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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the U nited States rCircular No. 7 7 2 2 - 1 October 2, 1975 J L AUCTION OF $2.5 BILLION OF TREASURY NOTES Series H-1978 To all Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statem ent was issued O ctober 1 by the Treasury D epartm ent: On O ctober 7 the Treasury will auction to the public under com petitive and noncom petitive bidding $2.5 billion of 38-month notes. This is the am ount that the Treasury projected early last m onth th at it would raise through the issuance of an interm ediate note. At th at time th e Treasury had also indicated th at it expected to raise an additional $3.0 billion through the sale of a note to m ature on O ctober 31, 1977. Details of that offering will be announced later. In addition to the $2.5 billion offered to the public, additional notes m ay be issued at the average price of accepted tenders to Governm ent accounts and to Federal Reserve Banks for themselves and as agents of foreign and international m onetary authorities. The coupon rate for the notes will be deter m ined after tenders are allotted. The notes now being offered will be Treasury Notes of Series H-1978 dated O ctober 22, 1975, due D ecem ber 31, 1978 (C U SIP No. 912827 EZ1) with interest payable on a semiannual basis on June 30 and D ecem ber 31, 1976, and thereafter on June 30 and D ecem ber 31. They will be issued in registered and bearer form in denom inations of $5,000, $10,000, $100,000 and $1,000,000, and they will be available for issue in book-entry form. Paym ent for the notes m ust be m ade on O ctober 22, 1975. Paym ent may not be m ade through tax and loan accounts. Notes in bearer form will be delivered on October 22, 1975. Tenders will be received up to 1:30 p.m., Eastern D aylight Saving time, Tuesday, O ctober 7, 1975, at any Federal Reserve Bank or Branch and at the Bureau of the Public Debt, W ashington, D. C. 20226; provided, however, th at noncom petitive tenders will be considered timely received if they are m ailed to any such agency under a postm ark no later than M onday, O ctober 6 . E ach tender m ust be in the am ount of $5 , 0 0 0 or a m ultiple thereof, and all tenders m ust state th e yield desired, if a competitive tender, or the term “noncom petitive”, if a noncom petitive tender. Fractions may not be used in tenders. The notation “T E N D E R FOR TREASURY NOTES” should be printed at th e bottom of envelopes in which tenders are subm itted. Com petitive tenders m ust be expressed in terms of annual yield in two decim al places, e.g., 7.11, and not in terms of a price. Tenders at the lowest yields, and noncom petitive tenders, will be accepted to the extent required to attain the am ount offered. After a determ ination is m ade as to w hich tenders are accepted, a coupon yield will be determ ined to the nearest Vs of 1 percent necessary to m ake the average accepted 5 price 100.000 or less. T hat will be the rate of interest that will be paid on all of the notes. Based on such interest rate, the price on each com petitive tender allotted will be determ ined and each successful com petitive bidder will pay the price corresponding to the yield he bid. Price calculations will b e carried to three decim al places on the basis of price per hundred, e.g., 99.923, and the determ inations of the Secretary of the Treasury shall be final. Tenders at a yield th a t will produce a price less than 99.251 will not be accepted. T he 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 peti tive tenders for $500,000 or less will be accepted in full at the average price of accepted competitive tenders, which price will be 1 0 0 . 0 0 0 or less. Com mercial banks, which for this purpose are defined as banks accepting dem and deposits, and dealers who make prim ary m arkets in Governm 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, may subm it tenders for the account of customers, provided the names of the customers are set forth in such tenders. Others will not be perm itted to subm it tenders except for their own account. T enders 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 which the United States holds m em bership, foreign central banks and foreign States, dealers who m ake prim ary markets in G overnm ent securities and report daily to the Federal Reserve Bank of New York their positions with respect to Governm ent securities and borrowings thereon, Federal Reserve Banks, and Governm ent accounts. Tenders from others m ust be accom panied by paym ent of 5 percent of the face am ount of notes applied for. However, bidders who subm it checks in paym ent on tenders subm itted directly to a Federal Reserve Bank or the Treasury m ay find it necessary to subm it full paym ent for the notes w ith their tenders in order to m eet the tim e limits pertaining to checks as hereinafter set forth. Allotment notices will not be sent to bidders who subm it noncom petitive tenders. Paym ent for accepted tenders m ust be com pleted on