frbdallas circ 19410806a

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PAYMENT OR REDEMPTION OF BONDS AND OTHER TRANSFERABLE SECURITIES
OF THE UNITED STATES AT MATURITY, OR BEFORE MATURITY PURSUANT
TO A CALL FOR REDEMPTION IN ACCORDANCE WITH THEIR TERMS
IMPORTANT NOTE.—The provisions of this circular are of general application, and will specifically apply only
with respect to any transferable public debt securities of the United States that may mature in regular course, or
that may be included in an official call for redemption before maturity in accordance with their terms.
TREASURY DEPARTMENT,
Department Circular No. 666
— Office of the Secretary,
B u rea/of ‘the'Public Debt Washington, July 21,1941.
307.0 Scope of regulations.
The following rules and regulations are hereby prescribed to govern the payment or redemption of
transferable securities of the United States, as hereinafter defined. Any provisions of Department Cir
cular No. 300, dated July 31,1923, as supplemented and amended (31 CFR 306), in conflict with the pro
visions of these regulations are hereby superseded.*
Subpart a. General Provisions
307.1 Definitions.
(a) Securities.—The term “securities” shall include all bonds, notes, certificates of indebtedness,
and Treasury bills of the United States, and similar instruments heretofore or hereafter issued by the
Secretary of the Treasury as evidence of the public debt of the United States, and include those bearing
interest and those issued on a discount basis. The word “transferable” shall apply only to securities
which are transferable by delivery, or by assignment and delivery, as distinguished from those which by
their terms are not transferable, or are transferable only by operation of law, such as United States Sav
ings Bonds * 1 and Adjusted Service Bonds,2 which are not subject to the provisions of these regulations.
The word “securities” will hereinafter be used to refer to transferable securities as defined above, unless
otherwise indicated by the context.
(b) Payment.—As ordinarily used by the Treasury Department, the term “payment” refers to the
payment of securities at maturity, while the term “redemption” refers to payment before maturity pur
suant to a call for redemption in accordance with the terms of the securities. For the purposes of these
regulations, however, the terms are interchangeable, and the term “redemption” may refer to the dis
charge of a security by payment either at maturity, or before maturity pursuant to a call for redemption.*
307.2 Other securities affected.
These regulations so far as appropriate also apply to securities of the general governments and vari
ous municipal governments of Puerto Rico and the Philippine Islands, and to those securities issued by
wholly-owned corporations and other agencies of the Government for which the Treasury Department
acts as transfer agency.*
307.3 Payment or redemption.
Securities become due for payment at their maturity date, or at such earlier date as they may be
called for redemption in accordance with their terms, and the owner thereof, on presentation and surren
der of the securities on and after any such date in.accordance with the provisions of these regulations, is
entitled to receive payment of the principal amount, as hereinafter provided, except as otherwise provided
by law or regulations prescribed pursuant to law.*
* Secs. 307.0 to 307.22. inclusive, issued under the authority contained in: R. S. 161 ; 5 U. S. C. 22. Sec. 1, 40 Stat. 502, Sec. 1, 40 Stat. 844, 46 Stat.
1506, Sec. 14 (a) (1), 48 Stat. 343, Sec. 1, 49 Stat. 20, Sec. 1, 52 Stat. 447 ; 3 1 U. S. C. 752. Sec. 5 (a) Second Liberty Bond Act as added by 4G Stat. 19,
Secs. 2 and 3, 49 Stat. 20; 31 U. S. C. 754 and Supp. V, 754 (a). Sec. 10. 3 6 Stat. 817; 39 U. S. C. 760. Sec. 1, 40 Stat. 1309, Sec. 1401, 42 Stat. 321,
Sec. (a) (3), 48 Stat. 343, Sec. 4, 49 Stat. 20; 31 U. S. C. 753 (a) and Supp. Y, 753 (a). Sec. 14 (a) (4), 48 Stat. 343 ; 31 U. S. C. 754 (a).
1 Redemption of United States Savings Bonds is governed by Department Circular No. 530, Fourth Revision, as amended (31 CFR 315).
2 Redemption of 3 percent Adjusted Service Bonds of 1945 is governed by Department Circular No. 560, Revised, as amended (31 CFR 313).
(i)
16— 22602

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307.4 Interest.
