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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 6 7 7 1 *1 L July 30,1971 J Auction of $2V2 Billion of 18-Month 6 Vi Percent Treasury Notes To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The T reasu ry announced today that it w ill auction $2.5 billion o f 18-month G1/^ percent notes on T hursday, A ugust 5. The details o f this offering, as announced b y the T reasury, are printed below. D E T A IL S OF T R E A S U R Y A N N O U N C E M E N T O F A U C T IO N OF $2i/ 2 B IL L IO N O F N E W N O TE S The $21/2 billion, or thereabouts, o f . 18-month 6% % Treasury Notes o f Series C-1973 to be sold at auction under competitive and noncompetitive bidding will be issued on August 16, 1971, and mature February 15, 1973. The notes w ill be issued in registered and bearer form in denominations o f $1,000, $5,000, $10,000, $100,000 and $1,000,000. Tenders for the notes will be received up to 1 :30 p.m., Eastern Daylight Saving time, Thursday, August 5, 1971, at any Federal Reserve Bank or Branch and at the Office o f the Treasurer o f the United States, W ashington, D. C. 20220. Tenders received after the closing hour will not be accepted. Each tender must be in the amount o f $1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term “ noncompeti tiv e ,” if it is a noncompetitive tender. The price on competitive tenders must be expressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99.76 will not be accepted. Fractions may not be used. The notation “ T E N D E R F O R T R E A S U R Y N O T E S ” should be printed at the bottom of the envelope in which the tender is submitted. Public announcement will be made of the amount and price range o f accepted tenders. Those submitting tenders will be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly re serves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations noncom petitive tenders fo r $200,000 or less will be accepted in full at the average price (in two decimals) o f accepted com petitive tenders. This price may be 100.00, or more or less than 100.00. Commercial banks, which fo r this purpose are de fined as banks accepting demand deposits, may submit tenders for account of customers provided the names o f the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except fo r their own account. Tenders will be received without deposit from banking institutions fo r their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pen sion and retirement and other public funds, inter national organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make prim ary markets in Govern ment securities and report daily to the Federal R e serve Bank o f New Y ork their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment o f 5 percent of the face amount o f notes applied for. Payment fo r accepted tenders must be completed on or before Monday, August 16, 1971, at the Federal Reserve Bank or Branch or at the Office o f the Treas urer o f the United States in cash, 4 % Bonds of 1971 or 8i/4 % Notes o f Series F-1971 (which will be ac cepted at p a r), or other funds immediately available to the Treasury by that date. A n y qualified depositary will be permitted to make settlement by credit in its Treasury tax and loan account for not more than 50% o f the amount of notes allotted to it fo r itself and its customers. W here fu ll payment is not completed in funds available by the payment date, the allotment will be canceled and the deposit with the tender up to 5 percent o f the amount o f notes allotted w ill be subject to forfeiture to the United States. Nonbank investors should understand that their checks will constitute payment only if they are fu lly and finally collected by the payment date, Monday, August 16, 1971. Checks not so collected will subject the investor’s deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at a Federal Reserve Bank received on the payment date will not constitute immediately available funds on that date. A ccordin gly, in order that a check will constitute immediately available funds to the Treas ury by the payment date, it should be submitted suffi ciently in advance to assure completion o f its col lection by Monday, August 16, 1971. Checks should be drawn to the order o f the office to which the tender is submitted. I f a check for the fu ll amount of the payment is submitted with the subscription, it should be, in the case o f tenders at a competitive price, equal to the total purchase price o f the notes bid for, or, in the case o f noncompetitive tenders, equal to the fu ll face amount o f the notes bid for. Bidders on a non com petitive basis who submit checks fo r the face amount o f the notes bid fo r will be ( 1) required to pay an additional amount if the purchase price is more than 100, or ( 2 ) paid the difference if the purchase price is less than 100. Commercial banks are prohibited from making un secured loans, or loans collateralized in whole or in part by the notes bid for, to cover the deposits re quired to be paid when tenders