FEDERAL RESERVE BANK
OF N EW YORK
Fiscal A gen t of the United States
("Circular No. 3 5 0 5 1
L October 24,194? J
RESTRICTIVE ENDORSEMENTS OF
UNITED STATES BEARER SECURITIES
To banks in the Second Federal Reserve District
eligible to follow the procedure prescribed in
Treasury Department Circular No. 858:
1. At the request of the United States Treasury Department, we are transmitting Treasury
Department Circular No. 853 containing “ Regulations <xoverning Restrictive Endorsements
of United States Bearer Securities” which become effective November 1 4 , 1 9 4 9 .
Procedure limited to banks
2. The procedure provided for in the regulations may be utilized only by “ banks’ \ as
defined therein, which include (a) incorporated banks doing a general commercial banking
business, (b) incorporated trust companies doing a general banking business or a general
trust business, and (c) savings banks, whether or not mutual. Any such bank may utilize the
procedure without making any advance application for authority to do so. I f any institu­
tion is in doubt as to whether it is a “ bank” as so defined, it should inquire of us as to whether
it may properly utilize the procedure.
Circumstances under which procedure may be used
3. Briefly, the new Treasury regulations provide that any bank (as defined therein) may
place restrictive endorsements on the face of United States bearer securities owned by it or by
its customers at the time of forwarding such securities to a Federal Reserve Bank or Branch
or to the Treasurer of the United States for payment, redemption, or optional exchange for a
new issue. The regulations do not authorize such endorsements for any other purpose or at
any other time. For example, they do not apply to securities submitted for wire transfer, for
registered exchange, for denominational exchange or for exchange for registered securities of
the same issue. Securities bearing restrictive endorsements placed thereon strictly in accord­
ance with the provisions of the regulations will thereafter be nonnegotiable and payment,
redemption, or exchange for new issues will be made only as provided in such endorsements.
This procedure will be advantageous to banks and their customers owning such securities since
relief in case of loss, theft, or destruction may be given as in the case of registered securities.
In many cases a distinct saving will be possible in transportation and insurance charges.
Strict compliance with regulations
4. I f you determine to take advantage of this procedure you should give very careful con­
sideration to the provisions of the regulations and carefully follow the procedure indicated
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therein, since, as provided in Section 328.7 of the regulations, relief in case the endorsed securi­
ties should be lost, stolen, or destroyed cannot be given except upon satisfactory proof that
they were endorsed and otherwise handled in strict conformity with the regulations. If a lost
or stolen security which is claimed to have been endorsed and for which relief has been granted,
is subsequently presented to the Treasury without bearing an endorsement and under circum­
stances that require its payment or redemption, the loss incurred will be charged to the bank
which failed or neglected to endorse the security properly.
Making o f endorsement
5. The restrictive endorsement authorized by the regulations is required to be imprinted
on the face of the security in such manner and by such means as will render the endorsement
substantially ineradicable. The AB A code number of the presenting bank must be perforated
immediately below the endorsement. Banks may use any suitable mechanical equipment for
imprinting such endorsements and making such perforations. A good quality black penetrat­
ing ink with a carbon pigment base must be used. While the use of plates is desirable, it is
not mandatory and endorsements imprinted by typewriter will not be rejected if phrased in
accordance with the regulations and made with a properly inked ribbon. The ordinary form
of stamp pad ink has been found susceptible to eradication and should not be used; accord­
ingly, if a rubber stamp is used, care should be taken to see that a carbon pigment ink is used
on the stamp pad. Information as to suitable equipment may be secured from us upon request.
Endorsement o f unmatured coupons
6. Unmatured coupons attached to securities restrictively endorsed under this procedure
should be cancelled by imprinting the prescribed endorsement in such manner that a substan­
tial portion of the endorsement appears on each unmatured coupon. The A B A code number
should not be perforated on coupons.
Photographic reproductions
7. It is highly desirable, where facilities are available, to make photographic reproductions
of the securities after the endorsements have been made. Prints of such photographic reproduc­
tions will be the best evidence that the endorsements were properly made in accordance with
the requirements. Where it is possible to obtain prompt photographic development, it is desir­
able to make a comparison of the films with the actual securities before shipment, in order to
guard against failure of equipment.
