Document:

exv4w1

 

    Exhibit
    4.1

    FREDDIE
    MAC

 

 

    SEVENTH
    AMENDED AND RESTATED CERTIFICATE OF DESIGNATION,

    POWERS, PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    of

    VOTING COMMON STOCK

    (Par Value $0.21 Per Share)

 

    I, ROBERT E. BOSTROM, Corporate Secretary of the Federal
    Home Loan Mortgage Corporation, a government-sponsored
    enterprise of the United States of America (“Freddie
    Mac”), do hereby certify, pursuant to Resolution FHLMC
    No. 2007-26
    adopted by the Board of Directors of Freddie Mac (the
    “Board of Directors”) on November 26, 2007 and
    the authority delegated to the authorized officers thereunder
    (which resolution is in full force and effect), that:

 

    — Pursuant to Section 304(a) of the Federal Home
    Loan Mortgage Corporation Act, as amended
    (12 U.S.C. §1453(a)) (the “Freddie Mac
    Act”), the voting common stock of Freddie Mac (the
    “Common Stock”) shall be issued to such holders and in
    the manner and amount, and subject to any limitations on
    concentration of ownership, as Freddie Mac prescribes; and

 

    — The Common Stock has the following designation,
    powers, rights, privileges, qualifications, limitations,
    restrictions, terms and conditions:

 

    1.
    Designation, Par Value and Number of Shares.

 

    The Common Stock of Freddie Mac shall be designated “Common
    Stock,” shall have a par value of $0.21 per share, and
    shall consist of 806,000,000 shares that have been issued or
    authorized for issuance (without limitation upon the authority
    of the Board of Directors to authorize the issuance of
    additional shares from time to time).

 

    2.
    Dividends.

 

    (a) The holders of outstanding shares of Common Stock shall
    be entitled to receive, ratably, dividends (in cash, stock or
    other property), when, as and if declared by the Board of
    Directors out of assets legally available therefor. The amount
    of dividends, if any, to be paid to holders of the outstanding
    Common Stock from time to time and the dates of payment shall be
    fixed by the Board of Directors. Each such dividend shall be
    paid to the holders of record of outstanding shares of the
    Common Stock as they appear in the books and records of Freddie
    Mac on such record date, not to be earlier than 45 days nor
    later than 10 days preceding the applicable dividend
    payment date, as shall be fixed in advance by the Board of
    Directors.

 

    (b) Holders of shares of Common Stock shall not be entitled
    to any dividends, in cash, stock or other property, other than
    as herein provided and shall not be entitled to interest, or any
    sum in lieu of interest, on or in respect of any dividend
    payment.

 

    3. Voting
    Rights.

 

    (a) The holders of the outstanding shares of Common Stock
    shall have the right to vote (i) for the election of
    directors of Freddie Mac to the extent prescribed by applicable
    federal law, (ii) with respect to the amendment,
    alteration, supplementation or repeal of the provisions of this
    Certificate to the extent provided in Section 10(h) hereof,
    and (iii) with respect to such other matters, if any, as
    may be prescribed by the Board of Directors, in its sole
    discretion, or by applicable federal law; provided, however,
    that no vote shall be cast or counted in respect of any shares
    of Common Stock which, pursuant to procedures implemented in
    accordance with Section 7(b) hereof, may not be voted, nor
    shall such shares be considered outstanding for the purposes of
    calculating the requisite number or percentage of shares whose
    vote is required as to any matter.

 

    (b) Holders of the outstanding shares of Common Stock
    entitled to vote shall be entitled to one vote per share on all
    matters presented to them for their vote. Such vote shall be
    cast in person or by proxy at a meeting of such holders or, if
    so determined by the Board of Directors, by written consent of
    the holders of the requisite number of

    

    1

 

    shares of Common Stock. In connection with any meeting of such
    holders, the Board of Directors shall fix a record date, neither
    earlier than 60 days nor later than 10 days prior to
    the date of such meeting, and holders of record of shares of
    Common Stock on such record date shall be entitled to notice of
    and to vote at any such meeting and any adjournment. The Board
    of Directors, or such person or persons as it may designate, may
    establish reasonable rules and procedures as to the solicitation
    of the vote of holders of Common Stock at any such meeting or
    otherwise, as to the conduct of such vote, as to quorum
    requirements therefor, as to the requisite number or percentage
    of affirmative votes required for the approval of any matter and
    as to all related questions. Such rules and procedures shall
    conform to the requirements of any national securities exchange
    on which the Common Stock may be listed.

 

    4. No
    Redemption.

 

    Freddie Mac shall not, and shall not have the right to, redeem
    any shares of Common Stock whether for cash, stock or other
    property.

 

    5. No
    Conversion Rights.

 

    The holders of shares of Common Stock shall not have any right
    to convert such shares into or exchange such shares for any
    other class or series of stock or obligation of Freddie Mac.

 

    6. No
    Preemptive Rights.

 

    No holder of Common Stock shall as such holder have any
    preemptive right to purchase or subscribe for any other shares,
    rights, options or other securities of any class of Freddie Mac
    which at any time may be sold or offered for sale by Freddie Mac.

 

    7.
    Ownership Reports.

 

    (a) Except as otherwise provided herein, any beneficial
    owner (as such term is defined in Securities and Exchange
    Commission (“SEC”)
    Rule 13d-3
    under the Securities Exchange Act of 1934 (the “Exchange
    Act”)) of the outstanding Common Stock shall furnish in
    writing to Freddie Mac and to each exchange where the Common
    Stock is listed such statements of beneficial ownership of the
    Common Stock, and amendments thereto, on such forms, in such
    time periods and in such manner as would be required by Exchange
    Act Sections 13(d) and 13(g) and by SEC regulations
    thereunder if the Common Stock were an equity security of a
    class registered under Exchange Act Section 12. Statements
    of beneficial ownership furnished to Freddie Mac under this
    Section 7 shall be publicly available and may be furnished
    to any person upon request and payment of any costs therefor,
    and Freddie Mac shall assume no liability for the contents of
    such documents. All references to the Exchange Act and any rules
    and regulations promulgated thereunder shall mean such statute,
    or such rules and regulations, as amended and in effect from
    time to time, including any successor statute, rules or
    regulations.

