PART 316—OFFERING OF UNITED STATES SAVINGS BONDS, SERIES E Authority: 31 U.S.C. 3105 and 5 U.S.C. 301. Source: 57 FR 14276, Apr. 17, 1992, unless otherwise noted. § 316.1 Offering of bonds. The Secretary of the Treasury offered for sale to the people of the United States, United States Savings Bonds of Series E, hereinafter generally referred to as “Series E bonds” or “bonds”. This offer was terminated as of December 31, 1979, except that, as to bonds purchased under payroll savings plans and employee plans, the offer was terminated as of June 30, 1980. § 316.2 Description of bonds. (a) General. (b) Denominations and prices. Denomination Issue price $25 $18.75 50 37.50 75 56.25 100 75.00 200 150.00 500 375.00 1,000 750.00 10,000 7,500.00 100,000 1 75,000.00 1 (c) Inscription and issue. (1) Inscribed on the face of each bond the name, social security number and address of the owner, and the name of the beneficiary, if any, or the name, social security number and address of the first-named coowner and the name of the other coowner (the inscription of the social security number was required for bonds issued on or after January 1, 1974); (2) Entered the issue date in the upper right-hand portion of the bond; and (3) Imprinted the agent's validation indicia in the lower right-hand portion to show the date the bond was actually inscribed. A bond was valid only if an authorized issuing agent received payment therefor and duly inscribed, dated and imprinted validation indicia on the bond. (d) Term. (e) Investment yield (interest). [57 FR 14276, Apr. 17, 1992, as amended at 70 FR 14941, Mar. 23, 2005] § 316.3 Governing regulations. (a) The regulations in 31 CFR part 315 apply to definitive Series E bonds that have not been converted to book-entry bonds. (b) The regulations in 31 CFR part 363 apply to definitive Series E bonds that have been converted to book-entry bonds through New Treasury Direct. [70 FR 14941, Mar. 23, 2005] § 316.4 Registration. Series E bonds were permitted to be registered as set forth in subpart B of 31 CFR part 315, also published as Department of the Treasury Circular No. 530, current revision. § 316.5 Limitation on holdings. (a) General limitation. (b) Special limitation for employee savings plans. (1) Definition of plan and conditions of eligibility. (ii) The entire assets thereof must have been credited to the individual accounts of participating employees and the assets so credited could be distributed only to the employees or their beneficiaries, except as otherwise provided herein. (iii) Series E bonds were to be purchased only with assets credited to the accounts of participating employees and only if the amount taken from any account at any time for that purpose was equal to the purchase price of a bond or bonds in an authorized denomination or denominations, and shares therein were credited to the accounts of the individuals from whom the purchase price thereof was derived, in amounts corresponding with such shares. For example, if $37.50 credited to the account of John Jones was commingled with funds credited to the accounts of other employees to make a total of $7,500, with which a Series E bond in the denomination of $10,000 (face amount) was purchased in December 1978 and registered in the name and title of the trustee, the plan must have provided, in effect, that John Jones' account would be credited to show that he was the owner of a Series E bond in the denomination of $50 (face amount) bearing the issue date of December 1, 1978. (iv) Each participating employee has an irrevocable right at any time to demand and receive from the trustee all assets credited to his or her account or the value thereof, if he or she so prefers, without regard to any condition other than the loss or suspension of the privilege of participating further in the plan. However, a plan was not deemed to be inconsistent herewith if it limited or modified the exercise of any such right by providing that the employer's contribution did not vest absolutely until the employee had made contributions under the plan in each