Document:

4.7 - AMENDMENT NO. 2 TO CREDIT AGREEMENT

		
			

			AMENDMENT NO. 2 TO CREDIT AGREEMENT

	   
	           
			AMENDMENT dated as of October 7, 2005 to the Revolving Credit
			Agreement dated as of March 23, 2005 (the "Credit Agreement")
			among NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (the
			"Borrower"), the BANKS party thereto (the "Banks"),
			JPMORGAN CHASE BANK, N.A., BANK OF AMERICA, N.A. and THE BANK OF
			TOKYO-MITSUBISHI, LTD., NEW YORK BRANCH, as Co-Documentation Agents,
			ABN AMRO BANK N.V., as Syndication Agent, and THE BANK OF NOVA
			SCOTIA, as Administrative Agent (the "Administrative Agent").
	    
	
			

			W I T N E S S E T H :

	     
	            WHEREAS,
the parties hereto desire to amend the Credit Agreement to provide an additional
exception to the lien covenant;
	   
	            NOW,
THEREFORE, the parties hereto agree as follows:
	   
	            SECTION 1.
Defined Terms; References. Unless otherwise specifically defined herein,
each term used herein that is defined in the Credit Agreement has the meaning
assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and
"hereby" and each other similar reference and each reference to
"this Agreement" and each other similar reference contained in the
Credit Agreement shall, from and after the Amendment Effective Date (as defined
in Section 6 below), refer to the Credit Agreement as amended hereby.
	    
	            SECTION 2.
Amendment to the Lien Covenant. Section 5.10 (viii) of the Credit Agreement
is amended by replacing the reference to "110%" with "150%".
	    
	            SECTION 3.
Representations of Borrower. The Borrower represents and warrants that (i)
the representations and warranties of the Borrower set forth in Article 4 of the
Credit Agreement will be true on and as of the Amendment Effective Date and (ii)
no Default will have occurred and be continuing on such date.
	   
	            SECTION 4.
Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.
	   
	            SECTION 5.
Counterparts. This Amendment may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.
	   
	            SECTION 6.
Effectiveness. This Amendment shall become effective on the date (the "Amendment
Effective Date") on which the Administrative Agent

	   
	
			1

		shall have received from each of the Borrower and the Required Banks a
counterpart hereof signed by such party or facsimile or other written
confirmation (in form satisfactory to the Administrative Agent) that such party
has signed a counterpart hereof.
	   
	
			2

		            IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

 

  	NATIONAL RURAL UTILITIES                      

 		     COOPERATIVE FINANCE 

 		     CORPORATION

                                                                                  
        

        By:        /s/ Steven L. Lilly               

        Name:   Steven L. Lilly

        Title:     Senior Vice President
        & CFO

      

3

 
 

  	The Bank of Nova Scotia

                                                                                  
        By:        /s/ Thane A. Rattew            

        Name:   Thane A. Rattew

        Title:     Managing Director
        

      

4

 

  	JPMorgan Chase Bank, N.A.

                                                                                  
        

        By:        /s/ Thomas
        L. Casey                     

        Name:   Thomas L. Casey

        Title:      Vice President
        

      

 

 

  	Bank of America, N.A.

        By:        /s/ Mary Pat Riggins                  

        Name:   Mary Pat Riggins

        Title:     Senior Vice President
        

      

		
  

			
				Bank of Tokyo-Mitsubishi Ltd.,
     New York Branch
                                                                          
        		

				By:        /s/ James A.
				Profesta                         

				Name:   James A. Profesta
Title:     Authorized Signatory
				

	 

		 

		
				ABN AMRO Bank N.V.
                                                                          
        			By:        /s/ Neil R.
        Stein      /s/ Michael DeMarco   

					Name:   Neil R.
        Stein            
					   Michael DeMarco
Title:     Director                       Asst. Vice President
					

		 

 

		
				CREDIT SUISSE, Cayman Islands 

					     Branch
        (formerly known as CREDIT SUISSE

					     FIRST
        BOSTON, acting through its 

					     Cayman Islands
        Branch)
                                                                          
        			By:        /s/ Jay Chall                           

					Name:   Jay Chall
Title:     Director
        			

					 
        

					By:        /s/
					Thomas Cantello                 

					Name:   Thomas Cantello
Title:     
					Vice President 

		 

 

		 

		
				UBS Loan Finance LLC
                                                                          
        			By:        /s/
					Christopher M. Altkin     
Name:  
					Christopher M. Altkin
Title:     Associate Director
             Banking Products
             Services, US 
        			

					 
        

					By:        /s/
					Anthony N. Joseph           

					Name:  Anthony N. Joseph
Title:    Director
            Banking Products
            Services, US 
        			

		 

 

																Lehman
																	Commercial
																	Paper Inc.
                                                                          
        															By:        /s/ Janine M. Shugan                     

																	Name:   Janine M. Shugan
Title:     Authorized Signatory
        															

															 

															 

 

		

		 

		
				MERRILL LYNCH BANK USA
                                                                          
        			By:        /s/
					Louis Alder                      

					Name:   Louis Alder
Title:    
					Director

		 

 

		 

		
				Toronto Dominion (Texas) LLC
                                                                          
        			By:        /s/ Jim
					Bridwell                     

					Name:   Jim Bridwell
Title:    
					Authorized Signatory 

		 

 

														Harris Nesbitt
															Financing, Inc.
                                                                          
        													By:        /s/
															Cahal B. Carmody               

															Name:  
															Cahal B. Carmody
Title:     Vice President
        													

													 

														U.S. Bank, National
															

															     Association 
                                                                            
															By:        /s/ Richard
        Popp                  

															Name:   Richard Popp
Title:     Vice President
        													

													 

		 

		
				
					Mizuho Corporate Bank, Ltd.
                                                                          
        			

					By:        /s/ Raymond
        Ventura        
Name:   Raymond Ventura

					Title:     Deputy General Manager 

		 

			
					Sumitomo Mitsui Banking

						     Corporation
                                                                          
						By:        /s/
						David A. Buck        
Name:   David A.
						Buck
Title:     Senior Vice President

			 

 

			 

			
					
						KeyBank National Association
                                                                          
        				

						By:        /s/ Sherrie I.
        Manson           

						Name:   Sherrie I. Manson
Title:    
						KeyBank National Association

						              Vice President
        				

			 

				 

				
						
							Suntrust Bank
                                                                          
        					

							By:        /s/
							William C. Washburn, Jr. 
Name:  
							William C. Washburn, Jr.
Title:     Vice President4.11 - Series B Bond Purchase Agreement

		
			RUS

	
			
			 

 

			 

			 

			 

			 

			SERIES B BOND PURCHASE AGREEMENT

by and among

FEDERAL FINANCING BANK,

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION,

and

ADMINISTRATOR of the RURAL UTILITIES SERVICE

 

 

made as of

April 28, 2006

			 

			 

			 

			 

			 
 

	
			 
	
			

	
			RUS

	
			    

	
			TABLE OF CONTENTS

	    
	
			 	 	
			Page

	
			      
	
			TITLE/PARTIES	
			1
	 	 	 
	RECITAL PARAGRAPHS	1
	 	 	 
	ARTICLE 1 DEFINITIONS AND RULES OF
			INTERPRETATION	2
	 	 	 
	 	Section 1.1 Definitions	2
	 	 	 
	 	Section 1.2 Rules of Interpretation	5
	 	 	 
	ARTICLE 2 FFB COMMITMENT TO PURCHASE THE
			BOND	6
	 	 	 
	ARTICLE 3 COMMITMENT CONDITIONS	6
	 	 	 
	 	Section 3.1 Commitment Amount Limit	6
	 	 	 
	 	Section 3.2 Borrower Instruments	6
	 	 	 
	 	Section 3.3 RUS Instruments	7
	 	 	 
	ARTICLE 4 OFFER OF THE BOND FOR PURCHASE	7
	 	 	 
	 	Section 4.1 Delivery of Borrower Instruments to RUS	7
	 	 	 
	 	Section 4.2 Delivery of Principal Instruments by RUS
			to FFB	8
	 	 	 
	ARTICLE 5 PURCHASE OF THE BOND BY FFB	8
	 	 	 
	 	Section 5.1 Acceptance or Rejection of Principal
			Instruments	8
	 	 	 
	 	Section 5.2 Purchase	9
	 	 	 
	ARTICLE 6 LOST, STOLEN, DESTROYED, OR
			MUTILATED BOND	9
	 	 	 
	 	Section 6.1 Borrower's Agreement	9
	 	 	 
	 	Section 6.2 RUS's Agreement	9
	 	 	 
	 	Section 6.3 FFB's Agreement	9
	 
	ARTICLE 7 ADVANCES	10
	 	 	 
	 	Section 7.1 Commitment	10
	 	 	 
	 	Section 7.2 Treasury Policies Applicable to Advances	10
	 
	
			BOND PURCHASE AGREEMENT - page i

	

		
			RUS

	 
	 	Section 7.3 Conditions to Making Advances	10
	 	 	 
	 	Section 7.4 Amount and Timing of Advances	13
	 	 	 
	 	Section 7.5 Type of Funds and Means of Advance	14
	 	 
	 	Section 7.6 Interest Rate Applicable to Advances	14
	 	 	 
	 	Section 7.7 Interest Rate Confirmation Notices	15
	 	 	 
	 	Section 7.8 Borrower's Agreement	15
	 	 
	ARTICLE 8 REPRESENTATIONS AND WARRANTIES
			BY THE BORROWER	15
	 	 
	ARTICLE 9 BILLING BY FFB	16
	 	 
	 	Section 9.1 Billing Statements to the Borrower and
			RUS	16
	 	 	 
	 	Section 9.2 Failure to Deliver or Receive Billing
			Statements No Release	16
	 	 	 
	 	Section 9.3 FFB Billing Determinations Conclusive	16
	 	 
	ARTICLE 10 PAYMENTS TO FFB AND RUS	17
	 	 	 
	 	Section 10.1 Manner and Timing of Payment	17
	 	 	 
	 	Section 10.2 Application of Payments	17
	 	 
	ARTICLE 11 BORROWER'S PRIVILEGES TO
			PREPAY OR REFINANCE ADVANCES	17
	 	 
	 	Section 11.1 Automatic Application or Required
			Election	17
	 	 	 
	 	Section 11.2 "Market Value Prepayment/Refinancing
			Privilege"	18
	 	 	 
	 	Section 11.3 "Fixed Premium Prepayment/Refinancing
			Privilege"	19
	 	 	 
	 	Section 11.4 New Notices and Billing Statements
			After Refinancings	22
	 	 
	ARTICLE 12 BOND SERVICING AND RELATED
			DUTIES AND RIGHTS	22
	 	 
	 	Section 12.1 Custody of Bond	22
	 	 	 
	 	Section 12.2 RUS Duties as Bond Servicer and
			Guarantor	22
	 	 	 
	 	Section 12.3 Bond Servicing Fee	23
	 
			 	 
	 
	
			BOND PURCHASE AGREEMENT - page ii

		
			RUS

	 
	 	Section 12.4 Liability and Rights of RUS as
			Guarantor	23
	 	 	 
	 	Section 12.5 Bond Payments Made by RUS	23
	 	 	
			 
	ARTICLE 13 AGREEMENTS AND OTHER RIGHTS
			OF RUS	25
	 	 	 
	 	Section 13.1 Delivery of Replacement Certificates
			Specifying Authorized RUS Officials	25
	 	 	 
	 	Section 13.2 Certain Agreements of RUS and FFB	25
	 	 	 
	 	Section 13.3 Reimbursement	26
	 	 	 
	 	Section 13.4 Effect of RUS's Nonperformance	27
	 	 	 
	 	Section 13.5 Right of RUS to Purchase Advances and
			Bonds	27
	 	 	
			 
	ARTICLE 14 EFFECTIVE DATE, TERM,
			SURVIVAL	27
	 	 	 
	 	Section 14.1 Effective Date	27
	 	 	 
	 	Section 14.2 Term of Commitment to Make Advances	27
	 	 	 
	 	Section 14.3 Survival
			 	27
	 	 	
			 
	ARTICLE 15 MISCELLANEOUS	28
	 	 
	 	Section 15.1 Notices 	28
	 	 	 
	 	Section 15.2 Amendments	30
	 	 	 
	 	Section 15.3 Successors and Assigns	30
	 	 	 
	 	Section 15.4 Sale or Assignment of Bond	30
	 	 	 
	 	Section 15.5 Forbearance Not a Waiver	32
	 	 	 
	 	Section 15.6 Rights Confined to Parties	32
	 	 	 
	 	Section 15.7 Governing Law	32
	 	 	 
	 	Section 15.8 Severability	32
	 	 	 
	 	Section 15.9 Headings	33
	 	 	 
	 	Section 15.10 Counterparts	33
	 	 	 
	SIGNATURES	34
	   	 
	EXHIBIT A FORM OF ADVANCE REQUEST
	 
	
			BOND PURCHASE AGREEMENT - page iii

	

		
			RUS
	EXHIBIT B 	
			FORM OF BOND

	 	 
	EXHIBIT C 	FORM OF
			CERTIFICATE SPECIFYING AUTHORIZED BORROWER OFFICIALS
	 	 
	EXHIBIT D 	FORM OF
			CERTIFICATE SPECIFYING AUTHORIZED RUS OFFICIALS
	 	 
	EXHIBIT E 	FORM OF
			OPINION OF BORROWER'S COUNSEL re: BORROWER'S INSTRUMENTS
	 	 
	EXHIBIT F 	FORM OF
			OPINION OF RUS'S COUNSEL re: RUS
			GUARANTEE
	 	 
	EXHIBIT G 	FORM OF RUS CERTIFICATE 
	 	 
	EXHIBIT H 	FORM OF RUS GUARANTEE
	 
	 
	
			BOND PURCHASE AGREEMENT - page iv

	

		
			RUS

	    
	
			
				
				                                              SERIES B BOND PURCHASE AGREEMENT made as

				
				                                        of April
				28, 2006, by and among the FEDERAL FINANCING

			                                        BANK ("FFB"),
				a body corporate and instrumentality of the

				
				                                        United States of
				America, the NATIONAL RURAL

			                                        UTILITIES COOPERATIVE FINANCE
				CORPORATION

			                                        (the "Borrower"), a cooperative
				association organized and

				
				                                        existing under the laws of the
				District of Columbia, and the

				
				                                        ADMINISTRATOR of the 
				RURAL UTILITIES SERVICE

			                                        ("RUS"), a Rural Development
				agency of the United States

				
				                                        Department of Agriculture.
	     
	

     WHEREAS, RUS is authorized, pursuant to the Guarantee Authority (as
hereinafter defined), to guarantee loans that meet the requirements of the
Guarantee Authority; and     WHEREAS, FFB is authorized, under section 6(a) of the FFB Act (as
hereinafter defined), to make commitments to purchase, and to purchase on terms
and conditions determined by FFB, any obligation that is issued, sold, or
guaranteed by an agency of the United States of America; and

     WHEREAS, FFB is entering into this Series B Bond Purchase Agreement,
as authorized by section 6(a) of the FFB Act, setting out, among other things,
FFB's agreement to purchase, pursuant to the FFB Act, the Bond (as hereinafter
defined) to be issued by the Borrower, when the terms and conditions specified
herein have been satisfied, as hereinafter provided; and

     WHEREAS, RUS has determined that the Borrower meets the
qualifications for being a "lender," as that term is used in the Guarantee
Authority, and for being a "Guaranteed Lender," as that term is used in the
regulations promulgated by RUS to carry out the Guarantee Authority; and 

     WHEREAS, RUS is authorized to enter into this Series B Bond Purchase
Agreement; and

     WHEREAS, the Borrower is authorized to enter into this Series B Bond
Purchase Agreement.

     NOW, THEREFORE, for and in consideration of the mutual agreements
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, FFB, RUS, and the Borrower agree as
follows: 

			
	    
	
			BOND PURCHASE AGREEMENT - page 1

	

	
RUS

	
    
	

ARTICLE 1
	    
	

			DEFINITIONS AND RULES OF INTERPRETATION
	    
	

			     Section 1.1 Definitions. 

     As used in this Agreement, the following terms shall have the
respective meanings specified in this section 1.1, unless the context clearly
requires otherwise.

		     "Advance" shall mean an advance of funds made by FFB
		under the Bond in accordance with the provisions of article 7 of this
		Agreement.

		
		     "Advance Identifier" shall mean, for each Advance,
		the particular sequence of letters and numbers constituting the Bond
		Identifier plus the particular sequence of additional numbers assigned
		by FFB to the respective Advance in the interest rate confirmation
		notice relating to such Advance delivered by FFB in accordance with
		section 7.7 of this Agreement.

		
		     "Advance Request" shall mean a letter from a Borrower
		requesting an Advance under the Bond, in the form of letter attached as
		Exhibit A to this Agreement.

		
		     "Advance Request Approval Notice" shall mean the
		written notice from RUS located at the end of an Advance Request
		advising FFB that such Advance Request has been approved on behalf of
		RUS.

		
		     "Bond" shall mean a future advance bond of the
		Borrower payable to FFB, in the form of bond that is attached as 
		Exhibit B to this Agreement, as such bond may be amended,
		supplemented, and restated from time to time in accordance with its
		terms.

		
		     "Bond Guarantee Agreement" shall mean the Series B
		Bond Guarantee Agreement dated as of even date herewith, made between
		RUS and the Borrower, as such agreement may be amended, supplemented,
		and restated from time to time in accordance with its terms.

		
		     "Bond Identifier" shall mean the particular sequence
		of letters and numbers assigned by FFB to the Bond in the Principal
		Instruments acceptance notice relating to the Bond delivered by FFB in
		accordance with section 5.1 of this Agreement. 

		
		     "Borrower Instruments" shall have the meaning
		specified in section 3.2.1 of this Agreement.

	

			
	    
	
			BOND PURCHASE AGREEMENT - page 2

	

	
			RUS

	 
	
			
			
		     "Business Day" shall mean any day on which FFB and
		the Federal Reserve Bank of New York are both open for business.

	

		     "Certificate Specifying Authorized Borrower Officials"
		shall mean a certificate of the Borrower specifying the names and titles
		of those officials of the Borrower who are authorized to execute and
		deliver from time to time Advance Requests on behalf of the Borrower,
		and containing the original signature of each of those officials,
		substantially in the form of the Certificate Specifying Authorized
		Borrower Officials attached as Exhibit C to this Agreement. 

		
		     "Certificate Specifying Authorized RUS Officials"
		shall mean a certificate specifying the names and titles of those
		officials of RUS who are authorized to execute and deliver Advance
		Request Approval Notices from time to time on behalf of RUS and setting
		out the original signature of each of those authorized officials, and
		specifying the name and title of those officials of RUS who are
		authorized to confirm telephonically the authenticity of the Advance
		Request Approval Notices from time to time on behalf of RUS and setting
		out the telephone number of each of those authorized officials, in the
		form of the Certificate Specifying Authorized RUS Officials attached as
		Exhibit D to this Agreement. 

		
		     "FFB Act" shall mean the Federal Financing Bank Act
		of 1973 (Pub. L. No. 93-224, 87 Stat. 937, codified at 12 U.S.C.
		section 2281
		et seq.), as amended.

		
		     "FFB Financing Options Fee" shall mean the fee,
		expressed in terms of a basis point increment in the basic interest rate
		established for an Advance, payable by the Borrower to the Holder if the
		Borrower elects to have a Fixed Premium Prepayment/Refinancing Privilege
		apply to such Advance, as described in section 11.3 of this Agreement.

		
		     "First Call Date" shall have the meaning specified in
		section 11.3.2(a) of this Agreement.

		
		     "Fixed Premium Prepayment/Refinancing Privilege"
		shall have the meaning specified in section 11.3.1 of this Agreement.

	

		     "Governmental Authority" shall mean any federal,
		state, county, municipal, or regional authority, or any other entity of
		a similar nature, exercising any executive, legislative, judicial,
		regulatory, or administrative function of government.  

	

			
	    
	
			BOND PURCHASE AGREEMENT - page 3

	

	
			RUS

	   
	
				
			
		     "Guarantee Authority" shall mean section 313A of the
		Rural Electrification Act of 1936, as amended (codified at 7 U.S.C.
		section 940c-1).

		

		     "Holder" shall mean FFB, for so long as it shall be
		the holder of the Bond, and any successor or assignee of FFB, for so
		long as such successor or assignee shall be the holder of the Bond.

	

			
				
					     "Loan Commitment Amount" shall mean $1,500,000,000.00.

				

			

		
		     "Market Value Premium (or Discount)" shall have the
		meaning specified in section 11.2 of this Agreement.

		
		     "Market Value Prepayment/Refinancing Privilege" shall
		have the meaning specified in section 11.2 of this Agreement.

		
		     "Maturity Date" shall have the meaning specified in
		section 7.3.1(a)(5) of this Agreement. 

		
		     "No-Call Period" shall have the meaning specified in
		section 11.3.2 of this Agreement.

		
		     "Opinion of Borrower's Counsel re: Borrower Instruments"
		shall mean an opinion of counsel from the General Counsel of the
		Borrower, substantially in the form of opinion that is attached as 
		Exhibit E to this Agreement.

		
		     "Opinion of RUS's Counsel re: RUS Guarantee" shall
		mean an opinion of counsel from the Acting General Counsel of the
		Department of Agriculture to the Administrator of RUS, substantially in
		the form of opinion that is attached as Exhibit F to this
		Agreement.

		
		     "Payment Date" shall mean January 15, April 15,
		July 15, and October 15 of each year.

		
		     "Person" shall mean any individual, corporation,
		partnership, joint venture, association, joint-stock company, trust,
		trust company, unincorporated organization or Governmental Authority.

		
		
		     "Pledge Agreement" shall mean
		the Pledge Agreement dated as of even date herewith, made among the
		Borrower, RUS, and U.S.  Bank Trust National Association, a
		national association, as such agreement may be amended, supplemented,
		and restated from time to time in accordance with its terms.

		
		     "Principal Instruments" shall have the meaning
		specified in section 4.2 of this Agreement.

	

			
			
	     
	
			BOND PURCHASE AGREEMENT - page 4

	

	
			RUS

	    
	
				
		
		     "Requested Advance Amount" shall have the meaning
		specified in section 7.3.1(a)(2) of this Agreement.

		
		     "Requested Advance Date" shall have the meaning
		specified in section 7.3.1(a)(3) of this Agreement. 

		
		     "RUS Certificate" shall mean a certificate relating
		to the RUS Guarantee and other matters, in the form of certificate that
		is attached as Exhibit G to this Agreement.

		
		     "RUS Guarantee" shall mean a guarantee of the Bond
		issued by RUS, in the form of guarantee that is attached as Exhibit H
		to this Agreement.

		
		     "RUS Instruments" shall have the meaning specified in
		section 3.3.1 of this Agreement.

		
		     "this Agreement" shall mean this Series B Bond
		Purchase Agreement between FFB, RUS, and the Borrower.

	

		     "Uncontrollable Cause" shall mean, for FFB, an
		unforeseeable cause beyond the control and without the fault of FFB,
		being:  act of God, fire, flood, severe weather, epidemic,
		quarantine restriction, explosion, sabotage, act of war, act of
		terrorism, riot, civil commotion, lapse of the statutory authority of
		the United States Department of the Treasury to raise cash through the
		issuance of Treasury debt instruments, disruption or failure of the
		Treasury Financial Communications System, closure of the Federal
		Government, or an unforeseen or unscheduled closure or evacuation of the
		FFB offices; and shall mean, for RUS, an unforeseeable cause beyond the
		control and without the fault of RUS, being:  act of God, fire,
		flood, severe weather, epidemic, quarantine restriction, explosion,
		sabotage, act of war, act of terrorism, riot, civil commotion, closure
		of the Federal Government, or an unforeseen or unscheduled closure or
		evacuation of the RUS offices.

	

Section 1.2 Rules of Interpretation.  

     Unless the context shall otherwise indicate, the terms defined in
section 1.1 of this Agreement shall include the plural as well as the singular
and the singular as well as the plural.  The words "herein," "hereof," and
"hereto," and words of similar import, refer to this Agreement as a whole.

			
			
	      
	
			BOND PURCHASE AGREEMENT - page 5

	

	
			RUS

	    
	

ARTICLE 2

FFB COMMITMENT TO PURCHASE THE BOND

     Subject to the terms and conditions of this Agreement, FFB agrees to
purchase the Bond that is offered by the Borrower to FFB for purchase under this
Agreement.

			
ARTICLE 3

COMMITMENT CONDITIONS

     FFB
shall be under no obligation to purchase the Bond under this Agreement unless
and until each of the conditions specified in this article 3 has been satisfied.

     Section 3.1 Commitment Amount Limit.

