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 — 

FEDERAL RESERVE BANK 

OF NEW YORK

Fiscal Agent of the United States

Circular No. 8879 

July 16, 1980

TREASURY TO AUCTION $4,500 MILLION OF 2-YEAR NOTES

T o A l l B anki ng Ins ti t u ti ons , a nd O t he r s C onc e rne d , 

in the Secon d Federal Reserve Dis t r ic t :

The f o l l o w i ng s t a t em ent w a s i s s ued y e s t erda y by t he Trea s ury D epa r t m ent :

The Department of the Treasury will auction $4,500 million of 2-year notes to refund $3,337 million ofnotes maturing July 31, 1980, and to raise $1,163 million new cash. The $3,337 million of maturing notes arethose held by the public, including $835 million currently held by Federal Reserve Banks as agents for foreign

and international monetary authorities.

In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $827 million of the maturing securities that may be refunded by issuing additional amounts of the

new notes at the average price of accepted competitive tenders. Additional amounts of the new security may also be issued at the average price to Federal Reserve Banks, as agents for foreign and international monetaryauthorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount

of maturing securities held by them.

P r i n t ed o n t he rev ers e s ide i s a ta b l e s um m a r i z ing t he h i g h l i g h t s o f t he o f f er i ng . C o p i e s o f t he o f f i c i a l  

o f f er i ng c i rcu la r w i l l be f urn i shed u po n reques t d i rect ed t o o ur Go v ernm ent Bo n d D i v i si o n ( Te l . N o .  

2 1 2 - 7 9 1 - 6 6 1 9 ) .

En c l o s ed i s a co py o f a s ta nda rd f o rm f o r y o ur us e i n s ubm i t ti ng t enders f o r t h is o f f er i ng ( o r f o r a ny  

s ubs equ ent o f f er i ng o f 2 - y ea r no t e s ) .

Th i s Ba nk w i l l r ece iv e tenders up t o 1 : 3 0 p . m . , Ea s t ern D a y l i g h t Sa v ing t im e , W edn es da y , J u l y 2 3 , 

1 9 8 0 , a t t he Secur i ti e s D epa r t m ent o f it s Hea d O f f i ce a nd a t i ts Bu f f a l o B ra nch .  A ll competitive tenders, 

w h et her t ra nsm i tt ed by m a i l o r by o ther m ea ns , m us t r ea ch t h is Ba nk o r i ts Bra nch by tha t t im e . H o w ev er ,  

f o r inv es t o r s w ho w i sh t o s ubm i t no nco m pet i t iv e t enders a nd w ho f i nd it m o re co nv en i en t t o m a i l t hei r 

tenders than to present them in person, the o f f i c ia l o f fer ing c ircular prov ides that noncompetitive  t enders  

wi l l be cons idered t imely rece ived i f they are m ai led to this Bank or it s Branch un der a pos tm ark no later  

than July 22.

Bidders sub m itt ing no nc om pet i t ive tenders sho uld rea l i ze that it i s poss ib le that the average price m ay  

be a bo v e pa r , i n w h i ch ca s e t hey w o u l d ha v e t o pa y m o re t ha n t he f a ce v a l ue f o r t he s ecur i t i e s .

P a y m ent w i t h a tender m a y be in t he f o rm o f a pers o na l check , w h i ch need no t be cer t i f ied , a n o f f i c i a l  

ba nk c heck , o r a F edera l f unds check ( a check dra w n by a co m m erc i a l ba nk o n i t s F edera l R es erv e a cco un t ) . 

A l l checks m us t be dra w n pa y a b l e t o t he F edera l R es erv e Ba nk o f N ew Y o rk; checks endorsed to this Bank  

will not be accepted.  P a y m ent m a y a l s o be m a de i n ca sh o r i n Trea s ury s ecur i t ie s m a t ur i ng o n o r be f o re t he  

i ss ue d a t e o f t he s ecur i ti e s be i ng purcha s ed .

