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AUTHORITY: The provisions of this Part 321 issued under sec. 22, 49 Stat. 41, as amended; 31 U.S.C. 757c.

SOURCE: The provisions of this Part 321 contained in 1945 Department Circular 750, Revised, 10 F.R. 8098, July 3, 1945, unless otherwise noted.

CROSS REFERENCE: For amendatory and supplementary provisions governing the special endorsement of United States Savings Bonds of any series and the payment of matured Series F, G, J and K Bonds by eligible paying agents, see Part 330 of this subchapter.

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Commercial banks, trust companies, savings banks, savings and loan associations, building and loan associations (including cooperative banks), credit unions, cash depositories, industrial banks, and similar financial institutions which (a) are incorporated under Federal law or under the laws of a State, territory or possession of the United States or the District of Columbia; (b) in the usual course of business accept, subject to withdrawal, funds for deposit or the purchase of shares; (c) are under the supervision of the banking department or equivalent authority of the jurisdiction in which incorporated; (d) maintain regular offices for the transaction of their business; and (e) are open daily and observe regular business hours, are eligible to become paying agents and, upon qualification in accordance with § 321.2 are hereby authorized to make payments in connection with the redemption and redemption-exchange of United States Savings Bonds, subject to the provisions of this part and any instructions issued hereunder.

[1945 Dept. Circ. 750, Rev., 10 F.R. 8098, July 3, 1945, as amended by 1959 Dept. Circ. 750, Rev., Supp. 1, 25 F.R. 407, Jan. 19, 1960]

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cated' on Application-Agreement Form PD 1958, Revised (see appended Exhibit A), copies of which may be obtained from the appropriate Federal Reserve Bank. If the application is approved, the Federal Reserve Bank will forward to the applicant a Notice of Qualification Form PD 1959, Revised (see appended Exhibit B), establishing that it is qualified to make payments in connection with the redemption of the United States Savings Bonds hereinafter specified. If the application is not approved, the applicant will be so advised in writing by the Federal Reserve Bank of the District.

(a) Continuation of existing qualifications. Any incorporated bank or trust company duly acting as a paying agent at the effective date of this revision may continue so to act under its present qualification, but subject to the terms and conditions of this part.

(b) An agent duly qualified to act under Department Circular No. 750, Revised, may act in connection with the redemption-exchange of Series E, F and J bonds under the provisions of Department Circular No. 1036, and in so acting, it is bound by and must comply with the provisions of this supplement.

[1945 Dept. Circ. 750, Rev., 10 F.R. 8098, July 3, 1945, as amended by 1959 Dept. Circ. 750, Rev., Supp. 1, 25 F.R. 407, Jan. 19, 1960]

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§ 321.4

Subpart B-General

Meaning of terms in this part.

For the purpose of this part, unless otherwise indicated specifically, or by context, the terms:

(a) "Paying agent(s)" or "agent(s)" shall mean (1) any eligible financial institution duly qualified pursuant to the provisions of this part to make payments in connection with the redemption and redemption-exchange of the United States Savings Bonds hereinafter specified, including branches of such institutions located within the United States, its territories and possessions, the Commonwealth of Puerto Rico and the Canal Zone, and (2) banking facilities of such institutions established at Armed Forces installations and other places with the specific approval of the Treasury Department.

(b) "Bond(s)" shall include only United States Savings Bonds of Series A, B, C, D or E presented for cash payment, and Series E, F and J bonds presented for redemption-exchange for Series H bonds under the provisions of Department Circular No. 1036. Savings bonds of Series G, H and K, and bonds of Series F ineligible for redemptionexchange under Department Circular No. 1036 are not included.

(c) "Owner(s)" shall mean an individual (natural person) whose name is inscribed as an owner (or coowner) in his own right on a bond which is registered in any of the following forms:

(1) In the name of a single individual in his own right, e. g., John A. Jones;

(2) In the names of two individuals as coowners, e. g., John A. Jones or Mrs. Ella S. Jones (each is considered as an owner, and payment may be made to either without the consent of the other); or

(3) In the name of one individual payable on death to another, e. g., John A. Jones, payable on death to Mrs. Ella S. Jones, or John A. Jones, p. o. d. Mrs. Ella S. Jones. (In this example, John A. Jones is the owner and Mrs. Ella S. Jones is the beneficiary. Payment under this circular to a beneficiary is not authorized.)

(d) "Federal Reserve Bank" includes each Federal Reserve Bank and each Branch of a Federal Reserve Bank conducting any of the transactions in con

nection with which the term is used in

this part.