 

    (b) The CEO or his designee shall be empowered to take such
    steps and implement such procedures as he deems to be necessary
    or appropriate to ensure compliance with the reporting
    requirements set forth in this Section 7, including the
    refusal to permit the voting of any excess shares of Common
    Stock beneficially owned by any person failing to comply with
    such requirements. For purposes of this Section 7, excess
    shares shall include all shares of Common Stock beneficially
    owned by a person other than that number of shares the
    beneficial ownership of which would not give rise to a reporting
    obligation if such number constituted all of the shares
    beneficially owned by such person.

 

    (c) Any beneficial owner of shares of Common Stock believed
    by Freddie Mac to be in violation of the reporting requirements
    imposed by this Section 7 shall be required to respond to
    inquiries by the CEO or his designee made for the purpose of
    determining the existence, nature or extent of any such
    violation. Such inquiry shall be made in writing sent by first
    class mail, postage prepaid, shall set forth the reporting
    requirements referred to in this Section 7 and shall
    require such beneficial owner to provide Freddie Mac with such
    information concerning such beneficial ownership as may be
    specified in such inquiry. If such inquiry shall not have been
    responded to in a manner satisfactory to Freddie Mac within five
    business days after the date on which it was mailed, the shares
    to which the inquiry pertains shall be considered for all
    purposes to be beneficially owned in violation of the reporting
    requirements imposed by this Section 7, and the CEO or his
    designee shall be authorized to invoke the measures authorized
    by paragraph (b) of this Section 7, including the
    refusal to permit the voting of such shares.

    

    2

 

    (d) Any resolution or determination of, or decision or
    exercise of any discretion or power by, the Board of Directors
    or the officers, employees and agents of Freddie Mac hereunder
    shall be conclusive and binding on any beneficial owner of
    Common Stock affected and all persons concerned and shall not be
    open to challenge, whether as to its validity or otherwise, on
    any grounds whatsoever, and the Board of Directors, Freddie Mac
    and its officers, employees and agents shall not have any
    liability whatsoever in respect thereof.

 

    (e) Each certificate representing a share or shares of
    Common Stock issued after December 10, 1990 shall bear a
    conspicuous legend to the effect that ownership of the Common
    Stock is subject to the reporting requirements of this
    Section 7.

 

    (f) The Board of Directors shall have the right at any time
    to remove, relax or grant exceptions to the reporting
    requirements imposed under this Section 7.

 

    8.
    Liquidation Rights.

 

    (a) Upon the dissolution, liquidation or winding up of
    Freddie Mac, after payment of or provision for the liabilities
    of Freddie Mac and the expenses of such dissolution, liquidation
    or winding up, and after any payment or distribution shall have
    been made on any other class or series of stock of Freddie Mac
    ranking prior to the Common Stock upon liquidation, the holders
    of the outstanding shares of the Common Stock shall be entitled
    to receive out of the assets of Freddie Mac available for
    distribution to stockholders, before any payment or distribution
    shall be made on any other class or series of stock of Freddie
    Mac ranking junior to the Common Stock upon liquidation, the
    amount of $0.21 per share, plus a sum equal to all dividends
    declared but unpaid on such shares to the date of final
    distribution. The holders of the outstanding shares of any class
    or series of stock of Freddie Mac ranking prior to, on a parity
    with or junior to the Common Stock upon liquidation shall also
    receive out of such assets payment of any corresponding
    preferential amount to which the holders of such stock may, by
    the terms thereof, be entitled. Thereafter, subject to the
    foregoing and to the provisions of paragraph (b) of this
    Section 8, the balance of any assets of Freddie Mac
    available for distribution to stockholders upon such
    dissolution, liquidation or winding up shall be distributed to
    the holders of outstanding Common Stock in the aggregate.

 

    (b) Notwithstanding the foregoing, upon the dissolution,
    liquidation or winding up of Freddie Mac, the holders of shares
    of the Common Stock then outstanding shall not be entitled to be
    paid any amounts to which such holders are entitled pursuant to
    paragraph (a) of this Section 8 unless and until the
    holders of any classes or series of stock of Freddie Mac ranking
    prior upon liquidation to the Common Stock have been paid all
    amounts to which such classes or series of stock are entitled
    pursuant to their respective terms.

 

    (c) Neither the sale of all or substantially all the
    property or business of Freddie Mac, nor the merger,
    consolidation or combination of Freddie Mac into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 8.

 

    9.
    Additional Classes or Series of Stock.

 

    The Board of Directors shall have the right at any time in the
    future to authorize, create and issue, by resolution or
    resolutions, one or more additional classes or series of stock
    of Freddie Mac, and to determine and fix the distinguishing
    characteristics and the relative rights, preferences, privileges
    and other terms of the shares thereof. Any such class or series
    of stock may rank prior to or on a parity with or junior to the
    Common Stock as to dividends or upon liquidation or otherwise.

 

    10.
    Miscellaneous.

 

    (a) Any stock of any class or series of Freddie Mac shall
    be deemed to rank:

 

    (i) prior to the shares of the Common Stock, either as to
    dividends or upon liquidation, if the holder of such class or
    series shall be entitled to the receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of the Common Stock;

 

    (ii) on a parity with shares of the Common Stock, either as
    to dividends or upon liquidation, whether or not the dividend
    rates or amounts, dividend payment dates or redemption or
    liquidation prices per share, if any,

    

    3

 

    be different from those of the Common Stock, if the holders of
    such class or series shall be entitled to the receipt of
    dividends or of amounts distributable upon dissolution,
    liquidation or winding up of Freddie Mac, as the case may be, in
    proportion to their respective dividend rates or amounts or
    liquidation prices, without preference or priority, one over the
    other, as between the holders of such class or series and the
    holders of shares of the Common Stock; and

 

    (iii) junior to shares of the Common Stock, either as to
    dividends or upon liquidation, if the holders of shares of the
    Common Stock shall be entitled to the receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of such class or series.

