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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT O F THE UNITED STATES

Dallas, Texas, December 20,1962

INVITATION TO BID
UNITED STATES TREASURY BONDS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
A press statement and a public notice announcing an invitation for bids
on $250,000,000 of Treasury Bonds of 1988-93 at competitive bidding are
reproduced on the following pages. Provisions relating to the coupon rate
of interest will be announced on January 2, 1963.
Each bidder may submit only one bid, which must be for the purchase of
the entire $250,000,000 block of the bonds described in the invitation. A
deposit of 3 percent of the principal amount of bonds ($7,500,000) in
immediately available funds must accompany each bid.
Official forms for filing written notice of intention to bid and other forms
and envelopes relating to the submission of an actual bid to the Federal
Reserve Bank of New York may be obtained upon request from this bank
or its branches at El Paso, Houston and San Antonio.
Yours very truly,
Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical T ib ra y (FedHistoiy@dal.frb.org).
publication
Bank
Historical Library (FedHistory@dal.frb.org)

TREASURY DEPARTMENT
Washington, D. C.

December 20, 1962

TREASURY ANNOUNCES OFFERING OF BONDS
AT COMPETITIVE BIDDING
Treasury Secretary Douglas Dillon today issued a public notice of invita­
tion for bids on $250,000,000 of Treasury Bonds of 1988-93. This will be the
first sale of Treasury bonds to an underwriter on the basis of competitive
bidding for re-offering to the public. The Treasury announced last Septem­
ber its intention to test this new technique.
Bids for the bonds will be received at the Federal Reserve Bank of New
York not later than 11:00 a.m., Eastern Standard Time, on Tuesday, Janu­
ary 8, 1963. The successful bidder will be required to make a bona fide
re-offering of all of the bonds to the investing public.
The bonds will mature on February 15, 1993, but may be called for
payment on February 15, 1988, or any interest payment date thereafter.
The bonds will be dated January 17, 1963. Interest will be payable on
February 15 and August 15 of each year until the bonds mature or are
called. The first interest coupon, payable August 15,1963, will cover interest
accrued between January 17, 1963 and August 15, 1963.
A supplemental notice, to be published on January 2, 1963, will set forth
provisions relating to the coupon rate or rates of interest upon which bids
will be received. Bidders must file a notice of intent to bid at the Federal
Reserve Bank of New York not later than 12:00 noon, Eastern Standard
Time, on January 4, 1963.
Payment for the bonds must be made in immediately available funds not
later than 11:00 a.m., Eastern Standard Time, on January 17, 1963.

December 20, 1962
PUBLIC NOTICE OF INVITATION TO BID
on
Treasury Bonds of 1988-93
The Secretary of the Treasury, by this notice and under the terms and conditions prescribed in
Treasury Department Circular, Public Debt Series No. 22-62, invites bids for an issue of bonds of the
United States, designated as Treasury Bonds of 1988-93. The principal amount of the issue hereunder
will be $250,000,000. These bonds will be offered only as a single block on a competitive bid basis.
I. Description of bonds
The bonds will be dated January 17, 1963, and will bear interest from that date payable on a semi­
annual basis on August 15, 1963, and thereafter on February 15 and August 15 in each year until the
principal amount becomes payable. They will mature February 15, 1993, but may be redeemed at the
option of the United States on and after February 15, 1988, at par and accrued interest, on any interest
day, on four months’ notice of redemption given in such manner as the Secretary of the Treasury shall
prescribe. From the date of redemption designated in any such notice, interest on the bonds called for
redemption shall cease.
If the bonds are owned by a decedent at the time of his death and thereupon constitute a part of his
estate, they will be redeemed at par and accrued interest at the option of the representative of the estate,
provided the Secretary of the Treasury is authorized by the decedent’s estate to apply the entire
proceeds of redemption to payment of the Federal estate taxes on such decedent’s estate.
II. Notice of intent
Any individual, organization, syndicate, or other group intending to submit a bid must file written
notice of such intent with the Federal Reserve Bank of New York on Form PD 3555 by 12:00 noon, East­
ern Standard Time, on January 4,1963. Notices which are received postmarked to show they were mailed
prior to that time will be treated as having been timely filed. Forms and envelopes therefor may be
obtained from any Federal Reserve Bank or Branch or from the Bureau of the Public Debt, Treasury
Department, Washington 25, D. C. The filing of such notice will not constitute a commitment to bid.
III. Submission of bids
Only bids submitted in accordance with the provisions of this invitation, or any supplement or
amendment hereto, and of Treasury Department Circular, Public Debt Series No. 22-62, by bidders who
have filed notice of their intent to bid as required by Sec. II hereof will be considered. Each bid must
be submitted in duplicate on Form PD 3556, enclosed and sealed in an envelope which will be furnished
with the form, apd must be received in the Northwest Conference Room of the Federal Reserve Bank
of New York not later than 11:00 a.m., Eastern Standard Time, on January 8,1963. Forms and envelopes
may be obtained from any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt,
Treasury Department, Washington 25, D. C.
A bid submitted by a syndicate must be supplemented by a list of its members which must specify
the amount of each member’s underwriting participation. This supplement must be filed by the represen­
tative on Form PD 3557 not later than 12:00 noon on January 8, 1963, at the place designated for
receipt of bids.
Each bidder may submit only one bid which must be for the purchase of all of the bonds described
in this invitation. The price to be paid to the United States by the bidder must be expressed as a
percentage of the principal amount of the bonds in not to exceed five decimals, e.g., 100.01038 percent.
Provisions relating to the coupon rate of interest will be set forth in a supplemental notice hereto on
January 2, 1963.
Each bid must be accompanied by a payment to the Federal Reserve Bank of New York, as fiscal
agent of the United States, of an amount equal to 3 percent of the principal amount of the bonds in
immediately available funds.

