[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: 31CFR321.8]

[Page 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. 321.8  Redemption-exchange of Series E and EE savings bonds and savings notes.

    (a) General. Subject to the provisions of Circular No. 2-80 (31 CFR 
part 352), the governing regulations, and the provisions of this part 
and its appendix, an agent may make payment of eligible securities 
presented for redemption in exchange for Series HH bonds. Securities 
eligible for exchange are:
    (1) Series EE bonds presented no earlier than six months from their 
issue dates; and
    (2) Series E bonds and savings notes presented no later than one 
year from the month in which they reached final maturity. The total 
redemption value of the securities presented for exchange must be at 
least $500.
    (b) Requirements for redemption-exchange. An agent shall not accept 
and redeem eligible securities on exchange unless:
    (1) The securities are accompanied by a completed exchange 
subscription signed by the presenter;
    (2) The presenter is the owner, the legal representative (excluding 
a representative of a decedent's estate), the surviving coowner or 
beneficiary, or the principal coowner (as defined in Sec. 352.7(e)(2) in 
31 CFR part 352 (Circular No. 2-80)) of the securities presented for 
exchange and is to be named as owner or first-named coowner on the 
Series HH bonds; and
    (3) The request for payment on each security is signed by the 
presenter. A presenter who is a legal representative should show the 
full title adjacent to each signature and, in the case of a corporate 
legal representative, should show the full corporate name, as well as 
the title. If the name of the presenter has been changed by marriage, or 
if the presenter is named as beneficiary or legal representative on the 
securities, the agent may process the transaction in accordance with the 
provisions of Sec. 321.7 (b), (d), or (e) of this part. If the agent is 
authorized and elects to use the special endorsement procedure, set out 
in 31 CFR part 330 (Circular No. 888, current revision), the requests 
for payment do not need to be signed; however, this special endorsement 
may not be used in lieu of the presenter's signature on the exchange 
subscription.
    (c) Interest reporting. To the extent that it represents interest of 
$10 or more, a paying agent is required to report cash, refunded in an 
exchange transaction, to the presenter and to the Internal Revenue 
Service under the provisions of 26 CFR 1.6049-4.
    (d) Completion of transaction. An agent shall transmit for 
settlement via EZ CLEAR securities redeemed on exchange and, at the same 
time, forward the exchange application (PD F 3253) and any additional 
cash needed to complete the transaction, to the Fiscal Agency Department 
of the servicing Federal Reserve Bank referred to in Sec. 321.25. 
Securities redeemed on exchange may be commingled with cash redemptions 
in mixed or separately sorted cash letters.''

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

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