or before W ednesday, O ctober 22, 1975, at the F ederal Reserve Bank or Branch or at the Bureau of the Public D ebt, in cash, in other funds im m ediately available to the Treasury by October 22, or by check draw n to the order of the Federal Reserve Bank to which the tender is subm itted, or the U nited States Treasury if the tender is subm itted to it, which m ust be received at such Bank or at the Treasury no later than (1 ) Friday, October 17, 1975, if the check is draw n on a bank in the Federal Reserve D istrict of the Bank to which the check is subm itted, or the Fifth F ederal Reserve D istrict in the case of the Treasury, or (2 ) W ednesday, October 15, 1975, if the check is draw n on a bank in another district. Checks received after the dates set forth in the preceding sentence will not be accepted unless they are payable at a Federal Reserve Bank. W here full paym ent is not com pleted on time, the allotm ent will be canceled and the deposit w ith the tender up to 5 percent of the am ount of notes allotted will be subject to forfeiture to the U nited States. T h e term s of th e offering a re set fo rth in T re a su ry D e p a rtm e n t C irc u la r N o. 30-75, P u b lic D e b t S eries, d a te d O c to b e r 2, 1975, a co p y o f w h ich is p rin te d on th e follow ing pages. T h is B an k w ill re ceiv e te n d e rs u p to 1:30 p.m ., E a ste rn D a y lig h t S aving tim e, T u esd ay , O c to b e r 7, 1975, a t th e S ecu rities D e p a rtm e n t of its H e a d Office a n d a t its B uffalo B ranch; p ro v id ed , ho w ev er, th a t noncompetitive te n d e rs w ill b e c o n sid e re d tim ely re ceiv ed if th e y are m ailed to this B ank or its B ran ch u n d e r a p o stm a rk no later than October 6, 1975. P lease use th e enclosed te n d e r form to su b m it a te n d e r, a n d re tu r n it in th e en c lo se d e n v e lo p e m a rk e d “T e n d e r for T re a su ry N otes or B onds.” T e n d e rs n o t re q u irin g a d e p o sit m ay b e s u b m itte d b y te le g ra p h , su b je c t to w ritte n confirm ation; no te n d e rs m ay b e s u b m itte d b y te lep h o n e . S e ttle m e n t for a c c e p te d te n d e rs m ay b e m a d e in cash or o th e r im m ed iately av a ila b le fu n d s, u n d e r th e co n d itio n s a n d p ro c e d u re s set fo rth in S ection IV of T re a su ry D e p a rtm e n t C irc u la r No. 30-75; settlement cannot be made by credit in Treasury Tax and Loan Accounts. If p a y m e n t is m a d e b y check, th e ch eck m u st b e a certified p erso n al check or an official b a n k check, p a y a b le o n its fa ce to th e F e d e ra l R eserv e B ank of N e w York; checks endorsed to this Bank will not be accepted. T h e n o tes w ill b e a u c tio n e d on a y ield basis, as set fo rth in S ection II I of th e official offering circu lar. T e n d e rs a t a y ield th a t w ill p ro d u c e a p ric e less th a n 99.251 will not be accepted. N o n c o m p e titiv e b id d ers w ill b e re q u ire d to p a y th e a v e ra g e p ric e of a c c e p te d co m p etitiv e ten d ers. T e le p h o n e in q u iries re g a rd in g th is offering m ay b e m a d e b y calling T e le p h o n e No. 212-791-5823, 212-791-6616, o r 212-791-5465. Paul A. V o lc k e r , President. 2 FORM NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, October 7, 1975. T E N D E R FO R TREASURY NO TES O F SERIES H-1978 Dated October 22, 1975 Due December 31,1978 D ated at F e d e r a l R eserv e B a n k o f N e w Y ork, Fiscal Agent of the U nited States, New York, N. Y . 10045 19__ Pursuant to the provisions of Treasury D epartm ent C ircular No. 30-75, Public D ebt Series, dated O ctober 2, 1975, the undersigned hereby offers to purchase U nited States of America Treasury Notes of Series H-1978 in the am ount indicated below, and agrees to make paym ent therefor at your Bank on or before the issue date at the price aw arded on this tender. COMPETITIVE TENDER Do not fill in both Competitive and Noncompetitive tenders on one form $ ......................................................... (m aturity value) or any lesser am ount th at m ay b e aw arded. NONCOMPETITIVE TENDER $ ......................................................... ( m aturity v alu e) (Not to exceed $500,000 for one bidder through all sources) at the average price of accepted com petitive bids. Y ie ld :........... (Yield must be expressed with not more than two decimal places, for example, 7.11) Subject to allotm ent please issue, deliver, and accept paym ent for the securities as indicated below and on the reverse side (if registered securities are desired, please also com plete schedule on reverse side): Pieces Denomination $ Maturity value 5,000 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for mem ber bank only) in — 100,000 1,000,000 Totals □ 4. □ Investment Account □ General Account n Trust Account Hold as collateral for Treasury Tax and Loan Account* Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds □ ° By surrender of maturing secu rities as indicated