[Code of Federal Regulations]

[Title 31, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR342.2]



[Page 265]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY

 

PART 342_OFFERING OF UNITED STATES SAVINGS NOTES--Table of Contents

 

Sec.  342.2  Description of notes.



    (a) General. Savings notes were issued only in registered form and 

are nontransferable.

    (b) Term. A savings note was dated as of the first day of the month 

in which payment of the purchase price was received by an issuing agent. 

A note had an original maturity period of 4 years and 6 months and has 

been granted two 10-year extensions of maturity and an additional 

extension of 5 years and 6 months with interest; it will reach final 

maturity 30 years from its issue date. A note cannot be called by the 

Secretary of the Treasury prior to maturity and was not redeemable 

during the first year from issue date. Thereafter, a note may be 

redeemed at the option and request of the owner.

    (c) Denominations and purchase prices. Savings notes were issued on 

a discount basis. The denominations and purchase prices were as follows:



------------------------------------------------------------------------

                                                              Purchase

                       Denomination                             price

------------------------------------------------------------------------

$25.......................................................        $20.25

50........................................................         40.50

75........................................................         60.75

100.......................................................         81.00

------------------------------------------------------------------------





Interest is paid as a part of the redemption value. A note increased in 

value one year after issue date and increases at the beginning of each 

half-year period thereafter until final maturity, at which time interest 

ceases to accrue. Interest on a note which is redeemed before maturity 

ceases to accrue at the end of the interest period next preceding the 

redemption date, except that if the note is redeemed on a date on which 

the redemption value increases, interest ceases to accrue on that date.

    (d) Inscription and issue. At the time of issue, the authorized 

issuing agent:

    (1) Inscribed on the face of each note the name and address of the 

owner and the name of the beneficiary, if any, or the names of the 

coowner;

    (2) Entered the issue date in the right-hand portion of the note in 

the space provided for that purpose; and

    (3) Imprinted thereunder, by use of the agent's validation indicia 

for the issue of Series E savings bonds, the date the note was actually 

inscribed. A note is valid only if an authorized issuing agent received 

payment therefor and duly inscribed, dated, imprinted validation indicia 

on the note and delivered it.



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