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FEDER AL RESERVE BANK O F NEW YORK Fiscal A gent of the U nited States f" Circular No. 7 6 0 6 L. April 10, 1975 AUCTION OF $1.5 BILLION OF TREASURY NOTES Series H-1977 T o A ll B a n kin g In stitu tio n s, a n d O thers C oncerned, in th e S eco n d F ederal R eserve D istrict: The following statement was issued April 9 by the Treasury Department: The Treasury will auction to the public under com petitive and noncom petitive bidding up to $1.5 billion of 2-year notes. The coupon rate for the notes will be determ ined after tenders are allotted. Additional am ounts of the 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 notes will be Treasury Notes of Series H-1977, dated April 30, 1975, due April 30, 1977 (C U SIP No. 912827 EK 4) w ith interest payable sem iannually on O ctober 31, 1975, and thereafter on April 30 and October 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. Delivery of bearer notes will be m ade on April 30, 1975. Paym ent for the notes m ay not be m ade through tax and loan accounts. Tenders will be received up to 1:30 p.m., Eastern D aylight Saving time, Tuesday, April 15, at any Federal Reserve Bank or Branch and at the Bureau of the Public D ebt, W ashington, D. C. 20226; provided, however, th at noncom petitive tenders will be considered tim ely received if they are m ailed to any such agency under a postm ark no later than M onday, April 14. Each tender m ust be in the am ount of $5,000 or a m ultiple thereof, and all tenders m ust state the yield desired, if a com petitive tender, or the term “noncom petitive”, if a noncom petitive tender. Fractions m ay not be used in tenders. The notation “TEN D ER FO R TREASURY NOTES” should be printed at the bottom of envelopes in which tenders are subm itted. Com petitive tenders m ust be expressed in term s of annual yield in two decim al places, e.g., 6.45, and not in term s 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 which tenders are accepted, a coupon yield will be determ ined to the nearest Vs of 1 percent necessary to make the average accepted price 100.00 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 b id d er will pay the price corresponding to the yield he bid. Price calculations will be carried to three decim al places on the basis of price p er hundred, e.g., 99.923, and the determ inations of the Secretary of the Treasury shall be final. Tenders at a yield th at will produce a price less than 99.501 will not be accepted. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 will be accepted in full at the average price of accepted com petitive tenders, w hich price will be 100.00 or less. Com mercial banks, w hich for this purpose are defined as banks accepting dem and deposits, and 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 G overnm ent securities and borrowings thereon, may subm it tenders for th e account of customers, provided the names of th e customers are set forth in such tenders. Others will not b e perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from commercial and other banks for their own account, F ederally-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 m em bership, foreign central banks and foreign States, dealers who make prim ary markets in Govern m ent securities and report daily to the Federal Reserve Bank of New York their positions w ith respect to G overnm 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 securities applied for. However, bidders who subm it checks in paym ent on tenders subm itted directly to a Federal Reserve Bank or the Treasury may find it necessary to subm it full paym ent for the securities w ith their tenders in order to m eet the tim e limits pertaining to checks as hereinafter set forth. Allotment notices will not b e sent to bidders who subm it noncom petitive tenders. Paym ent for accepted tenders m ust be com pleted on or before W ednesday, April 30, 1975, at the Federal Reserve Bank or Branch or at the B ureau of the Public D ebt in cash, in other funds im m ediately available to the Treasury by April 30, 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, April 25, 1975, if the check is draw n on a bank in the F ederal Reserve D istrict of the Bank to w hich the check is subm itted, or the Fifth Federal Reserve D istrict in case of the Treasury, or (2 ) W ednesday, April 23, 1975, if the check is draw n on a bank in another district. Checks received after th e 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 securities allotted will be subject to forfeiture to the U nited States. The terms of the offering are set forth in Treasury Department Circular No. 12-75, Public Debt Series, dated April 10, 1975, a copy of which is printed on the following pages. This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, April 15, 1975, at the Securities Department of its Head Office and at its Buffalo Branch; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than April 14, 1975. Please use the enclosed tender form to submit a tender, and return it in the enclosed envelope marked “Tender for Treasury Notes.