[1945 Dept. Circ. 750, Rev., 10 F.R. 8098, July 3, 1945, as amended by 1959 Dept. Circ. 750, Rev., Supp. 1, 25 F.R. 407, Jan. 19, 1960; 29 F.R. 19075, Dec. 30, 1964.]

§ 321.5 Reimbursement of agents' costs.

(a) Each paying agent shall be entitled to receive reimbursement for its service for all bonds paid hereunder and accounted for by it in each calendar quarter, according to the following scale: 15 cents each for the first 1,000 bonds. 10 cents each for all over 1,000 bonds. Each Federal Reserve Bank is authorized to establish a definite and regular closing time for determining those paid bonds to be considered as accounted for in a calendar quarter. Such closing time may be based upon a time that the paid bonds are forwarded to, or received by, the Federal Reserve Bank and shall be uniformly applied throughout the District of such Bank. The scale of rates shall be applicable separately to the agent and to each of its branches utilized in making payments under this part, if the bonds paid by each are separately scheduled and accounted for. The payment of such amount as the agent is entitled to receive will be made by the Treasury Department.

(b) Paying agents shall not make any charge whatever to owners of savings bonds in connection with payments hereunder.

[1957 Dept. Circ. 750 Rev., Amdt. 3, 22 F. R. 219, Jan. 10, 1957; 22 F. R. 263, Jan. 12, 1957] § 321.6 Announcements, etc., of authority to pay bonds.

Any announcement of or any reference to an agent's authority to pay savings bonds may be made only in a form or manner or contain such statements or substance as may be approved by the Secretary of the Treasury or, under authority of the Secretary, by the Federal Reserve Bank of the District, as Fiscal Agent of the United States. An eligible financial institution shall not make such announcements or references unless and until it is officially qualified to pay bonds.

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In order to protect the interests of the owners and to insure receipt by the proper persons of the proceeds thereof, savings bonds are registered, are not transferable, and, in accordance with their terms, are payable only to the owner named on the bond (except as otherwise specifically provided in the regulations governing the bonds); they may not be used as security for loans or advances in any form. This policy must be understood and effectuated by each agent, notwithstanding the authority granted herein to make payments of bonds, since it is of the utmost importance that payment of the appropriate redemption value of the bonds be made only to and received by the persons entitled and strictly under the terms and conditions of the bonds and applicable regulations.

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Subject to the terms of the bonds and to the provisions of the regulations governing them (Treasury Department Circular No. 530 (Part 315 of this chapter), as currently in effect on the date of payment) and the provisions of this part, an agent may make payment of any United States Savings Bond of Series A, B, C, D or E, to the individual (natural person) whose name is inscribed as the owner (or coowner) in his own right on the bond: Provided, That such individual presents the bond to the agent for payment and that the individual is known to the agent or establishes his identity to the complete satisfaction of the agent. This authority to make payments to the owner named on the bond will be held to include the following exceptional cases:

(a) Payments-owner's name changed by marriage. Where the name of the owner as inscribed on the bond has been changed by marriage and the agent knows or can establish to its complete satisfaction the identity of the owner

§ 321.8a

whose name has been so changed. The signature to the request for payment should show both names. An agent is not authorized to pay a bond for an owner whose name as inscribed on the bond has been changed in any other manner.

(b) Payments—to parent of a minor. Where the name of the owner inscribed on the bond is that of a minor child who is not of sufficient competency and understanding to execute the request for payment and comprehend the nature of such act but upon whose behalf request for payment is made by a parent with whom the child resides: Provided, however, That the form of registration does not indicate a guardian or similar representative of the estate of the minor owner has been appointed or is otherwise legally qualified. The parent requesting payment on behalf of the minor child must be known or his or her Identity established to the complete satisfaction of the agent, and the parent must sign the request for payment in the form: “John A. Jones, on behalf of John C. Jones" and affix an endorsement in substantially the following form, which may be typed on the back of the bond: "I certify that I am the

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(father or mother) of John C. Jones and
the person with whom he resides. He is
I years of age and is not of sufficient
competency and understanding to sign
the request." Such a payment may not
be made to any person other than a
father or mother.

§ 321.8a Redemption-exchange of Se-
ries E, F and J bonds for Series H
bonds.

Subject to the terms of the bonds, the provisions of the regulations governing them (Treasury Department Circular No. 530 as currently in effect on the date of the redemption-exchange), and the provisions of this circular, an agent may accept for redemption-exchange Series E, F and J bonds under the provisions of Department Circular No. 1036.

[1959 Dept. Circ. 750, Rev., Supp. 1, 25 F.R. 407, Jan. 19, 1960]

§ 321.9 Specific limitations of payment authority.

