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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the U nited States r Circular No. 7 0 4 3 "I k November 24, 1972 J Offering of $2,500,000,000 of 199-Day Tax Anticipation Treasury Bills D ated D ecem ber 5, 1972, D ue June 22,1973 To AU Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued November 22 by the Treasury Departm ent: c The Treasury D epartm ent, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 199-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 D ecem ber 5, 1972, and will m ature June 22, 1973 (C U SIP No. 912793 R H 1). They will be accepted at face value in paym ent of income taxes due on June 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 m aturity. Taxpayers desiring to apply these bills in paym ent of June 15, 1973 income taxes may subm it the bills to a Federal Reserve Bank or Branch or to the Office of the T reasurer 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 June 15, 1973. In the case of bills subm itted in paym ent of incom e 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 June 15, 1973, to the D istrict D irector of Internal Revenue for the D istrict in w hich such taxes are payable. The bills will be issued in bearer form only, and in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $ , (m aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., E astern Standard time, W ednesday, N ovember 29, 1972. Tenders will not be re ceived at the Treasury D epartm ent, W ashington. E ach tender m ust be for a minimum of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case of competitive tenders the price offered m ust be expressed on the basis of , w ith 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. Banking institutions generally may subm it tenders for account of customers, provided the names of the customers are set forth in such tenders. O thers 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 1 000,000 100 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 tim e, W ednesday, November 29, 1972. Im m ediately after the closing hour, tenders will be opened at the Federal 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, noncom petitive tenders for $400,000 or less w ithout stated price from any one b idder 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 with the bids m ust be m ade or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on D ecem ber , 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. 5 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 when the bills are sold redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the ow ner of Treas ury bills (other than life insurance companies) issued hereunder m ust include in his income tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, w hether ori 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 C ircular 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 m ay be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Wednesday, November 29, 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 December 5, 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 L lfred H ay es, President. ( over) T IM P O R T A N T Please m ake certain th at all requested d ata is supplied o n this fo r m , including the num ber and denom ination of pieces desired and the delivery and paym ent instructions. T E N D E R FO R 199-DAY TAX A NTIC IPATIO N TREASURY BILLS D ated D ecem ber 5,1972 D ue June 22,1973 Dated a t ............................................................. To F e d e r a l R e s e r v e B a n k o f N e w Y o rk , Fiscal Agent of the United States. , 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: C O M P E T IT IV E T E N D E R Do not fill in both C om petitive and j N oncom petitive tenders on one form N O N C O M P E T IT IV E T E N D E R $ ............................................................... ( maturity value), or any lesser amount that may be awarded. $ ............................................................. (maturity value). ( N ot to exceed $400,000 for one bidder through all sources) Price: .................................... per 100. ( Price m ust be expressed w ith not more than three decimal places, for example, 99.925) at the average price of accepted competitive bids. 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, Wednesday, Novem ber 29, 1972. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces n 1. Dundersigned eliver over the counter to the 2. Ship to the undersigned 15,000 □ 3. 50,000 n 4. H old as collateral for Treasury Tax and Loan Account* □ 5. Special instructions: Denom ination M aturity value 10,000 $ 100,000 □ H old in safekeeping (for ac count of m em ber bank o n ly )4* Paym ent will be m ade as follows: □ By charge to our reserve account □ 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 D eposit b elow .) 500,000 1,000,000 ( N o changes in delivery instructions will be accep ted ) Totals * The undersigned certifies that the allotted bills will be owned solely by the undersigned. ( Name o f subscriber — please print or ty p e ) Insert this tender in special envelope m arked “Tender for Tax Anticipation Treasury 31118” ( Address — please print or ty p e ) (Tel. N o .) (Signature o f subscriber or authorized signature) (Title of authorized signer) (Banks subm itting tenders for customer account must indicate name on line below, or attach a list) (N am e o f custom er) (Name of customer) INSTRUCTIONS: 1. No tender for less than $10,000 will be considered and each tender m ust be for an even m ultiple of $5,000 (m aturity value). 2. Others than banking institutions will not be perm itted to subm it tenders except for their own account. Banks subm itting tenders for custom er account m ay consolidate com petitive tenders at the same price and may consolidate non competitive 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 m aking 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 th e corporation will be 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 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 express guaranty of paym ent by an incorporated bank or trust company. All checks m ust be draw n 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. Advice of Deposit in Treasury Tax and Loan Account To F e d e r a l R e se r v e B a n k o f N e w Y ork , Fiscal Agent of the United States. W e will deposit on December 5, 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 for 199-day tax anticipation Treasury bills, dated December 5, 1972, due June 22, 1973. (Name of Depositary) By . . . . (Authorized signature(s) required) Address (City and State)
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