31 C.F.R. PART 330—REGULATIONS GOVERNING PAYMENT UNDER SPECIAL ENDORSEMENT OF UNITED STATES SAVINGS BONDS AND UNITED STATES SAVINGS NOTES (FREEDOM SHARES)
Title 31 - Money and Finance: Treasury
Authority: 5 U.S.C. 301; 31 U.S.C. 3105.
Source: 53 FR 37519, Sept. 26, 1988, unless otherwise noted.
The regulations in this part establish a procedure under which qualified paying agents may specially endorse United States Savings Bonds of certain series and United States Savings Notes (Freedom Shares), and either redeem the securities so endorsed, or forward them to a Federal Reserve Bank for redemption, with or without the owner's signature to the requests for payment. As used in this part: (a) Federal Reserve Bank or Bank refers to the Federal Reserve Bank providing savings bond services to the district in which a paying agent is located. See §330.9. (b) Owner(s) means the person(s) named as registered owner or coowners on a bond or note, or as the designated beneficiary who has succeeded to ownership of the bond or note upon the death of the owner. For the purposes of special endorsement, but not payment, by a qualified agent, the term may also include fiduciaries, corporations, partnerships, associations, and other entities named on a security, where such registration is authorized. (c) Paying agent(s) or agent(s) refers to an eligible financial institution qualified under the provisions of this part to specially endorse securities and qualified, under the provisions of Department of the Treasury Circular No. 750, current revision (31 CFR part 321), to redeem eligible savings bonds and notes. The term includes the branches of a qualified agent that redeem bonds and notes and are themselves directly accountable for such redemptions. (d) Redemption and payment are used interchangeably for payment of a bond or note in accordance with the terms of its offering and the regulations governing it, and include redemption-exchange. (e) Redemption-exchange means any authorized redemption of eligible securities for the purpose of applying the proceeds in payment for other securities offered in exchange by the Treasury. (f) Savings bond(s) or bond(s) means a United States Savings Bond of Series A, B, C, D, E, EE, or I. (g) Savings notes(s) or notes(s) means a United States Savings Note (Freedom Share). (h) Security or securities means a savings bond or note, as defined in paragraphs (f) and (g) of this section. (i) Special endorsement means a procedure under which a security is redeemed by an agent, qualified under the provisions of this part, for cash or on redemption-exchange (or forwarded for redemption to a designated Federal Reserve Bank, where appropriate), utilizing a special stamp placed on the security in lieu of a request for payment signed by the owner. [53 FR 37519, Sept. 26, 1988, as amended at 59 FR 10538, 10539, Mar. 4, 1994; 63 FR 38044, July 14, 1998] (a) Application for authority. Any financial institution qualified as a paying agent of savings bonds and notes under the provisions of Department of the Treasury Circular No. 750, current revision, may establish its eligibility to employ the special endorsement procedure by executing and submitting the appropriate application-agreement form to the designated Federal Reserve Bank. In executing the form, the agent certifies that, by duly executed resolution of its governing board or committee, it has been authorized to apply for the privilege of paying and processing securities in accordance with the provisions and conditions of this part (Circular No. 888, including all supplements, amendments, and revisions, and any related instructions). If the application is approved, the designated Federal Reserve Bank will issue a certificate of qualification. (b) Agents previously qualified. Paying agents qualified under previous revisions of this part are authorized to continue to act without requalification. They shall, however, be subject to the terms and conditions of the previously executed application and these regulations in the same manner and to the same extent as though they had requalified hereunder. (c) Termination of qualification. The Secretary of the Treasury reserves the right to withdraw the special endorsement authority from any paying agent at any time. Such authority will also be terminated at any time at the request of the paying agent. In either event, formal notice of the termination shall be given to the agent in writing by the designated Federal Reserve Bank. [53 FR 37519, Sept. 26, 1988, as amended at 59 FR 10539, Mar. 4, 1994] (a) Form of endorsement. Each security processed under the provisions of this part shall bear the following endorsement:
