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FEDERAL RE SERVE BANK
OF NEW YORK
Fiscal Agent of the United States

Circular No. 7918
July 15, 1976

AUCTION OF $2.75 BILLION OF 2-YEAR TREASURY NOTES
To A ll Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued yesterday by the Treasury Department:
The Department of the Treasury will auction $2,750 million of 2-year 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 ot Series P-1978 dated July 30, 1976, due July 31, 1978
(CUSIP No. 912827 FU 1) with interest payable on a semiannual basis on January 31, 1977, July 31, 1977,
January 31, 1978 and July 31, 1978. The coupon rate will be determined after tenders are allotted. They 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.
Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, July 20, 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 July 19. Each tender 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 noncompeti­
tive 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 1/8 of one percent increment that translates into an average accepted price close to
100.000 and a lowest accepted price above 99.500. 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 competi­
tive 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 ot 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.
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 tor
$500,000 or less, 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 ot 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.




(Over)

Tenders will be received without deposit from commercial and other banks 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 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 accom­
panied 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 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 Friday, July 30, 1976. Payment must be in
cash, 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) Tuesday, July 27,
1976, if the cheek 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) Friday, July 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 official terms of the offering are set forth in Treasury Department Circular No. 17-76, Public
Debt Series, dated July 15, 1976, a copy of which will be furnished upon request.

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 of New York; checks endorsed to this
Bank will not be accepted.
Telephone inquires regarding this offering may be made by calling Telephone No. 212-791-5823.
212-791-6616, or 212-791-5465.




PAUL A. VOLCKER,
President.

,:4

UNITED STATES OF AMERICA
TREASURY NOTES OF SERIES P-1978
Dated and bearing interest from July 30,1976

DEPARTMENT CIRCULAR
Public Debt Series-No. 17-76

Due July 31,1978

DEPARTMENT OF THE TREASURY,
Office of the Secretary,
W ashington , July 15, 1976.

I. 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 $2,750,000,000, or
thereabouts, of notes of the United States, designated
Treasury Notes of Series P-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 international
monetary authorities. Tenders will be received up to 1:30
p.m., Eastern Daylight Saving time, Tuesday, July 20,
1976, under competitive and noncompetitive bidding, as
set forth in Section III hereof.
II. DESCRIPTION OF NOTES

1. The notes will be dated July 30, 1976, and will bear
interest from that date, payable on a semiannual basis on
January 31, 1977, July 31, 1977, January 31, 1978. and
July 31, 1978. They will mature July 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
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 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 Daylight Saving time, Tuesday, July 20,
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 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. Noncom­
petitive 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
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.
(O ver)

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 com­
petitive 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. Tenders
at the highest accepted yield will be prorated if necessary.
After the determination is made as to which tenders are
accepted, a coupon rate will be determined at a 1/8 of
one percent increment that translates into an average
accepted price close to 100.000 and a lowest accepted
price above 99.500. 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 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,
including the right to accept tenders for more or less than
the $2,750,000,000 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 l (in three decimals) of accepted
competitive tenders.

the tender is submitted to it, which must be received at
such Bank or at the Treasury no later than: (1) Tuesday,
July 27, 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) Friday, July 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 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 descretion,
be forfeited to the United States.
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
IV. PAYMENT
from time to time, prescribe supplemental or amend­
1.
Settlement for accepted tenders in accordance with atory rules and regulations governing the offering which
the bids must be made or completed on or before July 30,
will be communicated promptly to the Federal Reserve
1976, at the Federal Reserve Bank or Branch or at the
Banks.
Bureau of the Public Debt, Washington, D.C. 20226.
Payment must be in cash, in other funds immediately
available to the Treasury by July 30, 1976, or by check
GEORGE H. DIXON,
drawn to the order of the Federal Reserve Bank to which
Acting Secretary o f the Treasury.
the tender is submitted or the United States Treasury if
1Average price may be at, or more or less than 100.000.




IMPORTANT— Closing time for receipt of this tender is 1 :30 p.m., Tuesday, July 20, 1976.
TENDER FOR TREASURY NOTES OF SERIES P-1978
Dated July 30, 1976
F ed era l R eserve B a n k

Due July 31, 1978
of

N

ew

Y

Dated at..............................................

ork,

Fiscal Agent of the United States,
Xew York, N. Y. 10045

....................................................... .19-------

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 num bers; 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.

The undersigned hereby offers to purchase United States of America Treasury Notes of Series P-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

Do not fill in both Competitive and
Noncompetitive tenders on one form

$....................................................... (maturity value)
or any lesser amount that may be awarded.
Yield: ...............

NONCOMPETITIVE TENDER

$....................................................... (maturity value)
(Not to exceed $500,000 for one bidder through all sources)

at the average price of accepted competitive bids.

(Yield must be expressed with not more than two
decimal places, for example, 7.11)

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 c e s

D e n o m in a tio n s

M a tu r ity v alu e

□

1. D e liv e r o v e r th e c o u n te r to th e
u n d e rs ig n e d

5,000

□

2. S h ip to th e u n d e rs ig n e d

□

$

3. H o ld in sa fe k e e p in g ( f o r m em b e r
b a n k o n ly ) in—
□ In v e s tm e n t A c c o u n t
□ G e n e ra l A c c o u n t
□ T ru s t A ccount

10,000
100,000
1,000,000

□

P a y m e n t w ill be m ad e a s f o l lo w s :
□
B y c h a rg e to o u r re s e rv e a c c o u n t
□
B y c a s h o r ch ec k in immediately avail­

able funds
□

5. S p e c ia l in stru c tio n s.

4. H o ld a s c o lla te ra l fo r T r e a s u r y
T a x a n d L o a n A c co u n t*

(No changes on delivery instructions
will be accepted)
T o ta ls

*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 e r e b y C e r t if y 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 of deposits stipulated in the official offering
circular.
W e F urther C ertify 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, agree­
ments, and certifications as set forth in this form.

( N a m e of s u b s c r ib e r — p le ase p r i n t or ty p e )

Insert this tender in
special envelope marked
“ Tender for Treasury
Notes or Bonds”

(T el. N o.)

( A d d r e s s — in c l. C i t y a n d S t a t e )

( S ig n a t u r e of subscriber or authorized s ig n atu re)

(T itle of au th o rized sig n er)

(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)

.......................................................( N a m e ' W C u s t o m e r ) .......................................................

<N a m e o f C u s t o m e r )

IN S T R U C T IO N S :
1. No tender for less than $5,000 will lie 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 t the sa m e y ie ld 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. All checks must be drawn to the order ot 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.
[Enc. Cir. No. 7918]