Bonds, and other interest-bearing securities will cease to bear interest on the date of their maturity, 
unless they have been called for redemption before their maturity in accordance with their terms, in which 
case they will cease to bear interest on the date fixed for redemption in the call. No interest can accrue 
after a security has become due and payable, whether at maturity or by virtue of a call for redemption 
before maturity.*
Subpart B.—Bearer Securities
307.5 Presentation and surrender; payment.
Coupon bonds, notes, certificates of indebtedness, Treasury bills, and other bearer securities which 
have become due and payable, whether at maturity or by virtue of a call for redemption before maturity, 
are payable in due course to the person presenting and surrendering them for redemption, or to such per
son as he may designate. Such securities should be presented and surrendered, at the risk and expense 
of the owner, to any Federal Reserve Bank or Branch thereof, or to the Treasurer of the United States, 
Washington, D. C., accompanied by appropriate written advice. (See Form PD 1704 attached hereto.) 
All interest coupons due and payable on or before the date of maturity or date fixed in the call for earlier 
redemption, as the case may be, should be detached from the securities and collected in regular course. 
All coupons bearing dates subsequent to a redemption date should be left attached to the securities. Pay
ment of the principal will be made by check drawn to the order of the person presenting and surrendering 
the securities and, in the absence of other instructions, mailed to him at his address, as given in the 
accompanying advice. Upon appropriate instructions, the check will be drawm to the order of any other 
person, and mailed to any other address. A Federal Reserve Bank, upon appropriate request, may make 
payment to a member bank from which bearer securities are received by crediting the amount in the 
member bank’s account. The Secretary of the Treasury may require satisfactory proof of ownership of 
any bearer security, or any registered security assigned in blank, or otherwise so as to become, in effect, 
payable to bearer, which is presented and surrendered for redemption after the lapse of more than a 
reasonable period of time from the date on which it became due and payable, whether at maturity or 
earlier redemption date. In any case in which proof of ownership may be required the Secretary of the 
Treasury, in his discretion, may also require a bond of indemnity or such other security as he may deem 
necessary.*
307.6 Missing coupons.
If any coupons bearing dates subsequent to the redemption date of the securities are missing from 
bearer securities presented for redemption, the securities nevertheless will be redeemed, but the full face 
amount of any such missing coupons will be deducted from the payment to be made on account of such 
redemption, and any amounts so deducted will be held in the Treasury to provide for adjustments or 
refunds on account of such missing coupons as may subsequently be presented: Provided, hoivever, That 
if it is proved to the satisfaction of the Secretary of the Treasury that any such missing coupons (bearing 
dates after the redemption date) have been in fact destroyed the amount of such destroyed coupons will 
not be deducted from the payment on account of redemption, but in any such case the Secretary of the 
Treasury may require a bond of indemnity or a guarantee by an incorporated bank or trust company.*
Subpart C.—Registered Securities
307.7 Presentation and surrender; payment.
Registered securities which have become due and payable, whether at maturity or by virtue of a call 
for redemption before maturity, are payable in due course upon proper assignment by the registered 
payees or assignees thereof, or by their duly constituted representatives as hereinafter provided. After 
such assignment, the securities should be presented and surrendered, at the risk and expense of the owner, 
to any Federal Reserve Bank or Branch, or to the Treasury Department, Division of Loans and Currency, 
Washington, D. C., accompanied by appropriate written advice. (See Form PD 1705 attached hereto.) 
In all cases payment will be made by check drawn to the order of the person entitled, and, unless other-
* For statutory citations, see note to See. 307.0.
1G—22GQ2

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wise directed, the check will be mailed to the address given in the form of advice accompanying the 
securities surrendered. The transfer books for registered securities will close at the close of business one 
month prior to the date of maturity of such securities, or the date fixed in the call for redemption before 
maturity in accordance with their terms, and such securities when received after the close of the transfer 
books will be accepted for cash redemption only. Final interest due will be covered by payments to be 
made simultaneously with the payments on account of principal, in accordance with the assignments on 
the securities surrendered, irrespective of the dates of such assignments: Provided, hoivever, That in the 
case of a partial call of an outstanding series for redemption before maturity, final interest will be paid 
with principal only with respect to those securities included in the last portion called or which mature 
according to their terms.*
307.8 Assignments in general.
A registered security presented for redemption must be duly assigned by or in behalf of the regis
tered payee, and, if assigned to a specified person, it should be reassigned by such assignee and any subse
quent assignees. Except as otherwise provided herein, all assignments must conform with the general 
regulations of the Treasury Department governing assignments as set forth in Department Circular No. 