R eco rded m es s a g es pro v i de i n f o rm a t i o n a bo u t Trea sury o f f er i ng s a nd a b o ut a u c t i o n re su l ts : a t t he  

H ea d O f f i ce — Te l . N o . 2 1 2 - 7 9 1 - 7 7 7 3 ( o f f er i ng s ) a nd Te l . N o . 2 1 2 - 7 9 1 - 5 8 2 3 ( re s u lt s ); a t t he Bu f f a l o  

Bra nch — Te l . N o . 7 1 6 - 8 4 9 - 5 0 4 6 . A dd i t io na l inqu i r ie s r eg a rd i ng th i s o f f er i ng m a y be m a de by ca l li ng , a t 

t he H ea d O f f i ce , Te l . N o . 2 1 2 - 7 9 1 - 6 6 1 9 , o r , at t he B uf f a l o Bra nch , Te l . N o . 7 1 6 - 8 4 9 - 5 0 1 6 .

A n t h o n y   M. So l o m o n , 

President.

(Over)

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HIGHLIGHTS OF TREASURY 

OFFERING TO THE PUBLIC 

OF 2-YEAR NOTES 

TO BE ISSUED JULY 31, 1980

(Delivery date fo r coupon securities is August 8, 1980)

Amount Offered:

To the public $4,500 million

Description of Security:

Term and type of security............

Series and CUSIP designation . . .

Maturity d ate ................................

Call d a te .........................................

Interest coupon r a te  ....................

Investment yield ............................

Premium or discoun t....................

Interest payment dates ................

Minimum denomination available

2-year notes

Series U-1982

(CUSIP No. 912827 KW1)

July 31, 1982

 No provision

To be determined, based on the

average of accepted bids

To be determined at auction

To be determined after auction

January 31 and July 31

$5,000

Terms of Sale:

Method of sa le ................................................................................................... Yield auctionAccrued interest payable by investo r............................................................... None

Preferred allo tm en t........................................................................................... Noncompetitive bid for $1,000,000 or less

Payment by non-institutional investors......................................................... Full payment to be submitted

with tender

Deposit gua rantee by designated insti tu tio ns ................................................. Acceptable

Key Dates:

Deadline for receipt of tenders......................................................................... Wednesday, July 23, 1980, by 1:30 p.m ., EDST

Settlement date (final payment due from institutions)

a) cash or Federal funds............................................................................... Thursday, July 31, 1980

 b) readily collectible c heck ........................................................................... Tuesday, July 29, 1980

Delivery date for coupon securit ies................................................................. Friday, August 8,1980

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P   R   I   V   A   C   Y

   A   C   T   S   T   A   T   E   M   E   N   T

 .  n  e   i  n   d   i  v   i   d  u  a   l   l  y   i   d  e  n

   t   i   f   i  a   b   l  e   i  n   f  o  r  m  a   t   i  o  n  r  e  q  u   i  r  e   d  o  n   t   h   i  s   f  o  r  m    i  s

  n  e  c  e  s  s  a  r  y   t  o  p  e  r  m   i   t   t   h  e  s  u   b  s  c  r   i  p   t   i  o  n   t  o   b  e  p  r  o

  c  e  s  s  e   d  a  n   d   t   h  e  s  e  c  u  r   i   t   i  e  s   t  o   b  e   i  s  s  u  e   d .

   I   f  r  e  g   i  s   t  e  r  e   d  s  e  c  u  r   i   t   i  e  s

e  q  u  e  s   t  e   d ,   t   h

  e  r  e  g  u   l  a   t   i  o  n  s  g  o  v  e  r  n   i  n  g   U  n   i   t  e   d   S   t  a   t  e  s  s  e  c  u  r   i   t   i  e  s   (   D  e  p  a  r   t  m  e  n   t   C   i  r  c  u   l  a  r   N  o .

