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FEDERAL RESERVE OF NEW BANK YORK Fiscal Agent of the United States [ Circular No. 7993 I November 12, 1976 TREASURY TO AUCTION $2,500 MILLION OF 2-YEAR NOTES To AH Banking Institutions, anil O thers Concerned, m tin Second Federal Reserve D istrict The following statement was issued today by the Treasury D epartm ent: The D epartm ent o f the Treasury will auction $2,5(X) m illion o f 2-year notes to refund $1,370 m illion o f notes held by the public m aturing November 30, 197b, and to raise $1,130 million new cash. Additional am ounts o f these notes m ay be issued at the average price o f accepted tenders to G overnm ent accounts and to Federal Reserve B anks for their own account in exchange for $137 m illion m aturing notes held by them, and to Federal Reserve B anks as agents o f 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 for 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. It 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 o f 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 November lb, bidders should use other means of transmitting their tenders. The tender form will be mailed to you on Monday. Telephone inquires regarding this offering may be made by calling Telephone No. 212-791-5823. 2 12-791 -bblb, or 212-791-5465. PAUL A. VOLCKER, P resid en t. (Over) H IG H LIG H TS O F T R E A SU R Y O F F E R IN G TO TH E PUBLIC OF 2-Y EA R N O TE S TO BE IS SU E D N O V E M B E R 3 0 ,1 9 7 6 A m ount Offered: To the public $2,500 million D escription of Security: Term and type of security.................................................................................... 2-year notes Series and CUSIP designation ............................................................................ Series T-1978 (CUSIP No. 912827 GF6) Maturity date ........................................................................................................ November 30, 1978 Call date ........................................ No provision Interest coupon r a te ...................... To be determined, based on the average of accepted bids Investment y ield ............................ To be determined at auction Premium or disco u n t.................... To be determined after auction Interest payment dates.................. May 31 and November 30 Minimum denomination available $5,000 Terms of Sale: Method of sale ................................................ Yield auction Accrued interest payable by investor............ None Preferred allotment ........................................ Noncompetitive bid for $1,000,000 or less Deposit requirement........................................ 5% of face amount Deposit guarantee by designated institutions Acceptable Key D ates: Deadline for receipt of ten d e rs............................................................................ Thursday, November 18, 1976, by 1:30 p.m., EST Settlement date (final payment due) a) Cash or Federal funds...................................................................................... Tuesday, November 30, 1976 b) Check drawn on bank within FRBdistrict where subm itted....................... Wednesday. November 24, 1976 c) Check drawn on bank outside FRB district wheresubmitted ......................Tuesday, November 23. 1976 Delivery date for coupon securities...................................................................... Tuesday, November 30 1976 FED ER A L RESERVE BANK O F N EW YORK F isc a l A g e n t of th e U n ite d S ta te s November 15, 1976 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Our Circular No. 7993, dated November 12, 1976, announced an offering by the Department of the Treasury of 2-year not'es (Series T-1978), to be dated November 30, 1976 and to mature November 30, 1978. The terms of the offering were highlighted 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, November 18, 1976. Telephone inquiries regarding this offering may be made by calling Telephone No. 212-791-5823, 212-791-6616, or 212-791-5^65. P a u l A. V o lck er, President. IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Thursday, November 18,1976. T E N D E R FO R T R EA SU R Y N O TES OF SERIES T-1978 t.nsU'J V)\ ‘ i Di-P Gwai .