "A" alone until the Bureau of the Public Debt, Division of Loans and Currency Branch, receives notice of A's death, from which time the payment of interest will be suspended until the bond is presented for payment or reissue. Interest so withheld will be paid to the person found to be entitled to the bond.

(2) Upon receipt of notice of the death of the coowner to whom interest is being mailed, payment of interest will be suspended until a request for change of address is received from the other coowner, if living, or, if not, until satisfactory evidence is submitted as to who is authorized to endorse and collect such checks on behalf of the estate of the last deceased coowner in accordance with the provisions of Subpart O of this part.

(3) Upon receipt of notice of the death of the owner of a bond, payment of interest on the bond will be suspended

'See Tables of Redemption Values of that circular for extended maturity values.