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APPENDIX

Summary of investment yields during maturity and extended maturity periods under regulations prescribed for Series H savings bonds with issue dates from June 1, 1952.

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*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. Interest payments are on a graduated basis unless otherwise indicated, the full rate being received only if held to the end of the period (lesser rate if redeemed earlier). An "e" indicates payments on a level basis. A "b" indicates increased interest on a bonus basis; that is, the full rate is received only if the bond is 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 period starting on or after the effective date as follows:

0.50-graduated improvement in the rate to next maturity beginning June 1, 1959. 0.40-graduated improvement in the rate to next maturity beginning Dec. 1, 1965. 0.10b-bonus improvement in the rate to next maturity beginning June 1, 1968. 5.00-maximum rate to next maturity beginning June 1, 1969.

0.500 and 0.50b-level and bonus improvements in the rate to next maturity beginning June 1, 1970. In the case of 0.50b the increase is spread over the second 5 years of maturity period.

[35 F.R. 848, Jan. 21, 1970, as amended at 35 F.R. 17503, Nov. 13, 1970]

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337.5

337.6

Payment of final interest.

Address for further information. 337.7 General provisions.

AUTHORITY: The provisions of this Part 337 issued under 80 Stat. 379; sec. 303, 59 Stat. 601, as amended; 5 USC 301; 31 USC 868.

SOURCE: The provisions of this Part 337 contained in 1954 Department Circular 941, 19 F.R. 1952, Apr. 7, 1954, unless otherwise noted.

§ 337.0 Scope of regulations.

The United States Treasury Department is the agent of the Federal Housing Administration for transactions in any debentures which have been or may be issued pursuant to the authority conferred by the National Housing Act (48 Stat. 1246), as amended; 12 U.S.C. 1701 et seq.), as amended from time to time, including Mutual Mortgage Insurance Fund Debentures, Housing Insurance Fund Debentures, War Housing Insurance Fund Debentures, Military Housing Insurance Fund Debentures, and National Defense Housing Insurance Fund Debentures. In accordance with the regulations adopted by the Federal Housing Commissioner and approved by the Secretary of the Treasury, such transactions are governed by the general regulations of the Treasury Department governing United States bonds and notes (Part 306 of this subchapter) so far as applicable. The following rules and regulations are prescribed to supplement such general regulations.

§ 337.1 Transportation charges and risks.

Debentures presented for redemption at call or maturity, or for authorized prior purchase, must be delivered to a Federal Reserve Bank or Branch or to the Bureau of the Public Debt, Division of Loans and Currency, Washington, D.C. 20226, at the expense and risk of the holder. Debentures bearing

restricted assignments may be forwarded by registered mail, but for the owner's protection debentures bearing unrestricted assignment should be forwarded by registered mail insured or by express prepaid.

§ 337.2 Termination of transfers and denominational exchange transactions. Debentures, which by their terms are subject to call, may be called for redemption, in whole or in part, at par and accrued interest, on any interest date on three months' notice. No transfers or denominational exchanges in debentures covered by a given call will be made on the books of the Treasury Department on or after the announcement of such call. However, this does not affect the right of a holder of such debenture to sell and assign it on or after the announcement of the call date.

§ 337.3 Presentation and surrender.

(a) For redemption. To facilitate the redemption of called or maturing debentures, they may be presented and surrendered in the manner prescribed in this section, in advance (but not more than one month in advance) of the call or maturity date, as the case may be. Early presentation by holders will insure prompt payment of principal and interest when due. The debentures must first be assigned by the registered payee or his assignee, or by his duly constituted representative, in the form and manner indicated in § 337.4, and should then be submitted to any Federal Reserve Bank or to the Bureau of the Public Debt, Division of Loans and Currency, Washington, D.C. 20226, accompanied by appropriate written advice. A form for this purpose will be printed on the reverse of the notice of call.

(b) For purchase. Debentures, the purchase of which has been authorized prior to call or maturity, may be assigned and immediately submitted as instructed in paragraph (a) of this section, accompanied by written instructions.

§ 337.4 Assignments of matured or called debentures or debentures submitted for purchase.

(a) If the registered payee, or an assignee holding under proper assignment from the registered payee, desires that payment be made to himself the

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such payee or assignee, or on behalf by a duly constituted representative, to "The Federal Housing Commissioner for redemption" or to "The Federal Housing Commissioner for purchase," according to whether the debentures are to be presented for redemption upon call, or at maturity, or for purchase prior to call if purchase is offered. If the owner desires for any reason that payment be made to another, without intermediate assignment, the debentures should be assigned to "The Federal Housing Commissioner for redemption (or, purchase) for the amount of inserting the name and address of the person to whom payment is to be made.

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(b) An assignment in blank or other assignment having similar effect will be recognized, but in that event the debenture would be, in effect, payable to bearer, and payment will be made in accordance with the instructions received from the person surrendering the debenture for redemption or purchase. For the owner's protection, such assignments should be avoided unless the owner is willing to lose the protection afforded by registration.