Request by owner and validity of transaction guaranteed in accordance with T.D. Circular No. 888, as revised. (Name, location, and paying agent code number assigned by designated Federal Reserve Bank.) This endorsement must be legibly impressed in black or other dark-colored ink on the back of the security in the space provided for the owner to request payment. (b) Endorsement stamps. Endorsement stamps may be obtained from the designated Federal Reserve Bank or, with its approval, purchased by the agent. Requests for stamps to be furnished or approved by the Bank must be made in writing by an officer of the paying agent. Stamps procured by an agent may not exceed a space bounded by 1 (c) Securities registered in coownership or beneficiary form. In the case of securities registered in coownership or beneficiary form, the agent shall indicate which person, whose name is inscribed thereon, requested payment or exchange by encircling in black or other dark-colored ink the name of that person (or both coowners, if the request is joint) in the inscription on the face of the securities. (d) Restrictions. Under no circumstances shall the special endorsement procedure be used to give effect to a transfer, hypothecation or pledge of a security, or to permit payment to any person other than the owner, coowner, or, where appropriate, beneficiary. Violation of these provisions will be cause for withdrawal of an agent's authority to process securities under the special endorsement procedure, and may involve additional penalties if the circumstances warrant such action. [53 FR 37519, Sept. 26, 1988, as amended at 59 FR 10539, Mar. 4, 1994] By the act of paying or presenting to a designated Federal Reserve Bank, for payment or exchange, a security on which it has affixed the special endorsement, a payment agent shall be deemed to have: (a) Unconditionally guaranteed to the United States the validity of the transaction, including the identification of the owner and the disposition of the proceeds or the new bonds, as the case may be, in accordance with the presenter's instruction; (b) Assumed complete and unconditional liability to the United States for any loss which may be incurred by the United States as a result of the transaction; and (c) Unconditionally agreed to make prompt reimbursement for the amount of any loss, upon request of the Department of the Treasury. [53 FR 37519, Sept. 26, 1988, as amended at 59 FR 10539, Mar. 4, 1994] (a) Form of authorization. The Treasury does not prescribe the form or type of instructions an agent must obtain from each owner, co-owner or beneficiary in order to use the special endorsement procedure. In the case of eligible Series E and EE savings bonds and savings notes presented for a redemption-exchange, the owner, coowner or beneficiary authorized to request the exchange (as specified in Circular No. 750, §321.8(b)), must sign the exchange subscription even though the eligible Series E and EE savings bonds and savings notes are specially endorsed. (b) Securities in coownership or beneficiary form. Securities registered in coownership or beneficiary form should be accepted for special endorsement only for immediate payment or exchange. Acceptance of bonds and notes for processing at some future date should be avoided as authority to utilize such endorsement generally expires upon the death of the owner or coowner on whose behalf securities were to be paid. Requests for payment of securities present by the surviving beneficiary must be supported by a certificate of death for the owner named thereon, as required by Circular No. 750, part 321 and the appendix to that part. (c) Record of authorization. Agents should maintain such records as may be necessary to establish the receipt of, and compliance with, instructions supporting the special endorsement. If the agent elects to make notations on the backs of the securities to serve as a record, the Bureau of the Public Debt will undertake to produce, on request, photocopies of such securities at any time up to ten years after the redemption date. However, the Bureau does not not assume responsibility for the adequacy of such notations, for the legibility of any photocopy, or for failure to produce a photocopy from its records. [53 FR 37519, Sept. 26, 1988, as amended at 63 FR 38044, July 14, 1998] (a) General authority. A qualified agent is authorized to affix the special endorsement to: (1) Savings bonds of Series A, B, C, D, E, EE, and I and savings notes to be redeemed for cash; and (2) Eligible savings bonds of Series E and EE and savings notes to be redeemed in exchange for Series HH bonds under the provisions of Circular No. 2–80 (31 CFR part 352). (b) Securities which may not be specially endorsed. The special endorsement procedure may not be used in any case in which payment or exchange: (1) Is requested by a parent on behalf of a minor child named on the security, or (2) Requires documentary evidence, under regulations contained in Circulars Nos. 530 and 3–80 (31 CFR parts 315 and 353, respectively), except as indicated in §330.5. (c) Securities owned by nonresident aliens. As securities owned by a nonresident alien individual, or a nonresident foreign corporation, partnership, or association, may be subject to the nonresident alien withholding tax, bonds and notes held or received by an agent for the account of such owners must be forwarded to the designated Federal Reserve Bank for redemption, even though the agent may specially endorse the securities. [53 FR 37519, Sept. 26, 1988, as amended at 59 FR 10539, Mar. 4, 1994; 63 FR 38044, July 14, 1998] Specially endorsed securities may be paid in cash or, if they are eligible Series E and EE savings bonds or savings notes, redeemed in exchange for Series HH bonds pursuant to the authority and subject, in all other respects, to the provisions of Circular No. 750, current revision (31 CFR part 321), its appendix, and any other instructions issued under its authority. Each specially endorsed bond or note paid by an agent must have the agent's payment stamp imprinted on its