Source: http://getfilings.com/sec-filings/140310/RURAL-ELECTRIC-COOPERATIVE-GRANTOR-TRUST-KEPCO-SERIES-1997_10-K/
Timestamp: 2016-07-27 16:04:10
Document Index: 17574973

Matched Legal Cases: ['arty 6', 'arty 118', 'arty 6', 'arty 118', 'arty 5', 'arty 145']

RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997 - FORM 10-K - March 10, 2014
EX-99 - EXHIBIT 99 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex99.htm
EX-32.1 - EXHIBIT 32.1 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex32-1.htm
EX-12 - EXHIBIT 12 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex12.htm
EX-32.2 - EXHIBIT 32.2 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex32-2.htm
EX-31.1 - EXHIBIT 31.1 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex31-2.htm
For the transition period from _____to
Commission File Number: 333-25029
ELECTRIC COOPERATIVE GRANTOR TRUST
20701 Cooperative Way,
including area code: (703) 467-1800
by check mark if the registrant is a well-known seasoned issuer; as defined in Rule 405 of the Securities Act. Yes
by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes
contained to the best of the registrant's knowledge in definitive proxy or information statements incorporated by reference in
Note 2—Grantor Trust Certificates
Note 3—Derivative Instruments and Hedging Activities
ITEM 5.Market for
There is no established trading market for the certificates
representing ownership of the beneficial interest in the Rural Electric Cooperative Grantor Trust (KEPCO) Series 1997 (the “Trust”).
INFORMATION AND SUPPLEMENTARY DATA
We have audited the accompanying balance sheet of Rural Electric
Cooperative Grantor Trust (“KEPCO”) Series 1997 (the “Trust”) as of December 31, 2013, and the related
statements of comprehensive income, changes in deficit and cash flows for the year ended December 31, 2013. These financial statements
are the responsibility of the Trust’s Servicer. Our responsibility is to express an opinion on the financial statements based
accounting principles used and significant estimates made by the Servicer, as well as evaluating the overall financial statement
fairly, in all material respects, the financial position of the Trust as of December 31, 2013, and the results of its operations
and its cash flows for the year ended December 31, 2013, in conformity with U.S. generally accepted accounting principles.
Cooperative Grantor Trust (“KEPCO”) Series 1997 (the “Trust”) as of December 31, 2012, and the related
statements of comprehensive income, changes in deficit and cash flows for each of the two years in the period ended December 31,
2012. The financial statements are the responsibility of the Trust’s Servicer. Our responsibility is to express an opinion
on the financial statements based on our audits.
reasonable assurance about whether the financial statements are free of material misstatement. The Trust is not required to have,
but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting.
disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the Servicer,
fairly, in all material respects, the financial position of the Trust as of December 31, 2012, and the results of its operations
and its cash flows for each of the two years in the period ended December 31, 2012, in conformity with accounting principles generally
December 31, 2013 2012 Assets: Interest receivable — KEPCO $120,100 $147,302 Interest receivable — swap counterparty 6,624 5,022 Notes receivable 18,440,000 23,240,000 Total assets $18,566,724 $23,392,324 Liabilities: Servicer fees payable $1,470 $1,803 Interest payable — Grantor Trust Certificates 6,624 5,022 Interest payable — swap counterparty 118,630 145,499 Rural Electric Cooperative Grantor Trust Certificates 18,440,000 23,240,000 Derivative liability 2,659,203 4,328,016 Total liabilities 21,225,927 27,720,340 Commitments and contingencies — — Deficit: Accumulated deficit (2,997,177) (4,852,735)
Accumulated other comprehensive income 337,974 524,719 Total deficit (2,659,203) (4,328,016)
Total liabilities and deficit $18,566,724 $23,392,324 The accompanying notes are an integral part
