Document:

Exhibit 4.2

 

MEMBER CAPITAL SECURITIES, SERIES 2017,
MAY NOT BE TRANSFERRED WITHOUT THE PRIOR WRITTEN CONSENT OF NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (“NATIONAL
RURAL”) AND ONLY NATIONAL RURAL’S VOTING MEMBERS MAY PURCHASE AND HOLD THE MEMBER CAPITAL SECURITIES, SERIES 2017.
ANY PURPORTED TRANSFER OF MEMBER CAPITAL SECURITIES, SERIES 2017, WITHOUT NATIONAL RURAL’S PRIOR WRITTEN CONSENT WILL BE
VOID AB INITIO. 

 

Certificate No.:

 

PRINCIPAL AMOUNT:

 

MATURITY DATE:

 

ISSUE DATE:

 

INTEREST PAYMENT DATES:

 

REGULAR RECORD DATES:

 

INTEREST RESET DATES:

 

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
CORPORATION

 

FLOATING RATE MEMBER CAPITAL SECURITIES

 

SERIES 2017

 

National Rural Utilities
Cooperative Finance Corporation, a cooperative association duly organized and existing under the laws of the District of Columbia
(herein referred to as the “Company,” which term includes any successor Person under the Indenture), for value received,
hereby promises to pay to              , or registered assigns, the
principal sum of                  on the Maturity
Date set forth above and to pay interest thereon as set forth below, until the principal hereof is paid or made available for payment.

 

Interest on the member
capital securities, series 2017 (the “Securities”), will be payable in arrears on the Interest Payment Dates set forth
above of each year, and at maturity, commencing on                 
    , 20XX.

 

The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will be payable to, as provided in such Indenture, the Person
in whose name this Security is registered at the close of business on the Regular Record Dates set forth above of each year. Interest
will be paid on such principal sum from the Maturity Date or from the most recent Interest Payment Date until the principal amount
thereof becomes due and payable.

 

Reference is hereby made
to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if forth at this place.

 

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	 	NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
	 	 
	 	 	 
	 	By:	

	 	Name: 	J.
Andrew Don
	 	Title:	
        Senior Vice President &

        Chief Financial Officer

 

	ATTEST:	 
	 	 
	 	 
	Assistant Secretary-Treasurer	 

 

     

     

    

 

CERTIFICATE OF AUTHENTICATION

 

Dated:                     

 

This is one of the Securities
of the series designated herein referred to in the within-mentioned Indenture.

 

	 	U.S. BANK NATIONAL ASSOCIATION
	 	 
	 	 	 
	 	By:	

	 	 	Authorized Signatory

 

     

     

    

 

REVERSE OF SECURITY 

 

This Security is one
of a duly authorized issue of subordinated debt securities of the Company (the “Series 2017 member capital securities,”
and, herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
October 15, 1996, as amended (herein called the “Indenture,” which term shall have the meaning assigned to it
in such instrument), between the Company and U.S. Bank National Association, as successor trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of
the series designated on the face hereof.

 

The amount of interest
payable on any Interest Payment Date shall be computed on the basis of the actual number of days in the applicable interest period
divided by 360.

 

The Securities will bear
interest for each interest period at a rate determined by the calculation agent, which shall initially be the Company, until such
time as the Company appoints a successor calculation agent (herein called the “Calculation Agent,” which term includes
any successor Calculation Agent). All calculations of the Calculation Agent, in the absence of manifest error, shall be conclusive
for all purposes and binding on the Company, the Holders and the Trustee.

 

In the event that any
date on which interest is payable on the Securities is not a Business Day, then payment of the interest payable on such date will
be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of any such delay),
except that, if such Business Day is in the following month, such payment will be made on the immediately preceding Business Day,
in each case with the same force and effect as if made on such date.

 

Any interest not punctually
paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner,
as more fully provided in the Indenture referred to on the reverse hereof.

 

The interest rate on
each Security will equal the interest rate calculated by reference to the specified interest rate formula set forth in an applicable
pricing supplement plus or minus any Spread and/or multiplied by an Spread Multiplier. The applicable pricing supplement will designate
one or more interest rate bases for the Security. The basis or bases will be determined by reference to the London Interbank Offered
Rate (“LIBOR”) or another interest rate basis or formula as set forth in the pricing supplement. A Security with a
basis or bases determined by reference to LIBOR shall be a LIBOR Security. If a Security’s basis is determined by reference
to another interest rate, the Security shall be a Floating Rate Security.

 

The rate of interest
on each Security will be reset according to the index maturity, as specified in the applicable pricing supplement. Unless specified
otherwise in the applicable pricing supplement, the interest rate will be reset each Interest Reset Date. The Interest Reset Dates
shall be as set forth on the front page hereof. The interest rate for the first interest period will be the initial interest rate
set forth in the applicable pricing supplement. The interest rate for the ten calendar days immediately prior to the Security’s
maturity will be that in effect on the tenth calendar day preceding maturity, unless otherwise specified in an applicable pricing
supplement.