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Settlement for accepted tenders may be made in cash or other immediately available funds, under the conditions and procedures set forth in Section IV of Treasury Department Circular No. 12-75; settlement cannot be made by credit in Treasury Tax and Loan Accounts. If pay ment is made by check, the check must be a certified personal check or an official bank check, payable on its face to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. The notes will be auctioned on a yield basis, rather than the conventional price basis, as set forth in Section III of the official offering circular. Tenders at a yield that will produce a price less than 99.501 toill not be accepted. Noncompetitive bidders will be required to pay the average price of accepted competitive tenders. Telephone inquiries regarding this offering may be made by calling Telephone No. 212-791-5823, 212-791-6616, or 212-791-5465. A lfred H ayes, President. 2 UNITED STATES OF AMERICA TREASURY NOTES OF SERIES H-1977 D a te d and b ea rin g in terest from A pril 3 0 , 1 9 7 5 D u e A pril 3 0 , 1 9 7 7 DEPARTMENT OF THE TREASURY, Office of the Secretary, Washington, April 10,1975. D E P A R T M E N T C IR C U L A R Public D ebt Series — 12-75 I. INVITATION FOR TENDERS issued in denominations 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 denominations and of coupon and registered notes, and the transfer of regis tered notes will be perm itted. 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as am ended, invites tenders on a yield basis for $1,500,000,000, or thereabouts, of notes of the U nited States, designated Treasury Notes of Series H-1977. The interest rate for the notes will be determ ined as set forth in Section III, paragraph 3, hereof. Additional amounts of these rotes may be issued at the average price of accepted tenders to Governm ent accounts and to Federal Re serve Banks for themselves and as agents of foreign and international m onetary authorities. Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, April 15, 1975, under com petitive and noncom petitive bidding, as set forth in Section III hereof. 5. The notes will be subject to the general regula tions of the D epartm ent of the Treasury, now or here after prescribed, governing U nited States notes. HI. TENDERS AND ALLOTMENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public D ebt, W ashington, D. C. 20226, up to the closing hour, 1:30 p.m., Eastern D aylight Saving time, Tuesday, April 15, 1975. Each tender m ust state the face am ount of notes bid for, which m ust be $5,000 or a m ultiple thereof, and the yield desired, except that in the case of noncom petitive tenders the term “noncom petitive” should be used in lieu of a yield. In the case of com petitive tenders, the yield m ust be expressed in term s of an annual yield, with two decimals, e.g., 6.45. Fractions may not be used. Noncompetitive tenders from any one bidder may not exceed $500,000. H. DESCRIPTION OF NOTES 1. The notes will be dated April 30, 1975, and will bear interest from th at date, payable semiannually on October 31, 1975, and thereafter on April 30 and October 31 in each year until the principal am ount becomes payable. They will m ature April 30, 1977, 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 dealers who make prim ary markets in Governm ent securities and report daily to the Federal Reserve Bank of New York their positions w ith respect to Gov ernm ent securities and borrowings thereon, may sub m it 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 with out 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 p u b lic funds, international organizations in w hich the 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, w hether 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 m ent of taxes. 