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FED ER AL RESERVE BANK
OF NEW YORK
F s a Agent o t e United S a e
icl
fh
tts
Circular No. 8113
May 12. 1977
TREASURY TO AUCTION $1,500 MILLION OF 2-YEAR NOTES
To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:
The foll w n statement was i s e yesterday by t e Treasury Department:
oig
sud
h
The Department of the Treasury will auction $1,500 million of 2-year notes to refund notes maturing May
31, 1977. The offering will provide for a net pay-down for the Treasury of about $447 million as the public holds
$1,947 million of the maturing notes. Additional amounts of these notes may be issued at the average price of
accepted tenders to Government accounts and to Federal Reserve Banks for their own account in exchange for
$190 million maturing notes held by them, and to Federal Reserve Banks as agents of foreign and international
monetary authorities for new cash only.
Printed on t e r v r e s d i a t b e summarizing the h g l g t of the o f r n . Copies of t e o f c a
h ees ie s al
ihihs
feig
h fiil
o f r n c r u a w l be furnished upon r q e t
f e i g i c l r il
eus.
Bidders submitting noncompetitive tenders should r a i e t a i i p s i l t a t e average
elz h t t s o s b e ht h
p i e may be above p r i which case they would have t pay more than t e f c v
rc
a, n
o
h a e alue f r t e
o h
scrte.
euiis
I payment i made by check, t e check should be a c r i i d personal check o an o f c a bank check,
f
s
h
etfe
r
fiil
payable on is f c t t e Federal Reserve Bank of New York; checks endorsed t t i Bank w l n t be
t ae o h
o hs
il o
accepted.
Enclosed i a copy of t e form t be used i submitting t n e s I t e e i any doubt t a t n
s
h
o
n
edr. f hr s
h t e ders
s n by mail w l reach t i Bank o is Branch on t m , bidders should use other means of transmitting
et
il
hs
r t
ie
ter t n e s
hi e d r .
A recorded message ( t t e Head O f c — T l No. 212-791-5823; a t e Buffalo Branch — T l No.
a h
fie
e.
t h
e.
716-849-5046) provides information about t i and other Treasury o f r n s a d t o a i q i i s regarding
hs
feig; d i i n l nure
t i o f r n may be made by c l i g a t e Head O f c , T l No. 212-791-6619 o 212-791-5465, o , a
hs f e i g
aln, t h
fie e.
r
r t
t e Buffalo Branch, T l No. 716-849-5016.
h
e.
P aul
A.
V olcker,
P r e s id e n t.
(Over)
HIGHLIGHTS OF TREASURY
OFFERING TO THE PUBLIC
OF 2-YEAR NOTES
TO BE ISSUED MAY 31,1977
Amount Offered:
To the public..................................
$1,500 million
Description of Security:
Term and type of security............
2-year notes
Series and CUSIP designation . . .
Series 0-1979
(CUSIP No. 912827 GS5)
Maturity d a t e ................................
May 31, 1979
Call date .........................................
No provision
Interest coupon rate......................
To be determined, based on the
average of accepted bids
Investment y ield ............................
To be determined at auction
Premium or discount....................
To be determined after auction
Interest payment dates..................
November 30 and May 31
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 Dates:
Deadline for receipt of tenders.............................................................................. Wednesday, May 18, 1977,
by 1:30 p.m., EDST
Settlement date (final payment due)
a) Cash or Federal funds........................................................................................Tuesday, May 31, 1977
b) Check drawn on bank within FRB district where submitted.......................Thursday, May 26, 1977
c) Check drawn on bank outside FRB district where subm itted.....................Tuesday, May 24, 1977
Delivery date for coupon securities........................................................................Tuesday, May 31, 1977
UNITED STATES OF AMERICA
TREASURY NOTES OF MAY 31, 1979
SERIES
Q-1979
DEPARTMENT CIRCULAR
Public Debt Series - No. 12-77
FOLLOWING IS THE PROPOSED TEXT OF THE
DEPARTMENT OF THE TREASURY,
OFFICE OF THE SECRETARY,
Washington, May 12, 1977.
OFFERING CIRCULAR THAT I S
TO BE ISSU E D TODAY.
