PART 351—OFFERING OF UNITED STATES SAVINGS BONDS, SERIES EE Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105. Source: 68 FR 24796, May 8, 2003, unless otherwise noted. Subpart A—General Information § 351.0 What does this part cover? This part is the offering of United States Savings Bonds of Series EE (referred to as Series EE bonds or bonds) for sale to the people of the United States by the Secretary of the Treasury (Secretary). Series EE bonds have been offered since 1980. The current offer was effective May 1, 2005, and will continue until terminated by the Secretary. [68 FR 24796, May 8, 2003, as amended at 70 FR 17288, Apr. 5, 2005] § 351.1 What regulations govern Series EE savings bonds? (a) The regulations in 31 CFR part 353 apply to definitive (paper) Series EE savings bonds that have not been converted to book-entry bonds through New Treasury Direct. (b) The regulations in 31 CFR part 363 apply to: (1) Book-entry Series EE savings bonds that were originally issued as book-entry bonds in New Treasury Direct; and (2) Definitive Series EE savings bonds that have been converted to book-entry bonds through New Treasury Direct. (c) The regulations in 31 CFR part 370 apply to transactions for the purchase of savings bonds issued through the Bureau of the Fiscal Service, but do not apply to transactions purchased through issuing agents generally. (d) We expressly disclaim any representations or warranties regarding Series EE savings bonds that in any way conflict with these regulations and other applicable law. [68 FR 24796, May 8, 2003, as amended at 70 FR 14941, Mar. 23, 2005] § 351.2 How do I contact Fiscal Service? You may contact Fiscal Service by e-mail at [email protected] www.savingsbonds.gov. § 351.3 What special terms do I need to know to understand this part? Accrual date Automated Clearing House (ACH) Bank account Beneficiary Book-entry bond Converted bond Coowner Definitive bond Extended maturity period, second extended maturity period, extended maturity Face amount Fiduciary Final maturity Individual Inscription Interest, Issue date Issuing agent New Treasury Direct system (New Treasury Direct) Original maturity period original maturity Owner Par Paying agent Person Primary owner Principal amount Redemption of a book-entry Series EE savings bond Redemption of a definitive Series EE savings bond Redemption value Registration Secondary owner Semiannual rate periods semiannual earnings periods Series EE savings bond Single owner Taxpayer identification number (TIN) We, us, our You your [68 FR 24796, May 8, 2003, as amended at 70 FR 14941, Mar. 23, 2005; 71 FR 46857, Aug. 15, 2006] § 351.4 In what form are Series EE savings bonds issued? Series EE savings bonds are issued in book-entry form. Effective January 1, 2012, Treasury discontinued the issuance of definitive Series EE savings bonds. [76 FR 66855, Oct. 28, 2011] Subpart B—Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds General Provisions § 351.5 What is the maturity period of a Series EE savings bond? Series EE savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the issue date of the bond. The interest on an outstanding bond ceases to accrue 30 years after its issue date. § 351.6 When may I redeem my Series EE savings bond? (a) Bonds with issue dates on or before January 1, 2003. (b) Bonds with issue dates on or after February 1, 2003. § 351.7 May Series EE savings bonds be called for redemption prior to final maturity? The Secretary of the Treasury may not call Series EE bonds for redemption prior to final maturity. § 351.8 When is interest payable on Series EE savings bonds? Interest on a bond accrues and becomes part of the redemption value. Interest earnings are payable upon redemption. § 351.9 When will I receive the redemption value of my Series EE savings bonds? (a) You will be paid the redemption value of your definitive bond when you surrender the bond for payment as provided in these regulations and in 31 CFR part 353. (b) You will be paid the redemption value of your book-entry bond when it reaches final maturity, if you have not redeemed the bond previously. § 351.10 What do I need to know about market yields, or market bid yields, to understand redemption value calculations in this subpart? We use market yields, or market bid yields, derived from Treasury bills, notes, and bonds, to create a yield curve based on the most actively traded Treasury securities. This curve relates the yield on a security to its time to maturity. Yields at particular points on the curve are referred to as “constant maturity yields” and are determined by the Treasury from this daily yield curve. Six-month and 5-year Treasury securities rates are derived from these yield curves. § 351.11 What do I need to know about the short-term savings bond rate, to understand redemption value calculations in this subpart? We determine this rate by compiling 6-month Treasury