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FEDER AL RESERVE BANK OF N E W YORK Fiscal Agent of the United States Circular No. 8069 March 11, 1977 TREASURY TO AUCTION $2,500 MILLION OF 2-YEAR NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statem ent was issued yesterday by the Treasury Department: The Department of the Treasury will auction $2,500 million of 2-year notes to refund $2,053 million of notes held by the public maturing March 31, 1977, and to raise $447 million new cash. Additional amounts of these notes may be issued at the average price of accepted tenders to Government accounts and to Federal Reserve Banks for their own account in exchange for $523 million maturing notes held by them, and to Federal Reserve Banks as agents of foreign and international monetary authorities for new cash only. Printed on the reverse side is a table summarizing the highlights of the offering. Copies of the official offering circular will be furnished upon request. Bidders subm itting noncompetitive tenders should realize that it is possible that the average price may be above par, in which case they would have to pay more than the face value for the securities. If payment is made by check, the check should be a certified personal check or an official bank check, payable on its face to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. Enclosed is a copy of the form to be used in submitting tenders. If there is any doubt that tenders sent by mail will reach this Bank or its Branch on time, bidders should use other means of transm itting their tenders. A recorded message (at the Head Office — Tel. No. 212-791-5823; at the Buffalo Branch — Tel. No. 716-849-5046) provides information about this and other Treasury offerings; additional inquiries regarding this offering may be made by calling, at the Head Office, Telephone No. 212-791-6619 or 212-791-5465, or, at the Buffalo Branch, Tel. No. 716-849-5016. PAUL A. VOLCKER, President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED MARCH 31,1977 Amount Offered: To the public................................. $2,500 million Description of Security: Term and type of security............ 2-year notes Series and CUSIP designation . .. Series N-1979 (CUSIP No. 912827 GP1) Maturity d a t e ............................... March 31, 1979 Call d a t e ....................................... No provision Interest coupon ra te ..................... To be determined, based on the average of accepted bids Investment yield......................... To be determined at auction Premium or discount................. To be determined after auction Interest payment dates................ September 30 and March 31 Minimum denomination available $ 5,000 Terms of Sale: Method of sale .............................................. Yield auction Accrued interest payable by investor............ None Preferred allotm ent....................................... Noncompetitive bid for $1,000,000 or less Deposit requirement....................................... 5% of face amount Deposit guarantee by designated institutions Acceptable Key Dates: Deadline for receipt of tenders.......................................................................... Tuesday, March 22, 1977 by 1:30 p.m., EST Settlement date (final payment due) a) Cash or Federal funds......................... *....................................................... Thursday, March 31, 1977 b) Check drawn on bank within FRB district where submitted..................... Monday, March 28, 1977 c) Check drawn on bank outside FRB district where subm itted................... Friday, March 25, 1977 Delivery date for coupon securities.................................................................... Thursday, March 31, 1977 UNITED STATES OF AMERICA TREASURY NOTES OF MARCH 31, 1979 SERIES N-1979 DEPARTMENT CIRCULAR Public Dept Series — No. 7-77 DEPARTMENT OF THE TREASURY, Office of the Secretary, Washington, March 11, 1977. 1. INVITATION FOR TENDERS 3. SALE PROCEDURES 3.1 Tenders will be received at Federal Reserve 1.1 The Secretary of the Treasury, pursuant to the Banks and Branches and at the Bureau of the Public authority of the Second Liberty Bond Act, as amended, Debt, Washington, D.C. 20226, up to 1:30 p.m., Eastern invites tenders for $2,500,000,000, or thereabouts, of Standard time, Tuesday, March 22, 1977. Non securities of the United States, designated Treasury competitive tenders, as defined below, will be considered Notes of March 31, 1979, Series N-1979 (CUSIP No. timely if postmarked no later than Monday, March 21, 912827 GP1). The securities will be sold at auction with 1977. bidding on the basis of yield. Payment will be required at the price equivalent of the bid yield of each accepted 3.2 Each tender must state the face amount of tender. The interest rate on the securities and the price securities bid for, which must be $5,000 or a multiple equivalent of each accepted bid will be determined as thereof. Competitive tenders must also show the yield set forth below. Additional amounts of these securities desired, expressed in terms of an annual yield with two may be issued in exchange for maturing Treasury securi decimals, e.g., 7.11%. Common fractions may not be ties, to Government accounts and Federal Reserve Banks used. Noncompetitive tenders must show the term “non for their own account and, for cash, to Federal Reserve competitive” on the tender form in lieu of a specified Banks as agents of foreign and international monetary yield. No bidder may submit more than one noncompeti authorities. tive tender, and the amount may not exceed $1,000,000. 