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F ederal Reserve b a n k of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 7 5 2 2 2 C ircular No. 74-192 J u l y 11, 1974 FEDERAL FINANCING BANK BILL OFFERING To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your a ttention is invited to the following sta te m e n t giving details of a n issue of Federal Financing Bank bills: T h e F e d e ra l F in a n c in g B ank , w ith th e a p p ro v al of th e S e c re ta ry of th e T re a su ry , b y th is p u blic n otice in v ite s ten d e rs for $1,500,000,000, o r th ereab o u ts, of 244-day F e d e ra l F in a n cin g B a n k bills to b e d a te d J u ly 30, 1974, a n d to m a tu r e M a rc h 31, 1975 ( C U S I P No. 313322 A A 7 ). T h e bills will be issued on a d iscoun t basis u n d e r c o m p e titiv e a n d n on-c o m p e titiv e b id d in g a s h e re in a fte r p rovid ed , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y a b le w ith o u t interest. T h e y will be issued in b e a re r a n d b oo k -en try form s only, a n d in d e n o m in a tio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 (m a tu r ity v a lu e ). T e n d e rs w ill b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m., E a s te rn D a y lig h t S aving tim e , T u esd ay , J u ly 23, 1974. T e n d e rs w ill n o t b e received a t th e F e d e ra l F in a n cin g B a n k in W ash ing ton, D. C. E a c h te n d e r m u st be for a m in im u m of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s of $5,000. In th e case c o m p e t itive tenders, th e p rice offered m u st be expressed o n th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g, 99.925. F ra c tio n s m a y n o t be used. B a n k in g in stitu tio n s a n d d ealers who m ak e p rim a ry m a rk e ts in G o v e rn m e n t securities a n d re p o rt d a ily to th e F e d e ra l R e se rv e B a n k of N ew Y o rk th e ir positions w ith re sp e c t to G o v e rn m e n t securities a n d borrow ings th ere o n m ay su b m it te n d e rs for a cc o u n t of custom ers, p ro v id ed th e n a m e s of th e custom ers are se t fo rth in such ten ders. O th e rs w ill n o t be p e rm itte d to su b m it te n d e rs except for th e ir own account. T e n d e rs w ill b e received w ith o u t d e p o sit from in c o rp o ra ted b a n k s a n d tr u s t com p a n ie s a n d from resp onsib le a n d recognized d ealers in in v e s tm e n t securities. T e n d e rs fro m others m u st b e a cc o m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of bills a p p lie d for, unless th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. All b idders a re re q u ire d to agree n o t to pu rc h ase or to sell, or to m a k e a n y a g ree m e n ts w ith re sp e ct to th e pu rc h ase o r sale o r o th e r dispo sition of a n y bills b id for u n d e r th is offering a t a specific ra te or price, u n til a fte r o n e -th irty p.m ., E a s te rn D a y lig h t S aving tim e, T u esd ay , J u ly 23, 1974. Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill b e o p ened a t th e F e d e ra l R e se rv e B a n k s a n d B ran ches, follow ing w hich p u b lic a n n o u n c e m e n t will be m a d e b y th e F e d e ra l F in a n c in g B a n k of th e a m o u n t a n d p rice range of a cc ep te d bids. O n ly those su b m ittin g c o m p e titiv e te n d e rs w ill be a d vised of th e a cc ep ta n ce or re je ctio n th ereo f. T h e F e d e ra l F in a n cin g B a n k ex pressly reserves th e rig h t to a c c e p t o r re je c t a n y or all ten d e rs, in w hole o r in p a rt, a n d its a ctio n in a n y such respect shall be final. S u b je c t to these reservations, n o n c o m p e titiv e te n d e rs for $300,000 or less w ith o u t sta te d price from a n y one b id d e r w ill b e a ccep ted in full a t th e a v erage p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st be m ad e or com p le te d a t th e F e d e ra l R e se rv e B a n k o n J u l y 30, 1974, in cash or o th e r im m e d ia te ly a v ailab le funds. A n y qualified d e p o sita ry will b e p e rm itte d to m a k e se ttle m e n t b y c re d it in its T re a su ry T a x a n