Listing endorsed securities
8. A sample of our Form No. Gr.B. 533, which may be used for listing securities restric­
tively endorsed, is also enclosed. Seasonable quantities of this form will be furnished upon
request. Its use is not obligatory. Any bank may prepare its own form for this purpose pro­
vided its form contains the information and certification called for in our Form No. Gr.B. 533
and it is executed in triplicate. If the securities are being presented to us for payment, they
should be accompanied by the customary request for payment form (our Form No. G.B. 311).
I f the securities are presented in exchange for other securities pursuant to an optional exchange
offering, the customary subscription form should be used in connection with the exchange.
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Relief in case o f loss
9. In case of loss, theft, or destruction after the endorsements have been imprinted,
whether such loss, theft, or destruction occurs in the bank or in the course of transmission by
registered mail or other authorized means to the Federal Reserve Bank or Branch, immedi­
ate notice should be given to the Federal Reserve Bank or Branch to which shipment was to
be made. The presenting bank will then be furnished with Treasury Department Form PD
2211 for the purpose of making application for relief. The expenses in connection with relief
will, in the main, consist only of those connected with the preparation of Form PD 2211, any
incidental notarial fees, postage, and the expense of a surety on a bond of indemnity, in case
such surety is required. If a bank is the claimant and the principal on the bond of indemnity,
ordinarily no surety will be required.
Shipment
10. Shipments are at the shipper’s risk and expense. Shipments may be made to this
Bank or its Buffalo Branch by messenger, armored car service, express or registered mail.
Shipments may not be made by express or mail to the Treasury Department, Washington, D. C.
Additional copies o f circulars
11. Additional copies of this circular and of Treasury Department Circular No. 853 will
be furnished upon request.
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Federal Reserve Bank of St. Louis
A
llan
S pkoul,
President.
RE G U L A T IO N S G O V E R N IN G R E S T R IC T IV E E N D O R S E M E N T S
O F U N ITED STA TE S B E A R E R SECU RITIES
1949
TREASURY DEPARTM ENT,
D epartm en t C ircu la r N o. 853
-------
O
f f ic e o f t h e
Secretary,
Washington, October 5 , 19U9.
B u rea ^ 'oT th e^ P u b lic Debt
T o F e d e r a l R e ser ve B a n k s , F is c a l A g e n t s
of t h e
U n it e d S t a t e s ,
and
Others Co n cer n ed :
On A u g u s t 3 1, 1949, a notice o f proposed rule m a k in g reg ard in g restrictive endorsem ents o f bearer
securities o f the U n ited States w as published in the F ed eral R eg ister (1 4 F . R . 5 3 9 7 ) .
P u rsu a n t to the auth ority o f Revised Statu tes section 161 (5 U . S. C. 2 2 ) and o f the Second Liberty
B ond A c t, as am ended, and a fte r consideration o f all such relevan t m a tter as w as presented by inter­
ested pa rties reg ard in g the proposal, the fo llo w in g regulation s are hereby prescribed, effective N ovem ber
14, 1 9 4 9 , to govern restrictive endorsem ents placed upon bearer securities o f the U nited States pre­
sented fo r paym ent or redem ption or pu rsuan t to an optional exchange o ffe r in g :
Table
of
Co n te n ts
Sec. 328.1
Scope o f regulations.
Sec. 3 2 8 .2
A u th orization fo r restrictive endorsem ent.
Sec. 32 8 .3
F orm o f endorsem ent.
Sec. 32 8 .4
R equirem en ts fo r endorsem ent.
s Sec. 32 8 .5
Preparation o f securities fo r shipm ent.
(a )
Coupons.
( b ) Mingling o f issues.
(c) Listing.
(d) Microfilming.
( e ) Supervision o f listing and verification.
Sec. 3 2 8 .6
Shipm ent o f securities.
Sec. 32 8 .7
L o ss, th e ft, or destruction o f securities bearin g restrictive endorsem ent.
Sec. 3 2 8 .8
M iscellaneous.
