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FED ERAL RESERVE BANK OF NEW YORK F iscal A gent of the United States rCircular No. 7 0 5 6 1 LDecember 15, 1972 J Auction of $2 Billion of 2-Year 57s Percent Treasury Notes To A ll B anking In stitu tio n s, and Others Concerned, in the Second Federal Beserve D istrict: Following is the text of the details of the T re a su ry ’s note auction announced in our Circular No. 7055, dated December 14,1972: The Treasury will auction $2.0 billion, or there abouts, of 2-year Treasury Notes under competitive and noncompetitive bidding. The notes will be des ignated 5 % % Treasury Notes of Series F-1974, dated December 28, 1972, due December 31, 1974 (CUSIP No. 912827 CV2). The notes will be issued in registered and bearer form in denominations of $1,000, $5,000, $10,000, $100,000 and $1,0.00,000. Interest will be payable on June 30 and December 31 until maturity. Tenders for the notes will be received up to 1:30 p.m., Eastern Standard time, Wednesday, December 20, 1972, at any Federal Reserve Bank or Branch and at the Office of the Treasurer of the United States, Securities Division, Washington, D. C. 20220; pro vided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than Tuesday, December 19. 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 “ noncom petitive” , 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 99.51 will not be accepted. Fractions may not be used. The notation “ TENDER FOR TREASU R Y N O T E S” should be printed at the bottom of the envelope in which the tender is sub mitted. Public announcement will be made of the amount and price range of accepted tenders. Those submit ting tenders will be advised of the acceptance or re jection thereof. The Secretary of the Treasury ex pressly 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 reserva tions noncompetitive tenders for $200,000 or less will be accepted in full at the average price (in two deci mals) 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 sub mit tenders for account of customers provided the names of the customers are set forth in such tenders. Other than commercial banks will not be permitted to sumbit tenders except for their own account. Tenders will be received without deposit from com mercial and other banks for their own account, Fed erally-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 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 of the face amount of notes applied for. Payment for accepted tenders must be completed on or before Thursday, December 28, 1972, at the Federal Reserve Bank or Branch or at the Office of the Treas urer of the United States in cash or other funds im mediately available to the Treasury by that date. Any qualified depositary will be permitted to make settle ment by credit in its Treasury tax and loan account for the amount of the notes allotted to it for itself and its customers. Where full payment is not com pleted in funds available by the payment date, the allotment will be canceled and the deposit with the tender up to 5 percent of the amount of notes allotted will be subject to forfeiture to the United States. The Treasury will construe as timely payment any check drawn to the order of the Federal Reserve Bank or the Treasurer of the United States that is received at such bank or office by Tuesday, December 26, 1972, provided the cheek is drawn on a bank in the Federal Reserve District of the bank or office to which the tender is submitted. Other checks will constitute pay ment only if they are fully and finally collected by the payment date Thursday, December 28, 1972. 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. 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. All 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 of the notes bid for under this offering at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, W ed nesday, December 20, 1972. The term s of this offering are set forth in T reasury D epartm ent Circular No. 12-72, Public Debt Series, a copy of which is printed on the following pages. This Bank will receive tenders up to 1:30 p.m., E astern S tandard time, W ednesday, December 20, 1972, at the Securities D epartm ent of its Head Office and at its Buffalo Branch, except th at noncompetitive tenders mailed to this Bank or its Branch postm arked no later than Tuesday, December 19, will be considered timely. Please use the enclosed tender forms to submit tenders, and return them in the enclosed envelope marked “ Tender for T reasury N otes.” Tenders not requiring a deposit may be submitted by telegraph, subject to w ritten confirm ation; no tenders may be submitted by telephone. Settlem ent 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 T reasury Tax and Loan Account for notes allotted to it for itself and its customers. A lfred H ayes, President. F O R M NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Wednesday, December 20,1972. T E N D E R FO R 5% P E R C E N T TREASURY NOTES O F SERIES F-1974 Dated December 28,1972 F ederal R eserve Bank of N ew D ue December 31,1974 Dated a t ...................................................... York, Fiscal Agent of the United States, New York, N. Y. 10045 ............................................................, 