securities rates as of the close of business for each day of the previous three months and calculating the monthly average for each month, rounding each monthly average to the nearest one-hundredth of one percent. We then determine the short-term savings bond rate by taking 85 percent of the three-month average and rounding the result to the nearest one-hundredth of one percent. For bonds entitled to interest accruals at the short-term savings bond rate, that rate applies to the bond's first full semiannual interest accrual period following each announcement of the rate. § 351.12 What do I need to know about the long-term savings bond rate, to understand redemption value calculations in this subpart? We determine this rate by compiling 5-year Treasury securities rates as of the close of business for each day of the previous six months and calculating the monthly average for each month, rounding each monthly average to the nearest one-hundredth of one percent. We then determine the long-term savings bond rate by taking 85 percent of the 6-month average and rounding the result to the nearest one-hundredth of one percent. For bonds entitled to interest accruals at the long-term savings bond rate, that rate applies to the bond's first full semiannual interest accrual period following each announcement of the rate. § 351.13 What do I need to know about the savings bond rate to understand redemption value calculations in this subpart? We determine the savings bond rate by compiling 5-year Treasury securities yields as of the close of business for each day of the previous six months and calculating the monthly average to the nearest one-hundredth of one percent. We then determine the savings bonds rate by taking 90 percent of the 6-month average and rounding the result to the nearest one-hundredth of one percent. § 351.14 When are rate announcements that apply to Series EE savings bonds announced? (a) The Secretary will furnish rates that apply to Series EE savings bonds in announcements published each May 1 and November 1. (b) If the regularly scheduled date for the announcement is a day when we are not open for business, then the Secretary will make the announcement on the next business day. However, the effective date of the rate remains the first day of the month of the announcement. (c) The Secretary may announce rates at any other time. § 351.15 Is the determination of the Secretary on rates and values final? The Secretary's determination of rates of return and savings bond redemption values is final and conclusive. § 351.16 What do I need to know about the base denomination for redemption value calculations? We base all calculations of interest on a unit with a principal amount of $12.50. We use this unit value to determine the value of bonds in higher denominations. The effect of rounding off the value of the $12.50 unit increases at higher denominations. This can work to your slight advantage or disadvantage, depending on whether the value is rounded up or down. Example. The following hypothetical example illustrates the calculation: A rate of 3.25% will result in a newly purchased $12.50 unit increasing in value after six months to $12.70, when rounded to the nearest cent. Therefore, a $5,000 definitive Series EE bond (with a principal amount of $2,500) will be worth $2,540 after six months ([$2,500 divided by $12.50] × $12.70 = $2,540.) In contrast, if applied directly to a $2,500 principal amount, the rate would render a value of $2,540.63 after six months, a difference of 63 cents. (This example does not account for any interest penalty that might apply if you redeem a bond less than five years after its issue date.) §§ 351.17-351.18 [Reserved] Series EE Savings Bonds with Issue Dates Prior to May 1, 1995 § 351.19 What are maturity periods of Series EE savings bonds with issue dates prior to May 1, 1995? Bonds with issue dates from January 1, 1980, through May 1, 1995 have an original maturity period and two extended maturity periods, as shown by the following table: Issue dates—1st day of Original term First extended term Second extended term Final maturity dates Jan. 1980-Oct. 1980 11 10 9 Jan. 2010-Oct. 2010. Nov. 1980-Apr. 1981 9 10 11 Nov. 2010-Apr. 2011. May 1981-Oct. 1982 8 10 12 May 2011-Oct. 2012. Nov. 1982-Oct. 1986 10 10 10 Nov. 2012-Oct. 2016. Nov. 1986-Feb. 1993 12 10 8 Nov. 2016-Feb. 2023. Mar. 1993-Apr. 1995 18 10 2 Mar. 2023-Apr. 2025. § 351.20 What is the investment yield (interest) during the original maturity period of Series EE savings bonds with issue dates from January 1, 1980, through April 1, 1995? The redemption value of a bond on a given interest accrual date during original maturity will be the higher of the value produced using the applicable guaranteed minimum investment yield or the value produced using the appropriate market-based variable investment yield. (a) Guaranteed minimum investment yield Bonds