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FED ER AL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States

Circular No. 8759
February 20, 1980

TREASURY TO AUCTION $2,500 MILLION OF 5-YEAR ZUz-MONTH NOTES
To A ll Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued yesterday by the Treasury Department:
The Departm ent of the Treasury will auction $2,500 million of 5-year 2 !/2 -m onth notes to raise new cash.
Additional am ounts of the notes may be issued to Federal Reserve Banks as agents for foreign and international
m onetary authorities at the average price of accepted competitive tenders.

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). In addition, enclosed is a copy of the form to be used in submitting tenders.
This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Tuesday, February 26, 1980, at
the Securities Department of its Head Office and at its Buffalo Branch. A ll competitive tenders, whether
transmitted by mail or by other means, must reach this Bank or its Branch by that time. However, for in­
vestors 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 noncompetitive tenders will be
considered timely received if they are mailed to this Bank or its Branch under a postmark no later than
February 25.
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; checks endorsed to this Bank will not be accepted. A personal check submitted
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.’’
Recorded messages provide information about this and other Treasury offerings and about auction
results: at the Head Office — Tel. No. 212-791-7773 (offerings) and Tel. No. 212-791-5823 (results); at the
Buffalo Branch — Tel. No. 716-849-5046. Additional inquiries regarding this offering may be made by call­
ing, at the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016.




T homas

m

. T im l e n ,

First Vice President.

(Over)

H IG H LIG H TS OF TREASURY
OFFERING TO TH E PUBLIC
OF 5-YEAR 2V2-MONTH NOTES
TO BE ISSUED MARCH 3, 1980

(Delivery date fo r coupon securities is March 13, 1980)

Am ount Offered:
To the p u b lic ...........................................................................................................

$2,500 million

Description of Security:
Term and type of security.....................................................................................

5-year 2 Vi-month notes

Series and CUSIP desig n atio n .............................................................................

Series D-1985
(CUSIP No. 912827 KM3)

M aturity d a te ........................................................................................................... May 15, 1985
Call d a t e ...................................................................................................................

No provision

Interest coupon r a t e ..............................................................................................

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 d a t e s .........................................................................................

November 15 and May 15
(first payment on November 15, 1980)

Minimum denom ination available......................................................................

$ 1,000

Terms of Sale:
Method of s a le ........................................................................................................

Yield auction

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

None

Preferred allotm ent................................................................................................

Noncompetitive bid for
$ 1 ,000,000 or less

Deposit req u irem en t..............................................................................................

5% of face amount

Deposit guarantee by designated institutions...................................................

Acceptable

Key Dates:
Deadline for receipt of tenders.............................................................................
Settlement date (final payment due)
a) cash or Federal fu n d s...................................................................................

Tuesday, February 26, 1980,
by 1:30 p.m ., EST
Monday, March 3, 1980

b) check drawn on bank within FRB district where submitted ...............

Friday, February 29, 1980

c) check drawn on bank outside FRB district where subm itted ...............

Friday, February 29, 1980

Delivery date for coupon securities....................................................................

Thursday, March 13, 1980




\

Form N Y-ln

IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, February 26, 1980

PRIVACY ACT STATEMENT — The individually identifiable information required on'thw ’a, •*' 1: necessary to [ cr c5! :**■. ■ ..kription to be processed and the securities to be issued. If registered securities
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
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.

TENDER FOR 5-YEAR l^-MONTH TREASURY NOTES OF SERIES D-1985
Dated at

FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
New York, N.Y. 10045

The undersigned hereby offers to purchase the above-described securities in the am ount 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

$ ........................................................... (m aturity value)
or any lesser am ount that may be awarded.
Y ield:...........

NONCOMPETITIVE TENDER

$ ........................................................ (maturity value)
(N o t to e x c e e d S I .0 0 0 .0 0 0 f o r o n e b id d e r th ro u g h a ll s o u r c e s )

at the average price of accepted competitive bids.

(Yield must be expressed with not more than two
decimal places, fo r example, 7.11)

Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and on the
reverse side (i f registered securities are desired, please also com plete schedule on reverse side):

Pieces

Denomination
$

1,000

$

5,000

$

10,000

$

100,000

Maturity value

□ Deliver over the counter to the
undersigned (1)
□ Ship to the undersigned (2)
□ Hold in safekeeping (for member
bank only) in —
□ Investment Account (4)
□ General Account (5)
□ Trust Account (6)
□ Hold as collateral for Treasury Tax and
Loan Account* (7)

Payment will be made as follows:
] By charge to our reserve account (D)
] By cash or check in immediately
available funds (F)
] By surrender of maturing securities (E)
] By charge to my correspondent
bank................................................ (D)
(Name of bank)
□ Special instructions (3)

$ 1,000,000
□ Wire to .....................................................................................................(8)
________________(Exact Receiving Bank Wire Address/Account)________

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.)

