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FED ER A L RESERVE BANK OF NEW YORK Fiscal Agent of the United States rCircular No. 68321 L November 5, 1971J Auction of $23/4 Billion of 15-Month 47s Percent Treasury Notes To All Banking Institutions, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of the details o f the T reasury’s note auction announced in our Circular No. 6831, dated November 4, 1971: The $2% billion, or thereabouts, of 4 % % 15-month Treasury Notes of Series D-1973 to be sold at auction under competitive and noncompetitive bidding will be issued on November 15, 1971, and will mature February 15, 1973. Commercial banks, which for this purpose are de fined as banks accepting demand deposits, may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. The notes will be issued in registered and bearer form in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Interest will be payable on February 15 and August 15, 1972 and February 15, 1973. Tenders will be received without deposit from com mercial and other banks for their own account, Fed erally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, pub lic pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Govern ment securities and report daily to the Federal Re serve Bank of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of notes applied for. Tenders for the notes will be received up to 1:30 p.m., Eastern Standard time, Tuesday, November 9, 1971, at any Federal Reserve Bank or Branch and at the Office of the Treasurer of the United States, Wash ington, D. C. 20220; provided, however, that non competitive tenders will be considered timely received if they are mailed to any such agency under a post mark no later than November 8. Each tender must be in the amount of $1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term ‘ ‘ noncompetitive, ’ ’ if it is a noncompetitive tender. The price on com petitive tenders must be expressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99.76 will not be accepted. Fractions may not be used. The notation “ TEN DER FOR TREASU RY N O TE S” should be printed at the bottom of the envelope in which the tender is submitted. Public announcement will be made of the amount and price range of accepted tenders. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly re serves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations noncom petitive tenders for $400,000 or less will be accepted in full at the average price (in two decimals) of accepted competitive tenders. This price may be 100.00, or more or less than 100.00. Payment for accepted tenders must be completed on or before Monday, November 15, 1971, at the Federal Reserve Bank or Branch or at the Office of the Treasturer of the United States in cash, 5 % % Treasury Notes of Series B-1971, 7 % % Treasury Notes of Series G-1971 or 3 % % Treasury Bonds of 1971, which will be accepted at par, or other funds immediately avail able to the Treasury by that date. Where full payment is not completed in funds available by the payment date, the allotment will be cancelled and the deposit with the tender up to 5 percent of the amount of notes allotted will be subject to forfeiture to the United States. Nonbank investors should understand that their checks will constitute payment only if they are fully and finally collected by the payment date, Monday, November 15, 1971. Checks not so collected will sub ject the investor’s deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at a Federal Reserve Bank received on the payment date will not constitute immediately available funds on that date. The Treasury will construe as timely payment any check payable to the Federal Reserve Bank or the Treasurer of the United States that is received at such bank or office by Wednesday, Novem ber 10, 1971, provided the check is drawn on a bank in the Federal Reserve District of the bank or office to which the tender is submitted. A check submitted for the full amount of a tender should be, in the case of a tender at a competitive price, equal to the total purchase price of the notes bid for, or, in the case of a noncompetitive tender, equal to the full face amount of the notes bid for. Bidders on a noncom petitive basis who submit checks for the face amount of the notes bid for will be ( 1) required to pay an additional amount if the purchase price is more than 100, or (2 ) paid the difference if the purchase price is less than 100. Commerical banks are prohibited from making un secured loans, or loans collateralized in whole or in part by the notes bid for, to cover the deposits re quired to be paid when tenders are entered, and they will be required to make the usual certification to that effect. Other lenders are requested to refrain from making such loans. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of the notes bid for under this offering at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, Tuesday, November 9, 1971. Payment for the notes may not be made by credit to Treasury tax and loan accounts. The terms of this offering are set forth in Treasury Department Circular No. 13-71, Public Debt Series, a copy of which is printed on the following pages. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Tuesday, November 9, 1971, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the enclosed tender forms to submit tenders, and return them in the enclosed envelope marked “ Tender for Treasury Notes.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Settlement for accepted tenders may be made in cash, 5% percent Treasury Notes of Series B-1971, 7% percent Treasury Notes of Series G-1971, 3% percent Treasury Bonds of 1971, or other immediately available funds. Settlement cannot be made by credit through the Treasury Tax and Loan Account. A lf r e d H a y e s , President. jL iv iru itl A N T — Closing time for receipt of this tender is 1:30 p.m., Tuesday, November 9,1971. TENDER FOR 4% PERCENT TREASURY NOTES OF SERIES D-1973 Dated November 15,1971 F ederal R eserve B ank of N e w Y Due February 15,1973 Dated a t .................................................. ork, Fiscal Agent of the United States, N ew York, N. Y. 10045 ....................................................... ,1971 Pursuant to the provisions o f Treasury Department Circular No. 13-71, Public Debt Series, dated Novem ber 5, 1971, the undersigned hereby offers to purchase United States o f America 4% percent Treasury Notes of Series D-1973 in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below. COM PETITIVE TENDER Do not fiU in both Competitive and Noncompetitive tenders on one form NONCOMPETITIVE TENDER $ ......................................................... (maturity