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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ Circular No. 7666 July 11, 1975 ] AUCTION OF $1.5 BILLION OF TREASURY NOTES S e r ie s K -1 9 7 7 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statem ent was issued July 10 by the Treasury Departm ent: The Treasury will auction to the public under competitive and noncompetitive bidding up to $1.5 billion o f 2-year notes. The coupon rate for the notes will be determ ined after tenders are allotted. Additional am ounts o f the notes may be issued at the average price o f accepted tenders to G overnm ent accounts and to Federal Reserve Banks for themselves and as agents o f foreign and international m onetary authorities. The notes will be Treasury Notes o f Series K-1977, dated July 31, 1975, due July 31, 1977 (C U S IP No. 912827 ES7) with interest payable semiannually on January 31, 1976, July 31, 1976, January 31, 1977 and July 31, 1977. They will be issued in registered and bearer form in denominations o f $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 must be made on July 31, 1975. Payment may not be m ade through tax and loan accounts. Notes in bearer form will be delivered on July 31, 1975. Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Thursday, July 17, at any Federal Reserve Bank or Branch and at the Bureau o f the Public Debt, W ashington, D. C. 20226; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postm ark no later than W ednesday, July 16. Each tender must be in the am ount o f $5,000 or a m ultiple thereof, and all tenders must state the yield desired, if a competitive tender, or the term “ noncom petitive”, if a noncompetitive tender. Fractions may not be used in tenders. The notation “ T E N D E R FO R TR EA SU R Y N O TE S” should be printed at the bottom o f envelopes in which tenders are submitted. Competitive tenders must be expressed in terms o f annual yield in two decimal places, e.g., 7.11, and not in terms o f a price. Tenders at the lowest yields, and noncompetitive tenders, will be accepted to the extent required to attain the am ount offered. After a determ ination is made as to which tenders are accepted, a coupon yield will be determined to the nearest V% o f 1 percent necessary to make the average accepted price 100.000 or less. That will be the rate o f interest that will be paid on all o f the notes. Based on such interest rate, the price on each competitive tender allotted will be determined and each successful competitive bidder will pay the price corresponding to the yield he bid. Price calculations will be carried to three decimal places on the basis o f price per hundred, e.g., 99.923, and the determinations o f the Secretary o f the Treasury shall be final. Tenders at a yield that will produce a price less than 99.501 will not be accepted. The 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 will be accepted in full at the average price o f accepted competitive 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 Government securities and report daily to the Federal Reserve Bank o f New York their positions with respect to Governm ent securities and borrowings thereon, may subm it tenders for the account o f customers, provided the names o f the customers are set forth in such tenders. Others will not be perm itted to submit tenders except for their own account. 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 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 o f New York their positions with respect to Governm ent securities and borrowings thereon, Federal Reserve Banks, and G overnm ent accounts. Tenders from others must be accompanied by paym ent o f 5 percent o f the face am ount o f securities applied for. However, bidders who submit checks in paym ent on tenders submitted directly to a Federal Reserve Bank or the Treasury may find it necessary to submit full paym ent for the notes with their tenders in order to meet the time limits pertaining to checks as hereinafter set forth. Allotment notices will not be sent to bidders who submit noncompetitive tenders. Paym ent for accepted tenders must be completed on or before Thursday, July 31, 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 the Treasury by July 31, or by check drawn to the order o f the Federal Reserve Bank to which the tender is submitted, or the United States Treasury if the tender is submitted to it, which must be received at such Bank or at the Treasury no later than: (1 ) M onday, July 28, 1975, if the check is drawn on a bank in the Federal Reserve District of the Bank to which the check is submitted, or the Fifth Federal Reserve District in the case o f the Treasury, or (2 ) Thursday, July 24, 1975, if the check is drawn 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 completed on time, the allotment will be canceled and the deposit with the tender up to 5 percent o f the am ount o f notes allotted will be subject to forfeiture to the United States. The terms of the offering are set forth in Treasury Department Circular No. 20-75, Public Debt Series, dated July 11, 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, Thursday, July 17, 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 July 16, 1975. Please use the enclosed tender form to submit a tender, and return it in the enclosed envelope marked “Tender for Treasury Notes or Bonds.” 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. 20-75; settlement cannot be made by credit in Treasury Tax and Loan Accounts. If payment 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, as set forth in Section III of the official offering circular. Tenders at a yield that will produce a price less than 99.501 will 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 l fr e d H ay es, President. 2 UNITED STATES OF AMERICA T R E A S U R Y NO TES O F SERIES K -1977 D a te d and bearing in terest from Ju ly 31, 1975 D u e J u ly 31, 1977 DEPARTMENT OF THE TREASURY, Office o f the Secretary, D E P A R T M E N T C IR C U L A R Public Debt S eries—No. 20-75 Washington, July 11, 1975. 