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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gent o f the United States r Circular No. 6 7 9 1 ~i I August 26, 1971 J Auction of $1% Billion of New Treasury Notes To A ll Banking Institutions, and Others Concerned, in the Second Federal R eserve D istrict: The Treasury announced yesterday that it will auction $ l 1/4 billion of new notes on Tuesday, August 31. The details of this offering, as announced by the Treasury, are printed below. D E T A IL S OF T R E A S U R Y AN N O U N C E M E N T The Treasury today invited tenders fo r $11,4 billion, or thereabouts, o f 5-year 2-month Treasury Notes of Series D-1976. The notes to be sold at auction on Tuesday, August 31, under competitive and non competitive bidding will be issued on September 8, 1971, and will mature November 15, 1976. The rate fo r the notes will be publicly announced on Friday, A ugust 27. The notes will 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, Tuesday, August 31, 1971, at any Federal Reserve Bank or Branch and at the Office of the Treasurer o f the United States, W ashington, D. C. 20220; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than August 30. Each tender must be in the amount of $1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term “ noncompeti tive,” 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 9.86 will not be accepted. Fractions may not be used. The notation “ T E N D E R FOR 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 of accepted tenders. Those submitting tenders will be advised of 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 for $200,000 or less will be accepted in full at the average price (in two decimals) of accepted competitive tenders. This price may be 100.00, or more or less than 100.00. Commercial banks, which for this purpose are de fined as banks accepting demand deposits, may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from commercial and other banks fo r their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, pub lic 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 prim ary markets in Govern ment securities and report daily to the Federal Re serve 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 o f the face amount of notes applied for. Payment for accepted tenders must be completed on or before W ednesday, September 8, 1971, at the F ed eral Reserve Bank or Branch or at the Office o f the Treasurer o f the United States in cash 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 fo r notes allotted to it fo r itself and its customers. W here full 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 of notes allotted will 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, W ednesday, September 8, 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 ccordingly, 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 b y W ednesday, September 8, 1971. Checks should be drawn to the order o f the office to which the tender is submitted. I f a check fo r the fu ll amount o f the payment is submitted with the subscription, it should be, in the case o f tenders at a com petitive 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 noncompetitive basis who submit checks fo r the face amount of 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 for under this offering at a specific rate or price, until after 1 :30 p.m., Eastern D aylight Saving time, Tues day, August 31, 1971. The terms o f this offering are set forth in Treasury Department Circular No. 9-71, Public Debt Series, a copy o f which is printed on the following pages. This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, August 31, 1971, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the enclosed tender forms to submit tenders, and return them in the enclosed envelope marked “ Tender for Treasury Notes.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con firmation; no tenders may be submitted by telephone. Settlement for accepted tenders may be made in cash or other immediately available funds, except that any qualified depositary may make settlement by credit in its Treasury Tax and Loan Account for notes allotted to it for itself and its customers. A lfred H ayes, President. FORM NA I M P O R T A N T — C losing time for receipt of this tender is 1:30 p.m ., Tuesday, A ugust 31, 1971. TENDER FOR TREASURY NOTES OF SERIES D-1976 D a te d Septem ber 8, 1971 F e d e r a l R eserve B a n k of D u e N ovem ber 15, 1976 Dated a t ........................................ N e w Y ork, Fiscal Agent o f the United States, N ew York, N. Y. 10045 ......................................................................... , 1971 Pursuant to the provisions of Treasury Department Circular No. 9-71, Public D ebt Series, dated August 26, 1971, the undersigned hereby offers to purchase United States o f America Treasury Notes o f Series D-1976 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. C O M P E T IT IV E TENDER D o not fill in both Competitive and Noncompetitive tenders on one form N O N C O M P E T IT IV E T E N D E R $ .................................................................. (m aturity v a lu e), or any lesser amount that m ay be awarded. $ .................................................................... ( maturity v a lu e) (Not to exceed $200,000 for one bidder through all sources) Price: ......................... per 100 (minimum o f 98.76). at the average price o f accepted com petitive bids. ( Price must be expressed with not more than two decimal places, for example, 100.00) Subject to allotment, please issue, deliver, and accept payment for the notes as indicated below (if registered notes are desired, please also com plete schedule on reverse sid e): Pieces Denomination $ Maturity value 1,000 5,000 10,000 □ 1. □ 2. Ship to the undersigned □ Payment will be made as follows: undersigned □ By charge to our account on your books 3. Hold in safekeeping (for ac count of member bank only)* □ By cash or check in immediately available funds on delivery □ 4. Hold as collateral for Treas ury Tax and Loan Account* □ □ 5. Special instructions: By credit in Treasury Tax and Loan Account (Please complete Advice of Deposit on reverse side) 100,000 1,000,000 Totals ( No changes in delivery instructions will be accepted) ° The undersigned certifies that the allotted notes will be ow ned solely b y 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 b y C e r t if y that w e have received tenders from our customers in the amounts set opposite the customers’ names on the list which is m ade 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 we have not made unsecured loans, or loans collateralized in w hole 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 own account. W e F u r t h e r C e r t if y that tenders received b y us, if any, from other com mercial banks for their own account and for the account of 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, Tuesday, August 31, 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 of 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. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 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. Treasury Notes of Series D-1976 Desired in Registered Form (If space is insufficient in schedule below, attach separate listing) Name in which notes shall be registered, taxpayer identifying number (Social Security Account Number or Employer Identification Number), and post-office address for interest checks and other mail. ( Please print or typewrite) ( Indicate under appropriate denominations, number of notes desired.) Amount $1,000 $10,000 $5,000 $100,000 $1,000,000 Name .... Ident. No. .......... Address .......................................................................... Name ............................................................................... Ident. N o......................................................................... Address ........................................................................... N a m e ............................................................................... Ident. N o ......................................................................... Address ........................................................................... ( If registered notes are not to be sent to the registered owner, give mailing information below .) Mail registered notes t o .................................................................................................................. (For use of commercial bank subscribers only) List of Customers Included in this Subscription (If space is insufficient in schedule below, attach separate listing) Name of ultimate purchaser --------------------------------------------- Amount subscribed Name of ultimate purchaser Amount subscribed Advice o f Deposit in Treasury Tax and Loan Account To F e d e r a l R eserve B ank of N e w Y ork, Fiscal Agent o f the United States. W e will deposit on September 8, 1971 to your credit in the Treasury Tax and Loan Account on our books, to be held subject to withdrawal on demand, an amount equal to the purchase price of the notes allotted to us on our tender for Treasury Notes o f Series D-1976. (Name of Depositary) By . . . (Authorized signature(s) required) Address (City and State) UNITED STATES OF AMERICA TREASURY NOTES OF SERIES D-1976 Dated and bearing interest from September 8 , 1971 D E P A R T M E N T C IR C U L A R P u b lic D eb t Series — N o. 9-71 Due November 15, 19 76 D E P A R T M E N T OF TH E T R E A SU R Y Office of the Secretary, Washington, August 26, 1971. I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites tenders at a price not less than 98.76 percent o f their face value for $1,250,000,000, or thereabouts, of notes of the United States, designated Treasury Notes of Series D-1976. The interest rate for the notes will be publicly announced by the Secretary of the Treasury on August 27, 1971. Tenders will be received up to 1 :30 p.m., Eastern Daylight Saving time, Tues day, August 31, 1971. The notes will be issued under competitive and noncompetitive bidding, as set forth in Section I I I hereof. II. D ESC RIPTIO N OF NOTES 1. The notes will be dated September 8, 1971, and will bear interest from that date, payable on a semi annual basis on May 15 and November 15, 1972, and thereafter on M ay 15 and November 15 in each year until the principal amount becomes payable. They will mature November 15, 1976, 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 of 1954. The notes are subject to estate, inheritance, gift 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 of 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 of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of notes of 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 of the Treasury. 5. The notes will be subject to the general regula tions of 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 of the Treasurer o f the United States, Washington, D. C. 20220, up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Tuesday, August 31, 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 of noncompetitive tenders the term “ noncom petitive” should be used in lieu of a price. In the case o f competitive tenders, the price must be expressed on the basis of 100, with two deci mals, e.g., 100.00. Tenders at a price less than 98.76 will not be accepted. Fractions may not be used. Non competitive tenders from any one bidder may not ex ceed $200,000. It is urged that tenders be made on the printed form s and forwarded in the special envelopes marked “ Tender fo r Treasury N otes” , which will be supplied by Federal Reserve Banks on application therefor. 2. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may sub mit tenders for 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. Tend ers will be received without deposit from banking institutions for their own account, Federally-insured savings and loan associations, States, political subdivi sions or instrumentalities thereof, public pension and retirement and other public funds, international or ganizations in which the United States holds member ship, foreign central banks and foreign States, dealers who make prim ary markets in Government securities and report daily 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 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 of accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. In considering the acceptance of tenders, the highest prices offered will be accepted in full down to the amount required, and if the same price appears in two or more tenders, and it is neces sary to accept only a part o f the amount offered at such price, the amount accepted at such price will be prorated in accordance with the respective amounts applied for. The Secretary o f the Treasury expressly reserves 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, non competitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price1 (in two decimals) o f accepted com petitive tenders. 4. A ll bidders are required to agree not to pur chase or to sell, or to make any agreements with re spect 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, Tues day, August 31, 1971. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial interest in any o f the tenders they enter for the account of their customers, and that their customers have no beneficial interest in the banks’ tenders fo r their own account. IV . PAYM EN T 1. Settlement for accepted tenders in accordance with the bids must be made or completed on or before September 8, 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 or other funds immediately available by that date. Payment i Average price may be at, or more or less than 100.00. w ill not be deemed to have been completed where reg istered notes are requested if the appropriate identi fyin g number as required on tax returns and other documents submitted to the Internal Revenue Service (an individu al’s social security number or an em ployer identification number) is not furnished. In every case where full 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 of the Treasury in his discretion, be forfeited to the United States. A n y qualified deposi tary will be permitted to make settlement by credit in its Treasury Tax and Loan A ccount for notes allot ted to it for itself and its customers. V. G E N E R A L P R O V IS I O N S 1. A s fiscal agents o f the United States, Federal Reserve Banks are authorized and requested to receive tenders, to make such allotments as may be prescribed by the Secretary o f 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 of 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. PAUL A. VOLCKER, Acting Secretary of the Treasury.
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