(c) Upon call or at maturity a debenture registered in the name of or resigned to a corporation or unincorporated association will be paid on or after the call or maturity date, upon appropriate assignment for that purpose executed on such organization's behalf by a duly authorized officer thereof. An assignment so executed and duly witnessed in accordance with Treasury Department general bond regulations will ordinarily be accepted without proof of the officer's authority. In such cases payment will be made only by check drawn to the order of the corporation or unincorporated association. If debentures registered in the name of or assigned to a corporation or unincorporated association are presented upon call or at maturity and payment is to be made to some other person, or are presented for purchase prior to the call date if authorized, proof of the authority of the officer assigning on behalf of such organization will be required in accordance with the general regulations.

(d) All assignments must be made on the debentures themselves unless otherwise authorized by the Treasury Department.

§ 337.5 Payment of final interest.

Final interest on any debenture, whether purchased prior to or redeemed on or after the call or the maturity date, will be paid with the principal in accordance with the assignments on the debentures surrendered. In all cases the check in payment of principal and final interest will be mailed to the address given in the Form of Advice accompanying the debentures surrendered.

§ 337.6 Address for further information.

Any further information which may be desired regarding the redemption of called or matured debentures, or purchase if authorized, may be obtained from any Federal Reserve Bank or Branch or from the Bureau of the Public Debt, Division of Loans and Currency, Washington, D.C., 20226.

§ 337.7 General provisions.

As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to perform any necessary acts under this circular. The Secretary of the Treasury may at any time or from time to time prescribe supplemental and amendatory regulations governing the matters covered by this part, which shall be communicated promptly to the registered owners of the debentures.

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339.2 339.3

339.4

339.5

339.6

339.7

Denominations.

Exchanges with privilege of deferring

reporting of interest for Federal income tax purposes.

Exchanges without tax deferral.

Governing regulations.

Fiscal agents.

Preservation of rights.

339.8 Reservation as to terms of offer.

AUTHORITY: The provisions of this Part 339 issued under sections 18, 20, and 22 of the Second Liberty Bond Act, as amended (40 Stat. 1309, 48 Stat. 343, 49 Stat. 21, 73 Stat. 621, all as amended; 31 U.S.C. 753, 754b, 757c), and 5 U.S.C. 301.

SOURCE: The provisions of this Part 339 appear at 36 F.R. 23856, Dec. 15, 1971, unless otherwise noted.

§ 339.0 Offering of Series H bonds in exchange for Series E bonds and savings notes.

The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, hereby offers to the people of the United States, U.S. Savings Bonds of Series H in exchange for outstanding U.S. Savings Bonds of Series E and U.S. Savings Notes (freedom shares) without regard to the annual limitation on holdings for the Series H bonds. The Series H bonds offered hereunder are those described in Department Circular No. 905, current revision, except as otherwise specifically provided herein. This offering will continue until terminated by the Secretary of the Treasury. § 339.1 Definitions of words and terms as used in this circular. Unless the context otherwise requires or indicates:

(a) "Securities" mean outstanding U.S. Savings Bonds of Series E and U.S. Savings Notes (freedom shares).

(b) "Owner" means an owner of securities, except a commercial bank in its own right (as distinguished from a representative or fiduciary capacity) and a nonresident alien who is a resident of an area with respect to which the Treasury Department restricts or regulates delivery of checks drawn against funds of the United States or any agency or instrumentality thereof. The term includes a registered owner, whether or not a natural person, either coowner (but only the "principal coowner" if Series H bonds are requested in a form of registration different from that on the securities submitted), a surviving beneficiary, or any other person who would be entitled to reissue under the regulation governing U.S. Savings Bonds,1 such as, but not limited to, any person entitled to succeed to the estate of a deceased owner.

(c) "Commercial bank” means a bank accepting demand deposits.

(d) "Interest" means the increment in value on Series E savings bonds and on savings notes.

(e) "Principal coowner" means a coowner who purchased the securities submitted for exchange with his own funds or received them as a gift, legacy or inheritance or as a result of judicial pro

1 Department Circular No. 530, current revision (31 CFR Part 315). Copies may be obtained from any Federal Reserve Bank or Branch or the Bureau of the Public Debt, Washington, D.C. 20220.

ceedings and had them reissued in coownership form, provided he has received no contribution in money or money's worth from the other coowner for designating him on the securities. § 339.2 Denominations.

Series H bonds, available for use hereunder, are in denominations of $500, $1,000, $5,000 and $10,000.

§ 339.3 Exchanges with privilege of deferring reporting of interest for Federal income tax purposes.