3 28.1
Scope o f regulation s.— T h ese regulation s are applicable only to bearer securities presented
by or th ro u gh banks fo r paym en t at m a tu rity , or fo r redem ption prior to m a tu rity , or in exchange fo r
a n y securities pursuant to an optional exchange offerin g.
T h e term “ bearer securities” as herein used
shall include T rea su ry bonds, notes, certificates o f indebtedness, and T rea su ry bills, issued b y th e U nited
S ta te s and payable to bearer.
T h e term “ ban ks” as herein used shall include incorporated banks (w hich
fo r th is purpose are defined as banks doing a general com m ercial banking b u s in e s s ), incorporated tru st
com panies (w h ich fo r th is purpose are defined as tr u st com panies doing either a general banking business
or a general tr u st b u s in e s s ), and sa vin gs banks (w h eth er or not m u tu a l).
T h ese regulations do not apply
to securities presented fo r any oth er transaction, nor do th ey apply to registered bonds assigned in blank
or so assign ed as to becom e, in effect, payable to bearer.
3 2 8 .2
(a )
A u th o rization fo r restrictiv e endorsem ent.— A t any tim e a fte r one calendar m onth prior to
m a tu r ity date, (b ) the date securities becom e payable pu rsu a n t to a call fo r redem ption, or (c ) the
date upon w hich an exch ange m a y be effected pursuant to an optional exchange offering, banks are author-
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(1 )
2
ized, under the conditions and in the m anner h erein after provided, to place restrictive endorsem ents
upon th e face o f bearer securities owned b y them selves or th eir custom ers fo r the purpose o f presentation
to Federal Reserve B anks or B ranches, or to the T reasu rer o f the U nited States, fo r paym ent, redem ption,
or optional exchange.
B earer securities bearing such restrictive endorsem ents w ill th ereafter be non-
negotiable and paym en t, redem ption, or exchange w ill be m ade only as provided in such endorsem ents.
Fed eral R eserve B an ks w ill in form eligible ban ks in their respective districts as to the procedure to
be follow ed under the auth ority gran ted by these regulations.
N o bank should im prin t restrictive
endorsem ents on securities or m ake shipm ents as provided herein until it has received such in form ation
fr o m the Fed eral R eserve B ank.
3 2 8 .3
F orm o f endorsem ent.— The endorsem ent should be in the follow ing f o r m :
F o r presen tation to the F ed eral R eserve Bank o f ____________________________________________, F isca l A g en t
o f the U nited States, fo r redem ption or in exch a n ge f o r securities o f a new issue, in accordance w ith w ritten
in stru ction s subm itted by ______________________________________ _________________________
(In s e rt nam e of p resenting b a n k )
A B A N o_______________________
The nam e o f the Federal R eserve B ank o f the district m u st appear on the plate or stam p used fo r the
im prin ting o f the endorsem ent and presentation to the appropriate B ranch o f the Federal R eserve Bank
nam ed will be considered as presentation to the bank.
W h e n securities are to be presented to the Treas­
urer o f the U n ited States, the words “ T h e T rea su rer o f the U nited S ta te s” should be used in lieu o f the
w ords “ T h e Federal R eserve B ank o f ______________________________________ , Fiscal A g e n t o f the U nited S ta te s.”
N o subsequent endorsem ent will be perm itted and no oth er fo rm o f endorsem ent m a y be m ade.
3 2 8 .4
R equirem en ts fo r endorsem ent.— The endorsem ent m u st be im printed in the left-h a n d portion
o f the fa ce o f each security w ith the first line th ereof parallel to the left edge o f the security and in such
m anner as to be clearly legible and in such position th a t it will not obscure the serial num ber, series desig­
nation, or oth er id en tify in g data, and th at it will cover the sm allest possible portion o f the tex t on the
face o f th e security being endorsed.
The dim ensions o f the endorsem ent should approxim ate fo u r inches
in w idth and one and on e-h alf inches in h eigh t, and m u st be im printed b y stam p or plate o f such character,
w ith a carbon pigm en t ink, and by such m eans, as w ill render the endorsem ent su bstan tially ineradicable.
