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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent o f the United States Circular No. 9005 January 19, 1981 '] Offering of $4,500,000,000 of 364-Day Treasury Bills Dated January 29,1981 Due January 28,1982 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice issued today by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for approximately $4,500 million of 364-day Treasury bills to be dated January 29, 1981, and to mature January 28, 1982 (CUSIP No. 912793 7F7). This issue will provide about $500 million new cash for the Treasury as the maturing 52-week bill was originally issued in the amount of $3,989 million. The bills will be issued for cash and in exchange for Treasury bills maturing January 29, 1981. In addition to the maturing 52-week bills, there are $7,930 million of maturing bills which were originally issued as 13-week and 26-week bills. The disposition of this latter amount will be announced next week. Federal Reserve Banks as agents for foreign and international monetary authorities currently hold $2,741 million, and Federal Reserve Banks for their own account hold $2,313 million of the maturing bills. These amounts represent the combined holdings of such accounts for the three issues of maturing bills. 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 ac cepted 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. For purposes of determining such additional amounts, foreign and international monetary authorities are considered to hold $652 million of the original 52-week issue. 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 Standard time, Thursday, January 22, 1981. Form PD 4632-1 should be used to submit tenders for bills to be maintained on the bookentry 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 January 29, 1981, in cash or other immediately available funds or in Treasury bills maturing January 29, 1981. 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 Standard time, Thursday, January 22, 1981, at the Securities Department o f this Bank’ s Head O ffice, at our Buffalo Branch, or at the Bureau o f the Public Debt. The enclosed form should be used for submitting tenders through a financial institution. Forms for submitting tenders directly to the Treasury are available from the Government Bond Division o f this Bank. Tenders not requiring a deposit may be submit ted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Payment fo r the Treasury hills cannot be made by credit through the Treasury Tax and Loan A ccount. Settlement must be made in cash or other immediately available fun d s or in Treasury securities maturing on or b efore the issue date. ANTHONY M . SOLOMON, President. ( Gfl 94.2 9/79) ;:, 1? C R T ANT——This la a standard form* It* term* are subject to change at any time by the Treasury. This tender wiil be construed as a bid to purchase the securities for which the Treasury has outstand ing an invitation-for-tenders-otr-the date-received by1-the-Federal-Reserre Bank of i’Vw York-or its Buffalo Branch. (See reverse side for further instructions.) TENDER FOR 12-MONTH BOOK-ENTRY TREASURY BILLS (For Use in Subscribing Through a Financial Institution) Do Wot Use Thu Form for Direct Subscriptions to the Treasury To F ederal R eserve Ba .n x or N ew Y ork Fiscal Agent of the United States New York. N Y. 10045 12 * Zb _ .......................................................... 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 :he public norice issued bv 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 .Voneompettth't tenders on one form C O M P E T IT IV E T E N D E R S .......................................... - ....... ( maturity vaiue) <>r any lesser amount that may be awarded. N O N C O M P E T IT IV E T E N D E R $................................ ............................ ('maturity value) (X»t to exceed VOODOO for one bidder through ail sources) Pr.ce: .................................................. per 100. :u the average price of accepted competitive bids. (Price must be expressed unth not more than three decimal places, for tsample, 99.925) Certification by Competitive Bidders: The Bidder’s □ Customer’s □ 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 12:30 p.m. Eastern time on the day of this auction, was— w d * 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 Instruction* IfiiiMciioii will not be completed iuiIcm all required data it luriiultcil. u Payment Instruction* (No changes unii be accepted) 3«ok.£otrr— G 1- Hold in safekeeping at FRBNY (for rntmbar bank only) in— G Investment Account |4| Q General Account (31 □ Trust Account IS) □ L Hold as collateral for Treasury Tax and Loan Account* (7) □ 1 W irt t o _________________________________________________ (Exact Rccexvmf Bank Wire Address/Account) JSI Payment wiil be made as follows: G By charge to oar reserve account (01 G By check in immediately avaiiadU funds G By hitrender at eligible manning ;JJ securities G By charge to my correspondent hr.ir flsfiu irtre (Of G 4. Issue in definitive (orrut (in 1100.000 denominations only) and— G Deliver over the counter to the undersigned G Ship to the undersigned (Payment cannot be made through Treasury Tom and Loan Account) •The undersigned certsnes that the allotted securities will be owned solely by the undersigned. fThis tender is submitted by the undersigned far ............................ (NatBeatf mnxr) ............ - which is required by law or regulation ( --------------------------------------------------------------------) to hold or pledge securities in definitive form. (Separate tender (.GUmoanaan) forms must be submitted for each such entity.) S'uw o* iaSMni»r i Plasm Prim or Ttv» 1 Aadrnrn Inaart this tmndar in envelope mar had “T en d er fo r Treasury 3 ills ' dry ?hamm i [nciurta Ara Canal | Zip Coo* 1 ^ Statei iuuuft oi inbtr or AuUserwS Sicnarare 1 TIU# ai Autfeartn* Signor 1 i ! Banking institutions mbraitung tenders for customer account must list customers' names on lines below or on an attached n der; .V . a . oi cum I IN ST R U C TIO N S: 1. No sender for leas than S10.000 will be considered, end each tender must be for a multiple of 15.000 (maturity value). 2. Only banking nurittrdona, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrcwtnfs thereon. may submit tenders for customer account; in dom« so. they may consolidate competitive tenders at tk* somt pnet (except that a seperate tender must be suomitted for each customer whose net long position in the bill being offered exceeds COO million) and may consolidate noncompetitive tenders. provided a list is attached showing the name of eacn bidder and '-he amount bid for his account. Others will not be permitted to inbmrt tenders except tor their own account. 3. If the person making the tender is a corporation, the tender ihouid be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by in 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 hms. who snould sign in the form " _________________ _________________________________ _ a copartnership, by --------—— — ——---------------------------------------— , a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trjst 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 Baxik 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.