342.2—Description of notes.
(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 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:
| Denomination | Purchase 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.
(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.