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/ / / \(JU< FE D E R A L R ES ER V E BANK O F NEW YORK Fiscal Agent of the United States for the Tennessee Valley Authority r T V A O ffe rin g N o . 6 5 T L O c to b e r 19, 1970 J Invitation for Bids on $70,000,000 of 119-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated October 29, 1970 Due February 25, 1971 T o C e rta in C o m m ercia l B a n k s, T r u s t C om pan ies, and D e a le r s in In v e stm e n t S e c u r itie s : Follow ing is the tex t of an invitation authorized by the Tennessee Valley A uthority to be issued today to certain comm ercial banks, tru s t com panies, and dealers in investm ent se cu rities: T ennessee V alley A u th o rity ( “T V A ”) hereby invites bids for the purchase to th e a g g re g ate am o u n t of $70,000,000 of its P o w er N otes (“ N o tes” ) dated O cto b er 29, 1970, due F e b ru ary 25, 1971. T h e N o tes will be issued on a d iscount basis and at m a tu rity their face am o u n t will be payable w ith o u t in te re st a t the H ead Office of the F ed eral R eserve B ank of N ew Y ork. T h ey will be issued in b earer form in d enom inations of $5,000, $10,000, $100,000, and $1,000,000 (m a tu rity value). D en o m in a tional exchanges m ay be effected at the H e a d Office of the F ed eral R eserve B ank of N ew Y ork. B ids w ill be received at the S ecurities D e p a rtm e n t of the H ead Office of the F ed eral R eserve B ank of N ew Y o rk up to the closing hour, 1:30 p.m., E a ste rn S tan d a rd tim e, T u esd ay , O cto b er 27, 1970. N o bids will be accepted for a face am o u n t of N otes less th an $1,000,000. B ids m u st be for an even m ultiple of $5,000 and the price offered m u st be expressed on th e basis of 100, w ith n o t m ore th an th ree decim als, e.g., 99.925. F ra c tions m ay not be used. I t is u rg ed th a t bids be m ade on the p rin ted form s and fo rw ard ed in th e special envelopes w hich w ill be supplied by the F ed eral R eserve B ank of N ew Y o rk upon application therefo r. In v itatio n s for bids are being issued to certain com m ercial banks, tru s t com panies, and dealers in in v estm en t securities. O th e r com m ercial banks, tru st com panies, or recognized dealers in investm ent securities d esiring to bid m ay do so on bid form s obtained from the F ed eral R eserve B ank of N ew Y ork. B ids subm itted h ereunder m u st be for the principal acco u n t of the b idder and not for the account of others. Im m ediately after the closing hour, bids w ill be opened at the F ed eral R eserve B ank of N ew Y ork, follow ing w hich public anno u n cem en t will be m ade by T V A of the am o u n t and price range of accepted bids. T h o se su b m ittin g successful bids will be inform ed by the F e d e ra l R eserve B ank of N ew Y ork of the acceptance thereof. T V A ex p ressly reserves th e rig h t to accept or reject an y or all bids, in w hole or in p art, an d the action of T V A in an y such resp ect shall be final. S ettlem en t for accepted bids m u st be m ade at the F ed eral R eserve B ank of N ew Y o rk on O c to b e r 29, 1970 in cash or o th e r im m ediately available funds. T h e N o tes will be issued to assist in pro v id in g capital for the pow er p ro g ra m of T V A . T h e y will be negotiable. T h ey will be payable solely from T V A ’s N et P o w er P ro ceed s (b u t m ay, at th e option of T V A , be paid from th e proceeds of refu n d in g o bligations or o th e r funds legally available for such p a y m en t). N et P o w er P ro ceed s are defined in, and required to be applied acco rd in g to, th e B asic T en n essee V alley A u th o rity P o w er B ond R esolution ( “ B asic R e so lu tio n ”). T h e N o tes will n o t be o bligations of, n o r w ill p ay m en t th ereo f be g u aran teed by, the U n ited S ta te s of A m erica. Incom e derived from th e N o tes w ill be su b ject to F ed eral incom e ta x a tio n ; b u t in the opinion of th e G eneral C ounsel for T V A , u n d er p re se n t law s and decisions, th e N o tes w ill be exem pt from perso n al p ro p e rty tax es an d the incom e th erefro m will be ex em p t from incom e taxes, now or h e re after im posed, by any S tate or local tax in g a u tho rity . C irculars d escribing T en n essee V alley A u th o rity and P o w er N o tes issued by it, as w ell as copies of th e B asic R esolution and periodic financial rep o rts, m ay be obtain ed upon req u est d irected to T V A ’s D ire cto r of In fo rm a tio n , K noxville, T e n nessee, o r to the F ed eral R eserve B ank of N ew Y ork. T his B ank will receive bids in accordance w ith the foregoing invitation up to 1 :30 p.m ., E aste rn S tandard time, T uesday, O ctober 27, 1970, a t the Securities D epartm ent of its H ead Office. Please use the form on the reverse side of this notice to subm it bids and retu rn them sealed in the enclosed envelope m arked “ Bid for T V A P ow er N otes.” Bids may be subm itted by telegraph, subject to w ritten confirm ation; they may not be subm itted by telephone. Settle m ent m ust be m ade in im mediately available funds at this B ank on T hursday, O ctober 29, 1970. A lfred H ayes, President. ( o v er ) 'J N o................. Bid for 119-Day Tennessee Valley Authority Power Notes D a te d O c to b e r 2 9 , 1 9 7 0 D u e F e b ru a ry 2 5 , 1971 D ated at 1970 T o F e d e r a l R eserve B a n k o f N e w Y o r k , F iscal A gent of the U n ited S tates for the Tennessee Valley A u th o rity : P u rsu a n t to the provisions of the Invitation for Bids issued by Tennessee Valley A u thority inviting bids for the above-described P ow er N otes and p rinted 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 m ake paym ent therefor a t your B ank on or before the issue date a t the price indicated b elow : $ .......................................................... (m atu rity value) or any lesser am ount that m ay be aw arded. P r i c e ...........................................p er 100 ( P r ic e m u st be e x p r e ss e d w ith n o t m o re than th ree d ecim a l pla ces, fo r e x a m p le , 99.925) S ubject to allotm ent, please issue, deliver, and accept paym ent for the N otes as indicated b elow : Pieces D enom inations M a tu rity V alue □ 5,000 □ □ 10,000 5 □ 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (for account of m em ber bank only)* 4. Special in stru ctio n s: 100,000 1, 000,000 T o ta l * If this item is checked, the u ndersigned hereb y certifies th a t the N o tes to be held in safekeeping will be ow ned solely by the undersigned. P a y m e n t will be m ade as follow s: D B y check in im m ediately available funds □ B y charge to o u r reserve account □ B y w ire tra n sfe r from an o th er F ed eral R eserve B ank or B ranch N am e of subscriber ( l a ep i t P e s rn) B y ................................ ( u h r z d c r o a i nofcro p r n r A t o i e o p r t o fie r a t e ) T itle ............................ A ddress ..................... [N S T R U C T I O N S : 1. S ubm it all bids sealed in an envelope m ark ed “ Bid for T V A P o w er N o te s.” 2. N o bid for less th an $1,000,000 will be considered an d each bid m u st be for an even m ultiple of $5,000 (m a tu rity value). 3. I f the lan g u ag e of a bid is changed from the fo reg o in g in any respect, which, in th e opinion of th e P ow er F in an cin g O fficer of T en n essee V alley A u th oritv. is mai-erial. the bid m ay be disregarded.
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