value), or any lesser amount that may be awarded. $ .................................................... ( maturity value) Price: ...................... per 100 (minimum of 99.76). at the average price of accepted competitive bids. ( Not to exceed $400,000 for one bidder through all sources) (Price must be expressed with not more than two decimal places, for example, 100.00) Subject to allotment, please issue, deliver, and accept payment for the notes as indicated below ( i f registered notes are desired, please also complete schedule on reverse sid e): Pieces Denomination $ □ 1. Deliver over the counter to the undersigned 1,000 □ 2. Ship to the undersigned 5,000 □ 10,000 100,000 Maturity value Payment will be made as follows: □ By charge to our account on your books 3. Hold in safekeeping (for ac count of member bank only)* □ By cash or check in immediately available funds on delivery □ 4. Hold as collateral for Treas ury Tax and Loan Account* □ □ 5. Special instructions: By surrender of maturing secu rities listed in Section I of offi cial offering circular 1,000,000 Totals (N o will be accepted) * The undersigned certifies that the allotted notes will be owned solely by the undersigned. W e hereby agree not to buy or sell, or to make any agreements with respect to the purchase or sale or other disposition of any notes of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Tuesday, November 9, 1971. (If a commercial bank is subscribing for its own account or for account of customers, the following certifications are made a part of this tender.) W e H e r e b y C e r t i f y that w e have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part o f this tender; that there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that w e have not made unsecured loans, or loans collateralized in whole or in part by the notes bid for, to supply the amounts o f such payments to any of such customers; that w e have no beneficial interest in the tenders of such customers; and that none o f our customers has any beneficial interest in the amount bid for our own account. W e F u r t h e r C e r t i f y that tenders received by us, if any, from other commercial banks for their own account and for the account of their customers have been entered with us under the same conditions, agree ments, and certifications as set forth in this form. ( Name of subscriber — please print or type) Insert this tender in special envelope marked “Tender for Treasury Notes” ( Address — please print or type) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (Banks submitting tenders for customer account must indicate names on reverse side hereof) INSTRUCTIONS: 1. No tender for less than $1,000 will be considered and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than commercial banks will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation author ized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ................................................................................ . a copartnership, by ............................. ............................................. . a member of the firm.” 4. Tenders will be received without deposit from commercial and other banks for their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of notes applied for. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. 4% Percent Treasury Notes of Series D-1973 Desired in Registered Form (If space is insufficient in schedule below, attach separate listing) Name in which notes shall be registered, taxpayer identifying number (Social Security Account Number or Employer Identification Number), and post-office address for interest checks and other mail. ( Please print or typewrite ) (Indicate under appropriate denominations, number of notes desired.) Amount $1,000 $5,000 $10,000 $100,000 $1,000,000 Nam e .................................................................... Ident. No. . .. ........ Address ................................................................. N a m e .................................................................... Ident. N o ............................................................... Address ................................................................. N a m e .................................................................... Ident. N o ............................................................... Address ................................................................. Name .................................................................... Ident. N o ............................................................... Address ................................................................ N a m e .................................................................... Ident. N o ............................................................... Address ................................................................ ------------------------------------------------------------------------------------------------------------------------------ ----------- ----— ....................... (I f registered notes are not to be sent to the registered owner, give mailing information below .) Mail registered notes t o ................................................................................................................... (For use of commercial bank subscribers only) List of Customers Included in this Subscription (If space is insufficient in schedule below, attach separate listing) Name of ultimate purchaser Amount subscribed Name of ultimate purchaser Amount subscribed UNITED STATES OF AMERICA 4% PERCENT TREASURY NOTES OF SERIES D-1973 Dated and bearing interest from November 15, 1971 D EP A R T M E N T CIRCULAR Public Debt Series — No. 13-71 Due February 15, 1973 D E P A R T M E N T OF TH E TR E A SU R Y , Office of the Secretary, Washington, November 5,1971. I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites tenders at a price not less than 99.76 percent of their face value for $2,750,000,000, or thereabouts, of notes of the United States, designated 4% percent Treasury Notes of Series D-1973. An additional amount of the notes will be allotted by the Secretary of the Treasury to Government Accounts and Federal Reserve Banks at the average price of accepted tenders in exchange for Treasury notes and bonds maturing November 15, 1971. Tenders will be received up to 1 :30 p.m., Eastern Standard time, Tuesday, November 9, 1971 under competitive and noncompetitive bidding, as set forth in Section III hereof. The 5% percent Treasury Notes of Series B-1971, 7% percent Treasury Notes of Series G-1971, and 3% percent Treasury Bonds of 1971 maturing November 15, 1971, will be accepted at par in payment, in whole or in part, to the extent tenders are allotted by the Treasury. II. DESCRIPTION OF NOTES 1. The notes will be dated November 15, 1971, and will bear interest from that date at the rate of 4% percent per annum, payable on a semiannual basis on February 15 and August 15, 1972, and February 15, 1973. They will mature February 15, 1973, and will not be subject to call for redemption prior to maturity. 