in official circular 5> Sped&1 instructions: (No changes in delivery instructions will be accepted) • The undersigned certifies that the allotted securities will be owned solely by the undersigned. ( If a commercial bank or dealer 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 i f y th at we have received tenders from our customers in the am ounts set forth opposite the custom ers’ names on the list w hich is m ade a p art of this tender, and th at we have either received and are holding for the Treasury or we guarantee paym ent to the Treasury of deposits stipulated in the official offering circular. W e F u r t h e r C e r t i f y th at tenders received by us, if any, from other com m ercial banks for their own account and for th e account of their customers have been entered w ith us under the same conditions, agree ments, an d certifications as set forth in this form. (Name of subscriber — please print or type) Insert this tender in special envelope m arked “Tender for Treasury N otes or Bonds ” ( Address — incl. City and State) (Tel. N o.) (Signature of subscriber or authorized signature) (Titie of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) ( Name of customer ) (Name of customer) IN STR U C TIO N S: 1. value). No tender for less than $5,000 will be considered; and each tender must be for a multiple of $5,000 (maturity 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the same yield and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 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 commercial and other banks 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 the securities 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. ( over) SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES H-1978 SUBSCRIPTION NO. SUBSCRIBER. SIGNATURE_ D E LIVERY I N S T R U C T I O N S P A Y M E N T INSTRUCTIONS □ DELIVER OVER THE COUNTER □ BY CHARGE TO OUR RESERVE ACCOUNT □ SHIP TO SUBSCIBER □ □ OTHER INSTRUCTIONS: BY CASH OR CHECK IN IMMEDIATELY AVAILABLE FUNDS ADDRESS___ FOR FRB USE ONLY TRANS. ACCOUNTING DATE ISSUE AGENT 12 LOAN CODE October 22, 1975 ZIP INTEREST CO M P. DATE NO. OF PIECES REGISTRATION INSTRUCTIONS DENOM. AMOUNT SERIAL NOS. (LEAVE BLANK) 110-01 FOR FRB USE ONLY NAME(S) 32 ID OR S.S. NO. ADDRESS ZIP 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL TR. CASE NO. NAME(S) 32 ID OR S.S. NO. ADDRESS ZIP 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL TR CASE NO. NAME(S) ID OR S.S. NO. ADDRESS ZIP 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL TR. CASE NO. NAME(S) 32 34 10,000 38 100,000 42 1,000,000 ID OR S.S. NO. ADDRESS ZIP 5,000 99 TOTAL TR. CASE NO. NAME(S) 32 34 ID OR S.S. NO. ADDRESS Z,P 5,000 10,000 38 100,000 42 1,000,000 99 TOTAL TR. CASE NO. UNITED STATES OF AMERICA TREASURY NOTES OF SERIES H-1978 D a te d an d b ea rin g in terest from O ctob er 2 2 , 19 7 5 D u e D e c e m b e r 3 1 , 19 7 8 D EPA R TM EN T CIRC U LA R DEPARTMENT OF THE TREASURY, Office of the Secretary, Washington, October 2,1975. Public Debt Series — No. 30-75 I. IN V ITA TIO N FO R TEN D ERS 5. The notes will be subject to the general regula tions of the D epartm ent of the Treasury, now or hereafter prescribed, governing U nited States notes. I. T he Secretary of the Treasury, pursuant to the authority of the Second L iberty Bond Act, as am ended, invites tenders on a yield basis for $2,500,000,000, or thereabouts, of notes of the U nited States, designated T reasury Notes of Series H-1978. The interest rate for the notes will be determ ined as set forth in Section III, paragraph 3, hereof. A dditional am ounts of these notes may be issued at the average price of accepted tenders to G overnm ent accounts and to Federal Reserve Banks for themselves and as agents of foreign and international m onetary authorities. Tenders will be received up to 1:30 p.m., E astern D aylight Saving time, Tuesday, O ctober 7, 1975, under competitive and noncom petitive bidding, as set forth in Section III hereof. n. III. 1 . Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, W ashington, D. C. 20226, up to the closing hour, 1:30 p.m., Eastern Daylight Saving time, Tuesday, October 7, 1975. Each tender must state the face am ount of notes bid for, which must be $5 ,0 0 0 or a m ultiple thereof, and the yield desired, except that in the case of noncom petitive tenders the term “non com petitive” should be used in lieu of a yield. In the case of com petitive tenders, the yield must be expressed in terms of an annual yield, with two decimals, e.g., 7.11. Fractions may not be used. Non com petitive tenders from any one bidder may not exceed $500,000. D ESC R IPTIO N O F NOTES 1. The notes will be dated October 22, 1975, and will bear interest from th at date, payable on a semi annual basis on June 30 and D ecem ber 31, 1976, and thereafter on June 30 and D ecem ber 31 in each year until the principal am ount becomes payable. They will m ature D ecem ber 31, 1978, and will not be subject to call for redem ption prior to m aturity. 