TABLE XLI.-UNITED STATES SAVINGS BONDS-SERIES E

TABLE OF REDEMPTION VALUES AND INVESTMENT YIELDS FOR BONDS BEARING ISSUE DATES FROM JUNE 1 THROUGH NOVEMBER 1, 1958

Table showing: (1) How bonds of Series E bearing issue dates from June 1 through November 1, 1958, by denominations, increase in redemption value during successive half-year periods following issue; (2) the approximate investment yield on the purchase price from issue date to the beginning of each half-year period; and (3) the approximate investment yield on the current redemption value from the beginning of each half-year period to maturity. Yields are expressed in terms of rate percent per annum, compounded semiannually.

1 5-month period in the case of the 81⁄2 year to 8 year and 11 month period.

Approximate investment yield from beginning of each half-year period to maturity, at original maturity value prior to June 1, 1959, revision.

Revised approximate investment yield from effective date of revision to maturity.

TABLE XLII.-UNITED STATES SAVINGS BONDS-SERIES E

TABLE OF REDEMPTION VALUES AND INVESTMENT YIELDS FOR BONDS BEARING ISSUE DATES FROM DECEMBER 1, 1958, THROUGH MAY 1, 1959

Table showing: (1) How bonds of Series E bearing issue dates from December 1, 1958, through May 1, 1959, by denominations, increase in redemption value during successive half-year periods following issue; (2) the approximate investment yield on the purchase price from issue date to the beginning of each half-year period; and (3) the approximate investment yield on the current redemption value from the beginning of each half-year period to maturity. Yields are expressed in terms of rate percent per annum, compounded semiannually.

15-month period in the case of the 81⁄2 year to 8 year and 11 month period. Approximate investment yield from beginning of each half-year period to maturity, at original maturity value prior to June 1, 1959, revision.

3 Revised approximate investment yield from effective date of revision to maturity.

EXHIBIT 7.-Second Revision, September 23, 1959, of Department Circular No. 905, regulations governing Series H savings bonds

TREASURY Department, Washington, September 23, 1959. Department Circular No. 905, Revised, dated April 22, 1957, as amended (31 CFR 332), is hereby revised to read as follows:

SEC. 332.1. Principal scope of circular-new Series H bonds with higher yields— future increased investment yields for all outstanding Series H bonds. This circular offers for sale new United States savings bonds of Series H with a higher invest

ment yield and provides for improved investment_yields on all outstanding unmatured United States savings bonds of Series H. See sections 332.3 and 332.12. These improvements will acrue to owners without any special action on their part. The bonds are hereinafter generally referred to as Series H bonds. SEC. 332.2. Authority for circular.-This circular is issued pursuant to the provisions of sections 22 and 25 of the Second Liberty Bond Act, as amended. Under the authority of section 25 of the act, the President of the United States has found that with respect to United States savings bonds of Series H it is necessary in the national interest to exceed, as provided herein, the maximum interest rate and investment yield prescribed by section 22.1

SEC. 332.3. New Series H bonds-investment yield 3.75 percent per annum compounded semiannually to maturity effective date June 1, 1959-(a) New Series H bonds.-The Secretary of the Treasury offers for sale to the people of the United States new United States savings bonds of Series H with a higher investment yield to maturity (as well as higher intermediate yields), as provided in paragraph (b). Otherwise, these bonds will be substantially a continuation of the Series H bonds heretofore available. This offering of bonds will continue until terminated by the Secretary of the Treasury.

(b) Investment yield (interest).-Series H bonds will be issued at par, and may be redeemed at par, at the owner's option, at any time after six months from the issue date, but only upon one calendar month's notice as provided in section 332.15. They will bear interest from the issue date payable semiannually by check drawn to the order of the registered owner or coowners, beginning six months from the issue date. Interest payments will be made on a graduated scale of amounts (as shown in table I at the end of this circular) which have been fixed to afford an investment yield of approximately 3.75 percent per annum, compounded semiannually, if the bonds are held to maturity, which will be 10 years from the issue date; but the yield will be less if they are redeemed prior to maturity. Interest will cease at maturity, or in the case of redemption before maturity, at the end of the interest period next preceding the date of redemption, except that, if the date of redemption falls on an interest payment date, interest will cease on that date.

(c) Effective date.-For the purposes of this section all Series H bonds with issue dates of June 1, 1959, through September 1, 1959, as well as subsequent issue dates, shall be deemed to be new Series H bonds, and the investment yield provided in paragraph (b) shall apply to them.

