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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 8836 May 22, 1980 TREASURY TO A UCTIO N $3,000 MILLION OF 5-YEAR 2Vi-M ONTH NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued yesterday by the Treasury Department: The Department of the Treasury will auction $3,000 million of 5-year 2 '/2 -month notes to raise new cash. Additional amounts of the notes may be issued to Federal Reserve Banks as agents for foreign and international monetary authorities at the average price of accepted competitive tenders. The Treasury will postpone this auction unless it has assurance of Congressional action on legislation to raise the temporary debt ceiling before the scheduled auction date of May 28. 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 Daylight Saving time, Wednesday, May 28, 1980, at the Securities Department of its Head Office and at its Buffalo Branch. All competitive tenders, 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 noncompetitive tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than May 27. 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 with a tender may be in the form of a personal check, which need not be certified, an official bank check, or a Federal funds check (a check drawn by a commercial bank on its Federal Reserve account). All checks must be drawn payable to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. Payment may also be made in cash or in Treasury securities maturing on or before the issue date of the securities being purchased. Recorded messages provide information about 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 calling, at the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016. A nthony M. Solomon , President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 5-YEAR 2 V2 -MONTH NOTES TO BE ISSUED JUNE 3, 1980 (Delivery date fo r coupon securities is June 13, 1980) Amount Offered: To the p u b lic ................................................................. $3,000 million Description of Security: Term and type of security............................................. 5-year 2 '/2 -month notes Series and CUSIP designation..................................... Series E-1985 (CUSIP No. 912827 KT8) Maturity d a te ................................................................. August 15, 1985 Call d a te ......................................................................... 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 te s ................................................ February 15 and August 15 (first payment on February 15, 1981) Minimum denomination available.............................. Terms of Sale: Method of sa le ............................................................... $ 1,000 Yield auction Accrued interest payable by investor.......................... None Preferred allotm ent....................................................... Noncompetitive bid for $1,000,000 or less Payment by non-institutional in v esto rs.................... . Full payment to be submitted with tender Deposit guarantee by designated institutions............ . Acceptable Key Dates: Deadline for receipt of tenders...................................... Settlement date (final payment due from institutions) a) cash or Federal funds............................................ Wednesday, May 28, 1980, by 1:30 p.m ., EDST Tuesday, June 3, 1980 b) readily collectible check........................................ Friday, May 30, 1980 Delivery date for coupon securities.............................. Friday, June 13,1980 UNITED STATES OF AMERICA TREASURY NOTES OF AUGUST 15, 1985 SERIES E-1985 DEPARTMENT CIRCULAR Public Debt Series - No. 18-80 DEPARTMENT OF THE TREASURY, OFFICE OF THE SECRETARY, Washington, May 22, 1980 1. INVITATION FOR TENDERS 1. 1. The Secretary of the Treasury, under the authority of the Second Liberty Bond Act, as amended, invites tenders for approximately $3,000,000,000 of United States securities, designated Treasury Notes of August 15, 1985, Series E-1985 (CUSIP No. 912827 KT 8). 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. 1. 2. DESCRIPTION OF SECURITIES The securities will be dated June 3, 1980, and will bear interest from that date, payable on a semiannual basis on February 15, 1981, and each subsequent 6 months on August 15 and February 15, until the principal becomes payable. They will mature August 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 - 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. SALE PROCEDURES 3. 1. 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, Wednesday, May 28, 1980. Noncompetitive tenders as defined below will be considered timely if postmarked no later than Tuesday, May 27, 1980. 3. 2. Each tender must state the face amount of securities bid for. 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 nay 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 full payment for the amount of securities applied for (in the form of cash, maturing Treasury securities or readily collectible checks), or by a payment guarantee of 5 percent of the face amount applied for, from 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 -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 y-ield 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. 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 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. PAYMENT AND DELIVERY 5. 1. Settlement for allotted securities must be made at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt, wherever the tender was submitted. Settlement on securities allotted to institutional investors and to others whose tenders are accompanied by a payment guarantee as provided in Section 3.5., must be made or completed on or before Tuesday, June 3, 1980. Payment in full must accompany tenders submitted bv all other investors. 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 -5- general regulations governing United States securities; or by check drawn to the order of the institution to which the tender was submitted, which must be received from institutional investors no later than Friday, May 30’> 1980 . When payment has been submitted with the tender and the purchase price of allotted securities is over par, settlement for the premium must be completed timely, as specified in the preceding sentence. When payment has been submitted with the tender and the purchase price is under par, the discount will be remitted to the bidder. 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 has not been completed on time, an amount of 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 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 delivered - 6 - 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 4. 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. 1. 6. 