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FED ER A L RESERVE BANK
OF N EW YORK
Fiscal Agent of the United States

PCircular No. 8198
|_ October 13, 1977

T R E A S U R Y T O A U C T IO N $3,500 M IL L IO N O F 2 -Y E A R N O T E S

To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The follow ing statement was issued yesterday by the Treasury Departm ent:
The Department o f the Treasury will auction $3,500 million o f 2-year notes to refund $2,938 million of
notes held by the public maturing October 31, 1977, and to raise $562 million new cash. Additional amounts
o f these notes may be issued at the average price o f accepted tenders to Government accounts and to Federal
Reserve Banks for their own account in exchange for $218 million maturing notes held by them, and to
Federal Reserve Banks as agents o f foreign and international monetary authorities for new cash only.
Printed on the reverse side is a table sum m arizing the highlights o f the offering. Copies o f the official
offering circular will be furnished upon request directed to our G overnm ent Bond Division (Tel. No.
212-791-6356).
Bidders subm itting 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 m ore than the face value for the securities.
If paym ent is m ade 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 subm itting tenders. If there is any dou bt 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 B uffalo Branch — Tel. No.
716-849-5046) provides inform ation about this and other Treasury offerings; additional inquiries regarding
this offering may be m ade by calling, at the Head O ffice, Tel. No. 212-791-6619 or 212-791-5465, or, at the
B uffalo Branch, Tel. No. 716-849-5016.




PAUL A. VOLCKER,
President.

(Over)

HIGHLIGHTS OF TREASURY
OFFERING TO THE PUBLIC
OF 2-YEAR NOTES
TO BE ISSUED OCTOBER 31, 1977

Amount Offered:

To the public.................................

$3,500 million

Description of Security:

Term and type o f security..........

2-year notes

Series and CUSIP designation ..

Series V-1979
(CUSIP No. 912827 HC9)

Maturity d a t e .............................. .

October 31, 1979

Call date .......................................

No provision

Interest coupon rate......................

To be determined, based on the
average o f accepted bids

Investment y ie ld ............................

To be determined at auction

Premium or discou n t....................

To be determined after auction

Interest payment dates..................

April 30 and October 31

Minimum denomination available

$5,000

Terms of Sale:

Method o f sale ...............................................

Yield auction

Accrued interest payable by investor..........

None

Preferred allotment ........................................

Noncompetitive bid for $1,000,000
or less

Deposit requirement........................................

5% o f face amount

Deposit guarantee by designated institutions

Acceptable

Key Dates:

Deadline for receipt o f tenders............................................................................. Tuesday, October 18, 1977,
by 1:30 p.m., EDST
Settlement date (final payment due)
a) Cash or Federal funds................................................................................... Monday, October 31, 1977
b) Check drawn on bank within FRB district where submitted.................. Thursday, October 27, 1977
c) Check drawn on bank outside FRB district where subm itted................ Tuesday, October 25, 1977
Delivery date for coupon securities




Monday, October 31, 1977

UNITED STATES OF AMERICA
TREASURY wOTES OF OCTOBEk 3l, 19 79
SERIES V-1979
DEPARTMENT CIRCULAR
P u d I i c Debt Series -

1.

1.

D E P A R T M E N T OF T H E TREASURY,

No. 24-77

OFFICE OF THE SECRETARY,
W a s h ington, October 13, 1977.

1. INVITATION FOR TENDERS
Tne Secretary of tne Treasury, under the authority

of the Second Liberty Bond Act, as amended, invites tenders for
approximately S3,5U0,000,U00 of United States securities,
designated Treasury Notes of October 31, 1979, Series V-1979
(CUSIP No. 912827 HC 9).
The securities will be sold at auction
witn oidding 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
oelow.

Additional amounts of these securities may be issued to

Government 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.

DESCRIPTION OF SECURITIES

2. 1. The securities will be dated October 31, 1977, and
will Dear interest from that date, payable on a semiannual basis
on April 30, 1978, and each subsequent 6 months on October 31
and April 30 until the principal becomes payable. Tney will
mature October 31, 1979, and will not be subject to call for
redemption prior to maturity.
2. 2. Tne 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, whetner 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 iocai taxing authority.