■ ",i: ■!. K l . ! ... ! Y V '(„• ;: I':*.' V;» ■, ■ B .M , \ ' t ur nd Ol NHW YORK, , . Slates. , . ' ‘ ■V-.>. YmY Y’i . Kmu; V 1 8 U ................................................................................................ ................................................................ I N, . I iic undersigned hereby offers to purchase United States of America Treasury Notes of Series T-! CUH in the a m o u n t 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 T3 NONCOMPETITIVE TENDER D o not J ill in hm n C o m p e titiv e a n d N o n c o m p e titiv e te n d e rs on on e form $ ................................................................ (maturity value) or any lesser am ount that may be awarded. Y i e l d : ......... $ ....................................................... .. (maturity value) (Not to exceed $1,000,000 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): Pieces Denomination xxxxxx XXX $ I | Maturity value XXX XXX XXX 1. Deliver the counter to P a y m e n t wi l l b e m a d e a s f o l l o w s : the | f~l I j 2, S h i p to t he u n d e r s i g n e d | | 3. Hold in safekeeping (tor | f J 10,000 □ 100,000 4. | By c ha r g e to our reserve a c c o u n t By c a s h or c h e c k in immediately available funds member b a n k o nl y ) in — 5 , (XX) | E v over undersigned 1 I By s ur r en d er o f m a t u r i n g securities Investment Account General Account H o l d as c o l l a t er a l f or T r e a s u r y 'Fax O 5 ’ S Pecial i nstruct ions, and Loan A cc o u n t* 1.000,000 (No changes in delivery instructions will be accepted) Totals I l i e u n d e r s i g n e d c e r t i f i e s t h a t t h e a l l o t t e d s e c u r i t i e s wi l l h e o w n e d s o l e l y b y t h e u n d e r s i g n e d . (It a c o m m e r c i a l b a n k o r d e a l e r is s u b s c r i b i n g f o r i ts o w n a c c o u n t o r f o r a c c o u n t o f c u s t o m e r s , t h e f o l l o w i n g c er ti fi c at io ns are m a d e a part o f this tende r. ) WE HEREBY CE RT IFY 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 w-e have either received and are holding for the Treasury or we guarantee payment to the Treasury of deposits stipulated in the official offering circular. WE F U R T H E R CERTI FY 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. (Name ol subscriber — please print or type) Insert this tender in special envelope m arked “ T en d erfo r Treasury N otes or B o n d s” (Address — irtcl. City and Stale) Cl -I No.) i Signature of subscriber or authorized signature. (Title of au thoramt signer) ( I n s t i t u t i o n s s u b m i t t i n g t e n d e r s t o r c u s t o m e r a c c o u n t m u s t l ist c u s t o m e r s ’ n a m e s o n l i n e s b e l o w o r o n a n a t t a c h e d r i d e r ) <Name ofcustomer! (Name of customer) INSTRUCTIONS: 1. N o t e n d e r f o r l e s s t h a n $ 5 , 0 0 0 wi l l b e c o n s i d e r e d ; 2. O n l y b a n k i n g i n s t i t u t i o n s . a n d d e a l e r s w h o m a k e p r i m a r y m a r k e t s in G o v e r n m e n t s e c u r i t i e s a n d r e p o t ! d a and each tender must be for a m u l t i p l e o f $ 5 , 0 0 0 ( ma t ur i t y if. value). to (his bank p o s i t i o n s w i t h r e s p e c t t o G o v e r n m e n t s e c u r i t i e s a n d h o t r o w i n g s t h e r e o n , m a y s u b m i t t e n d e r s f o r c u s t o m e r a c c o u n t ; in' d o i n g so. i h c , ma y c o n - . o l i c l a t e c o m p e t i t i v e t e n d e r s at the same yield a n d m a y c o n s o l i d a t e n o n c o m p e t i t i v e t e n d e r s , p r o v i d e d a list is a t t a c h e d s f T i m t l n / n a t r '■ o t e a c h b i d d e r a n d t h e a m o u n t b i d f o r h i s a c c o u n t . C i t h e r s wi l l n o t b e p e r m i t t e d t o s u b m i t t e n d e r s e x c e p t O r t h m r or n a m o u n t V I c o d e r s wi l l b e r e c e i v e d w i t h o u t d e p o s i t f r o m c o m m e r c i a l a n d o t h e r b a n k s f o r t h e i r ov. n a c c o u n t , f e d e r a l l y - m s u r -,! s a y i : m nh| l o a n a s s o c i a t i o n s . S t a t e s , p o l i t i c a l s u b d i v i s i o n s o r i n s t r u m e n t a l i t i e s t h e r e o f , p u b l i c p e n s i o n a n d r e t i r e m e n t a n d o t h e r pu' >Mc " t i m, ! !' i n t e r n a t i o n a l o r g a n i z a t i o n s i n w h i c h t h e U n i t e d S t a t e s h o l d s m e m b e r s h i p , f o r e i g n c e n t r a l b a n k , a n d f o r e i g n States, d e f e r s v , l m m , G p r i m a r y m a r k e t s in G o v e r n m e n t s e c u r i t i e s a n d r e p o r t dai l y to t he F e d e r a l R e s e r v e B a n k o f N e w Y o r k t he i r p o s i t i o n s wi t h respect' ) G o v e r n m e n t securities and bor rowings thereon, and G o v e r n m e n t acco unt s. l e n d e r s from others must he a c c o m p a n i e d h, p a . m e m >1 :: p e r c e n t o l t h e l a c e amount o f t h e s e c u r i t i e s a p p l i e d f or 4. P a y m e n t m u s t b e c o m p l e t e d b y N o v e m b e r 4 0 , 1 0 7 b . 1*'p a y m e n t is b y c h e c k d r a w n o n a b a n k i n t h i s D i s t r i c t , it m u s t h e r e c c i v - d f Nov .'it; h e r 24 , P D b ; c h o c k s d r a w n o n a b a n k i n a n o t h e r D i s t r i c t m u s t b e r e c e i v e d b y N o v e m b e r 2 k 19 *’6, Al l c h e e k s m u s t b e d r a w n t.<> t i e or de r o f the Fe d e r al Reserve Bank of New York; checks endorsed to t his Bank wi l l not be a c c ep t e d . 5, It t h e l a n g u a g e o f t h i s t e n d e r is c h a n g e d i n a n y r e s p e c t t h a t , i n t h e o p i n i o n o f t h e S e c r e t a r y o f t h e T r e a s u r y , is m a t e r i a l , t h e t e n d e r m a\ be disregarded, ' . . . .......... . |Ref, Cir No 7993! tOVHR) ')■— Io rf r. ;n 'p C; C '• Z r "n o x 03 03 c m o X X m o 03 H m x m □ H x m > 03 C X -< o H m 03 O X 03 m x m 03 03 ■N 03 □ □ □ □ m r < m XI -< z CO —I X C O H O z 03 □ □ □ 15 | 5 c ? mo is TR. c a : l NO, HI ; 90 n ► m P -4 20 ft > rr> z Cv >x rno £o ^ o£ 3 o < jn - 3 >o ^m m* x. — M ro2 r~ m m c 2 O i/i -- — ■ /3 5-H JO C /3■ n < #C— S 3 m ; 40 S* - 3 x> n m o m “ o : 5 : : " x ; c. — tf. •A x o n o o •A ■r X > ■< m z H Z 03 H X C o H o z 03 03 CD 03 o X X o z. :T: v - UNITED STATES OF AM ERICA TREASURY NOTES OF NOVEMBER 30, 1978 SERIES T -1978 DEPARTMENT CIRCULAR Public Debt Series-No. 31-76 1. INVITATION FOR TENDERS 1.1 The Secretary o f the Treasury, pursuant to the authority o f the Second Liberty Bond Act, as am ended, invites tenders for $2,500,000,000, or thereabouts, o f securities o f the U nited States, designated Treasury N otes o f N ovem ber 30, 1978, Series T -1978 (C U SIP No. 912827 GE6). The securities will be sold at auction with bidding on the basis o f yield, and with the interest rate and the price equivalent o f each accepted bid to be d e term ined as set forth below. A dditional am ounts o f these securities may be issued to Governm ent accounts and to Federal Reserve Banks for their own account in exchange for m aturing Treasury securities being held by them , and to Federal Reserve Banks, as agents o f foreign and inter national m onetary authorities, for new cash only. 2. DESCRIPTION OF SECURITIES 2.1 T he securities will be dated N ovem ber 30, 1976, and will bear interest from that date, payable on a sem i annual basis on May 31 and Novem ber 30, 1977, and thereafter on M ay 31 and N ovem ber 30 in each year until the principal am ount becom es payable. T hey will m ature N ovem ber 30, 1978, and will not be subject to call for redem ption prior to m aturity. 2.2 The incom e derived from the securities is subject to all taxes im posed under the Internal Revenue Code o f 1954. The securities are subject to estate, in heritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the U nited States, or by any local taxing authority. 2.3 The securities will be acceptable to secure deposits o f public m oneys. They will not be acceptable in paym ent o f taxes. 2 4 Bearer securities with interest cou p ons a t tached, and securities registered as to principal and in ter est will be issued in denom inations o f $5,000, $10,000, $100 000 and $1,000,000. Book-entry securities will be available to eligible bidders in m ultiples o f those am ounts. Interchanges o f securities o f different d en om inations and o f coupon, registered and book-entry securities, and the transfer o f registered securities will be perm itted. DEPARTM ENT OF TH E TR EASU R Y, Office of the Secretary, Washington, November 12, 1976. 