Year Ended December 31, 2013 2012 2011 Revenues: Interest income from notes receivable $1,748,323 $2,082,599 $2,374,506 Total revenues 1,748,323 2,082,599 2,374,506 Expenses: Interest expense to certificateholders 60,883 86,104 155,118 Servicer fees 21,402 25,495 29,068 Total expenses 82,285 111,599 184,186 Derivative gain (loss), net 189,520 (346,673) (1,164,607)
Net income $1,855,558 $1,624,327 $1,025,713 Other comprehensive income (loss): Reclassification of derivative cumulative transition gain to net income (186,745) (221,298) (252,637)
Other comprehensive loss (186,745) (221,298) (252,637)
Total comprehensive income $1,668,813 $1,403,029 $773,076 The accompanying notes are an integral part
RURAL ELECTRIC COOPERATIVE GRANTOR
TRUST (KEPCO) SERIES 1997
Accumulated Other Accumulated Comprehensive Total Deficit Income Deficit Balance at December 31, 2010 $(7,502,775) $998,654 $(6,504,121)
Comprehensive income: Net income 1,025,713 — 1,025,713 Reclassification of derivative cumulative transition gain to net income — (252,637) (252,637)
Comprehensive income 1,025,713 (252,637) 773,076 Balance at December 31, 2011 $(6,477,062) $746,017 $(5,731,045)
Comprehensive income: Net income 1,624,327 — 1,624,327 Reclassification of derivative cumulative transition gain to net income — (221,298) (221,298)
Comprehensive income 1,624,327 (221,298) 1,403,029 Balance at December 31, 2012 $(4,852,735) $524,719 $(4,328,016)
Comprehensive income: Net income 1,855,558 — 1,855,558 Reclassification of derivative cumulative transition gain to net income — (186,745) (186,745)
Comprehensive income 1,855,558 (186,745) 1,668,813 Balance at December 31, 2013 $(2,997,177) $337,974 $(2,659,203)
Year Ended December 31, 2013 2012 2011 Cash flows from operating activities: Net income $1,855,558 $1,624,327 $1,025,713 Adjustments to reconcile net income to net cash provided by operating activities: Reclassification of derivative cumulative transition gain to net income (186,745) (221,298) (252,637)
Decrease in interest receivable — KEPCO 27,202 24,479 22,116 (Increase) decrease in interest receivable — swap counterparty (1,602) 3,018 13,286 Decrease in servicer fees payable (333) (300) (271)
Increase (decrease) in interest payable — Grantor Trust Certificates 1,602 (3,018) (13,286)
Decrease in interest payable — swap counterparty (26,869) (24,179) (21,845)
Decrease in derivative liability (1,668,813) (1,403,029) (773,076)
Net cash provided by operating activities — — — Cash flows from investing activities: Proceeds from principal payments on notes receivable 4,800,000 4,300,000 3,900,000 Net cash provided by investing activities 4,800,000 4,300,000 3,900,000 Cash flows from financing activities: Principal payments to certificateholders (4,800,000) (4,300,000) (3,900,000)
Net cash used in financing activities (4,800,000) (4,300,000) (3,900,000)
Net change in cash — — — Cash at beginning of year — — — Cash at end of year $— $— $— Supplemental cash flow information: Cash payments of interest expense to certificateholders $59,281 $89,122 $168,404 The accompanying notes are an integral part
of these financial statements. 7
(the “Trust”) was formed under a Trust Agreement dated December 20, 1996, among National Rural Utilities Cooperative
Finance Corporation (“CFC”), Kansas Electric Power Cooperative, Inc. (the “Cooperative”) and Bank One,
formerly The First National Bank of Chicago (the “Trustee”).
The assets of the Trust consist of lender loan notes (the “1997
Notes”) bearing interest at 7.597 percent and maturing in 2017. The 1997 Notes originated from a transaction whereby CFC
refinanced loans from the Federal Financing Bank, guaranteed by the Rural Utilities Service (“RUS”) and, in exchange,
CFC received from the Cooperative the 1997 Notes. CFC subsequently placed the 1997 Notes into two trusts, which have since been
terminated and replaced by the Trust. The 1997 Notes are guaranteed (the “Guarantee”) as to timely payment of principal
and interest by the United States Government (“U.S. Government”), acting through the Administrator of RUS. The General
Counsel of the United States Department of Agriculture has issued an opinion that the Guarantee is supported by the full faith
and credit of the U.S. Government. The Trust issued certificates of beneficial interests (the “Series 1997 Certificates”)
that bear interest at a variable rate and mature in 2017.