of not more than 60 calendar months succeeding the month for which the employer's contribution was made. (v) Upon the death of an employee, his or her beneficiary has the absolute and unconditional right to demand and receive from the trustee all assets credited to the account of the employee, or the value thereof, if he or she so prefers. (vi) When settlement is made with an employee, or his or her beneficiary, with respect to any bond registered in the name and title of the trustee in which the employee has a share (see paragraphs (b)(1) (ii) and (iii) of this section), the bond must be submitted for redemption or reissue to the extent of such share. If an employee or his or her beneficiary is to receive distribution in kind, bonds bearing the same issue dates as those credited to the employee's account will be reissued in the name of the distributee to the extent to which he or she is entitled, in any authorized form of registration, upon the request and certification of the trustee, in accordance with the governing reguations. (2) Definitions of terms used in paragraph (b)—related provisions. savings plan (ii) The term assets (iii) The term beneficiary distributee § 316.6 Purchase of bonds. Series E bonds were purchased, as follows: (a) Over-the-counter for cash Bonds registered in names of natural persons in their own right only. (2) Bonds registered in names of trustees of employee savings plans. (3) Bonds registered in all authorized forms. (b) On mail order. (c) Savings stamps. [57 FR 14276, Apr. 17, 1992, as amended at 59 FR 10535, Mar. 4, 1994] § 316.7 Delivery of bonds. Issuing agents were authorized to deliver Series E bonds either over-the-counter in person, or by mail at the risk and expense of the United States, to the address given by the purchaser, but only within the United States, its territories and possessions, and the Commonwealth of Puerto Rico. No mail deliveries elsewhere were made. If purchased by citizens of the United States temporarily residing abroad, the bonds were delivered to such address in the United States as the purchaser directed. § 316.8 Extended terms and yields for outstanding bonds. (a) General. extended maturity period, second extended maturity period, third extended maturity period fourth extended maturity period, (b) Extended maturity periods Bonds issued from May 1, 1941 through April 1, 1952. Issue dates—1st day of Life of bonds yrs. Final maturity dates—1st day of May 1941-Apr. 1952 40 May 1981-Apr. 1992. (2) Bonds issued from May 1, 1952 through November 1, 1965. Issue dates—lst day of Previous maturities Previous maturity dates—1st day of yrs. mos. May 1952-Jan. 1957 39 8 Jan. 1992-Sept. 1996. Feb. 1957-May 1959 38 11 Jan. 1996-Apr. 1998. Jun. 1959-Nov. 1965 37 9 Mar. 1997-Aug. 2003. Issue dates—1st day of Additional extended maturity period Life of bonds—yrs. yrs. mos. May 1952-Jan. 1957 4 40 Feb. 1957-May 1959 1 1 40 Jun. 1959-Nov. 1965 2 3 40. Issue dates—1st day of Final maturity dates—1st day of May 1952-Jan. 1957 May 1992-Jan. 1997. Feb. 1957-May 1959 Feb. 1997-May 1999. Jun. 1959-Nov. 1965 June. 1999-Nov. 2005. (3) Bonds issued from December 1, 1965 through June 1, 1980. Issue dates—1st day of Previous maturities Previous maturity dates—1st day of yrs. mos. Dec. 1965-May 1969 27 Dec. 1992-May 1996. June. 1969-Nov. 1973 25 10 Apr. 1995-Sept. 1999. Dec. 1973-Jun. 1980 25 Dec. 1998-Jun. 2005. Issue dates—1st day of Additional extended maturity period Life of bonds—yrs. yrs. mos. Dec. 1965-May 1969 3 30 Jun. 1969-Nov. 1973 4 2 30 Dec. 1973-Jun. 1980 5 30 Issue dates—1st day of Final maturity dates—1st day of Dec. 1965-May 1969 Dec. 1995-May 1999. Jun. 1969-Nov. 1973 Jun. 1999-Nov. 2003. Dec. 1973-Jun. 1980 Dec. 2003-Jun. 2010. (c) Guaranteed minimum investment yield General. (i) For Series E bonds that were in original or extended maturity periods prior to November 1, 1982, the guaranteed minimum investment yield was 8.5 percent per annum, compounded semiannually, effective for the period from the first semiannual interest accrual date on or after May 1, 1981, through the end of such periods, unless the bonds reached final maturity before November 1, 1981. 