Document:

Exhibit 4.2

 

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

 

	Certificate No.:  1 	CUSIP No.:  637432ND3
	 	 
	ISIN No.: US637432ND31	 
	 	 
	PRINCIPAL AMOUNT:  $500,000,000	 
	 	 
	MATURITY DATE:  January 27, 2025	 
	 	 
	ISSUE DATE:  January 27, 2015	CERTIFICATE INTEREST RATE: 2.85%

 

2.85% COLLATERAL TRUST BOND DUE 2025

 

National Rural Utilities Cooperative Finance
Corporation, a District of Columbia cooperative association (hereinafter called the “Company”, which term includes
any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of $500,000,000 on the Maturity Date set forth above; and to pay interest
thereon from the Issue Date set forth above at the Certificate Interest Rate set forth above, until the principal hereof is paid
or made available for payment.

 

Interest on the Bonds will be payable on January
27 and July 27 of each year commencing on July 27, 2015 to the persons in whose names such Bonds are registered at the close of
business on the fifteenth calendar day preceding the payment date, or if not a Business Day, the next succeeding Business Day.
Interest on the Bonds will accrue from and including the date of issue or from and including the last date in respect of which
interest has been paid, as the case may be, to, but excluding, the relevant interest payment date, date of redemption or the date
of maturity, as the case may be. Interest on the Bonds will be computed on the basis of a 360-day year of twelve 30-day months.

 

If any of the interest payment dates or the
maturity date falls on a day that is not a Business Day, the payment of interest or principal will be postponed to the next succeeding
Business Day, but the payment made on such dates will be treated as being made on the date payment was first due and the holders
of the Bonds will not be entitled to any further interest or other payments with respect to such postponements.

 

    	 

    	 

    

 

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

 

Unless the certificate of authentication hereon
has been executed by or on behalf of U.S. Bank National Association, as Trustee under the Indenture, or its successor thereunder,
by manual signature, this Bond shall not be entitled to any benefit under such 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
	 	 	 
	 	By: 	 
	 	 	J. Andrew Don
	 	 	Senior Vice President and Chief Financial Officer

 

(Seal)

 

Attest:

 

	By :	 	 
	 	Assistant Secretary-Treasurer	 

 

Trustee’s Certificate of

Authentication

This is one of the Bonds

of the series designated therein,

described in the within-

mentioned Indenture

 

Dated:

 

	By: 	U.S. BANK NATIONAL ASSOCIATION,	 
	 	Trustee	 

 

	By: 	 	 
	 	Authorized Officer	 

 

    	 

    	 

    

 

REVERSE OF BOND

 

This Bond is one of an authorized issue of
Bonds of the Company known as its “2.85% Collateral Trust Bonds due 2025”, issued and to be issued in one or more series
under, and all equally and ratably secured (except as any sinking or other fund may afford additional special security for the
Bonds of any particular series) by, an Indenture dated as of October 25, 2007 (as amended, supplemented and modified and in effect
from time to time, the “Indenture”), executed by the Company to U.S. Bank National Association, as Trustee (herein
called the “Trustee”, which term includes any successor Trustee under the Indenture), to which Indenture reference
is hereby made for a description of the nature and extent of the securities and other property assigned, pledged, transferred and
mortgaged thereunder the rights of the Holders of said Bonds and of the Trustee and of the Company in respect of such security,
and the terms upon which said Bonds are to be authenticated and delivered.

 

The principal amount of the Bonds, designated
on the face hereof as $500,000,000 may be increased from time to time pursuant to Section 2.03 of the Indenture. All Bonds need
not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuance of
additional Bonds. Any such additional Bonds will have the same terms and conditions and the same CUSIP number as set forth herein.
No Bonds shall be authenticated and delivered in excess of the principal amount so increased except in accordance with the Indenture.
No additional Bonds shall be authenticated and delivered unless such additional Bonds would be fungible with all Bonds for United
States federal income tax purposes.

 

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 Bonds under the Indenture at any time by the Company with the consent of the Holders of not less than a majority
in aggregate principal amount of the Bonds at the time Outstanding as defined in the Indenture. The Indenture also permits, without
the consent of the holders of any Bonds, the parties to any Mortgage Notes pledged under the Indenture, and any Mortgages or Loan
Agreements pursuant to which they were issued, to modify, alter, supplement or amend such Mortgage Notes, Mortgages and Loan Agreements,
so long as thereafter such Mortgage will comply with the requirements of the Company’s standard lending practices, as such
policies may be amended from time to time. The Indenture also contains provisions permitting the Holders of specified percentages
in principal amount of the Bonds at the time Outstanding, on behalf of the Holders of all Bonds, 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 Bond shall be binding upon such Holder and upon all future Holders of this Bond 

 

    	 

    	 

    

 

and of any Bond
issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such action is made upon this
Bond.

