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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 7 6 3 3 *1 L May 16, 1975 J AUCTION OF S I.5 BILLION OF TREASURY NOTES Series 0-1976 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued May 15 by the Treasury Department: The Treasury will auction to the public under com petitive and noncom petitive bidding up to $1.5 billion of 17-month notes. The coupon rate for the notes will be determ ined after tenders are allotted. Additional amounts of the notes may be issued at the average price of accepted tenders to Governm ent accounts and to Federal Reserve Banks for them selves and as agents of foreign and international m onetary authorities. T he notes will be Treasury Notes of Series 0-1976, dated June 6 , 1975, due O ctober 31, 1976 (C U SIP No. 912827 EP3) w ith interest payable on a semiannual basis on October 31, 1975, April 30, 1976, and October 31, 1976. 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 June 6, 1975. Paym ent may not be m ade through tax and Ipan accounts. Notes in bearer form will be delivered on June 6 , 1975. Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Thursday, May 22, 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 timely received if they are m ailed to any such agency under a postm ark no later than W ednesday, May 21. Each tender m ust be in the am ount of $5,000 or a m ultiple thereof, and all tenders must state the yield desired, if a com petitive tender, or the term “noncom petitive”, if a noncom petitive tender. Fractions may not be used in tenders. The notation “TEN D ER FOR 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 decimal places, e.g., 7.11, 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 m ake th e average accepted price 100.000 or less. T hat will be the rate of interest that will be paid on all of th e notes. Based on such interest rate, the price on each com petitive tender allotted will be determ ined and each successful com peti tive bidder will pay the price corresponding to the yield he 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 th e Secretary of the Treasury shall b e final. Tenders at a yield that will produce a price less than 99.751 will not be accepted. 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 $500,000 or less will be accepted in full at the average price of accepted com petitive tenders which price will be 100.000 or less. 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 Governm ent securities and borrowings thereon, m ay subm it tenders for the account of customers, provided the names of th e 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, 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 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 w ith 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 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 notes w ith their tenders in order to m eet the time limits pertaining to checks as hereinafter set forth. Allotment notices will not be sent to bidders w ho subm it noncom petitive tenders. Paym ent for accepted tenders m ust be com pleted on or before Friday, June 6 , 1975, at the Federal Reserve Bank or Branch or at the Bureau of the Public D ebt in cash, in other funds im mediately available to th e T reasury by June 6 , or by check draw n to the order of the Federal Reserve Bank to which the ten d er is subm itted, or the U nited States Treasury if the ten d er is subm itted to it, w hich m ust be received at such Bank or at the Treasury no later than: (1 ) Tuesday, June 3, 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 F ifth Federal Beserve D istrict in the case of the Treasury, or (2 ) Friday, May 30, 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 F ederal Reserve Bank. W here full paym ent is not com pleted on time, the allotm ent will be cancelled 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 se t fo rth in T re a su ry D e p a rtm e n t C irc u la r No. 17-75, P u b lic D e b t Series, d a te d M ay 16, 1975, a co p y of w h ic h is p rin te d on th e follow ing pages. T h is B ank w ill receiv e te n d e rs u p to 1:30 p.m ., E a s te rn D a y lig h t S aving tim e, T h u rsd a y , M ay 22, 1975, a t th e S ecu rities D e p a rtm e n t o f its H e a d Office a n d a t its Buffalo B ranch; p ro v id ed , h o w ev er, th a t noncompetitive te n d e rs w ill b e c o n sid e re d tim e ly re c e iv e d if th e y are m a iled to this B ank o r its B ra n c h u n d e r a p o stm ark no later than May 21, 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 fo r T re a su ry N otes o r B onds.” T en d e rs n o t re q u irin g a d ep o sit m a y b e su 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 telep h o n e . S e ttle m e n t fo r a c c e p te d te n d e rs m a y b e m a d e in cash o r o th e r im m e d ia tely a v 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 N o. 17-75; 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 c h e ck m u s t b e a certified p e rso n a l check o r an official b a n k check, p a y a b le on its fa c e to th e F e d e ra l R eserv e B an k 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 o n a y ie ld basis, as se t fo rth in S ection I I 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 99.751 will not be accepted. N o n co m p e titiv e b id d e rs w ill b e re q u ire d to p a y th e av e ra g e p ric e o f a c c e p te d c o 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 a y 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. A lfred H ayes , President. 