The Trust also holds certain rights the Cooperative assigned
to the Trust under an interest rate swap agreement (the “Swap Agreement”). The Swap Agreement was entered into to hedge
the interest rate exposure associated with the fixed-rate 1997 Notes and a variable-rate obligation. The counterparty to the Swap
Agreement is JP Morgan Chase & Co. (“JP Morgan”), successor to Morgan Guaranty Trust Company of New York. Pursuant
to the Swap Agreement, the Trust pays to JP Morgan a fixed rate of interest on the outstanding notional amount, and JP Morgan pays
the Trust a variable rate of interest on the outstanding notional amount. The structure is designed such that the interest amounts
paid by the Cooperative to the Trust are the same amounts paid to JP Morgan, pursuant to the Swap Agreement, plus the amounts payable
to CFC, as servicer. The amounts paid by JP Morgan to the Trust under the Swap Agreement are the same as the interest payable by
the Trust to the Series 1997 Certificateholders.
The initial notional amount of the Swap Agreement, which is
not included on the Trust’s balance sheet, was $57,390,000. The notional amount of the Swap Agreement decreases over time
in an amount such that the outstanding notional amount is always equal to the outstanding balance of the 1997 Notes and the Series
1997 Certificates. The Swap Agreement terminates in 2017, but is subject to early termination upon the early redemption of the
Series 1997 Certificates.
JP Morgan provides a liquidity facility with respect to the
Series 1997 Certificates until such time as all outstanding Series 1997 Certificates have been paid in full. Investors have the
right to put the certificates back to the remarketing agent in the event they are unable to resell the certificates. The remarketing
agent is Goldman, Sachs & Co. as successor to the original remarketing agent, Alex Brown & Sons, Incorporated.
Effective September 2, 2004, U. S. Bank Trust National Association
(“U.S. Bank Trust”) replaced Bank One as Trustee.
CFC is the servicer of the Trust and is paid a servicing fee
of 9.30 basis points under the Loan Guarantee and Servicing Agreement dated as of February 15, 1988, as amended (the “Guarantee
and Servicing Agreement”). CFC, however, no longer holds a retained interest in the trust. No delinquency in payment under
either the Note, the Guarantee or the Swap Agreement has occurred and no Event of Servicing Termination, or, to the best of the
Servicer's knowledge, event that with notice or lapse of time or both would become an Event of Servicing Termination, has occurred
accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of financial statements
in conformity with U.S. GAAP requires the Trust’s servicer to make estimates and assumptions with respect to, among other
things, various future factors which are difficult to predict and are beyond the control of the Trust. These estimates, which are
based on information available as of the date of the financial statements, affect the amounts reported in the financial statements
and related disclosures. Areas in which estimates have been made include, but are not limited to, the fair value of derivative
financial instruments. While the Trust’s servicer makes its best judgment, actual amounts or results could differ from these
The Trust accounts for the notes receivable based on historical
cost. No allowance for loan losses has been recorded because the timely payment of principal and interest is guaranteed by the
U.S. Government. Interest income is recognized on the notes as earned on an accrual basis.
The Trust accrues and recognizes interest expense on the trust
certificates as incurred.
Servicer Fee Expense
CFC is the depositor of the Trust and acts as servicer of the
1997 Notes. The Trust accrues and recognizes servicer fee expense based on a rate of 0.093 percent of the outstanding principal
balance of the 1997 Notes.
The Trust is neither a dealer nor a trader in derivative financial
instruments. The Trust entered into an interest rate swap derivative instrument to hedge its interest rate risk exposure related
to the 1997 Notes. Derivatives are reported at fair value on the balance sheet. Derivatives in a gain position are recorded as
a derivative asset, while derivatives in a loss position are reported as a derivative liability. Changes in fair value and interest
accruals on derivatives are recorded as a component of derivative gain (loss), net in the statements of comprehensive income.
