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F E D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the Commodity Credit Corporation Circular No. 6 3 4 6 " 1 June 4, 1969 J Invitation for Bids on $700,000,000 of 39-Day Commodity Credit Corporation Certificates of Interest Special Series Dated June 23, 1969 Due August 1, 1969 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of an invitation for bids authorized by the Commodity Credit Corporation to be issued today on its special series of certificates of interest: Com m odity Credit Corporation (hereinafter referred to as “ CCC” ), an agency and instrumentality of the United States within the Department o f Agriculture, hereby invites bids for the purchase o f a special series o f non-interest bearing n ego tiable Certificates o f Interest in an approximate amount of $700,000,000. These Certificates evidence participation in the financing, and an interest in a pool, o f outstanding CCC price support loans on agricultural commodities. The Certificates will be sold on a discount basis and will be issued in denomina tions o f $5,000, $10,000, $100,000, and $1,000,000. Denom ina tional exchanges may be made only at the Federal Reserve Bank of N ew York. The Certificates have a maturity date of August 1, 1969, and will be redeemed by CCC on or after the maturity date on 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 Treas ury T ax and Loan accounts. Bids will be received at the head office of any Federal Reserve Bank up to 1:30 p.m., E .D .T., Tuesday, June 17, 1969. Bids must be in writing in multiples o f $5,000 and the price offered must be expressed on the basis o f 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 accounts of customers provided the names o f 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 o f 2 percent of the face amount of the Certificates bid for, unless such bids are accom panied 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 o f 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, non competitive 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) o f accepted competitive bids. T hose sub mitting successful bids will be so advised by the Federal Reserve Bank to which the bid was submitted, and settlement therefor must be made at such Bank on June 23, 1969, in U. S. dollars, either in cash or other immediately available funds. Payment cannot be made by credit through the Treasury T ax and Loan account. CCC has statutory authority to borrow up to $14.5 billion and reserves an amount o f its uncommitted borrow ing authority sufficient to redeem outstanding special series Certificates of Interest. CCC has an arrangement to borrow from the Secre tary of the Treasury o f the United States any portion o f the uncommitted amount of its borrow ing authority whenever needed to redeem such Certificates, which arrangement is con firmed in a letter dated May 29, 1969, from David M. Kennedy, Secretary of the Treasury, to Clarence D. Palmby, President o f Com m odity Credit Corporation, the text o f which is as follow s: Reference is made to the request that an arrangement be made between C om m odity Credit Corporation and the Secretary o f the Treasury to borrow any portion of the uncommitted amount of Com m odity Credit Corporation’ s borrow ing authority whenever it is needed to redeem out standing Special Series Certificates o f Interest. The C om m odity Credit Corporation has statutory authority (15 U.S.C. 714b(i) and 713a-4) to borrow up to $14.5 billion, provided the approval o f the Secretary o f the Treasury is obtained. I am advised that the unused balance o f Com m odity Credit Corporation’s authorized borrow ing authority presently exceeds $.9 billion. I understand that the Com m odity Credit Corporation has reserved $700 m il lion of this unused balance to be used only for the redem p tion of Special Series Certificates at maturity on August 1, 1969. A ccordin gly, on the records o f the Treasury D epart ment, we are reserving $700 million o f your total unused borrow ing authority for the purpose o f redeem ing outstand ing Special Series Certificates o f Interest. I understand that in the opinion of the General Counsel o f the Departm ent of Agriculture these Certificates contain a contractual obligation by the C om m odity Credit Corpora tion to redeem such Certificates and that this obligation is also a contractual obligation o f the United States. This Bank will receive bids in accordance with the foregoing invitation up to 1 :30 p.m., Eastern Daylight Saving time, Tuesday, June 17, 1969, at the Securities Department of its Head Office. Please use the form on the reverse side of this circular to submit bids and return them sealed in the enclosed envelope marked “ Tender for CCC Certifi cates of Interest.” Bids may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement must be made in immediately available funds at this Bank on Monday, June 23, 1969. A lfred H a y e s , President. ( over) W H H H O XI/1A8 J A flB O B ^ 0................ TENDER FOR 39-DAY COMMODITY CREDIT CORPORATION CERTIFICATES OF INTEREST, SPECIAL SERIES Dated June 23, 1969 To F e d e ra l R eserve B ank of N ew Due August 1, 1969 Dated at Y ork, Fiscal Agent of the Commodity Credit Corporation. .................... ......................................, 1969 Pursuant to the invitation for bids issued by the Commodity Credit Corporation on June 4, 1969, and printed on the reverse side of this tender, the undersigned hereby offers to purchase such certificates in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER (In multiples of $5,000) D o not fill in both competitive and noncompetitive tenders on one form $ .........................................................(maturity value), or any lesser amount that may be awarded. Price: ............ ......................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) ] NONCOMPETITIVE TENDER (In multiples of $5,000) $ .........................................................(maturity value). (N ot to exceed $200,000 for one bidder through all sources) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the certificates as indicated below Pieces Denomination $ Maturity value □ □ □ 5,000 10,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count of member bank only)* 4. Special instructions: Payment will be made as follow s: □ By charge to our reserve account □ By cash or check in immediately available funds 100,000 1,000,000 (Payment cannot be made through Treasury Tax and Loan Account) (N o changes in delivery instructions will be accepted) Total * If this item is checked, the undersigned certifies that the allotted certificates will be owned solely by the undersigned. Name of subscriber Insert this tender in special envelope marked “ Tender for CCC Certificates of Interest” By .............................. T i t l e .............. ....... (Please print) By (Official signature(s) required) .......... . Title ........ Address .................................... .................. .............................. .......... .. ........................ (Banking institutions submitting tenders for customer account must list names below or on an attached rider) (Name of customer) (Name of customer) I N S T R U C T IO N S : 1. N o tender for less than $5,000 will be considered, and each tender must be for an even multiple o f $5,000 (m aturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Bank ing institutions submitting tenders for customer account m ay consolidate competitive tenders at the same price and may consolidate noncom petitive tenders, provided a list is attached showing the name o f each bidder, the amount bid for his account, and method o f payment. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing o f the tender 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 of the firm, w ho should sign in the form “ .....................................................................................•••> a copartnership, by ..........................................................................................................a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount of certificates o f interest applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion of the Com m odity Credit Corporation, is material, the tender may be disregarded.
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