 

    (b) Freddie Mac and any agent of Freddie Mac may deem and
    treat the holder of a share or shares of Common Stock, as shown
    in Freddie Mac’s books and records, as the absolute owner
    of such share or shares of Common Stock for the purpose of
    receiving payment of dividends in respect of such share or
    shares of Common Stock and for all other purposes whatsoever,
    and neither Freddie Mac nor any agent of Freddie Mac shall be
    affected by any notice to the contrary. All payments made to or
    upon the order of any such person shall be valid and, to the
    extent of the sum or sums so paid, effectual to satisfy and
    discharge liabilities for moneys payable by Freddie Mac on or
    with respect to any such share or shares of Common Stock.

 

    (c) The shares of the Common Stock, when duly issued, shall
    be fully paid and non-assessable. Any shares owned by Freddie
    Mac shall retain the status of issued shares, unless and until
    Freddie Mac shall retire and cancel the same, but such shares
    shall not be regarded as outstanding while so owned.

 

    (d) Except as otherwise provided in Freddie Mac’s
    Employee Stock Purchase Plan or any other executive compensation
    or employee benefit plan or any direct stock purchase plan
    currently in effect or hereafter adopted by Freddie Mac, the
    Common Stock shall be issued, and shall be transferable on the
    books of Freddie Mac, only in whole shares, it being intended
    that, except as provided in said Plan or plans, no fractional
    interests in shares of the Common Stock shall be created or
    recognized by Freddie Mac.

 

    (e) For the purposes of this Certificate, the term
    “Freddie Mac” means the Federal Home Loan Mortgage
    Corporation and any successor thereto by operation of law or by
    reason of a merger, consolidation or combination.

 

    (f) This Certificate and the respective rights and
    obligations of Freddie Mac and the holders of Common Stock with
    respect to such Common Stock shall be construed in accordance
    with and governed by the laws of the United States, provided
    that the law of the Commonwealth of Virginia shall serve as the
    federal rule of decision in all instances except where such law
    is inconsistent with Freddie Mac’s enabling legislation,
    its public purposes or any provision of this Certificate.

 

    (g) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon Freddie Mac shall be given or served
    in writing addressed (unless and until another address shall be
    published by Freddie Mac) to the Federal Home Loan Mortgage
    Corporation, 8200 Jones Branch Drive, McLean, Virginia
    22102, Attn: Executive Vice President, General Counsel and
    Corporate Secretary. Such notice, demand or other communication
    to or upon Freddie Mac shall be deemed to have been sufficiently
    given or made only upon actual receipt of a writing by Freddie
    Mac. Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served by Freddie Mac hereunder may be given or served
    by being deposited first class, postage prepaid in a United
    States post office letter box addressed (i) to the holder
    as such holder’s name and address may appear at such time
    in the books and records of Freddie Mac or (ii) if to a
    person or entity other than a holder of record of Common Stock,
    to such person or entity at such address as appears to Freddie
    Mac to be appropriate at such time.

 

    (h) Freddie Mac, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

 

    (i) Without the affirmative vote of the holders of the
    Common Stock, Freddie Mac may amend, alter, supplement or repeal
    any provision of this Certificate to cure any ambiguity, to
    correct or supplement any provision herein which may be
    defective or inconsistent with any other provision herein, or to
    make any other provisions with respect to matters or questions
    arising under this Certificate, provided that such action shall
    not materially and adversely affect the interests of the holders
    of the Common Stock.

    

    4

 

    (ii) The affirmative vote by the holders of shares
    representing at least 66 2/3% of all of the shares of the
    Common Stock at the time outstanding and entitled to vote,
    voting together as a class, shall be necessary for authorizing,
    effecting or validating the amendment, alteration,
    supplementation or repeal of any of the provisions of this
    Certificate if such amendment, alteration, supplementation or
    repeal would materially and adversely affect the powers,
    preferences, rights, privileges, qualifications, limitations,
    restrictions, terms or conditions of the Common Stock. The
    creation and issuance of any other class or series of stock of
    Freddie Mac, whether ranking prior to, on a parity with or
    junior to the Common Stock, or any split or reverse split of the
    Common Stock (including any attendant proportionate adjustment
    to the par value thereof), shall not be deemed to constitute
    such an amendment, alteration, supplementation or repeal.

 

    (i) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF
    COMMON STOCK BY OR ON BEHALF OF A HOLDER SHALL CONSTITUTE THE
    UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL OTHERS HAVING
    BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF ALL OF THE
    TERMS AND PROVISIONS OF THIS CERTIFICATE. NO SIGNATURE OR OTHER
    FURTHER MANIFESTATION OF ASSENT TO THE TERMS AND PROVISIONS OF
    THIS CERTIFICATE SHALL BE NECESSARY FOR ITS OPERATION OR EFFECT
    AS BETWEEN FREDDIE MAC AND THE HOLDER (AND ALL SUCH OTHERS).

 

    IN WITNESS WHEREOF, I have executed this Certificate as of this
    27th day of February, 2008.