     The maximum principal amount of the Bond that is offered for
purchase shall not exceed the Loan Commitment Amount.

     Section 3.2 Borrower Instruments.

		     3.2.1 Borrower Instruments. FFB shall have received
		from the Borrower the following instruments (such instruments being,
		collectively, the "Borrower Instruments"):

		
				      (a) an original counterpart of this Agreement, duly
				executed by the Borrower; and

				
				      (b) the original Bond, duly executed by the
				Borrower.

			
		
		
		     3.2.2 Opinion of Borrower's Counsel re: Borrower
		Instruments. FFB shall have received from the Borrower an Opinion of
		Borrower's Counsel re: Borrower Instruments.

		
		     3.2.3 Certificate Specifying Authorized Borrower
		Officials. FFB shall have received from the Borrower a completed and
		signed Certificate Specifying Authorized Borrower Officials.

	

     Section 3.3 RUS Instruments.

		     3.3.1 RUS Instruments. FFB shall have received from
		RUS the following instruments (such instruments being, collectively, the
		"RUS Instruments"):

		
	

			
			
	    
	
			BOND PURCHASE AGREEMENT - page 6

	

	
			RUS

	    
	
			
			
				      (a) an original counterpart of this Agreement, duly
				executed by RUS;

				
				      (b) the original RUS Guarantee relating to the
				Bond, duly executed by RUS; and

				
				      (c) an original RUS Certificate relating to the RUS
				Guarantee and other matters, duly executed by RUS.

			
		
		
		     3.3.2 Opinion of RUS's Counsel re: RUS Guarantee. FFB
		shall have received a copy of the Opinion of RUS's Counsel re: RUS
		Guarantee.

		
		     3.3.3 Certificate Specifying Authorized RUS Officials.
		FFB shall have received from RUS a completed and signed Certificate
		Specifying Authorized RUS Officials.

		
	

ARTICLE 4

OFFER OF THE BOND FOR PURCHASE

     The Bond that is to be offered to FFB for purchase under this
Agreement shall be offered in accordance with the procedures described in this
article 4.

     Section 4.1 Delivery of Borrower Instruments to RUS.  

     The Borrower shall deliver to RUS, for redelivery to FFB, the
following:

		      (a) all of the Borrower Instruments, each duly executed by
		the Borrower;

		
		      (b) an Opinion of Borrower's Counsel re: Borrower
		Instruments; and

		
		      (c) a completed and signed Certificate Specifying
		Authorized Borrower Officials.

	

     Section 4.2 Delivery of Principal Instruments by RUS to FFB. 

     RUS shall deliver to FFB all of the following instruments
(collectively being the "Principal Instruments":

		      (a) all of the instruments described in section 4.1 of this
		Agreement;

		
		      (b) all of the RUS Instruments, each duly executed by RUS;

		
	

			
	    
	
			BOND PURCHASE AGREEMENT - page 7

	

	
			RUS

	    
	
			
			
		      (c) a copy of the Opinion of RUS's Counsel re: RUS
		Guarantee; and

		
		      (d) a completed and signed Certificate Specifying
		Authorized RUS Officials. 

		
	

ARTICLE 5

PURCHASE OF THE BOND BY FFB

     Section 5.1 Acceptance or Rejection of Principal Instruments. 

     Within 5 Business Days after delivery to FFB of the Principal
Instruments relating to the Bond that is offered for purchase under this
Agreement, FFB shall deliver by facsimile transmission (fax) to RUS one of the
following:

		      (a) an acceptance notice, which notice shall:

		
				      (1) state that the Principal Instruments meet the
				terms and conditions detailed in article 3 of this Agreement, or
				are otherwise acceptable to FFB; and 

				
				      (2) assign a Bond Identifier to the Bond for use by
				the Borrower and RUS in all communications to FFB making
				reference to the Bond; or

			
		
		
		      (b) a rejection notice, which notice shall state that one
		or more of the Principal Instruments does not meet the terms and
		conditions of this Agreement and specify how such instrument or
		instruments does not meet the terms and conditions of this Agreement.

	

     Section 5.2 Purchase.  

FFB shall not be deemed to have accepted the Bond offered for purchase under
this Agreement until such time as FFB shall have delivered an acceptance notice
accepting the Principal Instruments relating to the Bond; provided, 
however, that in the event that FFB shall make an Advance under the Bond,
then FFB shall be deemed to have accepted the Bond offered for purchase.

			
			 
	    
	
			BOND PURCHASE AGREEMENT - page 8

	

	
			RUS

	    
	

ARTICLE 6

LOST, STOLEN, DESTROYED, OR MUTILATED BOND

     Section 6.1 Borrower's Agreement.

In the event that the Bond purchased under this Agreement shall become lost,
stolen, destroyed, or mutilated, the Borrower shall, upon the written request of
FFB, execute and deliver, in replacement thereof, a new Bond of like tenor,
dated and bearing interest from the date to which interest has been paid on such
lost, stolen, destroyed, or mutilated Bond or, if no interest has been paid
thereon, dated the same date as such lost, stolen, destroyed, or mutilated Bond.
Upon delivery of such replacement Bond, the Borrower shall be released and
discharged from any further liability on account of the lost, stolen, or
destroyed Bond. If the Bond being replaced has been mutilated, such mutilated
Bond shall be surrendered to the Borrower for cancellation.

     Section 6.2 RUS's Agreement.

     In the event that the Borrower delivers a replacement Bond for a
lost, stolen, destroyed, or mutilated Bond, as provided in section 6.1 of this
Agreement, RUS shall execute and deliver an RUS Guarantee of the replacement
Bond in replacement of the RUS Guarantee of the lost, stolen, destroyed, or
mutilated Bond. 

     Section 6.3 FFB's Agreement.

     FFB agrees that, upon delivery by RUS of a replacement RUS Guarantee
as provided in section 6.2 of this Agreement, RUS shall be released and
discharged from any further liability on account of the RUS Guarantee of the
lost, stolen, destroyed, or mutilated Bond.

ARTICLE 7

ADVANCES

     Section 7.1 Commitment.  

     Subject to the terms and conditions of this Agreement, FFB agrees to
make Advances under the Bond for the account of the Borrower.

			
			
	    
	
			BOND PURCHASE AGREEMENT - page 9

	

	
			RUS

	   
	
			

			     Section 7.2 Treasury Policies Applicable to Advances. 

     Each of the Borrower and RUS understands and consents to the
following Treasury financial management policies generally applicable to all
advances of funds:

		      (a) each Advance will be requested by the Borrower, and
		each Advance Request will be approved by RUS, only at such time and in
		such amount as shall be necessary to meet the immediate payment or
		disbursing need of the Borrower;

		
		      (b) Advances for investment purposes, other than to make
		loans permitted by the Guarantee Authority, will not be requested by the
		Borrower or approved by RUS; and

		
		      (c) all interest earned on any lawful and permitted
		investment of Advances, other than loans permitted by the Guarantee
		Authority to be made, in excess of the interest accrued on such
		Advances, the fee payable under paragraph 9 of the Bond accrued on such
		Advances, and the guarantee fee payable on such Advances under article
		IV of the Bond Guarantee Agreement, will be remitted to FFB.

	

     Section 7.3 Conditions to Making Advances.

     FFB shall be under no obligation to make any Advance under the Bond
unless and until each of the conditions specified in this section 7.3 is
satisfied. 

		     7.3.1 Advance Requests. For each Advance, the
		Borrower shall have delivered to RUS, for review and approval before
		being forwarded to FFB, an Advance Request, which Advance Request:

		
				      (a) shall specify, among other things: 

			
		
	

						      (1) the particular "Bond Identifier" that
						FFB assigned to this Bond (as provided in section 5.1 of
						this Agreement;

						
						      (2) the particular amount of funds that the
						Borrower requests to be advanced (such amount being the
						"Requested Advance Amount" for the respective
						Advance);

						
						      (3) the particular calendar date that the
						Borrower requests to be the date on which the respective
						Advance is to be made (such date being the "Requested
						Advance Date" for such Advance), which date: 

						
								      (A) must be a Business Day; and

							
						
					
				
			
		
	

			 
	    
	
			BOND PURCHASE AGREEMENT - page 10

	

	
			RUS

	    
	
			
			(B) shall be a
			date that meets the advance notice requirements prescribed in
			section 7.3.2(b) of this Agreement;

			
			(4) the
			particular bank account to which the Borrower requests that the
			respective Advance be made; and

			
			           
			(5) the particular calendar date that the Borrower selects to be the
			date on which the respective Advance is to mature (such date being
			the "Maturity Date" for such Advance), which date must meet
			all of the following criteria: 

			
			           
			(A) the Maturity Date for the respective Advance must be a "Payment
			Date" (as that term is defined in paragraph 7 of the Bond); 

			
			           
			(B) the Maturity Date for the respective Advance may not be a date
			that will occur after the twentieth anniversary of the Requested
			Advance Date specified in the respective Advance Request;  

			
			           
			(C) the Maturity Date for the respective Advance may not be a date
			that will occur after the particular date specified on page 1 of the
			Bond as being the "Final Maturity Date"; and 

			
			           
			(D) the period of time between the Requested Advance Date for the
			respective Advance and the Maturity Date for such Advance may not be
			less than the period from the Requested Advance Date (if such date
			is a Payment Date) or the Payment Date immediately following the
			Requested Advance Date (if the Requested Advance Date is not a
			Payment Date) to the next Payment Date; and 

			
			            (6)
			with respect to each Advance for which the Borrower selects a
			Maturity Date that will occur on or after the fifth anniversary of
			the Requested Advance Date specified in the respective Advance
			Request, the particular prepayment/ refinancing privilege that the
			Borrower elects to apply to the respective Advance (i.e. either the
			Market Value Prepayment/Refinancing Privilege described in section
			11.2 of this Agreement or the Fixed Premium Prepayment/Refinancing
			Privilege described in section 11.3 of this Agreement); and

	   
	
			BOND PURCHASE AGREEMENT - page 11

	

	
			RUS

	    
	
			
				      (b) shall have been duly executed by an official of
				the Borrower whose name and signature appear on the Certificate
				Specifying Authorized Borrower Officials delivered by the
				Borrower to FFB pursuant to section 3.2.3 of this Agreement; and

				
				      (c) shall have been received by FFB not later than
				a Business Day that meets the advance notice requirements
				prescribed in section 7.3.2(b) of this Agreement.

			
		
	

		     7.3.2 Advance Request Approval Notice. For each
		Advance, RUS shall have delivered to FFB the Borrower's executed Advance
		Request, together with RUS's executed Advance Request Approval Notice,
		which Advance Request Approval Notice:

		
				      (a) shall have been duly executed on behalf of RUS
				by an official of RUS whose name and signature appear on the
				Certificate Specifying Authorized RUS Officials delivered to FFB
				pursuant to section 3.3.3 of this Agreement; and

				
				      (b) shall have been received by FFB consistent with
				the following advance notice requirements:

				
						      (1) if the Requested Advance Amount
						specified in the respective Advance Request is less than
						$500,000,000, the Advance Request and the related
						Advance Request Approval Notice must be received by FFB
						on or before the third Business Day before the Requested
						Advance Date specified in such Advance Request; and

						
						      (2) if the Requested Advance Amount
						specified in the respective Advance Request is equal to
						or greater than $500,000,000, the Advance Request and
						the Related Advance Request Approval Notice must be
						received by FFB on or before the fifth Business Day
						before the Requested Advance Date specified in such
						Advance Request. 

					
				
			
		
		
		     7.3.3 Telephonic Confirmation of Authenticity of Advance
		Request Approval Notices. For each Advance, FFB shall have obtained
		telephonic confirmation of the authenticity of the related Advance
		Request Approval Notice from an official of RUS (a) whose name, title,
		and telephone number appear on the Certificate Specifying Authorized RUS
		Officials that has been delivered by RUS to FFB pursuant to section
		3.3.3 of this Agreement; and (b) who is not the same 

	

	     
	
			BOND PURCHASE AGREEMENT - page 12

	

	
			RUS

	   
	
			official of RUS who
		executed the Advance Request Approval Notice on behalf of RUS.

		
		     7.3.4 Bond Maximum Principal Amount Limit.  At
		the time of making any Advance under the Bond, the amount of such
		Advance, when added to the aggregate amount of all Advances previously
		made under the Bond, shall not exceed the maximum principal amount of
		the Bond.

		
		     7.3.5 Conditions Specified in Other Agreement. 
		Each of the conditions specified in the Bond Guarantee Agreement as
		being conditions to making Advances under the Bond shall have been
		satisfied or waived in writing.

	

     Section 7.4 Amount and Timing of Advances. 

     FFB shall make each Advance in the Requested Advance Amount
specified in the respective Advance Request and on the Requested Advance Date
specified in the respective Advance Request, subject to satisfaction of the
conditions specified in section 7.3 of this Agreement and subject to the
following additional limitations:

		      (a) in the event that the Requested Advance Date specified
		in the respective Advance Request is not a Business Day, FFB shall make
		the respective Advance on the first day thereafter that is a Business
		Day; 

	

		      (b) in the event that the respective Advance Request and
		the related Advance Request Approval Notice are not received by FFB
		consistent with the applicable advance notice requirement prescribed in
		section 7.3.2(b) of this Agreement, FFB shall make the respective
		Advance as soon as practicable thereafter, but in any event not later
		than the expiration of the applicable advance notice period, unless the
		Borrower delivers to FFB and RUS a written cancellation of such Advance
		Request or a replacement Advance Request specifying a Requested Advance
		Date later than the expiration of the applicable advance notice period;
		and

		
		     (c) in the event that the respective Advance Request and the
		related Advance Request Approval Notice are received by FFB, and the
		Requested Advance Amount specified in such Advance Request, when added
		to the aggregate principal amount of: 

		
				      (1) all Advances made to the Borrower under the
				Bond, and 

				
				      (2) all advances of funds made by FFB
				to the Borrower under any other future advance bond issued by 

			
		
	

	    
	
			BOND PURCHASE AGREEMENT - page 13

	

	
			RUS

	    
	
			the
				Borrower to FFB and guaranteed by RUS under the Guarantee
				Authority, 

			
		
		during the immediately preceding 10 Business Days, shall cause the
		resulting sum to exceed $2,000,000,000, then FFB shall make the Advance
		as soon as practicable thereafter, but in any event not later than the
		tenth Business Day after the date of receipt, unless the Borrower
		delivers to FFB and RUS a written cancellation of such Advance Request
		or a replacement Advance Request specifying a Requested Advance Date
		later than the tenth Business Day after the date of receipt; and

		
		      (d) in the event that an Uncontrollable Cause prevents FFB
		from making the respective Advance on the Requested Advance Date
		specified in the respective Advance Request, FFB shall make such Advance
		as soon as such Uncontrollable Cause ceases to prevent FFB from making
		such Advance, unless the Borrower delivers to FFB and RUS a written
		cancellation of such Advance Request or a replacement Advance Request
		specifying a Requested Advance Date later than when such Uncontrollable
		Cause ceases to prevent FFB from making such Advance.   

	

     Section 7.5 Type of Funds and Means of Advance.  

     Each Advance shall be made in immediately available funds by
electronic funds transfer to such bank account(s) as shall have been specified
in the respective Advance Request.

     Section 7.6 Interest Rate Applicable to Advances.

		     7.6.1 Initial Rate Determinations. The rate of
		interest applicable to each Advance made under the Bond shall be
		established as provided in paragraph 6 of the Bond, subject to
		section 7.6.2 of this Agreement.

		
		     7.6.2 Rate Re-determinations. In the event the
		Borrower elects to extend the maturity of all or any portion of the
		outstanding principal amount of any Advance, as provided in paragraph 15
		of the Bond, or to refinance all or any portion of the outstanding
		principal amount of any Advance, as provided in paragraph 17 of the
		Bond, then the rate of interest applicable to the outstanding principal
		amount of such Advance shall be re-determined by FFB in accordance with
		the terms of paragraph 15 or 17 of the Bond, as the case may be.

	

     Section 7.7 Interest Rate Confirmation Notices.

		     7.7.1 Initial Rates. After making each Advance, FFB
		shall deliver, by facsimile transmission, to the Borrower

	

	    
	
			BOND PURCHASE AGREEMENT - page 14

	

	
			RUS

	    
	
			and RUS
		written confirmation of the making of the respective Advance, which
		confirmation shall: 

		
				      (a) state the date on which such Advance was made;
				

				
				      (b) state the interest rate applicable to such
				Advance; and 

				
				      (c) assign an Advance Identifier to such Advance
				for use by the Borrower and RUS in all communications to FFB
				making reference to such Advance.

			
		
		
		     7.7.2 Re-determined Rates. In the event that the rate
		of interest applicable to the outstanding principal amount of any
		Advance is re-determined as provided in section 7.6.2. of this
		Agreement, FFB shall deliver, by facsimile transmission, to the Borrower
		and RUS written confirmation of the re-determination of such interest
		rate, which confirmation shall state the date on which the applicable
		interest rate was re-determined for such Advance and the re-determined
		interest rate.

	

     Section 7.8 Borrower's Agreement.

     The Borrower hereby agrees that each Advance made by FFB in
accordance with an RUS-approved Advance Request delivered to FFB shall reduce,
by the amount of the respective Advance made, FFB's remaining commitment in
section 7.1 of this Agreement to make Advances under the Bond.

ARTICLE 8

REPRESENTATIONS AND WARRANTIES BY THE BORROWER

     The Borrower makes to FFB each of the representations and warranties
made by the Borrower to RUS in paragraphs (a), (b), (c), (d), (e), (f), (g), and
(j) of section 8.2 of the Bond Guarantee Agreement, and each of those
representations and warranties of the Borrower are incorporated herein by
reference as if set out in full herein.

 
	    
	
			BOND PURCHASE AGREEMENT - page 15

	

	
			RUS

	    
	

ARTICLE 9

BILLING BY FFB

     Section 9.1 Billing Statements to the Borrower and RUS.

     After making each Advance, FFB shall prepare a billing statement
detailing the amounts owed on the respective Advance and when such amounts are
due. FFB shall deliver, by facsimile transmission, each such billing statement
to the Borrower and RUS.

     Section 9.2 Failure to Deliver or Receive Billing Statements No
Release.  

     Failure on the part of FFB to deliver any billing statement or
failure on the part of the Borrower or RUS to receive any billing statement
shall not, however, relieve the Borrower of any of its payment obligations under
the Bond or this Agreement or relieve RUS from any of its payment obligations
under the RUS Guarantee or this Agreement. 

     Section 9.3 FFB Billing Determinations Conclusive.

		     9.3.1 Acknowledgment and Consent.  The Borrower
		and RUS each acknowledge that FFB has described to it the rounding
		methodology employed by FFB in calculating the amount of accrued
		interest owed at any time on the Bond, and the Borrower and RUS each
		consent to this methodology.

		
		     9.3.2 Agreement.  The Borrower and RUS each
		agree that any and all determinations made by FFB shall be conclusive
		and binding upon the Borrower and RUS with respect to the amount of
		accrued interest owed on the Bond determined using this rounding
		methodology.

		
	

ARTICLE 10

PAYMENTS TO FFB AND RUS

     Section 10.1 Manner and Timing of Payment.

     Each amount that becomes due and owing on the Bond purchased under
this Agreement shall be paid when and as due, as provided in the Bond.

			
			
	    
	
			BOND PURCHASE AGREEMENT - page 16

	

	
			RUS

	    
	
			

			     Section 10.2 Application of Payments.
		     10.2.1 Priority of Payments. Each payment made on the
		Bond shall be applied, first, to the payment of Late Charges (if any)
		payable under paragraphs 11 and 18 of the Bond, then to the payment of
		premiums (if any) payable under paragraphs 16 and 17 of the Bond, then
		to the payment of unpaid accrued interest, then on account of
		outstanding principal, and then to the payment of the fee payable under
		paragraph 9 of the Bond.

		
		     10.2.2 Agreement between FFB and RUS. RUS agrees to transfer to FFB payments received by RUS under the Bond in such
		amounts as may be necessary to conform with the priority of payment
		requirements contained in section 10.2.1 of this Agreement.

		
	

ARTICLE 11

BORROWER'S PRIVILEGES TO PREPAY OR REFINANCE ADVANCES

     Section 11.1 Automatic Application or Required Election.

     The prepayment/refinancing privilege described in section 11.2
of this Agreement shall apply automatically to each Advance that has a Maturity
Date that will occur before the fifth anniversary of the Requested
Advance Date specified in the respective Advance Request. With respect to each
Advance for which the Borrower has selected a Maturity Date that will occur 
on or after the fifth anniversary of the Requested Advance Date specified in
the respective Advance Request, the Borrower must elect, at the time of
requesting the respective Advance, the particular prepayment/refinancing
privilege that is to apply to such Advance from between the options described in
sections 11.2 and 11.3 of this Agreement.

     Section 11.2 "Market Value Prepayment/Refinancing Privilege".

     If the prepayment/refinancing privilege described in this section 11.2
applies to an Advance (such privilege being the "Market Value
Prepayment/Refinancing Privilege"), the Borrower shall have the privilege to
prepay such Advance (as provided in paragraph 16 of the Bond) or to refinance
such Advance (as provided in paragraph 17 of the Bond) at a prepayment or
refinancing price that will include, in either case, a premium (or discount
credit) equal to the difference between:

		      (a) the price for such Advance
		that would, if such Advance (including all unpaid interest accrued
		thereon

	

			
	    
	
			BOND PURCHASE AGREEMENT - page 17

	

	
			RUS

	    
	
			through the date of
		prepayment or refinancing, as the case may be) were purchased by a third
		party and held to the "Maturity Date" applicable to the Advance, produce
		a yield to the third-party purchaser for the period from the date of
		purchase to such Maturity Date substantially equal to the interest rate
		that would be set on a loan from the Secretary of the Treasury to FFB to
		purchase an obligation having a payment schedule identical to the
		payment schedule of such Advance for the period from the date of
		prepayment or refinancing, as the case may be, to such Maturity Date;
		and

      (b) the sum of: 

				      (1) the outstanding principal amount of such
				Advance on the date of prepayment or refinancing, as the case
				may be; and

				
				      (2) all unpaid interest accrued on such Advance
				through the date of prepayment or refinancing, as the case may
				be,

			
		
	

(the difference between the price described in paragraph (a) of this section
11.2 and the sum of the amounts described in paragraph (b) of this section 11.2
being the "Market Value Premium (or Discount)"; if the price described in
paragraph (a) is greater than the sum of the amounts described in paragraph (b),
that difference is the premium; if the price described in paragraph (a) is less
than the sum of the amounts described in paragraph (b), that difference is the
discount credit). The price described in paragraph (a) of this section 11.2
shall be calculated by the United States Department of the Treasury as of the
close of business on the second Business Day before the date of prepayment or
refinancing, as the case may be, using standard calculation methods of the
United States Department of the Treasury. FFB shall provide the Borrower and RUS
with written notice of the price described in paragraph (a) of this section 11.2
promptly upon completing the calculation.

     Section 11.3 "Fixed Premium Prepayment/Refinancing Privilege".

		     11.3.1 Required Election and Selection. If the
		prepayment/refinancing privilege described in this section 11.3
		applies to such Advance (such privilege being the "Fixed Premium
		Prepayment/Refinancing Privilege"), the Borrower shall have the
		privilege to prepay such Advance (as provided in paragraph 16 of the
		Bond) or to refinance such Advance (as provided in paragraph 17 of the
		Bond) at a prepayment or refinancing price that will include, in either
		case, a fixed premium determined by FFB at the time of such prepayment
		or refinancing, based on both the no-call period

	

	    
	
			BOND PURCHASE AGREEMENT - page 18

	

	
			RUS

	    
	
			election described in
		section 11.3.2 of this Agreement and the premium selection described in
		section 11.3.3 of this Agreement made by the Borrower at the time of
		requesting such Advance.

		
		     11.3.2 "No-Call Period Election". First, the Borrower
		must elect whether or not the Fixed Premium Prepayment/ Refinancing
		Privilege that is to apply to the respective Advance shall include a
		5-year period during which such Advance shall not be eligible for
		any prepayment or refinancing (such time period being a "No-Call
		Period"). The options are: 

		
				      (a) "yes" -- the Borrower elects to have the
				Fixed Premium Prepayment/Refinancing Privilege include a 5-year
				No-Call Period, i.e., the Borrower shall have the
				privilege to prepay the respective Advance (as provided in
				paragraph 16 of the Bond) or to refinance such Advance (as
				provided in paragraph 17 of the Bond) on or after (but not
				before):

				
						      (1) the fifth anniversary of the Requested
						Advance Date for such Advance (if such fifth anniversary
						date is a Payment Date); or

						
						      (2) the first Payment Date to occur after
						the fifth anniversary of the Requested Advance Date for
						such Advance (if such fifth anniversary date is not a
						Payment Date),

					
				
				(in either case, such date being the "First Call Date"
				for such Advance); or

			
		
	

				      (b) "no" -- the Borrower elects to have the
				Fixed Premium Prepayment/Refinancing Privilege not
				include a 5-year No-Call Period, i.e., the Borrower shall
				have the privilege to prepay the respective Advance (as provided
				in paragraph 16 of the Bond) or to refinance such Advance (as
				provided in paragraph 17 of the Bond) on any Business Day.

