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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States for the Tennessee Valley Authority r T V A O ffering No, 1 1 ( H L Septem ber 16, 1974 J Invitation for Bids on $50,000,000 of 126-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated September 26, 1974 Due January 30, 1975 T o Certain Commercial Banks, Trust Companies, and D ealers in Investm ent S ecurities: F ollow in g is the text o f an invitation authorized by the Tennessee V alley A uthority to be issued today to certain com m ercial banks, trust companies, and dealers in investment secu rities: 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 September 26, 1974, due January 30, 1975. The Notes will be issued on a discount basis at the H ead Office o f 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. Th ey will be issued in bearer form in denomi nations of $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 of N ew York. Bids will be received at the Securities Department of the H ead Office of the Federal Reserve Bank of N ew Y ork up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Tuesday, September 24, 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 w ill be supplied by the Federal Reserve Bank o f N ew Y ork 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 of the amount and price range of accepted bids. Those submitting successful bids w ill 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 o f 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 September 26, 1974 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 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 A uthority P ow er Bond Resolution ( “ Basic Resolution” ) . The Notes will not be obligations of, nor w ill payment thereof be guaranteed by, the United States of Am erica. Income derived from the Notes will be subject to Federal income ta x ation ; but in the opinion of the General Counsel for T V A , under present laws and decisions, the Notes will be exem pt 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 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 of Information, K noxville, Tennessee, or to the Federal Reserve Bank of N ew Y ork. T his Bank will receive bids in accordance with the foregoin g invitation up to 1 :30 p.m ., Eastern Daylight Saving time, Tuesday, September 24, 1974 at the Securities Department o f its H ead 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 fo r T V A P ow er N otes.” B ids may be submitted by telegraph, subject to written confirm ation; they may not be submitted by telephone. Settle ment must be made in immediately available funds at this Bank on T hursday, September 26, 1974. A l fr e d H ayes, President. ( over ) B id for 126-D ay Tennessee Valley Authority Power Notes Dated September 26, 1974 Due January 30, 1975 D a te d a t ............................................................ ................................................................... .. 1974 To F ederal R eser ve B ank of N ew Y ork, 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 o w e r N otes in the am ount indicated below , and agrees to make payment 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 : Pieces Maturity Value Denominations □ 1. Deliver over the counter to the 2. Ship to the undersigned 5,000 □ □ 10,000 □ 4. undersigned $ 3. Hold in safekeeping (for account of member bank only)* 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: □ B y 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 Pow er Notes.” 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 valu e). 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 Authority, is material, the bid may be disregarded.
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