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F E D E R A L R E S E R V E BA N K O F N EW Y O R K Fiscal Agent of the United States for the Tennessee Valley Authority r T V A Offering No. 6 6 * 1 L November 16, 1970 J Invitation for Bids on $130,000,000 of 118-Day TENNESSEE V A L L E Y A U T H O R IT Y P O W E R NOTES Dated November 27,1970 Due March 25,1971 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: Follow ing is the te x t of an invitation authorized by the T ennessee Valley A uthority to be issued today to certain commercial banks, tru s t companies, and dealers in investm ent se cu ritie s: Tennessee Valley Authority ( “TV A ”) hereby invites bids for the purchase to the. aggregate amount of $130,000,000 of its Power Notes ( “Notes”) dated November 27, 1970, due March 25, 1971. The Notes will be issued on a discount basis and at maturity their face amount will be payable without interest at the Head Office of the Federal Reserve Bank of New York. They will be issued in bearer form in denominations of $5,000, $10,000, $100,000, and $1,000,000 (maturity value). Denomina tional exchanges may be effected at the Head Office of the Federal Reserve Bank of New York. Bids will be received at the Securities Department of the Head Office of the Federal Reserve Bank of New York up to the closing hour, 1 :30 p.m., Eastern Standard time, Tuesday, November 24, 1970. No bids will be accepted for a face amount of Notes less than $1,000,000. Bids must be for an even multiple of $5,000 and 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. It is urged that bids be made on the printed forms and forwarded in the special envelopes which will be supplied by the Federal Reserve Bank of New York upon application therefor. Invitations for bids are being issued to certain commercial banks, trust companies, and dealers in investment securities. Other commercial banks, trust companies, or recognized dealers in invest ment securities desiring to bid may do so on bid forms obtained from the Federal Reserve Bank of New York. Bids submitted hereunder must be for the principal account of the bidder and not for the account of others. Immediately after the closing hour, bids will be opened at the Federal Reserve Bank of New York, following which public announcement will be made by TVA of the amount and price range of accepted bids. Those submitting successful bids will be informed by the Federal Reserve Bank of New York of the acceptance thereof. TVA expressly reserves the right to accept or reject any or all bids, in whole or in part, and the action of TVA in any such respect shall be final. Settlement for accepted bids must be made at the Federal Reserve Bank of New York on November 27, 1970 in cash or other immediately available funds. The Notes will be issued to assist in providing capital for the power program of TVA. They will be negotiable. They will be payable solely from TVA’s Net Power Proceeds (but may, at the option of TVA, be paid from the proceeds of refunding obligations or other funds legally available for such payment). Net Power Proceeds are defined in, and required to be applied according to, the Basic Tennessee Valley Authority Power Bond Resolution ( “Basic Resolution” ). The Notes will not be obligations of, nor will payment thereof be guaranteed by, the United States of America. Income derived from the Notes will be subject to Federal income taxation; but in the opinion of the General Counsel for TVA, under present laws and decisions, the Notes will be exempt from personal property taxes and the income therefrom will be exempt from income taxes, now or hereafter imposed, by any State or local taxing authority. Circulars describing Tennessee Valley Authority and Power Notes issued by it, as well as copies of the Basic Resolution and periodic financial reports, may be obtained upon request directed to TV A ’s Director of Information, Knoxville, Tennes see, or to the Federal Reserve Bank of New York. T his B ank will receive bids in accordance w ith the foregoing invitation up to 1 :30 p.m., E astern S tandard time, T uesday, N ovem ber 24, 1970, at the Securities D epartm ent of its H ead Office. Please use the form on the reverse side of this notice to subm it bids and retu rn them sealed in the enclosed envelope m arked “ Bid for T V A P ow er N otes.” Bids may be subm itted by telegraph, subject to w ritten confirm ation; they may not be subm itted by telephone. Settle m ent m ust be made in im mediately available funds at this Bank on F riday, N ovem ber 27, 1970. A lfred H ayes, President. ( over) No................... Bid for 118-Day Tennessee Valley Authority Power Notes Dated November 27, 1970 Due March 25,1971 D ated at 1970 To F e d e r a l R ese r v e B a n k o f N e w Y o r k , Fiscal A gent of the U n ited S tates for the Tennessee V alley A u th o rity : P u rsu a n t to the provisions of the Invitation for Bids issued by Tennessee Valley A u thority inviting bids for the above-described P ow er N otes and p rinted on the reverse side hereof, the undersigned hereby offers to purchase such P ow er N otes in the am ount indicated below, and agrees to m ake paym ent therefor a t your B ank on o r before the issue date a t the price indicated b elow : $ .......................................................... (m atu rity value) or any lesser am ount th at m ay be aw arded. P r i c e ...........................................p er 100 (Price must be expressed with not more than three decimal places, for example, 99.925) S ubject to allotm ent, please issue, deliver, and accept paym ent for the N otes as indicated below : Pieces Denominations M aturity Value □ 1. Deliver over the counter to the 5,000 □ □ 2. Ship to the undersigned 3. Hold in safekeeping (for account 10,000 □ 4. Special instructions: undersigned $ of member bank only)* 100,000 , 1 000,000 T otal * If this item is checked, the undersigned hereby certifies that the N otes to be held in safekeeping will be owned solely by the undersigned. Paym ent will be made as follows: □ By check in immediately available funds □ By charge to our reserve account □ By wire transfer from another Federal Reserve Bank or Branch Name of subscriber (P lease print) By ............................... (Authorized corporation officer or partner) T itle .......................... A ddress .................... IN S T R U C T IO N S : 1. Submit all bids sealed in an envelope marked “Bid for TVA Power Notes. 2. No bid for less than $1,000,000 will be considered and each bid must be for an even multiple of $5,000 (maturity value). 3. If the language of a bid is changed from the foregoing in any respect, which, in the opinion of the Power Financing Officer of Tennessee Valley Authority, is material, the bid may be disregarded.
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