Full text of Federal Reserve Bank of New York Circulars : 8222. Offering of $3,000,000,000 of 139-Day Treasury Bills

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FEDER AL RESERVE BANK
O F N EW YORK

Fiscal Agent of the United States
Circular No.8222
November 23, 1977

Offering of $3,000,000,000 of 139-Day Treasury Bills
Dated October 20, 1977, Due April 20, 1978, To Be Issued December 2, 1977
To A l l In c o r p o r a te d . B a n k s a n d T r u s t C o m p a n ie s , a n d O th e r s

C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t :

Following is the text of a notice issued today by the
Treasury Department:
The Department of the
for approximately $3»000 million
1977* representing an additional
April 20, 1978 (CUSIP NO. 912793

Treasury, by this public notice, invites tenders
of 139-day Treasury bills to be issued December 2,
amount of bills dated October 20, 19775 maturing
P8 3 ).

The bills will be issued on a discount basis under competitive and
noncompetitive bidding, and at maturity their par amount will be payable without
interest. Except for definitive bills in the $100,000 denomination, which will be
available only to investors who are able to show that they are required by law or
regulation to hold securities in physical form, this series of bills will be issued
entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000
multiple, on the records either of the Federal Reserve Banks and Branches, or of
the Department of the Treasury.
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
Standard time, Tuesday, November 29, 1977* Form U632-2 (modified) should be used
to submit tenders for bills to be maintained on the book-entry records of the
Department of the Treasury.
Each tender must be for a minimum of $10,000. Tenders over $10,000 must
be in multiples of $5,000. In the case of competitive tenders, the price offered
must be expressed on the basis of 100, with not more than three decimals, e.g.
99*925* Fractions may not be used.
Banking institutions and 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 sire furnished. Others
are only permitted to submit tenders for their own account.
Payment for the full par amount of the bills applied for must accompany
all tenders submitted for bills to be maintained on the book-entry records of the
Department of the Treasury. A cash adjustment will be made on all accepted tenders
for the difference between the par payment submitted and the actual issue price as
determined in the auction.




(Over)

No deposit need accompany tenders from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities
for bills to be maintained on the book-entry records of Federal Reserve Banks and
Branches, or for bills issued in bearer form, where authorized. A deposit of
2 percent of the par amount of the bills applied for must accompany tenders for
such bills from others, unless an express guaranty of payment by an incorporated
bank or trust company accompanies the tenders.
Public announcement will be made by the Department of the Treasury of
the amount and price range of accepted bids. Competitive bidders will be advised
of the acceptance or rejection of their tenders. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders, in whole or
in part, and the Secretary's action shall be final. Subject to these reservations,
noncompetitive tenders for $500,000 or less without stated price from any one
bidder will be accepted in full at the weighted average price (in three decimals)
of accepted competitive bids.
Settlement for accepted tenders for bills to be maintained on the bookentry records of Federal Reserve Banks and Branches, and bills issued in bearer
form must be made or completed at the Federal Reserve Bank or Branch or at the
3ureau of the Public Debt in cash or other immediately available funds on
December 2, 1977•
Under Sections U 5 U(b) and 1221(5) of the Internal Revenue Code of 195*+
the amount of discount at which these bills are sold is considered to accrue when
the bills are sold, redeemed or otherwise disposed of, and the bills are excluded
from consideration as capital assets. Accordingly, the owner of these bills (other
than life insurance companies) must include in his or her Federal income tax return,
as ordinary gain or loss, the difference between the price paid for the bills on
original issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the return
is made.
Department of the Treasury Circulars, No. Ul8 (current revision), Public
Debt Series - Nos. 26-76 and 27-76, and this notice, prescribe the terms of these
Treasury bills and govern the conditions of their issue. Copies of the circulars
and tender forms may be obtained from any Federal Reserve Bank or Branch, or from
the Bureau of the Public Debt.