   3   0   0   )  a  n   d   t   h  e  o   f   f  e  r   i  n  g  c   i  r  c  u   l  a  r  r  e  q  u   i  r  e  s  u   b  m   i  s  s   i  o  n  o   f  s  o  c   i  a   l  s  e  c  u  r   i   t  y  n  u  m   b  e  r  s  ;   t   h  e  n  u  m   b  e  r  s  a  n   d  o   t   h  e  r   i  n

   f  o  r  m  a   t   i  o  n  a  r  e

   i  n   i  n  s  c  r   i   b   i  n

  g   t   h  e  s  e  c  u  r   i   t   i  e  s  a  n   d  e  s   t  a   b   l   i  s   h   i  n  g  a  n   d  s  e  r  v   i  c   i  n  g   t   h  e  o  w  n  e  r  s   h   i  p  a  n   d   i  n   t  e  r  e  s   t  r  e  c  o  r   d  s .   T   h  e   t

  r  a  n  s  a  c   t   i  o  n  w   i   l   l  n  o   t   b  e  c  o  m  p   l  e   t  e   d  u  n   l  e  s  s  a   l   l  r  e  q  u   i  r  e   d   d  a   t  a   i  s   f  u  r  n   i  s   h  e   d .

Form 2N-n

IMPORTANT—This is a standard form. Its terms are subject to change at any time by the Treasury. This 

tender will be construed as a bid to purchase the 2-year notes for which the Treasury has outstanding an 

invitation for tenders.

TENDER FOR 2-YEAR TREASURY NOTES

To Fe d er a l  R e s er v e  Ba n k  o f  New  Yo r k  Fiscal Agent of the United States

 New York, N.Y. 10045

Dated a t ..................................................

..........................................................,19

Pursuant to the provisions of the public notice issued by the Treasury Department inviting tenders for the

current offering of 2-year Treasury notes, the undersigned hereby offers to purchase such currently offered

Treasury notes in the amount indicated below, and agrees to make payment therefor at your Bank in accordancewith the provisions of the official offering circular.

COMPETITIVE TENDER   D o n o t f i l l in b o th C o m p e ti ti v e a n d  

 N o n c o m p e ti ti v e te n de rs on on e fo r m NONCOMPETITIVE TENDER 

$ .......................................................... (maturity value)

or any lesser amount that may be awarded.

Yield:..................

( Y i e l d mu s t be e xpre s se d w i t h n o t more t h an t wo  

 d ec im a l p la ce s, f o r ex am p le , 11 .0 6)

$ .......................................................... (maturity value)( N o t t o e xc e e d $1 , 000 , 000 f o r on e b i dde r t h rou gh a l l sou rc e s )

at the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and on the

reverse side (if registered securities are desired, please also complete schedule on reverse side):

Pieces D en om in ation M atu rity value

XXX xxxxxx XXX XXX XXX

$ 5,000

$ 10,000

$ 100,000

$ 1,000,000

Totals

  Deliver over the counte r to the 

undersigned (1)

  Ship to the undersign ed (2)

  Hold in safekeeping (for member 

bank only) in —

  Investment Accoun t (4)

  General Account (5)

  Trust Accoun t (6)

  Hold as collateral for Treasury Tax and 

Loan Account* (7)

  Wire to

Payment will be made as follows:

  By charge to our reserve accoun t (D)

| | By cash or check in i mme di a t e l y

 av a il a b le f u n d s   (F)

Q By surrender of m aturing securities (E)

  By charge to my correspond ent

ba nk.........................................................(D)(Name of bank)

  Special instructio ns (3)

(Exact Receiving Bank Wire Address/Account)

(8)

*The undersigned certifies that the allotted securities will be owned solely by the undersigned.(If a commercial bank or dealer is subscribing for its own account or for account of customers, the following  

certifications are made a part of this tender.)

WE HEREBY CERTIFY that we have not made and will not make any agreements for the sale or purchase ofany securities of this issue prior to the closing time for receipt of this tender.