2. DESCRIPTION OF SECURITIES 2.1 The securities will be dated March 31, 1977, and will bear interest from that date, payable on a semiannual basis on September 30, 1977, and each 6 months thereafter on March 31 and September 30 until the principal becomes payable. They will mature March 31, 1979, and will not be subject to call for redemption prior to maturity. 2.2 The income derived from the securities is subject to all taxes imposed under the Internal Revenue Code of 1954. The securities are subject to estate, in heritance, 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. 2.3 The securities will be acceptable to secure deposits of public moneys. They will not be acceptable in payment of taxes. 2.4 Bearer securities with interest coupons attached, and securities registered as to principal and interest, will be issued in denominations of $5,000, $10,000, $100,000 and $1,000,000. Book-entry securities will be available to eligible bidders in multiples of those amounts. Interchanges of securities of different denom inations and of coupon, registered and book-entry securities, and the transfer of registered securities will be permitted. 2.5 The securities will be subject to the general reg ulations of the Department of the Treasury governing United States securities, now or hereafter prescribed. 3.3 Commercial banks, which for this purpose are defined as banks accepting demand deposits, and primary dealers, which for this purpose are defined as 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 and the amount for each customer are furnished. Others will not be permitted to submit tenders except for their own account. 3.4 Tenders will be received without deposit for their own account from commercial banks and other banking institutions; primary dealers, as defined above; Federally-insured savings and loan associations; States, and 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; Federal Reserve Banks; and Government accounts. Tenders from others must be accompanied by a deposit of 5% of the face amount of securities applied for (in the form of cash, maturing Treasury securities or readily collectible checks), or by a guarantee of such de posit by a commercial bank or a primary dealer. 3.5 Immediately after the closing hour, tenders will be opened, following which public announcement will be made of the amount and yield range of accepted bids. Subject to the reservations expressed in Section 4, noncompetitive tenders will be accepted in full at the [Ref. Cir. No. 8069 (Over) average price (in three decimals) of accepted competitive tenders, and competitive tenders with the lowest yields will be accepted to the extent required to attain the amount offered. Tenders at the highest accepted yield will be prorated if necessary. After the determination is made as to which tenders are accepted, a coupon rate will be determined at a 1/8 of one percent increment that translates into an average accepted price close to 100.000 and a lowest accepted price above the original issue discount limit of 99.500. That rate of interest will be paid on all of the securities. Based on such interest rate, the price on each competitive tender allotted will be deter mined and each successful competitive bidder will be required to pay the price equivalent to the yield bid. Price calculations will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. If the amount of noncompetitive tenders received would absorb all or most of the offering, competitive tenders will be accepted in an amount sufficient to pro vide a fair determination of yield. Tenders received from Government accounts and Federal Reserve Banks will be accepted at the average price of accepted competitive tenders. 3.6 Those submitting competitive tenders will be advised of the acceptance or rejection thereof. Those submitting noncompetitive tenders will not be notified except when the tender is not accepted in full or when the price is over par. 4. RESERVATIONS 4.1 The Secretary of the Treasury expressly re serves the right to accept or reject any or all tenders in whole or in part, to allot more or less than the amount of securities specified in Section 1, and to make different percentage allotments to various classes of applicants when he deems it to be in the public interest, and the Secretary’s action in any such respect shall be final. 