PART 328—RESTRICTIVE ENDORSEMENTS OF U.S. BEARER SECURITIES Authority: R.S. 3706; 40 Stat. 288, 502, 1309; 46 Stat. 20; 48 Stat. 343; 49 Stat. 20; 56 Stat. 189; 73 Stat. 622; 85 Stat. 5, 74 (31 U.S.C. 738a, 739, 752, 752a, 753, 754, 754a and 754b); and 5 U.S.C. 301. Source: 38 FR 10682, Apr. 30, 1973, unless otherwise noted. § 328.1 Scope of regulations. The regulations in this part are applicable only to U.S. bearer securities 1 1 (a) By or through banks for payment at or after their maturity or call date, or in exchange for any securities under any exchange offering, (b) By banks for conversion to book-entry securities, (c) By or through banks at any time prior to their maturity or call date for redemption at par and application of the entire proceeds in payment of Federal estate taxes, provided said securities by the terms of their issue are eligible for such redemption, and (d) By Service Center Directors and District Directors, Internal Revenue Service, for redemption, with the proceeds to be applied in payment of taxes (other than securities presented under paragraph (c) of this section). These regulations do not apply to bearer securities presented for any other transactions, or to registered securities assigned in blank, or to bearer, or so assigned as to become, in effect, payable to bearer. § 328.2 Definitions. Certain words and terms, as used in these regulations, are defined as follows: (a) Banks i.e. i.e. (b) Bearer securities securities bearer, Treasury bonds, Treasury bills. § 328.3 Authorization for restrictive endorsements. (a) By banks. (1) For payment or redemption—at any time within 1 calendar month prior to their maturity date, or the date on which they become payable pursuant to a call for redemption, or at any time after their maturity or call date; (2) For exchange—during any period for their presentation pursuant to an exchange offering; (3) For redemption at par in payment of Federal estate taxes (only eligible securities)—at any time prior to their maturity or call redemption date; and (4) For conversion to book-entry securities under subpart O of part 306 of this chapter—at any time prior to their maturity or call redemption date. (b) By Service Center Directors and District Directors, Internal Revenue Service. (c) Instructions from Federal Reserve banks. § 328.4 Effect of restrictive endorsements. Bearer securities bearing restrictive endorsements as herein provided will thereafter be nonnegotiable and payment, redemption, or exchange will be made only as provided in such endorsements. § 328.5 Forms of endorsement. (a) When presented by banks For payment or exchange. For presentation to the Federal Reserve Bank of __________, Fiscal Agent of the United States, for redemption or in exchange for securities of a new issue, in accordance with written instructions submitted by __________. (Insert name of presenting bank) (2) For redemption at par. For presentation to the Federal Reserve Bank of ________, Fiscal Agent of the United States, for redemption at par in payment of Federal estate taxes, in accordance with written instructions submitted by ________________. (Insert name of presenting bank) (b) For conversion to book-entry securities. For presentation to the Federal Reserve Bank of _________, Fiscal Agent of the United States, for conversion to book-entry securities by _________. (Insert name of presenting bank) (c) When presented by Service Center Directors or District Directors, Internal Revenue Service. For presentation to the Federal Reserve Bank of _______;, Fiscal Agent of the United States, for redemption, the proceeds to be credited to the account of the Service Center Director, Internal Revenue Service, at _____, for credit on the Federal _________ (Income, gifts, or other) taxes due from _________. (Name and address) § 328.6 Requirements for endorsement. (a) On bearer securities. 1/2 (b) On coupons. § 328.7 Shipment of securities. Securities bearing restrictive endorsements may be shipped, at the risk and expense of the shipper, by registered mail, messenger, armored car service, or express to the Federal Reserve bank of the district in which the presenting bank, the Service Center Director, or the District Director, Internal Revenue Service, is located, or to the appropriate branch of such Federal Reserve bank, shipments to the Bureau of the Fiscal Service, Washington, DC, should be made by messenger or armored car. § 328.8 Loss, theft, or destruction of securities bearing restrictive endorsements. (a) General. (b) Bond of indemnity. § 328.9 Miscellaneous. The provisions of this circular are subject to the current revision of Department Circular No. 300. The Secretary of the Treasury reserves the right at any time to amend, supplement, or withdraw any or all of the provisions of these regulations.