1 4-month period in the case of the 52-year to 5-year and 10-month period. 2 Month, day, and year on which issues of June 1, 1969, enter each period. For sub

sequent issue months add the appropriate number of months.

Based on maturity value in effect on the beginning date of the half-year period.

Period after issue date

Available only to trustees of employees' savings and savings and vacation plans. 4-month period in the case of the 52-year to 5-year and 10-month period. 'Month, day, and year on which issues of December 1, 1969, enter each period. For

subsequent issue months add the appropriate number of months.

4 Based on maturity value in effect on the beginning date of the half-year period.

dates from May 1, 1941. Summary of investment yields during maturity, extended maturity and second extended maturity periods under regulations prescribed for Series E savings bonds with issue

*All yields are in terms of percent per annum, compounded semiannually. The first figure in each maturity period is the overall yield for that period at time of entry into the period. The crediting of accruals is on a graduated basis unless otherwise indicated, the full rate being credited only upon holding to the end of the period (lesser credit if redeemed earlier). An "e" indicates accrual on an approximately level basis. A "b" indicates increased accrual on a bonus basis; that is, the full rate is credited only if the bond is on or after the effective date as follows: held to the end of the period (no increase if redeemed earlier). Rate increases within periods took effect at the beginning of the first full half-year interest accrual period starting

June 1, 1959. 0.60 and 0.50-graduated improvements in the rate to next maturity beginning 0.40-graduated improvement in the rate to next maturity beginning December 1,

1965.

0.10b-bonus improvement in the rate to next maturity beginning June 1, 1968, [35 F.R. 17602, Nov. 14, 1970]

which took effect as early as March 1, 1968 in some cases, but did not apply to the first accrual period if it was less than a half-year. 5.00-maximum rate to next maturity beginning June 1, 1969. 0.50b and 0.50e-bonus and level improvements in the rate to next maturity beginning June 1, 1970.

The regulations in this part prescribe the procedures whereby (a) banks, trust companies and savings institutions chartered by or incorporated under the laws of the United States or those of any State or Territory of the United States or the Commonwealth of Puerto Rico, (b) agencies of the United States and of State and local governments, (c) employers operating payroll savings plans for the purchase of U.S. Savings Bonds, and (d) other entities, may qualify, and thereafter act, as agents for the sale and issue of U.S. Savings Bonds of Series E and U.S. Savings Notes, issued pursuant to Treasury Department Circulars No. 653, current revision, and Public Debt Series No. 3-67 (Parts 316 and 342 of this chapter), respectively.

§ 317.1 Definitions of words and terms as used in this circular.

(a) "Bonds" refer to U.S. Savings Bonds of Series E.

(b) "Federal Reserve Bank" refers to the Federal Reserve Bank of the Federal Reserve district in which the issuing agent, or the applicant organization, is located, and includes Branches to the extent utilized by the parent Bank. In the context of the regulations in this part, the reference to the Federal Reserve Bank is in its capacity as fiscal agent of the United States.

(c) "Issuing agent" refers to an organization which has been issued a certificate of qualification to sell and issue bonds and notes, or bonds only.

(d) "Notes" refers to U.S. Savings Notes.

(e) "Organization" refers to any entity described in § 317.0 as eligible to qualify as an issuing agent of the bonds and notes, or bonds only.

§ 317.2 Procedure for qualifying as an issuing agent.

(a) General. An organization desiring to qualify as an issuing agent shall obtain from and file with the Federal Reserve Bank an appropriate applicationagreement form. If the organization desires to qualify as an issuing agent for bonds only, it shall, before submission, amend the form furnished so that it refers only to bonds. Through use of the appropriate form, the person authorized to act on behalf of the organization will certify that it is authorized by its governing body, or other body authorized to act in the premises, or by its charter, constitution or bylaws, to apply for and act as an issuing agent under the terms of the agreement, these regulations and the circulars offering the bonds and notes for sale, or, if appropriate, bonds only, and that applicable Federal or State law permits or does not prohibit the organization from so acting. In addition, the terms of any application-agreement filed hereafter and by reason of this paragraph include the provisions prescribed by section 202 of Executive Order No. 11246, entitled "Equal Employment Opportunity" (3 CFR, 1964-1965 Comp.). An issuing agent qualified prior hereto, whether under the provisions of this circular or Treasury Department Circular No. 657, as amended (rescinded effective Feb. 24, 1967), requisitioning stock on any of the bases provided for in paragraph (b) of this section, and which on or after November 30, 1966, entered into a contract of deposit with the Treasury Department in accordance with Treasury Department Circulars No. 92 (Revised) or No. 176 (Revised) (Part 203 or 202 of this chapter), need take no action with respect to its qualification hereunder. Any other issuing agent qualified prior hereto which desires to requisition stock on or after December 1, 1967, must signify its intent in writing to be bound by and comply with the provisions of section 202 of the order.