 

As provided in the Indenture, said Bonds are
issuable in series which may vary as in said Indenture provided or permitted. This Bond is one of a series entitled 2.85% Collateral
Trust Bonds due 2025.

 

The Company may redeem
the Bonds at any time prior to October 27, 2024, in whole or in part, at a “make-whole” redemption price equal to the
greater of (1) 100% of the principal amount being redeemed or (2) the sum of the present values of the remaining scheduled payments
of the principal and interest (other than accrued interest) on the Bonds being redeemed that would be due if such Bonds matured
on October 27, 2024, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 20 basis points for the Bonds, plus in each of (1) and (2) above, accrued interest to, but excluding,
the redemption date.

 

At any time on or after
October 27, 2024, the Company may redeem the Bonds, at its option, in whole or in part, at a redemption price equal to 100% of
the principal amount of the Bonds to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date.

 

If the Company elects
to redeem less than all of the Bonds, and such Bonds are at the time represented by a global security, then the depositary will
select by lot the particular interest to be redeemed. If the Company elects to redeem less than all of the Bonds, and such Bonds
are not represented by a global security, the particular Bonds to be redeemed shall be selected by the Trustee from the outstanding
Bonds not previously called for redemption, in a manner the Trustee deems appropriate and fair.

 

Notice of any redemption
will be mailed at least 30 days but not more than 60 days before the date of redemption to each holder of the Bonds to be redeemed.
Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue
on such Bonds or the portions called for redemption.

 

If an Event of Default, as defined in the
Indenture, shall occur, the principal of this Bond may become or be declared due and payable immediately, in the manner and with
the effect provided in the Indenture.

 

This Bond is transferable by the registered
owner hereof in person or by attorney authorized in writing at the office or agency of the Company in the Borough of Manhattan,
City and State of New York or any other place or places where such Bond may be paid, upon surrender of this Bond, and upon any
such transfer a new Bond for the same series, for the same aggregate principal amount, will be issued to the transferee in exchange
hereof.

 

    	 

    	 

    

 

The Bonds of this series are issuable only
as registered Bonds without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided
in, and subject to the provisions of, the Indenture, Bonds of this series are exchangeable for other Bonds of this series of any
authorized denominations, of a like aggregate principal amount, as requested by the Holder surrendering the same.

 

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

 

Prior to due presentment for transfer at any
office or agency of the Company designated for such purpose, the Company, the Trustee and any agent of the Company or the Trustee
may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided
and for all other purposes whether or not this Bond be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

 

No reference herein to the Indenture and no
provision of this Bond 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 Bond at the times, place and rate, and in the coin or currency, herein prescribed.

 

The following terms shall have the following
meanings:

 

“Business Day” means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in the Borough of Manhattan, City and
State of New York are authorized by law to close.

 

“Comparable Treasury Issue’’
means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining
term of the Bonds being redeemed (assuming, for this purpose, that the Bonds matured on October 27, 2024) that would be utilized,
at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of such Bonds.

 

“Comparable Treasury Price’’
means with respect to any redemption date, (A) the average of the Reference Treasury Dealer Quotations for the redemption date,
after excluding the highest and lowest Reference Treasury Dealer Quotations for that redemption date, or (B) if the Company obtains
fewer than four Reference Treasury Dealer Quotations, the average of all the Reference Treasury Dealer Quotations obtained.

 

“Independent Investment Banker’’
means one of the Reference Treasury Dealers appointed by the trustee after consultation with the Company.

 

    	 

    	 

    

 

“Reference Treasury Dealer’’
means (1) each of J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc., and their respective affiliates
or successors; provided, however, that if any of them ceases to be a primary U.S. Government securities dealer in the United States,
the Company will appoint another primary U.S. Government securities dealer as a substitute, (2) one primary U.S. Government securities
dealer selected by each of Mitsubishi UFJ Securities (USA), Inc. and SunTrust Robinson Humphrey, Inc. and (3) any other U.S. Government
securities dealers selected by the Company.

 

“Reference Treasury Dealer Quotations’’
means, for each Reference Treasury Dealer and any redemption date, the average, as determined by the trustee, of the bid and ask
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to
the Trustee by the Reference Treasury Dealer at 5:00 p.m. New York City time on the third business day preceding the redemption
date for the bonds being redeemed.

 

“Treasury Rate’’ means,
for any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the redemption date.

 

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

 

    	 

    	 

    

 

ASSIGNMENT

 

For value received the
undersigned sells, assigns and transfers unto (name, address including zip code and taxpayer I.D. or Social Security number
of
assignee)
_______________________________________________________________________________________________
the within Certificate and does hereby irrevocably constitute and appoint
__________________________________________________________________ attorney to transfer the said Certificate on the
books kept for registration thereof with full power of substitution on the premises.