Tenders will be received up to 1:30 p.ra., Eastern Standard
time, Tuesday, November 29, 1977 at the Securities Department of
this Bank's Head Office, at our Buffalo Branch, or at the Bureau of
the Public Debt. The enclosed form should be used for submitting
tenders through a financial institution. Forms for submitting
tenders directly to the Treasury are available from the Government
Bond Division of this Bank. Tenders not requiring a deposit may be
submitted by telegraph, subject to written confirmation; no tenders
may be submitted by telephone.
Payment for the Treasury bills cannot
be made by credit through the Treasury Tax and Loan Account.
Settlement must be made in cash or other immediately available funds
or in maturing Treasury bills.




P aul A. V olcxer ,

President.

TENDER FOR 139-DAY TREASURY RILLS (ADDITIONAL AMOUNT)
Dated October 20, 1977, To Be Issued December 2, 1977, Maturing April 20, 1977
(For Use in Subscribing Through a Financial Institution)
D o N ot Use This F orm fo r D irect Subscriptions to the Treasury

P R IV A C Y A C T S T A T E M E N T : The individually identifiable information required on this form is necessary to permit the tender to be processed and the bills to be
issued, in accordance with the General Regulations governing United States book-entry Treasury Bills (Department Circular No. 26-76, Public Debt Series). The
transaction will not be completed unless all required data is furnished.

To F e d e r a l R e s e r v e B ank of N e w Y ork.
Fiscal Agent of the United States
New York, N Y. 10045

Dated a t ..............................................................
19

Pursuant and subject to the provisions of Treasury Department Circulars No. 418 (current revision), and
No. 26-76 and No. 27-76, Public Debt Series, and to the provisions of the public notice issued by the
Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers
to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your
Bank on or before the issue date at the price indicated below:

Do not fill tn both Competitive and
Noncompetitive tenders on one form

COMPETITIVE TENDER

$ ............................................... ( maturity value)
or any lesser amount that may be awarded.
Frice: ........................................per 100.

(Price must be expressed with not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$................................................ (maturity value)

(Not to exceed $500/XX) for one bidder through all sources)
at the average price of accepted competitive bids.

Subject to allotment, please issue and accept payment for the bills as indicated below:
Safekeeping or Delivery Instructions

(No changes will be accepted)

Book-Entry—
□

Payment Instructions
Payment will be made as follows:

1. Hold in safekeeping (for member bank only) in—
□

Investment Account

□

General Account

□

By charge to our reserve account

□ By check in

funds

□ Trust Account

□

2. Hold as collateral for Treasury Tax and Loan Account*

□

3. W ire to.-----------------------------------------------------------------------------------------------(Exact Receiving Bank W ire Address/Account)

□

By surrender of eligible maturing
securities

□

By charge to ray correspondent bank

Definitive—
□

(Nam* of Correspondent)

4. Issue in definitive formf (in $100,000 denominations only) and—
□
□

*

immediately available

(Payment cannot be made through
Treasury Tax and Loan Account)

Deliver over the counter to the undersigned
Ship to the undersigned*1

The undersigned certifies that the allotted securities will be owned solely by the undersigned.

t This tender is submitted by the undersigned f o r ............................. .......... ......................................................., which is required by law
(Name of entity)

or regulation ( .......... ........................................................... ....................... ) to hold or pledge securities in definitive form. (Separate tender
(Give citation)

forms must be submitted for each such entity.)

(Name ot subscriber—please print or type)
Insert this tender
in envelope

(Address— inel. City and Stace)

marked “Tender for

(TeL Nol)

Treasury Bills'*

(Signature of snbaeriber or authorized signature)
(Title of authorized signer)

( Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)

(Name of customer)
IN S T R U C T IO N S :

1.

No tender for less than

(Name of customer)

$10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity

value).

2. Oniy 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
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.

at the same price

3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a
representation that such officer has been so authorized. If the tender is made by a partnership, it should be signed by a

member of the firm, who should sign in the form “......................................... .................... ............................................ > a

copartnership, by

------------------------------------------------------------------------------------ , a member of the firm.”

4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible
?nd recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank of New
York; and personal checks should be certified. Checks endorsed to this Bank will not be accepted.
5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury
it material, the tender may be disregarded.

jEnc. Cir. No. 8222^