The Trust did not have any derivatives in hedge accounting relationships
at December 31, 2013 or 2012. The trust, however, recorded a cumulative derivative transition gain of $4,628,105 in accumulated
other comprehensive income (“AOCI”) at January 1, 2001 as a result of the adoption of the derivative accounting guidance
that required derivatives to be reported at fair value on the balance sheet. The transition adjustment represents the difference
between the carrying amount of the interest rate swap derivative prior to the January 1, 2001 adoption of the derivative accounting
guidance and its fair value at the date of initial adoption. The transition gain is being reclassified into earnings and reported
in the statement of comprehensive income as a component of derivative gain (loss), net. Cash flows related to the interest rate
swap are classified in operating activities in the statements of cash flows.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) Comprehensive Income
Comprehensive income for the Trust consists of net income (loss)
plus changes in the cumulative derivative transition gain related to the transition adjustment recorded upon the January 1, 2001
adoption of the derivative accounting guidance.
The Trust is a pass-through entity, which is not subject to
income taxes. Therefore, it is expected that the Trust will not have any liability for federal or state income taxes for the current
2—GRANTOR TRUST CERTIFICATES Each Series 1997 Certificate represents an undivided fractional
interest in the Trust. The Trust Certificates are subject to redemption by the Cooperative, through the Trust, at any time based
on the remaining principal amount plus accrued interest. In the event of a continuing default, the RUS, as guarantor, may prepay
or purchase the 1997 Notes at that time.
The principal payments received on the 1997 Notes from the Cooperative
coincide with the payments due to the Series 1997 Certificateholders. Principal payments on the Trust Certificates began in 1998
and extend over a period of twenty years. Principal payments due each fiscal year through maturity of the 1997 Notes in fiscal
year 2017 are presented below.
Due Amount 2014 $5,300,000 2015 5,900,000 2016 4,000,000 2017 3,240,000 $18,440,000 NOTE
3—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Effective January 1, 2001, the Trust adopted the accounting
guidance which required that derivatives be recorded on the balance sheet at fair value. At adoption, the Trust had an interest
rate swap agreement that had been entered into to hedge the interest rate exposure associated with the fixed-rate 1997 Notes and
a variable-rate obligation. As noted above in “Note 1—Summary of Significant Accounting Policies,” the Trust
recorded a cumulative derivative transition gain of $4,628,105 in AOCI upon adoption of the derivative accounting guidance. The
interest rate swap was not designated as a qualifying hedge for accounting purposes on January 1, 2001, and has not been designated
as a qualifying hedge since that date. Therefore, all changes in the fair value of the interest rate swap subsequent to January 1,
2001 have been recorded in the statements of comprehensive income as a component of derivative gain (loss), net.
The table below summarizes the outstanding notional amount and
fair value of the Swap Agreement at December 31, 2013 and 2012. The Swap Agreement, which is with a highly rated counterparty,
contains master netting arrangements as part of the International Swaps and Derivatives Association (“ISDA”). The Swap
agreement does not require collateral posting.
December 31, 2013 2012 Notional Derivatives at Fair Value Notional Derivatives at Fair Value Amount Asset Liability Amount Asset Liability Derivatives not designated as accounting hedges: Interest rate swaps $18,440,000 $— $2,659,203 $23,240,000 $— $4,328,016 Total derivatives $18,440,000 $— $2,659,203 $23,240,000 $— $4,328,016 10
The table below displays the components of derivative gain (loss),
net presented in the statements of comprehensive income.
Year Ended December 31, 2013 2012 2011 Derivative settlement interest income (expense): Receive-variable interest rate swap $60,883 $86,104 $155,118 Pay-fixed interest rate swap (1,726,921) (2,057,104) (2,345,438)
Derivative settlement interest expense, net(1) (1,666,038) (1,971,000) (2,190,320)
Change in derivative fair value, net(2) 1,668,813 1,403,029 773,076 Reclassification of cumulative derivative transition gain to net income(3) 186,745 221,298 252,637 Derivative gain (loss), net $189,520 $(346,673) $(1,164,607)
(1) Represents the net accrued
interest amounts received from/(paid to) the swap counterparty.
(2) Represents the change in
the fair value of the interest rate swaps, excluding interest accruals.
