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FE D E R A L R ESER VE BANK O F N E W YORK Fiscal Agent of the United States Circular No. 7937~| A u g u s t 13, 1976 I TREASURY TO AUCTION 2-YEAR NOTES To A ll Hanking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued today by the Treasury Department: The D epartm ent o f the Treasury will auction $2,5(X) m illion o f 2-year notes to refund $1,443 million o f notes held by the public m aturing August 31, 1976, and to raise $1,057 m illion o f new m oney. Additional am ounts of these notes m ay be issued at the average price o f accepted tenders to Government accounts and to Federal Reserve Banks for themselves in exch an ge for $219 million o f m aturing Treasury securities held by them and as agents of foreign and international m onetary authorities for new cash only. Printed on the reverse side is a table summarizing the highlights of the offering. Copies of the official offering circular will be furnished upon request. Bidders submitting noncompetitive tenders tor the notes 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 securities. 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. If there is any doubt that tenders sent by mail will reach this Bank or its Branch by August 19, bidders should use other means of transmitting their tenders. The tender form will be mailed to you as soon as possible. Telephone inquiries regarding this offering may be made by calling Telephone No. 212-791-5823 212-791-6616, or 212-791-5465. PAUL A. VOLCKER, President. HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF 2-YEAR NOTES (SERIES Q-1978) Amount Offered: $2,500 m illion T o the public Description of Security: Term and type o f security .............. 2-year notes M aturity date A ugust 31, 1978 Call date ...................................... .............................................. No provision Interest coupon r a t e ........................ T o be determ ined, based on the average o f accepted bids Investm ent yield ............................... T o be determ ined at auction Prem ium or d iscount ...................... T o be determ ined after auction Interest paym ent d a t e s ................... February 28 and A ugust 31 M inim um d enom ination available $5,000 Terms of Sale: M ethod o f sale ....................................................... Y ield auction A ccrued interest payable by investor ............ N one Preferred allotm ent N oncom petitive bid for $500,000 or less D ep osit requirem ent .............................................. ........................................... D ep osit guarantee by designated institutions 5% o f face am ount A cceptable Key Dates: D ead lin e for receipt o f tenders .........................................................................................Thursday, A ugust 19, 1976, by 1:30 p.m ., E D ST Settlem ent d ate (final paym ent due) a) Cash or Federal f u n d s .....................................................................................................Tuesday, A ugust 31, 1976 b) C heck drawn on bank within FRB district where subm itted ........................ Thursday, August 26, 1976 c) C heck drawn on bank outside FRB district where s u b m it t e d ......................Tuesday, A ugust 24, 1976 Delivery date for definitive securities .............................................................................T uesday. A ugust 31. 1976 F e d e r a l R e s e r v e Ba n k N e w Y o r k , N .Y . of i o o N ew Yo r k * o A R E A CODE 3 12-79 1-9000 Fiscal Agent of the United States August 1 6, 1976 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Our Circular No. 7937, dated August 13, 1976, announced an offering by the Department of the Treasury of 2-year notes (Series Q-1978), to be dated August 31, 1976 and to mature August 31, 1978. The terms of the offering were summarized in that circular; in addition, copies of the official offering circular will be furnished upon request. Enclosed is a copy of the tender form to be used in submitting bids for the notes. The closing time for receipt of tenders is 1:30 p.m., Thursday, August 19, 1976. Telephone inquiries regarding this offering may be made by calling Telephone No. 212-791-5823, 212-791-6616, or 212-791-5^65. Circulars Division UNITED STATES OF AMERICA TREASURY NOTES OF SERIES Q-1978 D a ted an d b earing interest from A ugust 3 1 ,1 9 7 6 d epa r tm en t cir cela r Public Debt Series No. 21-76 I. IN V IT A T IO N F O R T E N D E R S D u e A ugust 3 1 ,1 9 7 8 DEPAR TM EN T OF THE TR EA SUR Y, O ffice o f the Secretary, Washington, August 13, 1976. changes of notes of different denominations and of coupon and registered notes, and the transfer of registered 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. 