2. Commercial banks, which for this purpose are defined as banks accepting dem and deposits, and deal ers who make prim ary markets in Governm ent secu rities and report daily to the Federal Reserve Bank of New York their positions w ith respect to Government securities and borrowings thereon, may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from banking institutions for their own account, Federally-insured savings and loan associa tions, States, political subdivisions or instrum entalities thereof, public pension and retirem ent 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 Governm ent securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, and Governm ent accounts. Tenders from others must be accompanied by paym ent of 5 percent of the face am ount of notes applied for. 2. The income derived from the notes is subject to all taxes im posed under the Internal Revenue Code of 1954. The notes are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, b u t 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 U nited States, or by any local taxing authority. 3. T he notes will be acceptable to secure deposits of public moneys. They will not be acceptable in paym ent of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denom inations of $5,000, $10,000, $100,000 and $1,000,000. Book-entry notes will be available to eligible bidders in m ultiples of those amounts. In ter changes of notes of different denom inations and of coupon and registered notes, and the transfer of regis tered notes will be perm itted. TEND ERS AND ALLOTM ENTS 3. Im m ediately after the closing hour tenders will be opened, following which public announcem ent will be m ade by the D epartm ent of the Treasury of the 3 Bank or at the Treasury no later than: ( 1 ) Friday, October 17, 1975, if the check is draw n on a bank in the Federal Beserve D istrict of the Bank to which the check isi subm itted, or the Fifth Federal Beserve District in the case of the Treasury, or (2) W ednesday, October 15, 1975, if the check is draw n on a bank in another district. Checks received after the dates set forth in the preceding sentence will not be accepted unless they are payable at a Federal Beserve Bank. Paym ent will not be deem ed to have been completed w here registered notes are requested if the appropriate identifying num ber as required on tax returns and other documents subm itted to the Internal Bevenue Service (an individual’s social security num ber or an employer identification num ber) is not furnished. In every case where full paym ent is not completed, the paym ent w ith the tender up to 5 percent of the am ount of notes allotted shall, upon declaration m ade by the Secretary of the Treasury in his discretion, be forfeited to the United States. am ount and yield range of accepted bids. Those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. In considering the acceptance of tenders, those w ith the lowest yields will b e accepted to the extent required to attain the am ount offered. Tenders at the highest accepted yield will be prorated if necessary. After the determ ination is m ade as to which tenders are accepted, an interest rate will be established at the nearest Vs of one percent necessary to make the average accepted price 100.000 or less. T hat will be the rate of interest that will be paid on all of the notes. Based on such interest rate, the price on each com petitive tender allotted will be determ ined and each successful competitive b id d er will be required to pay the price corresponding to the yield bid. Price calculations will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the determ inations of the Secretary of the Treasury shall be final. The Secretary of the T reasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, includ ing the right to accept tenders for more or less than the $2,500,000,000 of notes offered to the public, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $500,000 or less w ithout stated yield from any one b id d er will be accepted in full at the average price ( in three decim als) of accepted com petitive tenders. V. IV. PAYMENT 1. Settlement for accepted tenders in accordance w ith the bids must be m ade or com pleted on or before O ctober 22, 1975, at the Federal Beserve Bank or Branch or at the Bureau of the Public D ebt, W ashing ton, D. C. 20226. Paym ent m ust be in cash, in other funds im m ediately available to the Treasury by O ctober 22, 1975, or by check draw n to the order of the Federal Beserve Bank to which the tender is subm itted, or the U nited States Treasury if the tender is subm itted to it, which m ust be received at such 4 GENERAL PROVISIONS 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 paym ent 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 tim e to time, prescribe supplem ental or am endatory rules and regulations governing the offer ing, which will be com m unicated prom ptly to the Federal Reserve Banks. STEPHEN S. GARDNER, Acting Secretary of the Treasury.
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