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F E D E R A L RESERVE B A N K OF N E W YORK Fiscal Agent of the United States TCircutar No. 78741 May 14, )976 AUCTION OF $2.25 BILLION OF TREASURY NOTES 7c /l// RonA/ng #n<7 O/Acrj Concern^, //! t/ic Rawvc The following statements were issued May 13 by the Treasury Department: TREASURY ANNOUNCES SALE OF 2-YEAR NOTES AND 52-WEEK BILLS The Department of the Treasury announced today that it will sell to the public $2.25 billion of two-year notes to mature May 31, 1978. The notes will be sold at a yield auction on Wednesday, May 19, for settlement Tuesday, June 1. Monday, May 31, is a Federal holiday. The proceeds will be used to retire $1.5 billion of maturing notes held by the public and to raise $750 million new cash. The Treasury indicated that it expects to offer, on or about May 18, $2.9 billion of 52-week bills maturing May 31, 1977. The proceeds will be used to retire $2.4 billion of 52-week bills maturing June 1, 1976, and to raise $500 million new cash. The Treasury also said that it would announce its plans with respect to a possible note issue in the fouryear intermediate maturity area sufficiently prior to the two-year note auction on May 19, so that the market would be fully informed of these plans prior to the auction. TREASURY TO AUCTION $2.25 BILLION OF 2-YEAR NOTES The Department of the Treasury will auction $2.25 billion of 2-year notes to refund $1.5 billion of notes held by the public maturing May 31, 1976, and to raise $750 million of new cash. Additional amounts of the notes may be issued to Government Accounts and Federal Reserve Banks for their own account in exchange for $0.1 billion of maturing notes held by them, and to Federal Reserve Banks as agents of foreign and international monetary authorities for new cash only. The notes now being offered will be Treasury Notes of Series M-1978 dated June 1, 1976, due May 31, . 1978 (CUSIP No. 912827 FQ 0) with interest payable on a semiannual basis on November 30, 1976, May 31, 1977, November 30, 1977, and May 31, 1978. The coupon rate will be determined after tenders are allotted. The notes will be issued in registered and bearer form in denominations of $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 Daylight Saving time, Wednesday, May 19, 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 May 18. Tenders must be in the amount of $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 "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 rate will be determined at a 14 of one percent increment that translates into an average accepted price close to 100.000 and a lowest accepted price above 99.750. That rate of interest 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. Noncompetitive bidders will be required to pay the average price of accepted tenders. BIDDERS SUBMITTING NONCOMPETITIVE TENDERS SHOULD REALIZE THAT IT IS POSSIBLE THAT THE AVERAGE PRICE MAY BE ABOVE PAR, IN WHICH CASE THEY WOULD HAVE TO PAY MORE THAN THE FACE VALUE FOR THE NOTES. ( OVER) 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, and all tenders from Government accounts and the Federal Reserve Banks for themselves and as agents of foreign and international monetary authorities, will be accepted in full at the average price of 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 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 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 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 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 Tuesday, June 1, 1976. Payment must be in cash, 6% Treasury Notes of Series M-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) Wednesday, May 26, 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, May 24, 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 term s o f the offering are set forth in T reasury D epartm ent Circular No. 13-76, Public D ebt Series, dated M ay 14, 1976, a copy o f which will be furnished upon request. if paym ent for the notes is m ade 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; ^ /AT? Faa/r w;V/ no; a c c e p t. T elephone inquiries regarding this offering m ay be m ade by calling T elephone No. 212-791-5823, 212-791-6616, or 212-791-5465. PAUL A . VOLCKER, PrayfVcftL UNITED STATES OF AMERICA TREASURY NOTES OF SERIES M-1978 Dated and bearing interest from June i, 1976 D E P A R T M E N T C IR C U L A R P u b lic D e b t S e r ie s —N o. 13 -7 6 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 $2,250,000,000, or thereabouts, of notes of the United States, designated Treasury Notes of Series M-1978. The interest rate for the notes will be determined as set forth in Section HI. paragraph 3. hereof. Additional amounts of these notes may be issued at the average price of accepted tenders to Government accounts and to Federa! Reserve Banks for themselves and as agents of foreign and international monetary authorities. Tenders will be received up to 1:30 p.m.. Eastern Daylight Saving time. Wednesday, May 19. 1976, under competitive and noncompetitive bidding, as set forth in Section HI hereof. The 6 percent Treasury Notes of Series M-1976 maturing May 31, 1976, will be accepted at par in payment, in whole or in part, to the extent tenders are allotted by the Treasury. II. DESCRIPTION OF NOTES 1. The notes will be dated June 1, 1976, and will bear interest from that date, payable on a semiannual basis on November 30, 1976, May 31, 1977, November 30. 1977, and May 31, 1978. They will mature May 31, 1978, 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 $5,000, $10,000, $100,000 and $1,000,000. Book-entry notes will be available to eligible bidders in multiples of those amounts. Inter Due May 3 i, 1978 DEPARTMENT OF THE TREASURY. Office of the Secretary, Washington, May 14, 1976. changes of notes of different denominations and of coupon and registered notes, and the transfer of regis tered notes will be permitted. 5. The notes will be subject to the general regulations of the Department of the Treasury, now or hereafter pre scribed. governing United States notes. III. TENDERS AND ALLOTMENTS 1. Tenders will be received at Federa! 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 Daylight Saving time, Wednesday, May 19. 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 noncom petitive 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 annua! 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 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 securi ties 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 member ship. foreign centra! 