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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States Circular No. 8128 June 15. 1977 TREASURY TO AUCTION $1,500 MILLION OF 2-YEAR NOTES To A ll B anking In stitu tion s, an d O th ers Concerned, in th e Secon d F ederal R eserve D istrict: The follow ing statem ent was issued yesterday by the Treasury Departm ent: The Department of the Treasury will auction $1,500 million of 2-year notes to refund notes maturing June 30, 1977. The offering will provide for a net pay-down for the Treasury of about $406 million as the public holds $1,906 million of the maturing notes. 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 $264 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 sum m arizing the highlights o f the offering. Copies o f the official offering circular will be furnished upon request. Bidders subm itting noncom petitive 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. I f paym ent is m ade by check, the check should be a certified personal check or an official bank check, payable on its face to the Federal Reserve Bank o f New York; checks endorsed to this Bank will not be accepted. E nclosed is a copy o f the form to be used in subm itting tenders. If there is any doubt that tenders sent by mail will reach this Bank or its Branch on tim e, bidders should use other m eans o f transm itting their tenders. A recorded m essage (at the Head O ffice — 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, Tel. No. 212-791-6619 or 212-791-5465, or, at the B uffalo Branch, Tel. No. 716-849-5016. P a u l A. V o l c k e r , P r e s id e n t. HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED JUNE 30,1977 Amount Offered: To the public.................................. $1,500 million Description of Security: Term and type of security............. 2-year notes Series and CUSIP designation . . . Series R-1979 (CUSIP No. 912827 GUO) Maturity d a t e .................................. June 30, 1979 Call date ........................................... No provision Interest coupon ra te........................ To be determined, based on the average of accepted bids Investment y ie ld .............................. To be determined at auction Premium or d iscou n t..................... To be determined after auction Interest payment d ates................... December 31 and June 30 Minimum denomination available $5,000 Terms of Sale: Method of sale .................................... Yield auction Accrued interest payable by investor None Preferred a llo tm en t............................ 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, June 21, 1977, by 1:30 p.m., EDST Settlement date (final payment due) a) Cash or Federal funds................................................................... Thursday, June 30, 1977 b) Check drawn on bank within FRB district where submitted Monday, June 27, 1977 c) Check drawn on bank outside FRB district where submitted Friday, June 24, 1977 Delivery date for coupon securities................................................... Thursday, June 30, 1977 -r * - f * > 4 * * ♦ W * ’ ’ tV IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, June 21, 1977 TENDER FOR TREASURY NOTES OF SERIES R-1979 PRIVACY ACT STATEMENT — The individually identifiable information required on this forrri 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 June 30, 1977 Due June 30, 1979 Dated at FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States, New York, N.Y. 10045 ,n The undersigned hereby offers to purchase United States of America Treasury Notes of Series R-1979 in the amount indicated below, and agrees to make pajunent therefor at your Bank on or before the issue date at the price awarded on this tender. COMPETITIVE TENDER D o not f i ll ui both C om petitive an d N on com petitive ten ders on one fo rm $ ...........................................................(maturity value) or any lesser amount that may be awarded. Y ie ld :........ NONCOMPETITIVE TENDER $ .......................................................... (maturity value) (Not to exceed $1.000.000f o r one bid d er through all sources) at the average price of accepted competitive bids. ( Y ield m u st be expressed with not m ore than two decim al places, f o r exam ple, 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 $ XXX XXX 5,000 10,000 XXX 1. Deliver over the counter to the undersigned ] 2. Ship to the undersigned 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 im m ediately | | Maturity value 4. available fu n d s ] By surrender of maturing securities Hold as collateral for Treasury Tax and Loan Account * ^ ^Pec'a' 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 own account or for account o f 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) r 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 “ T e n d e r f o r T re a s u ry N o te s o r B o n d s ’’ (Address — inch City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (Institutions submitting tenders for customer account must list customers’ names on lines below' or on an attached rider) (Name ot 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 th e sam e y