^
FOR TENDERS
1#
1.
EXPECTED
IN V IT A T IO N
The Secretary of the Treasury, under the authority
of the Second Liberty Bond Act, as amended, invites tenders for
approximately $1,500,000,000 of United States securities,
designated Treasury Notes of May 31, 1979, Series Q-1979 (CUSIP
No. 912827 GS 5).
The securities will be sold at auction with
bidding on the basis of yield. Payment will be required at the
price equivalent of the bid yield of each accepted tender.
The
interest rate on the securities and the price equivalent of each
accepted bid will be determined in the manner described below.
Additional amounts of these securities may be issued to Govern
ment accounts and Federal Reserve Banks for their own account in
exchange for maturing Treasury securities.
Additional amounts
may also be issued for cash to Federal Reserve Banks as agents
of foreign and international monetary authorities.
2.
2.
1.
DESCRIPTION OF SECURITIES
The securities will be dated May 31, 1977, and will
bear interest from that date, payable on a semiannual basis on
November 30, 1977, and’each subsequent 6 months on May 31 and
November 30 until the principal becomes payable.
They will
mature May 31, 1979, and will not be subject to call for
redemption prior to. maturity.
2.
2.
The income derived from the securities is subject
to all taxes imposed under the Internal Revenue Code of 1954.
The securities 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, any possession of the United States, or
any local taxing authority.
J
-2-
2.
3.
The securities will be acceptable to secure
deposits of public monies.
They will not be acceptable in
payment of taxes.
2.
4.
Bearer securities with interest coupons attached,
and securities registered as to principal and interest, will be
issued in denominations of $5,000, $10,000, $100,000, and
$1,000,000.
Book-entry securities will be available to eligible
bidders in multiples of those amounts.
Interchanges of
securities of different denominations and of coupon, registered
and book-entry securities, and the transfer of registered
securities will be permitted.
2.
5.
The Department of the Treasury's general
regulations governing United States securities apply to the
securities offered in this circular.
These general regulations
include those currently in effect, as well as those that may be
issued at a later date.
3.
3.
1.
SALE PROCEDURES
Tenders will be received at Federal Reserve Banks
and Branches and at the Bureau of the Public Debt, Washington,
D. C. 20226, up to 1:30 p.m., Eastern Daylight Saving time,
Wednesday, May 18, 1977.
Noncompetitive tenders as defined
below will be considered timely if postmarked no later than
Tuesday, May 17,
3.
2.
1911.’
Each tender must state the face amount of
securities bid for.
The minimum bid is $5,000 and larger bids
must be in multiples of that amount.
Competitive tenders must
also show the yield desired, expressed in terms of an annual
yield with two decimals, e.g., 7.11%.
be used.
Common fractions may not
Noncompetitive tenders must show the term
"noncompetitive" on the tender form in lieu of a specified
yield.
No bidder may submit more than one noncompetitive tender
and the amount may not exceed $1,000,000.
-3-
3.
3.
Commercial banks, which for this purpose are defined
as banks accepting demand deposits, and primary dealers, which
for this purpose are defined as dealers who make primary markets
in Government securities and report daily to the Federal Reserve
Bank of New York their positions in and borrowings on such
securities, rnay submit tenders for account of customers if the
names of the customers and the amount for each customer are
furnished. Others are only permitted to submit tenders for their
own account.
3.
4.
Tenders will be received without deposit for their
own account from commercial banks and other banking institutions;
primary dealers, as defined above; Federally-insured savings and
loan associations; States, and their political subdivisions or
instrumentalities; public pension ana retirement and other
public funds; international organizations in which the United
States holds membership; foreign central banks and foreign
states; Federal Reserve Banks; and Government accounts.
Tenders
from others must be accompanied by a deposit of 5% of the face
amount of securities applied for (in the form of cash, maturing
Treasury securities or readily collectible checks), or by a
guarantee of such deposit by a commercial bank or a primary
dealer.
3.
5.
