Holders of Certificates of Beneficial Interests
 Cooperative Utility Trust (Big Rivers Series) 1988-A3
August 15, 1996
Page 2

GAjn/CORPACTG/ADMIN/TRUSTS/LETTERS/BR88A3TR
August 15, 1996


TO:  Holders of Certificates of Beneficial Interests
     Cooperative Utility Trust (Big Rivers Series) 1988-A3
     Semiannual Report


Pursuant  to  Section  5.1  of the Trust  Agreement  among  the
Louisville Bank for Cooperatives (now merged and doing business
as  CoBank, ACB), as depositor of the Trust and Servicer of the
Note, Big Rivers Electric Corporation (the "Cooperative"),  and
First   Interstate  Bank  of  Arizona,  N.A.,  as  Trustee   of
Cooperative Utility Trust (Big Rivers Series) 1988-A3, dated as
of February 1, 1988, the Servicer hereby provides the following
information (stated on the basis of $1,000 of Initial Principal
amount)  as of the Certificate Payment Date, August  15,  1996,
(capitalized terms used but not otherwise defined herein  shall
have  the  meanings set forth in the Certificates of Beneficial
Interests and the Trust Agreement):

1.    The amount of the August 15, 1996, distribution allocable
to Principal of $0.00;

2.    The amount of the August 15, 1996, distribution allocable
to Interest is $47.50;

3.    The amount of the August 15, 1996, distribution allocable
to Premium is $0.00;

4.   The amount of the fees distributed to the Servicer through
     August  15,  1996,  since the next  preceding  Certificate
     Payment Date is $0.39; and

5.   The  Principal  Balance on the Certificates of  Beneficial
     Interests   outstanding  after  the   August   15,   1996,
     distribution is $1,000.00.

The  total  aggregate principal balance on all certificates  of
Beneficial  Interest  outstanding under  Cooperative  Utilities
Trust  (Big Rivers Series) 1988-A3 after the August  15,  1996,
distribution is $280,031,000.00.

To the best of the Servicer's knowledge, as of August 15, 1996,
no  delinquency in the payment under the Note not  timely  paid
under  the  Guarantee has occurred and no  Event  of  Servicing
Termination, or event that with notice of lapse of time or both
would  become  an Event of Servicing Termination, has  occurred
and is continuing.  The Cooperative did not make the payment of
Guaranteed Interest in the amount of $13,409,984.51 due on  the
Note  on August 5, 1996.  Pursuant to its Guarantee, the  Rural
Utilities Service paid the due amount of Guaranteed Interest on
August 9, 1996.

Interest  payments due on the Certificates have been calculated
on  the basis of a year of 360 days consisting of twelve 30-day
months  and computed over a period of time ending on,  but  not
including,  the  date on which payment was due on  the  related
Note  and beginning on, and including, the next preceding  date
on  which payment was due on that Note.  Payments on the  Notes
are  due  February  4 and August 4 of each year,  or  the  next
following business day if such date is not a business day.

Interest  for  this period was calculated from, and  including,
February  5,  1996,  to, but excluding,  August  5,  1996.   In
variance  from  the  180-day bond-convention  period,  interest
payment periods on the Note may be a few days more or less than
180 days with interest payments on the Certificates fluctuating
accordingly.

I,  Margaret  E. Newell, Vice President and Division  Manager--
General  Accounting,  a Responsible Officer  of  the  Servicer,
certify  that,  to  the best of my knowledge  and  belief,  the
Semiannual Report is complete and accurate.

Respectfully submitted,



Margaret E. Newell
Vice President and Division Manager--General Accounting