are entered, and they will be required to make the usual certification to that effect. Other lenders are requested to refrain from making such loans. A ll bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition o f the notes bid fo r under this offering at a specific rate or price, until after 1 :30 p.m., Eastern Daylight Saving time, Thurs day, August 5, 1971. The terms o f this offerin g are set fo rth in T reasury D epartm ent Circular No. 8-71, P ublic D ebt Series, a cop y o f which is printed on the follow in g pages. This Bank w ill receive tenders up to 1:30 p.m., E astern D aylight Saving time, Thursday, A ugust 5, 1971, at the Securities D epartm ent o f its H ead Office and at its B u ffalo Branch. Please use the enclosed tender form s to submit tenders, and return them in the enclosed envelope m arked “ Tender fo r T reasury N otes . ’ 9 T enders not requiring a deposit m ay be submitted by telegraph, subject to w ritten con firm ation; no tenders m ay be submitted b y telephone. Settlement fo r accepted tenders m ay be made in cash, 8 percent T rea su ry N otes o f Series F-1971, 4 percent T reasury Bonds o f 1971, or other im m ediately available funds, except that any qualified depositary m ay make settlement b y credit in its T reasury T ax and L oan A ccount fo r not m ore than 50 percent o f the amount o f notes allotted to it fo r itself and its custom ers. A lfred H ayes, President. FORM NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Thursday, August 5, 1971. TENDER FOR 6 V2 PERCENT TREASURY NOTES OF SERIES C-1973 Dated August 16, 1971 F ederal R eserve Ban k of N e w Due February 15, 1973 Y Dated a t ........................................ ork, Fiscal Agent o f the United States, N ew York, N. Y. 10045 ............................................................... , 1971 Pursuant to the provisions of Treasury Department Circular No. 8-71, Public D ebt Series, dated August 2, 1971, the undersigned hereby offers to purchase United States o f America 6 V2 percent Treasury Notes of Series C-1973 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 D o not fill in both Competitive and Noncompetitive tenders on one form NONCOMPETITIVE TENDER $ ......................................................... ( maturity value), or any lesser amount that may be awarded. (Not to exceed $200,000 for one bidder through all sources) Price: ......................... per 100 (minimum o f 99.76). at the average price o f accepted competitive bids. $ ........................................................... ( maturity value) (Price must be expressed with not more than two decimal places, for example, 100.00) Subject to allotment, please issue, deliver, and make payment for the notes as indicated below : Pieces Denomination $ 1,000 Maturity value O 1. Payment will be made as follows: undersigned □ By charge to our account on your books □ 2. 5,000 □ 3. Hold in safekeeping (for ac count o f member bank only)* □ By cash or check in immediately available funds on delivery 10,000 □ 4. □ By credit in Treasury Tax and Loan Account — not more than 50% of purchase price, rounded to next higher $1,000 (Please complete Advice of Deposit on reverse side) ury Tax and Loan Account* 100,000 □ 5. Special instructions: 1,000,000 Totals (N o ages in delivery instructions will be accepted ) 9 The undersigned certifies that the allotted notes will be ow ned solely by the undersigned. ( If a commercial bank is subscribing for its own account or for account of customers, the following certifications are made a part of this tender.) W e H e r e r y C e r t i f y that w e have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part o f this tender; that there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that w e have not made unsecured loans, or loans collateralized in whole or in part by the notes bid for, to supply the amounts o f such payments to any o f such customers; that w e have no beneficial interest in the tenders o f such customers; and that none o f our customers has any beneficial interest in the amount b id for our ow n account. W e F u r t h e r C e r t i f y that tenders received b y us, if any, from other commercial banks for their own account and for the account o f their customers have been entered with us under the same conditions, agree ments, and certifications as set forth in this form. W e hereby agree not to buy or sell, or to make any agreements with respect to the purchase or sale or other disposition of any notes of this issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving time, Thursday, August 5,1971. (Name of subscriber — please print or type) Insert this tender in special envelope marked “Tender for Treasury Notes ” (Address — please print or type) (Tel. No.) ( Signature of subscriber or authorized signature) (Title of authorized signer) ( Banks submitting tenders for customer account must indicate names on reverse side hereof) INSTRUCTIONS: 1. value). No tender for less than $1,000 will be considered and each tender must be for an even multiple of $1,000 (maturity 2. Others than commercial banks will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation author ized to make the tender, and the signing of the tender by an officer of 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, who should sign in the form “ .......................... ................................................................ a copartnership, by ................................. .................................................. . a member o f the firm.” 4. Tenders will be received without deposit from banking institutions 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 notes applied for. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. List of Customers Included in this Subscription (I f space is insufficient in schedule below, attach separate listing) Name of ultimate purchaser Amount subscribed Name of ultimate purchaser Amount subscribed Advice of Deposit in Treasury Tax and Loan Account T o F e d e r a l R e ser ve B a n k of N e w Y ork, Fiscal Agent o f the United States. W e will deposit on August 16, 1971 to your credit in the Treasury Tax and Loan A ccount on our books, to b e held sub ject to withdrawal on demand, an amount equal to 5 0 % o f the purchase price o f the notes allotted to us on our tender for 6 V2 percent Treasury Notes o f Series C-1973. (Name of Depositary) By . . . (Authorized signature(s) required) Address (City and State) UNITED STATES OF AMERICA 6Vi PERCENT TREASURY NOTES OF SERIES C-1973 Due February 15, 1973 Dated and bearing interest from August 16 , 1971 DEPARTMENT CIRCULAR Public Debt Series — N o. 8-71 D E PARTM EN T OF TH E TR E A SU R Y Office o f the Secretary, Washington, August 2, 1971. I. OFFERING OF NOTES 1. The Secretary o f the Treasury, pursuant to the authority o f the Second Liberty B ond A ct, as amended, invites tenders at a price not less than 99.76 percent o f their face value fo r $2,500,000,000, or thereabouts, o f notes o f the United States, designated 6!/2 percent Treasury Notes o f Series C-1973. Ten ders will be received up to 1 :30 p.m., Eastern D ay light Saving time, Thursday, A ugust 5, 1971, under com petitive and noncompetitive bidding, as set forth in Section I I I hereof. The 8*4 percent Treasury Notes o f Series F-1971 and 4 percent Treasury Bonds o f 1971 m aturing A ugust 15, 1971, will be accepted at par in payment, in whole or in part, to the ex tent subscriptions are allotted by the Treasury. II. D ESC RIPTIO N OF NOTES 1. The notes will be dated A ugust 16, 1971, and w ill bear interest from that date at the rate o f 6 ^ percent per annum, payable on a semiannual basis on February 15 and A ugust 15, 1972, and February 15, 1973. They will mature February 15, 1973, and will not be subject to call fo r redemption prior to maturity. 2. The income derived from the notes is subject to all taxes imposed under the Internal Revenue Code o f 1954. The notes are subject to estate, inheritance, g ift or other 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, or any o f the possessions o f the United States, or by any local taxing authority. 3. The notes will be acceptable to secure deposits o f public moneys. They will not be acceptable in pay ment o f taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations o f $1,000, $5,000, $10,000, $ 100,000 and $1,000,000. Provision will be made for the interchange o f notes o f different denominations and o f coupon and registered notes, and fo r the trans fer o f registered notes, under rules and regulations prescribed by the Secretary o f the Treasury. 5. The notes will be subject to the general regula tions o f the Department of the Treasury, now or here after prescribed, governing United States notes. III. TEN D ERS AND ALLOTM ENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Office o f the Treasurer o f the United States, W ashington, D. C. 20220, up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Thursday, A ugust 5, 1971. Each tender must state the face amount o f notes bid for, which must be $ 1,000 or a multiple thereof, and the price offered, except that in the case o f noncompetitive tenders the term “ noncom petitive” should be used in lieu o f a price. In the case o f competitive tenders, the price must be expressed on the basis o f 100, with two deci mals, e.g., 100.00. Tenders at a price less than 99.76 will not be accepted. Fractions may not be used. Non com petitive tenders from any one bidder may not exceed $200,000. It is urged that tenders be made on the printed form s and forw arded in the special enve lopes marked “ Tender fo r Treasury N otes” , which will be supplied by Federal Reserve Banks on appli cation therefor. 