2 FORM NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Thursday, May 22, 1975. TEN D ER FOR TREASURY NOTES OF SERIES 0 -1 9 7 6 F R ederal eserve D ated June 6, 1975 D ue O ctober 31, 1976 Bank D ated at of N ew York, 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. 17-75, Public D ebt Series, dated May 16, 1975, the undersigned hereby offers to purchase U nited States of America Treasury Notes of Series 0-1976 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. C O M PE T IT IV E T E N D E R Do not fill in both Competitive and Noncompetitive tenders on one form $ ......................................................... (m aturity value) or any lesser am ount that may be awarded. NO N CO M PETITIV E TE N D E R $ ......................................................... (m aturity value) (N ot to exceed $500,000 for one bidder through all sources) at the average price of accepted competitive bids. Yield: (Yield must be expressed with not more than two decimal places, for example, 7.11) Subject to allotment 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): Pieces D enom ination $ Maturity value 5,000 □ 1. □ 2. Ship to the undersigned □ H old in safekeeping (for m em ber bank only) in — 3. 10,000 100,000 1,000,000 Totals D eliver over the counter to the undersigned □ 4. |_j lu v c jim c m □ □ General Account Trust Account n tL u u m Payment w ill be made as follows: □ □ By charge to our reserve account By cash or check in immediately available funds □ 5. Special instructions: H old as collateral for Treasury Tax and Loan Account * ( No changes in delivery instructions will be accepted) * The undersigned certifies that the allotted securities w ill be owned solely by the undersigned. ( If a commercial bank or dealer is subscribing for its own account or for account of customers, the follow ing certifications are made a part of this tender.) 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 forth opposite the customers’ names on the list which is made a p art of this tender, and that 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 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 tender in special envelope marked “Tender for Treasury Notes or Bonds” (A ddress — incl. City and S tate) (T el. N o .) ( Signature of subscriber or authorized signature) ( Title o f authorized sign er) (Banking institutions subm itting tenders for customer account must list customers’ names on lines below or on an attached rider) ( Nam e of custom er) ( Nam e of custom er) INSTRU CTIO 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 (m aturity 2. O nly 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 com petitive tenders at the same yield and may consolidate noncom petitive tenders, provided a list is attached show ing the name of each bidder and the amount bid for his account. Others w ill not be permitted to submit tenders except for their own account. 3. If the person m aking 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 w hich the U nited States holds membership, foreign central banks and foreign States, dealers w ho make primary markets in Government securities and report daily to the Federal Reserve Bank of N ew York their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accom panied by paym ent of 5 percent o f the face amount of the securities applied for. All checks must be drawn to the order of the Federal Reserve Bank of N ew York; checks endorsed to this Bank w ill 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 b e disregarded. SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES 0-1976 SUBSCRIPTION NO. D E L I V E R Y I NSTRUCTI ONS FOR FR B USE O NLY SUBSCRIBER I 1 DELIVER OVER TH E COU NTER SIGN ATURE__ I □ ADDRESS TRANS. ACCOUNTING DATE I SHIP TO SUBSCRIBER o ther INSTRUCTIONS: ISSUE AGENT 12 kfiA.N .C Q P E J U N E 6, 1975 - Z i£ . REGISTRATION b NO. OF P IE C E S INSTRUCTIONS no -o r A M O U N T (L E A V E B L A N K ) FOR FRB US E to M ^ □ □ □ | w ta a w h : i 3 S ? I S E R IA L N O S . OENOM. U ONLY 5 8 - a> cr S: NAME(S) 32 5 .0 0 0 3 -Q 34 10 0 0 0 38 1 0 0 .0 0 0 I 42 1 .0 0 0 .0 0 0 99 total ID OR S.S. NO. ft. ADDRESS ZIP 5 .0 0 0 34 1 0.00 0 38 1 00 .0 0 0 42 1 .0 0 0 .0 0 0 99 total ID OR S.S. NO. ADDRESS a 34 ID OR S.S. NO. TR CASE NO. 4? ZIP 99 M W M H □ □ □ □ □ □ N S’ C=? <3 0 635 1 &9 a o 1 0.00 0 S3 1 .0 0 0 .0 0 0 total T R . .CASE NO. NAME(S) 32 QO a <an |2 5 .0 0 0 1 0 0 .0 0 0 ADDRESS 8 5* NAME(S) 32 s ES ® ^ IP A^ if If ’s 8 , TR CASE NO. NAME(S) 32 I 5 .0 0 0 C O V r*) « 0- 1 0 .0 0 0 ID OR S.S. NO. ■w ADDRESS Z IP & o3 1 0 0 .0 0 0 42 1 .0 00 .00 0 99 TOTAL T R . CASE NO. NAME(S) 32 M ID OR S.S. NO. "W ADDRESS Z IP s onn .. .. 