4. Bearer notes w ith interest coupons attached, and notes registered as to principal and interest, will be 3 D. C. 20226. Paym ent m ust be in cash, in other funds im mediately available to the Treasury by April 30, 1975, or by check draw n to the order of the F ed eral Reserve Bank to which the tender is subm itted, or the U nited States Treasury if the tender is sub m itted to it, w hich m ust be received at such Bank or at the Treasury no later than: (1) Friday, April 25, 1975, if the cheek is draw n on a bank in the F ed eral Reserve D istrict of the Bank to which the check is subm itted, or the Fifth Federal Reserve D istrict in the case of the Treasury, or (2 ) W ednesday, April 23, 1975, if the check is draw n on a bank in another dis trict. Checks received after the dates set forth in the preceding sentence will not be accepted unless they are payable at a Federal Reserve Bank. Paym ent will not be deem ed to have been com pleted where regis tered notes are requested if the appropriate identify ing num ber as required on tax returns and other docu ments subm itted to the Internal Revenue Service (an individual’s social security num ber or an employer identification num ber) is not furnished. In every case w here 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 U nited States. U nited States holds m em bership, foreign central banks and foreign States, dealers who make prim ary markets in Governm ent securities and report daily to the F ed eral Reserve Bank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon, 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. 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 am ount and yield range of accepted bids. Those sub m itting com petitive tenders will be advised of the acceptance or rejection thereof. In considering the ac ceptance of tenders, those w ith the lowest yields will be 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 p er cent necessary to make the average accepted price 100.00 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 be required to pay the price corresponding to the yield bid. Price calculations will be 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. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, including the right to accept tenders for more or less than the $1,500,000,000 of notes offered to the public, and his action in any such respect shall be final. Subject to these reserva tions, noncom petitive tenders for $500,000 or less w ith out stated yield from any one bidder will b e accepted in full at the average price (in three decim als) of accepted com petitive tenders. V. 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. IV. PAYMENT 1. Settlem ent for acceptcd tenders in accordance with the bids m ust be m ade or com pleted on or before April 30, 1975, at the Federal Reserve Bank or Branch or at the Bureau of the Public D ebt, W ashington, 4 STEPHEN S. GARDNER, Acting Secretary of the Treasury. FORM NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, April 15,1975. TENDER FOR TREASURY NOTES OF SERIES H-1977 Dated April 30,1975 F e d e r a l R ese r v e B a n k of N ew Due April 30,1977 D ated a t .............................................. Y o rk , Fiscal Agent o f the U nited States, New York, N . Y. 10045 19__ Pursuant to the provisions of Treasury D epartm ent Circular No. 12-75, Public D ebt Series, dated April 10, 1975, the undersigned hereby offers to purchase U nited States of America Treasury Notes of Series H-1977 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 b o th C o m p e titive and N o n c o m p e titiv e tenders on one fo rm $ ......................................................... ( m aturity v alu e) or any lesser am ount th at may be awarded. NONCOMPETITIVE TENDER $ ......................................................... ( m aturity value) ( N o t to exceed $500,000 fo r one b id d er th rough all sources) at the average price of accepted competitive bids. Y ie ld :........... (Y ie ld m u s t be expressed w ith n o t m ore th a n tw o d ecim a l places, fo r exam ple, 6 .4 5 ) 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 complete schedule on reverse side): P ieces D en o m in atio n $ M atu rity value 5,000 □ 1. □ 2. S hip to th e u n d ersig n ed □ 3. H o ld in safek eep in g (fo r m em b e r b a n k o n ly ) in — 10,000 □ □ □ 100,000 1,000,000 T o tals D eliv er over th e co u n ter to th e u n d ersig n ed □ 4. In v estm en t A ccount G eneral A ccount T ru st A ccount P ay m en t w ill b e m ad e as follows: □ By ch arg e to o u r reserve account □ By cash or check in im m ed ia tely available fu n d s on delivery □ 5. Special in structions: H o ld as collateral fo r T reasu ry Tax an d L oan A ccount* ( N o changes in d elivery instructions w ill b e a c c e p te d ) * T h e u n d e rsig n ed certifies th a t th e a llo tte d securities w ill b e o w ned solely b y th e und ersig n ed . ( If a co m m ercial b a n k o r d ealer is su b scrib in g fo r its ow n a cc o u n t o r fo r a cco u n t o f custom ers, th e follow ing certifications are m ad e a p a rt of this te n d e r .) W e H e r e b y C e r t if y that we have received tenders from our customers in the amounts set forth opposite the customers’ names on the list which is made a part of this tender, and that we have either received and are holding for the Treasury or we guarantee payment to