300, as supplemented and amended. (31 CFR 306.)*
307.9 Witnessing officers.
In addition to the officers generally authorized to witness assignments of registered securities 
(including the executive officers of banks and trust companies (and their branches) incorporated under 
Federal, State, or Territorial laws), assignments of registered securities by registered payees or assignees 
thereof for redemption for their own account may be witnessed by any of the following officers: (1) 
United States or Canal Zone postmasters or acting postmasters; (2) assistant postmasters, postal cash
iers, and money-order cashiers at United States post offices designated to receive Postal Savings deposits ; 
and (3) notaries public in the United States, its organized territories, or Puerto Rico; provided that the 
certificates of acknowledgment of any post-office official must bear a legible imprint of his office stamp, 
and that of a notary public must bear a legible impression of his official seal and should show the date on 
which his commission will expire.*
307.10 Form of assignment.
If payment is to be made to the registered payee, or to an assignee holding under proper assignment 
from the registered payee, the securities should be assigned by such payee or assignee, or by a duly 
constituted representative, to “The Secretary of the Treasury for redemption.” 3  If it is desired, for any 
reason, that payment be made to some other person, without intermediate assignment, the securities
should be assigned to “The Secretary of the Treasury for redemption for the account o f
----------------------
_____________________” (inserting the name and address of the person to whom payment is to be made),
bu
t assignments in this form must be completed before acknowledgment, and not left in blank. A repre
sentative or fiduciary may not assign for payment to himself individually, unless expressly authorized to 
do so by court order or by the instrument under which he is acting, but he may assign for payment to 
himself in his representative or fiduciary capacity. An assignment by a representative or fiduciary to 
“The Secretary of the Treasury for redemption” will be deemed to be an assignment for redemption for 
his account in his representative or fiduciary capacity.*
307.11 Assignments in blank.
Assignments in blank, or other assignments having similar effect, will be recognized in appropriate 
cases, but securities bearing such assignments will be paid to the person surrendering the securities or to 
such person as he may designate, since under such assignment the securities become in effect payable to 
bearer. Assignments in blank or other assignments having sim ilar effect should be avoided, if possible, 
in order not to lose the protection afforded by registration.* 8
* For statutory citations, sec note to Sec. 307.0.
8 In the case of securities other than United States securities, the name of the issuing agency, or the name of the proper officer thereof, should be 
substituted for the words, “ The Secretary of the Treasury” in assignments for redemption, as, for example, “ The Federal Farm Mortgage Corporation” , 
“ The Twelve Federal Land Banks” , or “ The Treasurer of Puerto Rico” . 16— 22602

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307.12 Detached assignments.
Unless otherwise directed by the Treasury Department or a Federal Reserve Bank in any particular
case, all assignments should be made on the securities themselves. If the form or forms on the back of a
security have been used or spoiled, and an additional assignment is necessary, a similar form may be
written or typed in any convenient space on the back of the security, or such form will be stamped thereon
by the Treasury Department or any Federal Reserve Bank, upon presentation for that purpose. If a
detached assignment is authorized in any particular case, an appropriate form will be supplied by the
Treasury Department or a Federal Reserve Bank.* *
307.13 Assignments by corporations, associations, etc.
A security registered in the name of, or assigned to, a corporation or unincorporated association will
ordinarily be redeemed for the account of such corporation or unincorporated association upon an appro
priate assignment for that purpose executed on behalf of the corporation or unincorporated association
by a duly authorized officer thereof, without proof of the officer’s authority. In all such cases the assign
ment should be to “The Secretary of the Treasury for redemption,” and payment will be made only by
check drawn to the order of the corporation or unincorporated association. If redemption for any other
account is desired, the assignment should be for redemption for account of the person or corporation