 

If any Interest Reset
Date would otherwise be a day that is not a Business Day, the Interest Reset Date shall be postponed to the next succeeding Business
Day. For this purpose, “Business Day” shall mean (i) with respect to a LIBOR Security only, any day on which dealings
in deposits in U.S. dollars are transacted in the London interbank market, and (ii) with respect to any other Floating Rate
Security, any week day other than a day on which banking institutions in the Borough of Manhattan, City and State of New York are
authorized by law to close.

 

     

     

    

 

The interest determination
date pertaining to an Interest Reset Date for a LIBOR Security shall be the second London Business Day prior to that Interest Reset
Date.

 

The interest rate on
the Floating Rate Securities will in no event be higher than the maximum rate permitted by New York law as the same may be modified
by U.S. law of general application. Under present New York law, subject to certain exceptions, the maximum rate of interest for
any loan to an individual is 16% for a loan less than $250,000, and 25% for a loan of $250,000 or more but less than $2,500,000,
in each case calculated per year on a simple interest basis. There is no limit on the maximum rate of interest on loans made to
individuals in an amount equal to $2,500,000 or more. Under present New York law, the maximum rate of interest which may be charged
to a corporation for any loan up to $2,500,000 is 25% per year on a simple interest basis. There is no limit on the maximum rate
of interest on loans made to corporations in an amount equal to $2,500,000 or more.

 

Upon the request of a
Holder, the Calculation Agent will provide the interest rate which will become effective as a result of a determination made on
the most recent interest determination date with respect to that Security. Unless otherwise specified in an applicable pricing
supplement, the calculation date, if applicable, pertaining to any interest determination date will be the earlier of the tenth
calendar day after such interest determination date, or, if such day is not a Business Day, the next succeeding Business Day or
the Business Day preceding the applicable interest payment date or maturity, as the case may be.

 

LIBOR will be determined
by the Calculation Agent in accordance with the following procedures:

 

With respect to any Interest
Determination Date relating to a Floating Rate Security for which LIBOR is an applicable base rate, LIBOR will be the rate for
deposits in U.S. dollars having the index maturity specified in the applicable pricing supplement, commencing on the applicable
Interest Reset Date that appears on the designated LIBOR page, as defined below, as of 11:00 a.m., London time, on that Interest
Determination Date. If no rate appears on the designated LIBOR page at such time on an Interest Determination Date, LIBOR on such
Interest Determination Date will be determined as follows:

 

The Calculation Agent
will request the principal London offices of each of four major reference banks in the London interbank market, as selected by
the Calculation Agent after consultation with the Company, to provide the Calculation Agent with its offered quotation for deposits
in U.S. dollars for the period of the index maturity specified in the applicable pricing supplement, commencing on the applicable
Interest Reset Date, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that Interest Determination
Date and in a principal amount that is representative for a single transaction in U.S. dollars in the market at the time. If at
least two quotations are so provided, LIBOR for that Interest Determination Date will be the arithmetic mean of such quotations.
If fewer than two quotations are so provided, LIBOR for that Interest Determination Date will be the arithmetic mean of the rates
quoted at approximately 11:00 a.m., New York City time, on that Interest Determination Date by three major reference banks in New
York City, selected by the Calculation Agent after consultation with the Company, for loans in U.S. dollars to leading European
banks, having the index maturity specified in the applicable pricing supplement and in a principal amount that is representative
for a single transaction in U.S. dollars in that market at that time. If fewer than three banks selected by the Calculation Agent
are quoting as set forth above, LIBOR with respect to that Interest Determination Date will be LIBOR for the immediately preceding
interest reset period, or if there was no interest reset period, the rate of interest payable will be the initial interest rate.

 

The Calculation Agent
will, upon the request of the holder of any Security, provide the interest rate then in effect.

 

Each Security will be
issued in certificated form. Payment of the principal of and any interest on this Security payable at maturity or upon redemption
will be made in immediately available funds at the office of the paying agent in the Borough of Manhattan, City and State of New
York. Payments in immediately available funds will be made only if the certificated Security is presented to the paying agent in
time for the paying agent to make payments in immediately available funds in accordance with normal procedures. Interest on the
Securities will be paid by wire transfer in immediately available funds, but only if appropriate instructions have been received
in writing by the paying agent on or prior to the applicable regular record date for the payment of interest. If no instructions
have been received in writing by the paying agent, the funds will be paid by check mailed to the address of the person entitled
to such interest.