d L o a n A ccou nt for bills a llo tte d to i t for itself a n d its custom ers. U n d e r Sections 4 5 4 ( b ) a n d 1 2 2 1 (5 ) of th e In te rn a l R e v e n u e Code of 1954, th e a m o u n t of discoun t a t w hich bills issued h e re u n d e r a re sold is considered to accrue w hen th e bills are sold, re d ee m e d or o therw ise disposed of, a n d th e bills are excluded from con sid eration as c ap ital assets. Accordingly, th e ow ner of bills ( o th e r th a n life in su rance co m p an ies) issued h e re u n d e r m u st in clude in h is incom e ta x re tu rn , as o rd in a ry gain o r loss, th e difference b etw een th e p rice p a id for th e bills, w h e th e r on orig inal issue or on su b seq u e n t pu rchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e tax a b le y e a r for w hich th e re tu rn is m ade. T h is offering is m a d e p u rs u a n t to F e d e ra l F in a n c in g B a n k C ircu la r No. 1-74. Copies of th e c irc u lar m a y b e o b tain e d fro m a n y F e d e ra l R e se rv e B a n k or B ranch . In a c c o rd a n c e with the a b o v e a n n o u n c e m e n t, te n d e rs will be received a t this b a n k a n d its b ra n c h e s a t El Paso, Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, T uesday, July 23, 1974. Tenders m a y not be e nte re d by te le p h o n e . Yours very truly, P. E. Coldwell President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR FEDERAL FINANCING BANK BILLS 244 DAYS TO MATURITY Dated July 30,1974 To Maturing March 31,1975 Federal Reserve Bank, Station K, Dallas, Texas 75222 or — T h e _______________________ Branch El Paso 79999 Houston 770U1 (Date) San Antonio 78295 The undersigned offers to purchase Federal Financing Bank bills in the amount shown below, and amount allotted, on or before the issue date, by the method and a t the rate indicated. agrees to pay for the NONCOM PETITIVE TENDERS $______________________________________ NOT TO EXCEED $300,000 Noncompetitive tenders for $300,000 or less from any bidder, without stated price, will be accepted price (in three decimals) of accepted competitive bids. COM PETITIVE TENDERS ; ; ! ; ^ t (d) (a) (ft) @ % $ $ $ in full at the average Prices should be expressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. ; <> TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE " CLOSING HOUR ARE ACCEPTABLE. METHOD OF PAYMENT Denominations Desired □ N um ber o f pieces M aturity Value □ -<§> $ @ $_ ? 15.000 $_ $ 50.000 $_ -<§> $ -<§> 10,000 100,000 Charge to Treasury Tax and Loan Ac count Payment to be made by-------------------- □ Charge our reserve account on payment date Draft enclosed (E ffectual delivery of enclosed d r a f t □ shall be o n la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to ob ta in irrevocably collected fu n d s on p a y m e n t date) $_ We certify that we, as well as our customers, if any, listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale of other disposition of any bills bid for under this offering at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving Time, Tuesday, July 23, 1974. $ 500,000 $_ $ 1 , 000,000 $_ Delivery Instructions: □ Hold in Custody — General Account □ Hold in Custody — Investment Ac count □ Hold in Custody — Trust Account □ Pledge to secure Treasury Tax and Loan Account □ Other___________________________ (Subscriber's fu ll name or corporate title) (Address) By- (Authorized official signature and title) (For the account of, if tender is for another subscriber) (Address) IMPORTANT 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communi cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at 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.” 5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompan:ed by a deposit of 2 percent of the total amount (m aturity value) of the Federal Financing Bank bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or tru st company. 6. If the language of this form is changed in any respect, which, in the opinion of the Federal Financing Bank is material, the tender may be disregarded. ( See reverse fo r announcem ent)
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