WE FURTHER CERTIFY that we have received tenders from customers in the amounts set forth opposite theirnames on the list which is made a part of this tender and that we have received and are holding for the Treasury, orthat we guarantee payment to the Treasury of, the payments required by the official offering circular.

WE FURTHER CERTIFY that tenders received by us, if any, from other commercial banks or primary dealers fortheir own account, and for the account of their customers, have been entered with us under the same conditions,agreements, and certifications set forth in this form.

 In se rt th is te nder in   sp ecia l envelo pe m ark ed  

“ Tender fo r Treasury 

 N ote s or B onds ”

n a m e   o f   s u b s c r i b e r   (p l e a s e   p r i n t   o r   t y p e )

CITY

PHONE (INCLUDE AREA CODE) 

't i t l e   o f   AUTHORIZED s i g n e r

SIGNATURE OF SUBSCRIBER OR AUTHORIZED SIGNATURE

(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider.)

(Name of customer) (Name of customer)

INSTRUCTIONS:

1. No tender for less than $5,000 will be considered; and each tender must be for a multiple o f $5,000 (maturity value).

2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their  

positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may  consolidate com petitive tenders a t th e s a m e y ie ld  and may consolidate n oncompetitive tenders, provided a list is attached show ing the name  

of each bidder and the amount bid for his or her account. Others will not be permitted to submit tenders except for their own account.

3. Tenders will be received without de posit from com mercial and other banks for their own accoun t, federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international 

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HEDULL . OR ISSUE OF REGISTERED TREASURY SECURITIES SUBSCRIPTION NO

S C R I B E R ’ S N A M E .

R ES S ________________ 

Y ______________________ 

N A T U R E .

. S T A T E . Z I P

DELIVERY INSTRUCTIONS PAYMENT INSTRUCTIONS

n d e l i v e r   o v e r   THE COUNTER □ BY c h a r g e   t o  o u r RESERVE ACCOUNT

□ BY CASH OR CHECK INIMMEDIATELY AVAILABLE FUNDS 

□ BY SURRENDER QF 

MATURING SECURITIESr i BY CHARGE TO MY

CORRESPONDENT BANK

□ s h i p TO SUBSCRIBER

□ OTHER INSTRUCTIONS:

F O R F R B U S E O N L Y

TRANS. ACCOUNTING DATE

I S SU E A G E N T 12 LOAN CO

1 1 0 - 0

R E G I S T R A T I O N I N S T R U C TI O N SNO. OFPIECES A M O UNT

SERIAL NOS.

(LEAVE BLANK) FOR FRB USE ONLY

ME(S)

OR S.S. NO.

DRE S S

TY S TA TE ZI P

5,000

10,000

100,000

1,000,000

TOTAL

TR. CASE NO.

ME(S)

OR S.S. NO.

DRE S S

Y S TA TE ZI P

32 5,000

10,000

100,000

1, 000,000

TOTAL

TR. CASE NO.

ME(S)

OR S.S. NO.

DRESS

Y S TA TE ZIP

32 5,000

10,000

100,000

1,000,000

TOTAL

TR. CASE NO.

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UNITED STATES OF AMERICA 

TREASURY NOTES OF JULY 31, 1982SERIES U-1982

DEPARTMENT CI RCULARPubl i c Debt Ser i es - No. 22- 80

DEPARTMENT OF THE TREASURY,OFFI CE OF THE SECRETARY,

Washi ngton, J ul y 16, 1980

1. I NVI TATI ON FOR TENDERS

1. 1. The Secr etary of t he Treasur y, under the aut hori t y

of the Second Li ber t y Bond Act , as amended, i nvi t es t enders f or

appr oxi mat el y $4, 500, 000, 000 of Uni t ed St at es secur i t i es,

desi gnat ed Treasur y Notes of J ul y 31, 1982, Ser i es U- 1982 ( CUSI P

No. 912827 KW 1). The secur i t i es wi l l be sol d* at auct i on, wi t h

bi ddi ng on the basi s of yi el d. Payment wi l l be r equi red at t he

pr i ce equi val ent of the bi d yi el d of each accept ed t ender . The

i nt er est rat e on the secur i t i es and the pr i ce equi val ent of eachaccepted bi d wi l l be det ermi ned i n the manner descr i bed bel ow.