SEC. 332.4. Bonds purchased before new stock is available.-Until bonds have been printed and supplied to issuing agents, Series H bonds in the form on sale prior to June 1, 1959, will be issued for purchases under this circular. SERIES H BONDS PURCHASED IN THE INTERVAL UNTIL THE NEW STOCKS ARE AVAILABLE WILL CARRY THE NEW INVESTMENT YIELD AND ALL OTHER PRIVILEGES AS FULLY AS IF EXPRESSLY SET FORTH IN THE TEXT OF THE BONDS. If they desire to do so, owners of bonds with the issue date of June 1, 1959, or thereafter, may exchange such bonds at any Federal Reserve Bank or branch, or at the Office of the Treasurer of the United States, Washington 25, D.C., for bonds in the new form (with the same registration and issue dates) when the latter become available, but they need not do so because the Treasury Department will, as a matter of course, issue interest checks for all Series H bonds with the issue date of June 1, 1959, or thereafter, in the appropriate amounts as set forth in table I at the end of this circular.

SEC. 332.5. Description (registered form only-denominations-issue date, etc.).-Series H bonds are issued only in registered form and in denominations of $500, $1,000, $5,000, and $10,000. Each bond will bear the facsimile signature of the Secretary of the Treasury and an imprint of the Seal of the Treasury Department. At the time of issue, the issuing agent will inscribe on the face of each bond the name and address of the owner and the name of the coowner or beneficiary, if any; will enter in the upper right-hand portion of the bond the issue date (which shall be the first day of the month and year in which payment of the issue price is received by an authorized issuing agent); and will imprint the agent's dating stamp in the lower right-hand portion to show the date the bond is actually inscribed. As indicated in section 332.3(b), the issue date is important in determining the date on which the bond becomes redeemable, its maturity date and yield thereto as well as its intermediate yield. Accordingly, it should not be confused with the date on the agent's dating stamp. A Series H bond shall be valid only if an authorized issuing agent receives payment therefor,

See footnote 1 in exhibit 6.

duly inscribes, dates, stamps and delivers it. See section 332.6 for forms of registration.

SEC. 332.6. Registration.-(a) General.-Generally, only residents of the United States, its Territories and possessions, the Commonwealth of Puerto Rico, the Canal Zone, and citizens of the United States temporarily residing abroad are eligible to invest in Series H bonds. The bonds may be registered in the names of natural persons in their own right in the three conventional forms of registration, single ownership, coownership, and beneficiary forms heretofore available and in the names and titles of fiduciaries and organizations, as set forth below. Full information regarding eligibility to invest in savings bonds and authorized forms of registration and rights thereunder will be found in the regulations currently in force governing United States savings bonds.2

(b) Natural persons in their own right.—The bonds may be registered in the names of natural persons (whether adults or minors) in their own right, in single ownership, coownership, and beneficiary form.

(c) Others (only in single ownership form).—The bonds may also be registered as follows:

(1) Fiduciaries.-In the names and titles of any persons or organizations, public or private, as fiduciaries (including legal guardians, custodians, conservators, and trustees), except where the fiduciary would hold the bonds merely or principally as security for the performance of a duty, obligation, or service.

(2) Private and public organizations. In the names of private or public organizations (including private corporations, partnerships, and unincorporated associations, and States, counties, public corporations, and other public bodies) in their own right, but not in the names of commercial banks, which are defined for this purpose as those accepting demand deposits.

SEC. 332.7. Limitation on holdings.-The limits on the amount of any Series H bonds originally issued during any one calendar year that may be held by any one person at any one time (which will be computed in accordance with the regulations currently in force governing United States savings bonds) 2 are:

(a) General limitation.-$10,000 (maturity value) for the calendar year 1959 and each calendar year thereafter.

(b) Special limitation for owners of maturing savings bonds of Series F and G. Owners of outstanding bonds of Series F and Series G are hereby granted the privilege of applying the proceeds of the bonds, at or after maturity, to the purchase of Series H bonds without regard to the general limitation on holdings, under the following restrictions and conditions:

(1) This privilege extends to all owners of matured and maturing bonds of Series F and Series G, except bonds registered in the names of commercial banks in their own right (as distinguished from a representative or fiduciary capacity). For this purpose commercial banks are defined as those accepting demand deposits.

(2) It is subject to the restrictions prescribed in section 315.6 of the savings bond regulations.

(3) The matured bonds must be presented to a Federal Reserve Bank or branch for the specified purpose of taking advantage of this privilege.

(4) Series H bonds may be purchased with the proceeds of the matured bonds only up to the denominational amounts that the proceeds thereof will fully cover; any difference between such proceeds and the purchase price of Series H bonds will be paid to the owner.

