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F E D E R A L R E S E R V E BANK O F NEW YO RK Fiscal Agent of the United States •] rCircular No. 8166 August 22, 1977 TREASURY TO AUCTION $2,500 MILLION OF 4-YEAR 1-MONTH NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The follow ing statement was issued Friday, August 19 by the Treasury Department: The Department o f the Treasury will auction $2,500 million of 4-year 1-month notes to raise new cash. Additional amounts o f the notes may be issued to Federal Reserve Banks as agents o f foreign and international monetary authorities at the average price of accepted tenders. Printed on the reverse side is a table summarizing the highlights o f the offering. Copies o f the official offering circular will be furnished upon request directed to our Governm ent Bond Division (Tel. No. 212-791-6356). Bidders submitting noncom petitive 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 o f New’ Y ork; checks endorsed to this Bank will not be accepted. Enclosed is a copy o f the form to be used in submitting tenders. If there is any doubt that tenders sent by mail will reach this Bank or its Branch on time, bidders should use other means o f transmitting their tenders. A recorded message (at the Head O ffice — Tel. No. 212-791-5823; at the Buffalo Branch — Tel. No. 716-849-5046) provides inform ation about this and other Treasury offerings; additional inquiries regarding this offering may be made by calling, at the Head O ffice, Tel. No. 212-791-6619 or 212-791-5465, or, at the Buffalo Branch, Tel. No. 716-849-5016. PA U L A. V O L C K E R , President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 4-YEAR 1-MONTH NOTES TO BE ISSUED SEPTEMBER 7, 1977 Amount Offered: To the public........................................................................................................... $2,500 million Description o f Security: Term and type of security.................................................................................... . 4-year 1-month notes Series and CUSIP designation ............................................................................ Series K-1981 (CUSIP No. 912827 GZ9) Maturity d a te......................................................................................................... September 30, 1981 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.......................................................................................... . March 31 and September 30 (first payment on March 31, 1978) Minimum denomination available........................................................................ $1,000 Terms o f 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 offenders.............................................................................. Tuesday, August 30, 1977, by 1:30 p.m., EDST Settlement date (final payment due) a) Cash or Federal funds........................................................................................ Wednesday, September 7, 1977 b) Check drawn on bank within FRB district where submitted....................... Friday, September 2, 1977 c) Check drawn on bank outside FRB district where submitted.................... Thursday, September 1, 1977 Delivery date for coupon securities........................................................................ Tuesday, September 13, 1977 UNITED STATES TREASURY NOTES OF OF AMERICA SEPTEMBER 30, 1981 SERIES K-1981 DEPARTMENT CIRCULAR Public Debt Series - No. 21-77 1. 1. 1. DEPARTMENT OF TEE TREASURY, OFFICE OF THE SECRETARY, Washington, August 22, 1977. INVITATION FOR TENDERS The Secretary of the Treasury, under the authority of the Second Liberty Bond Act, as amended, invites tenders for approximately $2,500,000,000 of United States securities, designated Treasury Notes of September 30, 1981, Series K-1981 (CUSIP No. 912827 GZ 9). 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 September 7, 1977, and will bear interest from that date, payable on a semiannual basis on March 31, 1978, and each subsequent 6 months on September 30 and March 31 until the principal becomes payable. They will mature September 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. 'They will not be acceptable in payment of taxes. -2 - 2. 4. Bearer securities with interest coupons attached, and securities registered as to principal and interest, will be issued in denominations of $1,000, $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, Tuesday, August 30, 1977. Noncompetitive tenders as defined below will be considered timely if postmarked no later than Monday, August 29, 1977. 3. 2. Each tender must state the face amount of securities bid for. The minimum bid is $1,000 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. All bidders must certify that they have not made and will not make any agreements for the sale or purchase of any securities of this issue prior to the deadline established in Section 3.1. for receipt of tenders. Those authorized to submit tenders for the account of customers will be required to certify that such tenders are submitted under the same conditions, agree ments, and certifications as tenders submitted directly by bidders for their own account. -33. 4. 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, 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. 5. 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 and 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. 6. 