ie ld and may consolidate noncompetitive tenders, provided a list is attached show ing 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 June 30, 1977. If payment is by check drawn on a bank in this District, it must be received by June 27, 1977; checks drawn on a bank in another District must be received by June 24, 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.8128] (OVER) * SUBSCRIPTION NO. ? , SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES R-1979 S U B S C R IB E R DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS □ DELIVER OVER THE COUNTER □ BY CHARGE TO OUR RESERVE ACCOUNT □ BY CASH OR CHECK IN S IG N A T U R E _ □ SHIP TO SUBSCRIBER A D D R E S S ____ □ OTHER INSTRUCTIONS: I M M E D I A T E L Y A V A I L A B L E FUNDS ZIP REGISTRATION □ BY SURRENDER CF MA TURING SECURIT IES FOR F R B USE O N LY TRANS. A C C O U N T I N G D A T E ISSUE A GEN T 12 J U N E 30, 1977 INTEREST NO. OF PIECES INSTRUCTIONS DENOM. SERIAL NOS. (LEAVE BLANK) AMOUNT COM P; DATE F O R F R B USE O N L Y N A M E(S) ID OR S . S . NO. ADDRESS ZI P 32 5.000 34 1 0,000 38 100,000 42 1,000,000 9S TOTAL TR. CASE NO. N AM E(S) ID O R S . S . N O . ADDRESS ZIP 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL T R. CASE NO. N AM E(S) * 32 34 ID O R S . S . N O . 5,000 10,000 100,000 ADDRESS ZI P 42 1,000,000 99 TOTAL T R . CASE NO. N A M E(S) 32 ID O R S . S . N O . ADDRESS 5,000 34 10,000 38 100,000 42 1 ,000 ,0 0 0 ZIP 99 TOTAL TR. CASE NO. N A M E (S) 32 5,000 34 10,000 38 100,000 42 1 ,000,000 39 TOTAL ID O R S . S . N O . ADDRESS ZI P _ - « _____ _____ LOAN C ODE . T R. CASE NO. 110-01 . UNITED STATES OF AMERICA ♦ * TREASURY NOTES OF JUNE 30, 1979 SERIES DEPARTMENT CIRCULAR Public Debt Series - No. 14-77 R-1979 DEPARTMENT OF THE TREASURY, OFFICE OF THE SECRETARY, Washington, June 15, 1977. > 1. 1 1. 1. INVITATION FOR TENDERS The Secretary of tne Treasury, under the authority of the Second Liberty Bond Act, as amended, invites tenders for approximately $1,500,000,000 of United States securities, aesignated Treasury Notes of June 30, 1979, Series R-1979 (CUSIP No. 912827 GU 0). The securities will be sold at auction with bidding on the basis of yield. Payment will be required at the price equivalent of the bid yield of each accepted tender. The interest rate on the securities and the price equivalent of eacn accepted bid will be determined in the manner described below. Additional amounts of these securities may be issued to Govern ment accounts and Federal Reserve Banks for their own account in -4 exchange for maturing Treasury securities. Additional amounts may also be issued for cash to Federal Reserve Banks as agents of foreign and international monetary authorities. 2. 2. 1. DESCRIPTION OF SECURITIES The securities will be dated June 30, 1977, ana will bear interest from that date, payable on a semiannual basis on * * December 31, 1977, and each subsequent 6 months on June 30 and December 31 until the principal becomes payable. They will mature June 30, 1979, and will not be subject to call for redemption prior to maturity. 2. 2. The income aerived from the securities is subject to all taxes imposea under the Internal Revenue Code of 1954. The securities are subject to estate, inheritance, gift or other V 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, any possession of the United States, or any local taxing authority. T - 2 - ♦ 2. 3. The securities will be acceptable to secure deposits of public monies. payment of taxes. 2. 4. They will not be acceptable in Bearer securities with interest coupons attached, ana 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 Didders in multiples of those amounts. Interchanges of securities of different denominations ana of coupon, registered ana book-entry securities, and the transfer of registered securities will be permitted. 2. 5. The Department of the Treasury's general regulations governing United States securities apply to the securities offered in this circular. These general regulations include those currently in effect, as well as those that may be issued at a later date. 3. 3. 1. SALE PROCEDURES Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D. C. 20226, up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, June 21, 19 77. Noncompetitive tenders as oefinea below will be considered timely if postmarked no later than Monday, June 20, 1977. 3. 2. Each tender must state the face amount of securities bid for. The minimum bid is $5,000 and larger bids must be in multiples of that amount. Competitive tenders must also snow the yield desired, expressed in terms of an annual yield with two decimals, e.g., 7.11%. be used. Common fractions may not Noncompetitive tenders must show the term "noncompetitive” on the tender form in lieu of a specified yield. No bidder may submit more than one noncompetitive tender and the amount may not exceed $1,000,000. 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 wno make primary markets in Government securities and report daily to the Federal Reserve dank of New York their positions in and borrowings on such securities, may submit tenders for account of customers if the names of the customers and the amount for each customer are furnished. Others are only permitted to submit tenders for their own account. 