2. Commercial banks, which fo r this purpose are defined as banks accepting demand deposits, may sub mit tenders fo r account o f customers provided the names o f the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except fo r their own account. Ten ders will be received without deposit from banking institutions fo r their own account, Federally-insured savings and loan associations, States, political sub divisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds mem bership, foreign central banks and foreign States, dealers who make prim ary markets in Government securities and report d a ily -to the Federal Reserve Bank o f New Y ork their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment (in cash or the securities referred to in Section I which will be accepted at par) o f 5 percent o f the face amount o f notes applied for. 3. Immediately after the closing hour tenders will be opened, follow ing which public announcement will be made by the Department o f the Treasury o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. In considering the acceptance o f tenders, those at the highest prices will be accepted to the extent required to attain the amount offered. Tenders at the lowest accepted price will be prorated i f necessary. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all ten ders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r $200,000 or less without stated price from any one bidder will be accepted in fu ll at the average price* (in two decimals) o f accepted competitive tenders. 4. A ll bidders are required to agree not to pur chase or to sell, or to make any agreements with respect to the purchase or sale or other disposition o f any notes o f this issue at a specific rate or price, until after 1 :30 p.m., Eastern D aylight Saving time, Thursday, A ugust 5, 1971. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial inter est in any o f the tenders they enter fo r the account o f their customers, and that their customers have no beneficial interest in the banks ’ tenders fo r their own account. IV. PAYMENT 1. Settlement fo r accepted tenders in accordance with the bids must be made or completed on or be fore A ugust 16, 1971, at the Federal Reserve Bank or Branch or at the Office o f the Treasurer o f the United States, W ashington, D. C. 20220, in cash, securities referred to in Section I (interest coupons dated A ugust 15, 1971, should be detached) or other funds immediately available by that date. Payment will not be deemed to have been completed where reg istered notes are requested if the appropriate iden tify ing number as required on tax returns and other docu ments submitted to the Internal Revenue Service (an individual’s social security number or an em ployer identification num ber) is not furnished. In every case where fu ll payment is not completed, the payment with the tender up to 5 percent o f the amount o f notes allotted shall, upon declaration made by the Secretary o f the Treasury in his discretion, be forfeited to the United States. A n y qualified depositary will be permitted to make settlement by credit in its Treasury Tax and Loan A ccount fo r not more than 50 percent o f the amount o f notes allotted to it fo r itself and its customers. W hen payment is made with eligible securities a cash adjustment will * Average price may be at, or more or less than 100.00. be made to or required o f the bidder fo r any differ ence between the face amount o f securities submitted and the amount payable on the notes allotted. V. ASSIGNMENT OF REGISTERED SECURITIES 1. Registered securities tendered as deposits and in payment fo r notes allotted hereunder should be assigned by the registered payees or assignees thereof, in accordance with the general regulations o f the Department o f the Treasury, in one o f the form s here after set forth. Securities tendered in payment should be surrendered at the Federal Reserve Bank or Branch or at the Office o f the Treasurer o f the United States, W ashington, D. C. 20220. The securities must be delivered at the expense and risk o f the holder. I f the notes are desired registered in the same name as the securities surrendered, the assignment should be to “ The Secretary o f the Treasury fo r 6V2 percent Treasury Notes o f Series C-1973” ; if the notes are desired registered in another name, the assignment should be to “ The Secretary o f the Treasury for 6Y2 percent Treasury Notes o f Series C-1973 in the n a m e .............................................................. ’ ’ ; if notes in coupon form are desired, the assignment should be to “ The Secretary o f the Treasury fo r 6^ percent Treasury Notes o f Series C-1973 in coupon form to be delivered t o .................................................................. ’ \ VI. GENERAL PROVISIONS 1. As fiscal agents o f the United States, Federal Reserve Banks are authorized and requested to re ceive tenders, to make such allotments as may be prescribed by the Secretary of the Treasury, to issue such notices as may be necessary, to receive payment for and make delivery o f notes on full-paid tenders allotted, and they may issue interim receipts pending delivery o f the definitive notes. 2. The Secretary o f the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offer ing, which will be communicated prom ptly to the Federal Reserve Banks. JOHN B. CONNALLY, Secretary of the Treasury.
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