- 2 -

2. 3. The securities will De acceptable to secure
deposits of puolic 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
$i,000,00u.

Book-entry securities will oe available to eligible

bidders in multiples of those amounts.

Interchanges of

securities of different denominations and of coupon, registered
and book-entry securities, and tne transfer of registered
securities will be permitted.
2. 5. Tne Department of the Treasury's general
regulations governing United States securities apply to the
securities offered in tnis circular. These general regulations
include tnose currently in effect, as well as those that may oe
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, October Id, 1577. Noncompetitive tenders as defined
oelow will be considered timely if postmarked no later than
Monday, October 17, 1977.
3. 2. 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 tne yield desired, expressed in terms of an annual
yield with two decimals, e.g., 7.11%. Common fractions may not
be used.

Noncompetitive tenders must snow the term

"noncompetitive" on tne tender form in lieu of a specified
yield.

No bidder may submit more than one noncompetitive tender

and tne amount may not exceed $1,000,000.
3. 3. All bidoers must certify tnat tney have not made
and will not make any agreements for the sale or purcnase of any
securities of tnis issue prior to the deadline established in
Section 3.1. for receipt of tenders.

Those autnorized to submit

tenders for the account of customers will be required to certify




-

3

-

,that such tenaers are submitted under the same conditions, agree­
ments, and certifications as tenders submitted directly by bidders
tor their own account.
3. 4. Commercial banks, which for tnis purpose are defined
as banks accepting demand deposits, and primary dealers, which
for tnis purpose are defined as dealers who make primary markets
in Government securities and report daily to the Federal Reserve
Bank of New York tneir positions in and borrowings on such
securities, may submit tenders for account of customers if the
names of the customers and the amount for eacn 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 oe 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 cnecKs), or by a guarantee of
such deposit by a commercial banK or a primary dealer.
3. 6. Immediately after the closing nour, 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.

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, wnicn results in
an equivalent average accepted price close to 1U0.000 and a
lowest accepted price above the original issue discount limit of




-

99.500.

4

-

That rate of interest will be paid on all of the

securities.

Based on such interest rate, the price on each

competitive tenaer allotted will be determined and each
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 oasis of price per nundred, e.g.,
99.923, and the determinations of the Secretary of tne Treasury
shall be final. If the amount of noncompetitive tenders received
would adsorb 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. RESERVATIONS
4.

1.

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 tnan tne amount of securities
specified in Section 1, and to make different percentage
allotments to various classes of applicants when the Secretary
considers it in tne public interest.

The Secretary's action

under this Section is final.
5. PAYMENT AND DELIVERY
5. 1. Settlement for allotted securities must oe made or
completed on or before Monday, October 31, 1977, at tne federal
Reserve Bank or Branch or at the Bureau of the Public Debt,
wherever the tender was submitted. Payment must’oe 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
m

the general regulations governing United States securities;

or by check drawn to the order of the institution to which tne
tender was suomitted, which must be received at such institution
no later tnan:




-

5

-

(a) Thursday, October 27, 1977, if the check is arawn on a
bank in the Federal Reserve District of the institution
to wnich the check is submitted (tne Fifth Federal
Reserve District in case of the Bureau of the Public
Debt), or
(b) Tuesday, October 2b, 1977, if the check is drawn on a
bank in another Federal Reserve District.
Cnecks received after the dates set fortn 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 tne
appropriate identifying number as required on tax returns and
other documents submitted to tne 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 Didder for any difference between tne face amount of
securities presented and the amount payaole 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 b 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 tne registrations or assignments of the
securities surrendered.

When the new securities are to be

registered in names and forms different from tnose in the
inscriptions or assignments of tne securities presented, the
assignment should be to "Tne Secretary of the Treasury for
(securities offered by this circular) in the name of (name and
taxpayer identifying numoer)."

If new securities in coupon form

are aesired, 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

-6issuance and delivery of tne new securities, signed by the owner
or authorized representative, must accompany the securities
presented.

