Full text of Federal Reserve Bank of New York Circulars : 8924. Offering of $4,000,000,000 of 359-Day Treasury Bills

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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
Circular No. 8924
October 3, 1980

Offering o f $4,000,000,000 o f 359-Day Treasury Bills

Dated October 14,1980

Due October 8,1981

To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
F o l l o w i n g is t h e t e x t o f a n o t i c e is s u e d y e s t e r d a y b y t h e T r e a s u r y D e p a r t m e n t :

The Department of the Treasury, by this public notice, invites tenders
for approximately $4,000 million of 359-day Treasury bills to be dated
October 14, 1980, and to mature October 8, 1981 (CUSIP No. 912793
6Z4). This issue will provide about $550 million new cash for the Treasury
as the maturing issue is outstanding in the amount of $3,454 million, in­
cluding $471 million currently held by Federal Reserve Banks as agents
for foreign and international monetary authorities and $1,031 million
currently held by Federal Reserve Banks for their own account.
The bills will be issued for cash and in exchange for Treasury bills
maturing October 14, 1980. Tenders from Federal Reserve Banks for
themselves and as agents for foreign and international monetary
authorities will be accepted at the weighted average price of accepted
competitive tenders. Additional amounts of the bills may be issued to
Federal Reserve Banks, as agents for foreign and international monetary
authorities, to the extent that the aggregate amount of tenders for such
accounts exceeds the aggregate amount of 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 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 Daylight Saving time, Wednesday, October 8, 1980. Form PD
4632-1 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 sub­
mit 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. Each tender must state the amount
of any net long position in the bills being offered if such position is in ex­
cess of $200 million. This information should reflect positions held at the
close of 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 of 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 bills being offered exceeds $200 million.
Payment for the full par amount of the bills applied for must accom­
pany 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.
No 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 of
Federal Reserve Banks and Branches.
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. 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) of accepted competitive bids.
Settlement for accepted tenders for bills to be maintained on the bookentry records of Federal Reserve Banks and Branches must be made or
completed at the Federal Reserve Bank or Branch on October 14, 1980, in
cash or other immediately available funds or in Treasury bills maturing
October 14, 1980. Cash adjustments will be made for differences between
the par value of maturing bills accepted in exchange and the issue price of
the new bills.
Under Sections 454(b) and 1221(5) of the Internal Revenue Code of
1954 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 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 of the Treasury Circulars, 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.m ., Eastern Daylight Saving time, Wednesday, October 8 , 1980, 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 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 fo r 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 fu n d s or in Treasury securities maturing on or before the issue date.




A nthony M. Solomon ,
President.

GB 6 4 .2 ( 6 /7 9 )

IMPORTANT— This is a standard form. Its terms are subject to change at any time by the Treasury.
This tender .will be construed as a bid to purchase the securities for which the Treasury has outstand*
ing an invitation for tenders on the date received by the Federal Reserve B&nk of New York or its
Buffalo Branch. (See reverse side for further instructions.)
T E N D E R F O R 12-M O N T H B O O K -E N T R Y T R E A S U R Y B IL L S
( F o r U se in S u b s c r ib in g T h r o u g h a F in a n c ia l I n s tit u tio n )

PRIVACY ACT STATEMENT: 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.

Do Not Use This Form for D irect Subscriptions to the Treasury
To

F

ederal

R

eserve

B

ank

of

N

ew

Y

ork

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 Series, 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:
Do not fill in both Competitive and
Noncompetitive tenders on one form

COMPETITIVE TENDER

$........................................................ (maturity value)
or any lesser amount that may be awarded.
Price: ................................................ per 100.
(Price must be expressed with not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$........................... ............................ (maturity value)
(N ot to exceed $500,000 for one bidder through all sources)

at the average price of accepted competitive bids.

Certification by Competitive Bidders: The Bidder’s □ 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—
Q 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:
Safekeeping or Delivery Instructions
(N o changes will be accepted)

Book-Entry—
□ 1. Hold in safekeeping at FRBNY (for member bank only) in—
□ Investment Account (4)
□ General Account (5)
□ Trust Account (6)
□ 2. Hold as collateral for Treasury Tax and Loan Account* (7)
□ 3. Wire to _______ _________ __________ ________ _______________
(Exact Receiving Bank Wire Address/Account)

Payment Instructions
Payment will be made as follows:
□ By charge to our reserve account (D)
Q By check in immediately available
funds

□ By surrender of eligible maturing (E)
securities
□ By charge to my correspondent bank

Definitive—

ID)
(Name of Correspondent)

□ 4. Issue in definitive formf (in $100,000 denominations only) and—
□ Deliver over the counter to the undersigned
□ Ship to the undersigned

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

•The undersigned certifies that the allotted securities will be owned solely by the undersigned.
fThis tender is submitted by the undersigned for .. ..... .......................................................... , 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

Subscriber (Please Print or Type)

Address

In sert this tender

in envelope
marked “Tender for
Treasury Bills”

City

Phone (Include Area Code)

State

Zip Code

Signature of Subscriber 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)

(Name of customer)
(OVEH)

INSTRUCTIONS:
1. No 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 at the some 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 erf 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. 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, is mate­
rial, the tender may be disregarded.