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FEDERAL RESERVE BANK OF D ALLAS F IS C A L . A G E N T O F T H E C O M M O D IT Y C R E D IT C O R P O R A T IO N Dallas, Texas, March 24, 1966 OFFERING OF COMMODITY CREDIT CORPORATION CERTIFICATES OF INTEREST To A ll Banking Institutions an d O thers Concerned in the Eleventh Fed eral Reserve District: There is quoted below a press statement issued on March 23, 1966, by the United States Department of Agriculture in regard to an offering of Special Series Certificates of Interest: The U. S. Department of Agriculture today announced that the Commodity Credit Corpora tion will offer to banking institutions, dealers in investment securities and other interested persons the opportunity to participate in financing approximately $500 million of CCC price support loans on agricultural commodities, by purchasing a special series of Certificates of Interest in a pool of such loans. Special Series Certificates of Interest, which are non-interest bearing, will be offered for sale at discount on a bid basis, both competitive and noncompetitive as is done for Treasury bills. The Certificates, in bearer form, will be issued April 6, 1966, and will mature on August 1, 1966 (117 days). Bids in writing for Special Series Certificates of Interest must be received at any Federal Reserve Bank (not branch) before 1:30 P.M., E.S.T., on Wednesday, March 30, 1966. The Invitation for Bids covering Special Series Certificates of Interest will be available through Federal Reserve Banks about March 25, 1966. Those submitting successful bids will be so advised by the Federal Reserve Banks. Bids will be accepted in multiples of $5,000. Commodity Credit Corporation has statutory authority (15 U.S.C. 7 1 4 b (i) and 713a-4) to borrow up to $14.5 billion, has reserved an amount of its uncommitted borrowing authority sufficient to redeem outstanding Special Series Certificates of Interest, and has arranged to borrow from the Secretary of the Treasury of the United States any portion of such uncommitted amount of its borrowing authority whenever needed to redeem such Certificates. The Certificates are eligible as security for advances at Federal Reserve Banks and as col lateral for Treasury Tax and Loan accounts. CCC anticipates that it will offer investors an opportunity to participate in financing price support loans again next year about this time. Proceeds from the sale of these Certificates will be paid into the United States Treasury to be applied as payments on CCC notes held by the Treasury. The delivery of certificates allotted may be made by wire transfer to any Federal Reserve Bank (not branch). At maturity the certificates may be redeemed at this bank and its branches at El Paso, Houston and San Antonio; however, denominational exchanges may be made only at this bank. The official invitation for bids and tender form for the new securities are enclosed. As indicated in the announcement, tenders are to be submitted only to the head office of this bank and will be received up to twelve-thirty P.M., Central Standard Time, Wednesday, March 30, 1966. Yours very truly, Watrous H. Irons President Enclosures This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF D ALLAS F I S C A L A G E N T O F T H E C O M M O D IT Y C R E D IT C O R P O R A T IO N Dallas, Texas, March 24, 1966 INVITATIO N FO R BIDS ON C O M M O D IT Y CREDIT C O R PO R A TIO N CERTIFICATES O F INTEREST SPEC IA L SERIES To A ll Banking Institutions an d O thers Concerned in the Eleventh Fed eral Reserve District: Your attention is invited to the follow ing statem ent giving d etails of an issue of Certificates of Interest: Commodity Credit Corporation (hereinafter referred to as “ CCC” ), an agency and instrumentality of the United States within the Department of Agriculture, hereby invites bids for the purchase of a special series of non-interest bearing nego tiable Certificates of Interest in an approximate amount of $500,000,000. These Certificates evidence participation in the financing, and an interest in a pool, of outstanding CCC price support loans on agricultural commodities. The Certificates will be sold on a discount basis and will be issued in denominations of $5,000, $10,000, $100,000, and $1,000,000, but denomi national exchanges may be made at any Federal Reserve Bank. The Certificates have a maturity date of August 1, 1966, and will be redeemed by CCC on or after the maturity date upon presentation at any Federal Reserve Bank or branch thereof. The Certificates are eligible as security for advances at Federal Reserve Banks and as collateral for Treasury Tax and Loan accounts. Bids will be received at any Federal Reserve Bank up to 1:30 P.M., E.S.T., Wednesday, March 30, 1966. Bids must be in writing in multiples of $5,000 and 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 bids be made on the printed forms, and forwarded in the special envelopes, to be furnished by Federal Reserve Banks on application therefor. Banking institutions generally may submit bids for account of customers provided the names of the customers are set forth in such bids. Others may only submit bids for their own account. Bids will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in investment securities. Bids from others must be accompanied by a deposit of 2 percent of the face amount of the Certificates bid for, unless such bids are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, CCC will open and evaluate the bids, and will then publicly announce the amount and price range of accepted bids. CCC expressly reserves the right to accept or reject any or all bids, in whole or in part, and any such action shall be final. Subject to this reservation, noncompetitive bids from any one bidder for $200,000 or less with out stated price will be accepted in full at the average price (in three decimals) of