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FED ER AL RESERVE BANK O F NEW YORK FiscalAgent ofthe United States Circular No. 8117 May 18. 1977 TREASURY TO AUCTION $2,000 MILLION OF 4-YEAR 1-MONTH NOTES To All 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 $2,000 million of 4-year 1-month 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. Printed on the reverse side isa table summarizing the highlights of the offering. Copies of the official offering circular will be furnished upon request. 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 securities. Ifpayment ismade 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. Enclosed isa copy of the form to be used in submitting tenders. Ifthere is any doubt that tenders sent by mail will reach this Bank or its Branch on time, bidders should use other means of transmitting their tenders. A recorded message (at the Head Office — Tel. No. 212-791-5823; at the Buffalo Branch — Tel. No. 716-849-5046) provides information about this and other Treasury offerings; additional inquiries regarding this offering may be made by calling, at the Head Office, Tel. No. 212-791-6619 or 212-791-5465, or, at the Buffalo Branch, Tel. No. 716-849-5016. P aul A. V olcker, P r e s id e n t. (Over) w. HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 4-YEAR 1-MONTH NOTES TO BE ISSUED JUNE 3,1977 Amount Offered: To the public................................... $2,000 million Description of Security: Term and type of secu rity........... 4-year 1-month notes Series and CUSIP designation .. Series J-1981 (CUSIP No. 912827 GT3) Maturity d a t e .................................. June 30, 1981 Call date ........................................... No provision Interest coupon ra te........................ To be determined, based on the average of accepted bids Investment y ie ld .............................. To be determined at auction Premium or d iscou n t...................... To be determined after auction Interest payment dates................... December 31 and June 30 (first payment on December 31, 1977) Minimum denomination available $ 1,000 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 ten d ers.................................................................................. Tuesday, May 24, 1977, by 1:30 p.m., EDST Settlement date (final payment due) a) Cash or Federal funds............................................................................................. Friday, June 3, 1977 b) Check drawn on bank within FRB district where subm itted........................Tuesday, May 31, 1977 c) Check drawn on bank outside FRB district where su b m itted ......................Friday, May 27, 1977 Delivery date for coupon securities............................................................................Wednesday, June 8, 1977 UNITED STATES OF AMERICA D EPA!A ’i iEN T CI RC ULA R P ub .1.ic D o b t Set ies - N o . 13-7 7 Washington, May 18, 1977. 1. 1. 1. IN V IT A T IO N FOR TENDERS The Secretary of the Treasury, under the authority of the Second Liberty Bond Act, as amended, invites tenders for approximately $2,000,000,000 of United States securities, designated Treasury Notes of June 30, 1981 , Series J-198.1 (CUSIP Mo. 912827 GT 3). 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 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 June 3, 1977, and will bear interest from that date, payable on a semiannual basis on December 31, 1977, and each subsequent 6 months on June 30 and December 31 until the principal becomes payable. They will mature June 30, 1981, 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. 2. 3. The securities will be acceptable to secure deposits of public monies. 2. 4. They will not be acceptable in payment of taxes. Bearer securities with interest coupons attached, and securities registered as to principal and interest, will be .issued j.n denominations of $1,0U0, $5,0UU, $10,000, $100,000, and $1,000,000. Book-entry securities will be available to eligible bidders in -2- mul t ip.i es of those amounts. Interchanges of securities of different (iono::i.i.rnrfions and of coupon, registered and book-entry securities, and the tr an:€er of reg istored secur i.t ies wi 11 be permictecl. 2. 5. The Department of the Treasury's general regulations governing United States securities apply to the securities offered in tiiis circular. Those general regulations include those currently in effect, as well as those that rnay be issued at a later cu^tte. 3. 3. 1. SAL!:; PROCEDURES Tenders will be received at Federal Reserve Banks and branches and at the Bureau of the Public Debt, Washington, D. C. 20226, :.p to 1:30 p.rn., Eastern Daylight Saving time, Tuesday, May 24, 1077. Noncompetitive tenders as defined below will be considered timely if postmarked no later than Monday, May 23, 1977. 3. i . 2. The minimum bid is $1,0 00 and larger bids must be in multiples of iv t amount. C-x Co te Each tender must state the face amount of securities bid Competitive tenders must also show the yield desired, •ressed in tej;ms of an annua 1 yie 1d with two decima 1s , e.g . , 7.11 %. s; fractions may not be used. Noncompetitive tenders must show the r"noncompetitive" on the tender form in lieu of a specified yield, no binder may submit more than one noncompetitive tender and the amount may noL exceed $1,000,000. 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 Rank of New York their positions in and borrowings on such securities, may 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, ana their political subdivisions or instrumentalities; public pension and retirement ana other public tunas; 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 ciccom^anicu by a deposit o z 5% oI: the face amount of securities <,ppl ieci for (in the for -a of cash, ruatur ing Tr easur y secu r it ies or readily collectible checks), or by a guarantee of such deposit by a commercial bank or a primary dealer. 