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t)l <o n l FED ER A L RESERVE BANK O F N EW YORK Fiscal Agent of the United States for the Tennessee Valley Authority I" T V A Offering No. 3 7 "I June 17, 1968 J I Invitation for Bids on $75,000,000 of 126-Day TENNESSEE VALLEY AUTHORITY POWER NOTES Dated June 27, 1968 Due October 31, 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 en n e sse e V a lle y A u th o rity ( “ T V A ” ) h ereby invites bids fo r the pu rch ase 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 June 27, 1968, due O c to b e r 31, 1968. T h e N o te s w ill be issued on a discou n t basis and at m aturity their face a m ou n t w ill be p ayable w ith ou t interest at the H e a d O ffice o f the F ed era l R eserv e B ank o f N e w Y o rk . T h e y w ill be issued in bearer fo r m in d en om in a tion s o f $5,000, $10,000, $100,000, and $1,000,000 (m a tu rity v a lu e). D en om in a tional exch a n ges m ay be e ffe cte d at the H ead O ffice o f the F ed eral R e se rve B ank o f N ew Y o rk . B ids w ill be rece iv ed at the Securities D ep a rtm en t o f the H e a d O ffice o f the F ed era l 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, June 25, 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 ids m ust be fo r an even m ultiple o f $5,000 and the price o ffered m u st be exp ressed on the basis o f 100, w ith n o t m o re than three decim als, e.g., 99.925. F r a c tions m a y n ot be used. It is u rged that bids be m ade on the printed fo rm s and fo rw a rd e d in the special en velop es w hich w ill be supplied b y the F ed eral R eserve B ank o f N e w Y o r k u pon a pp lication th erefor. In vita tion s fo r bids are b ein g issued to certain com m ercia l banks, trust com pan ies, and dealers in in vestm ent securities. O th er co m m e rcia l banks, trust com panies, or re co g n iz e d dealers in in vestm en t securities d esirin g t o bid m ay do so on bid form s o b ta in ed fro m the F ederal R eserve B an k o f N ew Y o rk . B ids subm itted hereunder m ust be for the principal a ccou n t o f the bidd er and n o t fo r the a ccou n t o f others. Im m ed ia tely after the clo s in g hour, bids w ill be op en ed at the F ed eral R e se rve B ank o f N ew Y o r k , fo llo w in g w hich p u b lic an n ou n cem en t 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 b m ittin g su ccessfu l b id s w ill be in form ed b y the F ed era l R eserv e B an k o f N e w Y o r k o f the a ccep ta n ce th ereof. T V A ex p ressly reserves the righ t to a cce p t or re je ct 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 fo r a ccep ted b ids m u st be m ade at the F ed eral R eserve B ank o f N ew Y o r k on June 27, 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 fo r the p ow e r p rog ra m o f T V A . T h e y w ill be n egotia b le. T h e y w ill be p ayable s olely fro m T V A ’ s N et P o w e r P r o ce e d s (b u t m ay, at the op tion o f T V A , b e paid fro m the p r o ce e d s o f refu n d in g ob lig a tion s or oth er fu n d s leg a lly available fo r such p a y m e n t). N et P o w e r P ro ce e d s are defined in, a nd req u 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 a sic R es o lu tio n ” ). T h e N o te s w ill n ot be ob lig a tion s of, n or w ill p a ym en t th ereof be guaranteed by, the U n ited States o f A m erica . In co m e derived fro m the N o te s w ill be s u b je ct to F ed eral in com e ta x ation ; but in the op in ion o f the G eneral C ou n sel fo r T V A , under present law s and decision s, the N o te s w ill be ex em p t from person al p ro p e rty taxes and the in co m e th e re fro m w ill be ex em p t fro m in com e taxes, n o w o r h ereafter im p osed , b y any State or local ta x in g authority. C irculars describ in g T en n essee V a lle y A u th o r ity a nd P o w e r N o te s issued b y it, as w ell as cop ies o f the B a sic R e so lu tio n and p eriod ic financial rep orts, m a y be ob ta in ed u pon requ est 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 F ederal R eserve B ank o f N e w Y o r k . ' This Bank will receive bids in accordance with the foregoing invitation up to 1:30 p.m., Eastern Daylight Savinatime, Tuesday, June 25, 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, June 27, 1968. A lfred H ayes, President. ( over) No................ Bid for 126-Day Tennessee Valley Authority Power Notes Dated June 27, 1968 Due October 31, 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. Price.................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: P ieces M atu rity V alu e D en om in ation s 5 5,000 10,000 □ 1. □ □ 2. 3. □ 4. D eliv er o ver the cou nter to the u ndersigned Ship to the undersigned H o ld in safek eeping (fo r a ccou n t o f m em b er bank o n ly )* Sp ecial in stru ction s: 100,000 1,000,000 T o ta l * I f this item is ch ecked, the u ndersig ned h ereby certifies that the N otes to be held in safekeeping w ill b e ow n ed so le ly b y the undersigned. P a ym en t w ill be m ade as fo llo w s : □ B y ch eck in im m ediately available funds □ B y ch a rge to ou r reserve a ccou n t □ B y w ire transfer fro m another F ederal R eserve B ank or B ranch N am e o f subscriber (Please print) By ................ (Authorized corporation officer or partner) T itle ........... A d d re s s ... IN S T R U C T IO N S : 1. S u b m it all bids sealed in an en velop e m arked “ B id for T V A P o w e r N otes.” 2. N o bid fo r less than $1,000,000 w ill be con sid e re d and each bid m u st be for an even m ultiple o f $5,000 (m a tu rity v a lu e). 3. I f the language o f a bid is changed fro m the fo r e g o in g in any respect, w hich, in the opinion o f the P o w e r Financing O fficer o f T en n essee V a lle y A u th ority , is material, the bid m ay be disregarded.
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