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FED ER A L RESER VE BANK O F NEW YORK Fiscal Agent o f the United States Circular No. 7330 1 January 30, 1974 J T R E A S U R Y A N N O U N C E S F E B R U A R Y R E F IN A N C IN G To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was m ade public today by the Treasury Departm ent: The Treasury announced today that it will provide funus for retiring the $4.5 billion o f publicly held notes and bonds maturing on February 15 by auctioning to the pu blic up to $2.25 billion o f 3 -1 /4 year notes, up to $1.5 billion o f 7-year notes and up to $300 m illion o f 1 9 -1/2 year bonds. A dditional am ounts o f the notes and bonds will be allotted to G overnm ent accounts and the Federal Reserve Banks in exchange for their holdings o f the maturing securities, which total $0.9 billion. T he securities to be auctioned will be: Treasury Notes o f Series C -1977 dated February 15, 1974, due May 15, 1977 (C U SIP N O . 912827 D Q 2), with interest payable on May 15 and N ovem ber 15, 1974, and thereafter on M ay 15 and N ovem ber 15, Treasury Notes o f Series A-1981 dated February 15, 1974, due February 15, 1981 (C U SIP N O . 912827 D R 0 ), with interest payable on February 15 and August 15, and an additional am ount o f the 7 -1 /2 % Treasury Bonds o f 1988-93, dated August 15, 1973, due A ugust 15, 1993, callable at the option o f the United States on any interest paym ent date on and after A ugust 15, 1988 (C U SIP NO. 912810 B Q 0 ) , with interest payable on February 15 and August 15. T he cou p on rates for the two issues o f notes will be announced on M onday, February 4. T he notes and bon d s will be issued in registered and bearer form in denom inations o f $1,000, $5,000, $10,000, $100,000 and $1,000,000. Tenders for the 7-year notes will be received up to 1:30 p .m ., Eastern Daylight Saving tim e, Tuesday, February 5, 1974, tenders for the 3 -1 /4 year notes will be received up to 2:00 p.m ., E D S T , W ednesday, February 6, 1974, and tenders for the 19-1/2 year bonds will be received up to 1:30 p .m ., E D S T , Thursday, February 7, 1974, at any Federal Reserve Bank or Branch, and at the Bureau o f Governm ent Financial O perations, Banking and Cash M anagem ent, W ashington, D. C. 20222; provided, however, that noncom petitive tenders will be considered timely received if they are mailed to any such agency under a postm ark no later than February 4 for the 7-year notes, February 5 for the 3 -1 /4 year notes and February 6 for the bonds. Each tender must be in the am ount o f $1,000 or a m ultiple thereof, and must state the price offered, if it is a com petitive tender, or the term “ noncom petitive” , if it is a noncom petitive tender. The price on com petitive tenders for the notes must be expressed on the basis o f 100, with two decim als, e.g., 100.00. Tenders at a price less than 99.26 for the 3 -1 /4 year notes and 98.26 for the 7-year notes will not be accepted. T enders at the highest prices will be accepted to the extent required to attain the am ount offered. Successful com petitive bidders for the notes will be required to pay for the notes at the price they bid. Noncom petitive bidders will be required to pay the average price o f all accepted com petitive tenders for the issue. T he price on com petitive tenders for the bonds must be expressed on the basis o f 100, with two decim als in a m ultiple o f .05, e.g., 100.10, 100.05, 100.00. 99.95, etc. Tenders for the bon ds at a price less than 95.30 will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the am ount offered. All accepted tenders for the bonds will be awarded at the price o f the lowest accepted bid. Fractions may not be used in tenders. The notation “ T E N D E R F O R T R E A S U R Y N O T E S (SE RIE S C-1977 or A -1 9 8 D ” or “ T E N D E R F O R T R E A S U R Y B O N D S ” should be printed at the bottom o f the envelopes in which tenders are submitted. T he Secretary o f 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 $500,000 or less for each issue o f notes will be accepted in full at the average price o f accepted com petitive tenders and noncom petitive tenders for $250,000 or less fo r the bon ds will be accepted in full at the same price as the lowest accepted com petitive tender. T he prices may be 100.00, or more or less than 100.00. C om m ercial banks, which for this purpose are defined as banks accepting dem and deposits, may subm it tenders for account o f custom ers provided the names o f the custom ers are set forth in such tenders. Others than com m ercial banks will not be perm itted to subm it tenders except for their own account. Tenders will be received without deposit from com m ercial and other banks for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, pu blic pension and retirement and other p u b lic funds, international organizations in which the United States holds m em bership, foreign central banks and foreign States, dealers w ho m ake primary markets in Governm ent securities and report daily to the Federal Reserve Bank o f New Y ork their positions with respect to Governm ent securities and borrowings thereon, Federal Reserve Banks, and G overnm ent accounts. Tenders from others must be accom panied by payment o f 5 percent o f the face am ount o f securities applied for. Payment for accepted tenders for the notes must be com pleted on or before Friday, February 15, 1974. Payment for accepted tenders for the bon ds, including interest from February 15 to February 28, 1974 ($2.69337 per $1,000) must be com pleted on or before Thursday, February 28, 1974. Payments must be m ade at the Federal Reserve Bank or Branch or at the Bureau o f G overnm ent Financial Operations in cash, 7 -3 /4 % Treasury Notes o f Series C -1974 or 4 -1 /8 % Treasury Bonds o f 1974, which will be accepted at par, or other funds im mediately available to the Treasury by that date. W here full payment is not com pleted in funds available by the payment date, the allotm ent will be canceled and the deposit with the tender up to 5 percent o f the am ount o f securities allotted will be subject to forfeiture to the United States. The Treasury will construe as timely paym ent any check drawn to the order o f the Federal Reserve Bank or the United States Treasury that is received at such bank or office by W ednesday, February 13, 1974, for the notes and M onday, February 25, 1974, for the bonds, provided the check is drawn on a bank in the Federal Reserve District o f the bank or o ffice to which the tender is subm itted. Other checks will constitute payment only if they are fully and finally collected by the payment date. Checks not so collected will subject the investor’s deposit to forfeiture as set forth in the preceding paragraph. A ch eck payable other than at a Federal Reserve Bank received on the payment date will not constitute im m ediately available funds on that date. Com m ercial banks are prohibited from m aking unsecured loans, or loans collateralized in whole or in part by the securities bid for, to cover the deposits required to be paid when tenders are entered, and they will be required to m ake the usual certification to that effect. Other lenders are requested to refrain from m aking such loans. All bidders are required to agree not to purchase or to sell, or to m ake any agreements with respect to the purchase or sale or other disposition o f the securities bid for under this offering at a specific rate or price, until after the closing hour for the receipt o f tenders for each particular issue. As indicated in the above statement, the coupon rates for the two issues o f notes will be announced on M onday, February 4 . You may call this Bank (Telephone No. 2 1 2 -7 9 1 -6 1 3 2 or 2 1 2 -7 9 1 -5 4 6 5 ) on the after noon o f that date to ascertain those rates. If there is any doubt that tenders sent by mail will reach this Bank or its Branch as required above, bidders should use other means o f transmitting their tenders. The official offering circulars and tender forms will be mailed to you as soon as possible. ALFRED H AYES, P resid en t.
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