Immediately after the closing hour, tenders will
be opened, followed by a public announcement 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 weighted 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. Tenoers at the highest accepted yield will
be prorated if necessary. After the aetermination is made as to
which tenders are accepted, a coupon rate will be established,
on the basis of a 1/8 of one percent increment, which results in
an equivalent 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 determined and each
-4-
successful competitive bidder will be required to pay the price
equivalent 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 tne amount of noncompetitive tenders received
would absorb all or most of the offering, competitive tenders
will be accepted in an amount sufficient to provide a fair
determination of the yield.
Tenders received from Government
accounts and Federal Reserve 3anks will be accepted at the
weighted average price of accepted competitive tenders.
3.
6.
Competitive bidders will be advised of the acceptance
or rejection of their tenders.
Those submitting noncompetitive
tenders will only be notified if the tender is not accepted in
full or when the price is over par.
4.
4.
1.
RESERVATIONS
The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders in whole or in
part, to allot more or less than the amount of securities
specified in Section 1, and to make different percentage
allotments to various classes of applicants when the Secretary
considers it in the public interest.
The Secretary's action
under this Section is final.
5.
5.
1.
PAYMENT AND DELIVERY
Settlement for allotted securities must be made or
completed on or before Tuesday, May 31, 1977, at the Federal
Reserve Bank or Branch or at the Bureau of the Public Debt,
wherever the tender was submitted.
Payment must be in cash; in
other funds immediately available to the Treasury; in Treasury
bills, notes or bonds (with all coupons detached) maturing on or
before the settlement date but which are not overdue as defined
in the general regulations governing United States securities;
or by check drawn to the order of the institution to which the
tender was submitted, which must be received at such institution
no later than:
(a) Thursday, May 26, 1977, if the check is drawn on a bank
in the Federal Reserve District of the institution to which the
check is submitted (the Fifth Federal Reserve District in case
r
*
-5 -
of the Bureau of the Public Debt), or
(b) Tuesday, May 24, 1977, if the check is drawn on a bank
in another Federal Reserve District.
Checks received after the dates set forth in the preceding
sentence will not be accepted unless they are payable at the
applicable Federal Reserve Bank.
Payment will not be considered
complete where registered securities 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.
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 completed
on time, the deposit submitted with the tender, up to 5 percent
of the face amount of securities allotted, shall, at the
discretion of the Secretary of the Treasury, be forfeited to the
United States.
5.
3.
Registered securities tendered as deposits and in
payment for allotted securities are not required to be assigned
if the new securities are to be registered in the same names and
forms as appear in the. registrations or assignments of the
securities surrendered.
When the new securities are to be
registered in names and forms different from those in the
inscriptions or assignments of the securities presented, the
assignment should be to "The Secretary of the Treasury for
(securities offered by this circular) in the name of (name and
taxpayer identifying number)."
If new securities in coupon form
are desired, the assignment should be to "The Secretary of the
Treasury for coupon (securities offered by this circular) to be
delivered to (name and address)."
Specific instructions for the
issuance and delivery of the new securities, signed by the owner
or authorized representative, must accompany the securities
presented. Securities tendered in payment should be surrendered
to the Federal Reserve Bank or Branch or to the Bureau of the
-6 -
Pubic Debt, Washington, D. C. 20226.
The securities must be
delivered at the expense and risk of the holder.
5.
4.
If bearer securities are not ready for delivery on
the settlement date, purchasers may elect to receive interim
certificates.
These certificates shall be issued in bearer form
and shall be exchangeable for definitive securities of this
issue, when such securities are available, at any Federal
Reserve Bank or Branch or at the Bureau of the Public Debt,
Washington, D. C. 20226.
The interim certificates must be
returned at the risk and expense of the holder.
5.
5.
Delivery of securities in registered form will be
made after the requested form of registration has been
validated, the registered interest account has been established,
and the securities have been inscribed.
6.
6.
1.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal
Reserve Banks are authorized and requested to receive tenders,
to make allotments as directed by the Secretary of the Treasury,
to issue such notices as may be necessary, to receive payment
for and make delivery of securities on full-paid allotments, and
to issue interim certificates pending delivery of the definitive
secur ities.
6.
2.
The Secretary of the Treasury may at any time issue
supplemental or amendatory rules and regulations governing the
offering.
provided.
Public announcement of such changes will be promptly
W. Michael Blumenthal,
Secretary of the Treasury.
