[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR321.10]

[Page 207]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 321--PAYMENTS BY BANKS AND OTHER FINANCIAL INSTITUTIONS OF UNITED STATES SAVINGS BONDS AND UNITED STATES SAVINGS NOTES (FREEDOM SHARES)--Table of Contents
 
                      Subpart C--Scope of Authority
 
Sec. 321.10  Responsibilities of paying agents.

    (a) Payment of securities. A paying agent is required to redeem 
eligible securities during its regular business hours for any presenter, 
whether or not a customer, who can establish his or her identity as the 
owner or co-owner named on the securities, in accordance with the 
provisions of this part, and the appendix to this part, and the Treasury 
Identification Guide for Cashing United States Savings Bonds. An agent 
is encouraged, but is not required, to redeem eligible securities during 
its regular business hours for a surviving beneficiary, a legal 
representative designated in the registration of securities presented, 
or a legal representative of the last deceased registrant's estate who 
can provide acceptable evidence (see Sec. 321.7 (d) or (f)) and 
establish identity in accordance with this part.
    (b) Restrictions. A paying agent shall not advance money, make loans 
on, or discount the redemption value of securities, nor in any manner 
assist others to do so. An agent shall not pay a presenter the current 
value of a security and then defer presentation to the Treasury for the 
purpose of obtaining for its own profit an increased value.

[53 FR 37511, Sept. 26, 1988, as amended at 55 FR 35396, Aug. 29, 1990]