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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States for the Tennessee Valley Authority I" TVA Offering No. L 85 *1 June 19, 1972 J Invitation for Bids on $200,000,000 of 119-Day TENN ESSEE VALLEY A U T H O R ITY PO W ER NOTES Dated J u n e 29, 1972 Due O ctober 26, 1972 To Certain Commercial B anks, T rust Companies, and Dealers in Investm ent Securities: F o llo w in g is th e te x t of a n in v itatio n a u th o riz e d by th e T en n e sse e V alley A u th o rity to be issu ed to d a y to c e rta in com m ercial b an k s, tr u s t com panies, a n d d ealers in in v e stm e n t s e c u r itie s : Tennessee Valley A uthority ( “T V A ” ) hereby invites bids for the purchase to the aggregate amount of $ , of its Pow er Notes ( “N otes” ) dated June 29, 1972, due October 26, 1972. The Notes will be issued on a discount basis and at m aturity their face amount will be payable without interest at the H ead 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 (m aturity value). Denomina tional exchanges may be effected at the H ead Office of the Federal Reserve Bank of New York. 200000,000 Bids will be received at the Securities Departm ent of the H ead Office of the Federal Reserve Bank of New Y ork up to the closing hour, 1 :30 p.m., E astern D aylight Saving time, Tuesday, June 27, 1972. N o bids will be accepted for a face amount of Notes less than $ , , . Bids must be for an even multiple of $5,000 and the price offered must be expressed on the basis of , 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 Y ork upon application therefor. 1000000 100 Invitations for bids are being issued to certain commercial banks, tru st companies, and dealers in investment securities. O ther 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 T V A of the amount and price range of accepted bids. Those submitting successful bids will be informed by the Federal Reserve Bank of New Y ork of the acceptance thereof. T V A expressly reserves the right to accept or reject any or all bids, in whole or in part, and the action of T V A in any such respect shall be final. Settlem ent for accepted bids must be made at the Federal Reserve Bank of New Y ork on June 29, 1972 in cash or other immediately available funds. The Notes will be issued to assist in providing capital for the power program of T V A . They will be negotiable. They will be payable solely from T V A ’s N et Pow er Proceeds (but may, at the option of T V A , be paid from the proceeds of refunding obligations or other funds legally available for such paym ent). N et Pow er Proceeds are defined in, and required to be applied according to, the Basic Tennessee Valley A uthority Pow er Bond Resolution ( “Basic Resolution” ). The N otes 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 TV A , 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 A uthority and Pow er Notes issued by it, as well as copies of the Basic Resolution and periodic financial reports, may be obtained upon request directed to T V A ’s D irector of Information, Knoxville, Tennes see, or to the Federal Reserve Bank of New York. T h is B a n k w ill receive bids in acco rd an ce w ith th e fo re g o in g in v ita tio n u p to 1 :30 p .m ., E a s te r n D a y lig h t S av in g tim e, T u e sd a y , J u n e 27, 1972 a t th e S ecu rities D e p a rtm e n t of its H e a d Office. P le a se use th e fo rm o n th e re v e rse side of th is notice to su b m it bids a n d r e tu rn them sealed in th e enclosed envelope m a rk e d “ B id fo r T V A P o w e r N o te s .” B ids m ay be su b m itte d by te le g ra p h , su b je c t to w ritte n c o n firm a tio n ; th ey m ay n o t be su b m itte d by telep h o n e. S e ttle m en t m u st be m ade in im m ed iately available fu n d s a t th is B a n k on T h u rs d a y , J u n e 29, 1972. A lfred H ayes, President. ( over) N o............................ Bid for 119-Day Tennessee Valley Authority Power Notes Dated June 29, 1972 Due October 26, 1972 D a te d a t .,1 9 7 2 T o F ederal R eserve B a n k of N e w Y ork , F is c a l A g e n t of th e U n ite d S ta te s fo r th e T e n n e sse e V alley A u th o r ity : P u r s u a n t to th e p ro v isio n s o f th e In v ita tio n fo r B id s issu ed b y T en n e sse e V alley A u th o rity in v itin g bid s fo r th e ab o v e-d escrib ed P o w e r N o te s a n d p rin te d o n th e re v e rse sid e h ereo f, th e u n d e rsig n e d h e re b y offers to p u rc h a se su ch P o w e r N o te s in th e a m o u n t in d ic ated below , a n d ag re e s to m ak e p a y m e n t th e re fo r a t y o u r B a n k o n o r before th e issu e d a te a t th e p ric e in d ic ated b e lo w : $ ...............................................................( m a tu rity v a lu e ) o r a n y le sser a m o u n t th a t m ay be aw a rd e d . P r i c e .............................................. p e r 100 (Price must be expressed with not more than three decimal places, for example, 99.925) S u b je c t to allo tm en t, p lease issue, d eliv er, a n d accept p ay m en t fo r th e N o te s as in d ic ated b e lo w : Pieces Denom inations $ Maturity Value □ 5,000 □ □ 10,000 □ 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (for account of member bank only)* 4. Special instructions: 100,000 1,000,000 T otal $............................................ *The undersigned (member bank) hereby certifies that the N otes to be held in safekeeping will be owned solely by the undersigned. Paym ent w ill be made as follow s: □ B y check in im mediately available funds □ B y charge to our reserve account □ B y wire transfer from another Federal Reserve Bank or Branch Nam e of subscriber (Please print) B y ................................ (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 m arked “Bid for T V A Pow er N otes.” 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 (m aturity value). 3. If the language of a bid is changed from the foregoing in any respect, which, in the opinion of the Pow er Financing Officer of Tennessee Valley A uthority, is material, the bid may be disregarded.
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