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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States AU C TIO N OF $3.0 B ILLIO N OF TREASURY NOTES DMtnct.* The following statement was issued March 11 by the Treasury Department: The Department o f the Treasury will auction $3.0 billion o f 2-year notes to refund $2.3 billion o f notes maturing March 31, 1976, and to raise $0.7 billion o f new cash. The public holds $2,143 million o f the maturing notes and $145 million is held by Government accounts and the Federal Reserve Banks for themselves and as agents o f foreign and international monetary authorities. Additional amounts o f the notes may be issued to Federal Reserve Banks as agents o f foreign and international monetary authorities for new cash. The notes now being offered will be Treasury Notes o f Series K-1978 dated March 31, 1976, due March 31, 1978 (C U SIP No. 912827 F L 1 ) with interest payable semiannually on September 30, 1976, March 31, 1977, September 30, 1977, and March 31, 1978. The coupon rate will be determined after tenders are allotted. The notes 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 to designated bidders. Payment for the notes may not be made through tax and loan accounts. Tenders will be received up to 1:30 p.m., Eastern Standard time, Thursday, March 18, 1976, at any Federal Reserve Bank or Branch and at the Bureau o f the Public Debt, Washington, D. C. 20226; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than March 17. Tenders must be in the amount o f $5,000 or a multiple thereof, and all tenders must state the yield desired, if a competitive tender, or the term "noncompetitive", if a noncompetitive tender. Fractions may not be used in tenders. The notation "T E N D E R FO R T R E A SU R Y N O T E 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 amount offered. After a determination is made as to which tenders are accepted, a coupon yield will be determined to the nearest 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 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. Noncompetitive bidders will be required to pay the average price o f accepted competitive tenders; the price will be 100.000 or less. 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, noncompetitive tenders for $500,000 or less, and all tenders from Government accounts and the Federal Reserve Banks for themselves and as agents o f foreign and international monetary authorities, will be accepted in full at the average price o f accepted competitive tenders. Commercial banks, which for this purpose are defined as banks accepting demand deposits, and dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank o f New York their positions with respect to Government securities and borrowings thereon, may submit tenders for the account o f customers, provided the names o f the customers are set forth therein. Others will not be permitted 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 retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank o f New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of notes applied for. However, bidders who submit checks in payment on tenders submitted directly to a Federal Reserve Bank or the Treasury may find it necessary to submit full payment 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. Payment for accepted tenders must be completed on or before Wednesday, March 31, 1976. Payment must be in cash, 8% Treasury Notes of Series H-1976, which will be accepted at par, in other funds immediately available to the Treasury by the payment date or by check drawn to the order of 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) Thursday, March 25, 1976, 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 case of the Treasury, or (2) Tuesday, March 23, 1976, 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. Where full payment is not completed on time, the allotment will be canceled and the deposit with the tender up to 5 percent of the amount of notes allotted will be subject to forfeiture to the United States. The terms o f the offering are set forth in Treasury Department Circular No. 8-76, Public Debt Series, dated March 12, 1976, a copy o f which is printed on the following pages. If payment for the notes is made by check, the check should be a certified personal check or an official bank check, payable on its face to the Federal Reserve Bank o f N ew York; w;7/ no? ^ Telephone inquiries regarding this offering may be made by calling Telephone N o. 212-791-5823, 212791-6616, or 212-791-5465. PA U L A . VOLCKER, 2 FORM NA IMPORTANT—Closing time for receipt of this tender is 1:30 p.m., Thursday, March 18, 1976. T E N D E R F O R T R E A S U R Y N O T E S O F S E R IE S K -1978 D a ted M arch 31, 1976 D u e M a rch 3 1 , 1978 F ederal R eserve Bank of N ew Y ork, Fiscal Agent o f the United States, New York, N. Y. 10045 Dated a t........................................................... .................................................................. 19 _ / Pursuant to the provisions o f Treasury Department Circular No. 8-76, Public Debt Series, dated March 12, 1976, the undersigned hereby offers to purchase United States o f America Treasury Notes o f Series K-1978 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 uo not jiu 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 o f accepted competitive bids. (Not to exceed $500,000 for one bidder through all sources) (Yield must be expressed with not more than two )lac for example, 7.11) decimal places, 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): P ie ce s D en om in ation $ M aturity value 5,000 10.000 100,000 □ 1. D e liv e r o v er the cou n ter to the under signed □ 2. Sh ip to the undersigned □ 3. H old in safek eep in g (for m em ber bank on ly) in — □ In vestm en t A cco u n t □ G en eral A cco u n t □ T rust A cco u n t U 1.000.000 ' and L ^ n A c c o u n t' ' reaSUry ' a ’‘ Paym ent will be m ade as follows: □ By charge to our reserve account □ By cash or check in immediately avail able funds □ By surrender o f maturing securities as indicated in official circular D V S^ ial * « ■ « * » » • (No changes in delivery instructions will be accepted) T otals * The undersigned certifies that the allotted securities will be owned solely by the undersigned. ( If a commercial bank or dealer is subscribing for its own account or for account of customers, the following certifications are made a part of this tender.) W e H ereby C e r t ify 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 o f deposits stipulated in the official offering circular. W e F u r t h e r C e r t ify 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. (Name of subscriber—please print 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) (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) INSTRUCTIONS: 1. No tender for less than $5,000 will be considered; and each tender must be for a 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 at the same yield 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 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 “ : •• ••••....