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. Form N Y - l n IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Wednesday, May 28, 1980 PRIVACY ACT STATEMENT — 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 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 2 V2 -M ONTH TREASURY NOTES OF SERIES E-1985 Dated at FED ER A L RESERVE BANK OF NEW YORK Fiscal Agent o f the United States New York. N.Y. 10045 The undersigned hereby offers to purchase the above-described securities in the amount indicated below, and agrees to make payment therefor at your Bank in accordance with the provisions of the official offering circular. D o not f i ll in both C om petitive an d N on com petitive ten ders on one fo rm COMPETITIVE TENDER NONCOMPETITIVE TENDER $ .......................................................... (maturity value) or any lesser amount that may be awarded. $ .......................................................... (maturity value) Yield:.................. at the average price of accepted competitive bids. ( N o t to e x c e e d $ 1 ,0 0 0 ,0 0 0 f o r o n e b id d e r th ro u g h a ll so u r c e s) ( Y ie ld m u s t b e e x p r e s s e d w ith n o t m o r e th a n tw o d e c im a l p la c e s , f o r e x a m p le , 1 0 .0 6 ) 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): □ Pieces D enom ination $ 1,000 $ 5,000 $ 10,000 $ 100,000 M aturity value □ □ □ Paym ent will be made as follow s: Q By charge to our reserve account (D) | | By cash or check in im m e d ia te ly a v a ila b le f u n d s (F) Q] By surrender o f maturing securities (E) [~] By charge to my correspondent b a n k ......................................................... (D ) _______________ (N am e o f bank)________ Deliver over the counter to the undersigned (1) Ship to the undersigned (2) Hold in safekeeping (for member bank only) in — □ Investment Account (4) □ G eneral Account (5) □ Trust Account (6) Hold as collateral for Treasury Tax and Loan A cco u n t* (7) □ Special instructions (3) $ 1,000,000 □ Wire t o ......................................................................................................................... (8) ___________________ (Exact Receiving Bank Wire A ddress/A ccount) 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.) WE 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. 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 payments required by 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 In s e rt th is ten d er in sp ecial envelope m arked “ Te n d e r fo r Tre a su ry N otes o r B o n d s” OF S U B S C R IB E R (PLE A SE P R IN T OR T Y P E ) ADDRESS STATE C IT Y PHONE T IT L E (IN C L U D E AREA OF A U T H O R IZ E D CODE) SIG N A T U R E OF S U B S C R I B E R OR A U T H O R IZ E D ZIP SIG N A T U R E S IG N E R (Institutions subm itting tenders for custom er account must list custom ers’ names on lines below or on an attached rider.) ( N a m e o f c u st o me r ) ( N a m e o f c us to me r) IN ST R U C T IO N S: 1. N o tender for less than $1,000 will be considered; and each tender must be for a m ultiple o f $1,000 (maturity value). 2. O nly banking institutions, and dealers w ho m ake primary markets in G overnm ent securities and report daily to this Bank their positions with respect to G overnm ent securities and borrowings thereon, m ay subm it tenders for custom er account; in doing so, they m ay consolidate com petitive tenders a t th e s a m e y i e l d and may con solid ate noncom petitive tenders, provided a list is attached show ing the name o f each bidder and the am ount bid for his account. O thers will not be permitted to subm it tenders except for their own account. 3. Tenders will be received w ithout deposit from com m ercial and other banks for their own account, federally insured savings and loan associations, States, political subdivisions or instrum entalities thereof, public pension and retirement and other public funds, international organizations in which the United States holds m em bership, foreign central banks and foreign states, dealers w ho m ake primary m arkets in G overnm ent securities and report daily to the Federal Reserve Bank o f New York their positions with respect to G overnm ent securities and borrowings thereon, and G overnm ent accounts. Tenders from others must be accom panied by full paym ent o f the face am ount o f the securities applied for. 4. Paym ent with a tender m ay be in the form o f a personal check, which need not be certified, an official bank check, or a Federal funds check (a check drawn by a com m ercial bank on its Federal Reserve account). All checks must be drawn payable to the Federal Reserve Bank o f New York; c h e c k s e n d o r s e d to th is B a n k w ill n o t b e a c c e p te d . Paym ent m ay also be m ade in cash or Treasury securities maturing on or before the issue date o f the securities being purchased. 5. For inform ation on currently available Treasury o ffe r in g s, call our 24-hour recorded m essage at (212) 791-7773 at the H ead O ffice or (716) 849-5046 at the B u ffalo Branch. For re su lts o f recent Treasury auctions, call (212) 791-5823 at the H ead O ffice or ( 7 i 6) 849-5046 at the B u ffalo Branch. For other inform ation about Treasury securities, call (212) 791-6619 at the H ead O ffice or (716) 849-5016 at the B u ffalo Branch during norm al business hours. 6. If the language o f this tender is changed in any respect that, in the opinion o f the Secretary o f the Treasury, is m aterial, the tender may be disregarded. (O V E R ) SUBSCRIPTION NO SC H ED U LE FOR ISSU E OF REGISTERED TREASURY SECU RITIES D E L I V 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 N A M E _______________________________________________________ □ D E L IV E R O V E R T H E C O U N T E R ADDRESS □ S H IP T O S U B S C R IB E R □ □ OTHER □ C ITY _____________________________________________________________________ _________________________________________ S T A T E ___________________ Z I P IN S T R U C T IO N S : NO. OF PIECES INSTRUCTIONS NAME(S) ID OR S.S. NO. ADDRESS CITY STATE ID OR S.S. NO. ADDRESS CITY STATE ID OR S.S. NO. ADDRESS STATE 30 1,000 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL ZIP USE O N LY TRANS. A C C O U N T IN G D A T E B Y C A S H O R C H E C K IN IMMEDIATELY AVAILABLE FUNDS BY SURRENDER OF M A T U R IN G S E C U R I T I E S IS S U E A G E N T AMOUNT SERIAL NOS. (LEAVE BLANK) FOR F R B 30 1,000 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL USE O N L Y T R . C A S E NO. 30 1,000 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL 12 L O A N C O D E 110-01 T R. C A S E NO. ZIP N AME(S) CITY DENOM. ZIP NAME(S) BY CHARGE TO OUR RESERVE ACCO UNT FRB r i B Y C HAR G E TO MY CORRESPONDENT BANK S I G N A T U R E ___________________________________________________________________ REG ISTR ATIO N □ FOR T R . C A S E NO.
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