the Treasury of deposits stipulated in the official offering circular. W e F u r t h e r C e r t if 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 print or type) Insert this ten der in special envelope m arked “T ender for Treasury N o tes” (Address — incl. City and State) (T el. N o .) (Signature of subscriber or authorized signature) (T itle of authorized signer) ( B anking institu tio n s su b m ittin g ten d ers fo r cu sto m er a cco u n t m u st list custom ers’ nam es on lines b elo w or on an a tta ch e d r id e r ) (N am e of customer) (N am e of customer) IN S T R U C T IO N S : 1. v a lu e ). N o ten d e r for less th an $5,000 w ill b e considered; an d each te n d e r m u st b e for a m u ltip le of $5,000 (m a tu rity 2. O nly b a n k in g institutions, a n d dealers w ho m ake p rim ary m arkets in G o v ern m en t securities a n d re p o rt d aily to this B ank th eir positions w ith resp ect to G o v ern m en t securities an d borrow ings th ereo n , m ay su b m it ten d ers for cu sto m er acco u n t; in d o in g so, th ey m ay consolidate com petitive ten d ers at th e sam e yield an d m ay consolidate no n co m p etitiv e tenders, p ro v id ed a list is a tta c h e d show ing th e nam e o f each b id d e r an d th e am o u n t b id for his account. O th ers w ill n o t b e p e rm itte d to su b m it ten d ers ex cep t for th eir ow n account. 3. If th e perso n m ak in g th e te n d e r is a corporation, th e te n d e r should b e signed b y an officer of th e co rp o ratio n a u th o r ized to m ake th e ten d e r, an d th e signing of th e ten d e r b y an officer o f th e co rp o ratio n w ill b e co n stru ed as a rep resen tatio n b y him th a t h e has b e e n so a u th o rized . If th e te n d e r is m ad e b y a p a rtn e rsh ip , it sho u ld b e sig n ed b y a m em b er o f th e firm , w ho sh o u ld sign in th e form “ ...................................................................... .. a c o p artn ersh ip , b y ............................................................. .................................................................... a m em b er o f th e firm.” 4. T en d ers will b e receiv ed w ith o u t deposit from com m ercial an d o th er banks for th e ir ow n acco u n t, F ed erally -in su red savings an d lo an associations, States, political subdivisions o r in stru m en talities th ereo f, p u b lic p ension and re tirem e n t an d o th er p u b lic fu n d s, in tern atio n al organizations in w hich th e U n ited S tates holds m em b ersh ip , foreign cen tral banks an d foreign S tates, d ealers w ho m ake p rim ary m arkets in G overnm ent securities a n d re p o rt daily to th e F e d e ral R eserve Bank o f N ew York th e ir positions w ith resp ect to G o v ern m en t securities an d borrow ings th ereo n , a n d G o v ern m en t accounts. T en d ers from others m u st b e acco m p an ied b y p a y m e n t of 5 p e rc e n t o f th e face a m o u n t o f th e securities ap p lied for. All checks m u st b e d raw n to th e o rd er o f th e F e d e ra l R eserve B ank o f N ew York; checks en d o rsed to this B ank w ill n o t b e accep ted . 5. If th e lan g u ag e o f this te n d e r is ch an g ed in an y resp ect, w hich, in th e opinion of th e S ecretary of th e T reasu ry is m aterial, th e te n d e r m ay b e disreg ard ed . SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES H-1977 SUBSCRIPTION NO. D E L IV E R Y INSTRUCTIONS FOR FR B USE O N LY SUB SCR IBER I " ! D E L IV E R OVER T H E C O U N T E R SIGN A TU R E __ I TR A N S. A CC O U N TIN G D A T E I SHIP TO SUBSCRfSER □ p O TH ER INSTRUCTIO NS: ISSUE AGENT 12 ADDRESS REGISTRATION □ □ □ w SJ O LOAN CODE APR. 30, 1975 Z IP 8 B 110-01 N O . OF P IE C E S INSTRUCTIONS O EN O M . AMOUN r SERIAL NOS. (LEAVE BLANK) FOR FRB USE ft t- £ » r fc I 5 &J I ONLY NAME(S) ID OR S.S. NO. ADDRESS Z IP ?2 5.000 3* 10.QQO 38 100.000 42 1.000.000 99 TO TA L I H I TR CASE NO. s o NAME(S) 32 ID OR S.S. NO. ADDRESS Z IP 5.000 34 10.000 38 100.000 42 1,000.000 99 to ta l 5* CO 00 TR CASE NO. □ NAMEtSl 3? 34 ID OR S.S. NO. 10.000 Z IP *? 1.000.000 99 to ta l T R ..C A S E NO. Z IP 42 1.000.000 99 to ta l "VI ID OR S.S. NO. v AODRESS Z IP S B 8 e 8 t=s p s' C /5 o & T R . CASE NO. iy v i 100.000 4? 1.000.000 99 TO TA L § - •8 5’ S ' TO L ai o > > 8 O O oa *; n o n in £- >1 NAME(S) ?? O o> t? < 11 100.000 ADDRESS 2. el o’ >i 0 5.000 T R . CASE NO. □ Ou ft 10.000 ID OR S.S. NO. □ o £ p NAME(S) 32 □ X X X o^ 5.000 100.000 AODRESS t 03 & H CL ►o So 3 0 0 2 | |I ' 2 S 3* 8“ ff | III Q 2 r s 3, 3 ? 5 to a 0 s ►t 1 V) r* « cl c r 2L o - 3 Federal Reserve Bank of New York Securities Department (8th Floor) 33 Liberty Street New York, N. Y. 10045 Tender for Treasury Notes
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