(b) Basis on which stock may be obtained (1) Trust agreement. An organization may obtain stocks on the basis of an application-trust agreement. Under the terms of such agreement, the stocks of bonds and notes obtained, together with the proceeds of sale therefrom, are at all times the property of the United States, for which the organization shall be fully accountable.

is

(2) Pledge agreement—(i) Pledge of collateral. An organization may obtain stock on the basis of a pledge of collateral. Under the terms of the application-pledge agreement, collateral pledged at the cost price of the maximum amount of stocks of bonds and notes, and the proceeds of sales therefrom, for which the organization may be accountable at any one time.

(ii) Security. Security which may be required under the application-pledge agreement shall consist of either or both of the following:

(a) The amount of insurance directly available to the United States covering the proceeds of the issuing agent's sales of bonds and notes by reason of the agent's coverage by an acceptable Federal or State insurance corporation or fund; for example, in the case of a member bank of the Federal Deposit Insurance Corporation, the amount of security would be $15,000 and would cover approximately $20,000 (face amount) of stocks of bonds and notes.

(b) U.S. Treasury bonds or other direct obligations of the United States, or obligations unconditionally guaranteed as to both principal and interest by the United States, in negotiable form, which will be accepted at face value; and U.S. Savings Bonds of any series registered in the name of the issuing agent, which will be accepted at issue price. Savings bonds must be accompanied by an irrevocable power of attorney, executed on behalf of the issuing agent, authorizing the Secretary of the Treasury to request payment of the bonds. All obligations deposited pursuant hereto must be delivered to the Federal Reserve Bank before stocks of bonds and notes may be obtained.

(3) Prepayment of stock. An organization whose primary function as an issuing agent will relate to the issue of bonds and notes bought under its payroll savings plan, and which is not qualified under subparagraph (1) or (2) of this paragraph, is required to execute an application-prepayment agreement,

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under the terms of which all stocks of bonds and notes obtained for its issue function are prepaid at cost price.

(c) Issuing agents of bonds qualified under Treasury Department Circular No. 657, as amended. Issuing agents of bonds qualified prior to the rescission of Treasury Department Circular No. 657, as amended, who do not desire to qualify as issuing agents for the notes, may continue to act without requalification and by so doing shall be subject to the terms and conditions of this circular and the agreements under which they qualified in the same manner and to the same extent as though they had requalified hereunder.

[Dept. Circ., Public Debt Series No. 4–67, 32 F.R. 3447, Mar. 2, 1967, as amended at 32 F.R. 12914, Sept. 9, 1967]

§ 317.3 Certificate of qualification.

Until such time as a certificate of qualification is issued by the Federal Reserve Bank, an organization shall not make any effort to or perform any acts as an issuing agent, or advertise in any manner that it is authorized to perform such acts, or that it has applied for qualification as an issuing agent. Upon approval of the application-agreement, the Federal Reserve Bank will issue a notice of qualification to the organization, whereupon it will be authorized to issue bonds and notes, or bonds only, as herein provided, and become subject to the provisions of Part II of Executive Order No. 11246. The Federal Reserve Bank will notify the organization if the application-agreement is not approved, or after qualification, at any such time as the certificate of qualification is modified or terminated.

[32 F.R. 12914, Sept. 9, 1967]

§ 317.4 Modification or termination of qualification.

(a) By the United States. The Secretary of the Treasury, or the Federal Reserve Bank may modify or terminate the qualification of an issuing agent at any time, upon notice to that effect, and may require the immediate surrender of any part or all of the stocks of bonds and notes held by the agent for sale and not theretofore issued or sold, and any part or all of the proceeds due on account of the stocks issued or sold. The Secertary of the Treasury, or the Federal Reserve Bank, may also regulate the amount of stocks of bonds and notes which may be obtained, including temporary increases