 

 

    [Seal]

 

                        

    /s/  Robert
    E. Bostrom

    Robert E. Bostrom,
    Corporate Secretary
    

    

    5exv4w2

 

    Exhibit
    4.2

 

    FEDERAL
    HOME LOAN MORTGAGE CORPORATION

 

 

    CERTIFICATE
    OF CREATION, DESIGNATION, POWERS,

    PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    of

    VARIABLE RATE, NON-CUMULATIVE PREFERRED STOCK

    (Par Value $1.00 Per Share)

 

    KNOW ALL PERSONS BY THESE PRESENTS, that I, MAUD MATER,
    Secretary of the Federal Home Loan Mortgage Corporation, a
    government-sponsored enterprise of the United States of America
    (“Freddie Mac”), do hereby certify that, pursuant to
    authority vested in the Board of Directors of Freddie Mac by
    Section 306(f) of the Federal Home Loan Mortgage
    Corporation Act, as amended (12 U.S.C. §1455(f)), said
    Board of Directors on March 1, 1996, adopted the following
    resolution, effective as of the close of business on
    April 23, 1996, on which date, pursuant to FHLMC
    Resolution 96-05,
    the Chairman and Chief Executive Officer approved the final
    terms of the public issuance and sale of the preferred stock of
    Freddie Mac designated above, which Resolution is now, and
    at all times since such date has been, in full force and effect:

 

    RESOLVED, that, the Variable Rate, Non-Cumulative Preferred
    Stock shall have the following designation, powers, preferences,
    rights, privileges, qualifications, limitations, restrictions,
    terms and conditions:

 

    1. Designation,
    Par Value, Number of Shares and Seniority

 

    The class of preferred stock of Freddie Mac created hereby (the
    “Non-Cumulative
    Preferred Stock”) shall be designated “Variable Rate,
    Non-Cumulative
    Preferred Stock,” shall have a par value of $1.00 per share
    and shall consist of 5 million shares. The Board of
    Directors shall be permitted to increase the authorized number
    of such shares at any time. The
    Non-Cumulative
    Preferred Stock shall rank prior to the Voting Common Stock of
    Freddie Mac (the “Common Stock”) to the extent
    provided in this Certificate and shall rank, both as to
    dividends and upon liquidation, on a parity with the 6.72%
    Preferred Stock issued on August 2, 1993 and the 7.90%
    Non-Cumulative Preferred Stock issued on April 27, 1992,
    (together, the “Existing Preferred Stock”).

 

    2. Dividends

 

    (a) The holders of outstanding shares of Non-Cumulative
    Preferred Stock shall be entitled to receive, ratably, when, as
    and if declared by the Board of Directors, in its sole
    discretion, out of funds legally available therefor,
    non-cumulative, cash dividends at a variable per annum rate (not
    greater than 9% per annum) equal to (i) the sum of LIBOR
    (as defined in clause (b) below) and 1.0%, divided by
    (ii) 1.377, with the resulting dividend per share being
    rounded to the nearest cent (with one-half cent being rounded
    up), without taking into account any adjustments referred to in
    clause (c) below. Dividends on the Non-Cumulative Preferred
    Stock shall accrue from April 26, 1996 and are payable
    when, as and if declared by the Board of Directors quarterly on
    March 31, June 30, September 30 and
    December 31 of each year (each, a “Dividend Payment
    Date”) commencing on June 30, 1996. If a Dividend
    Payment Date is not a “Business Day,” the related
    dividend shall be paid on the next Business Day with the same
    force and effect as though paid on the Dividend Payment Date,
    without any increase to account for the period from such
    Dividend Payment Date through the date of actual payment. For
    these purposes, “Business Day” means a day other than
    (i) a Saturday or Sunday, (ii) a day on which New York
    City banks are closed or (iii) a day on which the offices
    of Freddie Mac are closed. If declared, the initial dividend,
    which will be for the period from but not including
    April 26, 1996 through and including June 30, 1996,
    will be 4.7091% or $.43 per share and will be payable on
    July 1, 1996. Thereafter, the dividend payable to holders
    of Non-Cumulative Preferred Stock will vary from Dividend Period
    to Dividend Period. The “Dividend Period” relating to
    a Dividend Payment Date shall be the period from but not
    including the preceding Dividend Payment Date through and
    including the related Dividend Payment Date. Freddie Mac will
    calculate the dividend rate for each

 

    Dividend Period based on LIBOR determined as of two London
    Business Days (defined as any day, other than a Saturday or
    Sunday, on which banks are open for business in London) prior to
    the first day of such Dividend Period (each a
    “Determination Date”). Each dividend shall be
    calculated on the basis of the actual number of days elapsed,
    assuming a year of 360 days, and the dividend rate shall be
    applied to the $50 per share redemption value. Each such
    dividend shall be paid to the holders of record of outstanding
    shares of the
    Non-Cumulative
    Preferred Stock as they appear in the books and records of
    Freddie Mac on such record date as shall be fixed in advance by
    the Board of Directors, not to be earlier than 45 days nor
    later than 10 days preceding the applicable Dividend
    Payment Date. No dividends shall be declared or paid or set
    apart for payment on the Common Stock or any other class or
    series of stock ranking junior to or (except as hereinafter
    provided) on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends unless
    dividends have been declared and paid or set apart (or ordered
    by the Board of Directors to be set apart) for payment on the
    outstanding
    Non-Cumulative
    Preferred Stock in respect of the then-current Dividend Period;
    provided, however, that the foregoing dividend preference shall
    not be cumulative and shall not in any way create any claim or
    right in favor of the holders of
    Non-Cumulative
    Preferred Stock in the event that Freddie Mac shall not have
    declared or paid or set apart (or the Board of Directors shall
    not have ordered to be set apart) dividends on the
    Non-Cumulative Preferred Stock in respect of any prior Dividend
    Period. In the event that Freddie Mac shall not pay any one or
    more dividends or any part thereof on the
    Non-Cumulative
    Preferred Stock, the holders of the
    Non-Cumulative
    Preferred Stock shall not have any claim in respect of such
    non-payment
    so long as no dividend is paid on any junior or parity stock in
    violation of the next preceding sentence.