 

	Dated:  	 	 
	 	 	 
	 	 	 
	 	Signature by or on behalf of AssignorEX-10.1

 Exhibit 10.1 

NATIONAL COMMERCE CORPORATION 

2015 INCENTIVE PROGRAM 
 1.
Purpose and Administration of the 2015 Incentive Program. The 2015 Incentive Program (the “2015 Incentive Program”) has been established by National Commerce Corporation (together with its subsidiaries, the “Corporation”)
to encourage outstanding performance from its executive officers and certain other key employees. Subject to applicable law, all designations, determinations, interpretations and other decisions under or with respect to the 2015 Incentive Program or
any bonus award hereunder shall be within the sole discretion of the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Corporation, may be made at any time and shall be final,
conclusive and binding upon all persons. Designations, determinations, interpretations and other decisions made by the Compensation Committee with respect to the 2015 Incentive Program or any bonus award hereunder, including, but not limited to, the
application of the Recoupment Policy described herein, need not be uniform and may be made selectively among Eligible Participants, whether or not such Eligible Participants are similarly situated. 

2. Participation. All executive officers and certain other key employees of the Corporation are eligible to receive a bonus award
pursuant to the 2015 Incentive Program (each, an “Eligible Participant”). Each Eligible Participant selected by the Board to receive a bonus award under the 2015 Incentive Program is referred to herein as a “Participant.” 

3. Calculation and Payment of Awards. Bonus awards shall be calculated based on the financial results of the Corporation for the 2015
fiscal year. The bonus awards to be paid pursuant to the 2015 Incentive Program (each, an “Award”) shall be on such terms as the Board may prescribe, at the Compensation Committee’s recommendation, based on the performance criteria
set forth on Schedule A hereto. The target(s) for the performance criteria shall be determined by the Board, in its discretion, at the recommendation of the Compensation Committee, as set forth on Schedule A hereto. As soon as
practicable following the 2015 fiscal year, the Compensation Committee shall determine and certify whether and to what extent the performance goal has been met, as well as the amount of the Award that each Participant has earned under the 2015
Incentive Program. A Participant is required to remain employed with the Corporation through the end of the 2015 fiscal year in order to have a legally binding right to the Award. 

Awards pursuant to the 2015 Incentive Program will be paid solely in cash. All amounts due to Participants under the 2015 Incentive Program
shall be paid as soon as administratively feasible after the end of the 2015 fiscal year, and, in any event, no later than March 15, 2016. Notwithstanding the foregoing, Awards may be deferred under the Corporation’s Deferral of
Compensation Plan for Key Employees and Non-Employee Directors (the “Deferral Plan”), to the extent permitted by the terms of the Awards and the Deferral Plan. Except as the Compensation Committee may otherwise determine in its sole and
absolute discretion, termination of a Participant’s employment prior to the end of the 2015 fiscal year will result in the forfeiture of the Award by the Participant, and no payments shall be made with respect thereto. This 2015 Incentive
Program is not a “qualified” plan for federal income tax purposes, and any payments are subject to applicable tax withholding requirements. 

4. Adjustments for Unusual or Nonrecurring Events. The Compensation Committee is hereby authorized to make adjustments in the terms and
conditions of, and the criteria included in, bonus awards under the 2015 Incentive Program in recognition of unusual or nonrecurring events affecting any Participant, the Corporation or the financial statements of the Corporation; in the event of
changes in applicable laws, regulations or accounting principles; or in the event the Compensation Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the 2015 Incentive Program. The 

 
Compensation Committee is also authorized to adjust performance targets or bonus awards downward to avoid unwarranted windfalls. Notwithstanding the foregoing, the Compensation Committee shall
not have the discretion to increase any Award payable to a Participant in excess of that provided by the application of the terms and conditions set forth in Schedule A hereto. 

