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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States No. 7904 [ Circular June 28, 1976 OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated April 8, 1976, Due October 7, 1976 (To Be Issued July 8, 1976) $3,500,000,000 of 182-Day Bills, dated July 8, 1976, Due January 6, 1977 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department, released 4 p.m., Friday, June 25 : The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $6,000 million, or thereabouts, to be issued July 8, 1976, as follows: 91-day bills (to maturity date) in the amount of $2,500 million, or thereabouts, representing an additional amount of bills dated April 8, 1976, and to mature October 7, 1976 (C U SIP No. 912793 B47), originally issued in the amount of $3,501 million, the additional and original bills to be freely interchangeable. 182-day bills for $3,500 million, or thereabouts, to be dated July 8, 1976, and to mature January 6, 1977 (C U SIP No. 912793 D86). The bills will be issued for cash and in exchange for Treasury bills maturing July 8, 1976, outstanding in the amount of $6,200 million, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,653 million. These accounts may exchange bills they hold for the bills now being offered at the average prices of accepted tenders. The bills of both series 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 book-entry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Friday, July 2, 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. 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 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 each issue 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 competi tive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 8, 1976, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 8, 1976. Cash and exchange tenders will receive equal treatment. Cash adjustments 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 Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed 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 difference 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 prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Friday, July 2, 1976, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked “Tender for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con firmation; no tenders may be submitted by telephone. Payment for Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. The results of bidding for the previous offering of Treasury bills, to be issued July 1, 1976, were not available at the time of printing this circular; those results will be announced after release by the Treasury Department. r 1 P a u l A. V o l c k e r , l28j President. Closing date for receipt of tenders is Friday, July 2. IMPORTANT-Closing date for receipt of this tender is Friday, July 2, 1976 TENDER FOR 91-DAY TREASURY BILLS Additional Amount, Se r ie s Dated April 8, 1976, Maturing October 7, 1976 * oij-i i i : 1 ne maiviauai laentinaDie intormation required on this form is necessary to permit the tender to be processed and the bills to be issued, in accordance with the General Regulations governing United States securities (Department Circular No. 300) and the Regulations governing Treasury Bills (Department Circular No. 418). The transaction will not be completed unless all required data is furnished. (To Re Issued July 8, 1976) To F ederal R eserve B a n k of N ew Y o rk , Fiscal Agent of the United States Dated at 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 not fill in both Competitive and N on com petitive tenders on one form COMPETITIVE TENDER $....................................................... (maturity value) or any lesser amount that may be awarded. Price: ..................................................per 100. (P rice m ust be expressed w ith not more than three NONCOMPETITIVE TENDER $........................................................ (maturity value) (Not to exceed $500,000 for one bidder through all sources) at the average price of accepted competitive bids, decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 □ 3. Hold in safekeeping (for mem ber bank only) in— 50,000 100,000 □ Investment Account I~1 General Account 500,000 □ Trust Account 1,000,000 Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery (Payment cannot be made through T reasury T a x and Loan Account) □ 5. Special instruction*: □ 4. Allotment transfer (see list attached) ( N o changes in delivery instructions w ill be accepted) 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. (N am e of subscriber— please p rin t or type) Insert this tender (A ddress— incl. C ity and S tate) in special en velo p e marked “ Tender for Treasury B ills ” (T el. N o.) (S ig n atu re of subscriber or authorized signature) (T itle 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 S T R U C T IO N S : 1. No tender for less than $10,000 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 price 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 he signed by an officer of the corporation authorized to make the tender, and the Agoing 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 ".................................. ............................................................... , a copartnership, by .................................................. ......................................... , a member of the firm.” 4. Tenders will be received without deposit from incorporated bank.-, and trust companies and from responsible and recognized dealers in investment securities. Tenders from other.-, must be accompanied by payment of 2 percent of the face amount of I reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment bv an incorporated bank o r trust company. 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. a. If the language of this tender is changed in any respect, which, in the ouinion of the S e c retary of the Treasury, is material, the tender may be disregarded. Rev. 3/76 [ 28 I IMPORTANT-Closing date for receipt of this tender is Friday. July 2, 1976 TENDER FOR 182-DAY TREASURY RILLS Maturing January 6, 1977 Dated July 8, 1976 To F ederal R eserve B a n k of N ew Y Dated a t ...................................................... .......................................................... 19— ork, Fiscal Agent of the United States o'cS 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. £JQ£tn rt V V X u Ijf COMPETITIVE TENDER 11 al Do not fill in both Competitive and Noncompetitive tenders on one form SW Eg 4 f i $........................................................(maturity value) or any lesser amount that may be awarded. $........................................................(maturity value) Price: .................................................. per 100. at the average price of accepted competitive bids. (Price must be expressed with not more than three decimal places, for example, 99,925) <U (Not to exceed $500,000 for one bidder through all sources) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: *1 Pieces sS Denomination $ Maturity value 10,000 15,000 (Si NONCOMPETITIVE TENDER O * 8p' Bu . 50,000 100,000 500,000 1,000,000 Totals □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery □ 3. Hold in safekeeping (for mem ber bank only) in— (Payment cannot be made through Treasury Tax and Loan Account) □ 5. Special instructions: □ General Account □ Trust Account □ 4. Allotment transfer (see list attached) (No changes in delivery instructions will be accepted) 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. (Name of »ub*criber—-pleaze print or tjrpe) Insert this tender in special envelope marked “Tender for Treasury Bills” (Addreu— incl. City and State) (fri. No. j........ (Sifnature of aubacriber or authorized aignature) (Title of authorized signer j (Banking institutions submitting tenders for customer account must list customers names on lines below or on an attached rider) .........................................(Name of customer)......................................... (Nwne * curt0,Ber> INSTRUCTIONS: 1. No tender for less than $10,000 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 price 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 signedby a member of the firm, who should sign in the form “.......................•;••••.... ....... .. ....................................................... a copartnership, y ...................... . a member ot 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 ot the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty ot payment by an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank ot wew York; 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. [ 28 ] Rtt. 3/76
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