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FE D E R A L R E S E R V E B ANK O F N E W YORK Fiscal Agent of the United States r Circular No 7 8 9 8 1 L Ju n e 18, 1976 J Offering of $2,591,000,000 of 364-Day Treasury Bills Dated June 29, 1976 To Due June 28,1977 o?:d 7?%?? C a n d CoMCCfMcd, w F^&ra/ Di-yfricf; Following is the text of a notice issued yesterday by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for $2,591 million, or thereabouts, of 364-day Treasury bills to be dated June 29, 1976, and to mature June 28, 1977 (CUSIP No. 912793 D60). The bills will be issued for cash and in exchange for Treasury bills maturing June 29, 1976. This issue will not provide new money for the Treasury as the maturing issue is outstanding in the amount of $2,591 million, of which $1,341 million is held by the public and $1,250 million is held by Government accounts and the Federal Reserve Banks for them selves and as agents of foreign and international monetary authori ties. Additional amounts of the bills may be issued to Federal Reserve Banks as agents of foreign and international monetary authorities. Tenders from Government accounts and the Federal Reserve Banks for themselves and as agents of foreign and inter national monetary authorities will be accepted at the average price of accepted tenders. The bills will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value) and in bookentry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Wednesday, June 23, 1976. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions and 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 may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. Others will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. 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 Anal. Subject to these reservations, noncompetitive tenders for $500,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 29, 1976, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 29, 1976. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Department Circular No. 418 (current revision) and this notice prescibe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, June 23, 1976 at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this notice to submit a tender and return it in the enclosed envelope marked "Tender for Treasury Bills." Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. PaytM^wf ^or Pr^ajary cawMOf waJa &y cratP; (Aroa^/t fAa Praa^ary Pa^r awe? Loan z4ccoaMf. .Saff/awew; wajf wtaefa fw ca^A or ofAar fwwadfafafy a-pai/oMa JaaJy or fa wafarwy Praa^ary MPy. P A U L A . VOLCKER, Prandanf. TENDER FOR 364-DAY TREASURY BILLS PRIVACY ACT STATEMENT: The individual identifiable information required on this form is necessary to permit the tender to be processed and the bills to be issued, m accordant with the General Regulations governing United States securities (Department Circular No. 300) and the Regulations governing Treasury Bills (Department Circular No. 418). The transaction will not be completed unless all required data is furnished. Dated June 29,1976 Due June 28,1977 Dated a t ........................................................ To FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States ............................................. , 19— Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills 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: COMPETITIVE TENDER Do no? /ii/ in %ifiw $.......................................................... (maturity value) or any lesser amount that may be awarded. Cowt^Mivf and an ane /arm NONCOMPETITIVE TENDER $.......................................................... (maturity value) (Wo? /o a^raaad #300,000 /or on? idddar fhroM^h of/ jonraai) P rice: .................................................... per 100. at the average price of accepted competitive bids, (Priaa war? wiM Mo? wara Man Mraa dacitnoi /daaa-f, /or a-arctn/da, 99.923) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination Maturity value $ 10,000 D 1. Deliver over the counter to the undersigned D 2. Ship to the undersigned 15,000 D 3. Hold in safekeeping (for mem ber bank only) in— D Investment Account n General Account D Trust Account 50,000 100,000 500,000 1,000,000 Payment will be made as follows: n By charge to our reserve account D By cash or check in imtnadiaff/y a&ada&ia /Muds on delivery fPaytMfM? fanno? Traarnry Ta^r and Loan ^dcaaMnf) D 5. Special instructions: D 4. Allotment transfer (see list attached) (No a/tan^ar in daiivary insMaaiianr will 3a aaaa/dad) Totals The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. Insert tAis tender in specie/ enve/ope ?ncrAed "Tender /or Treasury Bids" (Address— inch City and State) (Banking institutions submitting tenders for customer account must list customers' names on lines below or on an attached rider) (Name of customer) (Name of customer) INSTRUCTIONS: 1. No tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity value). 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders of Mo rawa /riaa and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid tor his account. Others will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an ofhcer 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 hrm, who should sign in the form '*.................................................................................. . a copartnership, by ............................................................................. . a member of the firm." 4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 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. Rtv. 3/76
@FedFRASER