 

     

     

    

 

The Securities of this
series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail, at any time on or after the
date that is ten years from the Issue Date set forth on the front of this Security, as a whole or in part, at the election of the
Company, at a Redemption Price equal to 100% of the principal amount to be redeemed, together in the case of any such redemption
with accrued interest to, but not including, the Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holder of such Security, or one or more Predecessor Securities, of record at the
close of business on the related Regular Record Date referred to on the face hereof, all as provided in the Indenture.

 

In the event of redemption
of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.

 

The indebtedness evidenced
by this Security is unsecured and subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness,
which shall include all subordinated indebtedness of the Company that may be held by or transferred to non-members of the Company,
and this Security is issued subject to the provisions of the Indenture with respect thereto. The Securities of this series will
rank (i) pari passu to the Company’s member subordinated certificates and the Company’s other subordinated indebtedness
that may only be held by or transferred to members of the Company, including the Company’s previously issued and outstanding
member capital securities, and (ii) senior to the Company’s unretired patronage capital. Each Holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and
(c) appoints the Trustee his attorney-in-fact for any and all such purposes. Each Holder hereof, by his acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder
of such Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such Holder upon said provisions.

 

The Indenture contains
provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth
in the Indenture.

 

If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Indenture.

 

In addition to the events
of default set forth in the Indenture, the following will constitute an Event of Default under the Indenture with respect to the
Securities: the Company shall pay any dividend or interest on, or principal of, or redeem, purchase, acquire, retire or make a
liquidation payment with respect to, any Members’ Subordinated Certificates, Members’ Equity or patronage capital,
if such payment is made during an Extension Period, and either (i) such Extension Period has not expired or been terminated
or (ii) the Company has not made all payments due on the Securities as a result of such expiration or termination.

 

No payment will be made
in respect of the Securities if, at the time of such payment or immediately after giving effect thereto, (i) there exists
a default by the Company in the payment of principal or mandatory prepayments or premium, if any, of sinking funds or interest
on any senior or subordinated indebtedness (as defined in the instrument under which the same is outstanding) of the Company, or
(ii) there shall have occurred an event of default (other than a default in the payment of principal, premium, if any, mandatory
prepayments, sinking funds or interest) with respect to any senior or subordinated indebtedness (as defined in the instrument under
which the same is outstanding) permitting the holders thereof (or of the indebtedness secured thereby) to accelerate the maturity
thereof, and such event of default shall not have been cured or waived or shall not have ceased to exist.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of not less than
a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities
of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon
such Holder and upon all future Holders of this Security and of any Security issued upon the

 

     

     

    

 

registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject
to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect
to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the
Holders of not less than 33 1/3% in aggregate principal amount of the Securities of this series at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered
the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in aggregate principal
amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to
institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or interest
hereon on or after the respective due dates expressed herein.

 

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin
or currency, herein prescribed.

 

The Company may at its
option at any time and from time to time during the term of the Securities of this series defer the interest payment period for
a period not exceeding 10 consecutive semi-annual interest payments (or an equivalent period of quarterly or other interest payment
periods) (a “Deferral Period”), and at the end of such Deferral Period, the Company shall pay all interest then accrued
and unpaid (together with interest thereon at the same rate as specified for the Securities of this series to the extent permitted
by applicable law) through the last day of such Deferral Period, provided that if any principal amount of this Security is paid
on such day, then not including interest for such day with respect to such principal amount; provided, that during such Deferral
Period the Company may not declare or pay any dividend or interest on, or principal of, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of its Members’ Subordinated Certificates, Members’ Equity or patronage capital.
Prior to the termination of any such Deferral Period, the Company may further defer the payment of interest, provided that such
Deferral Period, together with all such previous and further deferrals thereof, may not exceed 10 consecutive semi-annual interest
payment periods (or an equivalent period of quarterly or other interest payment periods) or extend beyond the Stated Maturity of
the Securities of this series. Upon the termination of any such Deferral Period and the payment of all amounts then due, the Company
may elect a new Deferral Period, subject to the above conditions. No interest during a Deferral Period, except at the end thereof,
shall be due and payable. The Company shall give the Holder of this Security notice of its intent to defer payment of interest
in writing at least ten Business Days before the earlier of (i) the next interest payment due date and (ii) the date
CFC is required to give notice to holders of the Securities of the record or payment date for such interest payment.

 

The Securities of this
series are issuable only in registered form without coupons and in minimum denominations of $25,000 and integral multiples of $5,000
in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series
are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor and of authorized denominations,
as requested by the Holder surrendering the same.

 

No service charge shall
be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

The Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner
hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

 

The Securities may not
be transferred without the Company’s prior written consent and only the Company’s voting members may purchase and hold
the securities. Any purported transfer of the Securities without the Company’s prior written consent will be void ab initio.

 

The following terms shall
have the following meanings:

 

     

     

    

 

A “Business Day”
is any week day other than a day on which banking institutions in the Borough of Manhattan, City and State of New York are authorized
by law to close.

