[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: 31CFR321.11]

[Page 207-208]
 
                  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 D--Payment and Transmittal of Securities
 
Sec. 321.11  Payment.


    (a) Examination. Before making a payment of a security, a paying 
agent shall examine the security to determine that it is eligible for 
redemption and is one the agent is authorized to pay under the 
provisions of this part.
    (b) Identification and evidence of entitlement. The agent shall 
determine that the presenter of the security is entitled to request 
payment, as provided in Sec. 321.7 of this part. Unless the presenter is 
a person whose identity is well-known to the agent or is an established

[[Page 208]]

customer, he or she should be asked to furnish satisfactory 
identification in accordance with the Treasury instructions and 
guidelines. At the time of payment, the agent should make a notation on 
the back of the security, or in its own records, specifying precisely 
what was relied on to establish the presenter's identity.
    (c) Evidence--Payment to a beneficiary. The agent shall determine 
that the presenter of the security as beneficiary is entitled to request 
payment, as provided in Sec. 321.7(d). In addition to establishing the 
presenter's identification, as required by paragraph (b) of this 
section, the agent shall require presentation of the owner's death 
certificate in accordance with this part and the appendix.
    (d) Evidence--Payment to a legal representative of the last deceased 
registrant's estate. The agent shall determine whether the legal 
representative is entitled to request payment, as provided in 
Sec. 321.7(f). In addition to establishing the presenter's 
identification, as required by paragraph (b) of this section, the agent 
shall require evidence of appointment as well as evidence of the dates 
of death of all persons named in the registrations of the securities 
presented. Evidence of the representative's appointment must be either a 
court certificate or a copy of the letters of appointment, certified to 
be true and correct under seal of the court or clerk of court. If the 
original appointment was made more than one year prior to the 
presentation of the securities it must also bear the court clerk's 
statement that the appointment is in full force and effect. This 
statement must be under seal of the court or clerk of court and dated 
within six months of the presentation. Such evidence of appointment must 
pertain to the estate of the last deceased registrant designated on the 
securities. A copy of a death certificate, certified under seal of the 
State or local registrar, is the only acceptable evidence of the date of 
death.
    (e) Execution of request. (1) The agent shall require:
    (i) That the request for payment on the back of each security be 
signed by the presenter in the presence of one of its officers or 
authorized employees; and
    (ii) That the presenter's address be furnished. Fiduciaries must 
sign as provided in Sec. 321.7 (e) and (f).
    (2) If the agent is qualified under 31 CFR part 330 (Circular No. 
888, current revision) and elects to use the special endorsement 
procedure, the request for payment need not be signed. If the request 
has already been signed when the security is presented, it should be 
signed again.
    (f) Certification of request. An agent is not required to complete 
the certification to the requests for payment on securities it redeems. 
When an agent transmits redeemed securities for settlement, as indicated 
in Sec. 321.14 of this part, such agent shall be understood by such 
submission to have represented and certified that the identity of the 
presenter, and his or her entitlement to request payment, have been 
established in accordance with this part and the appendix hereto.

[53 FR 37511, Sept. 26, 1988, as amended at 55 FR 35396, Aug. 29, 1990; 
59 FR 10537, Mar. 4, 1994]