5. The notes will be subject to the general regulations of the D epartm ent of the Treasury, now or hereafter prescribed, governing United States notes. I. INVITATION FOR TENDERS 1. The Secretary o f the Treasury, pursuant to the authority o f the Second Liberty Bond Act, as amended, invites tenders on a yield basis for $1,500,000,000, or thereabouts, o f notes o f the United States, designated Treasury Notes o f Series K-1977. The interest rate for the notes will be determ ined as set forth in Section III, III. TENDERS AND ALLOTMENTS parag rap h 3, hereof. Additional amounts o f these notes 1. Tenders will be received at Federal Reserve Banks m ay be issued at the average price o f accepted tenders and Branches and at the Bureau o f the Public Debt, to G overnm ent accounts and to Federal Reserve Banks Washington, D. C. 20226, up to the closing hour, 1:30 for themselves and as agents o f foreign and inter p.m., Eastern Daylight Saving time, Thursday, July 17, national m onetary authorities. Tenders will be received 1975. Each tender must state the face am ount o f notes up to 1:30 p.m., Eastern Daylight Saving time, bid for, which must be $5,000 or a multiple thereof, and Thursday, July 17, 1975, under competitive and the yield desired, except that in the case o f noncompeti noncom petitive bidding, as set forth in Section III tive tenders the term “ noncompetitive” should be used hereof. in lieu o f a yield. In the case o f competitive tenders, the yield must be expressed in terms o f an annual yield, with two decimals, e.g., 7.11. Fractions may not be II. DESCRIPTION OF NOTES used. Noncompetitive tenders from any one bidder 1. The notes will be dated July 31, 1975, and will may not exceed $500,000. bear interest from that date, payable semiannually on January 31, 1976, July 31, 1976, January 31, 1977, and 2. Commercial banks, which for this purpose are July 31, 1977. They will m ature July 31, 1977, and will defined as banks accepting dem and deposits, and deal not be subject to call for redem ption prior to maturity. ers who make prim ary markets in Governm ent secu 2. The income derived from the notes is subject to all rities and report daily to the Federal Reserve Bank of New York their positions with respect to Governm ent taxes im posed under the Internal Revenue Code of securities and borrowings thereon, may submit tenders 1954. The notes are subject to estate, inheritance, gift o r other excise taxes, w hether Federal or State, but are for account o f customers provided the names o f the customers are set forth in such tenders. Others will not exem pt from all taxation now or hereafter imposed on be permitted to submit tenders except for their own the principal or interest thereof by any State, or any of account. Tenders will be received without deposit from the possessions o f the United States, or by any local banking institutions for their own account, Federallytaxing authority. insured savings and loan associations, States, political 3. The notes will be acceptable to secure deposits of subdivisions or instrumentalities thereof, public pension public moneys. They will not be acceptable in payment and retirement and other public funds, international o f taxes. organizations in which the United States holds 4. Bearer notes with interest coupons attached, and membership, foreign central banks and foreign States, notes registered as to principal and interest, will be dealers who make primary markets in Government issued in denom inations o f $5,000, $10,000, $100,000 securities and report daily to the Federal Reserve Bank and $1,000,000. Book-entry notes will be available to of New York their positions with respect to Governm ent eligible bidders in multiples o f those amounts. Inter securities and borrowings thereon, and Government changes o f notes o f different denominations and of accounts. Tenders from others must be accompanied by coupon and registered notes, and the transfer o f regis paym ent o f 5 percent o f the face amount o f notes tered notes will be permitted. applied for. 3 3. Immediately after the closing hour tenders will be opened, following which public announcement will be made by the Department of the Treasury of the amount and yield range of accepted bids. Those submitting competitive tenders will be advised of the acceptance or rejection thereof. In considering the acceptance of tenders, those with the lowest yields will be accepted to the extent required to attain the amount offered. Ten ders at the highest accepted yield will be prorated if necessary. After the determination is made 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. That 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 determined and each successful competitive 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 determinations 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 without stated yield from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive tenders. IV. PAYMENT 1. Settlement for accepted tenders in accordance with the bids must be made or completed on or before July 31, 1975, at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt, Washington, D. C. 20226. Payment must be in cash, in other funds immediately available to the Treasury by July 31, 1975, or by check drawn to the order of the Federal Reserve Bank to which the tender is submitted, or the United 4 States Treasury if the tender is submitted to it, which must be received at such Bank or at the Treasury no later than: (1) Monday, July 28, 1975, if the check is drawn on a bank in the Federal Reserve District of the Bank to which the check is submitted, or the Fifth Federal Reserve District in the case of the Treasury, or (2) Thursday, July 24, 1975, if the check is drawn 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. Payment will not be deemed to have been completed where registered notes 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 number) is not furnished. In every case where full payment is not completed, the payment with the tender up to 5 percent of the amount 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 payment 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 time to time, prescribe supplemental or amenda tory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. WILLIAM E. SIMON, Secretary of the Treasury. FORM NA IMPORTANT—Closing time for receipt of this tender is 1:30 p.m., Thursday, July 17, 1975. TENDER FOR TREASURY NOTES OF SERIES K-1977 Dated July 31, 1975 Due July 31, 1977 Dated a t...................................................... F e d e r a l R e serv e B an k o f N ew Y o rk , Fiscal Agent of the United States, New York, N. Y. 10045 ............................................................ 