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F E D E R A L R E S E R V E B A N K O F NEW YO R K Fiscal Agent of the United States for the Tennessee Valley Authority r TVA Offering No. 6 7 “I L December 21, 1970 -I Invitation for Bids on $160,000,000 of 119-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated December 31, 1970 Due April 29, 1971 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: Follow ing is the tex t of an invitation authorized by the Tennessee V alley A uthority to be issued today to certain comm ercial banks, tru s t com panies, and dealers in investm ent secu rities: Tennessee Valley Authority ( “TV A ”) hereby invites bids for the purchase to the aggregate amount of $160,000,000 of its Power Notes ( “Notes”) dated December 31, 1970, due April 29, 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, December 29, 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 December 31, 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 Standard time, T uesday, D ecem ber 29, 1970, at the Securities D epartm ent of its H ead Office. Please use the form on the reverse side o f this notice to subm it bids and re tu rn them sealed in the enclosed envelope m arked “ Bid for T V A Pow er N otes.” Bids m ay 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 m ade in im m ediately available funds at this B ank on T hursday, December 31, 1970. A lfred H a yes, President. ( over) Bid for 119-Day Tennessee Valley Authority Power Notes Dated December 31, 1970 Due April 29, 1971 Dated a t .......................................................... .............................................................. . 1970 T o F ederal R eserve B a n k of N ew Y o rk , Fiscal Agent of the U nited States for the Tennessee Valley A uthority: P ursuant to the provisions of the Invitation for Bids issued by Tennessee Valley A uthority 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: $ ........................................................(m aturity value) or any lesser amount that may be awarded. P r i c 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: P ieces M aturity V alue D en o m in a tio n s □ 5,000 10,000 $ □ □ □ 1. D eliv er over the counter to the un dersign ed 2. Ship to the un dersign ed 3. H o ld in safek eep in g (for account o f m em ber bank o n ly )* 4. Sp ecial in structions: 100,000 , 1 000,000 T o ta l * If this item is checked, the un dersign ed hereb y certifies that the N o te s to be held in safek eep in g w ill be ow ned so le ly by the un dersign ed . P a y m en t w ill be m ade as fo llo w s: □ B y ch eck in im m ed iately available funds □ B y charge to our reserve account □ B y w ire transfer from another F ed eral R eserve B ank or Branch N a m e o f subscriber ......................................................................... . (P lease print) By ................................ ................................... (Authorized corporation officer or partner) T itle ............................................................................................................ A d d ress ..................................................................................................... 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.
@FedFRASER