 

    (b) “LIBOR” means, with respect to a Dividend
    Period relating to a Dividend Payment Date (in the following
    order of priority):

 

    (i) the rate (expressed as a percentage per annum) for
    Eurodollar deposits having a three-month maturity that appears
    on Telerate Page 3750 as of 11:00 a.m. (London time)
    on the related Determination Date;

 

    (ii) if such rate does not appear on Telerate
    Page 3750 as of 11:00 a.m. (London time) on the
    related Determination Date, LIBOR shall be the arithmetic mean
    (if necessary rounded upwards to the nearest whole multiple of
    1/128%) of the rates (expressed as a percentage per annum) for
    Eurodollar deposits having a three-month maturity that appear on
    Reuters Monitor Money Rates Page LIBO (“Reuters Page
    LIBO”) as of 11:00 a.m. (London time) on such
    Determination Date;

 

    (iii) if such rate does not appear on Reuters Page LIBO as
    of 11:00 a.m. (London time) on the related Determination
    Date, Freddie Mac shall request the principal London offices of
    four leading banks in the London interbank market to provide
    such banks’ offered quotations (expressed as percentages
    per annum) to prime banks in the London interbank market for
    Eurodollar deposits having a three-month maturity as of
    11:00 a.m. (London time) on such Determination Date. If at
    least two quotations are provided, LIBOR shall be the arithmetic
    mean (if necessary rounded upwards to the nearest whole multiple
    of 1/128%) of such quotations;

 

    (iv) if fewer than two such quotations are provided as
    requested in clause (iii) above, Freddie Mac shall
    request four major New York City banks to provide such
    banks’ offered quotations (expressed as percentages per
    annum) to leading European banks for loans in Eurodollars as of
    11:00 a.m. (London time) on such Determination Date. If at
    least two such quotations are provided, LIBOR will be the
    arithmetic mean (if necessary rounded upwards to the nearest
    whole multiple of 1/128%) of such quotations; and

 

    (v) if fewer than two such quotations are provided as
    requested in clause (iv) above, LIBOR shall be LIBOR
    determined with respect to the Dividend Period immediately
    preceding such current Dividend Period.

 

    If the rate for Eurodollar deposits having a three-month
    maturity that initially appears on Telerate Page 3750 or Reuters
    Page LIBO, as the case may be, as of 11:00 a.m. (London
    time) on the related Determination Date is superseded on
    Telerate Page 3750 or Reuters Page LIBO, as the case may
    be, by a

 

    corrected rate before 12:00 noon (London time) on such
    Determination Date, such corrected rate as so substituted on the
    applicable page shall be the applicable LIBOR for such
    Determination Date.

 

    (c) If, prior to April 26, 1998, one or more
    amendments to the Internal Revenue Code of 1986, as amended (the
    “Code”), are enacted that reduce the percentage of the
    dividends-received deduction as specified in
    section 243(a)(1) of the Code or any successor provision
    (the “Dividends-Received Percentage”), certain
    adjustments may be made in respect of the dividends payable by
    the Corporation, and Post Declaration Date Dividends and
    Retroactive Dividends (as such terms are defined below) may
    become payable, as described below.

 

    The amount of each dividend payable (if declared) per share of
    Non-Cumulative Preferred Stock for dividend payments made on or
    after the effective date of such change in the Code will be
    adjusted by multiplying the amount of the dividend payable
    pursuant to clause (a) of this Section 2 (before
    adjustment) by a factor, which shall be the number determined in
    accordance with the following formula (the “DRD
    Formula”), and rounding the result to the nearest cent
    (with one-half cent rounded up):

 

    1 - .35 (1 - .70)

    1 - .35 (1 - DRP)

 

    For the purposes of the DRD Formula, “DRP” means the
    Dividends-Received Percentage (expressed as a decimal)
    applicable to the dividend in question; provided, however, that
    if the Dividends-Received Percentage applicable to the dividend
    in question is less than 50%, then the DRP will equal .50. In
    the event an adjustment to any dividend payable on the
    Non-Cumulative Preferred Stock is made pursuant to this
    Section 2(c), the resulting dividend rate may exceed 9% per
    annum. No amendment to the Code, other than a change in the
    percentage of the dividends-received deduction set forth in
    section 243(a)(1) of the Code or any successor provision,
    shall give rise to an adjustment.

 

    Notwithstanding the foregoing provisions, if, with respect to
    any such amendment, the Corporation receives either an
    unqualified opinion of nationally recognized independent tax
    counsel selected by the Corporation or a private letter ruling
    or similar form of assurance from the Internal Revenue Service
    (the “IRS”) to the effect that such an amendment does
    not apply to a dividend payable on the Non-Cumulative Preferred
    Stock, then such amendment shall not result in the adjustment
    provided for pursuant to the DRD Formula with respect to such
    dividend. The opinion referenced in the previous sentence shall
    be based upon the legislation amending or establishing the DRP
    or upon a published pronouncement of the IRS addressing such
    legislation. Unless the context otherwise requires, references
    to dividends herein shall mean dividends as adjusted by the DRD
    Formula. The Corporation’s calculation of the dividends
    payable as so adjusted shall be final and not subject to review.

 

    Notwithstanding the foregoing, if any such amendment to the Code
    is enacted after the dividend payable on a Dividend Payment Date
    has been declared but before such dividend is paid, the amount
    of the dividend payable on such Dividend Payment Date shall not
    be increased. Instead, additional dividends (the “Post
    Declaration Date Dividends”), equal to the excess, if any,
    of (x) the product of the dividend paid by the Corporation
    on such Dividend Payment Date and the DRD Formula (where the DRP
    used in the DRD Formula would be equal to the greater of the
    Dividends-Received Percentage applicable to the dividend in
    question and .50) over (y) the dividend paid by the
    Corporation on such Dividend Payment Date, shall be payable (if
    declared) to holders on the record date applicable to the next
    succeeding Dividend Payment Date in addition to any other
    amounts payable on such date.