5. PAYMENT AND DELIVERY ual’s social security number or an employer identifica tion number) is not furnished. When payment is made in securities, a cash adjustment will be made to or required of the bidder for any difference between the face amount of securities presented and the amount payable on the securities allotted. 5.2 In every case where full payment is not com pleted on time, the deposit submitted with the tender, up to 5 percent of the face amount of securities allotted, shall, at the discretion of the Secretary of the Treasury, be forfeited to the United States. 5.3 Registered securities tendered as deposits and in payment for securities allotted hereunder are not re quired to be assigned if the new securities are to be regis tered in the same names and forms as appear in the registrations or assignments of the securities surren dered. Specific instructions for the issuance and delivery of the new securities, signed by the owner or his autho rized representative, must accompany the securities pre sented. Otherwise, the presented securities should be assigned by the registered payees or assignees thereof in accordance with the general regulations governing United States securities, as hereinafter set forth. When the new securities are to be registered in names and forms different from those in the inscriptions or assign ments of the securities presented, the assignment should be to “The Secretary of the Treasury for (securities offered herein) in the name of (name and taxpayer identifying number).” If new securities in coupon form are desired, the assignment should be to “The Secretary of the Treasury for coupon (securities offered herein) to be delivered to (name and address).” Securities tendered in payment should be surrendered to the Federal Reserve Bank or Branch or to the Bureau of the Public Debt, Washington, D.C. 20226. The securities must be de livered at the expense and risk of the holder. 5.4 If bearer securities are not ready for delivery on the settlement date, purchasers may elect to receive interim certificates. These certificates shall be issued in bearer form and shall be exchangeable for the securities offered herein, when such securities are available, at any Federal Reserve Bank or Branch or at the Bureau of the Public Debt, Washington, D.C. 20226. The interim certificates must be returned at the risk and expense of the holder. 5.5 Delivery of securities in registered form will be made after the requested form of registration has been validated, the registered interest account has been established and the securities have been inscribed. 5.1 Settlement for securities allotted hereunder must be made or completed on or before Thursday, March 31, 1977, at the Federal Reserve Bank or Branch, or the Bureau of the Public Debt, wherever the tender was submitted. Payment must be in cash; in other funds immediately available to the Treasury; in Treasury bills, notes or bonds (with all coupons detached) maturing on or before the settlement date but which are not overdue as defined in the general regulations governing United States securities; or by check drawn to the order of the 6. GENERAL PROVISIONS institution to which the tender was submitted, which must be received at such institution no later than: 6.1 As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive (a) Monday, March 28, 1977, if the check is tenders, to make such allotments as may be prescribed drawn on a bank in the Federal Reserve District of the by the Secretary of the Treasury, to issue such notices as institution to which the check is submitted (the Fifth may be necessary, to receive payment for and make Federal Reserve District in case of the Bureau ol the delivery of securities on full-paid allotments, and to issue Public Debt), or interim certificates pending delivery of the definitive (b) . Friday, March 25,1977, if the check is drawn on securities. a bank in another Federal Reserve District. 6.2 The Secretary of the Treasury may at any time, Checks received after the dates set forth in the preceding or from time to time, prescribe supplemental or sentence will not be accepted unless they are payable at amendatory rules and regulations governing the offering, the applicable Federal Reserve Bank. Payment will not which will be communicated promptly to the Federal be deemed to have been completed where registered Reserve Banks. securities are requested if the appropriate identifying W. MICHAEL BLUMENTHAL, number as required on tax returns and other documents Secretary of the Treasury. submitted to the Internal Revenue Service (an individ IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, March 22, 1977 TENDER FOR TREASURY NOTES OF SERIES N-1979 PRIVACY ACT STATEMENT — I he individually identifiable information required on this form is necessary to permit the subscription to be