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 Q-1978 (CUSIP No. 912827 FX 5). The interest rate for the notes will be determined as set forth in Section III, paragraph 3, hereof. III. T E N D E R S A N D A L L O T M E N T S Additional amounts of these notes may be issued at the 1. Tenders will be received at Federal Reserve Banks average price of accepted tenders to Government and Branches and at the Bureau of the Public Debt, accounts and to Federal Reserve Banks for themselves in Washington, D.C. 20226, up to the closing hour, 1:30 exchange for maturing Treasury securities held by them p.m., Eastern Daylight Saving time, Thursday, August and as agents of foreign and international monetary 19, 1976. Each tender must state the face amount of authorities for new cash only. Tenders will be received up notes bid for, which must be $5,000 or a multiple thereof, to 1:30 p.m., Eastern Daylight Saving time, Thursday, and the yield desired, except that in the case of August 19, 1976, under competitive and noncompetitive noncompetitive tenders the term “noncompetitive” bidding as set forth in Section III hereof. The 5-7/8 should be used in lieu of a yield. In the case of percent Treasury Notes of Series L-1976, maturing competitive tenders, the yield must be expressed in terms August 31, 1976, will be accepted at par in payment, in of an annual yield, with two decimals, e.g., 7.11. whole or in part, to the extent tenders are allotted by the Fractions may not be used. Noncompetitive tenders from Treasury. any one bidder may not exceed $500,000. D . D E SC R IP T IO N O F N O T E S 1. The notes will be dated August 31, 1976, and will bear interest from that date, payable semiannually on February 28, 1977, August 31, 1977, February 28, 1978, and August 31, 1978. They will mature August 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 a u th o rity . 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 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 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 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, and Government accounts, lenders from others must be accompanied by payment (in cash or the 5-7/8% Treasury Notes of Series L-1976. which will be accepted at par) of 5 percent of the face amount of notes applied for. (Over) 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. 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 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 1 (in three decimals) of accepted competitive tenders. 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 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 . A SSIG N M E N T O F R E G IST E R E D N O T E S 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 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 0-1978 in the name of (name and taxpayer identifying number).” If notes in coupon form are desired, the assignment should be to “The Secretary of the Treasury for coupon Treasury Notes of Series IV . P A Y M E N T 0-1978 to be delivered to ................................................ ” 1. Settlement for accepted tenders in accordance with Notes tendered in payment should be surrendered to the the bids must be made or completed on or before Federal Reserve Bank or Branch or to the Bureau of the Tuesday, August 31, 1976, at the Federal Reserve Bank Public Debt, Washington, D.C. 20226. The notes must or Branch or at the Bureau of the Public Debt. Payment be delivered at the expense and risk of the holder. must be in cash, 5-7/8% Treasury Notes of Series L-1976 (interest coupons dated August 31, 1976, should be V I. G E N E R A L PR O V ISIO N S detached), in other funds immediately available to the 1. As fiscal agents of the United States, Federal Treasury by August 31, 1976, or by check drawn to the Reserve Banks are authorized and requested to receive order of the Federal Reserve Bank to which the tender is tenders, to make such allotments as may be prescribed submitted or the United States Treasury if the tender is by the Secretary of the Treasury, to issue such notices as submitted to it, which must be received at such Bank or may be necessary, to receive payment for and make at the Treasury no later than: (1) Thursday, August 26, delivery of notes on full-paid tenders allotted, and they 1976, if the check is drawn on a bank in the Federal may issue interim receipts pending delivery of the Reserve District of the Bank to which the check is definitive notes. submitted, or the Fifth Federal Reserve District in case of the Treasury, or (2) Tuesday, August 24, 1976, if the 2. The Secretary of the Treasury may at any time, or check is drawn on a bank in another district. Checks from time to time, prescribe supplemental or amenda received after the dates set forth in the preceding tory rules and regulations governing the offering, which sentence will not be accepted unless they are payable at a will be communicated promptly to the Federal Reserve Federal Reserve Bank. Payment will not be deemed to Banks. have been com pleted where registered notes are requested if the appropriate identifying number as G E O R G E H. D IX O N , required on tax returns and other documents submitted 1 Acting Secretary>o f the Treasury. 