bearing issue dates prior to November 1, 1982. www.savingsbonds.gov, [email protected], (2) Bonds bearing issue dates of November 1, 1982, through April 1, 1995 Prior to 5 years from issue date. www.savingsbonds.gov, [email protected], (ii) On or after 5 years from issue date. Issue dates of bonds Percent Nov. 1, 1982-October 1, 1986 7.5 Nov. 1, 1986-Feb. 1, 1993 6 Mar. 1, 1993-Apr. 1, 1995 4 (b) Market-based variable investment yield. (1) For each 6-month period, starting with the period beginning on May 1, 1982, we will determine the average market yield on outstanding marketable Treasury securities with a remaining term to maturity of approximately 5 years during such period. (2) For bonds bearing an issue date prior to May 1, 1989, the market-based variable investment yield from its first semiannual interest accrual date occurring on or after November 1, 1982, or its issue date, whichever is later, to its first semiannual interest accrual date 5 years thereafter will be 85 percent, rounded to the nearest one-fourth of 1 percent, of the arithmetic average of the market yield averages for the ten 6-month periods starting with the 6-month period that most recently ended before such issue date, whichever is later. (3) For bonds bearing issue dates of May 1, 1989, through April 1, 1995, the market-based variable investment yield from the issue date to the semiannual interest accrual date 5 years thereafter will be 85 percent, rounded to the nearest one-hundredth of 1 percent, of the arithmetic average of the market yield averages for the ten 6-month periods starting with the 6-month period that most recently ended before such issue date. (4) In determining the market-based variable investment yield for a bond from its first semiannual interest accrual date occurring on or after November 1, 1982, or its issue date, whichever is later, to each successive semiannual interest accrual date occurring after 5 years from issue up to original maturity, the average market yield for each additional 6-month period will be included in the computation. § 351.21 How are redemption values determined during any extended maturity period of Series EE savings bonds with issue dates prior to May 1, 1995? The redemption value of a bond on a given interest accrual date during an extended maturity period or periods will be the higher of the values produced using either the applicable guaranteed minimum investment yield or the appropriate market-based variable investment yield. The calculation of these yields and the resulting redemption values are described below: (a) Guaranteed minimum investment yield and resulting values during an extended maturity period. (1) Bonds entering an extended maturity period from May 1, 1989, through February 1, 1993. (2) Bonds entering an extended maturity period on or after March 1, 1993. (3) Determination of values for a bond during extended maturity periods. (b) Market-based variable investment yield and resulting values during an extended maturity period. § 351.22 When does the redemption value increase for bonds issued prior to May 1, 1995? (a) Bonds with issue dates from January 1, 1980, through October 1, 1980. (b) Bonds with issue dates from November 1, 1980, through October 1, 1986. (c) Bonds with issue dates from November 1, 1986, through February 1, 1993. (d) Bonds with issue dates of March 1, 1993, through April 1, 1995. § 351.23 Are tables of redemption values available for bonds issued prior to May 1, 1995? You may obtain the appropriate yields and tables by downloading from our website at www.savingsbonds.gov, [email protected], Series EE Savings Bonds With Issue Dates From May 1, 1995, Through April 1, 1997 § 351.24 What are the maturity periods of bonds with issue dates from May 1, 1995, through April 1, 1997? (a) Original maturity. (b) Final maturity. § 351.25 What were the interest rates and redemption values for bonds with issue dates from May 1, 1995, through April 1, 1997, during semiannual rate periods in the first 5 years after issue date? (a) Interest rates. (b) Redemption values. § 351.26 What are the interest rates and redemption values for bonds with issue dates from May 1, 1995 through April 1, 1997, during semiannual rate periods that begin 5 years or more after issue date? (a) Interest rates. (b) Redemption values. § 351.27 What are the interest rates and redemption values for bonds with issue dates from May 1, 1995, through April 1, 1997, during an extended maturity period? During an extended maturity period the bond will be subject to the terms and conditions in effect when it is issued, and will continue to earn interest as described in paragraph § 351.26, unless the terms and conditions applicable to an extended maturity period are expressly amended prior to the beginning of such period. § 351.28 How are redemption values calculated for bonds with issue dates from May 1, 1995, through April 1, 