An agent is not authorized to pay a bond:

(a) If the bond is presented for payment prior to the expiration of two months from the issue date (the issue

date should not be confused with the date appearing in the issuing agent's dating stamp). Any payment or advance to a bond owner before a bond is eligible for redemption is not authorized in any circumstance.

(b) If the agent does not know or cannot establish to its complete satisfaction the identity of the person requesting payment as the owner of the bond (including the establishment of the identity of parents requesting payment on behalf of minor children, as set forth in § 321.8(b)).

(c) If the owner requesting payment (form for which appears on the back of each bond) does not sign his name in ink as it is inscribed on the face of the bond and show his home or business address. (See also § 321.8 (a) and (b) and § 321.10 (d).)

(d) If the bond appears to bear a material irregularity, for example, an altered, illegible, incomplete, or unauthorized inscription, issue date or issuing agent's validating stamp impression; or if a bond appears to be altered, or is mutilated or defaced in such a manner as to create doubt or arouse suspicion with respect to the bond or any essential part thereof.

(e) If Treasury Department regulations require the submission of documentary evidence to support the redemption of the bond, as in the case of deceased owners, incompetents or minors under legal guardianship or the change of an owner's name as inscribed on a bond if for any reason other than marriage.

(f) If the owner named on the bond and requesting payment is a minor who, in the opinion of the agent, is not of suf◄ ficient competency and understanding to execute the request for payment and comprehend the nature of such act. (Note the authority granted to agents to make payments of bonds to either parent on behalf of a minor child under the provisions of § 321.8(b).)

(g) If it is known to the agent that the owner has been declared, in accordance with law, incompetent to manage his estate.

(h) If partial redemption is requested. Attention is directed to § 321.17 for handling bonds of the foregoing classes of cases which may not be paid by agents. (1961 Dept. Circ. 750, Rev., Amdt. 14, 26 F.R. 4449, May 24, 1961]

Subpart D-Payment and Accounting § 321.10 Examination of bonds presented for payment.

Before making payment of bonds presented hereunder the agent:

(a) Shall determine that the person requesting payment as the "owner" (as defined in this part) is known or his identity is established to the satisfaction of the agent.

(b) Shall examine the bond and determine that it is a bond which the agent is authorized to pay under the provisions of this part.

(c) If the request for payment on the back of the bond is already executed, shall determine that the request is properly signed by the registered owner presenting the bond and that his home or business address is shown.

(d) If the request for payment on the back of the bond has not been executed or has been improperly executed by the owner presenting the bond, shall require such owner to properly sign the request and show his home or business address.

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In view of the provisions of this part governing payment of bonds and the requirements as to the data to be endorsed on each bond, under § 321.12, an agent will not be required in the case of any bond paid by it to complete the certification form at the end of the request for payment, nor determine the authenticity of any certification which may appear on the bond at the time it is presented for payment: Provided, however, That each agent submitting paid bonds shall be understood by such submission to have represented and certified that the identity of the owner requesting payment has been duly established to the satisfaction of the agent by one of its officers or by an employee duly authorized by the agent. § 321.12 Determination of redemption values and payment of bonds.

The redemption value of a bond is, determined according to the period of time that it has been outstanding, and the table of redemption values applicable to each bond. The Federal Reserve Bank

of the District will furnish each agent monthly with a table of redemption values from which it will be possible, after determining the month and year of issue of any bond, to immediately establish its current value. After establishing such value, payment thereof to the owner requesting payment shall be made in cash. No objection will be made to an arrangement between the owner and the agent under which the owner accepts in lieu of cash, a credit to his checking, savings or share account with the agent, or a check or similar instrument payable to his order. Each agent shall place on the face of each bond paid by it the word "Paid," the amount and date of payment and the name, location and code number assigned to the agent by the Federal Reserve Bank. Other data pertinent to the payment procedure of an agent may be included if approved by the Federal Reserve Bank of the District. The Federal Reserve Bank will furnish rubber stamps for this purpose or, in lieu thereof, will approve suitable stamps prepared by an agent. The affixation of such data shall be construed by and between the agent and the Treasury Department to be a certification by the paying agent that the bond has been paid in accordance with the terms and requirements of this part and that payment of the proceeds of the bond has been made to the owner.

[1945 Dept. Circ. 750 Rev., 10 F. R. 8098, July 3, 1945, as amended by 1952 Dept. Circ. 750, Amdt. 2, 17 F. R. 6246, July 12, 1952] § 321.13 Forwarding paid bonds to the Federal Reserve Bank.

After payment, the bonds shall be forwarded to the Federal Reserve Bank of the District in accordance with instructions issued by such Federal Reserve Bank.

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