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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States for the Tennessee Valley Authority I" TVA Offering No. 5 7 1 L February 16, 1970 J Invitation for Bids on $50,000,000 of 119-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated February 26, 1970 Due June 25, 1970 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: Following is the text of an invitation authorized by the Tennessee Valley A uthority to be issued today to certain commercial banks, trust companies, and dealers in investment securities: Tennessee Valley A uthority (“T V A ”) hereby invites bids for the purchase to the aggregate am ount of $50,000,000 of its Power Notes (“N otes”) dated February 26, 1970, due June 25, 1970. The Notes will be issued on a discount basis and at m aturity their face am ount will be payable w ithout 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. Bids will be received at the Securities D epartm ent of the H ead Office of the Federal Reserve Bank of New Y ork up to the closing hour, 1:30 p.m., Eastern Standard time, Tuesday, F ebruary 24, 1970. No bids will be accepted for a face am ount of Notes less than $1,000,000. Bids must be for an even m ulti ple of $5,000 and the price offered m ust 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. O ther commercial banks, trust companies, or recognized dealers in investm ent securities desiring to bid may do so on bid forms obtained from the Federal Reserve Bank of New York. Bids submitted hereunder m ust 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 announcem ent will be made by T V A of the am ount and price range of accepted bids. Those subm itting successful bids will be informed by the Federal Reserve Bank of New Y ork of the acceptance thereof. TV 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 m ust be made at the Federal Reserve Bank of New Y ork on February 26, 1970 in cash or other immediately available funds. T he N otes will be issued to assist in providing capital for the power program of TVA. T hey will be negotiable. They will be payable solely from T V A ’s N et Pow er Proceeds (but may, at the option of TV A, be paid from the proceeds of refunding obligations or other funds legally available for such paym ent). N et Power 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 paym ent 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 N otes 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 Valley A uthority 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 T V A ’s D irector of Inform ation, Knoxville, T en nessee, or to the Federal Reserve Bank of New York. This Bank will receive bids in accordance with the foregoing invitation up to 1 :30 p.m., E astern Standard time, Tuesday, February 24, 1970, 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, February 26, 1970. A lfred H a yes, President. ( over) No............... Bid for 119-Day Tennessee Valley Authority Power Notes Dated February 26, 1970 Due June 25, 1970 Dated at 1970 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 A uthority: 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 : $ ........................................................(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: Pieces M aturity Value Denominations $ □ 5,000 □ □ 10,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for account of member bank only)* 4. Special instructions: 100,000 , 1 000,000 T otal $- * If this item is checked, the undersigned hereby certifies th at the Notes 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 (Please print) By .............................. (Authorized corporation officer or partner) T itle .......................... Address .................... IN S T R U C T IO N S : 1. Subm it all bids sealed in an envelope marked “Bid for T V A Pow er Notes.” 2. N o bid for less than $1,000,000 will be considered and each bid m ust 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 Power Financing Officer of Tennessee Valley Authority, is material, the bid may be disregarded.
@FedFRASER