19 _ Pursuant to the provisions of Treasury Department Circular No. 20-75, Public Debt Series, dated July 11, 1975, the undersigned hereby offers to purchase United States of America Treasury Notes of Series K-1977 in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price awarded on this tender. COMPETITIVE TENDER Do not fill in both competitive and Noncompetitive tenders on one form NONCOMPETITIVE TENDER $....................................................... (maturity value) or any lesser amount that may be awarded. $....................................................... (maturity value) Yield: .......... at the average price of accepted competitive bids. (Not to exceed $500,000 for one bidder through all sources) (Yield must be expressed with not more than two decimal places, for example, 7.11) Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and on the reverse side (if registered securities are desired, please also complete schedule on reverse side): Pieces Denomination $ Maturity value 5,000 10.000 100.000 1.000.000 □ 1. Deliver over the counter to the un dersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for member bank only) in — □ Investment Account □ General Account □ Trust Account □ 4. 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 (No changes in delivery instructions will be accepted) Totals * The undersigned certifies that the allotted securities will be owned solely by the undersigned. ( If a comm ercial bank or dealer is subscribing for its own account or for account o f custom ers, the following certifications are m ade a part o f this ten d er.) 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 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 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, agreements, and certifications as set forth in this form. (N am e of subscriber—please prim or type) Insert this tender in special envelope marked “Tender fo r Treasury Notes or Bonds ” (Address—incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (B an kin g institutions subm itting tenders for custom er account must list custom ers’ nam es on lines below or on an attached rider) (N am e of customer (N am e of customer) IN S T R U C T IO N S : 1. N o tender for less than than $5,000 will be considered; and each tender must be for a multiple o f $5,000 (m aturity v alu e). 2. Only banking institutions, and dealers who m ake prim ary m arkets in G overnm ent securities and report daily to this Bank their positions with respect to G overnm ent securities and borrowings thereon, m ay subm it tenders for custom er 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 nam e o f each bidder and the am ount bid for his account. Others will not be perm itted to subm it tenders except for their own account. 3. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to m ake the tender, and the signing o f the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed by a m em ber o f the firm, who should sign in the form “ .......................................................................... . a copartnership, b y .................................................................................................................................. a m em ber o f the firm .” 4. 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 instrum entalities thereof, public pension and retirement 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 m arkets in G overnm ent securities and report daily to the Fed eral Reserve Bank o f N ew Y ork their positions with respect to G overnm ent securities and borrow ings thereon, and G overnm ent accounts. T enders from others must be accom panied by paym ent o f 5 percent o f the face am ount o f the securities applied for. All checks must be draw n to the order o f the F ed eral Reserve Bank o f N ew Y ork; checks endorsed to this Bank will not be accepted. 5. I f the lan gu age o f this tender is changed in any respect that, in the opinion o f the Secretary o f the Treasury, is m aterial, the tender m ay be disregarded. SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES K-1977 SUBSCRIPTION NO. S U B S C R IB E R . S I G N A T U R E __ DE L I V E R Y I N S T R U C T I O N S P A Y M E N T INSTRUCTIONS □ D E LIVER OV ER TH E C O U NTER □ □ SH IP T O SUBSCIBER □ □ O TH E R IN STR U CTION S: FOR FRB USE O NLY BY C HARGE TO OU R RESERVE A C C O U N T T R A N S . A C C O U N T IN G D A T E BY CASH OR C H E C K IN IMMEDIATELY AVAILABLE FUNDS ISSUE AGENT 12 A D D R E S S _____ July 31, 1975 Z IP INTEREST COMP. DATE NO. OF PIECES R E G IS T R A T IO N IN S T R U C T IO N S DENOM. AM OUNT SERIAL NOS. (LEAVE BLANK) LOAN CODE 110-01 FO R FRB U SE ONLY N A M E (S ) 32 34 ID O R S . S . N O . 38 5 ,0 0 0 1 0 ,0 0 0 1 0 0 ,0 0 0 A D D R ESS 42 Z IP 99 1 ,0 0 0 ,0 0 0 TOTAL TR. C A SE NO. N A M E (S ) 32 5 ,0 0 0 34 1 0 ,0 0 0 38 1 0 0 ,0 0 0 42 1 ,0 0 0 ,0 0 0 ID O R S . S . N O . A D D R ESS Z IP TOTAL 99 TR C A S E N O . N A M E (S ) 32 34 ID O R S . S . N O . 38 5 ,0 0 0 1 0 ,0 0 0 1 0 0 ,0 0 0 A DD R ESS Z IP 42 1 ,0 0 0 ,0 0 0 99 TOTAL TR. C A SE NO. N A M E (S ) 32 34 5 ,0 0 0 1 0 ,0 0 0 ID O R S . S . N O . 38 A D D R E SS 42 Z IP 1 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0 TOTAL 99 TR. C A SE NO. N A M E (S ) 32 34 ID O R S . S . N O . 5 ,0 0 0 1 0 ,0 0 0 38 1 0 0 ,0 0 0 42 1 ,0 0 0 ,0 0 0 A D D R E SS Z IP 99 TOTAL TR. C A SE NO.
@FedFRASER