Securities tendered in payment snould be surrendered

to the Federal Reserve Bank or Brancn or to the Bureau of the
Puolic Debt, Wasnington, D. C. 20226. The securities must De
delivered at the expense and risx 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 snail 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 tne 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 nave been inscribed.
6. GENERAL PROVISIONS
6.

1.

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 tne
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 tne 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,
Acting Fiscal Assistant Secretary.

IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, October 18, 1977

TENDER FO R TREASU RY NOTES OF SERIES V-1979
Due October 31, 1979

Dated at

FEDERAL RESERVE BANK OF NEW Y O R K .
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 V-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.
Do not fill in both Competitive and
Noncompetitive tenders on one form

COMPETITIVE TENDER
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.

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
PR IV A C Y ACT ST A T E M E N T

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

Dated October 31, 1977

$ ............................................................ (maturity value)
or any lesser amount that may be awarded.
Yield:........
(Yield must be expressed with not more than two
decimal places, for example, 7.11)

NONCOMPETITIVE TENDER

$ ............................................................(maturity value)
(Not to exceed SI,000.000for one bidder through all sources)

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):

100,000

XXX

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
] By cash or check in immediately

10,000

Pieces

| | 4. Hold as collateral for Treasury Tax

^

Denomination

xxxxxx
$

Maturity value

XXX

XXX

5,000

XXX

[~ 1
~

available funds
]

By surrender of maturing
securities

^Pec'a* instructions

and Loan Account *

1,000,000

(No changes in delivery instructions
will be accepted)

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.)

WF. HEREBY CERTIFY 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, October 18, 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.
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.
(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 i a 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 re a s u ry
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
ot each bidder and the amount bid tor 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 October 31, 1977. If payment is by check drawn on a bank in this District, it must be received by
October 27, 1977; checks drawn on a bank in another District must be received by October 25, 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. 8198]




(OVER)

SUBSCRIPTION NO.

SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES V-1979
D E LIV E R Y INSTRUCTIONS

PAYM ENT INSTRUCTIONS

S L 'B S C R IB E R _

n DELIVER OVER THE COUNTER

□

S IG N A T U R E _

□

s h ip

A D D R E S S ____

□

other

TO SUBSCRIBER
INSTRUCTIONS:

ZIP

R E G IS T R A T IO N

FOR FR B USE O N LY

BY CHARGE TO OUR
RESERVE ACCOUNT
1 BY CASH OR CHECK IN

IMMEDIATELY AVAILABLE FUNDS
□

BY SURRENDER OF
MATURING SECURITIES

TRANS. A C C O U N T IN G D A T E

ISSUE A G E N T

NO. OF
PIECES

DENOM.

AMOUNT

SERIAL NOS.
(LEAVE BLANK)

DATE

F O R FRB USE ONLY

N A M E (S )
32

10,000

38

ID O R S.S.

5,000

34

100 ,000

42

1,000,000

99

TOTAL

NO.

ADDRESS
Z IP

TR. CASE NO.

N A M E (S )
32

ID O R S.S.

5,000

34

10,000

NO.
38

Z IP

100 ,000

4?

ADDRESS

1,000,000

99

TOTAL

TR. CASE NO.

N A M E (S )
32

ID O R S.S.

5,000

34

10,000

NO.
38

Z IP

1 0 0 ,000

42

ADDRESS

1,000,000

99

TOTAL

TR. CASE NO.

N A M E (S )
32

ID O R S.S.

NO.

5,000

34

10,000

38

Z IP

100,000

42

ADDRESS

1,000,000

99

TOTAL

TR. CASE NO.

N A M E (S )
32

5,000

34
S.S.

10,000

38

ID O R

100 ,000

42

1 ,00 0 ,0 0 0

99

TOTAL

NO.

ADDRESS


—
MMW—
—

Z IP

LOAN CODE

OCTOBER 31, 1977
INTEREST COM P.

IN S T R U C T IO N S

12

TR. CASE NO.

110-01


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102