Im m ediately below and as a part o f the endorsem ent the A B A code num ber o f the presen tin g bank
m u st be perforated in figures approxim ately on e-h alf inch in h eigh t.
T h e perforation should be placed
as n early as possible beneath the endorsem ent bu t w ith ou t obliterating any o f the above-m entioned
id en tify in g data.
3 2 8 .5
Preparation o f securities fo r sh ip m en t.— (a)
Coupons.— A ll m atured
coupons,
including
(excep t w h ere oth erw ise specifically provided in an announcem ent o f an optional exch an ge) all coupons
w hich w ill m a tu re on or before the date o f redem ption or exchange, should be detached fr o m securities
upon w hich restrictiv e endorsem ents are to be im p rin ted , and all coupons m a tu rin g subsequent to the date
o f redem ption or exchange should be left attached and appropriately cancelled in accordance w ith the
in stru ction s given b y the Fed eral R eserve B an ks.
I f a n y such subsequently dated coupons are m issin g,
deduction o f the fa ce am ount o f such m issin g coupons will be m ade in cases o f redem ption and in cases
o f optional exch ange rem ittan ce equal to the fa ce am ou n t o f the m issin g coupons m u st accom pany the
securities.
(b)
Mingling o f issues .— Securities o f d ifferen t issues m a y be included in a single shipm ent b
they should be sorted by issue, denom ination, and serial num ber.
W h en securities to be redeem ed are
included in th e sam e shipm ent as securities to be presented in p aym en t fo r an exchange subscription, the
securities to be redeem ed should be clearly seg rega ted fr o m those to be exchanged, and i f a n y securities
offered are available in registered fo rm and reg istra tio n is desired, com plete reg istration instructions
should be giv en on the list h erein a fter required.
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(c) Listing .— A f t e r the endorsem ents have been im printed and the securities segregated, as required
by subsection ( b ) h ereof, a list o f all securities o f each issue included in the shipm ent should be prepared
in triplicate.
The list should be prepared in the order in w hich the securities are to be packaged and dis­
patched and should show in the case o f each issue the date o f the n ext m a tu rin g coupon, sp ecify in g either
th at all subsequent coupons are attached or indicating which coupons, if any, are m issin g and w hether
or not rem ittance fo r the value o f any m issin g coupons accom panies the securities.
A p p rop riate fo rm s
fo r the preparation o f such lists m a y be procured fr o m the Federal Reserve B anks o f the respective dis­
tricts.
The lists m u st be verified a g a in st the securities.
( d ) Microfilming .— W h ere adequate fa cilities fo r m a k in g m icrofilm s or other photographic repro­
ductions o f endorsed securities are available, banks are urged to m ake use th ereof fo r their own protec­
tion and fo r th at o f their custom ers.
R elief in case o f loss, th eft, or destruction o f securities cannot be
given except upon sa tisfa cto ry p ro of th at such securities w ere endorsed as provided in these regulations.
M icrofilm s or other photographic reproductions o f securities b earin g such endorsem ents wall constitute
the best evidence that such endorsem ents w ere m ade p rior to loss, th eft, or destruction, and w ill m ate­
rially expedite any application fo r relief.
N o p rin ts m a y be m ade fr o m the film, except as provided in
section 3 2 8 .7 o f these regulations, or w hen oth erw ise specifically authorized by a Federal R eserve B ank
or by the T rea su ry D epartm en t.
( e ) Supervision o f listing and verification .— In all cases the listin g and verification, as well as the
checking o f any photographic reproductions, m u st be m ade under the supervision o f a responsible officer
o f the bank concerned, who w ill sign all three copies o f the list.
The officer v e r ify in g and sign in g the list
m u st also supervise the p a ck a gin g and sh ipm en t o f the securities.
The original and triplicate copies of
the list and the photographic records, if m ade, should be retained by the bank until the transaction is com ­
pleted by receipt o f paym en t or receipt o f the securities issued in exchange.
3 28.6
Shipm ent o f securities.— Securities bearin g restrictive endorsem ents and prepared fo r ship­
m ent as provided herein, under th e term s o f these regulations, are no longer securities payable to bearer
and m a y be forw arded b y m essenger, arm ored car service, express, or b y registered m ail, accompanied in
each case by the duplicate copy o f the list required in th e preceding section.