(3) Represents reclassification of cumulative derivative
transition gain from AOCI to earnings.
The remaining cumulative derivative transition gain of $337,974
at December 31, 2013 will continue to be reclassified from AOCI into earnings over the remaining life of the interest rate swap,
which matures on December 4, 2017. A total of $148,175 is expected to be reclassified over the next twelve months.
4—FAIR VALUE
Fair value is defined as the price that would be received for
an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (also referred
to as an exit price). The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial
instruments. This hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable
or unobservable. Fair value measurement of an asset or liability is assigned to a level based on the lowest level of any input
that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:
Valuation based on quoted prices in active markets for identical assets or liabilities.
Valuation based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Level 3:
Valuation based on at least one significant unobservable input or model assumption requiring significant management judgment or estimation.
The accounting guidance for fair value requires maximizing the
use of observable inputs and minimizing the use of unobservable inputs in determining fair value.
The interest rate swap derivative is the only asset/liability
of the Trust that is measured and reported at fair value on a recurring basis in the financial statements. Because the interest
rate swap held by the Trust is not an exchange-traded derivative, quoted market prices are not readily available. The Trust obtains
the fair value measurement of the derivative from the derivative counterparty, which determines the fair value based on the net
present value of expected future cash flows calculated using observable market inputs, such as interest rate yield curves and current
The Trust performs independent validation procedures to corroborate
the fair value measures obtained from the derivative counterparty using pricing models based on observable market inputs. Accordingly,
the valuation technique for the interest rate swap is classified as Level 2.
The following fair value hierarchy table presents information
about the Trust’s assets and liabilities measured and reported at fair value on a recurring basis at December 31, 2013 and
December 31, 2013 2012 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $— $2,659,203 $— $2,659,203 $— $4,328,016 $— $4,328,016 Transfers
Between Level 1 and Level 2 There were no transfers between Levels 1 and 2 during 2013 or
3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Trust did not have any assets or liabilities measured at
fair value on a recurring basis using Level 3 valuation techniques at December 31, 2013 or 2012.
Assets and Liabilities Measured at Fair Value on a Nonrecurring
fair value on a nonrecurring basis during 2013 or 2012.
The tables below present the carrying value, fair value and
fair value hierarchy of financial instruments, whether or not they are measured and reported at fair value on Trust’s balance
sheets at December 31, 2013 and 2012.
December 31, 2013 Carrying Fair Fair Value Measurements Using Value Value Level 1 Level 2 Level 3 Financial assets: Interest receivable — KEPCO $120,100 $120,100 $— $120,100 $— Interest receivable — swap counterparty 6,624 6,624 — 6,624 — Notes receivable 18,440,000 20,955,745 — — 20,955,745 Financial liabilities: Servicer fees payable $1,470 $1,470 $— $1,470 $— Interest payable — Grantor Trust Certificates 6,624 6,624 — 6,624 — Interest payable — swap counterparty 118,630 118,630 — 118,630 — Rural Electric Cooperative Grantor Trust Certificates 18,440,000 18,440,000 — 18,440,000 — Derivative liability 2,659,203 2,659,203 — 2,659,203 — 12
December 31, 2012 Carrying Fair Fair Value Measurements Using Value Value Level 1 Level 2 Level 3 Financial assets: Interest receivable — KEPCO $147,302 $147,302 $— $147,302 $— Interest receivable — swap counterparty 5,022 5,022 — 5,022 — Notes receivable 23,240,000 27,204,777 — — 27,204,777 Financial liabilities: Servicer fees payable $1,803 $1,803 $— $1,803 $— Interest payable — Grantor Trust Certificates 5,022 5,022 — 5,022 — Interest payable — swap counterparty 145,499 145,499 — 145,499 — Rural Electric Cooperative Grantor Trust Certificates 23,240,000 23,240,000 — 23,240,000 Derivative liability 4,328,016 4,328,016 — 4,328,016 — Below is a summary of the valuation techniques used in estimating
the fair value amounts of the financial instruments of the Trust at December 31, 2013 and 2012. As required under the accounting
guidance for fair value, the valuation techniques have used quoted market prices and maximized the observable inputs whenever possible
and minimized the use of unobservable inputs.