Addi t i onal amount s of t hese secur i t i es may be i ssued to

Government accounts and Federal Reserve Banks f or t hei r own

account i n exchange f or mat ur i ng Tr easur y secur i t i es. Addi t i onal

amount s of the new securi t i es may al so be i ssued at the aver age

pr i ce to Feder al Reser ve Banks, as agent s f or f orei gn and i nt er

nat i onal monet ary aut hor i t i es, to the extent t hat the aggr egat e

amount of t enders f or such account s exceeds t he aggr egat e amount

of matur i ng secur i t i es hel d by them.

2. 1. The secur i t i es wi l l be dated ' J ul y 31 , 1980, and wi l l

bear i nt er est f r om t hat date, payabl e on a semi annual basi s on

 J anuar v 31/ 1981, and each subsequent 6 mont hs on J ul y 31 and

 J anuar v 31, unt i l the pr i nci pal becomes payabl e. They wi l l

matur e J ul y 31, 1982, and wi l l not be subj ect to cal l f or

r edempt i on pr i or to mat ur i t y.

2. 2. The i ncome der i ved f rom the secur i t i es is subj ect

to al l t axes i mposed under the I nternal Revenue Code of 1954.

 The secur i t i es are subj ect to estate, i nher i t ance, gi f t or other

exci se taxes, whet her Feder al or Stat e, but are exempt f rom al l

t axat i on now or her eaf t er i mposed on the pr i nci pal or i nt er est

2. DESCRI PTI ON OF SECURI TI ES

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t hereof by any Stat e, any possessi on of the Uni t ed St ates, or any

l ocal t axi ng aut hor i t y.

2. 3. The secur i t i es wi l l oe accept abl e to secure deposi t s

of publ i c moni es. They wi l l not be accept abl e i n payment of

t axes.

2. 4. Bearer secur i t i es wi t h i nt erest coupons at t ached,and secur i t i es regi st ered as to pr i nci pal and i nt erest , wi l l be

i ssued i n denomi nat i ons of $5, 000, $10, 000, $100, 000, and

$1, 000, 000. Book- ent r y secur i t i es wi l l be avai l abl e to el i gi bl e

bi dders i n mul t i pl es of t hose amount s. I nt erchanges of

secur i t i es of di f f er ent denomi nat i ons and of coupon, r egi st er ed

and book- ent r y secur i t i es, and the t r ansf er of r egi st er ed

secur i t i es wi l l be permi t t ed.

2. 5. The Depar t ment of the Treasury' s general

r egul at i ons gover ni ng Uni t ed St at es secur i t i es appl y to the

secur i t i es of f er ed i n t hi s ci r cul ar . These gener al r egul at i ons

i ncl ude those cur r ent l y i n ef f ect , as wel l as t hose t hat may be

i ssued at a l at er date.

- 2 -

3. SALE PROCEDURES

3. 1. Tenders wi l l be r ecei ved at Federal Reserve Banks

and Branches and at the Bureau of the Publ i c Debt , Washi ngt on,

D. C. 20226, up to 1: 30 p. m. , East ern Dayl i ght Savi ng t i me,

Wednesday, J ul y 23, 1980. Noncompet i t i ve t ender s as def i nedbel ow wi l l be consi dered t i mel y i f post marked no l at er than

 Tu esday, J ul y 22, 1980.