desired and must be supported by appropriate resolution or other authority.*
307.14 Coowners.
A security registered in the names of two or more persons in their own right in any authorized form
of registration will be redeemed without assignment by or in behalf of all the coowners, under the follow
ing circumstances and conditions:
(а) If the security is registered in the alternative, as, for example, “John Smith or Mrs. Mary Smith,” “John Smith
or Mrs. Mary Smith or the survivor,” or “John Smith and Mrs. Mary Smith, or either or them,” it may be assigned by any
one of the coowners for redemption for the account of any person or persons desired, and payment will be made accordingly,
irrespective of whether or not the Treasury Department has received notice of the death of any coowner who did not join
in the assignment, and irrespective of whether or not the form of registration is one in which the right of survivorship is
recognized. In any case coming under the provisions of this subsection an assignment to “The Secretary of the Treasury
for redemption” will be deemed to be an assignment for redemption for the account of the coowmer or coowners executing
the assignment.
(б) If the security is registered jointly, that is, if the names of the coowners are not connected by the word “or,” or
are not followed by the words “or either of them,” or words to that effect, as, for example, “John Smith and Mrs. Mary
Smith,” “John Smith, William Smith, and Mrs. Mary Smith, or the survivors or survivor,” or “John Smith and Mary Smith
as tenants in common,” it may, in the absence of notice of the death of any one of the coowners, be assigned by any one or
more of them for redemption for the account of all, and payment will be made accordingly, by check drawn substantially
as the security is inscribed. In any case coming under the provisions of this subsection an assignment to “The Secretary
of the Treasury for redemption” will be deemed to be an assignment for redemption for the account of all the coowners.
(c) If the security is registered in any form of registration in which the right of survivorship is recognized, as, for
example, “John Smith and Mrs. Mary Smith,” or “John Smith and Mrs. Mary Smith or the survivor,” and one of the co
owners is deceased, it wall be redeemed upon assignments by the survivor or survivors for the account of any person or
persons desired. The assignment must be supported by satisfactory proof of death and survivorship. In any case coming
under the provisions of this subsection an assignment to “The Secretary of the Treasury for redemption” will be deemed
to be an assignment for redemption for the account of the surviving coowner or coowners.
In all other cases assignments for redemption must be executed by or on behalf of all the coowners.*
307.15 Minors.
(a) A security registered in the name of a guardian, curator, or other duly appointed or qualified
representive for a minor, or in the name of a minor for whom such representative has been duly appointed
or is otherwise duly qualified, must be assigned by such representative, proof of whose appointment, qual
ification and incumbency must be furnished. Such proof may consist of a certificate under seal from the
court in which the appointment is made, dated not more than six months prior to the date of the assign
ment and containing a statement that at the date of certification the appointment is still in full force and
effect.
“ 1 6 — 2 2 6 0 2
* For statutory citations, see note to Sec. 807.0.

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(b) A security registered in the name of a natural guardian for a minor must be assigned by such 
natural guardian in the same manner as the security is inscribed unless the minor has attained his major
ity, in which case proof of that fact must be submitted and the assignment made by the minor himself.
(c) A security registered in the name of a minor for whose estate no representative has been 
appointed by a court of competent jurisdiction or is otherwise duly qualified, or a security registered in 
the name of a minor followed by that of his natural guardian, will be redeemed without assignment by a 
guardian or other duly constituted representative under the following circumstances and conditions:
(1) If the minor’s total holdings of registered securities of the issue to be redeemed do not exceed $250, the security 
will be redeemed upon assignment by the minor himself if he is of sufficient competency and understanding to sign his 
name to the assignment and comprehend the nature of the instrument; provided that, where the security is registered in 
the name of a minor followed by that of his natural guardian, such natural guardian must join in the assignment, if 
living and competent; provided further that, if the minor is not of sufficient competency and understanding to sign his name 
to the assignment and comprehend the nature of the instrument and the Treasury Department is furnished with satisfac
tory proof of that fact and of the identity of his natural guardian, the security may be redeemed upon assignment by his 
natural guardian alone. If the assignment is executed by the minor himself, the certificate of acknowledgment by the 
witnessing officer will be taken to be sufficient proof of the minor’s competency and understanding. Appropriate forms for 
execution by the natural guardian and the witnessing officer for the purpose of establishing the necessary facts in connec
tion with an assignment by the natural guardian alone will be furnished on request. In all cases arising under this 
paragraph, the assignment should be in favor of “The Secretary of the Treasury for redemption,” and payment will be made 
by check drawn to the order of the minor registered owner. If the assignment is executed by the natural guardian alone,
the name of the minor will be followed by the words, “under natural guardianship of ___   ”
(
inserting the name of the natural guardian).