1997? We determine the redemption value of a bond on the accrual date immediately following each semiannual earning period as follows: (a) We convert the applicable long-term or short-term savings bond rate for the semiannual earning period to decimal form by dividing by 100, and adjust it to a semiannual rate by dividing by 2. (b) Using redemption values for the base denomination, as defined in § 351.16, we then multiply this rate by the redemption value of the bond at the beginning of the semiannual earning period. (c) We add the resulting interest amount, rounded to the nearest cent, to the redemption value of the bond at the beginning of the earning period to produce the redemption value at the next semiannual accrual date. The redemption value of a bond remains constant between accrual dates. Series EE Savings Bonds With Issue Dates of May 1, 1997, Through April 1, 2005 § 351.29 What are the maturity periods of bonds with issue dates of May 1, 1997, through April 1, 2005? (a) Original maturity Bonds with issue dates from May 1, 1997, to May 1, 2003. (2) Bonds with issue dates of June 1, 2003, through April 1, 2005. (b) Final maturity. [68 FR 24796, May 8, 2003, as amended at 70 FR 17288, Apr. 5, 2005] § 351.30 What are interest rates and monthly accruals for Series EE bonds with issue dates of May 1, 1997, through April 1, 2005, during the original maturity period? Savings bond rates (defined in § 351.13) apply to earnings during the first semiannual rate period beginning on or after the effective date of the rate. Interest is credited on the first day of each month and compounded semiannually. Interest accrues beginning with the fourth month from the issue date. For example, a bond issued in January has interest first credited on May 1, which represents one month of interest because of the 3-month interest penalty. The following table shows, for any given month of issue with rates announced each May and November, the months making up the semiannual rate period during which interest is earned at the announced rate (disregarding the penalty for bonds redeemed prior to 5 years after the issue date) and the months in which the bonds increase in value. This rate is an annual rate compounded semiannually. If issue month is— And rate announcement/effective date is— Then, semiannual rate periods in which interest is earned include months of— And bonds increase in value on 1st day of months of— Jan. or Jul May 1 Jul. through Dec Aug. through Jan. Feb. or Aug May 1 Aug. through Jan Sep. through Feb. Mar. or Sep May 1 Sep. through Feb Oct. through Mar. Apr. or Oct May 1 Oct. through Mar Nov. through Apr. May or Nov May 1 May through Oct Jun. through Nov. Jun. or Dec May 1 Jun. through Nov Jul. through Dec. Jan. or Jul Nov. 1 Jan. through Jun Feb. through Jul. Feb. or Aug Nov. 1 Feb. through Jul Mar. through Aug. Mar. or Sep Nov. 1 Mar. through Aug Apr. through Sep. Apr. or Oct Nov. 1 Apr. through Sep May through Oct. May or Nov Nov. 1 Nov. through Apr Dec. through May. Jun. or Dec Nov. 1 Dec. through May Jan. through Jun. § 351.31 What is the interest penalty for Series EE bonds with issue dates of May 1, 1997, through April 1, 2005, that are redeemed less than 5 years after the issue date? If you redeem a Series EE savings bond with an issue date of May 1, 1997, through April 1, 2005, less than five years following the issue date, we reduce the overall earning period from the issue date by three months. For example, if you redeem a bond issued January 1, 1998, 9 months later on October 1, 1998, we will determine the redemption value by applying the redemption value calculation formula described in § 351.32 and the savings bonds rate for that bond at 6 months after the issue date on July 1, 1998. The redemption value of a bond subject to the 3-month interest penalty shall not be reduced below the issue price. This penalty does not apply to bonds redeemed 5 years or more after the issue date. [68 FR 24796, May 8, 2003, as amended at 70 FR 17288, Apr. 5, 2005] § 351.32 How are redemption values calculated for Series EE bonds with issue dates of May 1, 1997, through April 1, 2005? (a) Formula for redemption value. FV = PV × {[1 + (i ÷ 2)] (m/6) where FV (future value) = redemption value on redemption date rounded to the nearest cent. PV (present value) = redemption value at the beginning of the semiannual rate period i = savings bonds rate converted to decimal form by dividing by 100. m = number of full calendar months outstanding during the semiannual rate period. 