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At F E D E R A L R E S E R V E BANK O F N E W YORK Fiscal Agent of the United States for the Tennessee Valley Authority TTVA Offering No. 1 0 0 T L September 17, 1973 J Invitation for Bids on $150,000,000 of 126-Day TENNESSEE VALLEY AUTH ORITY POWER NOTES Dated September 27, 1973 Due January 31, 1974 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: Following is the text of an invitation authorized by the Tennessee Valley Authority to be issued today to certain commercial banks, trust companies, and dealers in investment securities: Tennessee V alley Authority ( “ T V A ” ) hereby invites bids for range of accepted bids. Those submitting successful bids will be the purchase to the aggregate amount of $150,000,000 of its Power informed Notes ( “ Notes” ) dated September 27, 1973, due January 31, 1974. acceptance thereof. T V A The Notes will be issued on a discount basis at the Head Office or reject any or all bids, in whole or in part, and the action of of the Federal Reserve Bank of N ew Y ork and at maturity their T V A in any such respect shall be final. face amount will be payable without interest at any Federal Reserve Bank or Branch. They will be issued in bearer form in denomi nations of $5,000, $10,000, $100,000, and $1,000,000 (maturity value). Denominational exchanges may be effected at the Head Office of by the Federal Reserve Bank of New Y ork of the expressly reserves the right to accept Settlement for accepted bids must be made at the Federal Reserve Bank of N ew Y ork on September 27, 1973 in cash or other immediately available funds. The Notes will be issued to assist in providing capital for the Federal Reserve Bank of N ew York. Bids will be received at the Securities Department of the Head Office of the Federal Reserve Bank of N ew Y ork up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Tuesday, September 25, 1973. N o 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 N ew Y ork upon application therefor. the power program of TVA. will be payable solely from They will be negotiable. T V A ’s N et Power Proceeds They (but may, at the option of T V A , be paid from the proceeds of refunding obligations or other funds legally available for such payment). N et 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 Invitations for bids are being issued to certain commercial income taxation; but in the opinion of the General Counsel for banks, trust companies, and dealers in investment securities. Other T V A , under present laws and decisions, the Notes will be exempt commercial banks, trust companies, or recognized dealers in invest from personal property taxes and the income therefrom will be ment securities desiring to bid may do so on bid forms obtained exempt from from the Federal Reserve State or local taxing authority. Bank of N ew York. Bids submitted hereunder must be for the principal account of the bidder and not for the account of others. income taxes, now or hereafter imposed, by any Circulars describing Tennessee Valley Authority and Power Notes issued by it, as well as copies of the Basic Resolution and Immediately after the closing hour, bids will be opened at periodic financial reports, may be obtained upon request directed the Federal Reserve Bank of N ew York, following which public to T V A ’s Director of Information, Knoxville, Tennessee, or to announcement will be made by T V A the Federal Reserve Bank of New Y ork. of the amount and price This Bank will receive bids in accordance with the foregoing invitation up to 1 :30 p.m., Eastern Daylight Saving time, Tuesday, September 25, 1973 at the Securities Department of its Head Office. Please use the form on the reverse side of this notice to submit bids and return them sealed in the enclosed envelope marked “ Bid for T V A Power Notes." Bids may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settle ment must be made in immediately available funds at this Bank on Thursday, September 27, 1973. A lfred H ayes, President. ( over ) No........................... Bid for 126-Day Tennessee Valley Authority Power Notes Dated September 27, 1973 Due January 31, 1974 Dated at 1973 To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States for the Tennessee Valley Authority: Pursuant to the provisions of the Invitation for Bids issued by Tennessee Valley Authority inviting bids for the above-described Power Notes and printed on the reverse side hereof, the undersigned hereby offers to purchase such Power Notes 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 : $ .................................................... (maturity value) or any lesser amount that may be awarded. P r ic e ...................................... per 100 (Price must be expressed with not more than three decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the Notes as indicated below: Pieces M aturity V alue D enom inations $ □ 1. D eliver over the counter to the undersigned □ □ 2. Ship to the undersigned 5,000 3. H o ld in safekeeping (fo r account of m em ber bank o n ly )* 10,000 □ 4. Special instructions: 100,000 1,000,000 Total * T h e undersigned (m em b er ban k) hereby certifies that the N o te s to be held in safekeeping w ill be ow ned solely by the undersigned. P aym en t w ill be made as fo llo w s: Q B y check in im m ediately available funds □ B y charge to our reserve account □ B y wire transfer from another Federal R eserve Bank or Branch N a m e o f subscriber (Please print) By .................................... (Authorized corporation officer or partner) T itle ............................... Address ................. INSTRUCTIONS: 1. Submit all bids sealed in an envelope marked “ Bid for T V A Power Notes.” 2. N o 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.
@FedFRASER