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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 7 9 8 2 * 1 November 3, 1976 J [ Offering of $3,245,000,000 of 365-Day Treasury Bills Dated November 1 5,1976 Due November 15,1977 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F o llo w in g is the tex t of a notice issued yesterday by the T reasury D epartm ent: T h e D ep artm en t of the T re a su ry , by this public notice, invites ten d ers for $3,245 m illion, or thereabouts, of 365-day T re a su ry bills to be dated N ovem ber 15, 1976, and to m atu re N ovem ber 15, 1977 ( C U S I P N o. 912793 H 6 6 ). T he bills will be issued for cash and in exchange for T re a su ry bills m atu rin g N ovem ber 15, 1976. T h is issue will not provide new m oney for the T re a su ry as the m atu rin g issue is outstanding in the am ount of $3,245 m illion, of w hich $1,890 m illion is held by the public and $1,355 m illion is held by G overnm ent accounts and the F ed eral R eserve B anks for them selves and as agents of foreign and international m onetary a u th o ri ties. A dditional am ounts of the bills m ay be issued to F ed eral R e serve B anks as agents of foreign and in ternational m onetary a u thorities. T en d ers from G overnm ent accounts and the F ederal R e serve B anks fo r them selves and as agents oi foreign and in te rn a tional m onetary au th o ritie s will be accepted a t the average price of accepted tenders. T h e bills w ill be issued on a discount basis under com petitive and noncom petitive bidding, and a t m atu rity th eir face am ount will be payable w ithout interest. T h ey will be issued in b e are r form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ), and in b o ok-entry form to designated bidders. T en d ers will be received a t F ederal Reserve B anks and B ranches and, from individuals, a t the B ureau of the Public Debt, W ash in g ton, D .C . 20226, up to 1 :30 p.m., E a ste rn S tan d ard tim e, Tuesday, N ovem ber 9, 1976. E ach ten der m ust be for a m inim um of $10,000. T en d e rs over $10,000 m u st be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decim als, e.g., 99.925. F ractio n s m ay not be used. B anking in stitutions and dealers w hich m ake prim ary m arkets in G overnm ent securities and re p o rt daily to the F ed eral Reserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and b orrow ings thereon m ay subm it tenders for account of custom ers provided the nam es of the custom ers are set fo rth in such tenders. O th e rs will not be perm itted to subm it tenders except fo r th eir own account. T en d ers will be received w ithout deposit from in corporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d e rs from oth ers m ust be accom panied by paym ent of 2 percent of the face am ount of bills applied for, unless the tenders a re accom panied by an ex p ress g u a ra n ty of paym ent by an incorporated ban k o r tru s t company. P ublic announcem ent w ill be m ade by the D ep artm en t of the T re a su ry of the am ount and price range of accepted bids. T hose subm itting com petitive tenders will be advised of the acceptance o r rejection thereof. T he S e c retary of the T re a su ry ex p ressly r e serves the rig h t to accept o r re je c t any o r all tenders, in w hole or in p art, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $500,000 o r less w ith o u t stated price from any one bidder will be accepted in full a t the av erage price (in three decim als) of accepted com petitive bids. S ettlem ent fo r accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the F ed eral R eserve B ank o r B ran ch or a t the B ureau of the Public D ebt on N ovem ber 15, 1976, in cash or other im m ediately available funds o r in a like face am ount of tr e a s u r y bills m atu rin g N ovem ber 15, 1976. C ash and exchange ten ders will receive equal treatm en t. C ash ad ju stm e n ts will be m ade for differences betw een the p a r value of m atu rin g bills accepted in exchange and the issue price of the new bills. U n d e r Sections 4 5 4 (b ) and 1221(5) of the In te rn a l Revenue Code of 1954, the am ount of discount a t w hich bills issued h e re under are sold is considered to accrue w hen the bills a re sold, re deem ed o r otherw ise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner o f bills (o th e r th an life insurance com panies) issued h e reu n d e r m u st include in his h e d era l income ta x return, as o rd in ary gain o r loss, the dif ference betw een the price paid for the bills, w h eth er on o riginal issue o r on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity d u rin g the tax ab le year for w hich the re tu rn is made. D e p artm en t of the T re a su ry C ircu la r N o. 418 (c u rre n t rev isio n ) and this notice prescribe the term s of the T re a su ry bills an d g overn the conditions of th eir issue. Copies of the c irc u la r m ay be ob tained from any F ed eral R eserve B ank o r B ranch, o r from the B ureau of the P ublic Debt. T his B ank will receive tenders u p to 1 :30 p.m., E astern S tan d ard time, Tuesday, N ovem ber 9, 1976 at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. Please use the form on the reverse side of this notice to subm it a tender and retu rn it in the enclosed envelope m arked “ T ender for T reasu ry B ills.” T enders not requiring a deposit m ay be subm itted by telegraph, subject to w ritten confirm ation; no tenders m ay be subm itted by telephone. P a y m e n t f o r t h e T r e a s u r y b i l l s c a n n o t b e m a d e b y c r e d i t t h r o u g h t h e T r e a s u r y T a x a n d L o a n A c c o u n t . S e t t l e m e n t m u s t b e m a d e i n c a s h o r o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s o r i n m a t u r i n g T r e a s u r y b i ll s . P aul A. V olcker, President. ( o v ir ) TENDER FOR 365-DAY TREASURY BILLS Due November 15,1977 P R IV A C Y A C T S T A T E M E N T : T h e individual identifiable inform ation re q u ire d o n th is fo rm is necessary to perm it th e ten d er to be processed and th e b ills to be issued, in accordance w ith th e G eneral R egulations g o v ern in g U nited S ta te s securities (D e p a rtm e n t C irc u la r N o . 