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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9128 August 17, 1981 TREASURY TO AUCTION $4,750 MILLION OF 2-YEAR NOTES To A ll Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department: The Department of the Treasury will auction $4,750 million of 2-year notes to refund $3,154 million of notes maturing August 31, 1981, and to raise $1,596 million new cash. The $3,154 million of maturing notes are those held by the public, including $995 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $575 million of the maturing securities that may be refunded by issuing additional amounts of the new notes at the average price of accepted competitive tenders. Additional amounts of the new security may also be issued at the average price 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 securities held by them. Effective with this 2-year note, the Treasury is removing the ban on participation in an auction of a coupon security by anyone who has contracted to purchase or sell the security prior to the deadline for receipt of tenders. This prohibition, which has been in effect for notes and bonds since July 13, 1977, is being removed to eliminate an unnecessary regulation which is believed to hinder the efficient adjustment of market prices to announcements of Treasury financing. The Treasury continues to reserve the right to change, at its discretion, the maturity, size, and timing of all security offerings. 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). Enclosed is a copy of a new standard form for your use in submitting tenders for this offering (or for any subsequent offering of 2-year notes). This Bank will receive tenders up to 1:30 p.m ., Eastern Daylight Saving time, Thursday, August 20,1981, at the Securities Department of its Head Office and at its Buffalo Branch. A ll competitive tenders, whether transm itted 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 A ugust 19. 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 depository institution 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 inform ation 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. So l o m o n , President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED AUGUST 31, 1981 (Delivery date fo r coupon securities is September 10, 1981) Amount Offered: To the public.................................................. $4,750 million Description of Security: Term and type of security.................................. 2-year notes Series and CUSIP designation............................ Series U-1983 (CUSIP No. 912827 MF6) Maturity date.................................................. August 31, 1983 Call date........................................................ Interest coupon rate........................................ No provision To be determined, based on the average of accepted bids Investment yield.............................................. . Premium or discount........................................ . To be determined at auction Interest payment dates..................................... . Minimum denomination available....................... . February 28 and August 31 Terms of Sale: Method of sale................................................. Accrued interest payable by investor..................... To be determined after auction $5,000 Yield auction None Preferred allotment........................................... Noncompetitive bid for $1,000,000 or less Payment by non-institutional investors................. 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.................................. b) readily collectible check............................... Delivery date for coupon securities....................... Thursday, August 20, 1981, by 1:30 p.m., EDST Monday, August 31, 1981 Thursday, August 27, 1981 Thursday, September 10, 1981 r Form 2N-n 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 2-year notes for which the Treasury has outstanding an invitation for tenders. TENDER FOR 2-YEAR TREASURY NOTES 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. To F e d e r a l R eser v e Ba n k o f N ew Y ork Dated at Fiscal Agent of the United States New York, N.Y. 10045 , 19 Pursuant to the provisions of the public notice issued by theTreasury Department inviting tenders for the current offering of 2-year Treasury notes, the undersigned hereby offers to purchase such currently offered Treasury notes in the amount indicated below, and agrees to make payment therefor at your Bank in accordance with the provisions of the official offering circular. Do not fill in both Competitive and Noncompetitive tenders on one form 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. (Not to exceed $1,000,000 fo r one bidder through all sources) (Yield must be expressed with not more than two decimal places, fo r example, 11.06) 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 Denomination XXX XXXXXX $ 5,000 $ 10,000 $ 100,000 Maturity value XXX XXX $ 1,000,000 XXX □ 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: 0 By charge to our reserve account (D) By cash or check in immediately available funds (F) Q By surrender of maturing securities (E) 0 By charge to my correspondent bank.................................................. (D) (Name of bank) □ Special instructions (3) □ Wire to ...................................................................................................... (8) (Exact Receiving Bank Wire Address/Account) T otals *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 OF SUB SC RIB ER ( P L E A S E P R IN T OR T Y P E ) Insert this tender in special envelope marked “Tender fo r Treasury Notes or Bonds ” PHONE (I N C L U D E AREA COD E) SIGN AT URE OF SUBS CR IBER OR AU TH OR IZ ED SIGNATURE T I T L E OF AU TH OR IZ ED SIGNER (Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider.) ( N a m e o f customer) ( N a me o f customer) INSTRUCTIONS: 1. No tender for less than $5,000 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 same yield and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his or her 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 borrowings thereon, and Government accounts. Tenders from others must be accompanied by full payment of the face amount of the securities applied for. 4. 