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FED ER A L RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 8652 October 5, 1979 Offering o f $3,470,000,000 o f 364-Day Treasury Bills Dated October 16,1979 Due October 14, 1980 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F o llo w in g is th e text o f a n o tic e issu ed yesterd ay b y th e T reasu ry D epartm en t: The Department o f the Treasury, by this public notice, invites tenders for approximately $3,470 million o f 364-day Treasury bills to be dated October 16, 1979, and to mature October 14, 1980 (CUSIP N o. 912793 4Q6). This issue will not provide new cash for the Treasury as the maturing issue is outstanding in the amount o f $3,474 million. The bills will be issued for cash and in exchange for Treasury bills maturing October 16, 1979. The public holds $1,441 million o f the matur ing issue and $2,033 million is held by Federal Reserve Banks for themselves and as agents o f foreign and international monetary authorities. Tenders from Federal Reserve Banks for themselves and as agents o f foreign and international monetary authorities will be accepted at the weighted average price o f accepted competitive tenders. Additional amounts o f the bills may be issued to Federal Reserve Banks, as agents of foreign and international monetary authorities, to the extent that the ag gregate amount o f tenders for such accounts exceeds the aggregate amount o f maturing bills held by them. The bills will be issued on a discount basis under competitive and non competitive bidding, and at maturity their par amount will be payable without interest. This series o f bills will be issued entirely in book-entry form in a minimum amount o f $10,000 and in any higher $5,000 multiple, on the records either o f the Federal Reserve Banks and Branches, or o f the Department o f the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public Debt, Washington, D.C. 20226, up to 1:30 p.m .. Eastern Daylight Saving time, Wednesday, October 10, 1979. Form PD 4632-1 should be used to submit tenders for bills to be maintained on the book-entry records o f the Department o f the Treasury. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. In the case o f competitive tenders, the price offered must be expressed on the basis o f 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 o f New York their positions in and borrowings on such securities may sub mit tenders for account o f customers, if the names o f the customers and the amount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state the amount o f any net long position in the bills being offered if such position is in ex cess o f $200 million. This information should reflect positions held at the close o f business on the day prior to the auction. Such positions would in clude bills acquired through “ when issued” trading, and futures and for ward transactions. Dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank o f New York their positions in and borrowings on such securities, when submitting tenders for customers, must submit a separate tender for each customer whose net long position in the bill being offered exceeds $200 million. Payment for the full par amount o f the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records o f the Department o f 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. N o deposit need accompany tenders from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities for bills to be maintained on the book-entry records o f Federal Reserve Banks and Branches. A deposit o f 2 percent o f the par amount o f the bills applied for must accompany tenders for such bills from others, unless an express guaranty o f payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department o f the Treasury o f the amount and price range o f accepted bids. Competitive bidders will be advised o f the acceptance or rejection o f their tenders. The Secretary o f 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. Sub ject 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) o f accepted competitive bids. Settlement for accepted tenders for bills to be maintained on the bookentry records o f Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on October 16, 1979, in cash or other immediately available funds or in Treasury bills maturing October 16, 1979. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. Under Sections 454(b) and 1221(5) o f the Internal Revenue Code of 1954 the amount o f 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 o f these bills (other than life insurance companies) must include in his or her Federal income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, whether 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 o f the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, and this notice, prescribe the terms o f these Treasury bills and govern the conditions o f their issue. Copies o f the circulars and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public Debt. Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Wednesday, October 10, 1979, 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 direct ly to the Treasury are available from the Treasury and Agency Issues 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. Pay ment 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. T h o m a s M . T im l e n , First Vice President. / GB 6 4 .2 ( 6 /7 9 ) IM P O R T A N T — T h is is a s ta n d a r d fo rm . Its te rm s a re su b je c t to c h a n g e at any tim e by th e Treasury. T h is te n d e r will Ire c o n s tru e d as a h id to p u rc h a s e th e s e c u ritie s f o r w hich the T reasury has outstand* in g a n in v ita tio n f o r te n d e rs o n th e d a te receiv ed by th e F e d e ra l R e se rv e B ank o f New Y ork o r its B u ffalo B ra n c h . (See reverse side for further instructions.) TENDER FOR 12-MONTH BOOK-ENTRY TREASURY BILLS (F or Use in Subscribing Through a Financial In stitu tion) Do N ot Use This Form fo r D irect S u bscription s to th e T reasury To F ederal R eserve Bank N of Y ork ew Dated at ......................................... Fiscal Agent of the United States New York. N.Y. 10045 ..................................................................... 19. Pursuant and subject to the provisions of Treasury Department Circulars No. 26-76 and No. 27-76, Public Debt S eries, and to the provisions of the public notice issued by the Treasury Department inviting tenders for the current offering of 12-month Treasury bills, the undersigned hereby offers to purchase such currently of fered 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: D o not fill in both Competitive and Nuncompetitive tenders on one form COMPETITIVE TENDER $ ........................................... (maturity value) or any lesser amount that may be awarded. Price: ............................................ p>er 100. (Price must be expressed with not more than three decimal places, for example, 90.925) NONCOM PETITIVE TENDER ......................... ..................................... f maturity $ value) (Xot to exceed $500000 for one bidder through all sources) at the average price of accepted competitive bids. Certification try Competitive Bidders: The Bidder’s Q Customer’s Q net long position in these bills (including bills acquired through “when issued" trading, and futures and forward transactions, as well as holdings of outstanding bills with the same maturity date as the new offering) as of the close of business on the day preceding this auction, was— 0 Not in excess of $200 million. □ In excess of $200 million, amounting to $................. million. Subject to allotment, please issue and accept payment for the bills as indicated below: S a fe k e e p in g o r D eliv ery In s tru c tio n s P aym ent Instructions transaction will not be completed unless all required data is furnished. (No changes will be accepted) Book-Entry— □ 1. Hold in safekeeping at F R B N Y (for member bank only) in— □ Investment Account (4) □ General Account 15) □ Trust Account (6) Payment will be made as fo llo w s: □ By charge to our reserve account |D) □ By check in immediately available funds □ 2. Hold as collateral for Treasury T ax and Loan Account* (7) □ 3. W ire to .................................................................. ............ ................ ................................ (8) (E xact Receiving Bank W ire Address/A ccount) Definitive— □ 4. Issue in definitive form f (in $100,000 denominations oniy) and— □ Deliver over the counter to the undersigned □ Ship to the undersigned □ By surrender of eligible maturing IE) securities □ By charge to my correspondent bank ............................................................................ID) (Name of Correspondent) (Payment cannot be made through Treasury T a x and Loan Account) •T he undersigned certifies that the allotted securities will be owned solely by the undersigned. •T h is tender is submitted by the undersigned for ............... .............. ........................................ .................... which is required (Name of entity) by law or regulation ( ...........................................................................................) to hold or pledge securities in definitive form. (Separate tender (Give citation) forms must be submitted for each such entity.) 1 Siame of Subscriber <Please Print or Type) Address In sert th is tender in envelope m a rked “T e n d e r fo r Treasury B ills ' ’ State City Phone ( Include Are* Code) Title of Zip Code Signature of Subscriber or Authorized Signature Authorized Signer ( Banking institutions submitting tenders for customer account must list customers' names on lines below or on an attached rider) <Name of customer) Name ot customer) (0 V Z » ) INSTRUCTIONS : 1. N o tender for less than $10,000 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 a t the sam e price (except that a seperate tender must be submitted for each customer whose net long position in the bill being offered exceeds $200 million) 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. 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 and recog nized 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. A ll checks must be drawn to the order of the Federal Reserve Bank of New Y ork; 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, is mate rial, the tender may be disregarded.
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