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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gent of the United States for the Tennessee Valley Authority T V A O ffering No. 391 A ugust 19, 1968 J Invitation for Bids on $75,000,000 of 119-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated August 29, 1968 Due December 26, 1968 To Certain Commercial Banks, Trust Companies, and Dealers in Investment Securities: 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: T e n n essee V a lle y A u th ority ( “ T V A ” ) h ereby invites bids fo r the purchase to the a g g reg a te am ou nt o f $75,000,000 o f its P o w e r N o te s ( “ N o te s ” ) dated A u g u s t 29, 1968, due D e c e m ber 26, 1968. T h e N o te s w ill be issued on a d iscou n t basis and at m aturity their face a m ou n t w ill be payable w ith ou t interest at the H e a d O ffice o f the F ed eral R es e rv e B ank o f N ew Y o rk . T h e y w ill be issued in bearer fo rm in d en om in a tion s o f $5,000. $10,000, $100,000, and $1,000,000 (m a tu rity va lu e). D en om in a tional e xch a n ges m ay be effe cte d at the H ead O ffice o f the F ederal R e se rve B ank o f N ew Y ork . B ids w ill be receiv ed at the Securities D epa rtm en t o f the H ead O ffice o f the F ed eral R eserve B ank o f N ew Y o r k up to the clo s in g hour, 1 :30 p.m ., E astern D a y lig h t S a vin g tim e, T u e s day, A u g u st 27, 1968. N o bids w ill be a ccep ted fo r a face am ou nt o f N o te s less than $1,000,000. B id s m u st be for an even m ultiple o f $5,000 and the price o ffered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F r a c tions m ay n ot be used. It is urged that bids be m ade on the printed fo rm s and fo rw a rd ed in the special en velop es w hich w ill be supplied b y the Federal R eserve Bank o f N ew Y o rk upon a pp lication th erefor. In vitations fo r bids are b ein g issued to certain com m ercia l banks, trust com panies, and dealers in in vestm ent securities. O th er co m m e rcia l banks, trust com panies, or recog n ized dealers in in vestm en t securities desiring to bid m ay d o so on bid form s ob ta in ed fro m the Federal R eserve B ank o f N ew Y o r k . Bids subm itted hereunder m ust be fo r the principal a ccou n t o f the bidder and n ot fo r the a ccou n t o f others. Im m ed ia tely after the clo s in g hour, bids will be op en ed at the F ed eral R e se rve B ank o f N ew Y o rk , fo llo w in g w hich public a nn oun cem ent w ill be m ade b y T V A o f the a m ou n t and price range o f a ccep ted bids. T h o s e su bm ittin g su ccessfu l bids w ill be in form ed b y the F ederal R eserve B ank o f N e w Y o r k o f the a ccep ta n ce thereof. T V A ex p ressly reserves the righ t to a ccep t or reject any or all bids, in w h ole o r in part, and the a ction o f T V A in any such resp ect shall be final. S ettlem ent for a ccep ted bids m ust be m ade at the F ed eral R eserve B ank o f N e w Y o r k on A u g u s t 29, 1968 in cash o r oth er im m ediately available funds. T h e N otes w ill be issued to assist in p r o v id in g capital for the p ow er p rog ra m o f T V A . T h e y w ill be n eg otia b le. T h e y w ill be payable s olely fro m T V A ’s N et P o w e r P r o ce e d s (bu t m ay, at the op tion o f T V A , be paid from the p r o ce e d s o f refu n din g ob lig a tion s or oth er fun ds lega lly available fo r such p a y m en t). N et P o w e r P ro ce e d s are defined in, and requ ired to be applied a cco rd in g to, the B a sic T en n essee V a lle y A u th o rity P o w e r B o n d R esolu tion ( “ B asic R e s o lu tio n ” ). T h e N ote s w ill not be o b lig a tion s of, n or w ill pa ym en t th ereof be guaranteed by, the U n ited States o f A m erica . In com e derived from the N otes w ill be su b ject to F ederal in com e ta x a tion ; but in the opin ion o f the G eneral C ou n sel for T V A , under present law s and d ecision s, the N o te s w ill be exem pt from personal p r op erty taxes and the in com e th erefrom w ill be exem p t from in com e taxes, n o w or h ereafter im posed, b y any State or local taxing authority. C irculars d escribin g T en n essee V a lle y A u th o rity and P o w e r N otes issued b y it, as w ell as cop ies o f the B a sic R eso lu tio n and p eriod ic financial rep orts, m ay be obtain ed u pon request directed to T V A ’ s D ire cto r o f In form a tion , K n o x v ille , T e n nessee, o r to the Federal R eserv e B ank o f 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, August 27, 1968, 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, August 29, 1968. A lfred H a y e s , President. ( over) No.............. Bid for 119-Day Tennessee Valley Authority Power Notes Dated August 29, 1968 Due December 26, 1968 Dated at 1968 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 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 D en om in ation s 5 M atu rity V alu e n i. 5,000 □ □ 2. 3. 10,000 □ 4. D eliver ov e r the cou n ter to the u ndersign ed Ship to the u ndersign ed 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 ♦ I f this item is ch ecked, the u ndersigned h ereby certifies that the N otes to be held in sa fekeep in g w ill be ow n ed so le ly b y the undersigned. Paym ent w ill be m ade as fo llo w s : d B y ch eck in im m ediately available funds [j B y ch arge to our reserve a ccou n t □ B y w ire transfer from a nother Federal R eserve Bank o r B ran ch N am e o f su b scrib er ................................................................... (Please print) By .............................................................................. (Authorized corporation officer or partner) T itle .................................................................................................. A d d ress .......................................................................................................... IN S T R U C T IO N S : 1. Subm it all bids sealed in an en velope m arked “ Bid for T V A P o w e r N otes.” 2. N o bid for less than $1,000,000 will be con sid e re d and each bid m ust be for an even m ultiple o f $5,000 (m atu rity valu e). 3. If the language o f a bid is ch an ged from the fo r e g o in g in any respect, w hich, in the opin ion o f the P ow er F in an cin g O fficer o f T en n essee V a lle y A u th ority , is m aterial, the bid m ay be disregarded.
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