3. 4. Tenders will be received without deposit for their own account from commercial banks ana other oanking institutions; primary dealers, as defined above; Federally-insured savings and loan associations; States, ana their political subdivisions or instrumentalities; 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 deposit by a commercial bank or a primary dealer. 3. 5. Immediately after the closing hour, tenders will oe opened, followed oy a public announcement of the amount and yield range of accepted bids. Subject to tne reservations expressed in Section 4, noncompetitive tenders will be accepted in full at the weighted 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 established, on the basis of a 1/8 of one percent increment, which results in an equivalent average accepted price close to 100.000 ana a lowest accepted price above the original issue discount limit of yy.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 determined and each successful competitive biclaer 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 snail 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 provide a fair determination of the yield. Tenders received from Government accounts ana Federal Reserve Banks will be accepted ac the weignted average price of accepted competitive tenders. 3. 6. Competitive bidders v/ill be advised of the acceptan or rejection of their tenders. Those submitting noncompetitive tenders will only be notified if the tender is not accepted in full or when the price is over par. 4. 4. 1. RESERVATIONS The Secretary of the Treasury expressly reserves 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 the Secretary considers it in the public interest. The Secretary’s action unaer this Section is final. 5. 5. 1. PAYMENT AND DELIVERY Settlement for allotted securities must be made or completed on or before Thursday, June 30, 1977, at the Federal Reserve Bank or Branch or at 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 cc before the settlement date but which are not overdue as defined in the general regulations governing Unitea States securities; or by check drawn to the order of the institution to which the tender was submitted, which must be received at such institution no later than: (a) Monday, June 27, 1977, if the check is drawn on a bank in the Federal Reserve District of the institution to which the check is submitted (the Fifth Federal Reserve District in case of the Bureau of the Public Debt), or (b) Friday, June 24, 1917, if tne check is drawn on a Dank in another Federal Reserve District. Checks received after the dates set forth in the preceding sentence will not be accepted unless they are payable at the applicable Federal Reserve Bank. Payment will not be considered complete where registered securities are requested if the appropriate identifying number as required on tax returns and otner documents submitted to the Internal Revenue Service (an individual's social security number or an employer identification number) is not furnished, when payment is made in securities, a cash adjustment will be made to or required of tne 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 completed 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 allotted securities are not required to be assigned if the new securities are to be registered in the same names and forms as appear in the registrations or assignments of the securities surrendered. When the new securities are to be registered in names and forms different from those in the inscriptions or assignments of the securities presented, the assignment should be to "The Secretary of the Treasury for (securities offered by this circular) 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 by this circular) to be aelivered to (name and address)." Specific instructions for the issuance and delivery of the new securities, signed by the owner or authorized representative, must accompany the securities presentee. Securities tendered in payment should be surrendered to tne Federal Reserve Bank or Branch or to the Bureau of the V. - 6 - Pubic Debt, Washington, D. C. 20226. The securities must be delivered 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 oe issued in bearer form and shall be exchangeable for definitive securities or this issue, 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 tne 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. 6. GEN£RAL PROVISION3 o. 1. As fiscal agents of the United States, Feueral Reserve Banks are authorized and requested to receive tenders, to make allotments as directed by the Secretary of the Treasury, to issue such notices as may be necessary, to receive payment for and make delivery of securities on full-paid allotments, and to issue interim certificates pending delivery of the definitive secur it ies. 2. The Secretary of the Treasury may at any time issue supplemental or amendatory rules and reguiat iono governing’ tne offering. Public announcement of such changes will be promptly provided. W. Michael Slumenthal, Secretary of the Treasury A
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