W E 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 the closing time for receipt of this tender.
W E FURTHER CERTIFY that we have received tenders from customers in the am ounts 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 prim ary 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)

Insert this tender in
special envelope marked
"Tender for Treasury
Notes or Bonds"

PHONE (INCLUDE AREA CODE)

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 $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 at the same yield 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 bor­
rowings 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 submitted with the tender.
Personal checks submitted with the tender, either as a deposit or for the face amount of the securities, do 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 and received at this
Bank on the payment date (which is generally three business days before the issue date) shown in the circular providing the highlights of this
offering. All checks must be drawn payable to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted.
Settlement on the issue date must be in cash or in other immediately available funds.
5. A recorded message (at the Head Office—Tel. No. 212-791-5823; at the Buffalo Branch—Tel. No. 716-849-5046) provides 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.
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)




^

I

SCHEDv/»_E FOR ISSUE OF REGISTERED TREASURY SECURITIES

SUBSCRIPTION NO.
D E L IV E R Y IN S T R U C T IO N S

P A Y M E N T IN S T R U C T IO N S

S U B S C R I B E R ' S NAME.

n DELIVER OVER THE COUNTER

□

ADDRESS _____________

□

SHIP TO SUBSCRIBER

□

□

OTHER INSTRUCTIONS:

□

BY CHARGE TO OUR
RESERVE ACCOUNT
BY CASH OR CHECK IN

IMMEDIATELY AVAILABLE FUNDS
CI T Y _________________

.STATE .

ZI P

S I G NAT UR E .
RE G I ST R A T I ON

NO. OF
PIECES

I NSTRUCTI ONS

NAME(S)

ID OR S.S. NO.
ADDRESS
CITY

STATE

ID OR S.S. NO.
ADDRESS
STATE

ID OR S.S. NO.
ADDRESS




STATE

1,000

32

5,000

34

10,000

38

100,000

42

1,000,000

99

TOTAL

ZIP

AMOUNT

SERIAL NOS.
(LEAVE BLANK)

TRANS. ACCOUNTING DATE

ISSUE AGENT 12

30

1,000

32

5,000

34

10,000

38

100,000

42

1,000,000

99

TOTAL

F O R F R B USE ONLY

TR. CASE NO.

30

1,000

32

5,000

34

10,000

38

100,000

42

1,000,000

99

TOTAL

LOAN CODE

110-01

TR. CASE NO.

ZIP

N AME(S)

CITY

30

ZIP

NAME(S)

CITY

OENOM.

BY SURRENDER OF
MATURING SECURITIES
H I BY CHARGE TO MY
CORRESPONDENT BANK

FOR F R B USE O N L Y

TR. CASE NO.

UNITED STATES OF AMERICA
TREASURY NOTES OF MAY 15, 1985
SERIES D-1985
DEPARTMENT CIRCULAR
Public Debt Series - No. 9-80

1.
1.

1.

DEPARTMENT.OF THE TREASURY,
OFFICE OF THE SECRETARY,
Washington, February 20, 1980.

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 May 15, 1985, Series D-1985 (CUSIP
No. 912827 KM 3).

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 at the
average price to Federal Reserve Banks, as agents for foreign and
international monetary authorities.
2.
2.

1.

DESCRIPTION OF SECURITIES

The securities will be dated March 3, 1980, and will

bear interest from that date, payable on a semiannual basis on
November 15, 1980, and each subsequent 6 months on May 15 and
November 15, until the principal becomes payable.

They will

mature May 15, 1985, 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.

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 Standard time, Tuesday,
February 26, 1980.

Noncompetitive tenders as defined below will

be considered timely if postmarked no later than Monday,
February 25, 1980.
3.
bid for.

2.

Each tender must state the face amount of securities

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%.

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




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 98.750. That rate of interest will be



r-*- v - 'u

-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

f inal.
5.
5.

1.

PAYMENT AND DELIVERY

Settlement for allotted securities must be made or

completed on or before Monday, March 3, 1980, 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



_ n;_
tender was submitted, which must be received at such institution no
later than:
(a) Friday, February 29, 1980, 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, February 29, 1980, 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 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 expense and risk 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 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,
Fiscal Assistant Secretary.