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----------- — ------- FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States ["C ircular No. 7 0 7 3 *1 L D ecem ber 29, 1972 J Auction of $625 Million of 20-Year 6 3A Percent Treasury Bonds To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Following is the text of the details of the T re a su ry ’s bond auction announced in our C ircular No. 7071, dated December 27, 1972: The $625 million or thereabouts, of 20-year Trea sury bonds to be sold at auction under competitive and noncompetitive bidding will be 63,4 percent Treasury Bonds of 1993, dated January 10, 1973, and will mature February 15, 1993 (CUSIP No. 912810 BN7). The bonds will be sold at auction on Thursday, January 4, 1973, in the usual manner except that the lowest accepted bid price will be the price to be paid on all accepted tenders. The bonds will be issued in registered and bearer form in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Interest will be payable on August 15, 1973, and thereafter on February 15 and August 15. Tenders for the bonds will be received up to 1 :30 p.m., Eastern Standard time, Thursday, January 4, 1973, 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 Wednes day, January 3, 1973. 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 “ 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. Fractions may not be used. The notation “ TENDER FOR TREASURY BONDS” should be printed at the bottom of the envelope in which the tender is sub mitted. Tenders at the highest prices will be accepted to the extent required to attain the amount offered. Tenders at the lowest price accepted will be prorated if necessary. A ll accepted tenders will then be awarded at the price of the lowest accepted bid. Public announcement will be made of the results of the auction and the price to be paid for all accepted tenders. Those submitting tenders will be advised of the acceptance (and awarded price) 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, including the right to accept less than $625 million of tenders, and his action in any such respect shall be final. Subject to these reserva tions noncompetitive tenders for $250,000 or less will be accepted in full at the same price as accepted com petitive tenders. The 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. Others than commercial banks will not be perm itted to submit 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 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 not less than 5 percent of the face amount of bonds applied for. Payment for accepted tenders, at the lowest ac cepted price, must be completed on or before January 10, 1973, at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States in cash or other funds immediately available to the Treasury by that date. Where 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 of the amount of bonds allotted will be subject to forfeiture to the United States. The Treasury will construe as timely payment any check payable to the Federal Reserve Bank or the Treasurer of the United States that is received at such bank or office by Tuesday, January 9, 1973, 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, Wednesday, January 10, 1973. 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 bonds 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 bonds bid for under this offering at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, Thurs day, January 4, 1973. The term s of this offering are set fo rth in T reasury D epartm ent Circular No. 13-72, 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, Thursday, Jan u a ry 4, 1973, a t 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 B ranch postm arked no later than W ednesday, Ja n u a ry 3, 1973, will be considered timely. Please use the enclosed tender forms to submit tenders, and retu rn them in the enclosed envelope marked “ Tender for T reasury B onds.’’ Tenders not requiring a deposit may be submitted by telegraph, subject to w ritten confirmation; no tenders may be submitted by telephone. Settlement fo r accepted tenders may be made in cash or other immediately available funds. Settlement cannot be made by credit through the Treasury Tax and Loan Account. As indicated in our C ircular No. 7071, the procedure under which aw ards will be made in this auction differs from the procedure th a t has been used in auctions for shorter-term securities. The difference is th at all tenders accepted in this auction will be aw arded at the price of the lowest accepted tender. As in the usual auctions, the T reasury will accept bids startin g with the highest price bid and ranging downward to the bid th at provides a total of $625 million. (The Secretary of the T reasury reserves the right, however, to accept less than $625 million of tenders.) This proce dure is designed to provide an incentive to bid at prices sufficiently high to be sure of awards, while also assuring each bidder that, if he bids at a price within the range of accepted prices, he will be aw arded bonds a t the same price as every other bidder. A lfred H ayes, P r e s id e n t. FORM BA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Thursday, January 4,1973. T E N D E R FOR 6% PER C EN T TREASURY BO N D S O F 1993 Dated January 10,1973 Due February 15,1993 Dated at of N e w York, Fiscal Agent of the United States, , 1973 New York, N. Y. 10045 Pursuant to the