			
		
		
		     11.3.3 "Premium Selection". Second, the Borrower must
		select the particular fixed premium that will be required in connection
		with any prepayment or refinancing of the respective Advance. The
		options are:

		
				      (a) "10 percent premium declining over 10 years"
				-- the price for any prepayment or refinancing of the respective
				Advance shall include a premium equal to 10 percent of the
				amount of principal being prepaid or refinanced, as the case may
				be, multiplied by a fraction: 

			
		
	

			
	    
	
			BOND PURCHASE AGREEMENT - page 19

	

	
			RUS

	   
	
			
			
						     
						
						     
						
						        (1) the numerator of which is the number of

						     
						
						     
						
						     
						
						   Payment Dates that occur between: 

						
								      (A) in the case of a prepayment,
								the date of prepayment (if such date is a
								Payment Date) or the Payment Date immediately
								preceding the date of prepayment (if the date of
								prepayment is not a Payment Date), and, in the
								case of a refinancing, the date of refinancing,
								which date, in either case, shall be included in
								computing the number of Payment Dates; and

								
								      (B) the tenth anniversary of the
								applicable First Call Date (if the Borrower
								elected to have the prepayment/refinancing
								privilege include a 5-year No-Call Period) or
								the tenth anniversary of the Requested Advance
								Date (if the Borrower elected to have the
								prepayment/refinancing privilege not include a
								5-year No-Call Period), which date, in either
								case, shall be excluded in computing the number
								of Payment Dates; and  

(2) the denominator of which is 40,

							
						
					
				
				and no premium on or after the tenth anniversary of the
				applicable First Call Date (if the Borrower elected to have the
				prepayment/refinancing privilege include a 5-year No-Call
				Period) or the tenth anniversary of the Requested Advance Date
				(if the Borrower elected to have the prepayment/refinancing
				privilege not include a 5-year No-Call Period); 

			
		
	

				      (b) "5 percent premium declining over 5 years"
				-- the price for any prepayment or refinancing of the respective
				Advance shall include a premium equal to 5 percent of the amount
				of principal being prepaid or refinanced, as the case may be,
				multiplied by a fraction: 

				
						      (1) the numerator of which is the number of
						Payment Dates that occur between: 

						(A) in the case of a prepayment, the date of
								prepayment (if such date is a Payment Date) or
								the Payment Date immediately preceding the date
								of prepayment (if the date of prepayment is not
								a Payment Date), and, in the case of a
								refinancing, the date of refinancing, which
								date, in either case, 

							
						
					
				
			
		
	

			
	    
	
			BOND PURCHASE AGREEMENT - page 20

	

	
			RUS

	    
	
			
			shall be included in computing the number of
								Payment Dates; and

								
								      (B) the fifth anniversary of the
								applicable First Call Date (if the Borrower
								elected to have the prepayment/refinancing
								privilege include a 5-year No-Call Period) or
								the fifth anniversary of the Requested Advance
								Date (if the Borrower elected to have the
								prepayment/refinancing privilege not include a
								5-year No-Call Period), which date, in either
								case, shall be excluded in computing the number
								of Payment Dates; and

							
						
					
				
			
		
		
		
			
				
					
						                (2) the denominator of which is
						20,

					

				

			

		

		and no premium on or after the fifth anniversary of the
				applicable First Call Date (if the Borrower elected to have the
				prepayment/refinancing privilege include a 5-year No-Call
				Period) or the fifth anniversary of the Requested Advance Date
				(if the Borrower elected to have the prepayment/refinancing
				privilege not include a 5-year No-Call Period); or

				
				      (c) "par" -- the price for any prepayment or
				refinancing of the respective Advance shall include no premium.

			
		
		
		     11.3.4  Standard for Calculating FFB Financing
		Options Fee for Fixed-Premium Prepayment/Refinancing Privilege. The
		fee assessed by FFB and payable by the Borrower to have the
		Fixed-Premium Prepayment/Refinancing Privilege described in this
		section 11.3 to apply to any Advance (such fee being an "FFB
		Financing Options Fee") shall be established on the basis of the
		determination made by FFB described in paragraph 6(d) of the Bond.
		

		
	

		     11.3.5 Calculation and Notification of FFB Financing
		Options Fee for Fixed-Premium Prepayment/Refinancing Privilege. FFB
		shall make the determination described in section 11.3.4 of this
		Agreement for each Advance to which the Borrower has elected to have the
		Fixed-Premium Prepayment/Refinancing Privilege apply, at the time of the
		establishment of the particular basic interest rate that is to apply to
		the respective Advance. After making such determination for each
		Advance, FFB shall notify the Borrower and RUS of the particular FFB
		Financing Options Fee (expressed in terms of a basis point increment)
		that is assessed by FFB and payable by such Borrower for such
		Fixed-Premium Prepayment/Refinancing Privilege in the particular
		interest rate confirmation notice relating to such Advance

	

			
	     
	
			BOND PURCHASE AGREEMENT - page 21

	

	
			RUS

	   
	
			to be
		delivered by FFB in accordance with section 7.7 of this Agreement.

	

     Section 11.4 New Notices and Billing Statements After Refinancings.

In the event of a refinancing of any Advance, FFB shall provide the Borrower
and RUS with a new interest rate confirmation notice and a new billing statement
reflecting the new interest rate applicable to such Advance.

ARTICLE 12

BOND SERVICING AND RELATED DUTIES AND RIGHTS

     Section 12.1 Custody of Bond.

     Subject
to section 15.4 of this Agreement, RUS shall have custody, as agent for FFB, of
the original Bond that has been purchased by FFB under this Agreement until all
amounts that are owed under the Bond have been paid in full or until such time
as actual possession of the original Bond has been requested by FFB. If FFB
requests RUS for actual possession of the original Bond, RUS shall promptly
deliver the original Bond to FFB.

     Section 12.2 RUS Duties as Bond Servicer and Guarantor.

		     12.2.1 Bond Servicing To Be Performed by RUS. Bond
		servicing shall be performed by RUS, as agent for FFB, for so long as
		FFB shall be the Holder of the Bond. Payment by FFB for RUS's servicing
		of the Bond shall be made in accordance with section 12.3 hereof.

		
		     12.2.2 Bond Servicing Duties. As a part of servicing
		the Bond, RUS shall:

		
				      (a) serve as principal point of contact for the
				Borrower with respect to any questions that the Borrower may
				have about its borrowings from FFB;

				
				      (b) hold, as agent for FFB, the original Bond in
				accordance with the terms of section 12.1 hereof;

				
				      (c) prepare and deliver to the Borrower billing
				statements, which billing statements shall reflect the terms of
				the billing statements prepared by FFB and delivered to RUS
				showing amounts owed with respect to each Advance made under the
				Bond;

				
				      (d) collect, as agent for FFB, all amounts paid by
				the Borrower under the Bond; and

			
		
	

			
			
	    
	
			BOND PURCHASE AGREEMENT - page 22

	

	
			RUS

	    
	
			
				      (e) turn over to FFB all amounts collected under
				clause (d) of this section 12.2.2 when and as due under the
				Bond.

			
		
	

     Section 12.3 Bond Servicing Fee. 

     RUS shall be compensated for performing the bond servicing described
in this article 12 by deducting from the fee assessed by FFB under paragraph 9
of the Bond and collected by RUS an amount equal to the cost to RUS, as
determined by RUS, of performing the bond servicing, provided, however,
that the cost to RUS of performing bond servicing for any time period shall not
exceed the fee assessed by FFB under paragraph 9 of the Bond for the same time
period.

     Section 12.4 Liability and Rights of RUS as Guarantor.

		     12.4.1 Liability as Guarantor. If the Bond is in
		payment default, RUS shall be liable to FFB in accordance with the terms
		of the RUS Guarantee, without regard to the sufficiency of the security
		or the remedies RUS may enforce against the Borrower.

		
		     12.4.2 Rights as Guarantor. In consideration of the
		RUS Guarantee, RUS shall have the sole authority (vis-a-vis FFB), if the
		Bond is in payment default, in respect of acceleration of the Bond, the
		exercise of other available remedies, and the disposition of sums or
		property recovered.

	

     Section 12.5 Bond Payments Made by RUS.

		     12.5.1 General. RUS and FFB understand and agree that
		RUS, in its combined capacity as both bond servicer and guarantor of the
		Bond, shall pay to FFB all amounts due and owing under the Bond, when
		and as those amounts are due and payable under the terms of the Bond.

		
		

		
		
				      (a) Bond Servicing Payments. As bond servicer, RUS
				shall make payments by turning over to FFB, when and as due
				under the Bond, all amounts that have been collected by RUS
				under section 12.2.2(d) of this Agreement. 

				
				      (b) Bond Guarantee Payments. As guarantor, RUS
				shall pay to FFB, when and as due under the Bond, the
				difference, if any, between the amounts that are owed to FFB
				under the terms of the Bond and the amounts that have been
				collected under section 12.2.2(d) of this Agreement. 

			
		
		
		     12.5.2 RUS Payments To Be Made by Book Transfer. RUS
		shall make each payment under section 12.5.1 of this

		
	

			
	    
	
			BOND PURCHASE AGREEMENT - page 23

	

	
			RUS

	    
	
			Agreement by
		internal transfer of funds on the books of the United States Department
		of the Treasury from the account of RUS to the account of FFB specified
		by FFB from time to time.     12.5.3 Late Charges. Subject to section 12.5.4 of
		this Agreement, in the event that RUS shall fail to make any payment
		under section 12.5.1 of this Agreement when and as that payment by RUS
		to FFB is due (any such amount being then an "Overdue Amount"),
		the amount payable shall be that Overdue Amount with interest thereon
		(such interest being the "Late Charge"). The Late Charge shall
		accrue from the scheduled date of payment for the Overdue Amount (taking
		into account any Business Day adjustments under the Bond) to the actual
		date on which payment is made. The Late Charge applicable to RUS shall
		be calculated in the same manner as Late Charges applicable to the
		Borrower are calculated under the Bond.

		
		     12.5.4 Uncontrollable Cause. In the event that RUS is
		prevented by an Uncontrollable Cause from making any payment under
		section 12.5.1 of this Agreement at the time or in the manner as RUS is
		required to make that payment, then RUS shall make that payment as soon
		as the respective Uncontrollable Cause ceases to prevent RUS from making
		that payment.  The amount that is then due and owing that is not
		paid due to an Uncontrollable Cause for RUS shall bear interest at the
		91-day loan rate then established by FFB based on a determination made
		by the Secretary of the Treasury pursuant to section 6(b) of the FFB
		Act, such rate being subject to re-determination at 91-day intervals if
		the amount due and owing is not paid. 

		
		     12.5.5 No Modification of Times for Payment. Nothing
		in section 12.5.3 or section 12.5.4 of this Agreement shall be construed
		as permitting or implying that RUS may, without the prior written
		consent of FFB, modify, extend, alter, or affect in any manner
		whatsoever (except as explicitly provided herein) the right of FFB to
		receive any and all payments on account of the Bond when and as due
		under the Bond.

		
		     12.5.6 Bond Assignment upon Payment in Full. Upon
		payment by RUS to FFB of all amounts required to be paid by RUS to FFB
		under section 12.5.1 of this Agreement with respect to the Bond , FFB
		shall assign and transfer to RUS all rights held by FFB in that Bond.

		
			
	    
	
			BOND PURCHASE AGREEMENT - page 24

	

	
			RUS

	   
	

ARTICLE 13

AGREEMENTS AND OTHER RIGHTS OF RUS

     Section 13.1 Delivery of Replacement Certificates Specifying
Authorized RUS Officials. 

		     13.1.1 Annual Replacement Certificates. Promptly
		after the commencement of each fiscal year, RUS shall deliver to FFB a
		Certificate Specifying Authorized RUS Officials, updated as appropriate,
		in replacement of the original such certificate delivered pursuant to
		section 4.2(d) hereof.

		
		     13.1.2 Replacement Certificates within any Fiscal Year.
		RUS may at any time within any fiscal year deliver to FFB a revised
		Certificate Specifying Authorized RUS Officials, updated as appropriate,
		in replacement of the annual certificate delivered pursuant to section 13.1.1
		hereof.

	

Section 13.2 Certain Agreements of RUS and FFB. 

		     13.2.1 Agent for Compliance Purposes. In the event
		that FFB shall become subject to any duties under any applicable law or
		regulation solely because of its providing or having provided financing
		under the Bond, RUS shall serve as agent for FFB to the fullest extent
		permitted under that law or regulation in connection with satisfying the
		requirements of that law or regulation.

		
		     13.2.2 RUS's Agreement Regarding Its Appointment as Agent
		for FFB. Recognizing the legitimate needs of FFB to ensure that RUS,
		as compliance agent for FFB, has performed all duties to which FFB
		becomes subject under any applicable law or regulation solely because of
		providing or having provided financing under the Bond, and with RUS and
		FFB expressing their intent to cooperate in connection with the exchange
		of information related thereto, RUS agrees: 

		
				      (a) to deliver to representatives of FFB or its
				designate, when requested to do so by FFB or its designate,
				actual possession of the original of any certificate, report,
				document, or paper collected or prepared by RUS, as compliance
				agent for FFB; or 

				
				      (b) at the option of FFB, to permit representatives
				of FFB or its designate, during reasonable business hours, to
				have access to, and to inspect and make copies of, any and all
				certificates, reports, documents, or papers collected or
				prepared by RUS, as compliance agent for FFB.

			
		
	

			
	    
	
			BOND PURCHASE AGREEMENT - page 25

	

	
			RUS

	    
	
			
		     13.2.3 Litigation Cooperation. When requested to do
		so by FFB, RUS shall cooperate with FFB in the prosecution or defense of
		any litigation that FFB may institute against any Person other than RUS
		or to which FFB is named as a party, as the case may be, arising out of
		FFB providing or having provided financing under the Bond. 

	

     Section 13.3 Reimbursement.

		     13.3.1 RUS's Agreement to Reimburse. To the extent
		permitted by applicable law and subject to the availability of funds,
		RUS agrees to reimburse FFB (but not any successor, assignee or
		transferee of FFB) for any and all liabilities, losses, costs, or
		expenses of any nature that may be imposed upon, incurred by, or
		asserted against FFB by any Person other than RUS in any way relating to
		or arising out of FFB providing or having provided financing under the
		Bond, but specifically excluding any liability, loss, cost or expense
		relating to or arising out of any sale, assignment, or other transfer by
		FFB, pursuant to section 15.4 hereof, of all or any part of the Bond.
		

		
		     13.3.2 RUS's Agreement to Seek Appropriations. In the
		event that no funds are available to RUS at the time that RUS needs
		funds to reimburse FFB as contemplated by section 13.3.1 hereof, RUS
		agrees that it will diligently seek to obtain additional appropriations
		for that purpose.

		
		     13.3.3 FFB's Agreement to Deliver Notice. Solely for
		the purpose of assisting RUS in mitigating the extent of any
		reimbursement contemplated by section 13.3.1 hereof, FFB agrees that it
		will deliver notice to RUS of any and all liabilities, losses, costs, or
		expenses imposed upon, incurred by, or asserted against FFB promptly
		after FFB has actual knowledge of the imposition, incurrence, or
		assertion of such liability, loss, cost, or expense. 

	

     Section 13.4 Effect of RUS's Nonperformance.

In the event that RUS shall fail to fulfill any of its agreements in this
article 13, FFB shall nevertheless continue to make Advances under the Bond
before the date of the respective failure. 

     Section 13.5 Right of RUS to Purchase Advances and Bonds.

		     13.5.1 RUS's Right. Notwithstanding the provisions of
		the Bond, RUS may purchase from FFB all or any portion of any Advance
		that has been made under the Bond, or may purchase from FFB the Bond in
		its entirety, in either case in the same manner, at the same price, and
		subject to the same limitations as shall be applicable, under the terms
		of

	

			

			
	    
	
			BOND PURCHASE AGREEMENT - page 26

	

	
			RUS

	
			 
	
			
			
			the Bond, to a prepayment by the Borrower of all or any portion of
		any Advance that has been made under the Bond, or a prepayment by the
		Borrower of the Bond in its entirety, as the case may be.

	

		     13.5.2 Borrower's Acknowledgement of RUS's Right.
		Notwithstanding the provisions of the Bond, the Borrower acknowledges
		that RUS may purchase from FFB all or any portion of any Advance that
		has been made under the Bond, or may purchase from FFB the Bond in its
		entirety, in the same manner, at the same price, and subject to the same
		limitations as shall be applicable, under the terms of the Bond, to a
		prepayment by the Borrower of all or any portion of any Advance made
		under the Bond, or a prepayment by the Borrower of the Bond in its
		entirety, as the case may be.

		
	

ARTICLE 14

EFFECTIVE DATE, TERM, SURVIVAL

     Section 14.1 Effective Date. 

     This Agreement shall be effective as of the date first above
written.

     Section 14.2 Term of Commitment to Make Advances. 

     The obligation of FFB under this Agreement to make Advances under
the Bond issued by the Borrower shall expire on the "Last Day for an Advance"
specified in the Bond.

     Section 14.3 Survival. 

		     14.3.1 Representations, Warranties, and Certifications.
		All representations, warranties, and certifications made by the Borrower
		in this Agreement, or in any agreement, instrument, or certificate
		delivered pursuant hereto, shall survive the execution and delivery of
		this Agreement, the purchasing of the Bond hereunder, and the making of
		Advances thereunder.

		
		     14.3.2 Remainder of Agreement. Notwithstanding the
		occurrence and passage of the Last Day for an Advance, the remainder of
		this Agreement shall remain in full force and effect until all amounts
		owed under this Agreement and the Bond purchased by FFB under this
		Agreement have been paid in full.

		
	

			

			
	
			 
	
			BOND PURCHASE AGREEMENT - page 27

	
			 
	
			

	
			RUS

	
			   
	
			

ARTICLE 15

MISCELLANEOUS

     Section 15.1 Notices. 

		     15.1.1 Addresses of the Parties. All notices and
		other communications hereunder or under the Bond to be made to any party
		shall be in writing and shall be addressed as follows:

	

			                         To FFB:

Federal Financing Bank
Main Treasury Building
1500 Pennsylvania Avenue, NW
Washington, DC  20220

					Attention: Manager

					Telephone No. (202) 622-2470
Facsimile No. (202) 622-0707

				
			
		
	

                         To the Borrower:

			
				
					
						
							
								National Rural Utilities Cooperative 
     Finance Corporation
2201 Cooperative Way
Herndon, VA 20171-3025

								Attention: Chief Financial Officer

									

								Telephone: (703) 709-6718
Facsimile: (703) 709-6779

								
								with a copy to:

								National Rural Utilities Cooperative 
     Finance Corporation
2201 Cooperative Way
Herndon, VA 20171-3025

								Attention: General Counsel

								

								Telephone: (703) 709-6712
Facsimile: (703) 709-6811

							

						

					

				

			

			                         To RUS:

			
				
					
						
							
								Rural Utilities Service
U.S. Department of Agriculture

							

						

					

				

			

			
			
	
			   
	
			BOND PURCHASE AGREEMENT - page 28

	
			

	
			RUS

	
			    
	
			
			                 1400 Independence Avenue, SW

			                 Washington, DC 20250                 Attention: Administrator

                 Telephone: (202) 720-9540

                 Facsimile: (202) 720-1725

The address, telephone number, or facsimile number for any party may
		be changed at any time and from time to time upon written notice given
		by such changing party to the other party hereto.

		
		     15.1.2 Permitted Means of Delivery. A properly
		addressed Advance Request, Advance Request Approval Notice, other
		notice, or other communication to FFB shall be deemed to have been
		delivered if it is sent by facsimile (fax) transmission. A properly
		addressed notice or other communication to the Borrower shall be deemed
		to have been delivered if it is sent by facsimile (fax) transmission. A
		properly addressed Advance Request, notice, or other communication to
		RUS shall be deemed to have been delivered if it is sent by facsimile
		(fax) transmission, provided that RUS shall receive the original of such
		faxed Advance Request, notice, or other communication within 5 Business
		Days.

		
		     15.1.3 Effective Date of Delivery. A properly
		addressed notice or other communication shall be deemed to have been
		"delivered" for purposes of this Agreement:

		
				      (a) if made by personal delivery, on the date of
				such personal delivery;

			
		
	

				      (b) if mailed by first class mail, registered or
				certified mail, express mail, or by any commercial overnight
				courier service, on the date that such mailing is received;

			
		
		
		
			
				      (c) if sent by facsimile (fax) transmission:

			

		

		
						      (1) if the transmission is received and
						receipt confirmed before 4:00 p.m. (Washington, DC,
						time) on any Business Day, on the date of such
						transmission; and

						
						      (2) if the transmission is received and
						receipt confirmed after 4:00 p.m. (Washington, DC, time)
						on any Business Day or any day that is not a Business
						Day, on the next Business Day.

					
				
			
		
	

			
	
			    
	
			BOND PURCHASE AGREEMENT - page 29

	
			

	
			RUS

	
			    
	
			
			
			
		     15.1.4 Notices to FFB to Contain FFB Identification
		References.  All notices to FFB making any reference to either
		the Bond or any Advance made thereunder shall identify the Bond or such
		Advance by the Bond Identifier or the respective Advance Identifier, as
		the case may be, assigned by FFB to the Bond or such Advance.

	

     Section 15.2 Amendments.

		     15.2.1 This Agreement. No provision of this Agreement
		may be amended, modified, supplemented, waived, discharged, or
		terminated orally but only by an instrument in writing duly executed by
		each of the parties hereto.

		
		     15.2.2 Bond Guarantee Agreement. RUS and the Borrower
		agree that they will not enter into any amendment, modification, or
		waiver of section 9.9 of the Bond Guarantee Agreement, or the
		consequences of a breach thereof, without the prior written consent of
		FFB.

	

     Section 15.3 Successors and Assigns.  

     This Agreement shall be binding upon and inure to the benefit of
each of FFB, the Borrower, and RUS, and each of their respective successors and
assigns.

     Section 15.4 Sale or Assignment of Bond.

		     15.4.1 Sale or Assignment Permitted. Subject to the
		agreement in the immediately following sentence, FFB may sell, assign,
		or otherwise transfer all or any part of the Bond or any participation
		share thereof. FFB agrees not to sell, assign, or otherwise transfer all
		or any part of the Bond or all or any part of the right to receive the
		principal of and interest on the Bond or any participation share thereof
		to a purchaser, assignee, or transferee that is not an agency or
		instrumentality of the United States or a trust fund or other government
		account under the authority or control of the United States or any
		officer or officers thereof until such time as FFB and RUS have agreed
		upon mutually satisfactory arrangements for the servicing of the right
		to receive principal and interest payments on the Bond or Bonds and for
		making claims under the RUS Guarantee when FFB is not the Holder.

		
		     15.4.2 Notice of Sale, Etc. FFB will deliver to the
		Borrower and RUS written notice of any sale, assignment, or other
		transfer of the Bond promptly after any such sale, assignment, or other
		transfer.

	

		     15.4.3 Manner of Payment after Sale.
		Any sale, assignment, or other transfer of all or any part of the Bond
		may provide that, following such sale, assignment, or other

	

			
	
			   
	
			BOND PURCHASE AGREEMENT - page 30

	
			

	
			RUS

	
			    
	
			
			transfer, payments on
		the Bond, with the exception of the fee described in paragraph 9 of the
		Bond, shall be made in the manner specified by the respective purchaser,
		assignee, or transferee, as the case may be. Payments of the fee
		described in paragraph 9 of the Bond shall be made in the manner
		specified by FFB in the written notice of the sale, assignment, or other
		transfer delivered by FFB to the Borrower and RUS as provided in section
		15.4.2 of this Agreement.

	

     15.4.4 Replacement Bonds. 

			
				      (a) Borrower's Agreement. The Borrower agrees:
				

				
							      (1) to issue a replacement Bond or Bonds
						with the same aggregate principal amount, interest rate,
						maturity, and other terms as each respective Bond or
						Bonds sold, assigned, or transferred pursuant to section
						15.4.1 of this Agreement; provided, however,
						that, when requested by the respective purchaser,
						assignee, or transferee, such replacement Bond or Bonds
						shall provide that payments thereunder shall be made in
						the manner specified by such purchaser, assignee, or
						transferee; and provided, further, however, that upon delivery of such replacement
						Bond, the Borrower shall be released and discharged from
						any further liability on account of the sold, assigned,
						or transferred Bond; and provided, further,
							however, that the Bond being replaced shall be
						surrendered to the Borrower for cancellation; and 

							
							      (2) to effect the change in ownership on
						its records and on the face of each such replacement
						Bond issued, upon receipt of each Bond or Bonds so sold,
						assigned, or transferred.