3. 2. Each t ender must stat e the f ace amount of secur i t i es

0 10 f or. The mi ni mum bi d i s $5, 000 and l arger bi ds must be i n

mul t i pl es of  t hat amount . Compet i t i ve t ender s must al so show the

yi eI d desi r ed , expressec i n t erms of  an annual yi el d wi t h two

deci mal s, e. g. , 7. 11%. Common f r act i ons may not be used.

Noncompet i t i ve tender s must show the term "noncompet i t i ve" on the

t ender f orm i n l i eu of a speci f i ed yi el d. No bi dder may submi t

more t han one noncompet i t i ve t ender and the amount may not exceed

$1 , 000, 000.

3. 3. Al l bi dders must cer t i f y t hat they have not made and

wi l l not make any agreement s f or the sal e or pur chase of any

secur i t i es of t hi s i ssue pr i or to the deadl i ne est abl i shed i n

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Sect i on 3. 1. f or recei pt of t enders. Those aut hor i zed to submi t

t ender s f or the account of cust omer s wi l l be r equi r ed to cert i f y

t hat such t enders are submi t t ed under the same condi t i ons, agr ee

ment s, and cer t i f i cat i ons as tender s submi t t ed di r ect l y by

bi dder s f or t hei r own account .

3. 4. Commerci al banks, whi ch f or thi s pur pose are def i ned

as banks accept i ng demand deposi t s, and pri mary deal ers, whi ch

f or thi s pur pose are def i ned as deal ers who make pri mary market s

i n Government secur i t i es and repor t dai l y to the Federal Reser ve

Bank of New Yor k t hei r posi t i ons i n and borr owi ngs on such

secur i t i es, may submi t t ender s f or account of cust omer s i f the

names of the cust omers and the amount f or each cust omer are

f urni shed. Ot her s are onl y per mi t t ed to submi t t ender s f or t hei r

own account .3. 5. Tender s wi l l be r ecei ved wi t hout deposi t f or t hei r

own account f rom commerci al banks and other banki ng i nst i t ut i ons;

pr i mar y deal er s, as def i ned above; Federal l y- i nsured savi ngs and

l oan associ at i ons; St at es, and t hei r pol i t i cal subdi vi si ons or

i nst r ument al i t i es; publ i c pensi on and r et i r ement and ot her publ i c

f unds; i nt er nat i onal organi zat i ons i n whi ch the Uni t ed St at es

hol ds membershi p; f or ei gn cent ral banks and f or ei gn states;

Federal Reserve Banks; and Government account s. Tenders f rom

other s must be accompani ed by ful l payment f or the amount of

secur i t i es appl i ed f or ( i n the f orm of cash, mat ur i ng Tr easur y

secur i t i es or r eadi l y col l ect i bl e checks) , or by a payment

guarant ee of 5 percent of the f ace amount appl i ed for, f rom a

commerci al bank or a pr i mary deal er.

3. 6. I mmedi at el y af t er the cl osi ng hour , t enders wi l l be

opened, f ol l owed by a publ i c announcement of the amount and yi el d

range of accept ed bi ds. Subj ect to the r eser vat i ons expr essed i n

Sect i on 4, noncompet i t i ve t ender s wi l l be accept ed i n f ul l , andt hen compet i t i ve tender s wi l l be accept ed, st ar t i ng wi t h t hose at

the l owest yi el ds, t hrough successi vel y hi gher yi el ds t o the

ext ent r equi r ed to at t ai n the amount of f ered. Tenders at t he

hi ghest accept ed yi el d wi l l be pror at ed i f necessary. Af t er t he

determi nat i on i s made as to whi ch t enders are accept ed, a coupon

rat e wi l l be est abl i shed, on the basi s of a 1/ 8 of one oercent

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i ncrement , whi ch resul t s i n an equi val ent average accept ed pr i ce