300) a n d th e R egulations g o v e rn in g T re a su ry B ills (D e p a rtm e n t C ircu lar N o. 4 1 8 ). T h e tran sactio n will not be com pleted unless a ll re q u ire d d a ta is fu rn ish e d Dated November 15,1976 T o F ederal R eserve B a n k of N ew Y ork , F iscal A g e n t o f th e U n ited States D ated a t ............................................................. ................................................ , 19— P u rs u a n t to the provisions of T re a su ry D epartm ent C ircular No. 418 (cu rre n t revision) and to the provi sions of the public notice issued by the T reasu ry D epartm ent inviting tenders for the above-described T reasu ry bills, the undersigned hereby offers to purchase such T reasury bills in the am ount indicated below, and agrees to m ake paym ent therefor a t your B ank on or before the issue date a t the price indicated below: D o not fill in both C om petitive and N oncom petitive tenders on one fo rm COMPETITIVE TENDER $................................................................ (m atu rity value) o r any lesser am ount th a t m ay be aw arded. P r ic e : ..........................................................p er 100. (P ric e m u s t be expressed w ith not m ore than three decim al places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $................................................................ (m atu rity value) ( N o t to exceed $500,000 fo r one bidder through all sources) at the average price of accepted com petitive bids. S ubject to allotm ent, please issue, deliver, and accept paym ent for the bills as indicated below : Pieces D enom ination $ M a tu rity value □ 1. D eliver over the counter to the undersigned 10,000 □ 2. Ship to the undersigned 15.000 □ 50.000 100,000 500,000 1, 000,000 3. H o ld in safekeeping (fo r m em ber bank only) in— □ Investm ent A ccount □ G eneral A ccount □ T ru s t A ccount P ay m en t will be m ade as follow s; □ By charge to o ur reserve account □ By cash o r check in im m ediately available fu n d s on delivery (P a y m e n t cannot be made through T rea su ry T a x and L oan A c c o u n t) □ 5. Special in stru c tio n s: □ 4. A llotm ent tra n sfe r (see list a tta ch e d ) (N o changes in delivery instructions w ill be accepted) T o ta ls T he undersigned (m em ber bank) hereby certifies that the T reasury bills which you are hereby instructed to dispose of in the m anner indicated in item 3 above are owned solely by the undersigned. (Name of subscriber—please print or type) In sert this ten d er in special envelope m a rk e d “T en d er fo r T rea su ry Bills** (Address— incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (B a n k in g institutions subm itting tenders fo r custom er account m u st list custom ers’ nam es on lines below o r on an attach ed rid er) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less th an $10,000 will be considered, and each tender m ust be for a m ultiple of $5,000 (m a tu rity v a lu e ). 2. O nly ban k in g institutions, and dealers w ho m ake p rim ary m ark ets in G overnm ent securities and rep o rt daily to this Bank their positions w ith respect to G overnm ent securities and b o rrow ings thereon, m ay subm it tenders for custom er acco u n t; in doing so, they m ay consolidate com petitive tenders at the same price and m ay consolidate noncom petitive tenders, provided a list is a ttach ed show ing the name of each bidder and the am o u n t bid for his account. O th e rs will not be perm itted to subm it tenders except fo r th eir ow n account. 3. If the person m aking the ten d er is a corporation, the tender should be signed by an officer of the corporation auth o rized to m ake the tender, and the signing of the ten d e r by an officer of the c orporation will be construed as a rep resen tatio n by him th at he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber of the firm , w ho should sign in the form ' ............................................................................................................... a copartnership, by ........................................................................................................ , a m em ber of the firm .’’ 4. T e n d e rs will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized d ealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent of 2 percent of the face am ount of T re a su ry bills applied for, unless the tenders are accompanied bv an express g uaranty of paym ent by an inco rp o rated bank o r tru s t com pany. All checks m ust be draw n to the o rd er of the Federal R eserve B ank of New Y o r k ; checks endorsed to this B ank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the S ecretary of the T rea su ry , is m ate ria l, th e ten d e r m ay be disregarded. h«y. 3/76
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