						
					
					      (b) RUS's Agreement. If FFB elects to sell, assign,
				or transfer all or any part of the Bond or any participation
				share thereof, and if the respective purchaser, assignee, or
				transferee requests the Borrower to issue a replacement Bond or
				Bonds as provided in section 15.4.4(a)_of this Agreement, RUS
				agrees that it will, upon the written request of FFB, execute
				and deliver an RUS Guarantee of the replacement Bond in
				replacement of the RUS Guarantee of the sold, assigned, or
				transferred Bond. 

					      (c) FFB's Agreement. FFB agrees that, upon delivery
				by RUS of a replacement RUS Guarantee as provided in section
				15.4.4(b) of this Agreement, RUS shall be released and
				discharged from any further

				
			

			
	
			   
	
			BOND PURCHASE AGREEMENT - page 31

	
			

	
			RUS

	
			    
	
			
			liability on account of the RUS
				Guarantee of the sold, assigned, or transferred Bond. 

			
		
	

     Section 15.5 Forbearance Not a Waiver.

     Any forbearance on the part of FFB from enforcing any term or
condition of this Agreement shall not be construed to be a waiver of such term
or condition or acquiescence by FFB in any failure on the part of Borrower to
comply with or satisfy such term or condition.

     Section 15.6 Rights Confined to Parties.

     Nothing expressed or implied herein is intended or shall be
construed to confer upon, or to give to, any Person other than FFB, the
Borrower, and RUS, and their respective successors and permitted assigns, any
right, remedy, or claim under or by reason of this Agreement or of any term,
covenant, or condition hereof, and all of the terms, covenants, conditions,
promises, and agreements contained herein shall be for the sole and exclusive
benefit of FFB, the Borrower, and RUS, and their respective successors and
permitted assigns.

     Section 15.7 Governing Law.  

     This Agreement and the rights and obligations of the parties
hereunder shall be governed by, and construed and interpreted in accordance
with, the laws of the United States of America and not the law of the several
States.

     Section 15.8 Severability.  

     Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not of itself invalidate or render unenforceable such
provision in any other jurisdiction.

     Section 15.9 Headings.  

     The descriptive headings of the various articles, sections, and
subsections of this Agreement were formulated and inserted for convenience only
and shall not be deemed to affect the meaning or construction of the provisions
hereof.

     Section 15.10 Counterparts.  

     This Agreement may be executed in separate counterparts, each of
which when so executed and delivered shall be an original, but all of which
together shall constitute but one and the same instrument.

			
	
			    
	
			BOND PURCHASE AGREEMENT - page 32

	
			

	
			RUS

	     
	
			

			     IN WITNESS WHEREOF, FFB, the Borrower, and RUS have each caused this
Agreement to be executed as of the day and year first above mentioned.
	    

		

			FEDERAL FINANCING BANK

("FFB")
	by
	 	
			

/s/ Roger Kodat                       

			
	Name:	

			Roger Kodat
	Title:	
			Vice President and Treasurer

 

		
			
			NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION(the "Borrower")
	by
	 	
			

/s/ Sheldon C. Petersen             

			
	Name:	

			Sheldon C. Petersen
	Title:	

			Governor and

			Chief Executive Officer

 

		

										
										ADMINISTRATOR of the 
										

			RURAL UTILITIES SERVICE 

			("RUS")
	by
	 	
			

/s/ James M. Andrew                

			
	Name:	

			James M. Andrew
	Title:	
			Administrator

 

		
			BOND PURCHASE AGREEMENT - page 33

		
			RUS

	
			
			 

 

			 

			 

			 

			EXHIBIT A

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			 

			 

			FORM

			

			OF

			

			ADVANCE REQUEST

			 

			 

			 

			 

			 

		
			RUS

	
			
			 

			
			ADVANCE REQUEST

			(RUS APPROVAL REQUIRED)

			
			
			****************************************************************

			
			REFER TO RURAL UTILITIES SERVICE (RUS) REGULATIONS AND
			INSTRUCTIONS FOR A DESCRIPTION OF (1) THE OTHER FORMS AND MATERIALS
			THAT ARE REQUIRED IN CONNECTION WITH EACH REQUEST FOR AN ADVANCE,
			AND (2) THE TIME LIMITS FOR SUBMITTING THOSE FORMS AND MATERIALS AND
			THIS ADVANCE REQUEST TO RUS.

			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER: 

			
			                              Chief 

			                              Policy
			Analysis and Loan Management Staff

			                              Telephone:
			(202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM (TOGETHER WITH
			ALL OTHER FORMS AND MATERIAL REQUIRED BY RUS) TO RUS AT THE
			ADDRESS OF THE CONTACT OFFICE INDICATED BELOW:

			
			                              Chief 

			                              Policy Analysis
			and Loan Management Staff

			                              Rural Utilities
			Service

			                              U.S. Department
			of Agriculture

			                              Mail Stop 1560

			                              1400
			Independence Avenue, SW

			                              Washington, DC
			20250-1560

			

			                              Reference:
			Section 313A Loan Guarantee 

			                              Telephone:
			(202) 720-0424

			                              Facsimile: (202)
			690-0717

			
			
			****************************************************************

			 

	
			ADVANCE REQUEST (RUS APPROVAL REQ'D) - page 1

	
			     
	
			

	
			RUS

	
			   
	
			ADVANCE REQUEST

			Manager 

			Federal Financing Bank

			          Reference is made to the following-described Future
			Advance Bond (the "Bond") payable to the Federal Financing Bank ("FFB"),
			which is guaranteed by the Rural Utilities Service ("RUS"):

			Name of Borrower (the "Borrower"):
					 

					
					National Rural Utilities Cooperative Finance Corporation
					
					

					FFB Bond Identifier: _____________________1
					
					

				
			
			          The undersigned, as an authorized officer of the
			Borrower, hereby requests FFB to make an advance of funds ("this
			Advance") under, pursuant to, and in accordance with the applicable
			terms of the Bond.

			          The undersigned further requests that this Advance be
			made as follows:

			 

			1. Requested Advance Amount: $_____________________2

			2. Requested Advance Date: $_____________________3
			
			

			
			3. Wire Instructions:

			          A. CORRESPONDENT BANK (if any) FOR PAYEE'S BANK:

			
			Name of financial institution  
			______________________________

			
			Address of financial institution
			 
			______________________________

			
			ABA number of financial institution
			______________________________

			_____________________

			
			
			
			                   
			1   Insert
			the Bond Identifier that FFB assigned to the Bond (as provided in
			section 5.1(a)(2) of the Bond Purchase Agreement referred to in the
			Bond).

			                    2   Insert the particular amount of funds that the
			Borrower requests to be advanced, which amount must satisfy the
			condition specified in section 7.3.4 of the Bond Purchase Agreement
			referred to in the Bond.

			                    3   Insert the particular calendar date that the
			Borrower requests to be date on which this Advance is to be made,
			which date must meet the criteria for Requested Advance Dates
			specified in section 7.3.1(a)(3) of the Bond Purchase Agreement
			referred to in the Bond.

	
			 
	
			ADVANCE REQUEST (RUS APPROVAL REQ'D) - page 2

	
			     
	
			

	
			RUS

	
			    
	
			          B. PAYEE'S BANK AND ACCOUNT:
			Name of
			financial institution                                             ______________________________

			
			Address of financial institution
			                                        ______________________________

			
			ABA number of financial institution 
			                               ______________________________

			
			Account name
			                                                                    ______________________________

			
			Account number 
			                                                                ______________________________

			
			Taxpayer ID number 
			                                                          ______________________________

			4. Maturity Date: 
			                                                     
			       _________________________4

			
			5. Prepayment/Refinancing Privilege:
			 

			If (and only if) the Borrower selects, as
					the "Maturity Date" for this Advance, a date that will occur
					on or after the fifth anniversary of the "Requested
					Advance Date," then the Borrower must elect 1
					of the following 2 alternative prepayment/refinancing
					privileges.

					
				
			
			                ! Alternative Prepayment/Refinancing Privileges:

			

"M" for the "Market Value Prepayment/
					                                          
					_____ 5

					             Refinancing Privilege 

					

					"F" for the "Fixed Premium Prepayment/

					

					       Refinancing Privilege

				
			
			_____________________

			
			          4  Insert the particular calendar date
			that the Borrower selects to be the date on which this Advance is to
			mature, which date must meet all of the criteria for Maturity Dates
			specified in section 7.3.1(a)(5) of the Bond Purchase Agreement
			referred to in the Bond.

			          5  Insert in the box
			"M" if the Borrower elects to have the Market Value
			Prepayment/Refinancing Privilege apply to this Advance.  Insert
			in the box "F" if the Borrower elects to have a Fixed Premium
			Prepayment/Refinancing Privilege apply to this Advance.

	
			  
	
			ADVANCE REQUEST (RUS APPROVAL REQ'D) - page 3

	
			    
	
			

	
			RUS

	
			    
	
			
			
			If (and only if) the Borrower elects the "Fixed
			Premium Prepayment/ Refinancing Privilege," then the Borrower 
			must elect 1 of the following 2 alternative no-call
			period options. 

			
			"          Alternative No-Call Period Options:

			
			                                    "Y" for "yes," if the privilege
			is 
					                                          
					_____ 6

					     
			                                      to include a 5-year No-Call
			Period     

			
			     

			
			                                    "N" for "no," if the privilege
			is not  

                       
			                   to include a 5-year No-Call Period

			
			
			If (and only if) the Borrower elects the "Fixed
			Premium Prepayment/ Refinancing Privilege, then the borrower 
			must select 1 of the following 3 alternative premium
			options.

			
			                        
			"          Alternative
			Premium Options:

			
			                                    "X"
			for 10% premium declining over                                 
					_____ 7

					     
			                                     
			10 years    

			
			                                    "V"
			for 5% premium declining over  

                       
			                   5 years

			
			                                    "P"
			for par (no premium)

			
			_________________________

			                   
			6   Insert in the box "Y" if the Borrower elects to have
			the Fixed Premium Prepayment/Refinancing Privilege include a 5-year
			No-Call Period during which this Advance will not be eligible for
			prepayment or refinancing.  Insert in the box "N" if the
			Borrower elects to have the Fixed Premium Prepayment/Refinancing
			Privilege not include any 5-year No-Call Period, i.e. this
			Advance will be eligible for prepayment or refinancing on any
			Business day.

			

                   
			7   Insert in the box "X" if the Borrower selects a 10%
			premium declining over 10 years as the premium option for the Fixed
			Premium Prepayment/Refinancing Privilege that is to apply to this
			Advance.  Insert in the box "V" if the Borrower selects a 5%
			premium declining over 5 years as the premium option for the Fixed
			Premium Prepayment/Refinancing Privilege that is to apply to this
			Advance.  Insert in the box "P" if the Borrower selects par (no
			premium) as the premium option for the Fixed Premium
			Prepayment/Refinancing Privilege that is to apply to this Advance.

	
			 
	
			  ADVANCE REQUEST (RUS APPROVAL REQ'D) - page
			4

	
			

	
			RUS

	
			     
	
			
			            The
			undersigned hereby certifies that the authority of the undersigned
			to execute and deliver this Advance Request on behalf of the
			Borrower is valid and in full force and effect on the date hereof. 
			
			

			
			NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

			(the "Borrower") 

			
			By:     _______________________

			
			Name:   ______________________ 

			
			Title:  _______________________ 
			

			
			Date:   _______________________

	
			     
	
			  ADVANCE REQUEST (RUS APPROVAL REQ'D) - page
			5

	
			

	
			RUS

	
			    
	
			
			
			NOTICE OF RUS APPROVAL OF

			
			
			ADVANCE REQUEST

			
			            
			Notice is hereby given to FFB that the preceding Advance Request
			made by the Borrower identified therein has been approved by RUS for
			purposes of the Bond identified therein.

			
			 ___________________

			
			  FOR ACCOUNTING

  USE ONLY:

			
			  RUS Budget                                                  
			ADMINISTRATOR of the

  Account                                                         
			RURAL UTILITIES SERVICES,

  Number                                                         
			acting through his or her

			      _____________                                        
			duly authorized desingee

			 ___________________

			
			 

			
			                                                                         
			By:         
			_________________________

			
			                                                                         
			Name:     _________________________

			
			                                                                         
			Title:       _________________________

			
			                                                                         
			Date:       
			_________________________

	
			      
	
			  ADVANCE REQUEST (RUS APPROVAL REQ'D) - page
			6

	
			

	
			RUS

	
			   
	
			 

			 

			 

			 

			 

			 

			
			EXHIBIT B

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			 

			 

			FORM

			

			OF

			

			BOND

			
			 

			 

			 

			 

			 

			 

	
			

	
			RUS

	
			    
	
			
			___________________

			
			  FOR FFB USE ONLY:         
			Bond

                                                
			Date                                        April 28, 2006

         Bond Identifier:              
			

      _____________                
			Place   

                                                
			of

         Purchase Date:                
			Issue                                      
			Washington, DC 

			
			        
			_____________             
			Last Day                          
			

			 ___________________         
			for an 

                                                
			Advance (paragraph 3)           
			July 15, 2009

			

                                                
			Maximum

                                                
			Principal 

                                                
			Amount (paragraph 4)             
			$1,500,000,000.00

			
			                                                
			Final

                                                
			Maturity

                                                
			Date (paragraph 5)                  
			July 15, 2029

	
			 

	
		
			
			FUTURE ADVANCE BOND

			
			SERIES B

	    
	
			
			1.           
			
			Promise to Pay.

			 

			
			            FOR
			VALUE RECEIVED, NATIONAL RURAL UTILITIES COOPERATIVE FINANCE
			CORPORATION, a cooperative association existing under the laws
			of the District of Columbia (the "Borrower," which term
			includes any successors or assigns) promises to pay the FEDERAL
			FINANCING BANK ("FFB"), a body corporate and
			instrumentality of the United States of America (FFB, for so long as
			it shall be the holder of this Bond, and any successor or assignee
			of FFB, for so long as such successor or assignee shall be the
			holder of this Bond, being the "Holder"), at the times, in
			the manner, and with interest at the rates to be established as
			hereinafter provided, such amounts as may be advanced from time to
			time by FFB to the Borrower under this Bond (each such amount being
			an "Advance", and more than one such amount being "Advances").

			 

			
			
			2.           
			 Reference to Certain Agreements.

			
			 

			
			            (a)  Bond Purchase Agreement.  This Bond is the
			"Bond" referred to in, and entitled to the benefits of, the Series B
			Bond Purchase Agreement dated as of even date herewith, made by and
			among FFB, the Borrower, and the Administrator of the Rural
			Utilities Service, a Rural Development agency of the United  

	    
	
			BOND - page 1

	

	
			RUS

	    
	
			
			States Department of Agriculture ("RUS") (such agreement, as
			it may be amended, supplemented, and restated from time to time in
			accordance with its terms, being the "Bond Purchase Agreement").

			
			 

			
			            (b) Bond Guarantee Agreement.  This Bond is the
			"Bond" referred to in, and entitled to the benefits of, the Series B
			Bond Guarantee Agreement dated as of even date herewith, made
			between RUS and the Borrower (such agreement, as it may be amended,
			supplemented, and restated from time to time in accordance with its
			terms, being the "Bond Guarantee Agreement").

			
			 

			
			            (c) Pledge Agreement.  This Bond is one of the
			"Bonds" referred to in the Pledge Agreement dated as of even date
			herewith, made among the Borrower, RUS, and U.S. Bank Trust National
			Association, a national association (such agreement, as it may be
			amended, supplemented, and restated from time to time in accordance
			with its terms, being the "Pledge Agreement").

			
			 

			
			
			3.           
			 Advances; Advance Requests; RUS Approval
			Requirement; Last Day for an Advance.

			 

			
			            (a)
			Subject to the terms and conditions of the Bond Purchase Agreement,
			FFB shall make Advances to the Borrower from time to time under this
			Bond, in each case upon delivery to FFB of a written request by the
			Borrower for an Advance under this Bond, in the form of request
			attached to the Bond Purchase Agreement as Exhibit A thereto (each
			such request being an "Advance Request") and completed as
			prescribed in section 7.3.1 of the Bond Purchase Agreement.

			 

			
			            (b) To
			be effective, an Advance Request must first be delivered to RUS for
			approval and be approved by RUS in writing, and such Advance
			Request, together with written notification of RUS's approval
			thereof (each such notification being an "Advance Request
			Approval Notice"), must be received by FFB consistent with the
			advance notice requirements prescribed in section 7.3.2(b) of the
			Bond Purchase Agreement.  

			 

			
			            (c) FFB
			shall make each requested Advance on the particular calendar date
			that the Borrower requested in the respective Advance Request to be
			the date on which the respective Advance is to be made (such date
			being the "Requested Advance Date" for such Advance), subject
			to the provisions of the Bond Purchase Agreement describing certain
			circumstances under which a requested Advance shall be made on a
			later date; provided, however, that no Advance shall
			be made under this Bond after the particular date specified on page
			1 of this Bond as being the "Last Day for an Advance."

			 

			
			
			4.           
			 Principal Amount of Advances; Maximum
			Principal Amount.

			
			 

			
			            The
			principal amount of each Advance shall be the particular dollar
			amount that the Borrower specified in the respective Advance Request
			as the "Requested Advance Amount" for the  

	    
	
			BOND - page 2

	

	
			RUS

	    
	
			
			respective Advance;
			provided, however, that the aggregate principal amount
			of all Advances made under this Bond shall not exceed the particular
			amount specified on page 1 of this Bond as being the "Maximum
			Principal Amount."   

			 

			
			
			5.            Maturity Dates for Advances.

			
			 

			
			            Subject
			to paragraph 15 of this Bond, each Advance shall mature on the
			particular calendar date that the Borrower selected in the
			respective Advance Request to be the date on which the respective
			Advance is to mature (such date being the "Maturity Date" for
			such Advance), provided that such Maturity Date meets all of the
			criteria for Maturity Dates prescribed in section 7.3.1(a)(5) of the
			Bond Purchase Agreement.

			 

			
			
			6.           
			 Computation of Interest on Advances.

			
			 

			
			            (a)
			Subject to paragraphs 11 and 16 of this Bond, interest on the
			outstanding principal of each Advance shall accrue from the date on
			which the respective Advance is made to the date on which such
			principal is due.   

			 

			
			            (b)
			Interest on each Advance shall be computed on the basis of (1)
			actual days elapsed from (but not including) the date on which the
			respective Advance is made (for the first payment of interest due
			under this Bond for such Advance) or the date on which the payment
			of interest was last due (for all other payments of interest due
			under this Bond for such Advance), to (and including) the date on
			which the payment of interest is next due; and (2) a year of 365
			days (except in calendar years including February 29, when the basis
			shall be a 366-day year).   

			 

			
			            (c) The
			basic interest rate for each Advance shall be established by FFB, as
			of the date on which the respective Advance is made, on the basis of
			the determination made by the Secretary of the Treasury pursuant to
			section 6(b) of the Federal Financing Bank Act of 1973, as amended
			(codified at 12 U.S.C.  2281 et seq.) (the "FFB
			Act"); provided, however, that the shortest
			maturity used as the basis for any rate determination shall be the
			remaining maturity of the most recently auctioned  United States
			Treasury bills having the shortest maturity of all United States
			Treasury bills then being regularly auctioned.   

			 

			
			            (d) In
			the event that (1) the Borrower has selected for any Advance a
			Maturity Date that will occur on or after the fifth anniversary of
			the Requested Advance Date for such Advance, and (2) the Borrower
			has elected for such Advance a prepayment/ refinancing privilege
			described in section 11.3 of the Bond Purchase Agreement, then the
			interest rate for such Advance shall also include a price (expressed
			in terms of a basis point increment to the applicable basic interest
			rate) for the particular prepayment/refinancing privilege that the
			Borrower selected, which price shall be established by FFB on the
			basis of a determination made by FFB as to the difference between
			(A) the  

	    
	
			BOND - page 3

	    
	

	
			RUS

	    
	
			
			estimated market
			yield of a notional obligation if such obligation were to (i) be
			issued by the Secretary of the Treasury, (ii) have a maturity
			comparable to the maturity of such Advance, and (iii) include a
			prepayment and refinancing privilege identical to the particular
			prepayment/refinancing privilege that the Borrower elected for such
			Advance, and (B) the estimated market yield of a notional obligation
			if such obligation were to (i) be issued by the Secretary of the
			Treasury, (ii) have a maturity comparable to the maturity of such
			Advance, but (iii) not include such prepayment and refinancing
			privilege.  

			
			
			7.           
			 Payment of Interest; Payment Dates.

			
			            Interest accrued on the outstanding principal amount of
			each Advance shall be due and payable quarterly on January 15,
			April 15, July 15, and October 15 of each year (each such day being
			a "Payment Date"), beginning on the first Payment Date to
			occur after the date on which the respective Advance is made, up
			through and including the Maturity Date of such Advance; provided,
			however, that with respect to each Advance that is made in
			the 30-day period immediately preceding any Payment Date, payments
			of accrued interest on the outstanding principal amount of the
			respective Advance shall be due beginning on the second Payment Date
			to occur after the date on which such Advance is made.  

			
			8.           
			
			Repayment of Principal.

			
			            Subject
			to paragraph 15 of this Bond, the principal amount of each Advance
			shall be payable on the Maturity Date for the respective Advance.

			
			9.         Fee.

			
			
			           
			
			(a)  A fee to cover expenses and contingencies, assessed by
			FFB pursuant to section 6(c) of the FFB Act, shall accrue on the
			outstanding principal amount of each Advance for the period from the
			date on which the respective Advance is made to the date on which
			the principal amount of such Advance is due, not taking into account
			any maturity extensions permitted by paragraph 15 of this Bond (such
			period being the "Advance Period").  
			 

			 

			
			            (b) The
			fee on each Advance shall be:   

			
			 

			
			(1) 22.5 basis points (0.225%) per annum of the unpaid
			principal balance of such Advance for an Advance Period of a year or
			less;

			 

			
			(2) 27.5 basis points (0.275%) per annum of the unpaid
			principal balance of such Advance for an Advance Period greater than
			a year but no more than 5 years; and  

	    
	
			BOND - page 4

	

	
			RUS

	     
	
			
			(3) 35 basis points (0.35%) per annum of the unpaid principal
			balance of such Advance for an Advance Period greater than 5 years. 
			
			

			
			 

			
			(c) The fee on each Advance shall be computed in the same manner as
			accrued interest is computed under paragraph 6(b) of this Bond, and
			shall be due and payable at the same times as accrued interest is
			due and payable under paragraph 7 of this Bond (adjusted as provided
			in paragraph 10 of this Bond if a Payment Date is not a Business
			Day).  The fee on each Advance shall be credited to RUS as required
			by section 505(c) of the Federal Credit Reform Act of 1990, as
			amended (codified at 2 U.S.C.  section 661d(c)).    

			 

			
			
			10.           
			 Business Days.

			
			 

			
			            (a)
			Whenever any Payment Date, the Maturity Date for any Advance, or the
			Final Maturity Date shall fall on a day on which either FFB or the
			Federal Reserve Bank of New York is not open for business, the
			payment that would otherwise be due on such Payment Date, Maturity
			Date, or Final Payment Date, as the case may be, shall be due on the
			first day thereafter on which FFB and the Federal Reserve Bank of
			New York are both open for business (any such day being a "Business
			Day").   

			 

			
			            (b) In
			the event that any Payment Date falls on a day other than a Business
			Day, then the extension of time for making the payment that would
			otherwise be due on such Payment Date shall be (1) taken into
			account in establishing the interest rate for the respective
			Advance, (2) included in computing interest due in connection with
			such payment, and (3) excluded in computing interest due in
			connection with the next payment.   

			 

			
			            (c) In
			the event that the Maturity Date for any Advance or the Final
			Maturity Date falls on a day other than a Business Day, then the
			extension of time for making the payment that would otherwise be due
			on such Maturity Date or the Final Maturity, as the case may be,
			shall be (1) taken into account in establishing the interest rate
			for such Advance, and (2) included in computing interest due in
			connection with such payment.

			 

			
			11.  Late Payments.

			
			 

			
			            (a) In
			the event that any payment of any amount owing under this Bond is
			not made when and as due (any such amount being then an "Overdue
			Amount"), then the amount payable shall be such Overdue Amount
			plus interest thereon (such interest being the "Late Charge")
			computed in accordance with this subparagraph (a).