Interest Receivable — KEPCO and Swap Counterparty
The carrying amounts of interest receivable approximate fair
value because of the relatively short period of time between their accrual and expected receipt of payment.
The fair value for notes receivable is estimated by discounting
the expected future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings
and for the same remaining maturities. Notes receivable are categorized in Level 3 of the fair value hierarchy.
The carrying amount of servicer fees payable approximates fair
value because of the relatively short period of time between their accrual and expected payment.
Interest Payable — Grantor Trust Certificates and
The carrying amounts of interest payable approximate fair value
because of the relatively short period of time between their accrual and expected payment.
The Series 1997 Trust Certificates pay a variable rate of interest
that is reset weekly, and as such are considered to be carried at fair value. Rural Electric Cooperative Grantor Trust Certificates
are categorized in Level 2 of the fair value hierarchy.
As noted above, the fair value of the derivative is obtained
from the derivative counterparty, which determines the fair value based on the net present value of expected future cash flows
calculated using observable market inputs, such as interest rate yield curves and current market interest rates, and is categorized
in Level 2 of the fair value hierarchy.
9.CHANGES IN
As previously disclosed in the Trust’s Current Report
on Form 8-K filed on November 18, 2013, on November 12, 2013, the Audit Committee of CFC, as servicer for the Rural Electric Cooperative
Grantor Trust (KEPCO) Series 1997, approved the dismissal of Deloitte and Touche LLP (“Deloitte”) as the Trust’s
Deloitte was notified of this action on November 15, 2013. Deloitte’s
report on the Trust’s financial statements as of and for the years ended December 31, 2012 and 2011 did not contain an adverse
opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.
During the years ended December 31, 2012 and 2011, and through
November 12, 2013, the date of Deloitte’s dismissal, (i) there were no disagreements between the Company and Deloitte on
any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Deloitte, would have caused Deloitte to make reference to the subject matter of the disagreement
in its reports on the financial statements for such years, and (ii) there were no “reportable events” as that term
is defined in Item 304(a)(1)(v) of Regulation S-K.
Engagement of New Independent Registered Public Accounting
on Form 8-K filed on December 16, 2013, on December 10, 2013, the Audit Committee of CFC, as servicer for the Rural Electric Cooperative
Grantor Trust (KEPCO) Series 1997, approved the appointment of KPMG LLP (“KPMG”) as the Trust’s independent registered
public accounting firm to perform independent audit services for the year ended December 31, 2013. During the years ended December
31, 2012 and 2011, and in the period through December 10, 2013, neither CFC, nor anyone on its behalf, consulted KPMG on any matters
or events set forth in Item 304(a)(1)(v) of Regulation S-K.
The Audit Committee has approved the audit services that KPMG
provides the Trust in accordance with applicable SEC independence rules.
(1)Financial Statements and Report of Independent Registered
The financial statements required
to be filed in this Form 10-K are included in “Part II, Item 8.”
Loan Agreement dated as of February 15, 1988 between National Rural Utilities Cooperative Finance Corporation (“CFC”) and the Cooperative (including form of Note and Guarantee) (incorporated by reference to Exhibit 10.1 to Registration Statement on Form S-1 [No. 33-16789 filed on August 27, 1987]).
Loan Guarantee and Servicing Agreement, dated as of February 15,
1988, among the Administrator of the RUS, the Cooperative, the Servicer, the Lender and the Trustee (incorporated by
reference to Exhibit 10.2 to Registration Statement on Form S-1 [No. 33-16789 filed on August 27, 1987]).
JP Morgan Chase & Co. (successor to Morgan Guaranty Trust Co. of NY) and Morgan Guaranty Trust Company of New York (Swap Counterparty) Financial Information. 31.1*
* Indicates a document being filed with this Report.
† Indicates a document
that is furnished with this Report, which shall not be deemed “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934, or otherwise subject to the liability of that Section.
pursuant to Section 15(d) of the Act by Registrants which have not registered securities pursuant to Section 12 of the Act.
By: NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION,
/s/ SHELDON C. PETERSEN