IV. Bids — Opening — Acceptance
Bids will be opened in the Northwest Conference Room of the Federal Reserve Bank of New York
at 11:00 a.m., Eastern Standard Time, on January 8, 1963, and the accepted bid will be announced
publicly not later than 2:00 p.m., Eastern Standard Time, on that date. The bids and the names of the
bidders will be considered as matters of public record, including, in the case of a syndicate, the names
of the members and the amount of each member’s underwriting participation.
The bid to be accepted will be the one resulting in the lowest basis cost of money computed from
the date of the bonds to the date of maturity determined in accordance with the terms of this invitation,
or any supplement or amendment hereto, and the provisions of Treasury Department Circular, Public
Debt Series No. 22-62. It shall be a condition of each bid that, if accepted by the Secretary of the
Treasury, the bidder shall make a bona fide reoffering of all of the bonds to the investing public.
When the successful bidder has been announced, his deposit will be retained as security for the
performance of his obligation and will be applied toward payment of the bonds. Thereafter, the deposits
of all other bidders will be returned immediately. No interest will be allowed on any of the deposits.
In the event that the supplemental notice does not specify a single coupon rate of interest and bids based
on different coupon rates of interest result in identical basis costs of money computed to maturity, the
Secretary of the Treasury will accept the bid resulting in the lowest interest cost to the first call date.
Otherwise, if identical bids are submitted, the Secretary of the Treasury, in his discretion, shall
determine the bid to be accepted by lot in a manner prescribed by him, unless he proposes and those who
submitted the identical bids agree on a division of the bonds. In the event of a division of the bonds,
the bids of the successful bidders will be amended accordingly, their deposits will be apportioned and the
remainder refunded immediately.
The Secretary of the Treasury, or his representative, will accept the successful bid by signing
the duplicate copy of the bid form and delivering it to the bidder, or his representative.
The Secretary of the Treasury, in his discretion, reserves the right to reject any or all bids.
V. Payment for and delivery of bonds
Payment for the bonds must be made in immediately available funds and must be completed by the
successful bidder not later than 11:00 a.m., Eastern Standard Time, on January 17, 1963, at the Federal
Reserve Bank of New York.
If the bidder desires any registered bonds to be shipped on the payment date, he must notify the
Federal Reserve Bank of New York and furnish the necessary registration information within two days
after the award. All other bonds will be delivered in bearer form and will be available on the payment
date at Federal Reserve Banks and Branches. Shipment of the bonds will be made on the payment date,
at the risk and expense of the United States, to any place or places in the United States designated
by the bidder. If necessary, the Treasury will issue interim receipts for the bonds on the payment date.
Douglas Dillon,
Secretary of the Treasury


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102