3 3 4 5 (ii) For Series E bonds that entered extended maturity periods during the period of November 1, 1982, through October 1, 1986, the guaranteed minimum yield was or is 7.5 percent per annum, compounded semiannually, for such periods, including bonds that entered into an extended maturity period, as shown below: Issue dates—1st day of— Extension Entered on 1st day of— Mar. 1953-Nov. 1957 3rd Nov. 1982-Oct. 1986. Feb. 1965-Dec. 1970 2nd Nov. 1982-Oct. 1986. Nov. 1977-June 1980 1st Nov. 1982-June 1985. (iii) For Series E bonds that entered into extended maturity periods during the period of November 1, 1986, through February 1, 1993, the guaranteed minimum yield was or is 6 percent per annum, compounded semiannually, for such periods, including bonds that entered into an extended maturity period, as shown below: Issue dates—1st day of— Extension 4 Entered on 1st day of— May 1952-Aug. 1953 4th (final) 5 Jan. 1992-Apr. 1993. Dec. 1957-May 1965 3rd Nov. 1986-Feb. 1993. Dec. 1965-Feb. 1966 3rd (final) Dec. 1992-Feb. 1993. Jan. 1971-Feb. 1978 2nd Nov. 1986-Feb. 1993. 4 5 (iv) For Series E bonds entering extended maturity periods on or after March 1, 1993, the guaranteed minimum yield is 4 percent per annum, compounded semiannually, or the guaranteed minimum investment yield in effect at the beginning of the period, including bonds that enter extended maturity periods, as shown below: 6 6 7 Issue dates—1st day of— Extension 7 Entered on 1st day of— Sep. 1953-May 1965 4th (final) May 1993-Feb. 2003. Jun. 1965-Nov. 1965 3rd Mar. 1993-Aug. 1993. Jun. 1965-Nov. 1965 4th (final) Mar. 2003-Aug. 2003. Mar. 1966-Feb. 1978 3rd (final) Mar. 1993-Feb. 2003. Mar. 1978-Jun. 1980 2nd Mar. 1993-Jun. 1995 Mar. 1978-Jun. 1980 3rd (final) Mar. 2003-Jun. 2005. 7 (2) Eleven-year bonus. (d) Market-based variable investment yield. (1) For each 6-month period, starting with the period beginning May 1, 1982, the average market yield on outstanding marketable Treasury securities with a remaining term to maturity of approximately 5 years during such period is determined. Such determination by the Secretary of the Treasury or his or her delegate shall be final and conclusive. (2) For bonds which entered an extended maturity period prior to May 1, 1989, the market-based variable investment yield from the first semiannual interest accrual date occurring on or after November 1, 1982 to each semiannual interest accrual date occurring on or after November 1, 1987, will be 85 percent, rounded to the nearest one-fourth of one percent, of the arithmetic average of the market yield averages, as determined in accordance with paragraph (d)(1) of this section, for the appropriate number of 6-month periods involved, starting with the period beginning May 1, 1982. (3) For bonds which entered an extended maturity period on or after May 1, 1989, the market-based variable investment yield from the first semiannual interest accrual date occurring on or after November 1, 1982 to each semiannual interest accrual date occurring on or after November 1, 1989, will be 85 pecent, rounded to the nearest one-hundredth of one percent, of the arithmetic average of the market yield averages, as determined in accordance with paragraph (d)(1) of this section, for the appropriate number of 6-month periods involved, starting with the period beginning May 1, 1982. (e) Determination of redemption values during any extended maturity period. (1) Guaranteed minimum investment yield and resulting values during an extended maturity period. 