 

The “designated
LIBOR page” is the display on the Reuters screen “LIBOR01” page (or such other page as may replace such page
on that service or such other page as may be nominated by the ICE Benchmark Administration Limited (“IBA”) or its successor
or such other entity assuming the responsibility of IBA or its successor in calculating the London interbank offered rates for
U.S. dollar deposits in the event IBA or its successor no longer does so).

 

The “Spread”
is the number of basis points specified in the applicable pricing supplement as applying to the interest rate for the Security.

 

The “Spread Multiplier”
is the percentage specified in the applicable pricing supplement as applying to the interest rate for the Security.

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.Exhibit 4.3

 

This Security is a Depository
Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depository or nominee of
a Depository. This Security is exchangeable for Securities registered in the name of a Person other than the Depository or its
nominee only in the limited circumstances described in the Indenture, and no transfer of this Security (other than a transfer of
this Security as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or
another nominee of the Depository or by the Depository or any nominee of the Depository to a successor Depository or a nominee
of such successor Depository) may be registered except in such limited circumstances.

 

Unless this certificate
is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) to the issuer
or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede &
Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to
Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.

 

	REGISTERED	 	 	 	REGISTERED
	 	 	 	 	PRINCIPAL AMOUNT:
	NO. FXR	 	 	 	U.S. $

	 	 	 	 	 
	
        NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
        CORPORATION

        MEDIUM-TERM NOTE, SERIES D

	 	 	(FIXED RATE)	 	CUSIP NO.                     
	 	 	 	 	 
	ORIGINAL ISSUE DATE:	 	 	 	STATED MATURITY DATE:
	 	 	 	 	 
	INTEREST RATE:	 	 	 	 
	 	 	 	 	 
	REDEMPTION DATE(S):	 	 	 	REDEMPTION PERIOD(S) AND PRICE(S):
	 	 	 	 	 
	REPAYMENT DATE(S):	 	 	 	REPAYMENT PRICE(S):
	 	 	 	 	 
	INITIAL MATURITY DATE:	 	 	 	RENEWAL TERMS: (IF ANY)
	 	 	 	 	 
	FINAL MATURITY DATE:	 	 	 	EXTENSION TERMS: (IF ANY)
	 	 	 	 	 
	OTHER PROVISIONS:	 	 	 	OPTIONAL RESET DATE(S): (IF ANY)

 

     

     

    

 

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION, a District of Columbia cooperative association (herein called the “Company,” which
term includes any successor Person under the Indenture referred to on the reverse hereof), for value received, hereby promises
to pay to, or registered assigns, the principal sum of U.S. DOLLARS, on the Stated Maturity Date set forth above, and to pay interest
thereon from the Original Issue Date set forth above or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semiannually in arrears on January 15 and July 15 in each year, commencing on the first such Interest
Payment Date next succeeding the Original Issue Date and at Maturity (as defined below), at the per annum Interest Rate set forth
above, until the principal hereof is paid or made available for payment. The interest so payable and punctually paid or duly provided
for on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall
be the January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date; provided, however, that if the Original Issue Date falls between a Regular Record Date and an Interest Payment Date, the
first payment of interest will be paid on the Interest Payment Date following the next succeeding Regular Record Date to the person
in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on such next succeeding
Regular Record Date; and provided further that interest payable on the Stated Maturity Date or, if applicable, upon redemption
or repayment (such Stated Maturity Date, redemption date or repayment date, a “Maturity”) (whether or not such Maturity
Date is an Interest Payment Date) shall be payable to the Person to whom principal shall be payable. Except as otherwise provided
in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder
on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture. Payment of the principal of (and premium, if any) and interest on this Security will be made [at the office or
agency of the Company as may be designated by it for such purpose in the Borough of Manhattan, New York City in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company, payment of interest may be made by U.S. dollar check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding the foregoing, a holder of $10,000,000 or more in
aggregate principal amount of Securities of like tenor and terms shall be entitled to receive such payment of interest by wire
transfer in immediately available funds, but only if appropriate instructions have been received in writing by the Paying Agent
on or prior to the applicable Regular Record Date for such payment of interest] [by wire transfer to the account designated by
the Depository]. The Company has initially designated U.S. Bank National Association as its Paying Agent for the Securities in
the Borough of Manhattan, New York City.

 

REFERENCE IS HEREBY
MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH IN FULL ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN FULL AT THIS PLACE.

 

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof, directly or through an Authenticating
Agent, by manual signature of an authorized signatory, this Security shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

 

     

     

    

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed under its corporate seal.

