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U C t\ M L . rvC__ > l _ l \ v C. u n m v Wi I 'd .! Fiscal Agent of the United States r Circular No. 7 0 3 5 1 U November 13, 1972 -I Offering of $2,000,000,000 of 147-D ay Tax Anticipation Treasury Bills Dated November 24, 1972, Due April 20, 1973 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: T he follow in g statement was m ade public N ovem ber 10 by the Treasury Departm ent: The Treasury is selling $2.0 billion of tax anticipation bills maturing in April 1973 and $2.5 billion matur ing in June 1973. The April bills will be auctioned on November 17, for payment November 24. Commercial banks may make payment for their own and customers’ accepted tenders by crediting Treasury Tax and Loan Accounts. The bills will mature on April 20 but may be used at face value in payment of Federal income taxes due April 15, 1973. The details of the offering of the April bills are being released separately. The June bills will be auctioned on November 29, for payment December 5. The bills will mature on June 22 but may be used at face value in payment of Federal income taxes due June 15, 1973. The details of the offering of the June bills, including the extent, if any, to which commercial banks may make payment by cred iting tax and loan accounts, will be released later. F ollow in g is the text o f the public notice offering the April tax bills referred to in the above statement: ( The Treasury D epartm ent, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 147-day Treasury bills, to be issued on a discount basis under competitive and non com petitive bidding as hereinafter provided. The bills of this series will be dated November 24, 1972, and will m ature April 20, 1973 (C U SIP No. 912793 RG 3). They will be accepted at face value in paym ent of income taxes due on April 15, 1973, and to the extent they are not presented for this purpose the face am ount of these bills will be payable w ithout interest at maturity. Taxpayers desiring to apply these bills in paym ent of April 15, 1973 income taxes may subm it the bills to a F ederal Reserve Bank or Branch or to the Office of the Treasurer of the United States, W ashington, not more than fifteen days before th at date. In the case of bills subm itted in paym ent of income taxes of a corpo ration they shall be accom panied by a duly com pleted Form 503 and the office receiving these items will effect the deposit on April 15, 1973. In the case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall subm it on or before April 15, 1973, to the D istrict Director of Internal Revenue for the D istrict in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $ , (m aturity value). Tenders will be received a t F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Friday, November 17, 1972. Tenders will not be re ceived at the Treasury D epartm ent, W ashington. E ach tender must be for a minimum of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of , with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be m ade on the printed forms and for w arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. 1000,000 100 Banking institutions generally may subm it tenders for account of customers, provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom- panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an ex press guaranty of paym ent by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreem ents w ith respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Friday, November 17, 1972. Im m ediately after the closing hour, tenders will be opened at the F ederal Reserve Banks and Branches, following which public announcem ent will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting competitive 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, noncompetitive tenders for $300,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accordance w ith the bids must be made or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on November 24, 1972. Any qualified depositary will be perm itted to make settle m ent by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers. U nder Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code of 1954, the am ount of discount at which bills issued here under are sold is considered to accrue w hen the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treas ury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Friday, November 17, 1972, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed envelope marked “Tender for Tax Anticipation Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immedi ately available funds on November 24, 1972, except that any qualified depositary may make settlement by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers. A lfred H a y es, President. ( over) IMPORTANT — Please make certain that all requested data is supplied on this form, including the number and denomination of pieces desired and the delivery and payment instructions. T E N D E R FOR 147-DAY TAX A NTIC IPATIO N TREASURY BILLS Dated November 24, 1972 To Due April 20, 1973 Dated a t .................................. F e d e r a l R e s e r v e B antk o f N e w Y o r k , Fiscal Agent of the United States. ■-FI 19... Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills 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: COM PETITIVE TENDER J Do not fill in both C om petitive and] jJVoncom petitive tenders on one form] NONCOMPETITIVE TENDER $ ...................................................... (maturity value), or any lesser amount that may be awarded. $ ........................................... ......... Price: ................................per 100. at the average price of accepted competitive bids. (maturity value). ( N ot to exceed $300,000 for one bidder through all sources) (Price m ust be expressed w ith not more than three decimal places, for example, 99.925) W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Friday, Novem ber 17, 1972. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces M aturity value D enom ination $ □ eliver over the counter to the 1. Dundersigned 2. Ship to the undersigned 10,000 □ 15,000 □ 3. Hold in safekeeping (for ac count of m em ber bank only)** □ 4. Hold as collateral for T reas ury Tax and Loan A ccount □ 5. Special instructions: 50,000 100,000 Paym ent will be m ade as follows: 19 □ By charge to our reserve account u By cash or check in im m ediately available funds on delivery □ By credit in Treasury Tax and Loan Account. (Please com plete Advice of Deposit belo w .) 500,000 1,000,000 ( N o changes in delivery instructions w ill be accepted ) Totals The undersigned certifies that the allotted bills will be owned solely by the undersigned. (N am e o f subscriber — please print or type) Insert this tender in special envelope marked “Tender for Tax Anticipation Treasury Bills” ( Address — please print or type) (Tel. No.) (Signature o f subscriber or authorized signature) (T itle o f authorized signer) (Banks subm itting tenders for custom er account must indicate name on line below, or attach a list) (N am e o f custom er) (N am e o f custom er) IN STRU CTION S: 1. No tender for less than $10,000 will be considered and each tender must be for an even m ultiple of $5,000 (m aturity value). 2. Others than banking institutions will not he perm itted to subm it tenders except for their own account. Banks subm itting tenders for custom er account may consolidate com petitive tenders at the same price and may consolidate non com petitive tenders, provided a list is attached showing the nam e of each bidder, the am ount bid for his account, and m ethod of paym ent. Form s for this purpose will be furnished on request. 3. If 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 of the tender by an officer of the corporation will he construed as a repre sentation by him that he has been so authorized. If the tender is m ade by a partnership, it should be signed by a m em ber of the firm, who should sign in the form “ ................................................................................................................ . a copartnership, by ..................................................................................................... , a m em ber of the firm.” 4. Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. 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 m aterial, the ten d er m ay be disregarded. Advice o f Deposit in Treasury Tax and Loan Account To F ederal R eser v e B a n k of N ew York, Fiscal Agent of the United States. W e will deposit on November 24, 1972 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 bills allotted to us on our tender lor 147-day tax anticipation Treasury bills, dated November 24, 1972, due April 20, 1973. (Name of Depositary) By ......................................................................... ( Authorized signature ( s ) required) Address ................................................................................... ( City and State)