THURSDAY, MAY 3, 1979
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INTEREST IS ONLY CREDITED WHEN CERTIFICATES ARE USED
TO PAY TAX AND NO INTEREST IS DUE WHERE THE PRINCIPAL VALUE OF A CERTIFICATE IS REPAID IN CASH.
THE NEW RATE WILL APPLY TO ALL CERTIFCATES ISSUED ON OR AFTER MAY 4, 1979.
CERTIFICATES ISSUED ON OR AFTER FEBRUARY 16, 1979, AND BEFORE MAY 4, 1979, WHEN THE RATE WAS 5.76 PER CENT WILL CONTINUE TO EARN INTEREST AT THAT RATE.
CERTIFICATES ISSUED ON OR AFTER SEPTEMBER 19, 1975, AND BEFORE FEBRUARY 17, 1977, WILL CONTINUE TO EARN INTEREST AT 4.2 PER CENT.
THOSE ISSUED ON OR AFTER FEBRUARY 17, 1977, AND BEFORE SEPTEMBER 22, 1978 WILL CONTINUE TO EARN INTEREST AT THREE PER CENT- THOSE ISSUED ON OR AFTER SEPTEMBER 22, 1978 AND BEFORE NOVEMBER 24, 1978, WILL CONTINUE TO EARN INTEREST AT 3.24 PER CENT AND THOSE
ISSUED ON OR AFTER NOVEMBER 24, 1978 AND BEFORE FEBRUARY 16, 1979 WILL CONTINUE TO EARN INTEREST AT 5.04 PER CENT, BUT ALWAYS SUBJECT TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX.
EXAMPLE
$1,000 CERTIFICATES PURCHASED ON MAY 4, 1979, JUNE 4, 1979 AND JULY 4, 1979 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON AUGUST 3, 1979, WILL HAVE INTEREST CALCULATED AS FOLLOWS:
ON $1,000 MAY 4; 1979 TO AUGUST 3, 1979, 3 COMPLETE MONTHS AT $6.70 PER MONTH
$20.10
ON $1,000, JUNE 4, 1979 TO AUGUST 3, 1979, 2 COMPLETE MONTHS AT $6.70 PER MONTH
$13.40
ON $1,000 JULY 4, 1979 TO AUGUST 3, 1979, 1 COMPLETE MONTH AT $6.70 PER MONTH
$ 6.70
INTEREST ACCRUED
$40.20
THE INTEREST ACCRUED IS ROUNDED OFF TO $41 IN ACCORDANCE WITH RULE 7 (3) OF TAX RESERVE CERTIFICATES (FOURTH SERIES) RULES.
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