 

	 	 	NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION,
	 	 	 	 
	TRUSTEE’S CERTIFICATE OF

                                                                                AUTHENTICATION
	 	By	 
	 	 	 	
        Sheldon C. Petersen

        Governor & Chief Executive Officer

	This is one of the Securities of the series designated therein issued under the within-mentioned Indenture.	 	 	 
	 	 	 	J.
Andrew Don 

Senior Vice President & Chief Financial Officer

	Dated:	 	 	 
	 	 	 	 
	U.S. Bank National Association, as Trustee	 	 	 
	 	 	 	
	 	 	Attest: 	

	 	 	 	Assistant Secretary-Treasurer

 

	By	 	 
	 	Authorized Signatory	 

 

     

     

    

 

NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION

MEDIUM-TERM NOTE, SERIES D

 

This Security is one
of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in
one or more series under an Indenture dated as of December 15, 1987, as supplemented by a First Supplemental Indenture dated
as of October 1, 1990 (the Indenture as so supplemented being herein called the “Indenture”), between the Company
and U.S. Bank National Association, as successor trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof, which series is limited in aggregate principal amount as described in the Indenture.

 

Each Security of this
series shall be dated the date of its authentication by the Trustee. Each Security of this series shall also bear an Original Issue
Date, as specified on the face hereof, and such Original Issue Date shall remain the same for all Securities subsequently issued
upon transfer, exchange or substitution of such original Security (or such subsequently issued Securities) regardless of their
dates of authentication.

 

Unless one or more Redemption
Dates are specified on the face hereof, this Security shall not be redeemable at the option of the Company before the Stated Maturity
specified on the face hereof. If one or more Redemption Dates (or ranges of Redemption Dates) are so specified, this Security is
subject to redemption on any such date (or during any such range) at the option of the Company, upon notice by first-class mail,
postage prepaid, mailed not less than 30 days nor more than 60 days prior to the Redemption Date specified in such notice,
at the applicable Redemption Price specified on the face hereof (expressed as a percentage of the principal amount of this Security),
together in the case of any such redemption with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is prior to the Redemption Date will be payable to the Holder of this Security, or one or more Predecessor Securities,
of record at the close of business on the relevant Regular or Special Record Dates, all as provided in the Indenture. The Company
may elect to redeem less than the entire principal amount hereof, provided that the principal amount, if any, of this Security
that remains outstanding after such redemption is an Authorized Denomination as defined herein. In the event of any redemption
in part, the Company will not be required to (i) issue, register the transfer of, or exchange any Security during a period
of 15 days next preceding the day of the first mailing of the notice of redemption of Securities selected for redemption or (ii) register
the transfer or exchange of any Security, or any portion thereof, called for redemption, except the unredeemed portion of any Security
being redeemed in part.

 

Unless one or more Repayment
Dates is specified above, this Security shall not be repayable at the option of the Holder on any date prior to the Stated Maturity
specified above. If one or more Repayment Dates (or ranges of Repayment Dates) are so specified, this Security is subject to repayment
on any such date (or during any such range) at the option of the Holder at a price equal to 100% of the principal amount hereof
or, if this Security is a Discounted Security (as specified on the face hereof), the applicable Repayment Price specified on the
face hereof (expressed as a percentage of the principal amount of this Security), together in the case of any such repayment with
accrued interest to the Repayment Date, but interest installments whose Stated Maturity is prior to the Repayment Date will be
payable to the Holder of this Security, or one or more Predecessor Securities, of record at the close of business on the relevant
Regular or Special Record Dates, all as provided in the Indenture. For this Security to be repaid at the option of the Holder,
the Paying Agent must receive, at least 30 days but not more than 60 days prior to the Repayment Date on which this Security
is to be repaid, (a) appropriate wire transfer instructions and (b) either (i) this Security with the form entitled
“Option to Elect Repayment” below duly completed or (ii) a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange, or the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust
company in the United States setting forth the name of the Holder of this Security, the portion of principal amount of this Security,
the principal amount of this Security to be repaid, the certificate number or a description of the tenor and terms of this Security,
a statement that the option to elect repayment is being exercised thereby and a guarantee that this Security, together with the
duly completed form entitled “Option to Elect Repayment” on this Security, will be received by the Paying Agent not
later than the fifth Business Day after the date of such telegram, telex, facsimile transmission or letter, provided, however,
that such Security and form duly completed are received by the Paying Agent by such fifth Business Day. Exercise of the repayment
option by the Holder shall be irrevocable, except a Holder who has tendered this Security

 

     

     

    

 

for repayment pursuant to a Reset Notice
or an Extension Notice (each as defined in the Prospectus Supplement related hereto). The repayment option with respect to this
Security may be exercised by the Holder for less than the entire principal amount hereof, provided that the principal amount, if
any, of this Security that remains outstanding after such repayment must be an authorized denomination as defined herein. The Company
will not be required to register the transfer or exchange of any Security following the receipt of a notice to repay a Security
as described above. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Security for
repayment will be determined by the Trustee, whose determination will be final, binding and non-appealable.