			 

			
			            (1) The Late Charge shall accrue from the scheduled date
			of payment for the Overdue Amount (taking into account paragraph 10
			of this Bond) to the date on which payment is made. 

	    
	
			BOND - page 5

	    
	

	
			RUS

	    
	
			
			            (2) The Late Charge shall be computed on the basis of
			(A) actual days elapsed from (but not including) the scheduled date
			of payment for such Overdue Amount (taking into account paragraph 10
			of this Bond) to (and including) the date on which payment is made,
			and (B) a year of 365 days (except in calendar years including
			February 29, when the basis shall be a 366-day year).   

			 

			
			            (3) The Late Charge shall accrue at a rate (the "Late
			Charge Rate") equal to one and one-half times the rate to be
			determined by the Secretary of the Treasury taking into
			consideration the prevailing market yield on the remaining maturity
			of the most recent auctioned 13-week United States Treasury bills. 
			
			

			 

			
			            (4) The initial Late Charge Rate shall be in effect
			until the earlier to occur of either (A) the date on which payment
			of the Overdue Amount and the amount of accrued Late Charge is made,
			or (B) the first Payment Date to occur after the scheduled date of
			payment for such Overdue Amount.  In the event that the Overdue
			Amount and the amount of the accrued Late Charge are not paid on or
			before such Payment Date, then the amount payable shall be the sum
			of the Overdue Amount and the amount of the accrued Late Charge,
			plus a Late Charge on such sum accruing at a new Late Charge Rate to
			be then determined in accordance with the principles of clause (3)
			of this subparagraph (a).  For so long as any Overdue Amount remains
			unpaid, the Late Charge Rate shall be re-determined in accordance
			with the principles of clause (3) of this subparagraph (a) on each
			Payment Date to occur thereafter, and shall be applied to the
			Overdue Amount and all amounts of the accrued Late Charge to the
			date on which payment of the Overdue Amount and all amounts of the
			accrued Late Charge is made.

			 

			
			            (b)
			Nothing in subparagraph (a) of this paragraph 11 shall be construed
			as permitting or implying that the Borrower may, without the written
			consent of FFB, modify, extend, alter or affect in any manner
			whatsoever (except as explicitly provided herein) the right of FFB
			to receive any and all payments on account of this Bond on the dates
			specified in this Bond.  

			 

			
			
			12.      
			 Final Due Date.

			
			 

			
			           
			Notwithstanding anything in this Bond to the contrary, all amounts
			outstanding under this Bond remaining unpaid as of the Final
			Maturity Date shall be due and payable on the Final Maturity Date.
			
			

			 

			
			
			13.           
			 Manner of Making Payments.

			
			 

			
			            (a) For
			so long as FFB is the Holder of this Bond and RUS is the bond
			servicing agent for FFB (as provided in the Bond Purchase
			Agreement), each payment under this Bond shall be paid  

	    
	
			BOND - page 6

	   
	

	
			RUS

	    
	
			
			in immediately
			available funds by electronic funds transfer to the account of the
			United States Treasury (for credit to the subaccount of RUS, as bond
			servicing agent for FFB) maintained at the Federal Reserve Bank of
			New York specified by RUS in a written notice to the Borrower, or to
			such other account as may be specified from time to time by RUS in a
			written notice to the Borrower.

			 

			
			            (b) In
			the event that FFB is the Holder of this Bond and RUS is not
			the bond servicing agent for FFB, each payment under this Bond, with
			the exception of the fee described in paragraph 9 of this Bond,
			shall be paid in immediately available funds by electronic funds
			transfer to the account of the United States Treasury (for credit to
			the subaccount of FFB) maintained at the Federal Reserve Bank of New
			York specified by FFB in a written notice to the Borrower, or to
			such other account as may be specified from time to time by FFB in a
			written notice to the Borrower.  In the event that FFB is the Holder
			of this Bond and RUS is not the bond servicing agent for FFB,
			each payment of the fee described in paragraph 9 of this Bond shall
			be paid in immediately available funds by electronic funds transfer
			to the account of the United States Treasury (for credit to the
			subaccount of RUS) maintained at the Federal Reserve Bank of New
			York specified from time to time by RUS in a written notice
			delivered by RUS to the Borrower.

			 

			
			            (c) In
			the event that FFB is not the Holder of this Bond, then each
			payment under this Bond, with the exception of the fee described in
			paragraph 9 of this Bond, shall be made in immediately available
			funds by electronic funds transfer to such account as shall be
			specified by the Holder in a written notice to the Borrower.  In the
			event that FFB is not the Holder of this Bond, each payment
			of the fee described in paragraph 9 of this Bond shall be made in
			the manner specified by FFB in the written notice delivered by FFB
			to the Borrower and RUS as provided in section 15.4.2 of the Bond
			Purchase Agreement.

			
			 

			
			
			14.           
			 Application of Payments.

			
			 

			
			            Each
			payment made on this Bond shall be applied, first, to the payment of
			Late Charges (if any) payable under paragraphs 11 and 18 of this
			Bond, then to the payment of premiums (if any) payable under
			paragraphs 16 and 17 of this Bond, then to the payment of unpaid
			accrued interest, then on account of outstanding principal, and then
			to the payment of the fee payable under paragraph 9 of this Bond.

			 

			
			15.            Maturity Extensions.

			
			 

			
			            (a)
			With respect to each Advance (1) for which the Borrower has selected
			a Maturity Date that will occur before the twentieth anniversary of
			the Requested Advance Date specified in the respective Advance
			Request, or (2) for which a Maturity Date that will occur before the
			twentieth anniversary of the Requested

	    
	
			BOND - page 7

	    
	

	
			RUS

	    
	
			
			Advance Date
			specified in the respective Advance Request has been determined as
			provided in subparagraph (b) of this paragraph 15 (each such
			Maturity Date being an "Interim Maturity Date"), the Borrower
			may, effective as of such Interim Maturity Date, elect to extend the
			maturity of all or any portion of the outstanding principal amount
			of the respective Advance to a new Maturity Date to be selected by
			the Borrower in the manner and subject to the limitations specified
			in this subparagraph (a) (each such election being a "Maturity
			Extension Election"; each such elective extension of the
			maturity of any Advance that has an Interim Maturity Date being a "Maturity
			Extension"; and the Interim Maturity Date that is in effect for
			an Advance immediately before any such elective Maturity Extension
			being, from and after such Maturity Extension, the "Maturity
			Extension Effective Date").   

			 

			
			            (1) Except under the circumstances described in
			clause (3) of this subparagraph (a), the Borrower shall deliver to
			FFB (with a copy to RUS) written notification of each Maturity
			Extension Election, in the form of notification attached to this
			Bond as Annex 1-A (each such notification being a "Maturity
			Extension Election Notice"), making reference to the "Advance
			Identifier" (as that term is defined in the Bond Purchase Agreement)
			that FFB assigned to such Advance (as provided in the Bond Purchase
			Agreement) and specifying, among other things, the following:  

			 

			
			            (A) the amount of the outstanding principal of the such
			Advance with respect to which the Borrower elects to extend the
			maturity; and

			 

			
			            (B) the new Maturity Date that the Borrower selects to
			be in effect for such principal amount after the respective Maturity
			Extension Effective Date, which date:  

			 

			
			            (i) may be either (I) a new Interim Maturity Date, or
			(II) the twentieth anniversary of the Requested Advance Date
			specified in the original Advance Request (if such twentieth
			anniversary date is a Payment Date) or the Payment Date immediately
			preceding such twentieth anniversary date (if such twentieth
			anniversary date is not a Payment Date); and

			 

			
			            (ii) in the event that the Borrower selects a new
			Interim Maturity Date as the new Maturity Date for any Advance, must
			meet the criteria for Maturity Dates prescribed in section
			7.3.1(a)(5) of the Bond Purchase Agreement (provided, 
			however, that, for purposes of selecting a new Maturity Date in
			connection with a Maturity Extension Election, each of the
			references to the "Requested Advance Date" for the respective
			Advance in  

	    
	
			BOND - page 8

	    
	

	
			RUS

	 
	
			
			section 7.3.1(a)(5)(D) of the Bond Purchase Agreement shall be
			deemed to be a reference to the "respective Maturity Extension
			Effective Date").

			 

			
			            (2) To be effective, a Maturity Extension Election
			Notice must be received by FFB on or before the third Business Day
			before the Interim Maturity Date in effect for the respective
			Advance immediately before such Maturity Extension.  

			 

			
			            (3) In the event that either of the circumstances
			described in subclause (A) or (B) of the next sentence occurs, then
			a Maturity Extension Election Notice (in the form of notice attached
			to this Bond as Annex 1-B), to be effective, must first be
			delivered to RUS for approval and be approved by RUS in writing, and
			such Maturity Extension Election Notice, together with written
			notification of RUS's approval thereof, must be received by FFB on
			or before the third Business Day before the Interim Maturity Date in
			effect for the respective Advance immediately before such Maturity
			Extension.  RUS approval of a Maturity Extension Election Notice
			will be required under either of the following circumstances:

			 

			
			            (A) (i) any payment of any amount owing under this Bond
			is not made by the Borrower when and as due; (ii) payment is made by
			RUS in accordance with the guarantee set forth at the end of this
			Bond; and (iii) RUS delivers notice to both the Borrower and FFB
			advising each of them that each Maturity Extension Election Notice
			delivered by the Borrower after the date of such notice shall
			require the approval of RUS; or

			 

			
			            (B) FFB at any time delivers written notice to both the
			Borrower and RUS advising each of them that each Maturity Extension
			Election Notice delivered by the Borrower after the date of such
			notice shall require the approval of RUS.

			 

			
			            (b)
			With respect to any Advance that has an Interim Maturity Date, in
			the event that FFB does not receive a Maturity Extension Election
			Notice (and, if required under subparagraph (a)(3) of this paragraph
			15, written notification of RUS's approval thereof) on or before the
			third Business Day before such Interim Maturity Date, then the
			maturity of such Advance shall be extended automatically in the
			manner and subject to the limitations specified in this subparagraph
			(b) (each such automatic extension of the maturity of any Advance
			that has an Interim Maturity Date also being a "Maturity
			Extension"; and the Interim Maturity Date that is in effect for
			an Advance immediately before any such automatic Maturity Extension
			also being, from and after such Maturity Extension, the "Maturity
			Extension Effective Date").  The new Maturity Date for such

	    
	
			BOND - page 9

	    
	

	
			RUS

	    
	
			
			Advance shall be
			the immediately following Payment Date.  The amount of principal
			that will have its maturity extended automatically shall be the
			entire outstanding principal amount of such Advance on such Maturity
			Extension Effective Date, less the amount of any payment of
			principal made on such Maturity Extension Effective Date.           
			
			

			 

			
			            (c) In
			the event that the maturity of any Advance that has an Interim
			Maturity Date is extended under either subparagraph (a) or (b) of
			this paragraph 15, then the basic interest rate for such Advance,
			from and after the respective Maturity Extension Effective Date,
			shall be the particular rate that is established by FFB, as of such
			Maturity Extension Effective Date, in accordance with the principles
			of paragraph 6(c) of this Bond.

			 

			
			(d) In the event that the maturity of any Advance that has an
			Interim Maturity Date is extended under either subparagraph (a) or
			(b) of this paragraph 15, then the fee for such Advance, from and
			after the respective Maturity Extension Effective Date, shall be the
			particular fee that is assessed by FFB, as of such Maturity
			Extension Effective Date, with the new Advance Period being the
			period from the Maturity Extension Effective Date through the new
			Maturity Date, in accordance with the principles of paragraphs 9(b)
			and (c) of this Bond.

			 

			
			            (e) In
			the event that (1) the maturity of any Advance that has an Interim
			Maturity Date is extended under either subparagraph (a) or (b) of
			this paragraph 15, and (2) the Maturity Date for such extended
			Advance is a date that will occur before the fifth
			anniversary of the respective Maturity Extension Effective Date,
			then the prepayment/refinancing privilege described in section 11.2
			of the Bond Purchase Agreement shall apply automatically to such
			Advance.

			 

			
			            (f) In
			the event that (1) the Borrower makes a Maturity Extension Election
			with respect to any Advance that has an Interim Maturity Date, and
			(2) the Borrower selects as the Maturity Date for such extended
			Advance a new Maturity Date that will occur on or after the
			fifth anniversary of the respective Maturity Extension Effective
			Date, then the Borrower must elect a prepayment/refinancing
			privilege for such extended Advance from between the options
			described in sections 11.2 and 11.3 of the Bond Purchase Agreement (provided,
			however, that each of the references to "the Requested
			Advance Date for such Advance" in  section 11.3 of the Bond Purchase
			Agreement shall be deemed to be a reference to "the respective
			Maturity Extension Effective Date").  The Maturity Extension
			Election Notice delivered by the Borrower in connection with each
			such Maturity Extension Election must also specify the particular
			prepayment/refinancing privilege that the Borrower elects for the
			respective extended Advance.  In the event that the Borrower elects
			for any such extended Advance a prepayment/refinancing privilege
			described in section 11.3 of the Bond Purchase Agreement, then the
			interest rate for such  

	    
	
			BOND - page 10

	    
	

	
			RUS

	    
	extended Advance, from and after the respective Maturity
			Extension Effective Date, shall include a price (expressed in terms
			of a basis point increment to the applicable basic interest rate)
			for the particular prepayment/refinancing privilege that the
			Borrower elects, which price shall be established by FFB, as of such
			Maturity Extension Effective Date, in accordance with the principles
			of paragraph 6(d) of this Bond. 
			
			 

			
			            (g) The
			maturity of each Advance may be extended more than once as provided
			in this paragraph 15, but upon the twentieth anniversary of the
			Requested Advance Date specified in the original Advance Request (if
			such twentieth anniversary date is a Payment Date) or upon the
			Payment Date immediately preceding such twentieth anniversary date
			(if such twentieth anniversary date is not a Payment Date), no
			further Maturity Extensions may occur.

			 

			
			16.  Prepayments.

			
			 

			
			            (a) The Borrower may elect to prepay all or any portion
			of the outstanding principal amount of any Advance made under this
			Bond, or to prepay this Bond in its entirety, in the manner, at the
			price, and subject to the limitations specified in this paragraph 16
			(each such election being a "Prepayment Election").

			 

			
			            (b) For
			each Prepayment Election in which the Borrower elects to prepay a
			particular amount of the outstanding principal of an Advance, the
			Borrower shall deliver to RUS written notification of the respective
			Prepayment Election, in the form of notification attached to this
			Bond as Annex 2-A (each such notification being a "Prepayment
			Election Notice"), making reference to the Advance Identifier
			that FFB assigned to the respective Advance (as provided in the Bond
			Purchase Agreement) and specifying, among other things, the
			following:  

			 

			
			            (1) the particular date on which the Borrower intends to
			make the prepayment on such Advance (such date being the "Intended
			Prepayment Date" for such Advance), which date:  

			 

			
			            (A) must be a Business Day; and
			 

			 

			
			            (B) for any Advance for which the Borrower has selected
			a fixed premium prepayment/refinancing privilege that includes a
			5-year period during which such Advance shall not be eligible
			for any prepayment or refinancing (such time period being a "No-Call
			Period"), may not be a date that will occur before the
			applicable "First Call Date" determined as provided in section
			11.3.2 of the Bond Purchase Agreement (such date being the "First
			Call Date"); and

			 

			
			            (2) the amount of principal of the respective Advance
			that the Borrower intends to prepay, which amount may be either:

	    
	
			BOND - page 11

	    
	

	
			RUS

	    
	
			
			            (A) the total outstanding principal amount of such
			Advance; or

			
			            (B) an amount less than the total outstanding principal
			amount of such Advance (subject to subparagraph (g) of this
			paragraph 16) (any such amount being a "Portion").

			
			            (c) For
			each Prepayment Election in which the Borrower elects to have a
			particular amount of funds applied by FFB toward the prepayment of
			the outstanding principal of an Advance, the Borrower shall deliver
			to RUS written notification of the respective Prepayment Election,
			in the form of notification attached to this Bond as Annex 2-B
			(each such notification also being a "Prepayment Election Notice"),
			making reference to the Advance Identifier that FFB assigned to the
			respective Advance (as provided in the Bond Purchase Agreement) and
			specifying, among other things, the following:  

			
			            (1) the particular date on which the Borrower intends to
			make the prepayment on such Advance (such date being the "Intended
			Prepayment Date" for such Advance), which date:  

			
			            (A) must be a Business Day; and
			 

			
			            (B) for any Advance for which the Borrower has selected
			a fixed premium prepayment/refinancing privilege that includes a
			5-year No-Call Period, may not be a date that will occur before the
			applicable First Call Date; and

			 

			
			            (2) the particular amount of funds that the Borrower
			elects to be applied by FFB toward a prepayment of the outstanding
			principal amount of such Advance.

			 

			
			            (d) To
			be effective, a Prepayment Election Notice must be approved by RUS
			in writing, and such Prepayment Election Notice, together with
			written notification of RUS's approval thereof, must be received by
			FFB on or before the fifth Business Day before the date specified
			therein as the Intended Prepayment Date for the respective Advance
			or Portion.

			
			            (e) The
			Borrower shall pay to FFB a price for the prepayment of any Advance,
			any Portion of any Advance, or this Bond in its entirety (such price
			being the "Prepayment Price" for such Advance or Portion or
			this Bond, as the case may be) determined as follows:

			
			            (1) in the event that the Borrower elects to prepay the
			entire outstanding principal amount of any Advance, then the
			Borrower shall pay to FFB a Prepayment Price for such Advance equal
			to the sum of:  

	    
	
			BOND - page 12

	

	
			RUS

	    
	
			
			            (A) the entire outstanding principal amount of such
			Advance on the Intended Prepayment Date;

			
			            (B) all unpaid interest (and Late Charges, if any)
			accrued on such Advance through the Intended Prepayment Date; and
			
			

			
			            (C) the amount of the premium or discount credit (if
			any) that is required under the particular prepayment/refinancing
			privilege that applies to such Advance;  

			
			            (2) in the event that the Borrower elects to prepay a
			Portion of any Advance, then the Borrower shall pay to FFB a
			Prepayment Price for such Portion that would equal such Portion's
			pro rata share of the Prepayment Price that would be required for a
			prepayment of the entire outstanding principal amount of such
			Advance (determined in accordance with the principles of clause (1)
			of this subparagraph (e)); and

			
			            (3) in the event that the Borrower elects to prepay this
			Bond in its entirety, then the Borrower shall pay to FFB an amount
			equal to the sum of the Prepayment Prices for all outstanding
			Advances (determined in accordance with the principles of clause (1)
			of this subparagraph (e)).   

			
			            (f)
			Payment of the Prepayment Price for any Advance, any Portion of any
			Advance, or this Bond in its entirety shall be due to FFB before
			3:00 p.m. (Washington, DC, time) on the Intended Prepayment Date for
			such Advance or Portion or this Bond, as the case may be.

			
			            (g)
			Each prepayment of a Portion shall, as to the principal amount of
			such Portion, be subject to a minimum amount equal to $100,000.00 of
			principal.  

			
			            (h) The
			Borrower may make more than one Prepayment Election with respect to
			an Advance, each such Prepayment Election being made with respect to
			a different Portion of such Advance, until such time as the entire
			principal amount of such Advance is repaid in full.  

			
			17.  Refinancings.

			
			            (a) The Borrower may elect to refinance the outstanding
			principal amount of any Advance (but not any Portion) in the manner,
			at the price, and subject to the limitations specified in this
			paragraph 17 (each such election being a "Refinancing Election").      
			
			

			
			            (b)
			Except under the circumstances described in subparagraph (d) of this
			paragraph 17, the Borrower shall deliver to FFB (with a copy to RUS)
			written notification of each  

	    
	
			BOND - page 13

	    
	

	
			RUS

	    
	
			
			Refinancing
			Election, in the form of notification attached to this Bond as 
			Annex 3-A (each such notification being a "Refinancing
			Election Notice"), making reference to the Advance Identifier
			that FFB assigned to the respective Advance (as provided in the Bond
			Purchase Agreement) and specifying, among other things, the
			following:  

			
			            (1) the particular date on which the Borrower intends to
			refinance the respective Advance (such date being the "Intended
			Refinancing Date" for the respective Advance), which date:

			
			            (A) must be a Payment Date; and

			
			            (B) for any Advance for which the Borrower has selected
			a prepayment/refinancing privilege that includes a 5-year No-Call
			Period, may not be a date that will occur before the applicable
			First Call Date;  

			
			            (2) the amount of the outstanding principal of the
			respective Advance that the Borrower elects to refinance (which may
			not be a Portion); and

			
			            (3) the Maturity Date that the Borrower selects to be in
			effect for such principal amount after such refinancing, which date
			may be:

			
			            (A) the Maturity Date that is in effect for such Advance
			immediately before such refinancing; or

			
			            (B) a new Maturity Date that the Borrower selects in
			connection with such Refinancing Election, provided that such new
			Maturity Date meets the criteria for Maturity Dates prescribed in
			section 7.3.1(a)(5) of the Bond Purchase Agreement (provided,
			however, that for purposes of selecting a new Maturity Date
			in connection with a Refinancing Election, each of the references to
			the "Requested Advance Date" for the respective Advance in section
			7.3.1(a)(5)(D) of the Bond Purchase Agreement shall be deemed to be
			a reference to the "respective Refinancing Effective Date").

			
			            (c) To
			be effective, a Refinancing Election Notice must be received by FFB
			on or before the fifth Business Day before the date specified
			therein as the Intended Refinancing Date.  

			
			            (d) In
			the event that either of the circumstances described in clause (1)
			or (2) of the next sentence shall have occurred, then a Refinancing
			Election Notice (in the form of notice attached to this Bond as 
			Annex 3-B), to be effective, must first be delivered to RUS for
			approval and be approved by RUS in writing, and such Refinancing
			Election Notice, together with written notification of RUS's
			approval thereof, must be received by FFB on or before the fifth
			Business Day before the date

	    
	
			BOND - page 14

	    
	

	
			RUS

	    
	
			
			specified therein
			to be the Intended Refinancing Date.  RUS approval of a Refinancing
			Election Notice will be required under either of the following
			circumstances:

			 

			
			            (1) (A) payment of any amount owing under this Bond is
			not made by the Borrower when and as due; (B) payment is made by RUS
			in accordance with the guarantee set forth at the end of this Bond;
			and (C) RUS delivers notice to both the Borrower and FFB advising
			each of them that each Refinancing Election Notice delivered by the
			Borrower after the date of such notice shall require the approval of
			RUS; or

			
			 
			 

			
			            (2) FFB at any time delivers written notice to both the
			Borrower and RUS advising each of them that each Refinancing
			Election Notice delivered by the Borrower after the date of such
			notice shall require the approval of RUS.

			 

			
			            (e) The
			Borrower shall pay to FFB a price for the refinancing of any Advance
			(such price being the "Refinancing Price" for such Advance)
			equal to the sum of:   

			 

			
			            (1) all unpaid interest (and Late Charges, if any)
			accrued on such Advance through the Intended Refinancing Date; and

			 

			
			            (2) the amount of the premium (if any) that is required
			under the particular prepayment/refinancing privilege that applies
			to such Advance.   

			 

			
			In the event that
			(A) the prepayment/refinancing privilege that applies to the
			particular Advance being refinanced is the privilege described in
			section 11.2 of the Bond Purchase Agreement, and (B) the Market
			Value Premium (or Discount) that is to be included in the
			Refinancing Price for such Advance is a discount on such Advance,
			then such discount shall be applied by FFB in the manner requested
			by the Borrower in a written notice delivered by the Borrower to FFB
			and approved by RUS in writing.

			 

			
			            (f)
			Payment of the Refinancing Price for any Advance shall be due to FFB
			before 3:00 p.m. (Washington, DC, time) on the Intended Refinancing
			Date for such Advance.

			 

			
			            (g) In
			the event that a Refinancing Election Notice (and, if required under
			subparagraph (d) of this paragraph 17, written notification of RUS's
			approval thereof) is received by FFB on or before the fifth Business
			Day before the Intended Refinancing Date specified therein, then the
			refinancing of the respective Advance shall become effective on such
			Intended Refinancing Date (in such event, the Intended Refinancing
			Date being the "Refinancing Effective Date").  In the event
			that a Refinancing Election Notice (and, if required under
			subparagraph (d) of this paragraph 17, written notification of RUS's
			approval thereof) is received by FFB after the fifth Business Day
			before the Intended  

	    
	
			BOND - page 15

	   
	

	
			RUS

	    
	
			
			Refinancing Date
			specified therein, then the refinancing of the respective Advance
			shall become effective on the fifth Business Day to occur after the
			day on which such Refinancing Election Notice (and, if required
			under subparagraph (d) of this paragraph 17, written notification of
			RUS's approval thereof) is received by FFB (in such event, the fifth
			Business Day to occur after the day on which such Refinancing
			Election Notice (and, if required under subparagraph (d) of this
			paragraph 17, written notification of RUS's approval thereof) is
			received by FFB being the "Refinancing Effective Date"),
			provided that the Borrower shall have paid to FFB, in addition to
			the Refinancing Price required under subparagraph (e) of this
			paragraph 17, the interest accrued from the Intended Refinancing
			Date through such Refinancing Effective Date.

