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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 7839 March 17, 1976 AUCTION OF $2.5 BILLION OF TREASURY NOTES 7b /l// Ran/hng /H^nrur/ofM, an<7 Concerned, if! D/yrric/.' The following statement was issued March 16 by the Treasury Department: The Department of the Treasury will auction $2.5 billion of 4-year 10'/2-month notes to raise new cash. Additional amounts of the notes may be issued to Federal Reserve Banks as agents of foreign and international monetary authorities at the average price of accepted tenders. The notes now being offered will be Treasury Notes of Series E-1981 dated April 5, 1976, due February 15, 1981 (CUSIP No. 912827 FM9) with interest payable on August 15, 1976, and thereafter on February 15 and August 15. The coupon rate will be determined after tenders are allotted. The notes will be issued in registered and bearer form in denominations of $1,000, $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 must be made on April 5, 1976. Payment may not be made through tax and loan accounts. Tenders will be received up to 1:30 p.m., Eastern Standard time, Wednesday, March 24, 1976, at any Federal Reserve Bank or Branch and at the Bureau of 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 Tuesday, March 23. Each tender must be in the amount of $1,000 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 "TENDER FOR TREASURY NOTES" should be printed at the bottom of envelopes in which tenders are submitted. Competitive tenders must be expressed in terms of annual yield in two decimal places, e.g., 7.11, and not in terms of 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 % of 1 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 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 of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. Tenders at a yield that will produce a price less than 99.001 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, noncompetitive tenders for $500,000 or less will be accepted in full at the average price of accepted competitive tenders, which price will be 100.000 or less. 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 of New York their positions with respect to Government securities and borrowings thereon, may submit tenders for the 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 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, 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 And it necessary to submit full payment 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. Payment for accepted tenders must be completed on or before Monday, April 5, 1976, at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt in cash, in other funds immediately available to the Treasury by April 5, 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) Wednesday, March 31, 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) Monday, March 29, 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. 9-76, Public Debt Series, dated March 17, 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; fo fAts .Ran/: 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 UNITED STATES OF AMERICA TREASURY NOTES OF SERIES E-1981 Dated and bearing interest from Apri! 5. 1976 Due February 15, 1981 D E PA R T M E N T O F TH E T R E A SU R Y , Office o f the Secretary, DEPARTMENT C!RCULAR t'uhtit Hehl Series —l\o. 9-76 Afarc/? 77, 7976. 1. INVITATION FOR TENDERS 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 $2,500,000,000, or thereabouts, of notes of the United States, designated Treasury Notes of Series E-f98I. 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, Wednesday, March 24, 1976, under competitive and noncompetitive bidding, as set forth in Section III hereof. 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, Wednesday, March 24, 1976. Each tender must state the face amount of notes bid for, which must be $1,000 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. 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 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 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 II. DESCRIPTION OF NOTES 1. The notes will be dated April 5, 1976, and will bear interest from that date, payable on a semiannual basis on August 15, 1976, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1981, and will not be subject to call for redemption prior to maturity. 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 $1,000, $5,000, $10,000, $100,000 and $1,000,000. Book-entry notes will be available to eligible bidders in multiples of those amounts. Interchanges of notes of different denomina tions and of coupon and registered notes, and the transfer of registered notes will be permitted. 3 at the Treasury no later than: (1) Wednesday, March 31, 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) Monday, March 29, 1976, if the check is drawn on a bank in another district. Checks received after the dates set forth in the pre ceding 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 num ber as required on tax returns and other documents submitted to the Internal Revenue Service (an individ ual's social security number or an employer identi fication 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. 