Redemption of First Israel Bonds Starts; Holders to Receive 150 Percent

Holders of 1951 Israel Independence Savings Bonds will be able to redeem their bonds beginning May 1, it was announced today by Dr. Joseph J. Schwartz, vice-president of the Israel Bond Organization.

The redemption procedure relating to Israel bonds is similar to the methods used in the collection of payment on other bonds. Almost any bank will arrange for the redemption of maturing Israel bonds, with payment made in dollars through a State of Israel check. Local Israel bond offices are prepared to assist bondholders in redemption.

Of the total $52,700,000 in Israel bonds that were sold in 1951, 59 percent were 15-year coupons that do not mature until 1966, and 41 percent were savings bonds that fall due this year, on the twelfth anniversary of the purchase of these bonds. Savings bonds dated May 1, 1951 will be redeemable on or after May 1, 1963; Savings bonds dated June 1, 1951 will be redeemed on or after June 1, of this year, and so on. Payment will be made on the basis of 150 percent of the issue price. Thus a person who redeems a $100 bond will receive $150.

In inviting holders to collect on maturing bonds, Dr. Schwartz stated that those persons who do not cash their bonds will not receive additional interest for any period beyond the due date of their bonds. However, he added that persons who wish to continue their investment in Israel’s economy should arrange to buy new Bonds after they have redeemed the bonds that have matured.

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