1 1 Example, assume a hypothetical savings bonds rate of 5.00% effective May 1, 2002, for a bond denominated at $25, with an issue date of September 1, 1997 and a redemption value of $16.00 as of September 1, 2002. The February 1, 2003, redemption value is calculated as follows: Bonds issue dated in September have semiannual rate periods beginning each March 1 and September 1. The first semiannual rate period to begin on or after the effective date of the May 1, 2002, rate would be the period beginning September 1, 2002. PV, the present value, would be the value of the bond at the beginning of the semiannual rate period, on September 1, 2002. The savings bonds rate of 5.00% converted to a decimal would be 0.05. The number of months, m, is 5 since 5 full calendar months (September through January) have lapsed since the beginning of the rate period. FV is then the result of the formula: FV = $16.00 × {[1 + (0.05 ÷ 2)] (5/6) Using the example, the FV of a savings bond with a $50 or larger denomination can be determined by applying the appropriate multiple, for example: $16.33 × ($50.00/$25.00) for a bond with a $50.00 face amount; or $16.33 × ($100.00/$25.00) for a bond with a $100.00 face amount. (b) Value of bonds at original maturity Definitive bond. (2) Book-entry bond. § 351.33 What are interest rates and redemption values for Series EE bonds issued May 1, 1997, through April 1, 2005, during an extended maturity period? During an extended maturity period the bond will be subject to the terms and conditions in effect when it is issued and will continue to earn interest as described in § 351.30, unless the terms and conditions applicable to an extended maturity period are expressly amended prior to the beginning of such period. Series EE Savings Bonds With Issue Dates of May 1, 2005, or Thereafter § 351.34 What are the maturity periods of Series EE bonds with issue dates of May 1, 2005, or thereafter? (a) Original maturity. (b) Final maturity. [70 FR 17288, Apr. 9, 2005] § 351.35 What do I need to know about interest rates, penalties, and redemption values for Series EE bonds with issue dates of May 1, 2005, or thereafter? (a) Fixed rate or fixed rate of interest. (b) Determination of fixed rate of interest. (2) The Secretary's determination of rates of interest and savings bond redemption values is final and conclusive. (c) Announcement of fixed rate. (2) If the regularly scheduled date for the announcement is a day when the Treasury is not open for business, then the Secretary will make the announcement on the next business day; however, the effective date of the rates remains the first day of the month of the announcement. (3) The Secretary may announce rates at any other time. (4) The most recently announced fixed rate applies only to bonds purchased during the six months following the announcement, or for any other period of time announced by the Secretary. (d) Monthly accruals. (e) Interest penalty for Series EE bonds redeemed less than 5 years after issue date. (f) Redemption value of Series EE bonds at original maturity Definitive bond. (2) Book-entry bond. [70 FR 17289, Apr. 9, 2005] §§ 351.36-351.39 [Reserved] Subpart C—Definitive Series EE Savings Bonds § 351.40 What were the denominations and prices of definitive Series EE savings bonds? Prior to January 1, 2012, we issued definitive Series EE savings bonds in denominations of $50, $75, $100, $200, $500, $1000, $5000, and $10,000. The purchase price was one-half the amount of the denomination. [76 FR 66855, Oct. 28, 2011] § 351.41 When are definitive Series EE savings bonds validly issued? A definitive bond is validly issued when it is registered as provided in 31 CFR part 353, and when it bears an issue date and the validation indicia of an authorized issuing agent. § 351.42 What is the issue date of a definitive series EE savings bond? The issue date of a definitive bond is the first day of the month in which an authorized issuing agent received payment of the issue price. [76 FR 66855, Oct. 28, 2011] § 351.43 Are taxpayer identification numbers (TINs) required for the registration of a definitive Series EE savings bond? The registration of a definitive Series EE savings bond must include the TIN of the owner or first-named coowner. The TIN of the second-named coowner or beneficiary is not required but its inclusion is desirable. If the bond was purchased as a gift or award and the owner's TIN is not known, the TIN of the purchaser must be included in the registration of the bond. [71 FR 46857, Aug. 15, 2006, as amended at 76 FR 66855, Oct. 28, 2011] §§ 351.44-351.45 [Reserved] § 351.46 May I purchase definitive Series EE savings bonds over-the-counter? Effective January 1, 2012, Treasury discontinued the over-the-counter sale of definitive Series EE savings bonds. [76 FR 66855, Oct. 28, 2011] § 351.47 May I purchase definitive Series EE savings bonds through a payroll savings plan? Treasury discontinued the issuance of definitive Series EE savings bonds through a payroll savings plan: (a) Effective October 1, 2010, for United States government employees, and (b) Effective January 1, 2011, for all other employees. [75 FR 52460, Aug. 26, 2010] § 351.48 May I purchase definitive Series EE savings bonds through employee thrift, savings, vacation, and similar