2.5 The securities will be subject to the general reg ulations o f the D epartm ent o f the Treasury governing U nited States securities, now or hereafter prescribed. 3. SALE PROCEDURES 3.1 Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public D ebt, W ashington, D.C. 20226, up to 1:30 p .m ., Eastern Standard tim e, Thursday, N ovem ber 18, 1976. N on com petitive tenders, as defined below, will be considered tim ely if postm arked no later than W ednesday, N ovem ber 17, 1976. 3.2 Each tender m ust state the face am ount o f securities bid for, which m ust be $5,000 or a m ultiple thereof. Com petitive tenders m ust show the yield desired, expressed in term s o f an annual yield with two decim als, e g. 7.11%. C om m on fractions may not be used. N on com petitive tenders m ust show the term “ noncom p eti tive” on the tender form in lieu o f a specified yield. No bidder may subm it more than one noncom petitive tender, and the am ount may not exceed $1,000,000. 3.3 Com m ercial banks, which for this purpose are defined as banks accepting dem and deposits, and primary dealers, which for this purpose are defined as dealers who m ake primary m arkets in Governm ent securities and report daily to the Federal Reserve Bank o f New York their positions with respect to Governm ent securities and borrowings thereon, may subm it tenders for account o f custom ers, provided the nam es o f the custom ers and the am ount for each custom er are furnished. Others will not be perm itted to subm it tenders except for their own account. 3.4 Tenders will be received w ithout deposit for their own account from com m ercial banks and other banking institutions; primary dealers, as defined above; Federally-insured savings and loan associations; States and political subdivisions or instrum entalities thereof; public pension and retirem ent and other public funds; international organizations in which the U nited States holds m em bership, foreign central banks and foreign sta te s ; F e d e r a l R ese rv e B a n k s; an d G o v e r n m e n t accounts. Tenders from others m ust be accom panied by a deposit o f 5% o f the face am ount o f securities applied for (in the form o f cash, m aturing Treasury securities or readily collectible checks), or by a guarantee o f such d e posit by a com m ercial bank or a primary dealer. [Ref. Cir. No. 7993] (Over) number as required on tax returns and other documents submitted to the Internal Revenue Service (an individu al’s social security number or an employer identification number) is not furnished. When payment is made in securities, a cash adjustment will be made to or required of the bidder for any difference between the face amount of securities presented and the amount payable on the securities allotted. 5.2 In every case where full payment is not com pleted on time, the deposit submitted with the tender, up to 5 percent of the face amount ot securities allotted, shall, at the discretion of the Secretary ot the Treasury, be forfeited to the United States. 5.3 Registered securities tendered as deposits and in payment for securities allotted hereunder are not re quired to be assigned if the new securities are to be regis tered in the same names and forms as appear in the registrations or assignments of the securities surren dered. Specific instructions for the issuance and delivery of the new securities, signed by the owner or his author ized representative, must accompany the securities pre sented. Otherwise, the presented securities 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 securities are to be registered in names and forms different from those in the inscriptions or assign ments of the securities presented, the assignment should be to “The Secretary of the Treasury for (securities offered herein) in the name of (name and taxpayer indentifying number).” If new securities in coupon form are desired, the assignment should be to “The Secretary of the Treasury for coupon (securities offered herein) to be delivered to (name and address).” Securities tendered in payment should be surrendered to the Federal Reserve 4. RESERVATIONS Bank or Branch or to the Bureau of the Public Debt, 4.1 The Secretary of the Treasury expressly re Washington, D.C. 20226. The