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FED E R A L R ESER V E BANK O F NEW YORK
Fiscal Agent of the United States for the Tennessee Valley Authority
I"TVA Offering No. 106
L March 18, 1974
Invitation for Bids on $80,000,000 of 119-Day
TENNESSEE VALLEY AUTHORITY POWER NOTES
Dated March 28, 1974
Due July 25, 1974
To Certain Commercial Banks, Trust Companies,
and Dealers in Investment Securities:
F ollow in g is the text of an invitation authorized by the Tennessee V alley A uthority to be issued today to certain
com m ercial banks, trust com panies, and dealers in investment securities:
Tennessee V alley Authority ( “ T V A ” ) hereby invites bids for
the purchase to the aggregate amount o f $80,000,000 of its P ow er
Notes ( “ N otes” ) dated M arch 28, 1974, due July 25, 1974.
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 o f $5,000, $10,000, $100,000, and $1,000,000 (maturity va lu e).
Denominational exchanges may be effected at the H ead Office of
the Federal Reserve Bank of 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, M arch
26, 1974. 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 forw arded 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
com mercial 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 w ill be made by T V A of 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 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 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 M arch 28, 1974 in cash or other
immediately available funds.
T he 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).
N et 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 ("B a s ic 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 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
exem pt 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 o f N ew Y ork.
T h is Bank will receive bids in accordance with the fore g o in g invitation up to 1 :30 p.m ., Eastern Daylight Saving
time, T uesday, M arch 26, 1974 at the Securities D epartm ent o f its H ead Office. Please use the form on the reverse
side o f this notice to submit bids and return them sealed in the enclosed envelope marked “ B id fo r T V A P ow er N otes.”
B ids may be submitted by telegraph, subject to written con firm ation ; they may not be submitted by telephone. Settle
ment must be made in immediately available funds at this bank on Thursday, M arch 28, 1974.
A
lfred
H
ayes,
President.
( over )
'
No.
Bid for 119-Day
Tennessee Valley Authority Power Notes
Dated March 28, 1974
Due July 25, 1974
D a te d at
, 1974
To
F ederal R eserve Bank
of
N ew Y ork,
F iscal A g en 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 uthority 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 ow er 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)
Su bject to allotment, please issue, deliver, and accept payment fo r the N otes as indicated b elow :
Pieces
Maturity Value
Denominations
□
1. Deliver over the counter to the
5,000
□
□
2. Ship to the undersigned
3. Hold in safekeeping (for account
10,000
□
4. Special instructions:
undersigned
$
of member bank only)*
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 ..................................
Title
(Authorized corporation officer or partner)
.............................
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 valu e).
3. I f the language o f a bid is changed from the foregoing in any respect, which, in the opinion of the P ow er Financing
Officer o f Tennessee V alley Authority, is material, the bid may be disregarded.
@FedFRASER