-,v........................................... - a copartnership, by............................................................................................................. ... 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 which the United States holds membership, foreign central banks and foreign States, 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, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of the securities applied for. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect that, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. UNITED STATES OF AMERICA TREASURY NOTES OF SERIES K-1978 Dated and bearing interest from March 31, 1976 Due March 31, 1978 DEPARTMENT OF THE TREASURY, Office of the Secretary, DEPARTMENT CIRCULAR Public Debt Series—No. 8-76 m&y/HHgroM, 1. INVITATION FOR TENDERS and $1,000,000. Book-entry notes will be available to eligible bidders in multiples of those amounts. Inter changes of notes of different denominations and of coupon and registered notes, and the transfer of regis tered notes will be permitted. 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites tenders on a yield basis for $3,000,000,000, or thereabouts, of notes of the United States, designated Treasury Notes of Series K-1978. The interest rate for the notes will be determined 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 Government accounts and to Federal Reserve Banks for themselves and as agents of foreign and inter national monetary authorities. Tenders will be received up to 1:30 p.m., Eastern Standard time, Thursday, March 18, 1976, under competitive and noncompetitive bidding, as set forth in Section III hereof. The 8 percent Treasury Notes of Series H-1976, maturing March 31, 1976, will be accepted at par in payment, in whole or in part, to the extent tenders are allotted by the Treasury. 5. The notes will be subject to the general regulations of the Department of the Treasury, now or hereafter prescribed, governing United States notes. III. TENDERS AND ALLOTMENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D. C. 20226, up to the closing hour, 1:30 p.m., Eastern Standard time, Thursday, March 18, 1976. Each tender must state the face amount of notes bid for, which must be $5,000 or a multiple thereof, and the yield desired, except that in the case of noncompeti tive tenders the term "noncompetitive" should be used in lieu of a yield. In the case of competitive tenders, the yield must be expressed in terms of an annual yield, with two decimals, e.g., 7.11. Fractions may not be used. Noncompetitive tenders from any one bidder may not exceed $500,000. II. DESCRIPTION OF NOTES 1. The notes will be dated March 31, 1976, and will bear interest from that date, payable semiannually on September 30, 1976, March 31, 1977, September 30, 1977 and March 31, 1978. They will mature March 31, 1978, and will not be subject to call for redemption prior to maturity. 2. Commercial banks, which for this purpose are defined as banks accepting demand deposits, and deal ers who make primary markets in Government secu rities 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 banking institutions for their own account, Federallyinsured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds membership, foreign centra! banks and foreign States, dealers who make primary markets in Government 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, whether 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 payment of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations of $5,000, $10,000, $100,000 72, 7976. 3 securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment (in cash or the notes referred to in Section I, which will be accepted at par) of 5 percent of the face amount of notes applied for. 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 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 $3,000,000,000 of notes offered, 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 Wednesday, March 31, 1976, at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt, Washington, D. C. 20226. Payment must be in cash, 8 percent Treasury Notes of Series H-1976 (interest cou pons dated March 31, 1976, should be detached), in other funds immediately available to the Treasury by March 31, 1976, or by check drawn to the order of 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) Thursday, March 25, 1976, 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) Tuesday, March 23, 1976, 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 4 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. When payment is made with notes, a cash adjustment will be made to or required of the bidder for any difference between the face amount of notes submitted and the amount payable on the notes allotted. V. ASSIGNMENT OF REGISTERED NOTES 1. Registered notes tendered as deposits and in payment for notes allotted hereunder are not required to be assigned if the notes are to be registered in the same names and forms as appear in the registrations or assignments of the notes surrendered. Specific instruc tions for the issuance and delivery of the notes, signed by the owner or his authorized representative, must accompany the notes presented. Otherwise, the notes should be assigned by the registered payees or assignees thereof in accordance with the general regulations gov erning United States securities, as hereinafter set forth. When the new notes are to be registered in names and forms different from those in the inscriptions or assign ments of the notes presented the assignment should be to "The Secretary of the Treasury for Treasury Notes of Series K-1978 in the name of (name and taxpayer identifying num ber)". If notes in coupon form are desired, the assignment should be to "The Secretary of the Treasury for coupon Treasury Notes of Series K1978 to be delivered to ............................................... " Notes tendered in payment should be surrendered to the Federal Reserve Bank or Branch or to the Bureau of the Public Debt, Washington, D.C. 20226. The notes must be delivered at the expense and risk of the holder. VI. 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,