5. Recoupment Policy. The Corporation may recover from any Participant any incentive compensation awarded or paid pursuant to this 2015
Incentive Program based on (i) achievement of financial results that were subsequently the subject of a restatement due to material noncompliance with any financial reporting requirement under either GAAP or the federal securities laws, other
than as a result of changes to accounting rules and regulations, or (ii) a subsequent finding that the financial information or performance metrics used by the Compensation Committee to determine the amount of the incentive compensation were
materially inaccurate, in each case regardless of individual fault. In addition, the Corporation may recover any incentive compensation awarded or paid pursuant to this 2015 Incentive Program based on a Participant’s conduct which is not in
good faith and which materially disrupts, damages, impairs or interferes with the business of the Corporation. This Recoupment Policy applies to any incentive compensation earned or paid to a Participant pursuant to this 2015 Incentive Program.
Subsequent changes in status, including retirement or termination of employment, do not affect the Corporation’s rights to recover compensation under this policy. The Compensation Committee will administer this policy and exercise its
discretion and business judgment in the fair application of this policy based on the facts and circumstances as it deems relevant in its sole discretion. More specifically, the Compensation Committee shall determine in its discretion any appropriate
amounts to recoup, the officers from whom such amounts shall be recouped (which need not be all officers who received the bonus compensation at issue) and the timing and form of recoupment; provided, that only compensation paid or settled within
three years prior to the Compensation Committee taking action under this Recoupment Policy shall be subject to recoupment; provided further, that any recoupment pursuant to clause (i) or (ii) of the first sentence of this paragraph shall
not exceed the portion of any applicable bonus paid hereunder that is in excess of the amount of performance-based or incentive compensation that would have been paid or granted based on the actual, restated financial statements or actual level of
the applicable financial or performance metrics as determined by the Compensation Committee in its sole discretion. 
 For avoidance of
doubt, the Corporation may set off the amounts of any such required recoupment against any amounts otherwise owed by the Corporation to a Participant as determined by the Compensation Committee in its sole discretion, solely to the extent any such
offset complies with the requirements of Section 409A of the Internal Revenue Code, as amended (the “Code”), and the guidance issued thereunder. 

If any restatement of the Corporation’s financial results indicates that the Corporation should have made higher performance-based
payments than those actually made under the 2015 Incentive Program for the period affected by the restatement, then the Compensation Committee shall have the discretion, but not the obligation, to cause the Corporation to make appropriate
incremental payments to affected Participants then-currently employed by the Corporation. The Compensation Committee will determine, in its sole discretion, the amount, form and timing of any such incremental payments, which shall be no more than
the difference between the amount of performance-based compensation that was paid or awarded and the amount that would have been paid or granted based on the actual, restated financial statements. 

6. No Right to Employment. The grant of an Award under the 2015 Incentive Program shall not be construed as giving a Participant the
right to be retained in the employ of the Corporation. 

  
 2 

 7. No Trust or Fund Created. Neither the 2015 Incentive Program nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Corporation and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Corporation
pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Corporation. 
 8. No Rights
to Awards. No person shall have any claim to be granted any Award and there is no obligation for uniformity of treatment among Participants. The terms and conditions of Awards, if any, need not be the same with respect to each Participant. The
Corporation reserves the right to terminate the 2015 Incentive Program at any time in the Corporation’s sole discretion. 
 9.
Section 409A of the Internal Revenue Code. This 2015 Incentive Program is intended to be exempt from Section 409A of the Code. 

10. Interpretation and Governing Law. This 2015 Incentive Program shall be governed by and interpreted and construed in accordance with
the internal laws of the State of Alabama, without reference to principles of conflicts or choices of laws. In the event the terms of this 2015 Incentive Program are inconsistent with the terms of any written agreement between a Participant and the
Corporation, the terms of such written agreement shall govern the Participant’s participation in the 2015 Incentive Program. 

  
 3 

 Schedule A 

to 2015 Incentive Program 

Performance Metric; Determination of Percentage of Target Bonus Amount Earned 

The performance metric selected by the Board is the Corporation’s net income. The percentage of the target award (“Target Bonus
Amount”) that is earned by a Participant is based on the Corporation’s net income in 2015 (“2015 Net Income”) compared to the Corporation’s budgeted net income for 2015 (“Budgeted Net Income”), as follows: 

 

	 	•	 	Threshold: 50% of the Participant’s Target Bonus Amount is earned if 2015 Net Income is 75% of Budgeted Net Income. No bonus is earned if 2015 Net Income is less than 75% of Budgeted Net Income.

  

	 	•	 	Target: 100% of the Participant’s Target Bonus Amount is earned if 2015 Net Income is 100% of Budgeted Net Income. 

  

	 	•	 	Maximum: 150% of the Participant’s Target Bonus Amount is earned if 2015 Net Income equals or exceeds 125% of Budgeted Net Income. 

 

	 	•	 	Interpolation: The Corporation will interpolate between the threshold, target and maximum goals in the manner set forth in the following table: 

 

			
	 2015 Net Income
	  	 Percentage of Target Bonus Amount

Earned by Participant

	 Less than 75% of Budgeted Net Income
	  	No bonus earned
	 75% of Budgeted Net Income
	  	50% of Target Bonus Amount
	 87.5% of Budgeted Net Income
	  	75% of Target Bonus Amount
	 100% of Budgeted Net Income
	  	100% of Target Bonus Amount
	 112.5% of Budgeted Net Income
	  	125% of Target Bonus Amount
	 125% or more of Budgeted Net Income
	  	150% of Target Bonus Amount

 The Corporation will linearly interpolate between the amounts set forth above. 

  
 A-1

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