accepted competitive bids. Those sub mitting successful bids will be so advised by the Federal Reserve Bank to which the bid was submitted, and settlement there for must be made at such Bank on April 6, 1966, in U. S. dollars, either in cash or other immediately available funds. Pay ment cannot be made by credit through the Treasury Tax and Loan account. After payment in full has been made to the Federal Reserve Bank for Certificates allotted against a bid, such Cer tificates so allotted on original issuance will be transferred by wire in any amount, on request of the owner, to any other Federal Reserve Bank for his account. CCC has statutory authority to borrow up to $14.5 billion and reserves an amount of its uncommitted borrowing authority sufficient to redeem outstanding special series Certificates of Interest. CCC has an arrangement to borrow from the Secretary of the Treasury of the United States any portion of the uncommitted amount of its borrowing authority whenever needed to redeem such Certificates, which arrangement is confirmed in the following quoted letter: “ THE SEC R ETA R Y O F THE TREASURY W A SH IN G TO N Dear Mr. Schnittker: March 19, 1966 Reference is made to the request that an arrangement be made between Commodity Credit Corporation and the Secretary of the Treasury to borrow any portion of the uncommitted amount of Commodity Credit Corporation’s borrowing authority whenever it is needed to redeem outstanding special series Certificates of Interest. The Commodity Credit Corporation has statutory authority (15 U.S.C. 7 1 4 b (i) and 713a-4) to borrow up to $14.5 billion, provided the approval of the Secretary of the Treasury is obtained. I am advised that the unused balance of Commodity Credit Corporation’s authorized borrowing authority presently exceeds $1.9 billion. I understand that the Commodity Credit Corporation has reserved $500 million of this unused balance to be used only for the redemption of special series Certificates of Interest at maturity on August 1, 1966. After giving effect to this reservation of $500 million for such redemption, the current unreserved and unused bal ance of Commodity Credit Corporation’s borrowing authority will be in excess of $1.4 billion. Accordingly, on the records of the Treasury Department, we are reserving $500 million of your total unused borrowing authority for the purpose of redeeming outstanding special series Certificates of Interest. Sincerely yours, The Honorable John A. Schnittker President Commodity Credit Corporation Department of Agriculture Washington, D. C. 20250” Is/ Henry H. Fowler Henry H. Fowler In acco rd an ce w ith the a b o ve announcem ent, tenders w ill be received at this ban k up to tw elve-thirty p.m ., Central Standard Tim e, W e d n e sd a y , M arch 30, 1966. Tenders m ay not be entered by telephone. Yours very truly, W atrous H. Irons President (S ee reverse for tender form ) TENDER FOR COMMODITY CREDIT CORPORATION CERTIFICATES OF INTEREST SPECIAL SERIES 117 DAYS TO MATURITY Dated April 6, 19G6 Maturing August 1, 1966 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 (D a te) Pursuant to the provisions o f the invitation fo r bids printed on the reverse hereof, the undersigned offers to pur chase Certificates o f Interest in the amount shown below, and agrees to pay fo r the amount allotted, on or before the issue date, by the method and at the rate indicated. NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $_ Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (?COMPETITIVE TENDERS ; $_ ------------------------------------------ Prices should be expressed on the basis of 100, with not more than --------------------------------three decimnl places, e. g., 99.925. Fractions must not be used. ------------------------------- - -@ - h J - 8^=* TENDERS M AY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment, fo r this issue o f Certificates cannot be made by credit to Treasury Tax and Loan Account. Denominations Desired N um ber o f Pieces M aturity Value $ & $ 5,000 METHOD OF PAYM ENT 10,000 $ $ 100,000 $ (a) $1 ,000,000 $ @ □ Payment to be made by_______________ - □ Charge our reserve account on payment date I I D r a f t e n c l o s e d (E ffectual delivery o f enclosed d ra ft shall be on latest day which w ill perm it present m ent in order to obtain irrevocably collected funds on paym ent date) Delivery Instructions: □ Hold in Custody Account— Member banks for own account only (S ubscriber's fu ll nam e o r corporate title) □ Pledge to secure Treasury Tax and Loan Account (A d dress) □ Ship to_______________________ ___ By(A uthorized official signature and title) ( F o r the a ccou nt o f, i f tender is f o r another subscriber) (A d dress) IM P O R T A N T 1. No tender for less than $5,000 will be considered and each tender must be fo r an amount in multiples o f $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank as Fiscal Agent o f the Commodity Credit Corporation, with notation on the envelope reading “ TEN DER FOR CER TIFIC ATE S OF IN T E R E S T ” . Since enve lopes received with this legend will not be opened until after the closing time specified in the public announcement, com munications relating to other matters should not be enclosed. 3. Any qualified or conditional tender will be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing o f the form by an officer o f 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 o f the firm, who should sign in the form “ ______ , a copartnership, by__________________________ , a member o f the firm” . 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit o f 2 percent o f the total amount (maturity value) o f the Certificates applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an incorporated bank or trust company. ( See reverse fo r announcement)
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