Tax and Loss Bonds
United States Mortgage Guaranty Insurance Company Tax and Loss Bonds are purchased by companies involved in mortgage guaranty insurance, lease guarantee insurance, and insurance of state and local obligations against loss on their loans. State insurance commissions may require companies to create a contingency loss reserve for use when losses exceed a specific percentage of premiums.
A federal tax deduction is allowed on the funds put into this reserve if the company purchases Tax and Loss Bonds in the amount of the tax benefit and under applicable laws.
- Tax and Loss Bonds are non-interest bearing book-entry securities that mature 10 or 20 years from the designated issue date.
- The bonds are issued in a minimum amount of $1,000 or in any larger amount, in increments of not less than $1.00.
Subscribers may purchase Tax and Loss Bonds by faxing an application form, PD F 3871 to (304) 480-5277. You can also mail the form to:
The Bureau of the Public Debt
Special Investments Branch
P.O. Box 396
Parkersburg, WV 26106-0396
Payments are received through the Fedwire funds transfer system. After September 24, 1997, all book-entry bonds are paid by ACH (Automated Clearing House). Your financial institution will send funds for purchase using the Fedwire funds transfer system. Instructions for the Fedwire funds transfer system are shown below:
| FIELD NAME | DESCRIPTION |
|---|---|
| Sender ABA | ABA Number of Financial Institution Submitting Funds |
| Name (Sender) | Name of the Financial Institution Submitting Funds |
| Receiver ABA | Enter 051036476 |
| Name (Receiver) | Enter TREAS BPD SIB |
| Type Code | Enter 1000 |
| Amount | Amount of Payment |
| ORG (Originator) | Name of the Owner (Name of Company purchasing bonds) |
| Product-Code | Enter BTR |
| RFB (Reference to the Beneficiary Information) | The Owner's Employer Identification Number (EIN of the Company NOTE: DO NOT ENTER DASHES, SLASHES, OR SPACES.) |
| BBI (Bank to Bank Information) | Tax and Loss Bonds |
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