1972 Pursuant to the provisions of Treasury Department Circular No. 12-72, Public Debt Series, dated December 15, 1972, the undersigned hereby offers to purchase United States of America 5 7 percent Treasury /s Notes of Series F-1974 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 Do not fill in both C om petitive and N oncom petitive tenders on one form NONCOMPETITIVE TENDER $ ...................................................... (maturity value), or any lesser amount that may be awarded. $ ........................................................... ( maturity value) Price: ...................... per 100 (minimum of 99.51). at the average price of accepted competitive bids. ( N ot to exceed $200,000 for one bidder through all sources) (Price m ust be expressed w ith 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 complete schedule on reverse side): Pieces D enomination M aturity value □ 1,00 0 □ 5,000 $ □ 1. D eliver over the counter to the undersigned 2 Ship to the undersigned . Payment will be m ade as follows: By charge to our account on your books 3. H old in safekeeping (for ac count of m em ber bank only)* □ By cash or check in im m ediately available funds on delivery □ 4. Hold as collateral for Treas ury Tax and Loan Account* □ □ 10 0 ,00 10,00 00 1,00 0 0,00 U 5. Special instructions: By credit in Treasury Tax and Loan Account. (Please com plete Advice of D eposit on reverse sid e.) ( N o changes in delivery instructions w ill be accepted ) Totals The undersigned certifies that the allotted notes will be owned solely by the undersigned. 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 notes of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Wednesday, Decem ber 20,1972. ( If a commercial bank is subscribing for its own account or for account of customers, the following certifications are made a p art of this te n d e r.) W e H e r e b y C e r t i f y that we have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part of 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 whole or in part by the notes bid for, to supply the amounts of such payments to any of such customers; that we have no beneficial interest in the tenders of such customers; and that none of our customers has any beneficial interest in the amount bid for our own account. W e F u r t h e r C e r t i f y that tenders received by us, if any, from other commercial 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. (Name of subscriber — please print or type) Insert this tender in special envelope marked “Tender for Treasury N o tes’ (Address — please print or type) (Tel. No.) ( Signature of subscriber or authorized signature) (Title of authorized signer) ( Banks subm itting tenders for customer account must indicate names, and amounts desired by each, on a separate list attached hereto) IN STRU CTION S: 1. v alu e). No tender for less than $1,000 will be considered and each tender must be for an even multiple of $1,000 (m aturity 2. Others than commercial banks will not be perm itted to subm it tenders except for their own account. Banks subm itting 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 th at 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 commercial and other banks for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrum entalities thereof, public pension and retirem ent and other public funds, international organizations in w hich the U nited States holds mem bersnip, foreign central banks and foreign States, dealers who make prim ary m arkets in G overnm ent securities and report daily to the Federal Reserve Bank of New York their positions w ith respect to Governm ent securities and borrowings thereon, and Governm ent accounts. Tenders from others must be accom panied by paym ent of 5 percent of the face am ount of notes applied for. All checks must be draw n to the order of the F ederal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5. If the language of this ten d er is changed in any respect, which, in th e opinion of the Secretary of th e Treasury, is m aterial, the ten d er m ay be disregarded. SUBSCRIPTION NO. SCHEDULE FOR ISSUE OF REGISTERED 5% PERCENT TREASURY NOTES OF SERIES F-1974 T3 % a> c 2 & a> cb H o ^ D E L I V E R Y I NST RUCTI ONS £' a ? S UB SC R IB ER o w Ho D E LIV E R OVER TH E C O U N TE R TR AN S. A C C O U N TIN G D A T E < ^ 3 I S I G N A T U R E __ to 2 . C trC L , •i a u < o ^ p rf i 52. O oq & 2 v. a w n- pi o £ 3 O T H E R IN STR U C TIO N S: .ZIP 0 <=!£ 5 * S’ S 3 “ '■ - S T HH a ^ * 1 P S i ^ 00 *° CO 3 < lp “ 1^3 H- O CD in t e r e s t com p , date NO. R E G I S T R A T I O N a- ° c > r> jj ^ ^ 'C e - c* H INSTRUC TION S 30 NAM E(S) > 0- ID OR S.S. NO . o » ADDRESS «s• > — 5 1/J C i-i M . a a B' 3 0 1 g - ft r p <> s e o ^ ^ h a p 3- X « to 3 a O Cj FOR FRB USE b no -or ONLY 1.000 1. 000.000 99 £ C A S E NO . TR C A S E NO. 5.000 10.000 ID O R S.S. N O . 100.000 ADDRESS 1.000.000 ZIP 99 TOTAL 1 .000 NAM E(S) 5.000 I t a TR 1.000 NAM E(S) 4 MC - O AMOUNT SERIAL NOS. (LEAVE BLANK) 100.000 ZIP ° s 8 H T3 O to Co d e 10.000 C D M « rf 0 c? 5 lo a n 5.000 r -t* S'S, OF P IECES 2 g £ ri fe o ISSUE AGENT 1 2 ADDRESS S' w ® g3 c/3 a> 2 S 3 S I SH IP T O S U B S C R IB E R 3 a> o c« o a 3 m FOR FRB USE ON L Y W 10.000 ID O R S.S. N O . 