(2) If it is established to the satisfaction of the Secretary of the Treasury that the entire personal estate of the minor 
does not exceed $500 in value and that the proceeds of the security are necessary and are to be used for the support or 
education of the minor, the security may be redeemed upon assignment in the name of the minor by his natural guardian 
for the account of any person or persons desired. In any case coming under the provisions of this paragraph an assign
ment to “The Secretary of the Treasury for redemption” will be deemed to be an assignment for redemption for the 
account of the minor under natural guardianship of his recognized natural guardian. Appropriate forms for the use of 
the natural guardian in making application for redemption and submitting evidence in support thereof will be furnished 
on request. (If the minor’s total holdings of registered securities of the issue to be redeemed do not exceed $250, the 
security may be redeemed in accordance with the provisions of paragraph (.1) above, without complying with the require
ments of this paragraph.)
(3) If the minor’s total holdings of registered securities presented for redemption exceed $250, but do not exceed $2,500, 
and the proceeds are not necessary for his support or education, redemption will be made for the purpose of having the pro
ceeds reinvested in other United States transferable securities, or securities guaranteed as to both principal and interest 
by the United States, in an equal face amount, to be registered in the name of the minor in a form of registration showing 
also the name of his natural guardian; provided, that in the event the proceeds of redemption of the matured securities, 
together with accrued interest thereon, if any, are insufficient to purchase an equal face amount of other securities, there 
will be collected from the natural guardian any additional am ount which may be necessary for the purchase of the securities 
designated in the application, or if the proceeds, including the final installment of interest and any uncollected interest 
on the securities presented for redemption, are sufficient to purchase additional securities in any authorized denomina
tions, such purchase will be required. In either case the securities must be assigned by the natural guardian supported 
by an application on Form PD 1365, and the minor should join in the assignment and application if he is of sufficient compe
tency and understanding to comprehend the nature of the transaction, in which case the certificate of acknowledgment by 
the witnessing officer will be accepted as proof of the minor’s competency and understanding; otherwise the Treasury 
Department will require satisfactory proof that the minor was not of sufficient competency and understanding for such 
purpose. The application on Form PD 1365 should be submitted with the securities to be redeemed through the Federal 
Reserve Bank of the district in which the minor resides, which bank will effectuate the redemption of the matured securities 
and the purchase of new ones.
(4) In all other cases appointment of a representative by a court of competent jurisdiction will be required.*
307.16 Incompetents.
A security registered in the name of a person who is under any legal disability other than minority, 
and for whose estate a guardian, conservator or other representative has been appointed by a court of 
competent jurisdiction, or a security registered in the name of such representative, must be assigned 
by the representative, proof of whose appointment and qualification must be furnished unless such repre
sentative is named in the registration of the bond. If a security is registered in the name of an incom-
* For statutory citations, see note to Sec. 307.0. 1G— 22302

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petent for whose estate no representative has been appointed or is otherwise legally qualified, redemption 
may, in the discretion of the Secretary of the Treasury, be made upon assignment by a person standing in 
the position of voluntary guardian for the purpose of having the proceeds invested in other transferable 
United States securities, or securities guaranteed both as to principal and interest by the United States in 
an equal face amount to be registered in the name of the person under disability: Provided, however, 
That redemption upon request of a voluntary guardian will not be made if the incompetent’s total hold
ings of the issue to be redeemed exceed $2,500, in which case a legal representative will be required. 