			 

			
			            (h) In
			the event that the Borrower makes a Refinancing Election with
			respect to any Advance, the basic interest rate for such Advance,
			from and after the respective Refinancing Effective Date, shall be
			the particular rate that is established by FFB, as of such
			Refinancing Effective Date, in accordance with the principles of
			paragraph 6(c) of this Bond.

			 

			
			(i) In the event that the Borrower makes a Refinancing Election with
			respect to any Advance, then the fee for such Advance, from and
			after the respective Refinancing Effective Date, shall be the
			particular fee that is assessed by FFB, as of such Refinancing
			Effective Date, with the new Advance Period being the period from
			the Refinancing Effective Date through the new Maturity Date, in
			accordance with the principles of paragraphs 9(b) and (c) of this
			Bond.

			 

			
			            (j) In
			the event that (1) the Borrower makes a Refinancing Election with
			respect to any Advance, and (2) the Borrower selects as the Maturity
			Date for such refinanced Advance either (A) the Maturity Date that
			is in effect for such Advance immediately before such refinancing,
			and such Maturity Date will occur before the fifth
			anniversary of the respective Refinancing Effective Date, or (B) a
			new Maturity Date that will occur before the fifth
			anniversary of the respective Refinancing Effective Date, then the
			prepayment/refinancing privilege described in section 11.2 of the
			Bond Purchase Agreement shall apply automatically to such Advance.
			
			

			 

			
			            (k) In
			the event that (1) the Borrower makes a Refinancing Election with
			respect to any Advance, and (2) the Borrower selects as the Maturity
			Date for such refinanced Advance either (A) the Maturity Date that
			is in effect for such Advance immediately before such refinancing,
			and such Maturity Date will occur on or after the fifth
			anniversary of the respective Refinancing Effective Date, or (B) a
			new Maturity Date that will occur on or after the fifth
			anniversary of the respective Refinancing Effective Date, then the
			Borrower must elect a prepayment/refinancing privilege for such
			refinanced Advance from between the options described in sections
			11.2 and 11.3 of the  

	    
	
			BOND - page 16

	    
	

	
			RUS

	    
	
			
			Bond Purchase
			Agreement (provided, however, that each of the
			references to the "Requested Advance Date for such Advance" in
			section 11.3 of the Bond Purchase Agreement shall be deemed to be a
			reference to the "respective Refinancing Effective Date").  The
			Refinancing Election Notice delivered by the Borrower in connection
			with each such Refinancing Election must also specify the particular
			prepayment/refinancing privilege that the Borrower elects for the
			respective refinanced Advance.  In the event that the Borrower
			elects for any such refinanced Advance a prepayment/refinancing
			privilege described in section 11.3 of the Bond Purchase Agreement,
			then the interest rate for such refinanced Advance, from and after
			the respective Refinancing Effective Date, shall include a price
			(expressed in terms of a basis point increment to the applicable
			basic interest rate) for the particular prepayment/refinancing
			privilege that the Borrower elects, which increment shall be
			established by FFB, as of such Refinancing Effective Date, in
			accordance with the principles of paragraph 6(d) of this Bond.
			 

			 

			
			            (l) The
			Borrower may make more than one Refinancing Election with respect to
			any Advance.

			 

			
			
			18.            Rescission of Prepayment Elections and
			Refinancing Elections; Late Charges for Late Payments.
			  

			 

			
			            (a) The
			Borrower may rescind any Prepayment Election made in accordance with
			paragraph 16 of this Bond or any Refinancing Election made in
			accordance with paragraph 17 of this Bond, but only in accordance
			with this paragraph 18.   

			 

			
			            (b) The
			Borrower shall deliver to both FFB and RUS written notification of
			each rescission of a Prepayment Election or a Refinancing Election
			(each such notification being an "Election Rescission Notice")
			specifying the particular Advance for which the Borrower wishes to
			rescind such Prepayment Election or Refinancing Election, as the
			case may be, which specification must make reference to both:  

			 

			
			            (1) the particular Advance Identifier that FFB assigned
			to such Advance (as provided in the Bond Purchase Agreement); and

			 

			
			            (2) the RUS account number for such Advance. 
			 

			 

			
			The Election
			Rescission Notice may be delivered by facsimile transmission to FFB
			at (202) 622-0707 and to RUS at (202) 720-1401, or at such other
			facsimile number or numbers as either FFB or RUS may from time to
			time communicate to the Borrower.

			 

			
			            (c) To
			be effective, an Election Rescission Notice must be received by both
			FFB and RUS not later than 3:30 p.m. (Washington, DC, time) on the
			second Business Day before the Intended Prepayment Date or the
			Intended Refinancing Date, as the case may be.  

	    
	
			BOND - page 17

	   
	

	
			RUS

	    
	
			
			            (d) In
			the event that the Borrower (1) makes a Prepayment Election in
			accordance with paragraph 16 of this Bond or a Refinancing Election
			in accordance with paragraph 17 of this Bond; (2) does not rescind
			such Prepayment Election or Refinancing Election, as the case may
			be, in accordance with this paragraph 18; and (3) does not, before
			3:00 p.m. (Washington, DC, time) on the Intended Prepayment Date or
			Intended Refinancing Date, as the case may be, pay to FFB the
			Prepayment Price described in paragraph 16(e) of this Bond or
			Refinancing Price described in paragraph 17(e) of this Bond, as the
			case may be, then a Late Charge shall accrue on any such unpaid
			amount from the Intended Prepayment Date or Intended Refinancing
			Date, as the case may be, to the date on which payment is made,
			computed in accordance with the principles of paragraph 11 of this
			Bond.

			
			
			 19.           
			 Amendments to Bond.

			
			            To the
			extent not inconsistent with applicable law, this Bond, for so long
			as FFB or its agent is the holder thereof, shall be subject to
			modification by such amendments, extensions, and renewals as may be
			agreed upon from time to time by FFB and the Borrower, with the
			approval of RUS.

			
			
			20.           
			 Certain Waivers.

			
			            The
			Borrower hereby waives any requirement for presentment, protest, or
			other demand or notice with respect to this Bond.

			
			
			21.      
			 Bond Effective Until Paid.

			
			            This
			Bond shall continue in full force and effect until all principal
			outstanding hereunder, all interest accrued hereunder, all premiums
			(if any) payable under paragraphs 16 and 17 of this Bond, all Late
			Charges (if any) payable under paragraphs 11 and 18 of this Bond,
			and all fees (if any) payable under paragraph 9 of this Bond have
			been paid in full.

			
			22.       RUS Guarantee of Bond.

			
			            Upon execution of the guarantee set forth at the end of
			this Bond (the "RUS Guarantee"), the payment by the Borrower
			of all amounts due and payable under this Bond, when and as due,
			shall be guaranteed by the United States of America, acting through
			RUS, pursuant to the Rural Electrification Act of 1936, as amended
			(codified at 7 U.S.C.  901 et seq.).  In
			consideration of the RUS Guarantee, the Borrower promises to RUS to
			make all payments due under this Bond when and as due.  

			
			23.       Pledge Agreement.

			
			            This
			Bond is one of several Bonds referred to in the Pledge Agreement,
			wherein the Borrower made provision for the pledge and grant of a
			security interest in, under certain circumstances

	   
	
			BOND - page 18

	    
	

	
			RUS

	    
	
			
			described therein,
			certain property of the Borrower, described therein, to secure the
			payment of and performance of certain obligations owed to RUS, as
			set forth in the Pledge Agreement.

			 

			
			24.  Guarantee Payments; Reimbursement.

			
			 

			
			            If RUS
			makes any payment, pursuant to the RUS Guarantee, of any amount due
			and payable under this Bond, when and as due, each and every such
			payment so made shall be deemed to be a payment hereunder; 
			provided, however, that no payment by RUS pursuant to the
			RUS Guarantee shall be considered a payment for purposes of
			determining the existence of a failure by the Borrower to perform
			its obligation to RUS to make all payments under this Bond when and
			as due.  RUS shall have any rights by way of subrogation, agreement
			or otherwise which arise as a result of such payment pursuant to the
			RUS Guarantee.

			 

			
			25.            Default and Enforcement.

			
			 

			
			            In case of a default by the Borrower under this Bond or
			the occurrence of an event of default under the Bond Guarantee
			Agreement, then, in consideration of the obligation of RUS under the
			RUS Guarantee, in that event, to make payments to FFB as provided in
			this Bond, RUS, in its own name, shall have all rights, powers,
			privileges, and remedies of the holder of this Bond, in accordance
			with the terms of this Bond, the Bond Guarantee Agreement, and the
			Pledge Agreement, including, without limitation, the right to
			enforce or collect all or any part of the obligation of the Borrower
			under this Bond or arising as a result of the RUS Guarantee, to file
			proofs of claim or any other document in any bankruptcy, insolvency,
			or other judicial proceeding, and to vote such proofs of claim.

			 

			
			26.            Acceleration.

			
			 

			
			            The
			entire unpaid principal amount of this Bond, and all interest
			thereon, may be declared, and upon such declaration shall become,
			due and payable to RUS, under the circumstances described, and in
			the manner and with the effect provided, in the Bond Guarantee
			Agreement.

	    
	
			BOND - page 19

	   
	

	
			RUS

	    
	
			
			            IN WITNESS WHEREOF, the Borrower has caused this
			Bond to be signed in its corporate name and its corporate seal to be
			hereunder affixed and attested by its officers thereunto duly
			authorized, all as of the day and year first above written.

	    

 

 

 

		
			
			
			NATIONAL RURAL UTILITIES

			COOPERATIVE FINANCE CORPORATION

			
			(the "Borrower")

	By:	 
	 	 
	Signature:	/s/ Sheldon C. Petersen                     
			
	 	 
	Print Name:	Sheldon C. Petersen
	 	 
	Title:	Governor and
	 	Chief Executive Officer

 

 

       
(SEAL)

		
			
			ATTEST:

	 	 
	 	 
	Signature:	/s/ John J. List                              
			
	 	 
	Print Name:	John J. List
	 	 
	Title:	Assistant Secretary-Treasurer
	 	 

 

                                        
 

		
			BOND - page 20

		
			

	
			RUS

	
			    
	
			
			 

			 

			 

			 

			ANNEX 1-A

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			 

			 

			 

			
			FORM

			
			

			
			OF

			
			

			
			MATURITY EXTENSION ELECTION NOTICE

			 

			 

			 

			 

	
			

	
			RUS

	
			    
	
			MATURITY EXTENSION ELECTION NOTICE

			
			****************************************************************

			
			PART 1 OF THIS FORM HAS BEEN COMPLETED BY RUS. THE BORROWER
			SHOULD COMPLETE PART 2 OF THIS FORM ONLY FOR THOSE PARTICULAR
			ADVANCES IDENTIFIED IN PART 1 OF THIS FORM WITH RESPECT TO WHICH THE
			BORROWER ELECTS TO HAVE THE MATURITY EXTENDED TO A NEW MATURITY DATE
			OTHER THAN THE IMMEDIATELY FOLLOWING QUARTERLY PAYMENT DATE.

			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER:  

			
			                                                        Chief 

			                                                        Policy
			Analysis and Loan Management Staff

			                                                        Telephone:
			(202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO FFB
			AT THE FOLLOWING ADDRESS:

			
			                                                        Manager
			

			                                                        Federal
			Financing Bank 

			                                                        Main
			Treasury Building

			                                                        1500
			Pennsylvania Avenue, NW 

			                                                        Washington,
			DC 20220

			
			                                                        Telephone:
			(202) 622-2470

			                                                        Facsimile:
			(202) 622-0707

			
			DELIVER A COPY OF THIS FORM TO RUS AT THE ADDRESS
			OF THE CONTACT OFFICE INDICATED BELOW:

			

			
			                                                        Chief 

			                                                        Policy
			Analysis and Loan Management Staff

			                                                        Rural
			Utilities Service

			                                                        U.S.
			Department of Agriculture

			                                                        Mail Stop
			1560

			                                                        1400
			Independence Avenue, SW

			                                                        Washington,
			DC 20250-1560

			                                                        Reference:
			Section 313A Loan Guarantee  

			
			                                                        Telephone:
			(202) 720-0424

			                                                        Facsimile:
			(202) 690-0717

			
			THE BORROWER SHOULD NOT COMPLETE THIS FORM OR
			DELIVER IT TO FFB IF THE BORROWER DESIRES TO HAVE THE MATURITY OF
			ALL OF THE ADVANCES IDENTIFIED IN PART 1 OF THIS FORM EXTENDED
			AUTOMATICALLY TO THE IMMEDIATELY FOLLOWING QUARTERLY PAYMENT DATE.

			IF THE BORROWER DOES NOT RETURN THIS FORM TO FFB, THE
			MATURITY OF ALL OF THE ADVANCES IDENTIFIED IN PART 1 OF THIS FORM
			WILL BE EXTENDED AUTOMATICALLY TO THE IMMEDIATELY FOLLOWING
			QUARTERLY PAYMENT DATE.

			
			 

			
			
			*****************************************************************

	
			   
	
			MATURITY EXTENSION ELECTION NOTICE - page
			1

	
			

	
			RUS

	
			    
	
			
			
			MATURITY EXTENSION ELECTION NOTICE

			Manager

			Federal Financing Bank

			          Reference is made to the following-described Future
			Advance Bond (the "Bond") payable to the Federal Financing Bank ("FFB"),
			which is guaranteed by the Rural Utilities Service ("RUS"):

			 

			                    Name of Borrower (the "Borrower"):
			 

			                    National Rural Utilities Cooperative
			Finance Corporation  

			                    FFB Bond Identifier: _____________________

			                    RUS Bond Number: _____________________

			
			Part 1 (To be completed by RUS):

			
			          Each of the advances of funds ("Advances") identified
			in this Part 1 will mature on _______________ (the "Maturity Date").

			
			           FFB              
			     RUS           ORIGINAL
			   ORIGINAL   OUTSTANDING 

			    ADVANCE         ACCOUNT    
			ADVANCE    ADVANCE        PRINCIPAL 

			  IDENTIFIER        
			NUMBER         
			DATE          AMOUNT         
			AMOUNT
			
			

			   
			___________
			
			        _______
			
			          _________   $___________    $___________
			 

			
			
			
			  ___________
			
			        _______
			
			          _________   $___________    $___________
			 

			
			
			
			  ___________
			
			        _______
			
			          _________   $___________    $___________
			 

			
			
			
			  ___________
			
			        _______
			
			          _________   $___________    $___________
			 

			
	
			     
	
			MATURITY EXTENSION ELECTION NOTICE - page 2

	
			
 

	
			RUS

	
			    
	
			
			Part 2:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election that the maturity of each of the Advances identified in
			this Part 2 be extended as follows:
 
	
			     

		 	 	 	 	AMOUNT OF	 	 	 	TYPE OF	 	 	 	 	 
	FFB	 	OPTIONAL	 	PRINCIPAL	 	NEW	 	PREPAYMENT	 	5 YEAR	 	 	 
	ADVANCE	 	PRINCIPAL	 	TO BE  	 	MATURITY	 	REFINANCING	 	NO-CALL	 	PREMIUM	 
	IDENTIFIER1	 	PAYMENT2	 	EXTENDED3	 	DATE4	 	PRIVILEGE5	 	PERIOD 6	 	OPTION7	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 

		
			_______________    
	
			1 Complete 1 line in Part 2 for each Advance
			identified in Part 1 with respect to which the Borrower elects to
			have the maturity extended to a new Maturity Date other than
			the next Payment Date. Insert the FFB Advance Identifier that FFB
			assigned to the respective Advance for each Advance identified in
			Part 1 with respect to which the Borrower elects to have the
			maturity so extended.

			

			2  The Borrower has the option of making a payment of principal on
			the Maturity Date without any premium being charged. For each
			Advance, insert the amount of any such optional principal payment
			that will be paid on the Maturity Date.

			

			3  For each Advance, insert the amount of principal for which the
			maturity is to be extended. That amount must equal the difference
			between the outstanding principal amount for the respective
			Advance, as specified in Part 1, and the optional principal payment
			(if any) for such Advance inserted by the Borrower in Part 2.

			

			4  For each Advance, insert the particular calendar date that the
			Borrower selects to be the new Maturity Date to be in effect
			for the respective Advance after the Maturity Extension, which new
			Maturity Date must meet all the criteria for Maturity Dates
			specified in section 7.3.1(a)(5) of the Bond Purchase Agreement
			referred to in the Bond.

			5  Elect 1 of the following 2 types of prepayment/refinancing
			privilege for an Advance only if the new Maturity Date
			selected for such Advance will occur on or after the fifth
			anniversary of the effective date of this Maturity Extension. The 2
			types of prepayment/refinancing privilege are: the market value
			premium (or discount) privilege ("M") and a fixed premium privilege
			("F"). Insert in the box the letter-symbol for the particular type
			of prepayment/refinancing privilege elected.

			6  Elect 1 of the following 2 no-call period options for an Advance
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 2 no-call
			period options are: yes ("Y"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege include a 5-year
			period during which the Advance will not be eligible for prepayment
			or refinancing, and no ("N"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege not include
			any such a 5-year no-call period. Insert in the box the
			letter-symbol for the particular no-call period option elected.
			 

			7  Select 1 of the following 3 premium options for an Advance 
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 3 premium
			options are: a 10% premium declining over 10 years ("X"), a 5%
			premium declining over 5 years ("V"), and par (no premium) ("P").
			Insert in the box the letter-symbol for the particular premium
			option selected.

			 
	
			     
	
			MATURITY EXTENSION ELECTION NOTICE - page 3

	
			
 

	
			RUS

	
			    
	
			          The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Maturity Extension Election
			Notice on behalf of the Borrower is valid and in full force and
			effect on the date hereof.

	 

		
			
			NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			MATURITY EXTENSION ELECTION NOTICE - page 4

	
			
 

	
			RUS

	
			    
	
			 

			 

			 

			 

			 

			
			ANNEX 1-B

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			
			FORM

			
			

			
			OF

			
			

			
			MATURITY EXTENSION ELECTION NOTICE

			

			(RUS APPROVAL REQUIRED)

			
			 

			 

			 

			 

			 

	
			
 

	
			RUS

	
			   
	
			MATURITY EXTENSION ELECTION NOTICE

			(RUS APPROVAL REQUIRED)

			****************************************************************

			
			PART 1 OF THIS FORM HAS BEEN COMPLETED BY RUS. THE BORROWER
			SHOULD COMPLETE PART 2 OF THIS FORM ONLY FOR THOSE PARTICULAR
			ADVANCES IDENTIFIED IN PART 1 OF THIS FORM WITH RESPECT TO WHICH THE
			BORROWER ELECTS TO HAVE THE MATURITY EXTENDED TO A NEW MATURITY DATE
			OTHER THAN THE IMMEDIATELY FOLLOWING QUARTERLY PAYMENT DATE.

			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER:  

			
			Chief 

			Policy Analysis and Loan Management Staff

			Telephone: (202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO RUS
			AT THE ADDRESS OF THE CONTACT OFFICE INDICATED BELOW:

			
			Chief
			
			
			
			

			Policy Analysis and Loan Management Staff

			Rural Utilities Service

			U.S. Department of Agriculture

			Mail Stop 1560

			1400 Independence Avenue, SW

			Washington, DC 20250-1560

			Reference: Section 313A Loan Guarantee
			 

			Telephone: (202) 720-0424

			Facsimile: (202) 690-0717

			
			THE BORROWER SHOULD NOT COMPLETE THIS FORM OR
			DELIVER IT TO RUS IF THE BORROWER DESIRES TO HAVE THE MATURITY OF
			ALL OF THE ADVANCES IDENTIFIED IN PART 1 OF THIS FORM EXTENDED
			AUTOMATICALLY TO THE IMMEDIATELY FOLLOWING QUARTERLY PAYMENT DATE.

			IF THE BORROWER DOES NOT RETURN THIS FORM TO RUS, THE
			MATURITY OF ALL OF THE ADVANCES IDENTIFIED IN PART 1 OF THIS FORM
			WILL BE EXTENDED AUTOMATICALLY TO THE IMMEDIATELY FOLLOWING
			QUARTERLY PAYMENT DATE.

			
			*****************************************************************

			
			
	
			    
	
			MATURITY EXTENSION ELECTION NOTICE (RUS APPROVAL
			REQ'D) - page 1

	
			
 

	
			RUS

	
			    
	
			
			MATURITY EXTENSION ELECTION NOTICE

			
			Manager

			Federal Financing Bank

			          Reference is made to the following-described Future Advance Bond
			(the "Bond") payable to the Federal Financing Bank ("FFB"), which is
			guaranteed by the Rural Utilities Service ("RUS"):

			          Name of Borrower (the "Borrower"):
			 

			          National Rural Utilities Cooperative Finance Corporation
			
			

			          FFB Bond Identifier: _____________________

			          RUS Bond Number: _____________________

			Part 1 (To be completed by RUS):

			
			          Each of the advances of funds ("Advances") identified in this
			Part 1 will mature on _______________ (the "Maturity Date").

			

		 	 	 	 	 	 	 	 	 	 
	FFB	 	RUS	 	ORIGINAL	 	ORIGINAL	 	OUTSTANDING	 
	ADVANCE	 	ACCOUNT	 	ADVANCE  	 	ADVANCE	 	PRICIPAL	 
	IDENTIFIER	 	NUMBER	 	DATE	 	AMOUNT	 	AMOUNT	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	
			   
			
			

		
			
			Part 2:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election that the maturity of each of the Advances identified in
			this Part 2 be extended as follows:

			
	
			    
	
			MATURITY EXTENSION ELECTION NOTICE (RUS APPROVAL
			REQ'D) - page 2

	
			
 

	
			RUS

		 	 	 	 	AMOUNT OF	 	 	 	TYPE OF	 	 	 	 	 
	FFB	 	OPTIONAL	 	PRINCIPAL	 	NEW	 	PREPAYMENT/	 	5-YEAR	 	 	 
	ADVANCE	 	PRINCIPAL	 	TO BE  	 	MATURITY	 	REFINANCING	 	NO-CALL	 	PREMIUM	 
	IDENTIFIER1	 	PAYMENT2	 	EXTENDED3	 	DATE4	 	PRIVILEGE5	 	PERIOD 6	 	OPTION7	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 

		
			____________________   
			
			
	
			1  Complete 1 line in Part 2 for each Advance
			identified in Part 1 with respect to which the Borrower elects to
			have the maturity extended to a new Maturity Date other than
			the next Payment Date. Insert the FFB Advance Identifier that FFB
			assigned to the respective Advance for each Advance identified in
			Part 1 with respect to which the Borrower elects to have the
			maturity so extended. 

			

			2  The Borrower has the option of making a payment of principal on
			the Maturity Date without any premium being charged. For each
			Advance, insert the amount of any such optional principal payment
			that will be paid on the Maturity Date.

			

			3  For each Advance, insert the amount of principal for which the
			maturity is to be extended. That amount must equal the difference
			between the outstanding principal amount for the respective
			Advance, as specified in Part 1, and the optional principal payment
			(if any) for such Advance inserted by the Borrower in Part 2.

			

			4  For each Advance, insert the particular calendar date that the
			Borrower selects to be the new Maturity Date" to be in effect
			for the respective Advance after the Maturity Extension, which new
			Maturity Date must meet all the criteria for Maturity Dates
			specified in section 7.3.1(a)(5) of the Bond Purchase Agreement
			referred to in the Bond.

			

			5  Elect 1 of the following 2 types of prepayment/refinancing
			privilege for an Advance only if the new Maturity Date
			selected for such Advance will occur on or after the fifth
			anniversary of the effective date of this Maturity Extension. The 2
			types of prepayment/refinancing privilege are: the market value
			premium (or discount) privilege ("M") and a fixed premium privilege
			("F"). Insert in the box the letter-symbol for the particular type
			of prepayment/refinancing privilege elected.

			

			6  Elect 1 of the following 2 no-call period options for an Advance
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 2 no-call
			period options are: yes ("Y"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege include a 5-year
			period during which the Advance will not be eligible for prepayment
			or refinancing, and no ("N"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege not include
			any such a 5-year no-call period. Insert in the box the
			letter-symbol for the particular no-call period option elected. 

