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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent o f the United States 8458 - Circular No. November 16, 1978 T R E A S U R Y T O A U C T IO N $2,691 M IL L IO N O F 2 -Y E A R N O T E S 7o antf OfAers Co/icerwed, in fAe FeJera/ /?Merve D[lsfr;cr.' The following statement was issued yesterday by the Treasury Department: The Department o f the Treasury will auction $2,691 million o f 2-year notes to refund the same amount o f notes maturing November 30, 1978. The $2,691 million o f maturing notes are those held by the public, including $570 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $250 million o f the maturing securities that may be refunded by issuing additional amounts o f the new notes at the average price o f accepted competitive tenders. Additional amounts o f the new securities may also be issued at the average price, for new cash only, to Federal Reserve Banks as agents for foreign and international monetary authorities. 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. 212-791-6619). Enclosed is a copy of a standard form that can be used in submitting tenders for this offering (or for any subsequent offering of 2-year notes). This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Tuesday, November 21, 1978, at the Securities Department of its Head Office and at its Buffalo Branch. /I// compctftfva fenders, whether transmitted by mail or by other means, must reach this Bank or its Branch by that time. However, for investors who wish to submit noncompetitive tenders and who find it more convenient to mail their tenders than to present them in person, the official offering circular provides that noncowpcf/f/vc tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no /afar f/mn N ovem b er 20. 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. Payment may be made by personal check, or an official bank check, payable on its face to the Federal Reserve Bank of New York; endorsed fo f/ds 2?anA: wd/ nof &e accepted. A personal check sub mitted with the tender, either as a deposit or for the face amount of the securities, does not have to be certified. However, in cases where only a deposit is submitted with the tender, a personal check submitted for the final payment must be certified. As provided in the official offering circular, "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." 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, at the Buffalo Branch, Tel. No. 716-849-5016. (If the inquiry relates to competitive tenders, however, the Head Office number to call is 212-791-5465.) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED NOVEMBER 30,1978 (De/fveyy coupon secMnYfes MDecember 4, 797^) Amount Offered: To the public................................. $2,691 million Description of Security: Term and type of security.......... 2-year notes Series and CUSiP designation . . Series V -1 9 8 0 (C U SIP No. 912827 JF0) Maturity d a te ............................... November 30, 1980 Call date ..................................... No provision Interest coupon rate................... To be determined, based on the average o f accepted bids Investment yield........................... To be determined at auction Premium or discount................... To be determined after auction Interest payment dates................. M ay 31 and November 30 Minimum denomination available $5,000 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 % o f face amount Deposit guarantee by designated institutions Acceptable Key Dates: Deadline for receipt of tenders.......................................................................... Tuesday, November 21, 1978 by 1:30 p.m., EST Settlement date (final payment due) a) Cash or Federal funds................................................................................ Thursday, November 30, 1978 b) Check drawn on bank within FRB district where submitted..................Monday, November 27, 1978 c) Check drawn on bank outside FRB district where submitted................Friday, November 24, 1978 Delivery date for coupon securities.................................................................... Monday, December 4,1978 .nm ttm Avrm. Ats terms are subject to change at any time by the Treasury. This tender wili be construed as a bid to purchase the 2-year notes for which the Treasury has out standing an invitation for tenders on the date received by the Federal Reserve Bank of New York or its Buffalo Branch. T E N D E R FO R 2 Y E A R T R E A S U R Y N O TES T o FED E RA L R E SE R V E B A N K OF N E W YORK Dated a t ............................................................. Fiscal Agent of the United States ...................................................................... . New Y o rk , N .Y . 10045 19- Pursuant to the provisions of the public notice issued by the Treasury Department inviting tenders f o r the current offering of 2-year Treasury notes, the undersigned hereby offers to purchase such currently o ffe r e d Treasury notes in the amount indicated below, and agrees to make payment, therefor at your Bank on o r before.the issue date at the price awarded on th is tender. D o wo/ /ill tw 6o//t Cow t^f/M w awJ COMPETITIVE TENDER V o w c o w / 'o / i / w o $ ................................................................................. ( m a t u r it y v a lu e ) o r a n y le s s e r a m o u n t th a t m a y be a w a r d e d . Y i e ld : ................... OM OMO /c 7 * M NONCOMPETITIVE TENDER $ ................................................................................ ( m a t u r it y v a lu e ) (W o / /o exceed ^7,000,000 /o r owe Oiddcr /ArowpA off JOMrcrj/ a t the a v e r a g e p ric e o f a c ce p ted c o m p e titiv e b id s. (Ffc/cf tnny/ 6c c-v/wy-ycd wtf/t wo/ wore /6ow /wo (/ccnwa/ /'/arcs, /or c^aw ^/c, 7 .U ) Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and o n the reverse side ( i/ rcgfM/crrd yccMWhM are desired, /?/ease aiso cow/'/eta ycheda/e on reverse side) ; Pieces Denominations $ Maturity value 5,000 $ 10,000 $ 100,000 IT Deliver over the counter to the undersigned (*) Q Ship to the undersigned (2) D Hold in safekeeping (for member bank only) in— D Investment Account (4> D General Account U ) D Trust Account (6) D H old as collateral for Treasury T a x and Loan Account* (?) Payment will be made as follow s: Q By charge to our reserve account (D) Q By cash or check in Mww^dta/Hy avaf/oHc /wwd^ (F) D Q D By surrender of maturing securities (E) By charge to m y correspondent bank ..................................- ....................... <D) Special instructions (3) $1,000,000 D Totals W ire to s > * 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 ER EBY CER TIFY th a t w e h a v e n o t m a d e a n d w ill n ot m a k e a n y a g re e m e n ts f o r the sale o r p u rc h a se o f a n y se cu ritie s of th is is s u e p r io r to the c lo s in g tim e fo r receip t o f th is te n d er. WE FU R TH ER CERTIFY that w e h a v e re c e iv e d te n d ers f r o m c u sto m e r s in th e a m o u n ts set fo r th o p p o site th e ir n a m e s on the lis t w h ic h is m a d e a p a rt o f th is te n d e r , a n d th a t w e h a v e re ce iv ed an d are h o ld in g f o r th e T r e a s u r y , o r th a t w e g u a ra n te e p a y m e n t to th e T r e a s u r y , o f the d e p o sits stip u la ted in the official o ffe r in g c i r cu la r. W E FU R TH E R CERTIFY that te n d ers re c e iv e d b y u s, if a n y , f r o m o th e r c o m m e rc ia l b a n k s or p r im a r y d ea lers fo r th 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 of th e ir c u s t o m e r s , h a v e been entered w ith us u n d e r the sa m e c o n d itio n s , a g r e e m e n t s , a n d ce rtification s set fo r th in this fo r m . Name of Subscriber (Ptease Print or Type) Address Insert this tender in special envelope marhed "Tender /or Treasury /Votes or Ronds" City Phone (Include Area Code) State Zip Signature of Subscriber or Authorized Signature K.O (Institutions submitting tenders for customer account must list customers' names on lines below or on an attached rider) M (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $5,000 will be considered; and each tender must be for a multiple of $5,000 (maturity value). t/3 < 3 U. <D V) ^ cj 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 / /M yamc yt<?M 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 wifi 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 N ew Y o rk their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment of at least 5 percent of the face amount of the securities applied for. 4. A personal check, cash, or Treasury securities maturing on or before the issue date of the new securities may be submit ted with the tender. Personal checks submitted with the tender, either as a deposit or for the face amount of the securities, do no/ have to be certified. However, in cases where only a deposit is submitted with the tender, a personal check submitted for the final payment must be certified and received at this Bank on the payment date (which is generally three business days before the issue date) shown on the "N otice of Balance D u e " that will be mailed to you. A ll checks must be payable on its face to the Federal Reserve Bank of N ew Y o r k ; cMc6.y /o /My BawA w d / no/ 6o o e c ^ /e d ; Settlement on the issue date must be in cash or in other immediately available funds. 5. A recorded message (at the Head Office— T el. N o . 2 1 2 -7 9 1-5 8 23 ; at the Buffalo Branch— Tel. N o . 716-849-5046) pro vides information about Treasury offerings; additional inquiries regarding Treasury offerings may be made by calling, at the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016. (I f the inquiry relates to competitive tenders, however, the Head Office number to call is 212-791-5465.) 6. 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. (OVER) SCHEDULE FOR ISSUE OF REGISTERED 2-YEAR TREASURY NOTES SUBSCR!PT!ON NO DEUVERY !NSTRUCT!ONS PAYMENT tNSTRUCTtONS SUBSCRIBER'S NAME D DEUVER O V E R THE COUNTER D BY CH ARG E T O O U R RESERVE A C C O U N T ADDRESS___________ n SHtP T O SUBSCRIBER D BY CA SH O R CHECK tN (MMFDMTELY AVAILABLE FUNDS D BY SURRENDER O F M A T U R IN G SECURITIES D BY CH ARGE TO M Y CORRESPONDENT BAN K n CITY_______________ STATE OTHER INSTRUCTIONS: -HP SIGNATURE NO. OP PIECES REGISTRATION INSTRUCTIONS DENOM. 