 

In the event of redemption
or repayment of this Security in part only, a new Security or Securities of this series and of like tenor and for a principal amount
equal to the unredeemed or unrepaid portion will be delivered to the registered Holder upon the cancellation hereof.

 

If so specified above,
the Stated Maturity of this Security may be extended at the option of the Company, in the manner set forth below (unless otherwise
provided on the face hereof), for the period or periods specified above (each an “Extension Period”) up to but not
beyond the date (the “Final Maturity Date”) set forth above:

 

(a) The Company may
exercise such option by notifying the Paying Agent of such exercise at least 45 but no more than 60 days prior to the Stated
Maturity in effect prior to such exercise (the “Original Stated Maturity”). If the Company exercises such option, the
Paying Agent will mail by first-class mail, postage prepaid, to the Holder of this Security no later than 40 days prior to
the Original Stated Maturity a notice setting forth (i) the election of the Company to extend the Stated Maturity, (ii) the
new Stated Maturity (which shall then be considered the Stated Maturity for all purposes of this Security), (iii) the interest
rate applicable to the Extension Period and (iv) the provisions, if any, for redemption during such Extension Period, including
the date or dates on which or the period or periods during which and the price or prices at which such redemption may occur during
the Extension Period. Upon the Paying Agent’s transmittal of the Extension Notice, the Original Stated Maturity of this Security
shall be extended automatically, and, except as modified by the Extension Notice and as described in the next paragraph, this Security
will have the same terms as prior to the transmittal of such Extension Notice.

 

(b) Notwithstanding
the foregoing, not later than 20 days prior to the Original Stated Maturity of this Security the Company may, at its option,
revoke the interest rate provided for in the Extension Notice and establish an interest rate that is higher than the interest rate
provided for in the Extension Notice for the Extension Period by mailing or causing the Paying Agent to transmit notice, by first
class mail, postage prepaid, of such higher interest rate to the Holder of this Security. Such notice shall be irrevocable. All
Securities with respect to which the Stated Maturity is extended will bear such higher interest rate for the Extension Period.

 

(c) If the Company elects
to extend the Stated Maturity of this Security, the Holder hereof will have the option to elect repayment of this Security by the
Company on the Original Stated Maturity at a price equal to the principal amount hereof plus interest accrued to such date. In
order for this Security to be so repaid on the Original Stated Maturity, the Holder hereof must follow the procedures set forth
above for optional repayment, except that the period for delivery of this Security or notification to the Paying Agent shall be
at least 25 but not more than 35 days prior to the Original Stated Maturity and except that, if the Holder hereof has tendered
this Security for repayment pursuant to an Extension Notice, such Holder may, by written notice to the Paying Agent, revoke such
tender for repayment until the close of business on the tenth day prior to the Original Stated Maturity.

 

If so specified above,
this Security may be renewed by the Holder of the Security on an Interest Payment Date (specified above) occurring in or prior
to the twelfth month following the Original Issue Date (the “Initial Maturity Date”) in accordance with the procedures
described below:

 

(a) On the Interest
Payment Date occurring in the sixth month (unless a different interval (the “Special Election Interval”) is specified
above) prior to the Initial Maturity Date (as specified above) of a Renewable Note (the “Initial Renewal Date”) and
on the Interest Payment Date occurring in each sixth month (or in the last month of each Special Election Interval) after such
Initial Renewal Date (each, together with the Initial Renewal Date, a “Renewal Date”), the term of this Security may
be extended to the Interest Payment Date occurring in the twelfth month (or, if a Special Election Interval is specified the last
month in a period equal to twice the Special Election Interval) after such Renewal Date, if the Holder of this Security elects
to extend the term of this Security or any portion hereof as provided below. If the Holder of this Security does not elect to extend
the term of any portion of

 

     

     

    

 

the principal amount of this Security during the specified period prior to any Renewal Date, such portion
will become due and payable on the Interest Payment Date occurring in the sixth month (or the last month in the Special Election
Interval) after such Renewal Date (the “New Maturity Date”).

 

(b) A Holder of this
Security may elect to renew the term of this Security, or if specified above, any portion thereof, by delivering a notice to such
effect to the Trustee (or any duly appointed Paying Agent) at the Corporate Trust Office not less than 15 nor more than 30 days
prior to such Renewal Date (unless another period is specified above as the “Special Election Period”). Such election
will be irrevocable and will be binding upon each subsequent Holder of this Security. An election to renew the term of this Security
may be exercised with respect to less than the entire principal amount of this Security only if so specified above and only in
such principal amount, or any integral multiple in excess thereof, as specified above. Notwithstanding the foregoing, the term
of this Security may not be extended beyond the Stated Maturity specified above.