3, o, immediately after the closing hour, tenders will bo openeu, followed by a public announcement of the amount and yield range u ;: 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. 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 establishad, on the basis of a 1/8 of one percent increment, which results in an equivalent average accepted price close to 100.000 ana a j vest accepted price above the original issue discount limit of y .000. That rate of interest will be paid on all of the securities, reused on such interest rate, the price on each competitive tender , Hotted will be determined and each successful competitive bidder will no 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 tne Treasury shall be final. If the amount of noncompetitive tensors 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 t.’/einment accounts and Federal Reserve Banks will bo accepter! at the weigh ted 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 Tne 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 -r.adifferent percentage allotments to various ela»»'.. 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 lor allotted securities must be made or completed on or before Friday, June 3, 1977, at the Federal Reserve Dank 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 receiv -d at such institution no later than: (n) Tuesday, May 31, 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 of the Bureau of the Public Debt), or (b) Friday, May 27, 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 Fo .rve 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. V-hen the nev; secur ities 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 V easuey for (securities offered by this circu1 ar) in the name of (nama a -i taxpayer identifying number)." l'f new securities in coupon form ate desire!, 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 Pubic Debt, Washington, D. C. 20226. The securities must be delivered at the expense and risk of the holder. 5. 4. It bearer securities are not ready for delivery on the <;•ktlemant date, purchasers may elect to receive interim certificates, v . sc certificates shall be issued in bearer form and shall be (. changeable 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 c\nd expense of the holder. b , 5. Delivery of securities in registered form will be »..pie after the requested form of registration has been validated, the registered interest account has been established, and the securities he.ve been inscribed. 6. 6. 1. GENERAL PROVISIONS As fiscal agents of the United States, Federal Reserve Bv iks are authorized and requested to receive tenders, to make a ’Lotments as directed by the Secretary of the Treasury, to issue such ; hi es as may be necessary, to receive payment for and make delivery c securities on full paid allotments, and to issue interim certificates pending delivery of the definitive securities. 6. 2. The Secretary of the Treasury may at any time issue supplemental or amendatory rules and regulations governing the offering. Public announcement of such changes will be promptly provided. W. Michael Blumervthal , Secretary of the Treasury. Form NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, May 24, 1977 TEND ER FOR T R EA SU R Y NOTES OF SER IES J-1981 ^ ST A T E M E N T 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 June 3, 1977 Due June 30, 1981 Dated at FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States, New York, N.Y. 10045 1Q The undersigned hereby offers to purchase United States of America Treasury Notes of Series J-1981 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. 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): Pieces ] 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 Payment will be made as follows: ] By charge to our reserve account J 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 * Pecia ’nstruct'ons 1,000,000 (No changes in delivery instructions will be accepted) Denomination $ Maturity value 1,000 5,000 10,000 Totals * 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 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 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 “ T e n d e r f o r T re a s u ry N o te s o r B o n d s ” (Address — incl. City and State) (Tel. No.) (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 $1,000 will be considered; and each tender must be for a multiple of $1,000 (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 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. 4. Payment must be completed by June 3, 1977. If payment is by check drawn on a bank in this District, it must be received by May 31, 1977; checks drawn on a bank in another District must be received by May 27, 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 any respect that, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. [Enc. Cir. No. 8117] (OVER) SUBSCRIPTION NO SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES J-1981 DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS SUBSCRIBER □ DELIVER OVER THE COUNTER SIGNATURE _ □ s h ip TO SUBSCRIBER □ BY CHARGE TO OUR RESERVE ACCOUNT □ BY CASH OR CHECK IN A D D R E S S ___ □ OTHER INSTRUCTIONS: FOR FR B USE O N LY TRANS. A C C O U N T I N G D A T E I M M E D I A T E L Y A V A I L A B L E FUNDS □ BY SURRENDER OF MATURING SECURITIES ZIP REGISTRATION ISSUE A GENT 12 J U N E 3 , 1977 INTEREST INSTRUCTIONS _ NAME(S) 30 I D OR S. S. N O . ADDRESS ZIP NAME(S) I D O R S. S. N O . ADDRESS ZIP N AME(S) I D O R S. S. NO. ZIP I D O R S. S. NO. ADDRESS ZIP 5,000 10,000 38 100,000 42 1, 000,000 99 TOTAL 30 1,000 32 5,000 34 10 ,0 0 0 38 1 0 0 ,0 0 0 42 1,000,000 99 TOTAL 30 1,000 32 5,000 34 10,000 FOR FRB DATE USE O N L Y T R . CASE NO. T R. CASE NO. 100,000 42 1 ,0 0 0 ,0 0 0 99 TOTAL T R. CASE NO. 1, 0 0 0 32 5 ,0 0 0 34 10,000 38 1 0 0 ,0 0 0 42 1 , 0 0 0 ,0 0 0 99 TOTAL 30 1,000 ' 32 5,000 N AME(S) AMOUNT SERIAL NOS. (LEAVE BLANK) COM P. 1 ,000 34 30 NAME(S) DENOM. 32 38 ADDRESS NO. OF PIECES ' 34 10,000 ■ 38 100,000 42 1,000,000 ------ T R . CASE NO. I D O R S.S. N O . ADDRESS ■ ZIP 99 L O AN C O DE TOTAL T R. CASE NO. 110-01
@FedFRASER