processed and the securities to be issued. If registered securities are requested, the regulations governing United States securities (Department Circular No. 300) and the offering circular require submission of social security numbers; the numbers and other information are used in inscribing the securities and establishing and servicing the ownership and interest records. The transaction will not be completed unless all required data is furnished. Dated March 31, 1977 Due March 31, 1979 FEDERA L RESERVE BANK OF NEW YO R K , Fiscal Agent of the United States, New York. N.Y. 10045 Dated at , 19 .. The undersigned hereby offers to purchase United States of America Treasury Notes of Series N-1979 in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price awarded on this tender. COMPETITIVE TENDER Do not fill in both Competitive and Noncompetitive tenders on one form $ ........................................................ (maturity value) or any lesser amount that may be awarded. Y ield:........ NONCOMPETITIVE TENDER 5 ........................................................(maturity value) (Not to exceed $1,000,000for one bidder through all sources) at the average price of accepted competitive bids. (Yield must be expressed with not more than two decimal places, for example, 7.11) Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and on the reverse side (if registered securities are desired, please also complete schedule on reverse side): Pieces Denomination XXX xxxxxx $ Maturity value XXX XXX 5,000 10,000 XXX 1. Deliver over the counter to the undersigned 1 I 2. Ship to the undersigned I | 3. Hold in safekeeping (for member bank only) in — Investment Account ] General Account | | 100,000 1,000,000 Payment will be made as follows: ] By charge to our reserve account ] By cash or check in immediately available funds 1 I By surrender of maturing securities I I ___ HUM nw uum 4. Hold as collateral for Treasury Tax and Loan Account * ,— . '—‘ . , . pecia instructions (No changes in delivery instructions will be accepted) Totals * The undersigned certifies that the allotted securities will be owned solely by the undersigned. (If a commercial bank or dealer is subscribing for its ow n account or for account of customers, the following certifications are made a part of this tender.) WE HEREBY CERTIFY that we have received tenders from our customers in the amounts set forth opposite the customers’ names on the list which is made a part of this tender, and that we have either received and are holding for the Treasury or we guarantee payment to the Treasury of deposits stipulated in the official offering circular. WE FURTHER CERTIFY 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) I n s e r t th is te n d e r in s p e c ia l e n v e lo p e m a r k e d (Address — incl. City and State) (Tel. No.) “ T e n d e r fo r T rea su ry N o te s o r B o n d s ” (Signature of subscriber or authorized signature) (Title of authorized signer) (Institutions submitting tenders tor 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 $5,000 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 at the same yield and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 3. 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, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of the securities applied for. 4. Payment must be completed by March 31, 1977. If payment is by check drawn on a bank in this District, it must be received by March 28, 1977; checks drawn on a bank in another District must be received by March 25, 1977. 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 that, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. [Enc. Cir. No. 8069] (OVER) SUBSCRIPTION NO. SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES N-1979 DELIVERY INSTRUCTIONS S U B S C R IB E R n DELIVER OVER THE COUNTER S IG N A T U R E _ □ s h ip TO SUBSCRIBER A D D R E S S ____ □ OTHER INSTRUCTIONS: PAYMENT INSTRUCTIONS □ BY CHARGE TO OUR RESERVE ACCOUNT H BY CASH OR CHECK IN I M M E D I A T E L Y A V A I L A B L E FUNDS Z IP R E G IS T R A T IO N FOR F R B □ BY SURRENDER CF MATURING SECURITIES TRANS. A C C O U N T IN G D A T E I S S U E A G E N T 12 IN S T R U C T IO N S DENOM. AMOUNT SERIAL NOS. (LEAVE BLANK) COMP. DATE F O R FR B USE O N L Y N A M E (S ) ID O R S .S . 32 5 ,0 00 34 10, 0 0 0 30 100 ,000 42 1 ,0 0 0 , 0 0 0 99 TOTAL NO. ADDRESS Z IP TR. CASE NO. N A M E |S ) 32 5, 000 34 10, 000 ID O R S.S. N O . ADDRESS Z IP 38 10 0 ,0 00 4? 1 ,000,000 99 TOTAL TR. CASE NO. N A M E (S ) ID O R S.S. 32 5, 0 0 0 34 10 , 0 0 0 38 10 0 ,0 0 0 42 1 ,000,000 99 TOTAL NO. ADDRESS Z IP TR . CASE NO. N A M E(S) 32 ID O R S .S . NO. ADDRESS Z IP 5,000 34 1D, 000 38 10 0 ,0 00 42 1 ,000,000 99 TOTAL TR. CASE NO. N A M E (S ) 32 5,000 34 1D.000 38 1 0 0 ,0 0 0 42 1 ,000,000 99 TOTAL ID O R S.S. N O . ADDRESS Z IP L O A N CODE M A R C H 31, 1977 IN TER EST NO. OF PIECES USE O N LY TR. CASE NO. 110-01
@FedFRASER