P ostm asters under existin g
P ostal Law s and R egu lation s and supplem ental instru ction s are authorized to accept such securities fo r
sh ipm en t b y registered m ail upon paym en t o f postage at the first-class rate at the declared value o f the
know n or estim ated cost o f duplication, including the cost o f an indem nity bond i f req u ired ; provided, that
a surcharge shall be paid in any case fo r the cost o f duplication in excess o f the m a x im u m am ount o f
indem n ity payable fo r the registration .
cancelled securities.
Such securities m a y not be shipped as cancelled vouchers or as
Sh ipm en ts m a y be m ade only to the F ederal R eserve B an k o f the d istrict in which
the p resen tin g bank is located or the appropriate B ran ch o f such F ederal R eserve B an k, and w ill be at
the risk and expense o f the shipper.
N o sh ipm en t to a n y other F ederal R eserve B an k is authorized and
no sh ipm en t by m ail or express m a y be m ade to the T r ea su ry D epartm en t, W a sh in g to n , D . C . ; delivery
to the T re a su ry D ep a rtm en t m a y be m ade by m essen g er or arm ored car.
3 2 8 .7
L o ss, th e ft, or destruction o f securities bearin g restrictive endorsem ent.— In the case o f loss,
th e ft, or destruction o f securities b ea rin g restrictive endorsem ents m ade stric tly in accordance w ith the
provision s o f these regulation s, re lie f w ill be given as provided by U . S. C. 1946 E d ., T itle 31, Sec. 738a as
applied to securities n ot payable to bearer.
the applicable provision s o f the la w .)
(S e e A p p e n d ix A fo r m ore detailed in form ation reg ard in g
A p p lica tio n s fo r relief accom panied by the necessary su pportin g
evidence and by the origin al o f the list required by section 3 2 8 .5 (e) h ereo f w ill be acted upon prom ptly
by the D ep a rtm en t.
A p p lication should be m ade on F o r m P D 2 2 1 1 , should g ive fu ll details so fa r as
know n o f the loss, th e ft, or destruction, and should be accom panied by an affidavit fr o m the officer who
su pervised the listin g , verification, and sh ipm en t o f the securities and w h o signed the list, a copy o f
w h ich accom panied the sh ipm en t.
T h is affidavit should sh ow th a t to the officer’s personal know ledge
each secu rity claim ed to have been lost, stolen, or destroyed bore the restrictiv e endorsem ent in the fo r m
prescribed in section 3 2 8 .3 h ereof, fu lly com pleted, and th a t shipm ent w as actually m ade under his direc­
tion, and should describe the m eth od o f shipm ent.
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I f ph otograph ic records w ere m ade, p rin ts th ereof
1 6 -5 9 8 8 7 -1
4
should also accom pany the claim and be verified as records o f the securities claim ed to have been lost,
stolen, or destroyed.
A bond o f indem nity w ith su rety sa tisfa cto ry to the Secretary o f the T rea su ry fo r
the fu ll value o f the securities claim ed to have been lost, stolen, or destroyed, including the value o f any
interest payable thereon, w ill be required fr o m the ow n er o f the securities.
A bank will be considered as
the ow ner, i f it so desires, fo r securities handled by the bank on beh a lf o f its custom ers.
I f such bond
is executed by a bank or other corporation, the execution m u st be authorized by general or special reso­
lution o f the board o f directors or other body exercisin g sim ila r fu n ction s, or o f som e other board or com ­
m ittee authorized to act under the bylaw s on b eh a lf o f such bank or corporation.
will be required on a bond executed b y the presenting bank.
O rdin arily no surety
The Secretary o f the Treasu ry reserves the
righ t, h ow ever, to require a su rety in a n y case in which he considers such action n ecessary fo r the pro­
tection o f the U n ited States.