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 tire 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 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 99.000. 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 anu each successful comoetitive bidder will be requireo to pay the price -4 - 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 the 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 Banks will be accepted at the weighted average price of accepted competitive tenders. 3. 7. 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 Wednesday, September 7, 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) Friday, September 2, 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 -5 - (b) Thursday, September 1, 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 arid 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 Public Debt, Washington, D. C. 20226. The securities must be delivered at the exoense and risk of the nolder. -6 - 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 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. Paul H. Taylor, Deputy Fiscal Assistant Secretary. IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, August 30, 1977 TENDER FOR TREASURY NOTES OF SERIES K-1981 Dated September 7, 1977 Due September 30, 1981 FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States, New York, N.Y. 10045 Dated at , 19 . . V .1 o ts E The undersigned hereby offers to purchase the above-described United States of America Treasury Notes of Series K-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 D o n o t fill m both C o m p etitive a n d N o n co m p etitive ten ders on one fo rm $ .......................................................... (maturity value) or any lesser amount that may be awarded. Y ie ld :........ (Y ie ld m u st be expressed w ith n ot m ore than tw o d ecim a l places, for exam ple, 7.11) NONCOMPETITIVE TENDER $ ..........................................................(maturity value) (N ot to exceed S i,00 0,000 for one b id d e r through all sou rces ) at the average price of accepted competitive bids. 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 $ Maturity value 1,000 5,000 10,000 100,000 1,000,000 Payment will be made as follows: ] By charge to our reserve account ] By cash or check in im m e d ia te ly | | 1. Deliver over the counter to the undersigned | | 2. Ship to the undersigned | | 3. Hold in safekeeping (for member bank only) in — r Investment Account General Account MUM rtUUUIll I | 4. Hold as collateral for Treasury Tax and Loan Account * available funds I | By surrender of maturing securities | --, r e •1• LJ • pecia instructions (N o changes in delivery’ in stru ction s w ill be accepted ) Totals * The undersigned certifies that the allotted securities w ill 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.) PRIVACY ACT STATEMENT — The individually identifiable information required WE HEREBY CERTIFY that we have not made and will not make any agreements for the sale or purchase of any securities o f this issue prior to 1:30 p.m., Tuesday, August 30, 1977. WE FURTHER CERTIFY 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. U E -S WE FURTHER CERTIFY that tenders received by us, if any from other commercial banks or primary dealers for their own account, and for the account of their customers, have been entered with us under the same conditions, agreements, and certifications set forth in this form. Qo 3 E (Name of subscriber — please print or type) Insert this tender in special envelope marked “Tenderfor Treasury Notes or Bonds” 00 — (Address — incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title ofauthorized signer) C -O •— 03 (Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached ridei) (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 a t th e sa m e y ie ld 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 September 7, 1977. It payment is by check drawn on a bank in this District, it must be received by September 2, 1977; checks drawn on a bank in another District must be received by September 1, 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. 8166] (OVER) SUBSCRIPTION NO SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES K-1981 DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS S U B S C R IB E R □ D ELIVER OVER THE COUNTER □ S IG N A T U R E _ □ s h ip A D D R E S S ___ □ OTHER INSTRUCTIONS: TO SUBSCRIBER □ BV CHARGE TO OUR RESERVE ACCOUNT BY CASH OR CHECK IN IM M E D IA T E L Y Z ip R E G IS T R A T IO N ID O R S.S. NO. OF PIECES 30 Z IP N A M E (S ) Z IP N AM E(S) S E P T E M B E R 7, 1977 AMOUNT SERIAL NOS. (LEAVE BLANK) COMP. DATE F O R F R B U SE O N L Y 1 ,0 0 0 32 5,0 0 0 34 10,000 38 100 ,000 42 1,000,000 99 TOTAL 30 1,000 32 5,000 34 10,000 T R . CASE NO. 38 100 ,000 4? 1,000,000 99 TOTAL 30 1 ,0 0 0 32 5,000 34 10,000 38 1 00 ,000 42 1,000,000 99 TOTAL TR . CASE NO. NO. ADDRESS Z IP 30 N AM E(S) ID O R S.S. DENOM. 12 LOAN CODE NO. ADDRESS ID O R S.S. ISSUE A G E N T NO. ADDRESS ID O R S.S. A V A IL A B L E FUNDS BY SURRENDER OF MATURING SECURITIES TRANS. A C C O U N T IN G DATE INTEREST IN S T R U C T IO N S N A M E (S ) □ FO R FR B USE O N LY NO. ADDRESS Z IP N A M E (S ) TR . CASE NO. 1,000 32 5,0 0 0 34 10,000 38 1 0 0 ,0 0 0 42 1 ,000,000 99 TOTAL 30 1,000 32 5,000 34 10,000 TR . CASE NO. I D O R S .S . N O . ADDRESS Z IP 38 100,000 42 1,000,000 99 TOTAL TR . CASE NO. 1 1 0 -0 1 '
@FedFRASER