 

(c) If the Holder of
this Security does not elect to renew this Security, this Security must be presented to the Trustee (or any duly appointed Paying
Agent) simultaneously with notice of such election (or, in the event notice of such election, together with a guarantee of delivery
within five Business Days, is transmitted on behalf of the Holder hereof from a member of a national securities exchange, the Financial
Industry Regulatory Authority, Inc., or a commercial bank or trust company in the United States, within five Business Days of the
date of such notice). As soon as practicable following receipt of this Security the Trustee (or any duly appointed Paying Agent)
will issue in exchange of this Security in the name of the Holder hereof (i) a Security, in a principal amount equal to the
principal amount of this Security for which the election to renew the term hereof was exercised, with terms identical to those
specified on this Security (except for the Original Issue Date and the Initial Interest Rate and except that such Security will
have a fixed, nonrenewable Stated Maturity on the New Maturity Date) and (ii) if such election is made with respect to less
than the full principal amount of this Security, a replacement Security in a principal amount equal to the principal amount of
this Security for which the election was made, with terms identical to this Security.

 

If so specified above,
the interest rate of this Note may be reset at the option of the Company on the date set forth on the face hereof (each an “Optional
Reset Date”) in accordance with the procedures described below:

 

(a) The Company may
exercise such option by notifying the Paying Agent of such exercise at least 45 but not more than 60 days prior to an Optional
Reset Date set forth on the face hereof. If the Company exercises such option, the Paying Agent will mail by first-class mail,
postage prepaid, to the Holder of this Security not later than 40 days prior to such Optional Reset Date a notice (the “Reset
Notice”) setting forth (i) the election of the Company to reset the interest rate of this Security, (ii) such new
interest rate, and (iii) the provisions, if any, for redemption of this Security during the period from such Optional Reset
Date to the next Optional Reset Date or, if there is no such next Optional Reset Date, to the Stated Maturity of this Security
(each such period a “Subsequent Interest Period”), including the date or dates on which or the period or periods during
which and the price or prices at which such redemption may occur during such Subsequent Interest Period.

 

(b) Notwithstanding
the foregoing, not later than 20 days prior to an Optional Reset Date of this Security, the Company may, at its option, revoke
the interest rate provided for in the Reset Notice and establish an interest rate that is higher for the Subsequent Interest Period
commencing on such Optional Reset Date by mailing or causing the Paying Agent to mail notice of such higher interest rate by first
class mail, postage prepaid, to the Holder of this Security. Such notice shall be irrevocable. All Securities with respect to which
the interest rate is reset on an Optional Reset Date will bear such higher interest rate.

 

(c) If the Company elects
to reset the interest rate of this Security, the Holder of this Security will have the option to elect repayment of this Security
by the Company on any Optional Reset Date at a price equal to the principal amount hereof plus interest accrued to such Optional
Reset Date. In order for this Security to be so repaid on an Optional Reset Date, the Holder hereof must follow the procedures
set forth above for optional repayment, except that the period for delivery of this Security or notification to the Paying Agent
shall be at least 25 but not more than 35 days prior to such Optional Reset Date and except that, if the Holder hereof has
tendered this Security for repayment pursuant to a Reset Notice, such Holder may, by written notice to the Paying Agent, revoke
such tender for repayment until the close of business on the tenth day prior to such Optional Reset Date.

 

     

     

    

 

Interest payments for
this Security will include interest accrued from and including the most recent date to which interest has been paid or duly provided
for (or from and including the Original Issue Date, if no interest has been paid with respect to this Security) to but excluding
the Interest Payment Date or Maturity Date. If any Interest Payment Date or the Maturity falls on a day that is not a Business
Day, the related payment of principal, premium, if any, or interest will be made on the next succeeding Business Day as if made
on the date such payment was due, and no interest will accrue on the amount so payable for the period from and after such Interest
Payment Date or Maturity, as the case may be. “Business Day” means any day that is not a Saturday or Sunday and that,
in New York City, is not a day on which banking institutions generally are authorized or obligated by law to close. Interest payments
for this Security shall be computed and paid on the basis of a 360-day year of twelve 30-day months.

 

The Company at its option,
subject to the terms and conditions provided in the Indenture, (a) will be discharged from any and all obligations in respect
of the Securities (except for certain obligations including obligations to register the transfer or exchange of Securities, replace
stolen, lost or mutilated Securities, maintain paying agencies and hold moneys for payment in trust) or (b) need not comply
with certain restrictive covenants of the Indenture after the Company deposits with the Trustee (or, in certain circumstances,
91 days after the Company deposits with the Trustee), pursuant to an escrow trust agreement, money or U.S. Government Obligations,
or a combination of money and U.S. Government Obligations, which through the payment of interest thereon and principal thereof
in accordance with their terms will provide money in an amount sufficient to pay all the principal of, and interest on, the Securities
on the dates such payments are due in the currency, currencies or currency unit or units, in which such Securities are payable
and in accordance with the terms of the Securities.