provisions of Treasury Department Circular No. 13-72, Public Debt Series, dated December 29, 1972, the undersigned hereby offers to purchase United States of America 6% percent Treasury Bonds of 1993 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. F ederal R eserve B ank COMPETITIVE TENDER Do not fiU in both Competitive and Noncompetitive tenders on one form $ ...................................................... (maturity value), or any lesser amount that may be awarded. NONCOMPETITIVE TENDER $ ....................................................... (maturity value) (Not to exceed $250,000 for one bidder through all sources) at the same price as accepted competitive bids. P r ic e :......................per 100 (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 bonds as indicated below (if registered bonds are desired, please also complete schedule on reverse side): P ie c e s D e n o m in a tio n $ M atu rity v a lu e 1 ,0 0 0 5 ,0 0 0 1 0 ,0 0 0 □ 1. D e liv e r o ver th e cou n ter to th e u n d ersig n ed □ 2. Sh ip to th e u n d ersig n ed □ 3. H o ld in sa fe k e e p in g (fo r a c co u n t o f m em b er b an k o n ly )* □ 4. H old as co lla tera l for T reasury Tax and L oan Account*1 □ 5. S p ecia l in stru ctions: 1 0 0 ,0 0 0 P aym en t w ill b e m a d e as fo llo w s: □ B y ch arge to our a cco u n t on you r b ook s □ B y cash or c h eck in immediately available funds on d eliv ery 1 ,0 0 0 ,0 0 0 (No changes in delivery instructions will be accepted) T o ta ls 0 T h e u n d ersig n ed certifies that th e a llo tted b on d s w ill b e o w n ed so le ly b y th e u n d ersign ed . 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 bonds of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Thursday, January 4 ,19 73 . ( If a co m m ercia l b ank is su b scrib in g for its o w n a cco u n t or for a cco u n t o f cu stom ers, th e fo llo w in g certification s are m ad e a p art o f 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 bonds 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. (N am e of subscriber — please p rin t or ty p e ) Insert this tender in special en velope m arked “T en der for T reasury B onds” ( A ddress — please p rin t or ty p e ) (T el. N o.) ( Signature of subscriber or a u thorized sig n a tu re ) ( T itle of au th o rized s ig n e r) ( B anks su b m ittin g ten d ers for cu sto m er a cco u n t m u st in d ica te n am es, an d am oun ts d esired b y e a ch , on a sep arate list a tta ch ed h e r e to ) IN S T R U C T IO N S : 1. v a lu e ). N o ten d er for less th an $ 1 ,0 0 0 w ill b e co n sid er ed an d ea ch ten d er m u st b e for an e v e n m u ltip le o f $ 1 ,0 0 0 (m a tu rity 2. O thers th an co m m ercia l banks w ill n ot b e p erm itted to su b m it ten d ers ex cep t for their o w n accou n t. Banks su b m ittin g ten d ers for cu sto m er a cco u n t m ay c o n so lid a te c o m p e titiv e ten ders at the same price an d m ay co n so lid a te n o n co m p etitiv e ten d ers, p ro v id ed a list is a tta ch ed sh o w in g th e n a m e o f ea ch b id d e r, th e am ou n t b id for h is a cco u n t, an d m eth o d o f p aym en t. 3. I f th e p erson m ak in g th e ten d e r is a corp oration , th e ten d er sh o u ld b e sig n ed b y an officer o f th e corp oration a u th or iz e d to m a k e th e ten d er, an d th e sig n in g o f th e ten d er b y an officer o f th e corp oration w ill b e con stru ed as a rep resen tation b v h im th a t h e has b e e n so au th orized . I f th e ten d er is m a d e b y a p artnersh ip , it sh o u ld b e sig n e d b y a m em b er o f th e firm, w h o sh o u ld sig n in th e form “ ...............................^ ...................................................................... .. a cop artn ersh ip , b y ...................................... ......................... a m em b er o f th e firm .” 4 T en d ers w ill b e re c e iv e d w ith o u t d ep o sit from co m m ercia l and other banks for their o w n accou n t, F ed erally-in su red sa v in g s an d lo a n a ssociation s, S tates, p o litic a l su b d ivision s or in stru m en talities th e reo f, p u b lic p en sio n an d retirem en t an d other n u b lic fu n d s, in tern ation al organ ization s in w h ic h th e U n ite d S ta tes h o ld s m em b ersh ip , fo reig n cen tral banks an d fo reig n S ta tes d ea lers w h o m ak e prim ary m ark ets in G o v ern m en t se cu rities an d rep ort d a ily to th e F ed era l R eserv e B ank o f N e w York th eir n o sitio n s w ith resp ect to G overn m en t secu rities an d b orrow in gs th e reo n , and G overn m en t accou n ts. T en d ers from others m u st b e a cco m p a n ied b y p a y m e n t o f 5 p er c e n t o f th e fa c e a m o u n t o f b o n d s a p p lied for. A ll ch eck s m u st b e draw n to the order o f th e F e d e r a l R eserv e B an k o f N e w York; ch eck s en d orsed to th is B ank w ill n o t b e a ccep ted . 5. I f th e la n g u a g e o f th is ten d e r is c h a n g e d in a n y resp ect, w h ic h , in th e o p in io n o f th e S ecretary o f th e Treasury, is m aterial, th e ten d e r m a y b e d isregard ed . SCHEDULE FOR ISSUE OF REGISTERED PERCENT TREASURY BONDS OF 1993 SUBSCRIPTION NO. D E L I V E R Y I N STRU CTI ONS F O R F R B USE O N L Y SUBSCRIBER I i d e l iv e r o v er th e c o u n ter SIG NATURE_ I I SHIP TO SUBSCRIBER TRANS. ACCOUNTING DATE C2) OTHER INSTRUCTIONS: ADDRESS ISSUE AGENT 12 LOAN CODE ZIP REGISTRATION I N T E R E S T COMP. NO. OF INSTRUCTIONS PIECES DENOM. NAME(S) AMOUNT SERIAL NOS. (LEAVE BLANK) FOR FRB DATE » 110 — 01 U SE O N L Y 1.000 5.000 32 34 ID OR S.S. NO. ADDRESS ZIP NAME(S) ID OR S.S. NO. ADDRESS ZIP NAME(S) 100.000 42 1 000.000 99 total 30 1 .000 32 5.000 34 10.000 38 100,000 42 1.000.000 99 TOTAL 30 1 .000 32 5.000 34 10.000 ID OR S.S. NO. ADDRESS ZIP NAME(S) ID OR S.S. NO. ADDRESS ZIP NAME(S) . 