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 Treasury securities maturing on or before the issue date of the securities being purchased. 5. For information on currently available Treasury offerings, call our 24-hour recorded message at (212) 791-7773 at the Head Office or (716) 849-5046 at the Buffalo Branch. For results of recent Treasury auctions, call (212) 791-5823 at the Head Office or (716) 849-5046 at the Buffalo Branch. For other information about Treasury securities, call (212) 791-6619 at the Head Office or (716) 849-5016 at the Buffalo Branch during normal business hours. 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) SUBSCRIPTION NO. SCHEDULE FOR ISSUE OF REGISTERED TREASURY SECURITIES DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS S U B S C R I B E R ’S N A M E . □ DELIVER OVER THE COUNTER □ ADDRESS □ SHIP TO SUBSCRIBER BY CHARGE TO OUR RESERVE ACCOUNT □ BY CASH OR CHECK IN □ OTHER INSTRUCTIONS: □ C ITY ______________ ____________________ IM M EDIA TELY A V A IL A B L E FUNDS .STATE . ZIP SIGNATURE. R E G ISTR A TIO N NO. OF PIECES INSTRUCTIONS NAME( S) I D O R S. S. NO . DENOM. 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL AMOUNT SERIAL NOS. (LEAVE BLANK) BY SURRENDER QF MATURING SECURITIES □ BY CHARGE TO MY CORRESPONDENT BANK FO R F R B USE TRANS. A CCOUNTIN G DATE IS SU E A G E N T 12 STATE ZIP N AME(S) F O R F R B USE O N LY T R . C A SE NO. 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL I D O R S. S. N O . ADDRESS _________________________ CITY STATE T R . C A S E NO. ZIP N AME(S) 32 5,000 34 10,000 38 100,000 42 1,000,000 99 TOTAL I D O R S. S. N O . ADDRESS CITY STATE ZIP LOAN CODE 110-01 ADDRESS CITY O N LY T R . C A S E NO. PRELIMINARY CIRCULAR UNITED STATES OF AMERICA TREASURY NOTES OF AUGUST 31, 1983 SERIES U-1983 DEPARTMENT CIRCULAR Public Debt Series - No. 26-81 1. 1. 1. DEPARTMENT OF THE TREASURY, OFFICE OF THE SECRETARY, Washington, August 17, 1981. INVITATION FOR TENDERS The Secretary of the Treasury, under the authority of the Second Liberty Bond Act , as amended , invites tenders for approximately $4 ,750 ,000 ,000 of United States securities , desig nated Treasury Notes of August 31 , 1983 , Ser-ies U-1983 (CUSIP No. 912827 MF 6). 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 to Government accounts and Federal Reserve Banks slor their own account in exchange for maturing Treasury securities. Additional amounts of the new securities may also be issued at the average price 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 securities held by them. 2. DESCRIPTION OF SECURITIES 2. 1. The securities will be dated August 31, 1981, and will bear interest from that date , payable on a semiannual basis on February 28 , 1982 , and each subsequent 6 months on August 31 and February 28 until the principal becomes payable. They will mature August 31, 1983, and will not be subject to call for redemption prior to maturity. In the event an interest payment date or the maturity date is a Saturday, Sunday, or other nonbusiness day, the interest or principal is payable on the next-succeeding business day. 4 PRELIMINARY CIRCULAR 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 $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 denomina tions 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 Daylight Saving time, Thursday, August 20, 1981. Noncompetitive tenders as defined below will be considered timely if postmarked no later"than Wednesday, August 19, 1981. 3. 2. Each tender must state the face amount of securities bid for. The minimum bid is $5,000 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. Noncom petitive 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. 3. 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 Gov ernment securities and teport 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. 4. 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 accom panied by full payment for the amount of securities applied for (in the form of cash , maturing Treasury securities , or readily collect ible checks) , or by a payment guarantee of 5 percent of the face amount applied for, from a' commercial bank or a primary dealer. 3. 5. 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 determina tion 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 99.500. That rate of interest will be paid on all of the securities. Based on such interest rate , the price on each competitive tender - 4 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 non competitive tenders received would absorb all or most of the offer ing , 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. 6. 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. RESERVATIONS The Secretary of the Treasury expressly reserves the 1. 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 final. 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 3.4. must be made or completed on or before Monday, August 31, 1981. Payment in full must accompany tenders submitted by 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 general regulations governing United States # H 5 securities; or by check drawn to the order of the institution to which the tender was submitted , which must be received from insti tutional investors no later than Thursday, August 27, 1981. 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 indi vidual's social security number or an employer identification number) is not furnished. When payment is made in securities, a cash adjust ment will be made to or required of the bidder for any difference between the face amount of securities presented and the amount pay able on the securities allotted. 5. 2. In every case where full payment has n o t ‘been completed on time , an amount of up to 5 percent of the face amount of secu rities allotted , shall , a.t 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 regis trations 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 (secu rities 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 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 certifi cates. 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 m offering. provided. Public announcement of such changes will be promptly Gerald Murphy, Acting Fiscal Assistant Secretary.
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