 

    If any such amendment to the Code is enacted and the reduction
    in the Dividends-Received Percentage retroactively applies to a
    Dividend Payment Date as to which the Corporation previously
    paid dividends on the Non-Cumulative Preferred Stock (each, an
    “Affected Dividend Payment Date”), the Corporation
    shall pay (if declared) additional dividends (the
    “Retroactive Dividends”) to holders on the record date
    applicable to the next succeeding Dividend Payment Date (or, if
    such amendment is enacted after the dividend payable on such
    Dividend Payment Date has been declared, to Holders on the
    record date applicable to the second succeeding Dividend Payment
    Date following the date of enactment) in an amount equal to the
    excess of

 

    (x) the product of the dividend paid by the Corporation on
    each Affected Dividend Payment Date and the DRD Formula (where
    the DRP used in the DRD Formula would be equal to the greater of
    the Dividends-Received Percentage and .50 applied to each
    Affected Dividend Payment Date) over (y) the sum of the
    dividend paid by the Corporation on each Affected Dividend
    Payment Date. The Corporation shall make only one payment of
    Retroactive Dividends for any such amendment. Notwithstanding
    the foregoing provisions, if, with respect to any such
    amendment, the Corporation receives either an unqualified
    opinion of nationally recognized independent tax counsel
    selected by the Corporation or a private letter ruling or
    similar form of assurance from the IRS to the effect that such
    amendment does not apply to a dividend payable on an Affected
    Dividend Payment Date for the Non-Cumulative Preferred Stock,
    then such amendment will not result in the payment of
    Retroactive Dividends with respect to such Affected Dividend
    Payment Date. The opinion referenced in the previous sentence
    must be based upon the legislation amending or establishing the
    DRP or upon a published pronouncement of the IRS addressing such
    legislation.

 

    In the event that the amount of dividends payable per share of
    the Non-Cumulative Preferred Stock is adjusted pursuant to the
    DRD Formula and/or Post Declaration Date Dividends or
    Retroactive Dividends are to be paid, the Corporation will give
    notice of each such adjustment and, if applicable, any Post
    Declaration Date Dividends and Retroactive Dividends to be given
    as soon as practicable to the holders of Non-Cumulative
    Preferred Stock.

 

    (d) Notwithstanding any other provision of this
    Certificate, the Board of Directors, in its discretion, may
    choose to pay dividends on the
    Non-Cumulative
    Preferred Stock without the payment of any dividends on the
    Common Stock or any other class or series of stock from time to
    time outstanding ranking junior to the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends.

 

    (e) No dividend shall be declared or paid or set apart for
    payment on any shares of the
    Non-Cumulative
    Preferred Stock if at the same time any arrears or default
    exists in the payment of dividends on any outstanding class or
    series of stock of Freddie Mac ranking prior to or (except as
    provided herein) on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends. If and
    whenever dividends, having been declared, shall not have been
    paid in full, as aforesaid, on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any other class or series
    of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock with respect to the payment of dividends, all
    such dividends that have been declared on shares of the
    Non-Cumulative
    Preferred Stock and on the shares of any such other class or
    series shall be paid pro rata, so that the respective amounts of
    dividends paid per share on the
    Non-Cumulative
    Preferred Stock and on such other class or series shall in all
    cases bear to each other the same ratio that the respective
    amounts of dividends declared but unpaid per share on the shares
    of the
    Non-Cumulative
    Preferred Stock (including any adjustments due to changes in the
    Dividends-Received
    Percentage) and on the shares of such other class or series bear
    to each other.

 

    (f) Holders of shares of the Non-Cumulative Preferred Stock
    shall not be entitled to any dividends, in cash or in property,
    other than as herein provided and shall not be entitled to
    interest, or any sum in lieu of interest, on or in respect of
    any dividend payment.

 

    3. Optional
    Redemption

 

    (a) The Non-Cumulative Preferred Stock shall not be
    redeemable prior to June 30, 2001. Subject to this
    limitation and to any further limitations which may be imposed
    by law, Freddie Mac may redeem the
    Non-Cumulative
    Preferred Stock, in whole or in part, at any time or from time
    to time, out of funds legally available therefor, at the
    redemption price of $50.00 per share plus an amount, determined
    in accordance with Section 2 above, equal to the amount of
    the dividend, if any, otherwise payable for the then-current
    Dividend Period accrued through and including the date of such
    redemption. If less than all of the outstanding shares of the
    Non-Cumulative
    Preferred Stock are to be redeemed, Freddie Mac shall select
    shares to be redeemed from the outstanding shares not previously
    called for redemption by lot or pro rata (as nearly as possible)
    or by any other method which Freddie Mac in its sole discretion
    deems equitable.

 

    (b) In the event Freddie Mac shall redeem any or all of the
    Non-Cumulative Preferred Stock as aforesaid, notice of such
    redemption shall be given by Freddie Mac by first class mail,
    postage prepaid, mailed neither less than 30 nor more than
    60 days prior to the redemption date, to each holder of
    record of the shares of the
    Non-Cumulative
    Preferred Stock being redeemed, at such holder’s address as
    the same appears in the books and records of Freddie Mac. Each
    such notice shall state the number of shares being redeemed, the
    redemption price, the redemption date and the place at which
    such holder’s certificate(s) representing shares of the
    Non-Cumulative
    Preferred Stock must be presented for cancellation or exchanges,
    as the case may be, upon such redemption. Failure to give
    notice, or any defect in the notice, to any holder of the
    Non-Cumulative Preferred Stock shall not affect the validity of
    the proceedings for the redemption of shares of any other holder
    of
    Non-Cumulative
    Preferred Stock being redeemed.

 

    (c) Notice having been mailed as aforesaid, from and after
    the redemption date specified therein and upon payment of the
    consideration set forth in Section 3(a) above, said shares
    of the
    Non-Cumulative
    Preferred Stock shall no longer be deemed to be outstanding, and
    all rights of the holders thereof as holders of the
    Non-Cumulative
    Preferred Stock shall cease, with respect to shares so redeemed.

 

    (d) Any shares of the Non-Cumulative Preferred Stock which
    shall have been redeemed shall, after such redemption, no longer
    have the status of authorized, issued or outstanding shares.

 

    4. No
    Voting Rights

 

    Except as set forth in Section 9(h) below, the shares of
    the
    Non-Cumulative
    Preferred Stock shall not have any voting powers, either general
    or special.