2. The income derived from the notes is subject to all taxes imposed under the Internal Revenue Code of 1954. The notes are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The notes will be acceptable to secure deposits of public moneys. They will not be acceptable in pay ment of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations of $1,000, $5,000, $10,000, $100,000, and $1,000,000. Provision will be made for the interchange of notes of different denominations and of coupon and registered notes, and for the trans- fer of registered notes, under rules and regulations prescribed by the Secretary of the Treasury. 5. The notes will be subject to the general regula tions of the Department of the Treasury, now or here after prescribed, governing United States notes. III. TENDERS AND ALLOTMENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington, D. C. 20220, up to the closing hour, 1:30 p.m., Eastern Standard time, Tuesday, November 9, 1971. Each tender must state the face amount of notes bid for, which must be $1,000 or a multiple thereof, and the price offered, except that in the case of noncompetitive tenders the term “ noncompetitive” should be used in lieu of a price. In the case of competitive tenders, the price must be expressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99.76 will not be accepted. Fractions may not be used. Noncompetitive tenders from any one bidder may not exceed $400,000. It is urged that tenders be made on the printed forms and forwarded in the special envelopes marked “ Tender for Treasury Notes” , which will be supplied by Federal Reserve Banks on application therefor. 2. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may sub mit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from banking institu tions for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retire ment and other public funds, international organiza tions in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks and Government accounts. Tenders from others must be accompanied by payment (in cash or the securities referred to in Section I which will be accepted at par) of 5 percent of the face amount of notes applied for. 3. Immediately after the closing hour tenders will be opened, following which public announcement will be made by the Department of the Treasury o f the amount and price range of accepted bids. Those sub mitting tenders will be advised of the acceptance or rejection thereof. In considering the acceptance of tenders those at the highest prices will be accepted to the extent required to attain the amount offered. Tenders at the lowest accepted price will be prorated if necessary. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price1 (in two decimals) of accepted com petitive tenders. 4. All bidders are required to agree not to pur chase or to sell, or to make any agreements with re spect to the purchase or sale or other disposition of any notes of this issue at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, Tuesday, November 9, 1971. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial interest in any of the tenders they enter for the account of their customers, and that their customers have no beneficial interest in the banks’ tenders for their own account. IV. PAYMENT 1. Settlement for accepted tenders in accordance with the bids must be made or completed on or before November 15, 1971, at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States, Washington, D. C. 20220, in cash, securities referred to in Section I (interest coupons dated November 15, 1971, should be detached) or other funds immediately available by that date. Payment will not be deemed to have been completed where reg istered notes are requested if the appropriate identi fying number as required on tax returns and other documents submitted to the Internal Revenue Service (an individual’s social security number or an em ployer identification number) is not furnished. In every ease where full payment is not completed, the payment with the tender up to 5 percent of the amount of notes allotted shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States. When payment is made i Average price may be at, or more or less than 100.00. with eligible securities a cash adjustment will be made to or required of the bidder for any difference between the face amount of securities submitted and the amount payable on the notes allotted. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Registered securities tendered as deposits and in payment for notes allotted hereunder should be as signed by the registered payees or assignees thereof, in accordance with the general regulations of the Department of the Treasury, in one of the forms here after set forth. Securities tendered in payment should be surrendered at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States, Washington, D. C. 20220. The securities must be delivered at the expense and risk of the holder. If the notes are desired registered in the same name as the securities surrendered, the assignment should be to ‘ ‘ The Secretary of the Treasury for 4% percent Treasury Notes of Series D-1973” ; if the notes are desired registered in another name, the assignment should be to “ The Secretary of the Treasury for 4% percent Treasury Notes of Series D-1973 in the name .....................................................................’ ’ ; if notes in coupon form are desired, the assignment should be to ‘ ‘ The Secretary of the Treasury for 4% percent Treasury Notes of Series D-1973 in coupon form to be delivered t o .............................................................. YI. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive tenders, to make such allotments as may be prescribed by the Secretary of the Treasury, to issue such notices as may be necessary, to receive payment for and make delivery of notes on full-paid tenders allotted, and they may issue interim receipts pending delivery of the definitive notes. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offer ing, which will be communicated promptly to the Federal Reserve Banks. CHARLS E. W ALKER, Acting Secretary of the Treasury.
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