3 2 8 .8
M iscellaneous.— A n y provisions o f D epartm en t Circular N o. 3 00, dated July 3 1, 1923, as su
plem ented and am ended (3 1 C F R 3 0 6 ) and o f D ep a rtm en t C ircular N o . 666, dated July 21, 1941
C F R 3 0 7 ) , w hich are in conflict w ith the provisions o f these regulations are hereby superseded.
(31
The
S ecreta ry o f the T rea su ry reserves the rig h t at a n y tim e to am end, supplem ent, or w ith d ra w a n y or all
o f the p rovision s o f these regulations.
JO H N W . S N Y D E R ,
Secretary of the Treasury.
A p p e n d ix
A
T h e sta tu to ry au th ority fo r relief on account o f loss, th e ft, or destruction o f U nited States securities
is contained in 31 U . S. C. 1946 E d ., Sec. 738a , and reads as fo llo w s:
In terest-b ea rin g s e cu rity d estroyed , m utilated, d efa ced , lost o r stolen — (a ) Issu an ce o f d u p lica te; red em p­
tion o f m a tu red secu rity.
W h en ev er it is clea rly proved to the sa tisfa ction o f the S ecreta ry o f the T rea su ry —
(1 ) T h a t a n y in terest-b ea rin g secu rity o f the U n ited States, identified b y num ber and description, payable
to b e a re r o r so assigned as to becom e, in effect, pa ya b le to bearer, has been w h olly or p a rtly destroyed, or so
m u tilated o r d e fa ce d as to im p a ir its valu e to the ow n er, or has been lost o r stolen under such circum stances, and
such a period o f tim e h av in g elapsed a fte r it has m a tu red or has becom e redeem able pu rsuan t to a call fo r redem p­
tion, as in the ju d g m en t o f the S ecreta ry w ould in dicate th a t it has been destroyed or irretriev a b ly lost, is n ot held
by a n y person as his ow n p r op erty and w ill n ever becom e the basis o f a valid cla im again st the U nited S ta tes; or
(2 ) T h a t a n y in terest-b ea rin g secu rity o f the U n ited States, identified b y n um ber and description, w hich is
n ot pa ya b le to b ea rer and w h ich has n ot been so assigned as to becom e, in effect, payable to bearer, has been lost or
stolen, so th a t it is not held b y any person as his ow n prop erty , or has been w h olly or p a rtly destroyed, or so
m u tilated o r defa ced as to im p a ir its valu e to the o w n e r;
the S ecreta ry, u pon receip t and a p p rova l b y him o f a b on d o f indem nity, i f and as requ ired b y subsection ( b )
h ere o f, shall, in the case o f a secu rity w hich has n ot m atured or becom e redeem able pu rsuan t to a call f o r redem p­
tion, issue a substitu te m arked “ du p licate” and sh ow in g the serial num ber o f the orig in a l se cu rity ; or shall, in the
case o f a secu rity w hich has m atured or becom e redeem able pu rsuan t to a ca ll f o r redem ption, m ake paym ent
th e re o f to the ow n er, w ith such in terest on ly as w ou ld have been paid had the secu rity been presented w hen it
becam e due and p a y a b le: P rovid ed , T h at in the case o f an interim certificate re lie f m ay be given by the issue o f
a defin itive se cu rity, w hether b e fo re or a ft e r m a tu rity, ra th er than b y the issue o f a substitute or b y p a y m e n t: A n d
p ro vid ed fu r th e r , T h a t no paym ent shall be made on a ccou n t o f in terest cou pon s claim ed to have been attached to
such o rig in a l secu rity unless the S ecreta ry is satisfied th at such coupons have n ot been paid, and a re in fa c t
d estroyed o r can n ever becom e the basis o f a va lid cla im a ga in st the U nited States.
( 6 ) B on d o f I n d em n ity ; excep tio n s.