 

    5. No
    Conversion or Exchange Rights

 

    The holders of shares of the
    Non-Cumulative
    Preferred Stock shall not have any right to convert such shares
    into or exchange such shares for any other class or series of
    stock or obligations of Freddie Mac.

 

    6. No
    Preemptive Rights

 

    No holder of the
    Non-Cumulative
    Preferred Stock shall as such holder have any preemptive right
    to purchase or subscribe for any other shares, rights, options
    or other securities of any class of Freddie Mac which at any
    time may be sold or offered for sale by Freddie Mac.

 

    7. Liquidation
    Rights and Preference

 

    (a) Except as otherwise set forth herein, upon the
    voluntary or involuntary dissolution, liquidation or winding up
    of Freddie Mac, after payment of or provision for the
    liabilities of Freddie Mac and the expenses of such dissolution,
    liquidation or winding up, the holders of the outstanding shares
    of the
    Non-Cumulative
    Preferred Stock shall be entitled to receive out of the assets
    of Freddie Mac available for distribution to stockholders,
    before any payment or distribution shall be made on the Common
    Stock or any other class or series of stock of Freddie Mac
    ranking junior to the
    Non-Cumulative
    Preferred Stock upon liquidation, the amount of $50.00 per share
    plus an amount, determined in accordance with Section 2
    above, equal to the dividend, if any, otherwise payable for the
    then-current
    Dividend Period accrued through and including the date of
    payment in respect of such dissolution, liquidation or winding
    up, and the holders of the outstanding shares of any class or
    series of stock of Freddie Mac ranking on a parity with the
    Non-Cumulative
    Preferred Stock upon liquidation shall be entitled to receive
    out of the assets of Freddie Mac available for distribution to
    stockholders, before any such payment or distribution shall be
    made on the Common Stock or any other class or series of stock
    of Freddie Mac ranking junior to the
    Non-Cumulative
    Preferred Stock and to such parity stock upon liquidation, any
    corresponding preferential amount to which the holders of such
    parity stock may, by the terms thereof, be entitled; provided,
    however, that if the assets of Freddie Mac available for
    distribution to stockholders shall be insufficient for the
    payment of the full amounts to which the holders of the
    outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of the outstanding shares of
    such parity stock shall be entitled to receive upon such
    dissolution, liquidation or winding up of Freddie Mac as
    aforesaid, then, subject to paragraph (b) of this
    Section 7, all

 

    of the assets of Freddie Mac available for distribution to
    stockholders shall be distributed to the holders of outstanding
    shares of the
    Non-Cumulative
    Preferred Stock and to the holders of outstanding shares of such
    parity stock pro rata, so that the amounts so distributed to
    holders of the
    Non-Cumulative
    Preferred Stock and to holders of such classes or series of such
    parity stock, respectively, shall bear to each other the same
    ratio that the respective distributive amounts to which they are
    so entitled (including any adjustment due to changes in the
    Dividends-Received Percentage) bear to each other. After the
    payment of the aforesaid amounts to which they are entitled, the
    holders of outstanding shares of the
    Non-Cumulative
    Preferred Stock and the holders of outstanding shares of any
    such parity stock shall not be entitled to any further
    participation in any distribution of assets of Freddie Mac.

 

    (b) Notwithstanding the foregoing, upon the dissolution,
    liquidation or winding up of Freddie Mac, the holders of shares
    of the
    Non-Cumulative
    Preferred Stock then outstanding shall not be entitled to be
    paid any amounts to which such holders are entitled pursuant to
    paragraph (a) of this Section 7 unless and until the
    holders of any classes or series of stock of Freddie Mac ranking
    prior upon liquidation to the Non-Cumulative Preferred Stock
    shall have been paid all amounts to which such classes or series
    are entitled pursuant to their respective terms.

 

    (c) Neither the sale of all or substantially all of the
    property or business of Freddie Mac, nor the merger,
    consolidation or combination of Freddie Mac into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 7.

 

    8. Additional
    Classes or Series of Stock

 

    The Board of Directors shall have the right at any time in the
    future to authorize, create and issue, by Resolution or
    resolutions, one or more additional classes or series of stock
    of Freddie Mac, and to determine and fix the distinguishing
    characteristics and the relative rights, preferences, privileges
    and other terms of the shares thereof. Any such class or series
    of stock may rank prior to or on a parity with or junior to the
    Non-Cumulative Preferred Stock as to dividends or upon
    liquidation or otherwise.

 

    9. Miscellaneous

 

    (a) Any stock of any class or series of Freddie Mac shall
    be deemed to rank:

 

    (i) prior to the shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    the holders of such class or series shall be entitled to the
    receipt of dividends or of amounts distributable upon
    dissolution, liquidation or winding up of Freddie Mac, as the
    case may be, in preference or priority to the holders of shares
    of the
    Non-Cumulative
    Preferred Stock;

 

    (ii) on a parity with shares of the Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation,
    whether or not the dividend rates or amounts, dividend payment
    dates or redemption of liquidation prices per share, if any, be
    different from those of the
    Non-Cumulative
    Preferred Stock, if the holders of such class or series shall be
    entitled to the receipt of dividends or of amounts distributable
    upon dissolution, liquidation or winding up of Freddie Mac, as
    the case may be, in proportion to their respective dividend
    rates or amounts or liquidation prices, without preference or
    priority, one over the other, as between the holders of such
    class or series and the holders of shares of the
    Non-Cumulative
    Preferred Stock; and

 

    (iii) junior to shares of the
    Non-Cumulative
    Preferred Stock, either as to dividends or upon liquidation, if
    such class or series shall be Common Stock, or if the holders of
    shares of the
    Non-Cumulative
    Preferred Stock shall be entitled to receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of such class or series.

