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FED ER AL R E SE R V E BANK O F N E W YORK Fiscal Agent of the United States r Circular No. 7 7 8 7 1 L January 2 , 1976 4 Offering of $1,820,000,000 of 364-Day T reasury Bills Dated January 13, 1976 Due January 11, 1977 Y'o ^4// /Mcor/wa/ed FawAy aad Tray/ Com^aMfcy, aad O/Acry w /Ac Yccoad Fcdcra/ Fcycrt'c Diy/r:c/; Following is the text of a notice issued December 31, 1975 by the Treasury Department: Hie Department of the Treasury, by this public notice, invites tenders for 364-day Treasury bids to be dated January 13, 1976, and to mature January 11, 1977 (C U SIP No. 912793 C87). The bills will be issued for cash and in exchange for Treasury bills maturing January 13, 1976. Tenders in the amount of $1,820 million, or thereabouts, will be accepted from the public, which holds $812 million of the maturing hills. Additional amounts of the bills may be issued at the average price of accepted tenders to Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and inter national monetary authorities, which hold $1,189 million of the ma turing bills. The bills will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value) and in bookentry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Wednesday, January 7, 1976. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions and 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 may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. Others will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tender^ from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. 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, noncompetitive tenders for $500,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 13, 1976, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 13, 1976. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b) and 1221(5) of the Internal RevenueCode of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Treasury Department Circular No. 418 (current revision) and this notice prescibe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Wednesday, January 7, 1976 at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this notice to submit a tender and return it in the enclosed envelope marked "Tender for Treasury Bills/' Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. PaymeH/ Jor /Ac Treayary Ad/y emmo/ Ac made Ay crcdd /Aroai/A /Ac Trcayary Ta.r aad Lorn: r^ccoim/. Ae/deme?:/ may/ Ac made fw cayA or o/Acr ?'mmed;'a/e/y avadaA/e Jandy or m ma/arfm/ Trcayarv Ad/y. P A U L A . VOLCKER, PreyfdeM/. (OVER) TENDER FOR 364-DAY TREASURY BILLS Dated January 13, 1976 To Due January 11, 1977 Dated a t ..................... ........... FEDERAL RESERVE B A N K OF N E W Y O R K , Fiscal Agent of the United States 19- Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: Do Mot /if/ in AofA Voy^om/^fRivo COMPETITIVE TENDER 8.......................................................... (maturity value) or any lesser amount that may be awarded. Price : ....................................................per 100. (Pruro wa^f w:(A not ?no?r fAan (Ar^ and on on^ /or?n NONCOMPETITIVE TENDER $.......................................................... (maturity value) (Wo? to /or onp A:d&r (Aroa^A al/ joarcf-f) at the average price of accepted competitive bids. dprizna? /dncp-L for f^raw/D, 9P.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value 10,000 D 1. Deliver over the counter to the undersigned n 2. Ship to the undersigned 15,000 Q 3. Hold in safekeeping (for mem ber bank only) in— 50,000 Payment will be made as follows: D By charge to our reserve account D By cash or check in tfnmfdtofHy avai/aAA? /andj on delivery (Daymen? cannof A^ wa& (AroapA Tr^a-fary Pa.v and Loan Hccoanf/ D Investment Account 100,000 D 5. Special instructions: FI General Account 500,000 Q Trust Account 1,000,000 D 4. Allotment transfer (see list attached) (Vo cAan<7?.y fn fn^fracffon^ wi/J A? acff/dfd) Totals The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. Insert t/tts tender in special envelope marked Tender /or Treasury B id s" (Address—inch City and State) (Teh No.) (Signature of subscriber or authorized signature) (Title 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 ST R U C T IO N S: 1. No tender for less than $10,000 will be considered, and each tender must be for an even multiple of $5,000 (maturity value). 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 of (A? ^azno pr:'<r^ 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 authorized to make the tender, and the signing of the tender by an ofhcer 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 '*................................................................................................. . 3 copartnership, by ............................................................................. .............., a member of the firm." 4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment bv an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank of New Y ork; 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.