[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: 31CFR321.7]

[Page 205-206]
 
                  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. 321.7  Authorized cash payments.

    (a) General. Subject to the terms and conditions appearing on the 
securities, the governing regulations, and the provisions of this part, 
and any instructions issued in connection therewith, an agent may make 
payment of savings bonds of Series A, B, C, D, E, EE, and I, and savings 
notes, presented for cash redemption. Except as provided in paragraphs 
(b) through (d), and (f) of this section, the securities must be 
presented by an individual whose name is inscribed on the securities as 
owner or coowner, and who is known to the agent, or who can establish 
his or her identity in accordance with Treasury instructions and 
guidelines (See Sec. 321.11(b)).
    (b) Change of name by marriage. If the name of the presenter has 
been changed by marriage from that shown on the security, and the agent 
knows or establishes that the presenter and the person whose name 
appears on the security are one and the same individual, the agent may 
pay the security in accordance with paragraph (a) of this section. The 
signature to the request for payment should show both names, e.g., 
``Mary J. Smith, changed by marriage from Mary T. Jones.''
    (c) Parent of a minor. Payment of a security bearing the name of a 
minor child, who is not of sufficient competency and understanding to 
sign the request for payment and comprehend the nature of the act, may 
be made to either parent with whom the minor resides or to whom custody 
has been granted, provided the form of registration does not indicate 
that a guardian or similar representative of the estate of the minor has 
been appointed or is otherwise legally qualified. Payment under this 
subsection may not be made to any person other than a parent. The parent 
requesting payment must sign the request for payment in the form, e.g., 
``John A. Jones, on behalf of John C. Jones.'' The following endorsement 
must be typed or imprinted on the back of the security:

    I certify that I am the (father or mother) of John C. Jones and the 
person (with whom he resides) (to whom custody has been granted). He is 
---- years of age and is not of sufficient competency and understanding 
to sign the request.

    (d) Payment to beneficiary. An agent may redeem a security 
registered ``A P.O.D. [payable on death to] B'' for cash at the request 
of the surviving beneficiary following the owner's death. A copy of the 
owner's death certificate, certified under seal of the State or local 
registrar, must be furnished to support the request for payment.
    (e) Payment to a legal representative designated on a security by 
name and title. An agent may redeem a security registered in the name 
and title of a legal representative as defined in Sec. 321.1(f), if the 
legal representative is known to the agent, or can establish identity in 
accordance with Treasury instructions and guidelines. The request for 
payment on the back of each security must be signed by the legal 
representative designated by name and title in the registration on the 
front of the security, or by a person authorized or empowered to act for 
a corporate legal representative so designated. The full title of the 
legal representative should be shown adjacent to each signature and, in 
the case of a corporate legal representative, the full corporate name, 
as well as the title, i.e., vice president, trust officer, etc., should 
be shown. Examples:

    Henry C. Smith, conservator of the estate of John R. White, an 
adult, pursuant to Sec. 633.572 of the Iowa Code.
    Tenth National Bank by Arnold A. Ames, Vice President, guardian of 
the estate of Barry B. Bryan, a minor.

    (f) Payment to a legal representative of a decedent's estate not 
designated on a security. An agent may redeem a security bearing the 
names of deceased persons in the registration, if the legal 
representative of the estate of the last deceased registrant:
    (1) Presents the security;
    (2) Signs the request for payment on the back of the security, 
showing the

[[Page 206]]

representative's full title adjacent to the signature; and
    (3) Presents acceptable evidence of the legal representative's 
appointment and of the dates of death of all persons named in the 
security's registration, in accordance with this part and the appendix.

In the case of a corporate legal representative, the full corporate 
name, as well as the title, must be shown. Examples:

    John H. Smith and Charles N. Jones, co-executors of the will of 
Robert J. Smith, deceased.
    Tenth National Bank by John F. Green, Trust Officer, executor of the 
will of George N. Brown, deceased.

    (g) Interest reporting. A paying agent is required to report 
interest in the amount of $10 or more, paid as part of the redemption 
value of securities, to the payee and to the Internal Revenue Service, 
in accordance with 26 CFR 1.6049-4. (See Item 26 of the appendix to this 
part for information concerning the education feature of Series EE 
savings bonds issued on or after January 1, 1990, and of Series I 
savings bonds.)

[53 FR 37511, Sept. 26, 1988, as amended at 55 FR 35395, Aug. 29, 1990; 
63 FR 38042, July 14, 1998]