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Tax and Loss Bonds

United States Mortgage Guaranty Insurance Company Tax and Loss Bonds are purchased by companies involved in mortgage guaranty insurance, lease guarantee insurance, and insurance of state and local obligations against loss on their loans. State insurance commissions may require companies to create a contingency loss reserve for use when losses exceed a specific percentage of premiums.

A federal tax deduction is allowed on the funds put into this reserve if the company purchases Tax and Loss Bonds in the amount of the tax benefit and under applicable laws.

  • Tax and Loss Bonds are non-interest bearing book-entry securities that mature 10 or 20 years from the designated issue date.
  • The bonds are issued in a minimum amount of $1,000 or in any larger amount, in increments of not less than $1.00.

Subscribers may purchase Tax and Loss Bonds by faxing an application form, PD F 3871 to (304) 480-5277. You can also mail the form to:

The Bureau of the Fiscal Service
Special Investments Branch
P.O. Box 396
Parkersburg, WV 26106-0396

Payments are received through the Fedwire funds transfer system. After September 24, 1997, all book-entry bonds are paid by ACH (Automated Clearing House). Your financial institution will send funds for purchase using the Fedwire funds transfer system. Instructions for the Fedwire funds transfer system are shown below:

FIELD NAME DESCRIPTION
Sender ABA ABA Number of Financial Institution Submitting Funds
Name (Sender) Name of the Financial Institution Submitting Funds
Receiver ABA Enter 051036476
Name (Receiver) Enter TREAS BPD SIB
Type Code Enter 1000
Amount Amount of Payment
ORG (Originator) Name of the Owner (Name of Company purchasing bonds)
Product-Code Enter BTR
RFB (Reference to the Beneficiary Information) The Owner's Employer Identification Number (EIN of the Company
NOTE: DO NOT ENTER DASHES, SLASHES, OR SPACES.)
BBI (Bank to Bank Information) Tax and Loss Bonds

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