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 14 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 $2,500,000,000 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 April 5, 1976, at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt. Payment must be in cash, in other funds immediately available to the Trea sury by April 5, 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 4 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, q/* /Ac FORM NA IMPORTANT—Ciosing lime for receipt of this tender is 1:30 p.m., Wednesday, March 24, 1976. TENDER FOR TREASURY NOTES OF SERIES E-1981 Dated April 5, 1976 Due February 15, 1981 Dated at. FEDERAL RESERVE BANK OF N EW YORK, Fiscal Agent of the United States, New York, N. Y. 10045 ., 19 Pursuant to the provisions of Treasury Department Circular No. 9-76, Public Debt Series, dated March 17, 1976, the undersigned hereby offers to purchase United States of America Treasury Notes of Series E-1981 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. 13 -c 3 g S ^ t/S 3 § *3 5 V) .2 V G 2 g-S S H.Bt-, *c JS K o G .5 ^ " o M COMPETITIVE TENDER D o no? /i/7 /n Twf/! compe/Mve an J MyncompeM/ve ?ent7er.r on one /o r w NONCOMPETITIVE TENDER $ ......................................................... (maturity value) or any lesser amount that may be awarded. $ ......................................................... (maturity value) Yield: ........... at the average price of accepted competitive bids. (TVof fo exceed 3300,000 / o r one 7)/&7er /TtroagT: a/7 MMreey) PRIVACY ACT S T A T E M E N T (De7<7 mu,?? & fxprM icJ wifT, no? wore fTmn fwo Jeetw o/ p/aces, /o r exawp/e, 7.77) ^ -s o2 *G S TcS & <,_, G H S 60 = = s 2 *-c ^ ^ " Z JD c 3 3 2-3 3 -S 5 E c -g Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and on the reverse side (if securities are desired, please also complete schedule on reverse side): P ie ce s D en o m in a tio n $ 1,0 0 0 3 ,0 0 0 1 0 ,0 0 0 1 0 0 ,0 0 0 2 S g ^ Q= 1 ,0 0 0 ,0 0 0 S *3 -a -o T o ta ls -5 M aturity vafue c c -g 23 sc *5 g ^ c S 2 ,3 ^ K .S3 os D !. D efiver ov er the counter to the undersigned O 2. Ship to the undersigned D 3. H otd in safekeep ing (for m em ber bank onfy) in — D fn vestm en t A cco u n t O G en era) A ccou nt O T rust A ccou n t O 4. H ofd as coffatera) for T reasury T ax and Loan A ccou nt* Paym ent wiff be m ade as foffows: D By charge to our reserve account D By cash or check in imweJtafeTy ava/7aMe /awTs n t ° ^ c , Spec,at m stru ct.on s. (7V<; <7,nn#e.t in <7e//tery WAfrorOo/n „ ,7/ /?f o< ( e p /eJ ) * The undersigned certifies that the affotted securities wiff be ow ned sofefy by the undersigned. ( I f a commercia! bank or deafer is subscribing for its own account or for account o f customers, the foffowing certifications are m ade a part o f this tender.) e -o ^ 3 W E HEREBY CERTIFY 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 *5 -a holding for the Treasury or we guarantee payment to the Treasury of deposits stipulated in the official offering 3Tcircular. C ^ W E FURTHER CERTIFY that tenders received by us, if any, from other commercial banks for their own a o .S 13 account and for the account o f their customers have been entered with us under the same conditions, s <" g g 3 .2 o *3 agreements, and certifications as set forth in this form. *S S e .5 3 o 3 M2 cr §C 5 2 3 V^ 5 2 -a ^ G 13 3) ^ 2 t< g .2 ^ n. ( Name o f subscriber p'ease print or type) *2 *E o 7. 3 S 2 *o e ^ 2 <L, -c 13 2 G g. 3 2G ^ G " o c 2" = 3 S ^ 3 G <y) C O g ^ 5 53 *g S G G W Insert fMi ffnJfr wt spfe/a/ fnvf/opf /warAfJ (A d d ress-m d . City and State) (Tet. No.) "7<fFM%fr/or 7rf<M*My /Voff$ or RowJs " (B anking institutions subm itting tenders for custom er account must fist customers' nam es on fines befow or on an attached rider) IN STR U C TIO N S: f. N o tender for fess than than S f,0 0 0 wiff be considered; and each tender must be for a muftipfe o f $ f,0 0 0 (m aturity vafue). 2. Onfy banking institutions, and deafers w ho m ake primary markets in G overnm ent securities and report daify to this Bank their positions with respect to G overnm ent securities and borrowings thereon, may subm it tenders for custom er account; in doing so, they may consofidate com petitive tenders or r/,e M/wey/e7</ and m ay consofidate noncom petitive tenders, provided a fist is attached show ing the nam e o f each bidder and the am ount bid for his account. Others wiff not be permitted to subm it tenders except for their ow n account. 3. If the person making the tender is a corporation, the tender shoufd be signed by an ofheer o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation wilf be construed as a representation by him that he has been so authorized. If the tender is m ade by a partnership, it shoufd be signed by a m em ber o f the firm, who shoufd sign in the form " ........................................................................... a copartnership, b y ................................................................................................................................. . a m ember o f the firm." 4. Tenders wiff be received without deposit from com merciaf and other banks for their own account, federaffy-insured savings and foan associations, States, pofiticaf subdivisions or instrumentafities thereof, pubfic pension and retirement and other pubfic funds, international organizations in which the U nited States hofds m em bership, foreign centra! banks and foreign States, deafers w h o m ake primary markets in G overnm ent securities and report daify to the Federaf Reserve Bank o f N e w York their positions with respect to G overnm ent securities and borrowings thereon, and G overnm ent accounts. Tenders from others must be accom panied by paym ent o f 5 percent o f the face am ount o f the securities appfied for. Aff checks must be drawn to the order o f the Federaf Reserve Bank o f N e w York; checks endorsed to this Bank wiff not be accepted. 5. If the fanguage o f this tender is changed in any respect that, in the opinion o f the Secretary o f the Treasury, is materiaf, the tender may be disregarded.
@FedFRASER