100.000 ADDRESS ii ► o 1.000.000 T R . . C A S E NO . ZIP 8 N A M E (S ) 5.000 ° s3 o' 8-8 10.000 ID O R S.S. N O . 100.000 r+ S 2 T R . C A S E NO . ZIP 3§ o *» £ a^ o i-h O 2 vi a O-i1 * fD £■ M O 1.000.000 ADDRESS 1.000 NAM E(S) -1CX-QQQ ID O R S.S. N O . 100.000 Jf1 O ' o a > 1 .000.000 ADDRESS vH H * — a. ZIP 99 TOTAL T R . C A S E NO. UNITED STATES OF AMERICA 57s PERCENT TREASURY NOTES OF SERIES F-1974 D a te d and b ea rin g in terest fro m D e ce m b e r 2 8 , 1 9 7 2 D E P A R T M E N T CIRCULAR P u b lic D eb t S eries — N o. 1 2 -7 2 D u e D e ce m b e r 3 1 , 1 9 7 4 D EPA R T M E N T OF T H E TREASURY, Office of the Secretary, W ashington, December 15,1972. I. O FFER IN G O F N O TES 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 99.51 percent of their face value for $2,000,000,000, or thereabouts, of notes of the United States, designated 5% percent Treasury Notes of Series F-1974. Tenders will be received up to 1 :30 p.m., Eastern Standard time, Wednesday, December 20, 1972. The notes will be issued under competitive and noncompetitive bidding, as set forth in Section III hereof. II. D E S C R IP T IO N OF N O T E S 1. The notes will be dated December 28, 1972, and will bear interest from that date at the rate of 5% percent per annum, payable on a semiannual basis on June 30 and December 31, 1973, and June 30 and December 31, 1974. They will mature December 31, 1974, and will not be subject to call for 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 of the possessions of the United States, or by any local taxing authority. 3. The notes will be acceptable to secure deposits of 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 of coupon and registered notes, and for the trans fer of 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. T E N D E R S A N D ALLO TM ENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington, D. C. 20220, up to the closing hour, 1 :30 p.m., Eastern Standard time, Wednesday, December 20, 1972. Each tender must state the face amount of notes bid for, which must be $1,000 or a multiple thereof, and the price offered, ex cept that in the case of noncompetitive tenders the term “ noncompetitive” should be used in lieu of a price. In the case of 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 99.51 will not be accepted. Fractions may not be used. Noncompetitive tenders from any one bidder may not exceed $200,000. It is urged that tenders be made on the printed forms and forwarded in the special en velopes marked “ Tender for Treasury Notes” , which will be supplied by Federal Reserve Banks on ap plication therefor. 2. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may sub mit 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 banking institu tions for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retire ment and other public funds, international organiza tions 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. 3. Immediately after the closing hour tenders will be opened, following which public announcement will be made by the Department of the Treasury of the amount and price range of accepted bids. Those sub mitting tenders will be advised on the acceptance or rejection thereof. In considering the acceptance of 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 if necessary. The Secretary of 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, noncom petitive 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) of accepted com petitive tenders. 4. All 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 of any notes of this issue at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, Wednesday, December 20, 1972. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial inter est in any of the tenders they enter for the account of their customers, and that their customers have no beneficial interest in the banks’ tenders for their own account. IV . PAYM ENT 1. Settlement for accepted tenders in accordance with the bids must be made or completed on or before December 28, 1972, at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States, Washington, D. C. 20220, in cash or other funds immediately available by that date. Payment 1Average price may be at, or more or less than 100.00. will not be deemed to have been completed where reg istered notes are requested if the appropriate identi fying number as required on tax returns and other documents submitted to the Internal Revenue Service (an individual’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 of the amount of notes allotted shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States. Any qualified deposi tary will be permitted to make settlement by credit in its Treasury Tax and Loan Account for notes allotted to it for itself and its customers. y. G ENERA L P R O V IS IO N S 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive 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 of notes on full-paid tenders allotted, and they may issue interim receipts pending delivery of 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 promptly to the Federal Reserve Banks. GEORGE P. SHULTZ, Secretary of the Treasury.
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