[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: 31CFR342.2]

[Page 249-250]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 342--OFFERING OF UNITED STATES SAVINGS NOTES--Table of Contents
 
Sec. 342.2  Description of notes.

    (a) General. Savings notes were issued only in registered form and 
are nontransferable.
    (b) Term. A savings note was dated as of the first day of the month 
in which payment of the purchase price was received by an issuing agent. 
A note had an original maturity period of 4 years and 6 months and has 
been granted two 10-year extensions of maturity and an additional 
extension of 5 years and 6 months with interest; it will reach

[[Page 250]]

final maturity 30 years from its issue date. A note cannot be called by 
the Secretary of the Treasury prior to maturity and was not redeemable 
during the first year from issue date. Thereafter, a note may be 
redeemed at the option and request of the owner.
    (c) Denominations and purchase prices. Savings notes were issued on 
a discount basis. The denominations and purchase prices were as follows:

------------------------------------------------------------------------
                                                              Purchase
                       Denomination                             price
------------------------------------------------------------------------
$25.......................................................        $20.25
50........................................................         40.50
75........................................................         60.75
100.......................................................         81.00
------------------------------------------------------------------------


Interest is paid as a part of the redemption value. A note increased in 
value one year after issue date and increases at the beginning of each 
half-year period thereafter until final maturity, at which time interest 
ceases to accrue. Interest on a note which is redeemed before maturity 
ceases to accrue at the end of the interest period next preceding the 
redemption date, except that if the note is redeemed on a date on which 
the redemption value increases, interest ceases to accrue on that date.
    (d) Inscription and issue. At the time of issue, the authorized 
issuing agent:
    (1) Inscribed on the face of each note the name and address of the 
owner and the name of the beneficiary, if any, or the names of the 
coowner;
    (2) Entered the issue date in the right-hand portion of the note in 
the space provided for that purpose; and
    (3) Imprinted thereunder, by use of the agent's validation indicia 
for the issue of Series E savings bonds, the date the note was actually 
inscribed. A note is valid only if an authorized issuing agent received 
payment therefor and duly inscribed, dated, imprinted validation indicia 
on the note and delivered it.