plans? You may purchase bonds registered in the names of trustees of employee plans in book-entry form in multiples of $100 through a designated Federal Reserve Bank, after we have approved the plan as eligible for the special limitation under § 353.13 of this chapter. § 351.49 How are definitive Series EE savings bonds delivered? We deliver definitive bonds by mail to your address. If your address is within the United States, its territories or possessions, or the Commonwealth of Puerto Rico, we will deliver bonds at our risk. Bonds delivered elsewhere will be delivered at your risk; however, at our discretion, we may require delivery to an address within the United States, or refuse delivery to addresses in countries referred to in part 211 of this chapter. § 351.50 How is payment made when definitive Series EE savings bonds are redeemed? (a) Payment in general. (b) Payment to beneficiary or legal representative. (1) The bond is in order for payment; and (2) The presenter establishes his or her identity to the satisfaction of the agent in accordance with our instructions and identification guidelines, and signs and completes the request for payment. § 351.51 How can I find out what my definitive Series EE savings bonds are worth? (a) Redemption values. (1) You may determine the redemption value for definitive bonds on the Internet at < http://www.savingsbonds.gov (2) You may download savings bond calculators from the Internet at < http://www.savingsbonds.gov (3) You may obtain paper tables from the Bureau of the Fiscal Service, Parkersburg, West Virginia 26106-1328. We reserve the right to cease making paper tables of redemption values available. (b) Redemption penalty. §§ 351.52-351.59 [Reserved] Subpart D—Book-entry Series EE Savings Bonds § 351.60 How are book-entry Series EE savings bonds purchased and held? Book-entry bonds must be purchased and held online through your New Treasury Direct account. We provide instructions for opening an account online at < http://www.fiscal.treasury.gov § 351.61 What are the denominations and prices of book-entry Series EE savings bonds? Book-entry bonds are issued in a minimum amount of $25, with additional increments of one cent. § 351.62 How is payment made for purchases of book-entry Series EE savings bonds? You may only purchase book-entry Series EE savings bonds online through your New Treasury Direct account. You may pay for your securities through a debit to your designated account at a United States depository financial institution, or by applying the redemption proceeds of a certificate of indebtedness held in your New Treasury Direct account. [69 FR 50308, Aug. 16, 2004] § 351.63 How are redemption payments made for my redeemed book-entry Series EE savings bonds? We will make payments electronically by direct deposit, using the ACH method, to your designated account at a United States depository financial institution. You may also direct that a payment be used to purchase a certificate of indebtedness to be held in your New Treasury Direct account. [69 FR 50308, Aug. 16, 2004] § 351.64 What is the issue date of a book-entry Series EE savings bond? The issue date of a book-entry Series EE savings bond is the first day of the month in which the security posts to the current holdings of the account owner. [69 FR 50308, Aug. 16, 2004] § 351.65 What amount of book-entry Series EE savings bonds may I acquire per year? The principal amount of book-entry Series EE savings bonds that you may acquire in any calendar year is provided at § 363.52. [77 FR 213, Jan. 4, 2012] §§ 351.66-351.67 [Reserved] § 351.68 Are taxpayer identification numbers (TINs) required for registration of book-entry Series EE savings bonds? The TIN of each person named in the registration is required to purchase a book-entry bond. § 351.69 When is a book-entry Series EE savings bond validly issued? A book-entry bond is validly issued when it is posted to your New Treasury Direct account. § 351.70 How are redemption values calculated for book-entry Series EE savings bonds? We base current redemption values (CRV) for book-entry Series EE savings bonds on the definitive savings bond CRV. We use the CRV for a $100 principal amount as calculated in § 351.16 to calculate a CRV prorated to the book-entry principal investment amount for the corresponding issue and redemption dates. Calculated book-entry CRV will be rounded to the nearest one cent. 2 2 [Book-entry principal investment ÷ $100] × [CRV value for $100 principal amount]. [68 FR 24796, May 8, 2003, as amended at 75 FR 52460, Aug. 26, 2010] § 351.71 How can I find out what my book-entry Series EE savings bonds are worth? (a) Redemption values. (b) Redemption penalty. §§ 351.72-351.80 [Reserved] Subpart E—Miscellaneous Provisions § 351.81 Is the Education Savings Bond Program available for Series EE savings bonds? You may be able to exclude from income for Federal income