			

			7  Select 1 of the following 3 premium options for an Advance 
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 3 premium
			options are: a 10% premium declining over 10 years ("X"), a 5%
			premium declining over 5 years ("V"), and par (no premium) ("P").
			Insert in the box the letter-symbol for the particular premium
			option selected.

			
			
	
			    
	
			MATURITY EXTENSION ELECTION NOTICE (RUS APPROVAL
			REQ'D) - page 3

	
			
 

	
			RUS

	
			 
	
			          The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Maturity Extension Election
			Notice on behalf of the Borrower is valid and in full force and
			effect on the date hereof.

			

	 

		
			
			NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			
			
			NOTICE OF RUS APPROVAL OF

			MATURITY EXTENSION ELECTION NOTICE 

	
			     
	
			
			           
			Notice is hereby given to FFB that the preceding Maturity Extension
			Election Notice made by the Borrower identified therein has been
			approved by RUS for purposes of the Bond identified therein.

	 

		
			ADMINISTRATOR of the

			RURAL UTILITIES SERVICE,

			acting through his or her

			duly authorized designee
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			MATURITY EXTENSION ELECTION NOTICE (RUS APPROVAL
			REQ'D) - page 4

	
			
 

	
			RUS

	
			    
	
			 

			 

			 

			 

			 

			
			ANNEX 2-A

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			
			FORM

			
			

			
			OF

			
			

			
			PREPAYMENT ELECTION NOTICE

			

			SPECIFIED PRINCIPAL AMOUNT(S)

			

			(RUS APPROVAL REQUIRED)

			
			 

			 

			 

			 

			
	
			
 

	
			RUS

	
			    
	
			PREPAYMENT ELECTION NOTICE

			SPECIFIED PRINCIPAL AMOUNT (S)

			(RUS APPROVAL REQUIRED)

			****************************************************************

			
			
			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER: 

			
			                                                   Chief
			

			                                                   Policy Analysis and Loan Management Staff

			                                                   Telephone: (202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO RUS
			AT THE ADDRESS OF THE CONTACT OFFICE INDICATED BELOW:

			
			                                                   Chief
			

			                                                   Policy Analysis and Loan Management Staff

			                                                   Rural Utilities Service

			                                                   U.S. Department of Agriculture

			                                                   Mail Stop 1560

			                                                   1400 Independence Avenue, SW

			                                                   Washington, DC 20250-1560

			                                                   Reference: Section 313A Loan Guarantee
			 

			                                                   Telephone: (202) 720-0424

			                                                   Facsimile: (202) 690-0717

			
			

			
			****************************************************************

			PREPAYMENT ELECTION NOTICE

			SPECIFIED PRINCIPAL AMOUNT(S)

			
			Manager

			Federal Financing Bank

			          Reference is made to the following-described Future Advance Bond
			(the "Bond") payable to the Federal Financing Bank ("FFB"), which is
			guaranteed by the Rural Utilities Service ("RUS"):

			          Name of Borrower (the "Borrower"):
			 

			          National Rural Utilities Cooperative Finance Corporation

					
			
	
			    
	
			PREPAYMENT ELECTION NOTICE - SP PRN (RUS APPROVAL
			REQ'D) - page 1

	
			
 

	
			RUS

	
			    
	
			          FFB Bond Identifier: _____________________1

			
			Part 1:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election to prepay all or a portion of the outstanding principal
			amount of the advances of funds ("Advances") identified in this Part
			1:

			
	
			      

		 	 	 	 	 	 	 	 	 	 
	FFB	 	RUS	 	ORIGINAL	 	ORIGINAL	 	OUTSTANDING	 
	ADVANCE	 	ACCOUNT	 	ADVANCE	 	ADVANCE	 	PRINCIPAL	 
	IDENTIFIER2	 	NUMBER3	 	DATE4	 	AMOUNT5	 	AMOUNT6	 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	
			   
			
			

		
			

			

			
			Part 2:

			
			          The Borrower intends to prepay all or a portion of the
			outstanding principal amount of each of the Advances identified in
			Part 1 on the following date (such date being the "Intended
			Prepayment Date"):

			____________________________________7

			
			
			1   Insert the FFB Bond Identifier that FFB assigned to the Bond (as
			provided in the Bond Purchase Agreement referred to in the Bond).

			2   Complete 1 line in Part 1 for each Advance that the Borrower
			intends to prepay in whole or in part. For each Advance, insert the
			FFB Advance Identifier for the respective Advance as specified in
			the most recent billing notice delivered by RUS to the Borrower.

			3   For each Advance, insert the RUS Account Number for the
			respective Advance as specified in the most recent billing notice
			delivered by RUS to the Borrower.

			4   For each Advance, insert the date on which FFB made the
			respective Advance to the Borrower.

			5   For each Advance, insert the original principal amount of the
			respective Advance that FFB made to the Borrower.

			6   Insert the outstanding principal amount of each Advance specified
			in Part 1 as of the day before the date on which the Borrower
			intends to make a prepayment on the respective Advances.

			
			7    
			Insert the particular calendar date that the Borrower
			selects to be the date on which the Borrower intends to prepay the
			Advances specified in Part 1, which date must meet the criteria for
			Intended Prepayment Date prescribed in paragraph 16(b)(1) of the
			Bond.

			 
	
			    
	
			PREPAYMENT ELECTION NOTICE - SP PRN (RUS APPROVAL
			REQ'D) - page 2

	
			
 

	
			RUS

	
			    
	
			
			Part 3:

			
			          For each of the Advances identified in Part 1, the respective
			amount of principal that the Borrower intends to prepay on the
			Intended Prepayment Date is as follows:

			

		FFB	 	 	 	AMOUNT OF	 
	ADVANCE	 	 	 	PRINCIPAL TO	 
	IDENTIFIER8	 	 	 	BE PREPAID9	 
	 	 	 	 	 	 
	
			
 

				 	 	 	
			
				$

				 
	 	 	 	 	 	 
	
			
 

				 	 	 	
			
				$

				 
	 	 	 	 	 	 
	
			
 

				 	 	 	
			
				$

				 

		
			   
	
			          The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Prepayment Election Notice
			on behalf of the Borrower is valid and in full force and effect on
			the date hereof.  
 

	 

		
			NATIONAL RURAL UTILITIES COOPERATIVE

			FINANCE CORPORATION,

			(THE "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			____________________
	
			
			8   Complete 1 line in Part 3 for each Advance identified in Part 1.

			

			9   For each Advance, insert the amount of principal that
			will be prepaid on the Intended Prepayment Date.
	
			    
	
			PREPAYMENT ELECTION NOTICE - SP PRN (RUS APPROVAL
			REQ'D) - page 3

	
			
 

	
			RUS

	
			    
	
			NOTICE OF RUS APPROVAL OF

			PREPAYMENT ELECTION NOTICE

			
			          Notice is hereby given to FFB that the preceding Prepayment
			Election Notice made by the Borrower identified therein has been
			approved by RUS for purposes of the Bond identified therein.

			

	 

		
			ADMINISTRATOR of the 

			RURAL UTILITIES SERVICES,

			acting through his or her

			duly authorized designee
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			PREPAYMENT ELECTION NOTICE - SP PRN (RUS APPROVAL
			REQ'D) - page 4

	
			

	
			RUS

	
			    
	
			 

			 

			 

			 

			 

			
			ANNEX 2-B

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			 

			
			FORM

			
			

			
			OF

			
			

			
			PREPAYMENT ELECTION NOTICE

			

			FIXED SUM TO BE APPLIED

			

			(RUS APPROVAL REQUIRED)

			
			 

			 

			 

			 

			 

	
			

	
			RUS

	
			     
	
			PREPAYMENT ELECTION NOTICE

			FIXED SUM TO BE APPLIED

			(RUS APPROVAL REQUIRED)

			****************************************************************

			 

			
			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER: 

			
			                                                           Chief
			

			                                                           Policy Analysis and Loan Management Staff

			                                                           Telephone: (202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO RUS
			AT THE ADDRESS OF THE CONTACT OFFICE INDICATED BELOW:

			
			                                                           Chief

			                                                           Policy Analysis and Loan Management Staff

			                                                           Rural Utilities Service

			                                                           U.S. Department of Agriculture

			                                                           Mail Stop 1560

			                                                           1400 Independence Avenue, SW

			                                                           Washington, DC 20250-1560

			                                                           Reference: Section 313A Loan Guarantee
			 

			                                                           Telephone: (202) 720-0424

			                                                           Facsimile: (202) 690-0717

			
			*****************************************************************

			

			PREPAYMENT ELECTION NOTICE

			FIXED SUM TO BE APPLIED

			
			Manager

			Federal Financing Bank

			 

			          Reference is made to the following-described Future Advance Bond
			(the "Bond") payable to the Federal Financing Bank ("FFB"), which is
			guaranteed by the Rural Utilities Service ("RUS"):

			 

			          Name of Borrower (the "Borrower"):
			 

			          National Rural Utilities Cooperative Finance Corporation

			
			
	
			    
	
			PREPAYMENT ELECTION NOTICE - FX SUM (RUS APPROVAL
			REQ'D) - page 1

	
			

	
			RUS

	
			    
	
			          FFB Bond Identifier: _____________________1

			
			
			Part 1:

			
			Notice is hereby given to FFB (and RUS) of the Borrower's
			election to prepay all or a portion of the outstanding principal
			amount of the advances of funds ("Advances") identified in this Part
			1:

			
	
			    

		 	 	 	 	 	 	 	 	 	 
	FFB	 	RUS	 	ORIGINAL	 	ORIGINAL	 	OUTSTANDING	 
	ADVANCE	 	ACCOUNT	 	ADVANCE	 	ADVANCE	 	PRINCIPAL	 
	IDENTIFIER2	 	NUMBER3	 	DATE4	 	AMOUNT5	 	AMOUNT6	 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 

		
			     
	
			
			Part 2:

			
			          The Borrower intends to prepay all or a portion of the
			outstanding principal amount of the Advances identified in Part 1 on
			the following date (such date being the "Intended Prepayment Date"):

			____________________________________7

							
						
					
				
			
			
			______________________________

			1  Insert the FFB Bond Identifier that FFB assigned to the Bond (as
			provided in the Bond Purchase Agreement referred to in the Bond).

			2  Complete 1 line in Part 1 for each Advance that the Borrower
			intends to prepay in whole or in part. For each Advance, insert the
			FFB Advance Identifier for the respective Advance as specified in
			the most recent billing notice delivered by RUS to the Borrower.

			3  For each Advance, insert the RUS Account Number for the
			respective Advance as specified in the most recent billing notice
			delivered by RUS to the Borrower.

			4  For each Advance, insert the date on which FFB made the
			respective Advance to the Borrower.

			5  For each Advance, insert the original principal amount of the
			respective Advance that FFB made to the Borrower.

			6  Insert the outstanding principal amount of each Advance specified
			in Part 1 as of the day before the date on which the Borrower
			intends to make a prepayment on the respective Advances.

			
			7   
			Insert the particular calendar date that the Borrower
			selects to be the date on which the Borrower intends to prepay the
			Advances specified in Part 1, which date must meet the criteria for
			Intended Prepayment Date prescribed in paragraph 16(b)(1) of the
			Bond.

			
	
			  
	
			PREPAYMENT ELECTION NOTICE - FX SUM (RUS APPROVAL
			REQ'D) - page 2

	
			

	
			RUS

	
			    
	
			
			Part 3:

			
			The Borrower elects to have the following amount of funds applied
			by FFB toward a prepayment of the outstanding principal amount of
			the Advances identified in Part 1, in the order in which they appear
			in Part 1:

			____________________________________8

							
						
					
				
			
			The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Prepayment Election Notice
			on behalf of the Borrower is valid and in full force and effect on
			the date hereof.

			

	 

		
			NATIONAL RURAL UTILITIES COOPERATIVE

			FINANCE CORPORATION

			(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			__________________________________

			     8  Insert the particular amount of funds that the Borrower
			elects to be applied by FFB toward a prepayment of the outstanding
			principal amount of the Advances identified in Part 1, in the order
			in which they appear in Part 1.
	
			    
	
			PREPAYMENT ELECTION NOTICE - FX SUM (RUS APPROVAL
			REQ'D) - page 3

	
			
 

	
			RUS

	
			    
	
			NOTICE OF RUS APPROVAL OF

			PREPAYMENT ELECTION NOTICE

			
			          Notice is hereby given to FFB that the preceding Prepayment
			Election Notice made by the Borrower identified therein has been
			approved by RUS for purposes of the Bond identified therein.

			

	 

		
			ADMINISTRATOR of the

			RURAL UTILITIES SERVICE,

			acting through his or her 

			duly authorized designee
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			PREPAYMENT ELECTION NOTICE - FX SUM (RUS APPROVAL
			REQ'D) - page 4

	
			
 

	
			RUS

	
			    
	
			 

			 

			 

			 

			 

			
			ANNEX 3-A

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			 

			
			FORM

			
			

			
			OF

			
			

			
			REFINANCING ELECTION NOTICE

			
			 

			 

			 

			 

			 

	
			
 

	
			RUS

	
			    
	
			REFINANCING ELECTION NOTICE

			****************************************************************

			
			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER: 

			
			                                                        Chief 

			                                                        Policy Analysis and Loan Management Staff

			                                                        Telephone: (202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO FFB
			AT THE FOLLOWING ADDRESS:

			
			                                                        Manager
			

			                                                        Federal Financing Bank
			

			                                                        Main Treasury Building

			                                                        1500 Pennsylvania Avenue, NW
			

			                                                        Washington, DC 20220

			                                                        Telephone: (202) 622-2470

			                                                        Facsimile: (202) 622-0707

			
			DELIVER A COPY OF THIS FORM TO RUS AT THE ADDRESS
			OF THE CONTACT OFFICE INDICATED BELOW:

			
			                                                        Chief 

			                                                        Policy Analysis and Loan Management Staff

			                                                        Rural Utilities Service

			                                                        U.S. Department of Agriculture

			                                                        Mail Stop 1560

			                                                        1400 Independence Avenue, SW

			                                                        Washington, DC 20250-1560

			                                                        Reference: Section 313A Loan Guarantee
			 

			                                                        Telephone: (202) 720-0424

			                                                        Facsimile: (202) 690-0717

			
			****************************************************************

			
			REFINANCING ELECTION NOTICE

			Manager

			Federal Financing Bank

			Reference is made to the following-described Future Advance Bond
			(the "Bond") payable to the Federal Financing Bank ("FFB"), which is
			guaranteed by the Rural Utilities Service ("RUS"):

			 

			
			                                                        Name of Borrower (the "Borrower"):
			
			

			
			                                                        National Rural Utilities Cooperative
			Finance Corporation

			 
	
			    
	
			REFINANCING ELECTION NOTICE - page 1

	
			
 

	
			RUS

	
			    
	
			
			                                                        FFB Bond Identifier: _____________________1

			
			
			Part 1:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election to refinance the outstanding principal amount of each of
			the advances of funds ("Advances") identified in this Part 1:

			
	
			   

		FFB	 	RUS	 	ORIGINAL	 	ORIGINAL	 	OUTSTANDING	 
	ADVANCE	 	ACCOUNT	 	ADVANCE	 	ADVANCE	 	PRINCIPAL	 
	IDENTIFIER2	 	NUMBER3	 	DATE4	 	AMOUNT5	 	AMOUNT6	 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 

		
			    
	
			
			Part 2:

			
			          The Borrower intends to refinance the outstanding principal
			amount of each of the Advances identified in Part 1 on the following
			date (such date being the "Intended Refinancing Date"):

			____________________________________7

							
						
					
				
			
			
			____________________________

			1   Insert the FFB Bond Identifier that FFB assigned to the Bond (as
			provided in the Bond Purchase Agreement referred to in the Bond).

			2   Complete 1 line in Part 1 for each Advance that the Borrower
			intends to refinance. For each Advance, insert the FFB Advance
			Identifier for the respective Advance as specified in the most
			recent billing notice delivered by RUS to the Borrower.

			3   For each Advance, insert the RUS Account Number for the
			respective Advance as specified in the most recent billing notice
			delivered by RUS to the Borrower.

			4   For each Advance, insert the date on which FFB made the
			respective Advance to the Borrower.

			5   For each Advance, insert the original principal amount of the
			respective Advance that FFB made to the Borrower.

			6   For each Advance, insert the outstanding principal amount of the
			respective Advance as of the day before the intended
			refinancing.

			7   Insert the particular calendar date that the Borrower selects to
			be the date on which the Borrower intends to refinance the Advances
			specified in Part 1, which date must meet the criteria for Intended
			Refinancing Date prescribed in paragraph 17(b)(1) of the Bond.

			 
	
			    
	
			REFINANCING ELECTION NOTICE - page 2

	
			
 

	
			RUS

	
			    
	
			
			Part 3:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election that each of the Advances identified in Part 1 is to be
			refinanced as follows:

			
	
			   

		 	 	AMOUNT OF	 	 	 	TYPE OF	 	 	 	 	 
	FFB	 	PRINCIPAL	 	NEW	 	PREPAYMENT/	 	5-YEAR	 	 	 
	ADVANCE	 	TO BE  	 	MATURITY	 	REFINANCING	 	NO-CALL	 	PREMIUM	 
	IDENTIFIER8	 	REFINANCED9	 	DATE10	 	PRIVILEGE11	 	PERIOD12	 	OPTION13	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 

		
			______________________
	
			
			8   Complete 1 line in Part 3 for each Advance identified in Part 1
			as being an Advance the Borrower elects to refinance. Insert the FFB
			Advance Identifier that FFB assigned to the respective Advance.
			
			9   For each Advance, insert the amount of principal that is to be
			refinanced. This will be the same amount as the outstanding
			principal amount of the respective Advance inserted in Part 1.
			 

			10   For each Advance, insert the particular calendar date that the
			Borrower selects to be the new Maturity Date to be in effect
			for the respective Advance after the refinancing, which new Maturity
			Date must meet all the criteria for Maturity Dates specified in
			section 7.3.1(a)(5) of the Bond Purchase Agreement referred to in
			the Bond.

			11   Elect 1 of the following 2 types of prepayment/refinancing
			privilege for an Advance only if the new Maturity Date
			selected for such Advance will occur on or after the fifth
			anniversary of the effective date of this Maturity Extension. The 2
			types of prepayment/refinancing privilege are: the market value
			premium (or discount) privilege ("M") and a fixed premium privilege
			("F"). Insert in the box the letter-symbol for the particular type
			of prepayment/refinancing privilege elected.

			12   Elect 1 of the following 2 no-call period options for an Advance
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 2 no-call
			period options are: yes ("Y"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege include a 5-year
			period during which the Advance will not be eligible for prepayment
			or refinancing, and no ("N"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege not include
			any such a 5-year no-call period. Insert in the box the
			letter-symbol for the particular no-call period option elected.
			 

			13   Select 1 of the following 3 premium options for an Advance 
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 3 premium
			options are: a 10% premium declining over 10 years ("X"), a 5%
			premium declining over 5 years ("V"), and par (no premium) ("P").
			Insert in the box the letter-symbol for the particular premium
			option selected.

			
			
	
			    
	
			REFINANCING ELECTION NOTICE - page 3

	
			
 

	
			RUS

	
			    
	
			          The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Refinancing Election Notice
			on behalf of the Borrower is valid and in full force and effect on
			the date hereof.

	 

		
			NATIONAL RURAL UTILITIES COOPERATIVE

			FINANCE CORPORATION

			(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			REFINANCING ELECTION NOTICE - page 4

	
			
 

	
			RUS

	
			     
	
			
			 

			 

			 

			 

			 

			ANNEX 3-B

			
			

			
			TO

			
			

			
			FUTURE ADVANCE BOND

			
			

			 

			 

			
			FORM

			
			

			
			OF

			
			

			
			REFINANCING ELECTION NOTICE

			

			(RUS APPROVAL REQUIRED)

			 

			 

			
			

			 

			 

	
			
 

	
			RUS

	
			    
	
			
			REFINANCING ELECTION NOTICE

			(RUS APPROVAL REQUIRED)

			****************************************************************

			
			DIRECT ALL QUESTIONS ON HOW TO COMPLETE THIS FORM TO THE
			ASSIGNED CONTACT OFFICE FOR THE BORROWER:  

			
			
			                                                         Chief 

			                                                         Policy Analysis and Loan Management Staff

			                                                         Telephone: (202) 720-0424

			
			WHEN COMPLETED, DELIVER THIS ORIGINAL FORM TO RUS
			AT THE ADDRESS OF THE CONTACT OFFICE INDICATED BELOW:

			
			
			                                                         Chief 
			

			
			
			                                                         Policy Analysis and Loan Management Staff

			
			
			                                                         Rural Utilities Service

			
			
			                                                         U.S. Department of Agriculture

			
			
			                                                         Mail Stop 1560

			
			
			                                                         1400 Independence Avenue, SW

			
			
			                                                         Washington, DC 20250-1560

			
			                                                         Reference: Section 313A Loan Guarantee
			 

			
			                                                         Telephone: (202) 720-0424

			
			                                                         Facsimile: (202) 690-0717

			
			******************************************************************************

			
			REFINANCING ELECTION NOTICE

			
			Manager

			Federal Financing Bank

			          Reference is made to the following-described Future Advance Bond
			(the "Bond") payable to the Federal Financing Bank ("FFB"), which is
			guaranteed by the Rural Utilities Service ("RUS"):

			 

			          Name of Borrower (the "Borrower"): 
			

			          National Rural Utilities Cooperative
			Finance Corporation

			
			 

			FFB Bond Identifier: ______________________1

					
				
			
			
			______________________________

			1   Insert the FFB Bond Identifier that FFB assigned
			to the Bond (as provided in the Bond Purchase Agreement referred to
			in the Bond).

			 
	
			   
	
			REFINANCING ELECTION NOTICE (RUS APPROVAL REQ'D)-
			page 1

	
			
 

	
			RUS

	
			    
	
			
			Part 1:

			
			Notice is hereby given to FFB (and RUS) of the Borrower's
			election to refinance the outstanding principal amount of each of
			the advances of funds ("Advances") identified in this Part 1:

			
	
			   

		 	 	 	 	 	 	 	 	 	 
	FFB	 	RUS	 	ORIGINAL	 	ORIGINAL	 	OUTSTANDING	 
	ADVANCE	 	ACCOUNT	 	ADVANCE	 	ADVANCE	 	PRINCIPAL	 
	IDENTIFIER2	 	NUMBER3	 	DATE4	 	AMOUNT5	 	AMOUNT6	 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 
	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
 

				 	
			
 

				 	
			
$

				 	
			
$

				 

		
			   
	
			
			Part 2:

			
			          The Borrower intends to refinance the outstanding principal
			amount of each of the Advances identified in Part 1 on the following
			date (such date being the "Intended Refinancing Date"):

			____________________________________7

							
						
					
				
			
			
			Part 3:

			
			          Notice is hereby given to FFB (and RUS) of the Borrower's
			election that each of the Advances identified in Part 1 is to be
			refinanced as follows:

			
			_________________________

			2   Complete 1 line in Part 1 for each Advance that the Borrower
			intends to refinance. For each Advance, insert the FFB Advance
			Identifier for the respective Advance as specified in the most
			recent billing notice delivered by RUS to the Borrower.

			3   For each Advance, insert the RUS Account Number for the
			respective Advance as specified in the most recent billing notice
			delivered by RUS to the Borrower.

			4   For each Advance, insert the date on which FFB made the
			respective Advance to the Borrower.

			5   For each Advance, insert the original principal amount of the
			respective Advance that FFB made to the Borrower.

			6   For each Advance, insert the outstanding principal amount of the
			respective Advance as of the day before the intended
			refinancing.

			7   Insert the particular calendar date that the Borrower selects to
			be the date on which the Borrower intends to refinance the Advances
			specified in Part 1, which date must meet the criteria for Intended
			Refinancing Date prescribed in paragraph 17(b)(1) of the Bond.

			 
	
			    
	
			REFINANCING ELECTION NOTICE (RUS APPROVAL REQ'D)-
			page 2

	
			
 

	
			RUS

	
			   

		 	 	AMOUNT OF	 	 	 	TYPE OF	 	 	 	 	 
	FFB	 	PRINCIPAL	 	NEW	 	PREPAYMENT	 	5 YEAR	 	 	 
	ADVANCE	 	TO BE  	 	MATURITY	 	REFINANCING	 	NO-CALL	 	PREMIUM	 
	IDENTIFIER8	 	REFINANCED9	 	DATE10	 	PRIVILEGE11	 	PERIOD12	 	OPTION13	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
			
 

				 	
			
$

				 	
			
 

				 	
			        ____	 	
			    ____	 	
			     ____	 

		
			_________________

			
			8  Complete 1 line in Part 3 for each Advance
			identified in Part 1 as being an Advance the Borrower elects to
			refinance. Insert the FFB Advance Identifier that FFB assigned to
			the respective Advance.
			
