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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States for the Tennessee Valley Authority r T V A Offering N<x 1 0 9 "1 L June 17, 1974 J Invitation for Bids on $230,000,000 of 126-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated June 27, 1974 Due October 31, 1974 T o Certain Commercial Banks, Trust Companies, and Dealers in Investm ent Securities: F ollow in g is the text o f an invitation authorized by the Tennessee V alley A uthority to be issued todav to certain com m ercial banks, trust com panies, and dealers in investment securities: Tennessee V alley Authority ( “ T V A ” ) hereby invites bids for the purchase to the aggregate amount of $230,000,000 of its P ow er N otes ( “ N otes” ) dated June 27, 1974, due O ctober 31, 1974. The Notes will be issued on a discount basis at the H ead Office o f the Federal Reserve Bank of N ew Y o rk and at maturity their face amount w ill be payable without interest at any Federal Reserve Bank or Branch. T h ey will be issued in bearer form in denomi nations o f $5,000, $10,000, $100,000, and $1,000,000 (m aturity valu e). Denominational exchanges may be effected at the H ead Office of the Federal Reserve Bank o f N ew Y ork. Bids w ill be received at the Securities Department of the H ead Office o f the Federal Reserve Bank of N ew Y o rk up to the closing hour, 1 :30 p.m., Eastern D aylight Saving time, Tuesday, June 25, 1974. N o bids will be accepted for a face amount o f 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 o f 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 form s and forw arded in the special envelopes which will be supplied by the Federal Reserve Bank o f N ew Y o rk upon application therefor. Invitations for bids are being issued to certain commercial banks, trust companies, and dealers in investment securities. Other com m ercial banks, trust companies, or recognized dealers in invest ment securities desiring to bid may do so on bid form s obtained from the Federal Reserve Bank of N ew Y ork. Bids submitted hereunder must be for the principal account o f the bidder and not for the account o f others. Immediately after the closing hour, bids will be opened at the Federal Reserve Bank o f N ew Y ork , follow ing which public announcement will be made by T V A of the amount and price range o f accepted bids. Those submitting successful bids will be informed by the Federal Reserve Bank of N ew Y ork o f 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. Settlement for accepted bids must be made at the Federal Reserve Bank of N ew Y ork on June 27, 1974 in cash or other immediately available funds. The Notes will be issued to assist in providing capital for the power program o f T V A . They will be negotiable. They will be payable solely from T V A ’s Net P ow er Proceeds (but may, at the option of T V A , be paid from the proceeds o f refunding obligations or other funds legally available for such paym ent). Net P ow er Proceeds are defined in, and required to be applied according to, the Basic Tennessee V alley Authority P ow er Bond Resolution ( “ Basic Resolution” ) . The Notes will not be obligations of, nor will payment thereof be guaranteed by, the United States o f Am erica. Income derived from the Notes will be subject to Federal income taxation; but in the opinion o f the General Counsel for T V A , under present laws and decisions, the Notes will be exempt from personal property taxes and the income therefrom will be exem pt from income taxes, now or hereafter imposed, by any State or local taxing authority. Circulars describing Tennessee V alley Authority and P ow 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 o f Information, K noxville, Tennessee, or to the Federal Reserve Bank o f N ew Y ork. T h is Bank will receive bids in accordance with the foreg oin g invitation up to 1 :30 p.m., Eastern Daylight Saving time, T uesday, June 25, 1974 at the Securities Departm ent o f its H ead Office. Please use the form on the reverse side o f this notice to submit bids and return them sealed in the enclosed envelope marked “ Bid fo r T V A P ow er N otes." B ids may be submitted by telegraph, subject to written con firm ation ; they may not be submitted by telephone. Settle ment must be made in im mediately available funds at this Bank on T hursday, June 27, 1974. A lfred H ayes, President. (OVER) Bid for 126-Day Tennessee Valley Authority Power Notes Due October 3 1, 1974 Dated June 27, 1974 D a te d at , 1974 T o F ederal R eserve B a n k N ew Y ork, of F iscal A gen t o f the U nited States fo r the Tennessee V alley A u th o rity : Pursuant to the provisions o f the Invitation fo r Bids issued by Tennessee V alley A u thority inviting bids for the above-described P ow er N otes and printed 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 make paym ent therefor at you r Bank on or before the issue date at the price indicated b e lo w : $ ............................................................(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) S u bject to allotment, please issue, deliver, and accept payment fo r the N otes as indicated b e lo w : P ieces M a tu rity V a lu e D en om in a tion s $ 5,000 10,000 □ 1. □ □ 2. 3. □ 4. u ndersigned Ship to the u ndersigned H o ld in sa fek eep in g ( fo r a ccou n t o f m em b er bank o n ly )* S pecial in stru ction s: 100,000 1,000,000 T o ta l * T h e u ndersign ed (m e m b e r b a n k ) h ereb y certifies that the N otes to be held in sa fekeep in g w ill be ow n ed s o le ly b y the u ndersigned. P a y m en t w ill be m ade as fo llo w s : □ B y ch eck in im m ediately available funds □ B y ch arge to ou r reserve a ccou n t □ B y w ire transfer fro m a nother F ed era l R eserve B ank or B ran ch N a m e o f su b scrib er (Please print) B y .................................. (A uthorized corporation officer or partner) T itle ............................. Address .................... IN S T R U C T IO N S : 1. Submit all bids sealed in an envelope marked “ Bid for T V A P ow er Notes.” 2. N o bid for less than $1,000,000 will be considered and each bid must be for an even multiple o f $5,000 (m aturity va lu e). 3. If the language of a bid is changed from the foregoing in any respect, which, in the opinion of the P ow er Financing O fficer o f Tennessee V alley Authority, is material, the bid may be disregarded.
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