face and show the date and amount paid. Securities so paid should be combined with other securities paid under that Circular and presented for settlement through EZ CLEAR. Securities redeemed by an agent in an exchange must be presented for settlement through EZ CLEAR separately from, but at the same times as, an exchange subscription and any remittance are forwarded to the Fiscal Agency Department of the appropriate Federal Reserve Bank. [63 FR 38044, July 14, 1998] Specially endorsed securities which an agent is not authorized to redeem for cash or on exchange should be forwarded to the Fiscal Agency Department of the designated Federal Reserve Bank. The transmittals must be accompanied by appropriate instructions governing the transaction and the disposition of the redemption proceeds or new bonds, as the case may be. The securities must be kept separate from others the agent has paid and must be submitted in accordance with instructions issued by the Bank. [63 FR 38044, July 14, 1998] (a) The Federal Reserve Banks referred to below, as fiscal agents of the United States, are authorized to perform such services as may be requested by the Secretary of the Treasury, or his or her delegate, in connection with this part. (b) The following Federal Reserve Offices have been designated to provide savings bond services: [59 FR 10539, Mar. 4, 1994, as amended at 63 FR 38044, July 14, 1998] The provisions of this part shall be considered as amending and supplementing: Department of the Treasury Circulars Nos. 530, 653, and 750 (31 CFR parts 315, 316, and 321, respectively), and Department of the Treasury Circulars, Public Debt Series Nos. 1–80, 2–80, 3–80, 3–67, 1–98, and 2–98 (31 CFR parts 351, 352, 353, 342, 359, and 360 respectively), and any revisions thereof or amendments or supplements thereto, and those Circulars are hereby modified to the extent necessary to accord with the provisions of this part. [63 FR 38044, July 14, 1998] The Secretary of the Treasury may, at any time, or from time to time, revise, supplement, amend or withdraw, in whole or in part, the provisions of this part.
Title 31: Money and Finance: Treasury
PART 330—REGULATIONS GOVERNING PAYMENT UNDER SPECIAL ENDORSEMENT OF UNITED STATES SAVINGS BONDS AND UNITED STATES SAVINGS NOTES (FREEDOM SHARES)
Section Contents
§ 330.0 Purpose.
§ 330.1 Definition of terms.
§ 330.2 Qualification for use of special endorsement.
§ 330.3 Special endorsement of securities.
§ 330.4 Guaranty given to the United States.
§ 330.5 Evidence of owner's or beneficiary's authorization to affix special endorsement.
§ 330.6 Securities eligible for special endorsement.
§ 330.7 Payment or redemption—exchange by agent.
§ 330.8 Payment or redemption—exchange by Federal Reserve Bank.
§ 330.9 Fiscal agents.
§ 330.10 Modifications of other circulars.
§ 330.11 Supplements, amendments, or revisions.
§ 330.0 Purpose.
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§ 330.1 Definition of terms.
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§ 330.2 Qualification for use of special endorsement.
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§ 330.3 Special endorsement of securities.
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§ 330.4 Guaranty given to the United States.
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§ 330.5 Evidence of owner's or beneficiary's authorization to affix special endorsement.
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§ 330.6 Securities eligible for special endorsement.
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§ 330.7 Payment or redemption—exchange by agent.
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§ 330.8 Payment or redemption—exchange by Federal Reserve Bank.
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§ 330.9 Fiscal agents.
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------------------------------------------------------------------------ Reserve districts Geographic area Servicing office served served------------------------------------------------------------------------Federal Reserve Bank, Buffalo New York, Boston. CT, MA, ME, NH, Branch, P.O. Box 961, Buffalo, NY NJ (northern 14240. half), NY (City & State), RI, VT, Puerto Rico and Virgin Islands.Federal Reserve Bank, Pittsburgh Cleveland, DE, KY (eastern Branch, P.O. Box 867, Pittsburgh, Philadelphia. half), NJ PA 15230. (southern half), OH, PA, WV (northern panhandle).Federal Reserve Bank of Richmond, Richmond, Atlanta AL, DC, FL, LA P.O. Box 27622, Richmond, VA 23261. (southern half), MD, MS (southern half), NC, SC, TN (eastern half), VA, WV (except northern panhandle).Federal Reserve Bank of Minneapolis, IA, IL (northern Minneapolis, 90 Hennepin Avenue, Chicago. half), IN Minneapolis MN 55401. (northern half), MI, MN, MT, ND, SD, WI.Federal Reserve Bank of Kansas Dallas, San AK, AR, AZ, CA, City, 925 Grand Avenue, Kansas Francisco, CO, HI, ID, IL City, MO 64198. Kansas City, St. (southern Louis. half), IN (southern half), KS, KY (western half), LA (northern half), MO, MS (northern half), NE, NM, NV, OK, OR, TN (western half), TX, WA, WY, UT and GU.------------------------------------------------------------------------
§ 330.10 Modifications of other circulars.
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§ 330.11 Supplements, amendments, or revisions.
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