1.1 am 1 0 0 .0 0 0 4? 1 .000, ooc 99 TOTAL T R . CASE NO. UNITED STATES OF AMERICA TREASURY NOTES OF SERIES 0-1976 Dated and bearing interest from June 6, 1975 Due October 31, 1976 DEPARTMENT OF THE TREASURY, Office of the Secretary, Washington, May 16,1975. D E P A R T M E N T CIRCULAR Public D ebt Series — No. 17-75 I. eligible bidders in multiples of those amounts. In ter changes of notes of different denominations and of coupon and registered notes, and the transfer of reg istered notes will be perm itted. IN V ITATION FO R TEN D ERS 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as am end ed, invites tenders on a yield basis for $1,500,000,000, or thereabouts, of notes of the U nited States, desig n ated Treasury Notes of Series 0-1976. The interest rate for the notes will be determ ined as set forth in Section III, paragraph 3, hereof. Additional amounts of these notes may be issued at the average price of accepted tenders to Governm ent accounts and to F ed eral Reserve Banks for themselves and as agents of foreign and international m onetary authorities. Ten ders will be received up to 1:30 p.m., Eastern Daylight Saving time, Thursday, May 22, 1975, under com pe titive and noncom petitive bidding, as set forth in Sec tion III hereof. II. 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. 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, T hurs day, May 22, 1975. Each tender must state the face am ount of notes bid for, which must be $5,000 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 m ust be ex pressed in terms of an annual yield, w ith two decimals, e.g., 7.11. Fractions may not be used. Noncompetitive tenders from any one bidder may not exceed $500,000. D ESC R IPTIO N O F NOTES 1. The notes will be dated June 6, 1975, and will bear interest from that date, payable on a sem iannual basis on October 31, 1975, April 30, 1976, and O ctober 31, 1976. They will m ature October 31, 1976, 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 Government 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 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 w ith 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 which the U nited States holds membership, 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 New York their positions with 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, b u t are exempt from all taxation now or hereafter im posed 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. 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 issued in denom inations of $5,000, $10,000, $100,000 and $1,000,000. Book-entry notes will be available to TEN D ERS AND ALLOTM ENTS 3 respect to Governm 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 acceptance 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 per cent 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 competitive 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 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 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 reservations, noncompetitive tenders for $500,000 or less w ithout stated yield from any one bidder will be accepted in full at the average price (in three deci mals ) of accepted com petitive tenders. IV. PAYMENT 1. Settlement for accepted tenders in accordance w ith the bids m ust be m ade or com pleted on or before June 6, 1975, at the Federal Reserve Bank or Branch or at the Bureau of the Public D ebt, W ashington, D. C. 20226. Paym ent must be in cash, in other funds im m ediately available to the Treasury by June 6, 4 1975, 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, w hich m ust be received at such Bank or at the Treasury no later than: (1 ) Tuesday, June 3, 1975, if the check is draw n on a bank in the Federal Reserve D istrict of the Bank to w hich the check is subm itted, or the Fifth Federal Reserve D istrict in the case of the Treasury, or (2) Friday, May 30, 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. Pay m ent will not be deem ed to have been com pleted w here registered notes are requested if the appropri ate identifying num ber as required on tax returns and other documents subm itted to the Internal Revenue Service (an individual’s social security num ber or an em ployer 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 made by the Secretary of the Treasury in his discretion, be forfeited to the United States. 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. W ILLIA M E. SIMON, Secretary of the Treasury.