8 8 (2) Market-based variable investment yield and resulting values during an extended maturity period. (f) Market-based variable investment yields and tables of redemption values. [57 FR 14276, Apr. 17, 1992, as amended at 58 FR 60936, 60937, Nov. 18, 1993] § 316.9 Taxation. (a) General. (b) Federal income tax on bonds. (1) Defer reporting the increase to the year of final maturity, actual redemption, or other disposition, whichever is earlier; or (2) Elect to report the increases each year as they accrue, in which case the election applies to all Series E bonds then owned and those subsequently acquired, as well as to any other similar obligations purchased on a discount basis. If the method in paragraph (b)(1) of this section is used, the taxpayer may change to the method in paragraph (b)(2) of this section without obtaining permission from the Internal Revenue Service. However, once the election to use the method in paragraph (b)(2) of this section is made, the taxpayer may not change the method of reporting without permission from the Internal Revenue Service. For further information on Federal income taxes, the Service Center Director, or District Director, Internal Revenue Service, of the taxpayer's district may be contacted. § 316.10 Payment or redemption. (a) General. (b) Federal Reserve Banks and Branches and United States Treasury. (c) Incorporated banks, savings and loan associations and other financial institutions. (i) The bond is in order for payment; and (ii) The presenter establishes his or her identity to the satisfaction of the agent, in accordance with Treasury instructions and identification guidelines, and signs and completes the requests for payment. (2) A paying agent may (but is not required to) pay a Series E bond, at current redemption value, upon the request of a legal representative designated in the bond's registration by name and capacity, a court-appointed legal representative of the last-deceased registrant's estate, or a beneficiary, if he or she survives the owner, provided: (i) The bond is in order for payment; and (ii) The presenter establishes his or her identity to the satisfaction of the agent, in accordance with Treasury instructions, indentification guidelines, and otherwise complies with evidentiary requirements. [57 FR 14276, Apr. 17, 1992, as amended at 59 FR 10535, Mar. 4, 1994] § 316.11 Reservation as to issue of bonds. The Secretary of the Treasury reserved the right to reject any application for purchase of Series E bonds, in whole or in part, and to refuse to issue, or permit to be issued hereunder, any such bonds in any case or any class or classes of cases if such action was deemed to be in the public interest. Any action in any such respect was final. § 316.12 Fiscal agents. (a) Federal Reserve Banks and Branches referred to below, as fiscal agents of the United States, are authorized to perform such services as may be requested of them by the Secretary of the Treasury in connection with the redemption and payment of Series E bonds. (b)(1) The following Federal Reserve Offices have been designated to provide savings bond services: Servicing office Reserve districts served Geographic area served Federal Reserve Bank, Buffalo Branch, P.O. Box 961, Buffalo, NY 14240 New York, Boston CT, MA, ME, NH, NJ (northern half), NY (City & State), RI, VT, Puerto Rico and Virgin Islands. Federal Reserve Bank, Pittsburgh Branch, P.O. Box 867, Pittsburgh, PA 15230 Cleveland, Philadelphia DE, KY (eastern half), NJ (southern half), OH, PA, WV (northern panhandle). Federal Reserve Bank of Richmond, P.O. Box 27622, Richmond, VA 23261 Richmond, Atlanta AL, DC, FL, LA (southern half), MD, MS (southern half), NC, SC, TN (eastern half), VA, WV (except northern panhandle). Federal Reserve Bank of Minneapolis, 250 Marquette Avenue, Minneapolis, MN 55480 Minneapolis, Chicago IA, IL (northern half), IN (northern half), MN, MT, ND, SD, WI. Federal Reserve Bank of Kansas City, 925 Grand Avenue, Kansas City, MO 64198 Dallas, San Francisco, Kansas City, St. Louis AK, AR, AZ, CA, CO, HI, ID, IL (southern 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. (2) Until March 1, 1996, other Federal Reserve Offices may continue to provide some savings bond services, such services will be phased out over the period prior to that date. [59 FR 10535, Mar. 4, 1994] § 316.13 Reservation as to terms of offer. The Secretary of the Treasury may at any time, or from time to time, supplement or amend the terms of this offering of bonds, or of any amendments or supplements thereto.