1Average price may be at, or more or less then 1(X).(XX). Form NA IMPORTAN F— Closing time for receipt of this tender is 1 :30 p.m ., Thursday, August 19, 1976. TENDER FOR TREA SUR Y NOTES OF SERIES Q-1978 Due August 31, 1978 Dated August 31, 1976 F edera l R eserve Bank of N ew D ated a t.................................................................. Y ork, Fiscal A gen t of the U nited States, New Y ork. N. Y 10045 ..................................................................... 19 ...._ The undersigned herein- offers to purchase U nited States of A m erica Treasury N otes of Series Q -1 9 7 8 in the am ount indicated below , and agrees to m ake paym ent 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 $ .................................................................... (m aturity value) or any lesser am ount that m ay be awarded. Y ield : ................. N O N C O M P E T IT IV E T EN D ER $ .................................................................... (m aturity value) (N o t to exceed $500,000 fo r one bidder through all sources J at the average price of accepted com petitive bids. ( Yield must be expressed with not more than two dec:null places, for example, 7.1 J) OO Subject to allotm ent, please issue, deliver, and accept paym ent for the securities as indicated below and o n th e re v e r s e sid e ( if r e g is te r e d se c u ritie s a re d e s ire d , p le a s e a lso c o m p le te sc h e d u le o n re v e rs e s id e ) : Pieces Denominations $ Maturity value 5,000 10,000 2 *~ o3e 'o 100,000 1,000,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for member bank only) in— □ Investment Account □ General Account □ Trust Account □ 4, Hold as collateral for Treasury Tax and Loan Account* Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds □ By surrender of maturing securities (No changes on delivery instructions zed! be accepted) Totals ♦The undersigned certifies t h a t th e allotted securities will be owned s o le ly b y the undersigned. (If a commercial bank or dealer is subscribing for its own account or tor 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 i f y that w e have received tenders from our custom ers in the am ounts set forth opposite the custom ers’ nam es on the list w hich is m ade a part of this tender, and that w e have either received a n d a r e holding for the T reasury or w e guarantee paym ent to th e T reasury of deposits stipulated in the official offering circular. E” “ W e F u r t h e r C e r t i f y that tenders received by u s, if any, from other com m ercial banks for their ow n account and for the account of their custom ers have been entered with us under the sam e conditions, agree m ents, and certifications as set forth in this form . ^ 1 I - c X> 4 => '6 C§C M C ■C ** c<u E .S <u 2 o? >, a g g 5 = o aj 5 ■s= a p a DC O (Name of subscriber -please print or type) ■ «S ~ In se rt th is te n d e r in sp e c ia l e n v e lo p e m a r k e d “ T e n d e r f o r T re a su ry Notes o r Bonds” I 'O —1** H £ u -2 Z (Address—incl, City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) c % a (Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider j £ §."f ^ U - - ~ H = i a •= 3 (Name of Customer) (Name of Customer) 2 i IN STR UC TIO N S: Ai E 3 1. No tender for less than $5,000 will be considered; and each tender must be for a multiple of $5,000 (maturity value) 3E cr/> . V 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank - "2 "5 3 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 th e sam e y ie ld and may consolidate noncompetitive tenders, provided a list is h* 1X attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except — a for their own account. g E 3. Tenders will be received without deposit from commercial and other banks for their own account, federally-insured savings E 8 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, renders from others must be accom panied by payment of 5 percent of the face amount of the securities applied for. 4. Payment must be completed by August 31, 1976. If payment is by check drawn on a bank in this District, it must be received by August 26, 1976; checks drawn on a bank in another District must be received by August 24, 1976. 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 I reasury, is material, the tender may be disregarded. ( OVER i
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