 

    (b) Freddie Mac and any agent of Freddie Mac may deem and
    treat the holder of a share or shares of
    Non-Cumulative
    Preferred Stock, as shown in Freddie Mac’s books and
    records, as the absolute owner of such share or shares of
    Non-Cumulative
    Preferred Stock for the purpose of receiving payment of dividends

 

    in respect of such share or shares of
    Non-Cumulative
    Preferred Stock and for all other purposes whatsoever, and
    neither Freddie Mac nor any agent of Freddie Mac shall be
    affected by any notice to the contrary. All payments made to or
    upon the order of any such person shall be valid and, to the
    extent of the sum or sums so paid, effectual to satisfy and
    discharge liabilities for moneys payable by Freddie Mac on or
    with respect to any such share or shares of
    Non-Cumulative
    Preferred Stock.

 

    (c) The shares of the
    Non-Cumulative
    Preferred Stock, when duly issued, shall be fully paid and
    non-assessable.

 

    (d) The
    Non-Cumulative
    Preferred Stock shall be issued, and shall be transferable on
    the books of Freddie Mac, only in whole shares, it being
    intended that no fractional interests in shares of
    Non-Cumulative
    Preferred Stock shall be created or recognized by Freddie Mac.

 

    (e) For purposes of this Certificate, the term
    “Freddie Mac” means the Federal Home Loan Mortgage
    Corporation and any successor thereto by operation of law or by
    reason of a merger, consolidation or combination.

 

    (f) This Certificate and the respective rights and
    obligations of Freddie Mac and the holders of the
    Non-Cumulative
    Preferred Stock with respect to such
    Non-Cumulative
    Preferred Stock shall be construed in accordance with and
    governed by the laws of the United States, provided that the law
    of the Commonwealth of Virginia shall serve as the federal rule
    of decision in all instances except where such law is
    inconsistent with Freddie Mac’s enabling legislation, its
    public purposes or any provision of this Certificate.

 

    (g) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon Freddie Mac shall be given or served
    in writing addressed (unless and until another address shall be
    published by Freddie Mac) to the Federal Home Loan Mortgage
    Corporation, 8200 Jones Branch Drive, McLean, Virginia 22102,
    Attn: Senior Vice
    President-General
    Counsel and Secretary. Such notice, demand or other
    communication to or upon Freddie Mac shall be deemed to have
    been sufficiently given or made only upon actual receipt of a
    writing by Freddie Mac. Any notice, demand or other
    communication which by any provision of this Certificate is
    required or permitted to be given or served by Freddie Mac
    hereunder may be given or served by being deposited first class,
    postage prepaid, in the United States mail addressed (i) to
    the holder as such holder’s name and address may appear at
    such time in the books and records of Freddie Mac or
    (ii) if to a person or entity other than a holder of record
    of the Non-Cumulative Preferred Stock, to such person or entity
    at such address as appears to Freddie Mac to be appropriate at
    such time.

 

    (h) Freddie Mac, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

 

    (i) Without the consent of the holders of the
    Non-Cumulative Preferred Stock, Freddie Mac may amend, alter,
    supplement or repeal any provision of this Certificate to cure
    any ambiguity, to correct or supplement any provision herein
    which may be defective or inconsistent with any other provision
    herein, or to make any other provisions with respect to matters
    or questions arising under this Certificate, provided that such
    action shall not materially and adversely affect the interests
    of the holders of the Non-Cumulative Preferred Stock.

 

    (ii) The consent of the holders of at least
    662/3%
    of all of the shares of the Non-Cumulative Preferred Stock at
    the time outstanding, given in person or by proxy, either in
    writing or by a vote at a meeting called for the purpose at
    which the holders of shares of the
    Non-Cumulative
    Preferred Stock shall vote together as a class, shall be
    necessary for authorizing, effecting or validating the
    amendment, alteration, supplementation or repeal of the
    provisions of this Certificate if such amendment, alteration,
    supplementation or repeal would materially and adversely affect
    the powers, preferences, rights, privileges, qualifications,
    limitations, restrictions, terms or conditions of the
    Non-Cumulative Preferred Stock. The creation and issuance of any
    other class or series of stock, or the issuance of additional
    shares of any existing class or series of stock of Freddie Mac
    (including the
    Non-Cumulative
    Preferred

 

    Stock), whether ranking prior to, on a parity with or junior to
    the Non-Cumulative Preferred Stock, shall not be deemed to
    constitute such an amendment, alteration, supplementation or
    repeal.

 

    (iii) Holders of the Non-Cumulative Preferred Stock shall
    be entitled to one vote per share on matters on which their
    consent is required pursuant to subparagraph (ii) of this
    paragraph (h). In connection with any meeting of such
    holders, the Board of Directors shall fix a record date, neither
    earlier than 60 days nor later than 10 days prior to
    the date of such meeting, and holders of record of shares of the
    Non-Cumulative
    Preferred Stock on such record date shall be entitled to notice
    of and to vote at any such meeting and any adjournment. The
    Board of Directors, or such person or persons as it may
    designate, may establish reasonable rules and procedures as to
    the solicitation of the consent of holders of the
    Non-Cumulative
    Preferred Stock at any such meeting or otherwise, which rules
    and procedures shall conform to the requirements of any national
    securities exchange on which the
    Non-Cumulative
    Preferred Stock may be listed at such time.

 

    (i) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE
    NON-CUMULATIVE PREFERRED STOCK BY OR ON BEHALF OF A HOLDER SHALL
    CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL
    OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF
    ALL OF THE TERMS AND PROVISIONS OF THIS CERTIFICATE. NO
    SIGNATURE OR OTHER FURTHER MANIFESTATION OF ASSENT TO THE TERMS
    AND PROVISIONS OF THIS CERTIFICATE SHALL BE NECESSARY FOR ITS
    OPERATION OR EFFECT AS BETWEEN FREDDIE MAC AND THE HOLDER (AND
    ALL SUCH OTHERS).

 

    IN WITNESS WHEREOF, I have hereunto set my hand and the seal of
    Freddie Mac this 23rd day of April 1996.

 

 

    [Seal]
    

    /s/  Maud
    Mater

    Maud Mater, Secretary

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