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 securi ties and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment (Over) (in cash or the notes referred to in Section I which wil! be accepted at par) of 5 percent of the face amount of notes appiied for. 3. immediate))' after the dosing hour tenders wiil be opened. following which pub)ic announcement wi!) be made by the Department of the Treasury of the amount and yield range of accepted bids. Those submitting com petitive tenders wi!) be advised of the acceptance or re jection thereof. )n considering the acceptance of tenders, those with the )owest yieids wil) be accepted to the extent required to attain the amount offered. Tenders at the highest accepted yield wi!) be prorated if necessary. After the determination is made as to which tenders are accepted, an interest rate wi)) be determined at a )/8 of one percent increment that translates into an average accepted price dose to !00.000 and a lowest accepted price above 99.750. That rate of interest wi)! 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 be required to pay the price corresponding to the yield bid. Price calcu lations will be carried to three decimal places on the basis of price per hundred, e.g., 99.923. and the determina tions 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, in cluding the right to accept tenders for more or less than the $2,250,000,000 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 Tuesday. June 1. 1976, at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt. Payment must be in cash, notes referred to in Section 1 (interest coupons dated May 31. 1976. should be detached), in other funds immediately available to the Treasury by June 1. 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) Wednesday. May 26, 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. May 24. 1976, if the check is drawn on a bank in another district. Checks received after the dates set forth in the preceding sentence wil! not be accepted unless they are payable at a Federal Reserve Bank. Pay ment will not be deemed to have been completed where registered notes are requested if the appropriate identify ! Average price may be at. or more or iess than 100.000. ing number as required on tax returns and other docu ments submitted to the Interna! 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 adjust ment 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 pay ment 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 assign ments of the notes surrendered. Specific instructions for the issuance and delivery of the notes, signed by the ow ner 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 governing 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 assignments of the notes presented the assignment should be to "The Secretary of the Treasury for Treasury Notes of Series M-1978 in the name of (name and taxpayer identifying number)." If notes in coupon form are desired, the as signment should be to "The Secretary of the Treasury for coupon Treasury Notes of Series M-1978 to be delivered t o ..............................................." Notes tendered in pay ment should be surrendered to the Federal Reserve Bank or Branch or to the Bureau of the Public Debt, Washing ton. 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 defini tive notes. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amend atory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve Banks. GEORGE H. DIXON, A cftug Secretary o /fA e Treasury. FORM NA IM PORTANT—Closing time for receipt of this tender is 1:30 p.m., Wednesday, May 19, 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 M -1 9 7 8 D a ted Ju n e 1, 1976 D u e M a y 31, 1978 Dated at....................................................... FEDERAL RESERVE BANK OF N E W YORK, Fiscal Agent o f the United States, New York, N. Y. 10045 ................................................................ . 1 9 _ The undersigned hereby ohers to purchase United States o f America Treasury Notes o f Series M-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. The individually identifiable information required on this form is necessary to permit the subscription to be processed and the securities to be issued. If registered securities are requested, the regulations governing United States securities ( Department Circular No. 300) and the offering circular require submission of social security numbers; the numbers and other information are used in inscribing the securities and establishing and servicing the ownership and interest records. The transaction will not be completed unless all required data is furnished. PmVACY ACT STATEMENT COMPETITIVE TENDER Do no? / / / /n horh compenhvf an<7 JVoncompehNvf /enters on one /orn? $ ............................................................. (maturity value) or any lesser amount that may be awarded. Yield: ........... NONCOMPETITIVE TENDER $ .............................................................(maturity value) (Not to exceed #300,000 /o r one h;&7er through a// sources) at the average price o f accepted competitive bids. ( Tie&f mas/ he expre^erf tv/ih no? wore than two rfec/wa/ p/ace^, /o r exawp/e, 7.77) 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): Pieces Denomination $ Maturity value 5,000 10,000 100,000 1,000,000 Totals n 1. Deliver over the counter to the un dersigned D 2. Ship to the undersigned D 3. Hold in safekeeping (for member bank only) in — O Investment Account D General Account D Trust Account D 4. Hold as collateral for Treasury Tax and Loan Account* (No r/tnnges in <7e/aerv /nstrart/ons tt/// he arr epfeJ) Payment will be made as follows: D By charge to our reserve account O By cash or check in imfueJiafe/y avai/ah/e I T By surrender of maturing securities r-i t ° c - , . _ Special instructions. * 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.) WE 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 o f 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 oHicial offering circular. WE FURTHER CERTIFY that tenders received by us, if any, from other commercial banks for their own account and for the account o f their customers have been entered with us under the same conditions, agreements, and certifications as set forth in this form. ( N dtnt of subsenber /w sfrf fMs te n d er /n pteast print or type) ( A d d ress-,n d C.ty and State) (Te) No.) / o r T reasury TVafes ar #a*M%s" ............ (Institutions submitting tenders for customer account must list customers' names on lines below or on an attached rider) 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 a/ the .rameyfe/rf 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. 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. AH checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 4. 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. (Ent. Cir. No. 7874]
@FedFRASER