38 3fl 100.000 4:" 1 000.000 99 total 30 1 ,000 32 5.000 34 10.000 3ft 100.000 42 1.000,000 99 TOTAL 30 TR CASE NO. TR CASE NO. TR. ,C ASE NO. TR. CASE NO. 1.000 .. . i.uGUiX ID OR S.S. NO. 34 »’ 100.000 ADDRESS 42 .000,000 99 TOTAL ZIP TR. CASE NO. UNITED STATES OF AMERICA 6% PERCENT TREASURY BONDS OF 1993 D a te d an d b e a r in g in terest fr o m J an u ary 10 , 1 9 7 3 D u e F eb ru ary 1 5 , 1 9 9 3 D EPA R T M E N T OF T H E TREASURY, Office of the Secretary, DEPARTMENT CIRCULAR Public Debt Series — No. 13-72 I. O FF E R IN G O F B O N D S 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites tenders for $625,000,000, or there abouts, of bonds of the United States, designated 6% percent Treasury Bonds of 1993. Tenders on a competitive or noncompetitive basis will be received up to 1:30 p.m., Eastern Standard time, Thursday, January 4, 1973. The price for the bonds will be established as set forth in Section I I I hereof. II . D E S C R IP T IO N O F B O N D S 1. The bonds will be dated January 10, 1973, and will bear interest from that date at the rate of 6% percent per annum, payable on a semiannual basis on August 15, 1973, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1993, and will not be subject to call for redemp tion prior to maturity. 2. The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds 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 bonds will be acceptable to secure deposits of public moneys. They will not be acceptable in payment of taxes. 4. Bearer bonds with interest coupons attached, and bonds 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 bonds of different denom inations and of coupon and registered bonds, and for the transfer of registered bonds, under rules and regulations prescribed by the Secretary of the Trea sury. Washington, December 29, 1972 5. The bonds will be subject to the general regula tions of the Department of the Treasury, now or hereafter prescribed, governing United States bonds. III. T E N D E R S AND 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, Thursday, January 4, 1973. Each tender must state the face amount of bonds 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 “ 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 decimals, e.g., 100.00. Fractions may not be used. I t is urged that tenders be made on the printed forms and forwarded in the special envelopes marked “ Tender for Trea sury Bonds” , 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 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. Ten ders will be received without deposit from banking institutions for 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 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 bonds applied for. 3. In considering the acceptance of tenders, those at the highest prices will be accepted in full to the extent required to attain the amount offered; pro vided, however, that tenders at the lowest of such accepted prices will be prorated if necessary. All tenders so accepted will be allotted at the price of the lowest accepted tender. Those submitting tenders will be advised of the acceptance, and awarded price, or the rejection of their bids. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, includ ing the right to accept less than $625 million of ten ders, and his action in any such respect shall be final. Subject to these reservations noncompetitive tenders for $250,000 or less will be accepted in full at the same price as accepted competitive tenders. The price may be 100.00, or more or less than 100.00. the Treasurer of the United States, Washington, D. C. 20220, in cash or other funds immediately available by that date. Payment will not be deemed to have been completed where registered bonds are requested if the appropriate identifying number as required on tax returns and other documents submitted to the Internal Revenue Service (an individual’s social security number or an employer identification num ber) is not furnished. In every case where full pay ment is not completed, the payment with the tender up to 5 percent of the amount of bonds allotted shall, upon declaration made by the Secretary of the Treas ury in his discretion, be forfeited to the United States. 4. All 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 of any bonds of this issue at a specific rate or price, until after 1 :30 p.m., Eastern Standard time, Thursday, January 4, 1973. 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 bonds on full-paid tenders allotted, and they may issue interim receipts pending delivery of the definitive bonds. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial interest 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 . PA Y M EN T 1. Paym ent for accepted tenders must be made or completed on or before January 10, .1973, at the Federal Reserve Bank or Branch or at the office of V. G ENERA L P R O V IS IO N S 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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