cl ose to 100. 000 and a l owest accept ed pr i ce above the or i gi nal

i ssue di scount l i mi t of 99. 500. That rat e of i nt erest wi l l be

pai d on al l of the secur i t i es. Based on such i nt erest r ate, the

pr i ce on each compet i t i ve tender al l ot t ed wi l l be determi ned and

each successf ul compet i t i ve bi dder wi l l be r equi r ed to pay the

pr i ce equi val ent to the yi el d bi d. Those submi t t i ng

noncompet i t i ve t ender s wi l l pay the pr i ce equi val ent to the

wei ght ed average yi el d of accept ed compet i t i ve t enders. Pr i ce

cal cul at i ons wi l l be car r i ed to t hree deci mal pl aces on the basi s

of pr i ce per hundred, e. g. , 99. 923, and the determi nat i ons of the

Secret ar y of the Tr easury shal l be f i nal . I f the amount of

noncompet i t i ve t ender s r ecei ved woul d absorb al l or most of the

of f eri ng, compet i t i ve tender s wi l l be accept ed i n an amountsuf f i ci ent to provi de a f ai r det er mi nat i on of the yi el d. Tender s

r ecei ved f rom Gover nment account s and Federal Reserve Banks wi l l

be accept ed at the pr i ce equi val ent to the wei ght ed average yi el d

of accept ed compet i t i ve tenders.

3. 7. Compet i t i ve bi dder s wi l l be advi sed of t he accept ance

or r ej ect i on of t hei r t ender s. These submi t t i ng noncompet i t i ve

t ender s wi l l onl y be not i f i ed i f the t ender i s not accept ed i n

f ul l , or when the pr i ce i s over par.

4. RESERVATI ONS

4. 1. The Secretary of t he Treasury expr essl y r eser ves the

r i ght to accept or r ej ect any or al l t enders i n whol e or i n par t ,

to al l ot mor e or l ess t han the amount of secur i t i es speci f i ed i n

Sect i on 1, and to make di f f erent percent age al l otment s to var i ous

cl asses of appl i cant s when the Secr et ar y consi der s i t i n the

publ i c i nt erest . The Secret ar y' s act i on under thi s Sect i on i s

f i nal .

5. PAYMENT AND DELI VERY5. 1. Set t l ement f or al l ot t ed secur i t i es must be made at

t he Federal Reserve Bank or Branch or at the Bur eau of the Publ i c

Debt , wher ever the t ender was submi t t ed. Set t l ement on

secur i t i es al l ot t ed to i nst i t ut i onal i nvestor s and to ot her s

whose t enders are accompani ed by a payment guarant ee as pr ovi ded

i n Sect i on 3. 5. , must be made or compl eted on or bef ore Thursday,

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 J ul y 31, 1980. Payment i n f ul l must accompany t enders submi t t ed

by al l other i nvest ors. Payment must be i n cash; i n other f unds

i mmedi at el y avai l abl e to the Treasury? i n Tr easur y bi l l s, not es

or bonds (wi th al l coupons det ached) mat uri ng on or bef ore the

set t l ement date but whi ch are not overdue as def i ned i n thegener al r egul at i ons gover ni ng Uni t ed St at es secur i t i es; or by

check drawn to the order of the i nst i t ut i on to whi ch the t ender

was submi t t ed, whi ch must be r ecei ved f rom i nst i t ut i onal

i nvest ors no l ater t han Tuesday, J ul y 29, 1980. When payment has

been submi t t ed wi t h the tender and the pur chase pr i ce of al l ot t ed

secur i t i es i s over par , sett l ement f or the pr emi um must be

compl eted t i mel y, as speci f i ed i n the precedi ng sent ence. When

payment has been submi t t ed wi t h the tender and the pur chase pr i ce

i s under par , the di scount wi l l be r emi t t ed to the bi dder .

