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F E D E R A L R E S E R V E BANK O F NEW YO R K Fiscal Agent of the United States [ Circular No. 8 1 4 7 1 July 15, 1977 J T R E A SU R Y TO AU C TIO N $2,500 M ILLION OF 2-YE A R NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued July 13 by the Treasury Department: The Department of the Treasury will auction $2,500 million of 2-year notes to refund $1,451 million of notes held by the public maturing July 31, 1977, and to raise $1,049 million new cash. 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 $65 million maturing notes held by them, and to Federal Reserve Banks as agents o f foreign and international monetary authorities for new' cash only. Potential bidders for the 2-year note are cautioned that the Treasury Department has included a provision in the official offering circular which prohibits participation in the auction by anyone who has contracted to purchase or sell the security prior to the 1 :30 p.m., ED ST deadline for receipt of tenders. A prohibition having this general effect was originally adopted for securities sold during World War II and was eliminated in^ February 1975 wffien the offering circular was revised to eliminate provisions then con sidered obsolete. The Treasury is taking this present action after monitoring the development and expansion of trading in Treasury securities prior to the actual auctions, and in some cases, prior even to the announcement of an offering, and has concluded that this trading does not contribute to the efficient marketing of new Treasury issues, and may, in fact, facilitate undesirable speculative activity in Treasury securities. The prohibition on pre-auction trading will be included in all subsequent offering circulars for new Treasury coupon securities. This prohibition does not apply to offerings of Treasury bills. The Treasury will continue to monitor developments in the bill market. 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 directed to our Government Bond Division (Tel. No. 212-791-6356). »*.' I 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. If payment 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. Enclosed is a copy of the form to be used in submitting tenders. If there is any doubt that ten ders 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 au l A . V olcker, President. ( over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED AUGUST 1, 1977 Amount Offered: $2,500 million To the public .............................. Description of Security: Term and type of security .......... 2-year notes Series and CUSIP designation ... Series S-1979 (C U SIP No. 912827 GV8) Maturity date .............................. July 31, 1979 Call date......................................... No provision Interest coupon rate .................... To be determined, based on the average of accepted bids Investment yield ........................... To be determined at auction Premium or discount .................. To be determined after auction Interest payment dates ................ January 31 and July 31 Minimum denomination available $5,000 Terms of Sale: M e t h o d o f s a l e ............................................................................. Yield auction A ccrued None P r e fe r r e d in t e r e s t p a y a b le b y i n v e s t o r .................. a llo tm e n t ............................................................. Noncompetitive bid for $1,000,000 or less D e p o s i t r e q u i r e m e n t ............................................................. 5% of face amount D e p o s it g u a r a n te e b y d e s ig n a te d Acceptable in s titu tio n s Key Dates: D e a d l i n e f o r r e c e ip t o f t e n d e r s ............................................................................ Tuesday, July 19, 1977, by 1 :30 p.m., EDST S e t tle m e n t d a te ( fin a l p a y m e n t d u e ) a) Cash or Federal funds .................................................................................... Monday. August 1, 1977 b) Check drawn on bank within FRB district where submitted ................... Thursday, July 28, 1977 c) Check drawn on bank outside FRB district where submitted ................. Tuesday, July 26, 1977 D e liv e r y date f o r c o u p o n s e c u r i t i e s ...................................................................... Monday. August 1. 1977 FORM NA IMPORTANT— Closing time for receipt of this tender is 1 :3 0 p.m ., Tuesday, July 19, 1977 TENDER FOR TR EA SU R Y NOTES OF SERIES S-1979 Dated August 1, 1977 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. * F ederal R eserve B a n k Due July 3 1, 1979 of N ew Y ork Dated a t ................................................... , Fiscal Agent of the United States, New York, N. Y. 10045 ........................................................... , 19. The undersigned hereby offers to purchase the above-described United States of America Treasury Notes of Series S-1979 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. D o not fill in both Competitive and Noncompetitive tenders on one form COMPETITIVE TENDER $......................................................... (maturity value) or any lesser amount that may be awarded. NONCOMPETITIVE TENDER $......................................................... (maturity value) ( N ot to exceed $1,000,000 for one bidder through all sources) at the average price of accepted competitive bids. Y ield: ................... (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 XXX Maturity value X X X X $ X X X X - X X 5,000 10,000 100,000 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 □ I- ! 5 Snerial instructions (No changes in delivery instructions will be accepted) Totals * The undersigned certifies that the allotted securities will be owned solely by the undersigned. (I f 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.) W e H e r e b y C e r t i f y that we have not made and will not make any agreements for the sale or purchase of any securities of this issue prior to 1 :30 p.m., Tuesday, July 19, 1977. W e F u r t h e r C e r t i f y that we have received tenders from customers in the amounts set forth opposite their names on the list which is made a part of this tender, and that we have received and are holding for the Treasury, or that we guarantee payment to the Treasury, of the deposits stipulated in the official offering circular. W e F urth er C e r t if y th a t te n d e r s r e c e iv e d by u s, if any, fro m o th er c o m m e rc ia l banks or p r im a r y d e a le r s f o r t h e ir o w n a c c o u n t , a n d f o r th e a c c o u n t o f t h e i r c u s t o m e r s , h a v e b e e n e n t e r e d w it h u s u n d e r th e s a m e c o n d itio n s , a g r e e m e n t s , a n d c e r tific a tio n s set fo r th in th is fo r m . (Name of subscriber— please print or type) Insert this tender in special envelope marked “ Tender for Treasury Notes or Bonds” (Tel. No.) (Address— incl. City and State) (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) IN S T R U C T IO N S : 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 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 August 1, 1977. If payment is by check draw’n on a bank in this District, it must be received by July 28, 1977; checks drawn on a bank in another District must be received by July 26, 1977. All checks must be drawn to the order of the Federal Reserve Bank of New Y o r k ; 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. 8147] (O V E R ) SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES S -1 9 7 9 SUBSCRIPTION NO SUBSCRIBER. S IG N A T U R E - DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS □ DELIVER OVER THE COUNTER □ □ SHIP TO SUBSCRIBER n □ OTHER INSTRUCTIONS: □ ADDRESS ___ BY CHARGE TO OUR RESERVE ACCOUNT BY CASH OR CHECK IN IMMEDIATELY AVAILABLE FUNDS BY SURRENDER OF MATURING SECURITIES FOR FRB USE ONLY TRANS. ACCOUNTING DATE ISSU E AGENT 12 LOAN CODE August 1, 1977 ZIP. IN T ER ES T C O M P NO. OF PIECES REGISTRATION INSTRUCTIONS OENOM. AMOUNT SERIAL NOS (LEAVE BLANK) DATE 11001 FOR FRB USE ONLY NAME(S) 32 34 ID O H 5.5. N O . 3? ADDRESS ZIP 5,000 10,000 100,000 42 1,000,000 99 TOTAL TR. CASE NO. NAME(S) 32 ID OR S.S. NO. ADDRESS ZIP 5,000 34 10,000 38 100,000 42 1,000,000 99 • TOTAL TR. CASE NO. NAME(S) 32 3< ID OR S.S. NO. ADDRESS ZIP 5,000 10,000 38 100,000 42 1,000,000 99 TOTAL • TR. CASE NO. NAME(S) 32 34 ID OR S.S. NO. 38 ADDRESS 42 ZIP 99 5,000 10,000 100,000 1,000,000 TOTAL TR. CASE NO, NAME(S) 32 34 ID OR S.S. NO. ADDRESS ZIP 5,000 10,000 38 100,000 42 1,000,000 99 TOTAL TR. CASE NO.
@FedFRASER