tax purposes all or part of the interest received on the redemption of qualified bonds during the year. To qualify for the program, you or the coowner (in the case of definitive savings bonds) must have paid qualified higher education expenses during the same year. You also must have satisfied certain other conditions. This exclusion is known as the Education Savings Bond Program. Information about the program can be found in Internal Revenue Service Publications. (For example, see Publication 17, “Your Federal Income Tax,” Publication 550, “Investment Income and Expenses,” and Publication 970, “Tax Benefits for Higher Education.”) These publications are available on the IRS Web site at http://www.irs.gov. § 351.82 Does Fiscal Service prohibit the issuance of Series EE savings bonds in a chain letter scheme? We do not permit bonds to be issued in a chain letter or pyramid scheme. We authorize an issuing agent to refuse to issue a bond or accept a purchase order if there is reason to believe that a purchase is connected with a chain letter. The agent's decision is final. § 351.83 [Reserved] § 351.84 Does Fiscal Service make any reservations as to issue of Series EE savings bonds? We may reject any application for Series EE bonds, in whole or in part. We may refuse to issue, or permit to be issued, any bonds in any case or class of cases, if we deem the action to be in the public interest. Our action in any such respect is final. § 351.85 May Fiscal Service waive any provision in this part? We may waive or modify any provision of this part in any particular case or class of cases for the convenience of the United States or in order to relieve any person or persons of unnecessary hardship: (a) If such action would not be inconsistent with law or equity; (b) If it does not impair any material existing rights; and (c) If we are satisfied that such action would not subject the United States to any substantial expense or liability. § 351.86 What is the role of Federal Reserve Banks and Branches? (a) Federal Reserve Banks and Branches are fiscal agents of the United States. They are authorized to perform such services as we may request of them, in connection with the issue, servicing and redemption of Series EE bonds. (b) We have currently designated the following Federal Reserve Offices to provide savings bond services: Servicing site Reserve district served Geographic area served Federal Reserve Bank, Buffalo Branch, 160 Delaware Avenue, Buffalo, NY 14202 New York, Boston Connecticut, Maine, Massachusetts, New Hampshire, New Jersey (northern half), New York, Rhode Island, Vermont, Puerto Rico, Virgin Islands. Federal Reserve Bank, Pittsburgh Branch, 717 Grant Street, Pittsburgh, PA 15219 Cleveland, Philadelphia Delaware, Kentucky (eastern half), New Jersey, (southern half), Ohio, Pennsylvania, West Virginia (northern panhandle only). Federal Reserve Bank of Richmond, 701 East Byrd Street, Richmond, VA 23219 Richmond, Atlanta Alabama, District of Columbia, Florida, Georgia, Louisiana (southern half), Maryland, Mississippi (southern half), North Carolina, South Carolina, Tennessee (eastern half), Virginia, West Virginia (except northern panhandle). Federal Reserve Bank of Minneapolis, 90 Hennepin Avenue, Minneapolis, MN 55401 Minneapolis, Chicago. Illinois (northern half), Indiana (northern half), Iowa, Michigan, Minnesota, Montana, North Dakota, South Dakota, Wisconsin. Federal Reserve Bank of Kansas City, 925 Grand Boulevard, Kansas City, MO 64106 Dallas, San Francisco, Kansas City, St. Louis Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois (southern half), Indiana (southern half), Indiana (southern half), Kansas, Kentucky (western half), Louisiana (northern half), Mississippi (northern half), Missouri, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Tennessee (western half), Texas, Utah, Washington, Wyoming, Guam. § 351.87 May Fiscal Service revise, supplement or amend the terms of this offering? We may revise, supplement or amend the terms of this offering at any time. Appendix to Part 351—Tax Considerations 1. What are some general tax considerations? General. 2. What reporting methods are available for savings bonds? (a) Reporting methods. (1) Cash basis method. (2) Accrual basis method. (b) Changing methods. 3. What transactions have potential tax consequences? The following types of transactions, among others, may have potential tax consequences: (a) A reissue that affects the rights of any of the persons named on a definitive Series EE savings bond may have tax consequences for the owner. (b) The transfer of a book-entry Series EE savings bond from one owner to another may have tax consequences for the transferor. (c) The redemption of a book-entry Series EE savings bond by the secondary owner may have tax consequences for the primary owner. (d) The purchase of a Series EE savings bond as a gift may have gift tax consequences.