Document:

Exhibit 4.1

 

MEMBER CAPITAL SECURITIES, SERIES 2020,
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 2020.
ANY PURPORTED TRANSFER OF MEMBER CAPITAL SECURITIES, SERIES 2020, WITHOUT NATIONAL RURAL’S PRIOR WRITTEN CONSENT WILL BE
VOID AB INITIO.

 

Certificate No.:

 

PRINCIPAL AMOUNT:

 

INTEREST RATE:

 

MATURITY DATE:

 

ISSUE DATE:

 

INTEREST PAYMENT DATES:

 

REGULAR RECORD DATES:

 

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
CORPORATION

 

MEMBER CAPITAL SECURITIES

 

SERIES 2020

 

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 2020 (the “Securities”), will be payable in arrears on the Interest Payment Dates set forth above of each year,
and at maturity, commencing on                 
     , 20XX, at the rate of % per annum.

 

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 2020 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 a 360-day year of twelve 30-day months.

 

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. 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.

 

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,
as more fully provided in the Indenture referred to on the reverse hereof.

 

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 Security 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 with the Company’s member subordinated certificates and the
Company’s other subordinated indebtedness that may only be held by or transferred to the Company’s members,
including 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.

 

All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the Indenture.Exhibit 4.2 

 

MEMBER CAPITAL SECURITIES, SERIES 2020,
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 2020.
ANY PURPORTED TRANSFER OF MEMBER CAPITAL SECURITIES, SERIES 2020, 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 2020

 

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 2020 (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 2020 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.

 

Notwithstanding the
above, if the Company or its designee (which may be an independent financial advisor or any other entity the Company designates
(any of such entities, a “Designee)) determine on or prior to the relevant LIBOR Interest Determination Date that a Benchmark
Transition Event and its related Benchmark Replacement date (as defined below) have occurred with respect to LIBOR (or the then-current
Benchmark (as defined below), as applicable), then the provisions set forth below under “—Effect of a Benchmark Transition
Event,” which are referred to as the benchmark transition provisions, will thereafter apply to all determinations of the
rate of interest payable on the notes. In accordance with the benchmark transition provisions, after a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred, the amount of interest that will be payable for each interest period
will be an annual rate equal to the sum of the Benchmark Replacement and the spread specified in the applicable pricing supplement.
However, if the Company (or its Designee) determine that a Benchmark Transition Event and its related Benchmark Replacement Date
have occurred with respect to the then-current Benchmark, but for any reason the Benchmark Replacement has not been determined
as of the relevant LIBOR interest determination date, the interest rate for the applicable interest period will be equal to the
interest rate for the immediately preceding interest period, as determined by the Company (or its Designee).

 

     

     

    

 

Effect of a Benchmark
Transition Event

 

Benchmark Replacement.
If the Company (or its Designee) determine that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
prior to the Reference Time (as defined below) in respect of any determination of the Benchmark on any date, the Benchmark Replacement
will replace the then-current Benchmark for all purposes relating to the notes in respect of such determination on such date and
all determinations on all subsequent dates.

 

Benchmark Replacement
Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Company (or its Designee) will have
the right to make Benchmark Replacement Conforming Changes (as defined below) from time to time.

 

Decisions and Determinations.
Any determination, decision or election that may be made by the Company (or its Designee) pursuant to this subsection “—Effect
of a Benchmark Transition Event,” including any determination with respect to tenor, rate or adjustment or of the occurrence
or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection,
will be conclusive and binding absent manifest error, will be made in our (or its Designee’s) sole discretion, and, notwithstanding
anything to the contrary in the transaction documents relating to the notes, shall become effective without consent from the holders
of the notes or any other party.

 

For purposes of this subsection
 “—Effect of a Benchmark Transition Event,” the following terms have the following meanings.

 

“Benchmark”
means, initially, LIBOR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
with respect to LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

 

“Benchmark
Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement
Adjustment for such Benchmark; provided that if the Company (or its Designee) cannot determine the Interpolated Benchmark as of
the Benchmark Replacement Date, then “Benchmark Replacement” means the first alternative set forth in the order below
that can be determined by the Company (or its Designee) as of the Benchmark Replacement Date:

 

(1)            the
sum of: (a) Term SOFR and (b) the Benchmark Replacement Adjustment;

 

(2)            the
sum of: (a) Compounded SOFR and (b) the Benchmark Replacement Adjustment;

 

(3)            the
sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the
replacement for the then-current Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 

(4)            the
sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; and

 

(5)            the
sum of: (a) the alternate rate of interest that has been selected by the Company (or its Designee) as the replacement for
the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest
as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate debt securities at such time and (b) the
Benchmark Replacement Adjustment.

 

“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Company
(or its Designee) as of the Benchmark Replacement Date:

 

(1)            the
spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or
zero), that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

 

     

     

    

 

(2)            if
the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and

 

(3)            the
spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company (or its Designee) giving
due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment,
for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated
floating rate debt securities at such time.

 

The Benchmark Replacement
Adjustment shall not include the spread specified in the applicable pricing supplement and such spread shall be applied to the
Benchmark Replacement to determine the interest payable on the notes.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “interest period,” timing and frequency of determining rates and making
payments of interest, rounding of amounts or tenor, and other administrative matters) that the Company (or its Designee) decide
may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice
(or, if the Company (or its Designee) or the trustee decide that adoption of any portion of such market practice is not administratively
feasible or if the Company (or its Designee) determine that no market practice for use of the Benchmark Replacement exists, in
such other manner as the Company (or its Designee) determine is reasonably necessary).

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

(1)            in
the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the
date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

(2)            in
the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or
publication of information referenced therein.

 

For the avoidance of
doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time
in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for
such determination.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(1)            a
public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator
has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or
publication, there is no successor administrator that will continue to provide the Benchmark;

 

(2)            a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central
bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution
authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution
authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease
to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no
successor administrator that will continue to provide the Benchmark; or

 

(3)            a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that
the Benchmark is no longer representative.

 

     

     

    

 

“Compounded
SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate being established by the Company (or its Designee) in accordance with:

 

(1)            the
rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for
determining Compounded SOFR; provided that:

 

(2)            if,
and to the extent that, the Company (or its Designee) determine that Compounded SOFR cannot be determined in accordance with clause
(1) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company
(or its Designee) giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate debt
securities at such time.

 

For the avoidance
of doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the spread specified in this
prospectus supplement and the applicable pricing supplement, respectively.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length
(disregarding business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Federal
Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a
linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than
the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer
than the Corresponding Tenor.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Reference
Time” with respect to any determination of the Benchmark means (1) if the Benchmark is LIBOR, 11:00 a.m., London
time, on the LIBOR interest determination date, and (2) if the Benchmark is not LIBOR, the time determined by the Company
(or its Designee) in accordance with the Benchmark Replacement Conforming Changes.

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“SOFR”
with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York,
as the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

     

     

    

 

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.

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