E x ce p t as p rovided in p a ra g ra p h s ( l ) - ( 4 ) o f th is subsection, the ow n er o f such lost, stolen, destroyed,
m u tilated, o r defa ced secu rity shall file w ith the S ecreta ry o f the T rea su ry a bond, to in d em n ify the U nited States,
in such fo r m and am ount and w ith such surety, sureties, or secu rity as the S ecreta ry o f the T rea su ry shall
r e q u ir e : P rovid ed , Th at in case o f secu rities pa ya b le to b ea rer o r so assigned as to becom e, in effect, p ayable to
b e a rer, the d estru ction o f w h ich has n ot been p roved, a corp ora te su rety, qualified u nder sections 6 -1 3 o f T itle 6,
shall be req u ired on such bond o f in d em n ity: A n d p rovid ed fu r th e r , T h a t a bond o f in dem n ity shall n ot be requ ired
in a n y o f the fo llo w in g classes o f cases, excep t as p ro v id e d in p a ra g ra p h ( 4 ) o f this su b section :
(1 )
I f the S ecreta ry o f the T re a s u ry is satisfied th a t the loss, th eft, destruction , m u tilation , or defacem en t,
as th e case m a y be, occu rred w ith ou t fa u lt o f the ow n er and w hile the secu rity w as in the cu stody or the con trol
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lft — 5 8 8 8 7 -1
5
o f the U n ited States (n o t in clu d in g the Postal S ervice w hen a ctin g solely in its ca p a city as the public ca rrier o f
the m a ils ), o r o f a person thereunto du ly authorized as la w fu l agen t o f the U nited States, or w hile it was in the
course o f shipm ent effected pu rsuan t to and in accord an ce w ith the regu lation s issued under section 134 o f T itle 5 ;
(2 ) I f su bstan tially the en tire secu rity is presented and surrendered b y the ow ner and the S ecreta ry o f the
T reasu ry is satisfied as to the iden tity o f the secu rity presen ted and th at any m issin g portion s are not sufficient
to fo rm the basis o f a v a lid claim a ga in st the U n ited S ta tes;
( 3 ) I f the lost, stolen, destroyed, m utilated, or defa ced secu rity is one which by the provisions o f law or
b y the term s o f its issue is tra n sfera b le on ly b y operation o f la w ;
(4 ) I f the owTier o r h older is the U n ited States or an officer or em ployee th ereof in his official capa city, a
State, the D istrict o f Colum bia, a T e r rito ry or possession o f the U nited States, in clu d in g the Com m onwealth o f
the P h ilip pin e Islands, a m unicipal corp ora tion o r p olitica l subdivision o f a n y o f the fo re g o in g , a corp ora tion the
w hole o f w hose ca pita l is ow ned b y the U nited States, a fo r e ig n governm ent, or a F ed eral Reserve b a n k :
P rovid ed , h ow ever, T h a t in any o f the fo re g o in g classes o f cases the S ecreta ry o f the T reasu ry m ay require a
bond o f in dem n ity i f he deems it essential to the pu blic interest.
( c ) D efinitions.
The term “ in terest-b ea rin g secu rity o f the U n ited S ta te s ” o r “ secu rity ” , w h erever used in this section, means
any direct obliga tion o f the U n ited States issued p u rsu a n t to law f o r valu able con sideration and w hich b y its
term s b ears interest, or is issued on a discou nt basis, an d includes (b u t is n ot lim ited t o ) bonds, notes, certifi­
cates o f indebtedness, and T rea su ry bills, and in terim certificates issued f o r any such security, and also means
a n y bond issued under section 780 o f T itle 26.
(d ) R u les and regu la tion s.
T he S ecreta ry o f the T rea su ry shall have the p ow e r to m ake such rules and regu lation s as he m ay deem
n ecessa ry f o r the adm inistration o f this section.
U n ited S ta tes securities payable to bearer, w hich have been restrictively endorsed and shipped to
Fed eral R eserve B an ks or B ran ch es, or to the T re a su ry D epartm en t, W a sh in g to n , D . C., all in strict
accordance w ith the provisions o f the regulation s, have been m ade nonnegotiable and relief in case o f
th eir loss, th e ft, m u tilation , or destruction m a y be given under the provisions o f paragraph (2 ) o f sub­
section (a ) o f the above statute.
In case a bank does not receive w ithin a reasonable tim e paym en t or securities offered in exchange
fo r securities surrendered prom pt notice should be given the agency to w hich the securities w ere fo r ­
w arded.
