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a t C -u iu W . ^ « .7 ie y FED ERAL R ESER VE BAN K O F N E W YORK Fiscal Agent of the United States for the Tennessee Valley Authority TVA Offering No. 98~1 July 16, 1973 J Invitation for Bids on $50,000,000 of 126-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated July 26, 1973 Due November 29, 1973 To Certain Commercial Banks, Trust Companies, and D ealers in Investm ent S ecurities: 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 the purchase to the aggregate amount of $50,000,000 o f its P ow er Notes ( “ N otes” ) dated July 26, 1973, due Novem ber 29, 1973. The N otes will be issued on a discount basis at the H ead Office of the Federal Reserve Bank of N ew Y ork and at maturity their face amount will be payable without interest at any Federal Reserve Bank or Branch. They will be issued in bearer form in denomi nations o f $5,000, $10,000, $100,000, and $1,000,000 (maturity valu e). Denominational exchanges may be effected at the H ead Office of the Federal Reserve Bank o f N ew Y ork. Bids will be received at the Securities Department o f the H ead Office o f the Federal Reserve Bank of N ew Y ork up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Tuesday, July 24, 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 form s and forwarded 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 commercial 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 of the bidder and not for the account o f others. Immediately after the closing hour, bids will be opened at the Federal Reserve Bank of N ew Y ork, follow ing which public announcement will be made by T V A o f the amount and price range of accepted bids. Those submitting successful bids will be informed by the Federal Reserve Bank of N ew 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. Settlement for accepted bids must be made at the Federal Reserve Bank of N ew Y ork on July 26, 1973 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 Net P ow 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). 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 of Am erica. Income derived from the Notes will be subject to Federal income taxation; but in the opinion of 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 exempt from income taxes, now or hereafter imposed, by any State or local taxing authority. Circulars describing Tennessee V alley Authority 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, K noxville, Tennessee, or to the Federal Reserve Bank of N ew Y ork. This Bank will receive bids in accordance with the foregoing invitation up to 1 :30 p.m., Eastern Daylight Saving time, Tuesday, July 24, 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, July 26, 1973. A lfred H ayes, President. ( over) No......................... Bid for 126-Day Tennessee Valley Authority Power Notes Dated July 26, 1973 Due November 29, 1973 Dated at , 1973 To F ed er al R eserve B a n k of N ew Y ork, 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 Maturity Value Denominations $ □ 5,000 □ □ 10,000 □ 1. undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for account of member bank only)* 4. Special instructions: 100,000 1,000,000 Total *T h e undersigned (member bank) hereby certifies that the Notes to be held in safekeeping will be owned solely by the undersigned. Payment will be made as follows: □ By check in immediately available funds □ B y charge to our reserve account □ B y wire transfer from another Federal Reserve Bank or Branch Name of subscriber (Please print) B y .................................. (Authorized corporation officer or partner) Title ............................. 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 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 (maturity va lu e). 3. I f the language o f a bid is changed from the foregoin g in any respect, which, in the opinion o f the P ow er Financing Officer o f Tennessee V alley Authority, is material, the bid may be disregarded.
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