 

If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all
series affected thereby (acting as one class). The Indenture also contains provisions permitting the Holders of not less than a
majority in principal amount of the Outstanding Securities of all series affected thereby (acting as one class), on behalf of the
Holders of all Securities of each such series, to waive compliance by the Company with certain provisions of the Indenture. The
Indenture also provides that, regarding the Securities of any series, the Holders of not less than a majority in principal amount
of the Outstanding Securities of such series may waive certain past defaults and their consequences on behalf of the Holders of
all Securities of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As set forth in, and
subject to, the provisions of the Indenture, no Holder of any Security of this series will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder shall have previously given to the Trustee written
notice of a continuing Event of Default with respect to this series, the Holders of not less than 25% in principal amount of the
Outstanding Securities of this series shall have made written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, the Trustee shall not have received from the Holders of a majority in principal amount of the Outstanding
Securities of this series a direction inconsistent with such request and the Trustee shall have failed to institute such proceeding
within 60 days; provided, however, that such limitations do not apply to a suit instituted by the Holder hereof for the enforcement
of payment of the principal of (and premium, if any) or interest on this Security on or after the respective due dates expressed
herein.

 

No reference herein
to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Security at the times, places
and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the

 

     

     

    

 

office or agency as may be designated by the Company in the Borough
of Manhattan, New York City, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of the tenor and terms, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

 

The Securities of this
series are issuable only in registered form, without coupons, in denominations of U.S. $2,000 and any integral multiple of U.S.
$1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this
series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor and terms of a different
authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall
be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and the
Securities shall be governed by, and construed in accordance with, the laws of the State of New York.

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

  

     

     

    

 

ABBREVIATIONS

 

The following abbreviations,
when used in the inscription of the face of this instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

 

	TEN COM	-	as tenants in common	 	UNIF GIFT MIN Act      Custodian     
	TEN ENT	-	as tenants by the entireties	 	                                   (cust)            (Minor)
	JT TEN	-	as joint tenants with right of survivorship and not as tenants in common	 	
        Under Uniform Gifts to

        Minors Act                    

                                 (State) 

 

Additional abbreviations may also be used
though not in the above list.

 

     

     

    

 

FOR VALUE RECEIVED, the undersigned hereby
sell(s),

assigns and transfer(s) unto

 

Please insert social security

or other identifying number

of assignee

/                         
               /

PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING
POSTAL ZIP CODE OF ASSIGNEE

 

the within Security and all rights thereunder,
hereby irrevocably constituting and appointing                                         
                     Attorney
to transfer said Security on the books of the Company, with full power of substitution in the premises.

 

	Dated:                     	 	

	 	 	
        Signature

        (The signature to this assignment must correspond
        with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change
        whatever.)

         

 

     

     

    

 

OPTION TO ELECT REPAYMENT

 

TO BE COMPLETED ONLY
IF THIS SECURITY IS REPAYABLE AT THE OPTION OF THE HOLDER AND THE HOLDER ELECTS TO EXERCISE SUCH RIGHTS

 

The undersigned hereby
irrevocably requests and instructs the Company to repay the attached Security (or portion thereof specified below) pursuant to
its terms at a price equal to 100% of the principal amount thereof together in the case of any such repayment with interest to
the Repayment Date, to the undersigned at                                         
                    .

 

For the Security to
be repaid at the option of the Holder, the paying agent must receive as its corporate trust office, at least 30 days but not
more than 60 days prior to the Repayment Date on which the Security is to be repaid, (i) the Security together with this
“Option to Elect Repayment” form duly completed or (ii) a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange, or the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust
company in the United States setting forth the name of the Holder of the Security, the principal amount of the Security, the principal
amount of the Security to be repaid, the certificate number or a description of the tenor and terms of the Security, a statement
that the option to elect repayment is being exercised thereby and a guarantee that the Security, together with this duly completed
form entitled “Option to Elect Repayment” on the reverse of the Security, will be received by the paying agent not
later than the fifth Business Day after the date of such telegram, telex, facsimile transmission or letter, provided, however,
that such telegram, telex, facsimile transmission or letter shall be effective only if the Security with such form duly completed
are received by the paying agent by such fifth Business Day.

 

If less than the entire
principal amount of the attached Security is to be repaid, specify the portion thereof which the Holder elects to have repaid:                     ;
and specify the denomination or denominations (which shall be an Authorized Denomination) of the Security or Securities to be issued
to the Holder for the portion of the within Security not being repaid (in the absence of any specification, one such Security will
be issued for the portion not being repaid):                                         .

 

	Dated:                     	 	

	 	 	NOTICE: The signature to this Option to Elect Repayment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatsoever.

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