32 5,000 34 10,000 36 100,000 ID OR S.S. NO. 42 1,000,000 ADDRESS 99 TOTAL NAME(S) CITY STATE 32 5,000 34 10,000 36 100,000 ID OR S.S. NO. 42 1,000,000 ADDRESS 99 TOTAL CITY STATE 32 5 000 34 10,000 36 100,000 ID OR S.S. NO. 42 1,000,000 ADDRESS 99 TOTAL CITY STATE ZIP 6 !SSUE A ENT 12 INTEREST COMP. DATE FOR FRB USE ONLY TR. CASE NO. ZIP NAME(S) SERIAL NOS. (LEAVE BLANK) TRANS. ACC0UNT!N6 DATE TR. CASE NO. ZIP NAME(S) AMOUNT FOR FRB USE O N LY TR. CASE NO. LOA N C O M nM i UNITED STATES UF AMERICA TREASURY NOTES OF NOVEMBER 30, 1980 SERIES V-1980 DEPARTMENT CIRCULAR Public Debt Series - No. 28-78 1. 1. DEPARTMENT OF THE TREASURY, OFFICE OF THE SECRETARY, Washington, November 16, 1978. 1. INVITATION FOR TENDERS The Secretary of the Treasury, under the authority of the Second Liberty Bond Act, as amended, invites tenders for approximately $2,691,000,000 of United States securities, designated Treasury Notes of November 30, 1980, Series V-1980 (CUSIP No. 912827 JF 0). 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 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 November 30, 1978, and will bear interest from that date, payable on a semiannual basis on May 31, 1979, and each subsequent 6 months on November 30 and May 31, until the principal becomes payable. They will mature November 30, 1980, 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 - 2. 3. The securities will be acceptable to secure deposits of public 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 $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 Standard time, Tuesday, November 21, 1978. Noncompetitive tenders as defined below will be considered timely if postmarked no later than Monday, November 20,-1978. 3. 2. bid for. Each tender must state the face amount of securities The minimum bid is $5,000 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%. Common fractions may not be used. 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 -3 - that such tenders are submitted under the same conditions, agree ments, and certifications as tenders submitted directly by bidders for their own account. 3. 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, and then competitive tenders will be accepted, starting with those at the lowest yields, through successively higher yields 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 99.500. That rate of interest will be -4 - paid on all of the securities. Based on such interest rate, the price on each competitive tender allotted will be determined and each successful competitive bidder will be required to pay the price equivalent to the yield bid. Those submitting noncompetitive tenders will pay the price equivalent to the weighted average yield of accepted competitive tenders. 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 price equivalent to the weighted average yield 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 Thursday, November 30, 1978, 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 -5 - tender was submitted, which must be received at such institution no later than: (a) Monday, November 27, 1978, 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, November 24, 1978, 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 and 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 -6 - delivered is s u a n c e to (name and and d e l i v e r y or a u t h o r i z e d p re se n t e d . ad dr ess)." representative, to the F ed er a l R e s e r v e delivered 5. in p a y m e n t D. C. 20226. and risk of s e c u r i ti e s are not re ady certificates issue, be e x c h a n g e a b l e when Reserve such Ba nk or B r a nc h Washington, returned C. 5. af ter and exp en se of the r e q u e s t e d been Reserve m ak e 1. As B an ks issue fiscal and m ak e issue se c u r it i e s of this at any Federal the Pu b li c Debt, must be the holder. in re g i s te r e d form w ill be been established, the Un it ed and r e q u e s t e d and the s e c u r i t i e s on certificates States, Federal to receive tenders, by the S e c r e t a r y of the Tre as ury , as m a y be ne ce ssary, d e l i v e r y of interim agent s of as d i r e c t e d such n o t i c e s form GENERAL PROVISIONS are a u t h o r i z e d allotments in b e a r er inscribed. 6. 6. in terim form of r e g i s t r a t i o n has been validated, i n te r es t a c co un t has s e c u r i t i e s h ave issued i n te ri m c e rt i f i c a t e s D e l i v e r y of s e cu r i t i e s the r e g i s t e r e d be are av ai lable, The for d e li v e r y on to re ceive or at the Bu r ea u of 20226. at the risk 5. made D. shall for d e f i n i t i v e securities the the holder. c er t i f i c a t e s . shall should be su rr en d er ed The se cu ri t ie s m u s t be p u r c h a s e r s m a y elect and signed by the owner a c c o m p a n y the se cu ri t ie s the s e t t l e m e n t date, Th e s e for the Bank or Br a nc h or to the Bureau of at the e x p e n s e If b e a r e r m us t ten de red Washington, 4. in st ru c ti o n s of the new se cu rities, Securities P u b l i c Debt, S p e c if i c p e nd i n g to receive p a y me n t full -p aid allotments, to to for and to d e l i v e r y of the d e f i n i ti ve se c ur i ti es . 6. 2. The S e c r e t a r y of the T r e a s u r y may at any supplemental off er i n g. or a m e n d a t o r y Public rules time and r e g u l a t i o n s g o v e r ni n g a n n o u n c e m e n t of such ch an ges will the be p r om p t l y pr ov i d ed . Paul H. Taylor, Fiscal Assistant Secretary. issue
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