			9   For each Advance, insert the amount of principal that is to be
			refinanced. This will be the same amount as the outstanding
			principal amount of the respective Advance inserted in Part 1.
			 

			10   For each Advance, insert the particular calendar date that the
			Borrower selects to be the new Maturity Date" to be in effect
			for the respective Advance after the refinancing, which new Maturity
			Date must meet all the criteria for Maturity Dates specified in
			section 7.3.1(a)(5) of the Bond Purchase Agreement referred to in
			the Bond.

			11   Elect 1 of the following 2 types of prepayment/refinancing
			privilege for an Advance only if the new Maturity Date
			selected for such Advance will occur on or after the fifth
			anniversary of the effective date of this Maturity Extension. The 2
			types of prepayment/refinancing privilege are: the market value
			premium (or discount) privilege ("M") and a fixed premium privilege
			("F"). Insert in the box the letter-symbol for the particular type
			of prepayment/refinancing privilege elected.

			12   Elect 1 of the following 2 no-call period options for an Advance
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 2 no-call
			period options are: yes ("Y"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege include a 5-year
			period during which the Advance will not be eligible for prepayment
			or refinancing, and no ("N"), if the Borrower elects to have the
			fixed premium prepayment/refinancing privilege not include
			any such a 5-year no-call period. Insert in the box the
			letter-symbol for the particular no-call period option elected.
			 

			13   Select 1 of the following 3 premium options for an Advance 
			only if a fixed premium privilege is elected as the
			prepayment/refinancing privilege for such Advance. The 3 premium
			options are: a 10% premium declining over 10 years ("X"), a 5%
			premium declining over 5 years ("V"), and par (no premium) ("P").
			Insert in the box the letter-symbol for the particular premium
			option selected.

			
			
	
			    
	
			REFINANCING ELECTION NOTICE (RUS APPROVAL REQ'D)-
			page 3

	
			
 

	
			RUS

	
			   
	
			The undersigned hereby certifies that the authority of the
			undersigned to execute and deliver this Refinancing Election Notice
			on behalf of the Borrower is valid and in full force and effect on
			the date hereof.

	 

		
			NATIONAL RURAL UTILITIES COOPERATIVE

			FINANCE CORPORATION

			(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			
			
			NOTICE OF RUS APPROVAL OF

			REFINANCING ELECTION NOTICE

			            Notice is hereby given to FFB that the preceding
			Refinancing Election Notice made by the Borrower identified therein
			has been approved by RUS for purposes of the Bond identified
			therein.

	 

		
			ADMINISTRATOR of the 

			RURAL UTILITIES SERVICE,

			acting through his or her

			duly authorized designee
	 
			 
	By:	
			
 

			
	Name:	

 

			
	Title:	

 

			
	Date:	

 

			

	 

		
			REFINANCING ELECTION NOTICE (RUS APPROVAL REQ'D)-
			page 4

	
			
 

	
			RUS

	
			
			 

			 

			 

			 

			 

			EXHIBIT C

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			FORM

			

			OF

			

			CERTIFICATE SPECIFYING AUTHORIZED BORROWER
			OFFICIALS

			
			 

			 

			 

			 

			 

	
			
 

	
			RUS

	
			    
	
			
			CERTIFICATE SPECIFYING 

			AUTHORIZED BORROWER OFFICIALS

			 

			
			Federal Financing Bank

			Main Treasury Building

			1500 Pennsylvania Avenue, NW

			Washington, DC 20220

			          Reference is made to the Series B Bond Purchase Agreement dated
			as of April 28, 2006 (the "Bond Purchase Agreement"), by and among
			the Federal Financing Bank ("FFB"), National Rural Utilities
			Cooperative Finance Corporation (the "Borrower"), and the
			Administrator of the Rural Utilities Service ("RUS"). Capitalized
			terms used herein and not defined herein shall have the respective
			meanings ascribed to them in the Bond Purchase Agreement.  

			          This Certificate Specifying Authorized Borrower Officials is
			delivered to FFB pursuant to section 4.1(c) of the Bond Purchase
			Agreement.

			          The undersigned, on behalf of the Borrower, hereby certifies
			that:

			          a. each of the individuals named below is the duly qualified and
			incumbent official of the Borrower holding the position title set
			out opposite the respective individual's name;  

			          b. each of the individuals named below is authorized to execute
			and deliver Advance Requests from time to time on behalf of the
			Borrower; and

			          c. the signature of each such individual set out opposite the
			respective individual's name and title is the genuine signature of
			such individual:

			

		 	 	 	 	 	 
	Name	 	Title	 	Signature	 
	Sheldon C. Petersen	 	Governor and

			Chief Executive Officer	 	

			________________________	 
	 	 	 	 	 	 
	Steven L. Lilly	 	Senior Vice President and

			Chief Financial Officer	 	________________________	 
	 	 	 	 	 	 
	John J. List	 	Senior Vice President

			Assistant Secretary-Treasurer

			and General Counsel	 	

			

			________________________	 

	 

		
			CERTIFICATE SPECIFYING AUTHORIZED BORROWER
			OFFICIALS - page 1

	
			
 

	
			RUS

	
			   
	
			          The undersigned certifies that the undersigned has been given the
			authority to execute this Certificate Specifying Authorized Borrower
			Officials on behalf of the Borrower and to deliver it to FFB, and
			that this authority is valid and in full force and effect on the
			date hereof.

			          IN WITNESS WHEREOF, the undersigned has executed this Certificate
			Specifying Authorized Borrower Officials and caused it to be
			delivered to FFB.

			

	 

		
			NATIONAL RURAL UTILITIES COOPERATIVE

			FINANCE CORPORATION

			(the "Borrower")
	 
			 
	By:	
			
 

			
	Name:	
John J. List
	Title:	
Assistant Secretary-Treasurer
	Date:	
April 28, 2006

	 

		
			CERTIFICATE SPECIFYING AUTHORIZED BORROWER
			OFFICIALS - page 2

	
			
 

	
			RUS

	
			    
	
			 

			 

			 

			
			 

			 

			EXHIBIT D

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			 

			 

			FORM

			

			OF

			

			CERTIFICATE SPECIFYING AUTHORIZED RUS OFFICIALS

			 

			 

			
			

			 

			 

	
			
 

	
			RUS

	
			    
	
			CERTIFICATE SPECIFYING

			AUTHORIZED RUS OFFICIALS

			
			Federal Financing Bank

			Main Treasury Building

			1500 Pennsylvania Avenue, NW 

			Washington, DC 20220

			          Reference is made to the Series B Bond Purchase Agreement dated
			as of April 28, 2006 (the "Bond Purchase Agreement"), by and among
			the Federal Financing Bank ("FFB"), National Rural Utilities
			Cooperative Finance Corporation (the "Borrower"), and the
			Administrator of the Rural Utilities Service ("RUS"). Capitalized
			terms used herein and not defined herein shall have the respective
			meanings ascribed to them in the Bond Purchase Agreement.  

			          This Certificate Specifying Authorized RUS Officials is delivered
			to FFB pursuant to section 4.2 or 13.1 of the Bond Purchase
			Agreement.

			1. The undersigned, on behalf of RUS, hereby certifies that:

			          a. each of the individuals named below is the duly qualified and
			incumbent official of RUS holding the position title set out
			opposite the respective individual's name;  

			          b. each of the individuals named below is authorized to execute
			and deliver Advance Request Approval Notices from time to time on
			behalf of RUS; and

			          c. the signature of each such individual set out opposite the
			respective individual's name and title is the genuine signature of
			such individual:

			

		 	 	 	 	 	 
	Name	 	Title	 	Signature	 
	James R. Newby	 	Assistant Administrator - -

			Electric Program	 	

			________________________	 
	 	 	 	 	 	 
	Doris A. Nolte	 	Chief 

			Policy Analysis and 

			Loan Management Staff	 	 ________________________
	 
	 	 	 	 	 	 
	William E. Railey	 	Chief

			Financial Operations Branch

			Power Supply Division	 	

			

			________________________	 

		
			   
	
			CERTIFICATE SPECIFYING AUTHORIZED RUS OFFICIALS -
			page 1

	
			
 

	
			RUS

	
			    
	
			2. The undersigned, on behalf of RUS, hereby certifies that:

			          a. each of the individuals named below is the duly qualified and
			incumbent official of RUS holding the position title set out
			opposite the respective individual's name;  

			          b. each of the individuals named below is authorized to confirm
			telephonically the authenticity of Advance Request Approval Notices
			from time to time on behalf of RUS; and

			          c. the telephone number of each such individual is set out
			opposite the respective individual's name and title:

			

		 	 	 	 	 	 
	Name	 	Title	 	Telephone Number	 
	James R. Newby	 	Assistant Administrator - -

			Electric Program	 	           (202) 720-9545	 
	 	 	 	 	 	 
	Doris A. Nolte	 	Chief 

			Policy Analysis and 

			Loan Management Staff	 	           (202) 720-0424	 
	 	 	 	 	 	 
	William E. Railey	 	Chief

			Financial Operations Branch

			Power Supply Division	 	           (202) 720-1968	 

		
			    
	
			CERTIFICATE SPECIFYING AUTHORIZED RUS OFFICIALS -
			page 2

	
			
 

	
			RUS

	
			    
	
			          IN WITNESS WHEREOF, the undersigned has executed this Certificate
			Specifying Authorized RUS Officials and caused it to be delivered to
			FFB.

			

	 

		
			ADMINISTRATOR of the

			RURAL UTILITIES SERVICE,
	 
			 
	By:	
			
 

			
	Name:	
James M. Andrew
	Title:	
Administrator
	Date:	
April 28, 2006

	 

		
			CERTIFICATE SPECIFYING AUTHORIZED RUS OFFICIALS -
			page 3

	
			
 

	
			RUS

	
			  
			
			 

			 

			 

			 

			 

			
			EXHIBIT E

			

			TO

			

			BOND PURCHASE AGREEMENT

			 

			FORM

			

			OF

			

			OPINION OF BORROWER'S COUNSEL

			
			

			
			re:

			

			BORROWER'S INSTRUMENTS

			 

			 

			 

			
			

			
			 

			 
	
			
 

	
			    
	
			    
	
			
			April 28, 2006
			 

			

			Administrator

			Rural Utilities Service

			United States Department of Agriculture

			1400 Independence Avenue, S.W.

			Washington, DC 20250-1414

			

			Federal Financing Bank

			Main Treasury Building

			1500 Pennsylvania Avenue, N.W.

			Washington, DC 20220

			

			Gentlemen:

			

			          I am delivering this opinion as general counsel
			("Counsel") of National Rural Utilities Cooperative Finance
			Corporation, a District of Columbia cooperative association
			("Borrower"), and am familiar with matters pertaining to the loan to
			Borrower in the principal amount of $1,500,000,000.00,
			provided for in the Series B Bond Purchase
			Agreement ("Bond Purchase Agreement"), dated as of April 28, 2006
			made by and among Borrower, the Federal Financing Bank ("FFB"), and
			the United States of America, acting through the Rural Utilities
			Service, a Rural Development agency of the United States Department
			of Agriculture ("RUS"), which loan has been guaranteed by RUS.

			

			          I have examined such corporate records and
			proceedings of Borrower, and such other documents as I have deemed
			necessary as a basis for the opinions hereinafter expressed.

			

			          I have also examined the following documents as
			executed and delivered: (a) the Bond Purchase Agreement, (b) the
			Future Advance Bond, dated as of April 28, 2006,
			in the maximum principal amount of
			$1,500,000,000.00 ("Guaranteed Bond"), said Guaranteed Bond payable
			to FFB, (c) the Series B Bond Guarantee Agreement, dated as of April
			28, 2006, made by and between RUS and Borrower ("Guarantee
			Agreement"), (d) the Series B Pledge Agreement, dated as of April
			28, 2006, made by and among Borrower, RUS and U.S. Bank Trust
			National Association ("Pledge Agreement"), and (e) the Series B
			Reimbursement Note, dated as of April 28, 2006, issued by Borrower
			to RUS ("Reimbursement Note"). The documents described in items (a)
			through (e) above are collectively referred to herein as the "Bond
			Documents."

			

			          Based on the foregoing, but subject to the
			assumptions, exceptions, qualifications and limitations hereinafter
			expressed, I am of the opinion that:  

			
			
	
			
 

	
			Administrator - RUS

			Federal Financing Bank

			April 28, 2006

			Page 2
	
			    
	
			
			          (1) The Borrower has been duly
					incorporated and is validly existing as a not-for-profit
					corporation in good standing under the laws of the District
					of Columbia with corporate power and authority to execute
					and perform its obligations under the Bond Documents.

			          (2) The Bond Documents have been duly
					authorized, executed and delivered by the Borrower, and such
					documents constitute the legal, valid and binding agreements
					of the Borrower, enforceable against the Borrower in
					accordance with their respective terms subject to (a)
					applicable bankruptcy, reorganization, insolvency,
					moratorium and other laws of general applicability relating
					to or affecting creditors' rights generally, and (b) the
					application of general principles of equity regardless of
					whether such enforceability is considered in a proceeding in
					equity or at law.

			          (3) Neither the execution nor the
					delivery by the Borrower of any of the Bond Documents nor
					the consummation by the Borrower of any of the transactions
					contemplated therein, including, without limitation, the
					pledge of the Pledged Securities (as such term is defined in
					the Pledge Agreement) to RUS if required, nor the
					fulfillment by the Borrower of the terms of any of the Bond
					Documents will conflict with or violate, result in a breach
					of or constitute a default under any term or provision of
					the Articles of Incorporation or By-laws of the Borrower or
					any law or any regulation or any order known to Counsel
					currently applicable to the Borrower of any court,
					regulatory body, administrative agency or governmental body
					having jurisdiction over the Borrower or the terms of any
					indenture, deed of trust, note, note agreement or instrument
					to which the Borrower is a party or by which the Borrower or
					any of its properties is bound.

			          (4) No approval, authorization, consent,
					order, registration, filing, qualification, license or
					permit of or with any state or Federal court or governmental
					agency or body including, without limitation, RUS, having
					jurisdiction over the Borrower is required for any
					consummation by the Borrower of the transactions
					contemplated by the Bond Documents except such as have been
					obtained from RUS; provided, however, no
					opinion is expressed as to the applicability of any Federal
					or state securities law to any sale, transfer or other
					disposition of the Guaranteed Bond after the date hereof.

			          (5) There is no pending or, to the best
					of Counsel's knowledge, threatened action, suit or
					proceeding before any court or governmental agency,
					authority or body or any arbitrator with respect to the
					Borrower, or any of the Bond Documents, or which, if
					adversely determined, would have a material adverse effect
					on the Borrower's financial condition or its ability to
					perform its obligations under any of the Bond Documents.

			

				
			
			          The foregoing opinions are subject to the
			following assumptions, exceptions, qualifications and limitations:

			 
	
			
 

	
			Administrator - RUS

			Federal Financing Bank

			April 28, 2006

			Page 3
	
			    
	
			
			          A. I am a member of the Bar of the District of
			Columbia and render no opinion on the laws of any jurisdiction other
			than the laws of the District of Columbia, the federal laws of the
			United States of America and the General Corporation Law of the
			District of Columbia.

			

			          B. My opinions are limited to the present laws
			and to the facts, as they presently exist. I assume no obligation to
			revise or supplement this opinion should the present laws of the
			jurisdictions referred to in paragraph A above be changed by
			legislative action, judicial decision or otherwise.

			

			          C. This letter is rendered to you in connection
			with the Bond Documents and the transactions related thereto, and
			may not be relied upon by any other person or by you in any other
			context or for any other purpose.  

			

			          D. I have assumed with your permission (i) the
			genuineness of all signatures by each party other than the Borrower,
			(ii) the authenticity of documents submitted to me as originals and
			the conformity to authentic original documents of all documents
			submitted to me as copies, and (iii) the due execution and delivery,
			pursuant to due authorization, of the Bond Documents by each party
			other than the Borrower.  

			

			 

			Yours sincerely,

			

			 

			John Jay List

			General Counsel
 
	
			   
	
			
 

	
			RUS

	
			   
	
			 

			 

			 

			 

			 

			
			EXHIBIT F

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			 

			 

			FORM

			

			OF

			

			OPINION OF RUS'S COUNSEL

			

			re:

			

			RUS GUARANTEE

			
			

			 

			 

			 

	
			
 

	
			April 28, 2006

			 

			MEMORANDUM FOR JAMES M. ANDREW

			                                       ADMINISTRATOR

			                                       RURAL UTILITIES SERVICE

			FROM:                           James Michael Kelly

			                                       Acting General Counsel

			SUBJECT:                      Section 313A Legal Opinion

			          This is in response to your letter of April 26, 2006, in which
			you requested an opinion from this office concerning your authority
			to execute and deliver a certain guarantee (the "Guarantee")
			pursuant to the Rural Electrification Act of 1936, as amended, and
			whether the Guarantee when executed by you will be an incontestable
			obligation of the United States of America, acting through the Rural
			Utilities Service ("RUS"), a Rural Development agency of the United
			States Department of Agriculture, supported by the full faith and
			credit of the United States.

			          More particularly, the Guarantee is endorsed on a Future Advance
			Bond (the "Bond") dated April 28, 2006, being issued by the National
			Rural Utilities Cooperative Finance Corporation (the "Borrower"), a
			District of Columbia cooperative association, to the Federal
			Financing Bank (the "FFB"), a body corporate and instrumentality of
			the United States of America. We understand that the Borrower is
			using the proceeds of the Bond for purposes specified in section
			313A of the Act (defined herein).

			          We have examined the following:

			1. The Rural Electrification Act of 1936, 7
							U.S.C. sections 901-950bb (2005) (the "Act");

							2. The Consolidated Appropriations Act, 2005,
							Pub. L. No. 108-447, 118 Stat. 2831, 2845 (section 747)
							(2004) (the "Appropriations Act");

							3. Delegations of authority from the Secretary of
							Agriculture to the Under Secretary for Rural
							Development, 7 C.F.R. section 2.17 (2005), and redelegations
							from the Under Secretary for Rural Development to
							the Administrator, Rural Utilities Service, 7 C.F.R.
							section 2.47 (2005);

						
					
				
			
			
	
			
 

	
			4. The executed Bond of the Borrower in the
							maximum principal amount of one billion five hundred
							million dollars ($1,500,000,000.00), having a final
							maturity date of July 15, 2029, and payable to FFB
							and any successor or assign of FFB; and

							5. The Guarantee endorsed by the Administrator of
							RUS which is attached to the Bond.

						
					
				
			
			Based upon the foregoing, having regard to legal considerations
			which we deem relevant, we are of the opinion that:

			1. You are authorized under the Act and the
							Appropriations Act to execute and deliver the
							Guarantee;

							2. The Guarantee has been executed by you
							pursuant to section 313A of the Act; and

							3. The Guarantee is an enforceable obligation of
							RUS supported by the full faith and credit of the
							United States and incontestable except for fraud or
							misrepresentation of which the holder of the
							Guarantee had actual knowledge at the time it became
							a holder.

						
					
				
			
			Based on the foregoing and upon such further investigation as I
			have deemed necessary, we are of the opinion that:

			1. The execution and delivery of the RUS
								Guarantee by the Administrator is authorized by
								applicable law.

								2. The RUS Guarantee has been executed and
								delivered by an official of RUS who is duly
								authorized to execute and deliver such document
								on behalf of the Administrator.

								3. The RUS Guarantee is a valid obligation of
								the United States of America for which the full
								faith and credit of the United States of America
								are pledged.

							
						
					
				
			
			
	
			
 

	
			RUS

	
			    
	
			 

								 

								 

								 

								 

							
						
					
				
			
			
			EXHIBIT G

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			FORM

			

			OF

			

			RUS CERTIFICATE

			
			

			 

			

			
			 

			
			 

			 

	
			
 

	
			RUS

	
			    
	
			
			RUS CERTIFICATE

			
			
	
			   
			
			
	
			Federal Financing Bank

			Main Treasury Building

			1500 Pennsylvania Avenue, NW

			Washington, DC 20220

			Reference is made to:  

			(a) the Series B Bond Purchase Agreement dated as
							of April 28, 2006 (the "Bond Purchase Agreement"),
							by and among the Federal Financing Bank ("FFB"),
							National Rural Utilities Cooperative Finance
							Corporation (the "Borrower"), and the Administrator
							of the Rural Utilities Service ("RUS"), a Rural
							Development agency of the United States Department
							of Agriculture;

							(b) the Series B Bond dated as of April 28, 2006
							(the "Bond"), issued by the Borrower payable to FFB
							in the maximum principal amount of
							$1,500,000,000.00; and

							(c) the RUS Guarantee dated as of April 28, 2006
							(the "RUS Guarantee").

						
					
				
			
			Pursuant to sections 3.3.1(c) and 4.2(b) of the Bond Purchase
			Agreement, the undersigned hereby certifies the following:

			1. I am the Administrator of RUS.
							 

							2. I am furnishing this RUS Certificate to FFB
							with the intent that it be relied upon by FFB as a
							basis for taking or withholding action pursuant to
							the Bond Purchase Agreement.

							3. As the Administrator of RUS, I have executed
							the RUS Guarantee and caused it to be attached to
							the Bond.

							4. The executed RUS Guarantee conforms exactly to
							the form of "RUS Guarantee" prescribed in the Bond
							Purchase Agreement.  

							5. RUS retains custody of the executed original
							Bond as agent for FFB under the terms of the Bond
							Purchase Agreement, subject to delivery of actual
							possession of the original Bond to FFB upon request
							by FFB.

							6. RUS, as agent for FFB, has received from the
							Borrower the certification regarding lobbying that
							is required to be filed by recipients of federal
							loans, in the form

						
					
				
			
			
	
			     
	
			RUS CERTIFICATE - page 1

	
			
 

	
			RUS

	
			    
	
			 of certificate set forth in
							Appendix A to 31 C.F.R. Part 21, and, if required
							under 31 C.F.R. Part 21, the disclosure form to
							report lobbying, in the form of disclosure form set
							forth in Appendix B to 31 C.F.R. Part 21. RUS
							retains custody of the executed original certificate
							(and, if applicable, disclosure form) as agent for
							FFB under the terms of the Bond Purchase Agreement,
							subject to delivery of actual possession of the
							original certificate (and, if applicable, disclosure
							form) to FFB or its designate upon request by FFB or
							its designate.

							7. The Borrower does not have a judgment lien
							against any of the Borrower's property for a debt
							owed to the United States of America.

						
					
				
			
			

			IN WITNESS WHEREOF, the undersigned has executed this RUS
			Certificate and caused it to be delivered to FFB.

			

	 

		
			ADMINISTRATOR of the

			RURAL UTILITIES SERVICE,
	 
			 
	By:	
			
 

			
	Name:	
James M. Andrew
	Title:	
Administrator
	Date:	
April 28, 2006

	 

		
			    
	
			RUS CERTIFICATE - page 2

	
			
 

	
			RUS

	
			 
	
			
			 

			 

			 

			 

			 

			EXHIBIT H

			

			TO

			

			BOND PURCHASE AGREEMENT

			

			 

			 

			 

			FORM

			

			OF

			

			RUS GUARANTEE

			 

			 

			
			 

	
			

	
			RUS

	
			    
	
			
			RUS
			GUARANTEE

	
			   
	
			
			            The United States of
			America, acting through the Administrator of the Rural Utilities
			Service ("RUS"), a Rural Development agency of the United States
			Department of Agriculture, hereby guarantees to the Federal
			Financing Bank, its successors and assigns ("FFB"), all payments of
			principal, interest, premium (if any), and late charges (if any),
			when and as due in accordance with the terms of the Series B Bond
			dated April 28, 2006, issued by National Rural Utilities Cooperative
			Finance Corporation (the "Borrower") payable to FFB in the maximum
			principal amount of $1,500,000,000.00, to which this RUS Guarantee
			is attached (such bond being the "Bond"), with interest on the
			principal until paid, irrespective of (i) acceleration of such
			payments under the terms of the Bond, or (ii) receipt by RUS of any
			sums or property from its enforcement of its remedies for the
			Borrower's default.

			
			            
			This RUS Guarantee is issued pursuant to section 313A of the Rural
			Electrification Act of 1936, as amended (7 U.S.C. section 940c‐1),
			section 6 of the Federal Financing Bank Act of 1973 (12 U.S.C.
			section 2285), and the Series B Bond Purchase Agreement dated as of
			April 28, 2006, among FFB, the Borrower, and RUS. 

	
			    

	

	

	

		UNITED
			STATES OF AMERICA
	 
			 
	By:	
			
 

			
	Name:	
James M. Andrew
	Title:	
Administrator of 
	 	
the Rural Utilities Service
	Date:	
April 28, 2006

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