I f paym en t or new securities are received a fte r such notice has been given , the agency to which
th e securities w ere forw arded should be im m ediately notified.
A p p lic a tio n fo r relief should be m ade on F o rm P D 2 2 1 1 , copies o f w hich m a y be secured fr o m the
F ed eral R eserve B an ks o f the variou s districts or fr o m the T rea su ry D epartm en t, W a sh in g to n , D . C.
If
the bank is the actual ow ner o f the securities or w ish es to be considered as the ow ner, as provided in
section 3 2 8 .7 o f the regulation s, the application m a y be executed in the nam e o f the bank by an officer
th ereo f.
I f n ot executed by the officer w ho su pervised the endorsem ent and sh ipm en t, it m u st be accom ­
panied b y an affidavit fr o m such officer.
I f the ban k is not the ow n er and does not elect to be considered
the ow ner, the application m u st be signed b y the ow n er o f the securities fo r w hich r elief is sough t and
m u st be accom panied b y an affidavit fr o m the officer o f the bank w ho supervised the preparation and
sh ip m en t.
T h e o rigin al o f the list m ade by the bank m u st also be subm itted and i f photographic repro­
ductions w ere m ade p rin ts th erefro m should accom pany the application as provided in section 3 2 8 .7 .
If
the loss, th e ft, m u tilation , or destruction occurred in the m a il, a postal inspector’s report ord in arily w ill be
required.
F o rm P D 2211 and the accom panying evidence m u st be su bm itted to the agen cy to w hich th e securi­
tie s w ere fo rw a rd ed and w ill be expedited both by th a t agen cy and by the D ep a rtm en t at W a sh in g to n ,
and, i f approved, a bond o f indem n ity (w h ich is required b y the statu te) w ill be fo rw a rd ed fo r execu­
tion ; i f the bond o f indem n ity is executed by the p resen tin g bank as ow n er, ord in arily no su rety w ill
be required.
H ow ever, the S ecreta ry reserves the r ig h t to require su rety in a n y p articu lar case.
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U . S. GOVESNMENT H U N T IN G O F F IC E
16--- 5 9 8 8 7 - 1
Form No. G.B. 533
LIST OF U. S. GOVERNMENT SECURITIES PREPARED FOR SHIPMENT IN ACCORDANCE WITH
SEC. 328.5 OF TREASURY DEPARTMENT CIRCULAR NO. 853.
(Prepare in triplicate; use a separate sheet for each issue and each transaction.)
(Date)
F ed er a l R eser ve B a n k of N e w Y o r k ,
Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 45, N. Y .
Attention Government Bond Department— 2nd Floor
Pursuant to Treasury Department Circular No.
853, we are shipping to you herewith the following described
restrietively endorsed United States Government securities for the purpose indicated below:
Title of Issue .............................................................................................................................................................................................................
Aggregate par value . .
$ .........................................................
□
For payment or redemption
□
For exchange
Nature of transaction*
The coupon m a tu rin g ................................................................... f, and all subsequent coupons are attached to each security.
(date)
NOTE: Please list securities by denominations and in numerical sequence with respect to each denomination.
D e n o m in a t io n
S e r ia l N u m b e r s
This list has been prepared and checked, and the
D e n o m in a t io n
S e r ia l N u m b e r s
(FiU » all required spaces before signing)
securities listed have been packaged and will be shipped,
under my supervision.
(Name of bank)
(Signature of officer)
(Title of officer)
(Street address)
(City, P.O. No., and State)
* The custom ary form o f request fo r paym ent or redem ption (Form G.B. 3 1 1 ) o r the custom ary exchange subscription form , as the case
may be, should accom pan y the securities.
t W hen no cou pon s are attached to the securities, the w ord "N O N E ” should be inserted in this space. If any unmatured cou pon s are
missing, detailed inform ation should be given on the reverse o f this form ; if the securities are presented fo r paym ent, the am ount o f
the missing cou pon s will be deducted from the paym ent; if the securities are presented fo r exchange, the shipping bank should remit
herewith fo r the am ount o f the missing cou pon s, o r (in the case o f a m em ber bank ) authorize the charging o f its reserve account
therefor.
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(G .B . 533—
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