securities must be de livered at the expense and risk ol the holder. serves the right to accept or reject any or all tenders in whole or in part, to allot more or less than the amount of 5.4 If bearer securities are not ready for delivery on securities specified in Section 1, and to make different the settlement date, purchasers may elect to receive percentage allotments to various classes of applicants interim certificates. These certificates shall be issued in when he deems it to be in the public interest, and his bearer form and shall be exchangeable tor the securities action in any such respect shall be final. offered herein, when such securities are available, at any Federal Reserve Bank or Branch, or at the Bureau of the 5. PAYMENT AND DELIVERY Public Debt, Washington, D.C. 20226. The interim ce rtifica tes m u st be re tu rn e d at the risk and expense of 5.1 Settlement for securities allotted hereunder must the holder. be made or completed on or before Tuesday, November, 30, 1976, at the Federal Reserve Bank or Branch, or the 5.5 Delivery of securities in registered form will be Bureau of the Public Debt, wherever the tender was made after the requested form of registration has been submitted. Payment must be in cash; in other tunds validated, the registered interest account has been immediately available to the Treasury; in Treasury bills, established and the securities have been inscribed. notes or bonds (with all coupons detached) maturing on or before the settlement date but which are not overdue 6. GENERAL PROVISIONS as defined in the general regulations governing United 6.1 As fiscal agents of the United States. Federal States securities; or by check drawn to the order of the Reserve Banks are authorized and requested to receive institution to which the tender was submitted, which tenders, to make such allotments as may be prescribed must be received at such institution no later than: by the Secretary of the Treasury, to issue such notices as (a) Wednesday, November 24, 1976, if the check is may be necessary, to receive payment tor and make drawn on a bank in the Federal Reserve District of the delivery of securities on full-paid allotments, and to issue institution to which the check is submitted (the Fifth interim certificates pending delivery of the definitive Federal Reserve District in case of the Bureau of the securities. Public Debt), or 6.2 The Secretary of the Treasury may at any time, (b) Tuesday, November 23, 1976, if the check is drawn or from time to time, prescribe supplemental or on a bank in another Federal Reserve District. amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal C hecks received after the dates set forth in the preced Reserve Banks. ing se n ten c e will not be accepted unless they are payable at the ap plicab le Federal Reserve Bank. Payment will not GEORGE H. D IX O N , be deemed to have been completed where registered Acting Secretary of the Treasury. securities are requested if the appropriate identifying 3.5 Immediately after the closing hour, tenders will be opened, following which public announcement will be made of the amount and yield range of accepted bids. Subject to the reservations expressed in Section 4, noncompetitive tenders will be accepted in full at the average price (in three decimals) of accepted competitive tenders, and competitive tenders 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 the original issue discount limit of 99.500. That rate of interest will be paid on all of the securities. Based on such interest rate, the price on each competitive tender allotted will be deter mined 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. If the amount of noncompetitive tenders received would absorb all or most of the offering, competitive tenders will be accepted in an amount sufficient to pro vide a fair determination of yield. Additional tenders received from Government accounts and Federal Reserve Banks will be accepted at the average price of accepted competitive tenders. 3.6 Those submitting competitive tenders will be advised of the acceptance or rejection thereof. Those submitting noncompetitive tenders will not be notified except when the tender is not accepted in full or when the price is over par.
@FedFRASER