Payment wi l l not be consi der ed compl ete where regi st ered

secur i t i es are r equest ed i f the appr opr i ate i dent i f yi ng number as

r equi r ed on tax r eturns and other document s submi t t ed to the

I nt ernal Revenue Ser vi ce (an i ndi vi dual ' s soci al secur i t y number

or an empl oyer i dent i f i cat i on number) i s not f urni shed. When

payment i s made i n secur i t i es, a cash adj ust ment wi l l be made to

or r equi red of the bi dder f or any di f f er ence bet ween the f ace

amount of secur i t i es present ed and the amount payabl e on thesecur i t i es al l ot t ed.

5. 2. I n ever y case where f ul l payment has not been

compl et ed on t i me, an amount of up to 5 percent of the f ace amount

cf secur i t i es al l ot t ed, shal l , at t he di scret i on of the Secret ar y

of the Tr easury, be f orf ei t ed to the Uni t ed Stat es.

5. 3. Regi st ered secur i t i es t ender ed i n payment for

al l ot t ed secur i t i es are not requi r ed to be assi gned i f the new

secur i t i es are to be r egi st ered i n the same names and f orms as

appear i n the r egi st r at i ons or assi gnment s of the secur i t i es

sur r ender ed. When the new secur i t i es are to be r egi st er ed i n

names and f orms di f f er ent f r om t hose i n the i nscr i pt i ons or

assi gnment s of the secur i t i es present ed, the assi gnment shoul d be

to "The Secret ar y of the Tr easur y for ( secur i t i es of f er ed by thi s

ci r cul ar) i n the name of ( name and t axpayer i dent i f yi ng number ) . "

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- 6 -

I f new secur i t i es i n coupon f orm are desi r ed, the assi gnment

shoul d be to "The Secretary of the Treasury f or coupon ( secur i t i es

of f er ed by thi s ci r cul ar ) to be del i ver ed to (name and address) . "

Speci f i c i nst r uct i ons f or t he i ssuance and del i ver y of the new

secur i t i es, si gned by the owner or aut hor i zed r epr esent at i ve, must

accompany the secur i t i es present ed. Secur i t i es t endered i n

payment shoul d be surr ender ed to the Federal Reserve Bank or

Br anch or to the Bur eau of the Publ i c Debt , Washi ngt on, D. C.

20226. The securi t i es must be del i ver ed at t he expense and r i sk

of the hol der .

5. 4. I f bearer secur i t i es are not ready f or del i ver y on the

set t l ement date, pur chasers may el ect to r ecei ve i nt er i m

cer t i f i cat es. These cer t i f i cat es shal l be i ssued i n bear er f orm

and shal l be exchangeabl e f or def i ni t i ve secur i t i es of thi si ssue, when such secur i t i es are avai l abl e, at any Federal

Reser ve Bank or Branch or at che Bureau of the Publ i c Debt ,

Washi ngt on, D. C. 20226. The i nt er i m cer t i f i cat es must be

r et ur ned at the r i sk and expense of  the hol der.

5. 5. Del i very of securi t i es i n r egi st er ed form wi l l be

made af t er the r equest ed f orm of r egi st r at i on has been val i dat ed

the regi st ered i nt erest account has been establ i shed, and the

secur i t i es have been i nscr i bed.

6. GENERAL PROVI SI ONS

6. 1. As f i scal agent s of t he Uni t ed Stat es, Federal

Reserve Banks are aut hori zed and r equest ed to r ecei ve tenders, to

make al l otment s as di r ected by the Secretary of the Treasury, to

i ssue such not i ces as may be necessar y, to r ecei ve payment f or

and make del i ver y of secur i t i es on f ul l - pai d al l ot ment s, and to

i ssue i nt er i m cer t i f i cat es pendi ng del i ver y of the def i ni t i ve

secur i t i es.

6. 2. The Secr etary of the Treasury may at any t i me i ssuesuppl ement al or amendatory rul es and r egul at i ons gover ni ng the

of f er i ng. Publ i c announcement of such changes wi l l be pr ompt l v

or ovi ced.

Paul H. Tayl or ,Fi scal Assi st ant Secretary.