(a) Tax-deferred exchanges. Pursuant to the provisions of section 1037 (a) of the Internal Revenue Code of 1954, the Secretary of the Treasury hereby grants to owners who have not been reporting the interest on their securities on an accrual basis for Federal income tax purposes the privilege of exchanging such securities for Series H bonds and of continuing to defer reporting of the interest on the securities exchanged (except interest referred to in paragraph (b) (5) of this section) for Federal income tax purposes to the taxable year in which the Series H bonds received in exchange are disposed of, are redeemed, or have reached final maturity, whichever is earlier.2

(b) Rules governing the exchange. (1) Exchange subscription Form PD 3253, completed and executed in accordance with the instructions thereon, the securities, any cash difference (see subparagraph (3) of this paragraph), and any supporting evidence which may be required under the governing regulations 3 may be presented or forwarded to any authorized agency.*

2 The interest paid semiannually by check on all Series H bonds, whether issued in exchange under this or any other section, or otherwise, is subject to the Federal income tax for the taxable year in which it is received.

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3 For example, a beneficiary named on Series E bonds would have to submit proof of the death of the registered owner in order to exchange such bonds for Series H bonds. Agents authorized to pay Series E bonds and savings notes are authorized to accept and handle exchange subscriptions submitted by natural persons whose names are inscribed on the face of the bonds and notes as owners or coowners in their own right. However, as agents of subscribers they may forward any exchange subscription to a Federal Reserve Bank or Branch or the Securities Division, Office of the Treasurer of the United States, Washington, D.C. 20220, for acceptance and handling.

(2) A Series H bond issued upon exchange will be registered in the name of the owner of the securities submitted in any authorized form of registration. However, the "principal coowner" must be named as owner or coowner.

(3) The total current redemption value of the securities submitted for exchange in any one transaction must amount to $500 or more. If the total current redemption value is in an even multiple of $500, Series H bonds must be requested in that exact amount. If the total current redemption value exceeds $500, but is not in an even multiple of $500, the owner has the option of furnishing cash necessary to obtain Series H bonds of the next higher $500 multiple, or of receiving payment of the difference between the total current redemption value and the next lower multiple of $500. For example, under the rules prescribed in this circular, if the securities submitted for exchange in one transaction total $4,253.33 current redemption value, the owner may elect to:

(i) Receive $4,000 in Series H bonds and the amount of the difference, $253.33,

or

(ii) Pay the difference, $246.67, necessary to obtain $4,500 in Series H bonds.5

(4) Any amount paid to the owner as a cash adjustment (as in subparagraph (3) (i) of this paragraph) must be treated as income for Federal income tax purposes for the year in which it is received up to an amount not in excess of the total interest on the securities exchanged."

(5) Each Series H bond issued under this section will be stamped "EX" or "EXCH" to show that it was issued upon exchange. Each bond also will bear a legend showing how much of its issue

5 If a paying agent accepts a subscription solely for the purpose of forwarding it, or if the owner forwards it direct, to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, the remittance for the difference, by check or other form of exchange (which will be accepted subject to collection), must be drawn to the order of the Federal Reserve Bank or the Treasurer of the United States, as the case may be. The remittance must accompany the subscription and the securities to be exchanged.

• The amount, if any, paid to the owner in excess of the interest is a repayment on account of the purchase price of the securities exchanged, not income.

price represents interest on the securities exchanged. This interest must be treated as income for Federal income tax purposes for the year in which the Series H bond is redeemed, is disposed of, or finally matures, whichever is earlier.

(6) The Series H bonds will be dated as of the first day of the month in which the securities, the exchange subscription, any necessary cash difference and supporting evidence, if any, are accepted for exchange by an authorized agency.

§ 339.4 Exchanges without tax deferral.

Exchanges by owners who (a) report the interest on all of their securities annually for Federal income tax purposes, or (b) who elect to report all such interest in the year of the exchange, or (c) who are tax-exempt under the provisions of the Internal Revenue Code of 1954 and the regulations issued thereunder, will be handled in the same manner and will be governed by the rules prescribed for exchanges under § 339.3. However, the Series H bonds will not bear the legend referred to in § 339.3(b) (5). Any part of the cash adjustment received which represents interest previously reported for Federal income tax purposes need not be accounted for. The Series H bonds may be registered in the name of the owner of the securities submitted in exchange in any authorized form of registration.

§ 339.5

Governing regulations.

All Series H bonds issued under this circular are subject to the regulations, now or hereafter prescribed, contained in Department Circular No. 530, current revision (Part 315 of this chapter). § 339.6 Fiscal agents.

Federal Reserve Banks and Branches, as fiscal agents of the United States, are authorized to perform such services as may be requested of them in connection with exchanges under these regulations. § 339.7 Preservation of rights.

The provisions of Treasury Department Circulars Nos. 530, 653, and 905, as currently revised, are hereby modified and amended to the extent that they are not in accordance with this circular. However, nothing contained herein shall limit or restrict rights which owners of Series H bonds received in earlier exchanges have heretofore acquired.

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