(5) The Series H bonds will be registered in the name of the owner in any authorized form of registration.

(6) They will be dated as of the first day of the month in which the matured bonds are presented to a Federal Reserve Bank or branch.

(7) This privilege will continue until terminated by the Secretary of the Treasury.

SEC. 332.8. Nontransferability.-Series H bonds may not be used as collateral for a loan or as security for the performance of an obligation, or transferred inter vivos by voluntary sale or gift, discounted or disposed of in any manner other than as provided in the regulations governing United States savings bonds. Except as provided in said regulations, the Treasury Department will recognize only the inscribed owner, during his lifetime, and thereafter his estate or heirs.

Department Circular No. 530.

SEC. 332.9. Issue prices of bonds.—The issue prices of the various denominations of Series H bonds will be the par amount thereof as follows: $500, $1,000, $5,000, and $10,000.

SEC. 332.10. Purchase of bonds.

(a) Agencies.-Series H bonds may be purchased only at Federal Reserve Banks and branches, and at the Office of the Treasurer of the United States, Washington 25, D.C. Customers of commercial banks and trust companies may be able to arrange for the purchase of Series H bonds through such institutions, but only the Federal Reserve Banks and branches and the Treasury Department are authorized to act as official agencies, and the date of receipt of application and payment at an official agency will govern the dating of the bonds issued. (b) Application.-In applying for purchases of Series H bonds, the applicant should furnish: (1) instructions for registration of the bonds to be issued, which must be in one of the authorized forms (see section 332.6); (2) the post office address of the owner; (3) the address for delivery of the bonds; and (4) the address for mailing interest checks. The application should be forwarded to a Federal Reserve Bank or branch or to the Treasurer of the United States, Washington 25, D.C., accompanied by a remittance to cover the purchase price. Any form of exchange, including personal checks will be accepted, subject to collection. Checks, or other forms of exchange, should be drawn to the order of the Federal Reserve Bank or Treasurer of the United States, as the case may be. Checks payable by endorsement are not acceptable Any depositary qualified pursuant to the provisions of Treasury Department Circular No. 92, Revised (31 CFR 203) will be permitted to make payment by credit for bonds applied for on behalf of its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district.

SEC. 332.11. Delivery of bonds.-Authorized issuing agencies will deliver the Series H bonds either in person, or by mail at the risk and expense of the United States, at the address given by the purchaser, but only within the United States, its Territories and possessions, the Commonwealth of Puerto Rico, and the Canal Zone. No mail deliveries elsewhere will be made. If purchased by citizens of the United States temporarily residing abroad, the bonds will be delivered at such address in the United States as the purchaser directs.

The

SEC. 332.12. Increased future investment yields to maturity for all outstanding bonds with issue dates of June 1, 1952, through May 1, 1959.3-The investment yields on all outstanding Series H bonds with issue dates prior to June 1, 1959, are hereby increased (for the remaining period to maturity) by not less than onehalf of one percent, and by lesser amounts if they are redeemed earlier. resulting yields are in terms of rate percent per annum, compounded semiannually. See tables II through XVI at the end of this circular for revised schedules of interest checks and investment yields. This increase will be effective beginning with the interest checks due December 1, 1959, for bonds with the issue month of June or December of any year prior to 1959, and for all other bonds on the next interest payment date after December 1, 1959.

SEC. 332.13. Taxation. The income derived from Series H bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift, or other excise-taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority.

SEC. 332.14. Lost, stolen, or destroyed bonds.-If a Series H bond is lost, stolen, or destroyed, a substitute may be issued or payment may be obtained upon identification of the bond and proof of its loss, theft, or destruction. The owner should keep a description of his bonds by series, denomination, serial number, and name of coowner or beneficiary, if any, apart from the bonds, and in case of loss, theft, or destruction should immediately notify the Bureau of the Public Debt, Division of Loans and Currency Branch, 536 South Clark Street, Chicago 5, Illinois, briefly stating the facts and describing the bonds. Full instructions for obtaining substitute bonds or payment will then be given.

SEC. 332.15. Payment or redemption.-A Series H bond will be redeemed at par, in whole or in part (in the amount of an authorized denomination or multiple

For bonds with issue dates of June 1, 1959, or thereafter, see section 332.3.

4 The investment yields to maturity heretofore prescribed for the bonds referred to in section 332.12 were (according to issue dates) as follows:

June 1, 1952, through January 1, 1957. February 1, 1957 through May 1, 1959.. percent per annum compounded semiannually.

563852-61- -18

3.00

3.25