Form NA
IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Wednesday, May 18, 1977
TENDER FOR TREASURY NOTES OF SERIES Q-1979
PRIVACY ACT STATEMENT
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 numbers; 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.
Dated May 31, 1977
Due May 31, 1979
FEDERAL RESERVE BANK OF NEW YORK,
Fiscal Agent of the United States,
New York, N.Y. 10045
Dated at
19
The undersigned hereby offers to purchase United States of America Treasury Notes of Series Q-1979 in
the amount indicated below, and agrees to make pa}unent 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.
Y ield:........
NONCOMPETITIVE TENDER
$ .......................................................... (maturity value)
(Not to exceed $1,000,000for 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):
| |
1. Deliver over the counter to the
undersigned
| | 2. Ship to the undersigned
Hold in safekeeping (for member
bank only) in —
| Investment Account
J General 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
100,000
| | 4. Hold as collateral for Treasury Tax
and Loan Account *
^^
1,000,000
(No changes in delivery’ instructions
will be accepted)
Pieces
Denomination
XXX
xxxxxx
$
Maturity value
XXX
XXX
5,000
10,000
Totals
XXX
^Pecia* instructions
* 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.)
WE HEREBY CERTIFY 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.
WE FURTHER CERTIFY that tenders received by us, if any, from other commercial banks for their ow n
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 of subscriber — please print or type)
I n s e r t th is te n d e r in
s p e c ia l e n v e lo p e m a r k e d
(Address — incl. City and State)
(Tel. No.)
“T e n d e r fo r T reasury
N o te s o r B o n d s ’’
(Signature of subscriber or authorized signature)
(Title of authorized signer)
(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)
(Name of customer)
(Name of customer)
INSTRUCTIONS:
1.
No tender for less than $5,000 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 yield and may consolidate noncompetitive tenders, provided a list is attached show ing 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.
4. Payment must be completed by May 31. 1977. If payment is by check drawn on a bank in this District, it must be received by
May 26, 1977; checks drawn on a bank in another District must be received by May 24, 1977. 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 anv resoect that, in the opinion of the Secretary of the Treasury, is material, the tender
may be disregarded.
[Enc. Cir. No. 8113]
(OVER)
SUBSCRIPTION NO
SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES Q-1979
DELIVERY INSTRUCTIONS
PAYMENT INSTRUCTIONS
□
SIG N ATU RE _
□ DELIVER OVER THE COUNTER
LJ
“
□ SHIP TO SUBSCRIBER
A D D R E S S ____
□
□
SU BS C R IBE R
BY CHARGE TO OUR
RESERVE ACCOUNT
H BY CASH OR CHECK IN
IMM EDIATELY A V A I L A B L E FUNDS
OTHER INSTRUCTIONS:
ZIP
REGISTRATIO N
FOR F R B USE O N LY
BY SURRENDER CF
MATURING SECURITIES
TRANS. ACCOUNTI NG DAT E
I S S U E A G E N T 12 LOAN CODE
MAY 31, 1977
IN TE R E ST
NO. OF
PIECES
INSTRUCTIONS
AMOUNT
SERIAL NOS.
(LEAVE BLANK)
COMP.
DATE
FO R F R B USE O NLY
NAME(S)
32
5 ,0 0 0
10,000
I D O R S. S .
NO.
100,000
ADDRESS
1 , 0 0 0 ,0 0 0
TR. CASE NO.
ZIP
NAME(S)
5,0 00
1 0 ,0 0 0
I D O R S.S.
NO.
100,000
ADDRESS
1,0 0 0 ,0 0 0
TR. CASE NO.
ZIP
N AME(S)
5,000
10,000
I D O R S.S.
NO.
100,000
ADDRESS
1, 0 0 0 ,000
ZIP
TR. CASE NO.
N AME(S)
5,0 0 0
10,000
I D O R S.S.
NO.
1 00,00 0
1 ,0 0 0 , 0 0 0
ADDRESS
ZIP
TOTAL
TR. CASE NO.
NAME(S)
5,000
1 0 ,0 0 0
I D O R S. S.
NO.
100,000
ADDRESS
1 ,0 0 0 ,0 0 0
ZIP
TOTAL
TR. CASE NO.
110-01
@FedFRASER