Appropriate forms for use in making application for redemption under these circumstances and condi
tions will be furnished upon request.*
307.17 Joint fiduciaries.
A security registered in the names of, or assignable by, two or more persons acting as joint fidu
ciaries, such as administrators, executors, trustees, or guardians, may be assigned by any one or more of 
the joint fiduciaries for redemption for the account of all, without the remainder joining in the assign
ment. The assignment should be to “The Secretary of the Treasury for redemption,” and payment will 
be made through a check drawn to the order of all the fiduciaries as such (substituting the names of 
fiduciaries who are now acting for the names of any fiduciaries who are no longer acting), followed by 
appropriate reference to the trust instrument or estate. If redemption is to be made for the account of 
any other person, the assignment should be for redemption for the account of such person and must be 
executed by all the fiduciaries then acting. Proof of the appointment and qualification of the fiduciaries 
will be required except in the case of securities registered in the names of those fiduciaries who execute 
the assignment.*
Subpart D.—Miscellaneous
307.18 Transportation of securities.
Securities presented for payment or redemption under these regulations must be delivered to a 
Federal Reserve Bank or Branch, or to the Treasury Department, Washington, D. C., at the expense 
and risk of the holder. Bearer securities and registered securities bearing assignments in blank, or 
other assignments having similar effect, should be forwarded by registered mail insured, or by express 
prepaid. Facilities for transportation of securities by registered mail insured may be arranged between 
incorporated banks and trust companies and the Federal Reserve Banks, and holders may take advan
tage of such arrangements when available, utilizing such incorporated banks and trust companies as 
their agents. Incorporated banks and trust companies are not agents of the United States under these 
regulations. Registered securities bearing assignments to “The Secretary of the Treasury for redemp
tion” or to “The Secretary of the Treasury for redemption for the account o f-----------------------------------”
(the name and address of the person to whom payment is to be made being inserted), may be forwarded 
by registered mail uninsured.*
307.19 Time and place of presentation.
In order to facilitate the redemption of securities when due, they should be presented and surren
dered in the manner herein prescribed well in advance of (but not exceeding 30 days prior to) the date 
they will become due and payable. This is particularly important with respect to registered securities, 
payment of which cannot be made until registration shall have been discharged at the Treasury Depart
ment. Redemption will be expedited if the securities are presented to Federal Reserve Banks or 
Branches, and not direct to the Treasury Department. Banking institutions generally will assist holders 
in securing the redemption of their securities when due.*
307.20 Optional exchange offering.
If and when other interest-bearing securities are offered, on an optional exchange basis, to the hold
ers of securities which may become due and payable either at maturity or before maturity by virtue of a 
call for redemption, owners of such securities desiring to take advantage of the offering should act
* For statutory citations, see note to Sec, 307.Q,
16—22602

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for Coupon Securities
Form PD 1704 (For registered securities use Form PD 1705)
Form of Advice to Accompany Securities in Coupon Form Presented for Redemption.
To the Federal Reserve Bank of_________________________
o
r
Treasurer of the United States, Washington, D. C.:
Pursuant to the provisions of Treasury Department Circular No. 666, dated July 21, 1941, the undersigned presents and
surrenders herewith for redemption on_______________________________________, $_____________________, face amount of
(
Insert title of loan)
in coupon form, with coupon dated______________________________, and all subsequent coupons, if any, attached, as follows:
N
umber of securities Denomination Serial numbers of securities Face amount
$50 $.......................................
100
500
1,000
5,000
10,000
100,000
Total ___________________________________________________________________________________________________________$-------------------------------------
and requests that remittance covering payment therefor be forwarded to the undersigned at the address indicated below.
Signature ____
N
ame________
A
ddress in full
(Please print)
Date
For Registered Securities
(For coupon securities use Form PD 1704)
Securities in Registered Form Presented for Redemption.
TREASURY DEPARTMENT
Bureau of the Public Debt
Form PI> 1705
Form of Advice to Accompany
To the Federal Reserve Bank of ___________________________
or
Tre
asury Department, Division of Loans and Currency, Washington, D. C.:
Pursuant to the provisions of Treasury Department Circular No. 666, dated July 21, 1941, the undersigned presents and
surrenders herewith for redemption on .........................................................................., $......................................, face amount of
in
registered form, inscribed in the name of
(Insert title of loan)
and duly assigned for redemption, as follows:
Number of securities Denomination Serial numbers of securities Face amount
$50
100
500
1,000
5,000
10,000
50,000
100,000
$________________________
Total .............................................. . __________________________________________________$-----------------------------------
and requests that remittance covering payment of principal and final interest be forwarded to the undersigned at the address
indicated below.
Signature
Name ................
A
ddress in full
(Please print)
Date
U . S. GOVERNMENT P R IN TIN G O F F IC E 1 0 -----2 2 0 0 2

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